Acquisition and Disposition (Table)

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Schedule of recognized identified assets acquired and liabilities assumed

Assets and liabilities recognized in acquisition (1)
($ in millions)	January 4, 2021
Assets
Investments	$	4,957
Cash	402
Premiums and other receivables, net	1,545
Deferred acquisition costs (value of business acquired)	317
Reinsurance recoverables, net	1,219
Intangible assets	1,199
Other assets	734
Goodwill (2)	980
Total assets	11,353
Liabilities
Reserve for property and casualty insurance claims and claims expense	2,774
Reserve for future policy benefits	189
Unearned premiums	2,245
Reinsurance payable	364
Debt (3)	592
Deferred tax liabilities	177
Other liabilities	701
Total liabilities	$	7,042

(1)The amounts reflect preliminary allocation of assets acquired and liabilities assumed. The acquisition date fair values of assets and liabilities, including insurance reserves and intangible assets, as well as the related estimated useful lives of intangibles, are preliminary estimates and are subject to revisions within one year of acquisition date.

(2)$616 million, $29 million and $335 million of goodwill were allocated to the Allstate Protection, Protection Services and Allstate Health and Benefits segments, respectively, and is non-deductible for income tax purposes. Goodwill is primarily attributable to expected synergies and future growth opportunities.

(3)Subsequent to the acquisition, the Company repaid $100 million of 7.625% Subordinated Notes and $72 million of Subordinated Debentures on February 3, 2021 and March 15, 2021, respectively. The Company had principal balance remaining of $417 million 6.750% Senior Notes due 2024 as of March 31, 2021, including a purchase accounting fair value adjustment of $67 million.

Schedule of indefinite-lived intangible assets

Intangible assets by type
($ in millions)	January 4, 2021
Distribution and customer relationships	$	795
Trade names	102
Licenses	97
Technology and other	205
Total	$	1,199

Schedule of finite-lived intangible assets, future amortization expense

Estimated amortization expense of National General intangible assets for the next five years and thereafter
($ in millions)
2022	$	218
2023	185
2024	135
2025	103
2026	70
Thereafter	140
Total amortization	$	851

Schedule of disposal groups, including discontinued operations

Financial results from discontinued operations
	Three months ended March 31,
($ in millions)	2021		2020
Revenues
Life premiums and contract charges	$	340	$	335
Net investment income	439		175
Realized capital gains (losses)	79		(300)
Total revenues	858		210
Costs and expenses
Life contract benefits	410		360
Interest credited to contractholder funds	85		123
Amortization of DAC	36		36
Operating costs and expenses	55		61
Restructuring and related charges	19		1
Total costs and expenses	605		581
Amortization of deferred gain on reinsurance	2		1
Income (loss) from discontinued operations before income tax expense	255		(370)
Income tax expense (benefit)	50		(82)
Income (loss) from discontinued operations, net of tax	205		(288)
Loss on disposition of operations	(4,418)		—
Income tax benefit	(420)		—
Loss on disposition, net of tax	(3,998)		—
Loss from discontinued operations, net of tax	$	(3,793)	$	(288)

    

Major classes of assets and liabilities to be transferred in transactions
($ in millions)	March 31, 2021		December 31, 2020
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $23,511 and $21,417)	$	25,073	$	23,789
Equity securities, at fair value (cost $1,191 and $1,113)	1,643		1,542
Mortgage loans, net	3,062		3,329
Limited partnership interests	1,942		3,046
Short-term, at fair value (amortized cost $1,652 and $993)	1,652		993
Other, net	936		1,998
Total investments	34,308		34,697
Cash	89		66
Deferred policy acquisitions costs	1,039		925
Reinsurance recoverables, net	1,982		2,005
Accrued investment income	248		229
Other assets	236		865
Separate accounts	3,339		3,344
Assets held for sale	41,241		42,131
Less: loss accrual	4,412		—
Total assets held for sale	$	36,829	$	42,131
Liabilities
Reserve for future policy benefits	$	11,581	$	11,740
Contractholder funds	16,112		16,356
Deferred income taxes	857		973
Other liabilities and accrued expenses	1,494		912
Separate accounts	3,339		3,344
Total liabilities held for sale	$	33,383	$	33,325

Cash flows from discontinued operations
	Three months ended March 31,
($ in millions)	2021		2020
Net cash provided by operating activities from discontinued operations	$	64	$	111
Net cash provided by investing activities from discontinued operations	88		85