Reinsurance and indemnification

9 Months Ended

Sep. 30, 2021


Note 10			Reinsurance and indemnification


Effects of reinsurance ceded and indemnification programs on property and casualty premiums earned and accident and health insurance premiums and contract charges
($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Property and casualty insurance premiums earned (1)	$	(442)	$	(277)	$	(1,488)	$	(845)
Accident and health insurance premiums and contract charges	(17)		(4)		(65)		(10)

(1)Includes $631 million of ceded premiums related to the acquisition of National General for the nine months ended September 30, 2021.


Effects of reinsurance ceded and indemnification programs on property and casualty insurance claims and claims expense and accident and health insurance policy benefits
($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Property and casualty insurance claims and claims expense (1)	$	(1,458)	$	128	$	(3,209)	$	(213)
Accident and health insurance policy benefits	(13)		(5)		(68)		(13)

(1)Includes $1.40 billion, $531 million, $514 million and $185 million of ceded losses related to the Nationwide Catastrophe Reinsurance Program, the acquisition of National General, the Michigan Catastrophic Claims Association and National Flood Insurance Program, respectively, for the nine months ended September 30, 2021, and $195 million of ceded losses related to the Michigan Catastrophic Claims Association for the nine months ended September 30, 2020.

Reinsurance and indemnification recoverables


Reinsurance and indemnification recoverables, net
($ in millions)	September 30, 2021		December 31, 2020
Property and casualty
Paid and due from reinsurers and indemnitors	$	293	$	101
Unpaid losses estimated (including IBNR)	10,035		7,033
Total property and casualty	$	10,328	$	7,134

Allstate Health and Benefits	114		81
Total	$	10,442	$	7,215


Rollforward of credit loss allowance for reinsurance recoverables
($ in millions)	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Property and casualty (1) (2)
Beginning balance	$	(60)	$	(59)	$	(59)	$	(60)
(Increase) decrease in the provision for credit losses	(6)		—		(7)		1


Ending balance	$	(66)	$	(59)	$	(66)	$	(59)

Allstate Health and Benefits
Beginning balance	$	(1)	$	(1)	$	(1)	$	(1)

Increase in the provision for credit losses	—		—		—		—
Write-offs	—		—		—		—

Ending balance	$	(1)	$	(1)	$	(1)	$	(1)

(1)Primarily related to Run-off Property-Liability reinsurance ceded.

(2)Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation.