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Reserve for Future Policy Benefits and Contractholder Funds (Tables)
 12 Months Ended
Dec. 31, 2021
Reserve for Future Policy Benefits and Contractholder Funds  
Reserve for future policy benefits
Reserve for future policy benefits
As of December 31,
($ in millions)20212020
Traditional life insurance and other$313 $299 
Accident and health insurance960 729 
Reserve for future policy benefits $1,273 $1,028 
Key assumptions generally used in calculating the reserve for life-contingent contract benefits
Key assumptions generally used in calculating the reserve for future policy benefits
ProductMortalityInterest rateEstimation method
Traditional life insurance
Actual company experience plus loading
Interest rate assumptions range from 1.8% to 7.0%
Net level premium reserve method using the Company’s withdrawal experience rates; includes reserves for unpaid claims
Accident and health insuranceActual company experience plus loading
Interest rate assumptions range from 2.8% to 7.0%
Unearned premium; additional contract reserves for mortality risk and unpaid claims
Short-duration insurance contracts, claims development The information about incurred and paid claims development for the 2017 to 2021 years, and the average annual percentage payout of incurred claims by age as of December 31, 2021, is presented as required supplementary information.
Auto insurance – liability coverage
($ in millions, except number of reported claims)
Incurred claims and allocated claim adjustment expenses, net of recoverables
IBNR reserves plus expected development on reported claimsCumulative number of reported claims
For the years ended December 31,Prior year reserve reestimatesAs of December 31, 2021
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20172018201920202021
2017$9,424 $9,341 $9,286 $9,332 $9,392 $60 $581 2,519,909 
2018— 9,817 9,786 9,825 9,862 37 1,140 2,499,583 
2019— — 10,557 10,503 10,750 247 2,080 2,632,610 
2020— — — 8,773 8,770 (3)2,901 1,891,726 
2021— — — — 10,489 6,860 2,150,167 
Total$49,263 $341 
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2017 accident years
(51)
Prior year reserve reestimates for ULAE29 
Other(18)
Total prior year reserve reestimates$301 
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20172018201920202021
2017$3,554 $6,058 $7,386 $8,241 $8,811 
2018— 3,672 6,417 7,801 8,722 
2019— — 3,985 7,096 8,670 
2020— — — 3,143 5,869 
2021— — — — 3,629 
Total$35,701 
All outstanding liabilities before 2017, net of recoverables
1,393 
Liabilities for claims and claim adjustment expenses, net of recoverables$14,955 
Auto insurance – physical damage coverage
($ in millions, except number of reported claims)Incurred claims and allocated claim adjustment expenses, net of recoverablesIBNR reserves plus expected development on reported claimsCumulative number of reported claims
For the years ended December 31,Prior year reserve reestimatesAs of December 31, 2021
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20172018201920202021
2017$5,738 $5,627 $5,612 $5,610 $5,613 $3 $4 4,634,171 
2018— 5,788 5,704 5,659 5,652 (7)5 4,686,395 
2019— — 6,269 6,188 6,150 (38)(2)4,860,355 
2020— — — 5,508 5,419 (89)(8)4,008,243 
2021— — — — 7,301 429 4,407,369 
Total$30,135 $(131)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2017 accident years
(5)
Prior year reserve reestimates for ULAE(14)
Other(2)
Total prior year reserve reestimates$(152)
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20172018201920202021
2017$5,398 $5,625 $5,614 $5,609 $5,609 
2018— 5,475 5,693 5,650 5,647 
2019— — 5,959 6,158 6,152 
2020— — — 5,140 5,427 
2021— — — — 6,872 
Total$29,707 
All outstanding liabilities before 2017, net of recoverables
7 
Liabilities for claims and claim adjustment expenses, net of recoverables$435 
Homeowners insurance
($ in millions, except number of reported claims)Incurred claims and allocated claim adjustment expenses, net of recoverablesIBNR reserves plus expected development on reported claimsCumulative number of reported claims
For the years ended December 31,Prior year reserve reestimatesAs of December 31, 2021
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20172018201920202021
2017$4,929 $5,036 $5,037 $4,805 $4,816 $11 $60 977,319 
2018— 5,155 5,262 4,958 4,829 (129)82 898,425 
2019— — 4,864 4,924 4,931 7 153 868,577 
2020— — — 5,792 5,839 47 280 982,690 
2021— — — — 6,435 1,884 908,890 
Total$26,850 $(64)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2017 accident years
(13)
Prior year reserve reestimates for ULAE(70)
Other(6)
Total prior year reserve reestimates$(153)
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20172018201920202021
2017$3,521 $4,634 $4,835 $4,734 $4,756 
2018— 3,775 4,883 4,759 4,747 
2019— — 3,535 4,587 4,778 
2020— — — 4,266 5,559 
2021— — — — 4,551 
Total$24,391 
All outstanding liabilities before 2017, net of recoverables
115 
Liabilities for claims and claim adjustment expenses, net of recoverables$2,574 
The information about incurred and paid claims development for the 2017 to 2021 years, as of December 31, 2021, is presented as required supplementary information.
Group and individual accident and health
($ in millions, except number of reported claims)
Incurred claims and allocated claim adjustment expenses, net of recoverables
IBNR reserves plus expected development on reported claimsCumulative number of reported claims
For the years ended December 31,As of December 31, 2021
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20172018201920202021
2017$211 $186 $183 $183 $183 $— 302,100 
2018— 235 205 203 203 — 269,095 
2019— — 257 239 242 — 306,998 
2020— — — 297 293 9 410,031 
2021— — — — 424 152 465,525 
Total$1,345 
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20172018201920202021
2017$105 $178 $182 $183 $183 
2018— 126 201 203 203 
2019— — 158 234 242 
2020— — — 184 284 
2021— — — — 272 
Total$1,184 
All outstanding liabilities before 2017, net of recoverables— 
Liabilities for claims and claim adjustment expenses, net of recoverables$161 
Reconciliation of the net incurred claims and claims expense development
Reconciliation of the net incurred and paid claims development tables above to the reserve for property and casualty insurance claims and claims expense
($ in millions)As of December 31, 2021
Net outstanding liabilities
Allstate Protection
Auto insurance - liability coverage$14,955 
Auto insurance - physical damage coverage435 
Homeowners insurance2,574 
Other personal lines1,316 
Commercial lines1,316 
Protection Services
33 
Run-off Property-Liability (1)
1,342 
ULAE1,430 
Other (2)
180 
Net reserve for property and casualty insurance claims and claims expense23,581 
Recoverables
Allstate Protection
Auto insurance - liability coverage7,247 
Auto insurance - physical damage coverage81 
Homeowners insurance1,023 
Other personal lines173 
Commercial lines256 
Protection Services
9 
Run-off Property-Liability494 
ULAE196 
Total recoverables9,479 
Gross reserve for property and casualty insurance claims and claims expense$33,060 
(1)Run-off Property-Liability includes business in run-off with most of the claims related to accident years more than 30 years ago. IBNR reserves represent $733 million of the total reserves as of December 31, 2021.
(2)Includes amounts primarily related to the acquisition of SafeAuto and the unamortized fair value adjustment related to the acquisition of National General.
Reconciliation of the net incurred and paid claims development tables above to the reserve for future policy benefits
($ in millions)As of December 31, 2021
Net outstanding liabilities
Group and individual accident and health short-duration contracts$161 
Other accident and health short-duration contracts28 
Long duration accident and health insurance617 
Long duration traditional life insurance and other313 
Net reserve for future policy benefits1,119 
Recoverables
Group and individual accident and health short-duration contracts38 
Other accident and health short-duration contracts— 
Insurance lines other than short-duration116 
Gross reserve for future policy benefits$1,273 
Average annual percentage payout of incurred claims by age, net of reinsurance
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2021
1 year2 years3 years4 years5 years
Auto insurance – liability coverage
38.8 %28.1 %13.2 %8.4 %5.1 %
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2021
1 year2 years3 years4 years5 years
Auto insurance – physical damage coverage
96.2 %3.9 %(0.3)%(0.1)%— %
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2021
1 year2 years3 years4 years5 years
Homeowners insurance73.7 %20.7 %2.8 %0.8 %0.7 %
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2021
1 year2 years3 years4 years5 years
Group and individual accident and health62.6 %35.1 %1.9 %0.4 %— %
Contractholder funds activity
Contractholder funds activity
For the years ended December 31,
($ in millions)202120202019
Balance, beginning of year$857 $915 $898 
Deposits118 121 126 
Interest credited34 33 34 
Benefits(41)(34)(11)
Surrenders and partial withdrawals(23)(61)(21)
Contract charges(107)(123)(114)
Other adjustments70 6 3 
Balance, end of year$908 $857 $915