Acquisitions and Dispositions (Table)

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of recognized identified assets acquired and liabilities assumed

Assets and liabilities recognized in the National General acquisition (1)
($ in millions)	January 4, 2021
Assets
Investments	$	4,962
Cash	400
Premiums and other receivables, net	1,539
Deferred acquisition costs (value of business acquired)	317
Reinsurance recoverables, net	1,212
Intangible assets	1,199
Other assets	734
Goodwill (2)	1,038
Total assets	11,401
Liabilities
Reserve for property and casualty insurance claims and claims expense	2,765
Reserve for future policy benefits	186
Unearned premiums	2,245
Reinsurance payable	363
Debt (3)	593
Deferred tax liabilities	162
Other liabilities	776
Total liabilities	$	7,090

(1)The amounts reflect allocation of assets acquired and liabilities assumed.

(2)$675 million, $20 million and $343 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. As of March 31, 2022, the Company had principal balance remaining of $350 million 6.750% Senior Notes due 2024, with a fair value adjustment of $40 million.

Schedule of disposal groups, including discontinued operations

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

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