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General (Tables)
 6 Months Ended
Jun. 30, 2023
General [Abstract]  
Schedule of impact of adoption
After-tax cumulative effect of change in accounting principle on transition date
($ in millions)January 1, 2021
Decrease in retained income$21 
Decrease in accumulated other comprehensive income (“AOCI”)277 
Total decrease in equity$298 
Condensed Consolidated Statements of Operations
As
reported		Impact of changeAs
adjusted
($ in millions, except per share data)Three months ended June 30, 2022
Revenues
Accident and health insurance premiums and contract charges$466 $(1)$465 
Total revenues12,220 (1)12,219 
Costs and expenses
Accident, health and other policy benefits269 (4)265 
Amortization of deferred policy acquisition costs1,619 (1)1,618 
Total costs and expenses13,535 (5)13,530 
Loss from operations before income tax expense(1,315)4 (1,311)
Income tax benefit(291)2 (289)
Net loss(1,024)2 (1,022)
Net loss attributable to Allstate(1,015)2 (1,013)
Net loss applicable to common shareholders$(1,042)$2 $(1,040)
Earnings per common share:
Net loss applicable to common shareholders per common share - Basic$(3.81)$0.01 $(3.80)
Net loss applicable to common shareholders per common share - Diluted$(3.81)$0.01 $(3.80)
Six months ended June 30, 2022
Revenues
Accident and health insurance premiums and contract charges$935 $(2)$933 
Total revenues24,557 (2)24,555 
Costs and expenses
Accident, health and other policy benefits538 (5)533 
Amortization of deferred policy acquisition costs3,231 (5)3,226 
Total costs and expenses25,075 (10)25,065 
Loss from operations before income tax expense(518)8 (510)
Income tax benefit(140)2 (138)
Net loss(378)6 (372)
Net loss attributable to Allstate(359)6 (353)
Net loss applicable to common shareholders$(412)$6 $(406)
Earnings per common share:
Net loss applicable to common shareholders per common share - Basic$(1.49)$0.02 $(1.47)
Net loss applicable to common shareholders per common share - Diluted$(1.49)$0.02 $(1.47)
Condensed Consolidated Statements of Comprehensive Income (unaudited)
As reportedImpact of changeAs adjusted
($ in millions)Three months ended June 30, 2022
Net loss$(1,024)$2 $(1,022)
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses(1,143)(1)(1,144)
Discount rate for reserve for future policy benefits
— 85 85 
Other comprehensive income (loss), after-tax(1,205)84 (1,121)
Comprehensive loss(2,229)86 (2,143)
Comprehensive loss attributable to Allstate$(2,212)$86 $(2,126)
Six months ended June 30, 2022
Net loss$(378)$6 $(372)
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses(2,736)(2)(2,738)
Discount rate for reserve for future policy benefits
— 180 180 
Other comprehensive income (loss), after-tax(2,813)178 (2,635)
Comprehensive loss(3,191)184 (3,007)
Comprehensive loss attributable to Allstate$(3,152)$184 $(2,968)
Condensed Consolidated Statements of Financial Position (unaudited)
As
reported		Impact of changeAs
adjusted
($ in millions)December 31, 2022
Assets
Deferred policy acquisition costs$5,418 $24 $5,442 
Reinsurance and indemnification recoverables, net9,606 13 9,619 
Deferred income taxes386 (4)382 
Other assets, net5,905 (1)5,904 
Total assets97,957 32 97,989 
Liabilities
Reserve for future policy benefits1,273 49 1,322 
Contractholder funds897 (18)879 
Unearned premiums22,311 (12)22,299 
Total liabilities80,607 19 80,626 
Equity
Retained income50,954 16 50,970 
Accumulated other comprehensive income (loss):
Unrealized net capital gains and losses(2,253)(2)(2,255)
Discount rate for reserve for future policy benefits
— (1)(1)
Total AOCI(2,389)(3)(2,392)
Total Allstate shareholders’ equity17,475 13 17,488 
Total equity17,350 13 17,363 
Total liabilities and equity$97,957 $32 $97,989 
Condensed Consolidated Statements of Shareholders’ Equity (unaudited)
As
reported		Impact of changeAs
adjusted
($ in millions)Three months ended June 30, 2022
Retained income
Balance, beginning of period$53,688 $(2)$53,686 
Net loss(1,015)2 (1,013)
Balance, end of period52,412 — 52,412 
Accumulated other comprehensive income (loss)
Balance, beginning of period(953)(135)(1,088)
Change in unrealized net capital gains and losses(1,143)(1)(1,144)
Change in discount rate for reserve for future policy benefits
— 85 85 
Balance, end of period(2,158)(51)(2,209)
Total Allstate shareholders’ equity20,115 (51)20,064 
Total equity$20,024 $(51)$19,973 
Six months ended June 30, 2022
Retained income
Balance, beginning of period$53,294 $(6)$53,288 
Net loss(359)6 (353)
Balance, end of period52,412 — 52,412 
Accumulated other comprehensive income (loss)
Balance, beginning of period655 (229)426 
Change in unrealized net capital gains and losses(2,736)(2)(2,738)
Change in discount rate for reserve for future policy benefits
— 180 180 
Balance, end of period(2,158)(51)(2,209)
Total Allstate shareholders’ equity20,115 (51)20,064 
Total equity$20,024 $(51)$19,973 
Condensed Consolidated Statements of Cash Flows (unaudited)
As
reported		Impact of changeAs
adjusted
($ in millions)Six months ended June 30, 2022
Cash flows from operating activities
Net loss$(378)$6 $(372)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Changes in:
Policy benefits and other insurance reserves1,223 (1)1,222 
Unearned premiums1,202 (1)1,201 
Deferred policy acquisition costs(310)(5)(315)
Reinsurance recoverables, net645 — 645 
Income taxes(290)2 (288)
Other operating assets and liabilities(787)(1)(788)
Net cash provided by operating activities$2,105 $— $2,105 
Schedule of impact of adoption for reserve for future policy benefits The following tables summarize the balance of and changes in the reserve for future policy benefits and DAC on January 1, 2021 upon the adoption of the guidance.
Impact of adoption for reserve for future policy benefits
( $ in millions)Accident and healthTraditional lifeTotal
Pre-adoption 12/31/2020 balance (1)
$728 $311 $1,039 
Adjustments:
Effect of the remeasurement of the reserve at upper-medium grade fixed income-based rate (2)
232 153 385 
Adjustments for contracts with net premiums in excess of gross premiums (3)
77 — 77 
Total adjustments309 153 462 
Post-adoption 1/1/2021 balance1,037 464 1,501 
Less: reinsurance recoverables (4)
159 3 162 
Post-adoption 1/1/2021 balance, after reinsurance recoverables$878 $461 $1,339 
(1)Traditional life includes $11 million in reserves related to riders of traditional life insurance products reclassified from contractholder funds.
(2)Adjustment reflected with a corresponding decrease to AOCI.
(3)Adjustment reflected with a corresponding decrease to retained income.
(4)Represents post-adoption January 1, 2021 balance of reinsurance recoverables. Adjustments to reinsurance recoverables for accident and health products increased January 1, 2021 AOCI by $33 million due to the remeasurement of the reserve at upper-medium grade fixed income based rate and increased January 1, 2021 retained income by $51 million due to adjustments for contracts with net premiums in excess of gross premiums.
Rollforward of reserve for future policy benefits (1)
Six months ended June 30,
Accident and
health		Traditional
life		Total
($ in millions)202320222023202220232022
Present value of expected net premiums
Beginning balance$1,464 $1,785 $238 $254 $1,702 $2,039 
Beginning balance at original discount rate1,549 1,604 246 215 1,795 1,819 
Effect of changes in cash flow assumptions— — (12)— (12)— 
Effect of actual variances from expected experience(26)(61)19 20 (7)(41)
Adjusted beginning balance1,523 1,543 253 235 1,776 1,778 
Issuances259 243 18 5 277 248 
Interest accrual25 24 5 4 30 28 
Net premiums collected(186)(199)(25)(21)(211)(220)
Lapses and withdrawals— — — — — — 
Ending balance at original discount rate1,621 1,611 251 223 1,872 1,834 
Effect of changes in discount rate assumptions(68)(29)(7)4 (75)(25)
Ending balance1,553 1,582 244 227 1,797 1,809 
Present value of expected future policy benefits
Beginning balance2,229 2,796 524 673 2,753 3,469 
Beginning balance at original discount rate2,316 2,426 534 511 2,850 2,937 
Effect of changes in cash flow assumptions— — (12)— (12)— 
Effect of actual variances from expected experience(30)(63)20 (7)(10)(70)
Adjusted beginning balance2,286 2,363 542 504 2,828 2,867 
Issuances256 242 18 5 274 247 
Interest accrual47 37 12 11 59 48 
Benefit payments(199)(218)(26)11 (225)(207)
Lapses and withdrawals— — — — — — 
Ending balance at original discount rate2,390 2,424 546 531 2,936 2,955 
Effect of changes in discount rate assumptions(64)9 (7)30 (71)39 
Ending balance$2,326 $2,433 $539 $561 $2,865 $2,994 
Net reserve for future policy benefits (1)
$773 $851 $295 $334 $1,068 $1,185 
Less: reinsurance recoverables84 127 2 2 86 129 
Net reserve for future policy benefits, after reinsurance recoverables
$689 $724 $293 $332 $982 $1,056 
(1)Excludes $271 million and $281 million of reserves related to short-duration and other contracts as of June 30, 2023 and 2022, respectively.
Revenue and interest recognized in the condensed consolidated statements of operations
($ in millions)Six months ended June 30,
20232022
Revenues (1)
Accident and health$446 $494 
Traditional life50 44 
Total$496 $538 
Interest expense (2)
Accident and health$22 $13 
Traditional life7 7 
Total$29 $20 
(1) Total revenues reflects gross premiums used in the calculation for reserve for future policy benefits. Revenues included in Accident and health insurance premiums and contract charges on the Condensed Consolidated Statements of Operations reflect premium revenue recognized for traditional life insurance and long-duration and short-duration accident and health insurance contracts.
(2) Total interest expense presented as part of Accident, health and other policy benefits on the Condensed Consolidated Statements of Operations.
The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts.
As of June 30,
20232022
($ in millions)UndiscountedDiscountedUndiscountedDiscounted
Accident and health
Expected future gross premiums$5,020 $3,602 $5,133 $3,833 
Expected future benefits and expenses3,350 2,326 3,416 2,433 
Traditional life
Expected future gross premiums696 489 636 457 
Expected future benefits and expenses1,008 539 956 561 
Key assumptions used in calculating the reserve for future policy benefits
As of June 30,
Accident and healthTraditional life
2023202220232022
Weighted-average duration (in years)3.94.014.013.0
Weighted-average interest rates
Interest accretion rate (discount rate at contract issuance)5.08 %5.46 %5.46 %5.67 %
Current discount rate (upper-medium grade fixed income yield)4.79 3.66 5.14 4.55 
Schedule of impact of adoption for DAC
Impact of adoption for DAC
( $ in millions)Accident and healthTraditional lifeInterest- sensitive lifeTotal
Pre-adoption 12/31/2020 balance$343 $32 $95 $470 
Adjustment for removal of impact of unrealized gains or losses (1)
— — 2 2 
Post-adoption 1/1/2021 balance$343 $32 $97 $472 
(1)Adjustment reflected with a corresponding increase to AOCI.
Deferred policy acquisition costs activity
($ in millions)Accident and healthTraditional
life		Interest-sensitive lifeTotal
Six months ended June 30, 2023    
Accident and health insurance
Long-duration contracts
Beginning balance$322 $79 $101 $502 
Acquisition costs deferred25 13 7 45 
Amortization charged to income(16)(7)(7)(30)
Experience adjustment(13)— (1)(14)
Total$318 $85 $100 503 
Short-duration contracts27 
Property and casualty5,077 
Ending balance$5,607 
Six months ended June 30, 2022    
Accident and health insurance
Long-duration contracts
Beginning balance$339 $47 $90 $476 
Acquisition costs deferred20 22 16 58 
Amortization charged to income(11)(5)(7)(23)
Experience adjustment(21)(1)(1)(23)
Total$327 $63 $98 488 
Short-duration contracts23 
Property and casualty4,538 
Ending balance$5,049