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Reserve for Property and Casualty Insurance Claims and Claims Expense (Tables)
 12 Months Ended
Dec. 31, 2024
Reserve for Property-Liability Insurance Claims and Claims Expense  
Schedule of Rollforward of Reserve for Property and Casualty Insurance Claims and Claims Expense and Reconciliation of Total Claims and Claims Expense Incurred and Paid by Coverage and Prior Year Reserve Reestimates Included in Claims and Claims Expense
Rollforward of reserve for property and casualty insurance claims and claims expense
($ in millions)202420232022
Balance as of January 1$39,858 $37,541 $33,060 
Less recoverables (1)
8,396 9,176 9,479 
Net balance as of January 131,462 28,365 23,581 
Incurred claims and claims expense related to:
Current year40,043 40,521 35,523 
Prior years(308)549 1,741 
Total incurred39,735 41,070 37,264 
Claims and claims expense paid related to:
Current year(23,488)(23,607)(20,739)
Prior years(14,394)(14,366)(11,741)
Total paid(37,882)(37,973)(32,480)
Net balance as of December 3133,315 31,462 28,365 
Plus recoverables8,602 8,396 9,176 
Balance as of December 31$41,917 $39,858 $37,541 
(1)Recoverables comprises reinsurance and indemnification recoverables. See Note 12 for further details.
Reconciliation of total claims and claims expense incurred and paid by coverage
December 31, 2024
($ in millions)IncurredPaid
Allstate Protection
Auto insurance - liability coverage$15,666 $(13,342)
Auto insurance - physical damage coverage8,238 (8,351)
Homeowners insurance8,157 (8,201)
Total auto and homeowners insurance 32,061 (29,894)
Other personal lines2,270 (1,758)
Commercial lines616 (838)
Other business lines
310 (276)
Protection Services
547 (540)
Run-off Property-Liability59 (89)
Unallocated loss adjustment expenses (“ULAE”)3,480 (3,443)
Claims incurred and paid from before 2020335 (819)
Other (1)
57 (225)
Total$39,735 $(37,882)
(1)Paid and incurred amounts primarily related to the effect of foreign currency translation adjustments.
Prior year reserve reestimates included in claims and claims expense (1)
For the years ended December 31,
Non-catastrophe lossesCatastrophe lossesTotal
($ in millions)202420232022202420232022202420232022
Auto$(328)$294 $1,249 $(36)$(50)$(64)$(364)$244 $1,185 
Homeowners(73)66 123 (322)36 77 (395)102 200 
Other personal lines224 37 (34)(7)(18)2 217 19 (32)
Commercial lines171 76 273 (5)8 (1)166 84 272 
Other business lines
— 12 (10)— — 4 — 12 (6)
Run-off Property-Liability (2)
68 89 125 — — — 68 89 125 
Protection Services
— (1)(3)— — — — (1)(3)
Total prior year reserve reestimates$62 $573 $1,723 $(370)$(24)$18 $(308)$549 $1,741 
(1)Favorable reserve reestimates are shown in parentheses.
(2)The Company’s 2024, 2023 and 2022 annual reserve review, using established industry and actuarial best practices, resulted in unfavorable reestimates of $58 million, $80 million and $118 million, respectively.
Schedule of Incurred Claims, Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Recoverables The information about incurred and paid claims development for the 2020 to 2024 years, and the average annual percentage payout of incurred claims by age as of December 31, 2024, is presented as required supplementary information.
Auto insurance – liability coverage
($ in millions, except number of reported claims)
Incurred claims and allocated claim adjustment expenses, net of recoverables
IBNR reserves plus expected development on reported claims
Cumulative number of reported claims (in thousands)
For the years ended December 31,Prior year reserve reestimatesAs of December 31, 2024
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20202021202220232024
2020$8,667 $8,565 $8,808 $8,819 $8,840 $21 $541 2,075 
2021— 10,448 10,897 11,217 11,272 55 1,180 2,439 
2022— — 13,282 13,281 13,538 257 2,465 2,607 
2023— — — 15,325 14,787 (538)4,927 2,583 
2024— — — — 15,871 10,669 2,316 
Total$64,308 $(205)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2020 accident years
159 
Prior year reserve reestimates for ULAE(27)
Other10 
Total prior year reserve reestimates$(63)
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20202021202220232024
2020$3,078 $5,750 $7,049 $7,867 $8,299 
2021— 3,569 7,333 9,147 10,092 
2022— — 4,458 9,086 11,073 
2023— — — 5,084 9,860 
2024— — — — 5,202 
Total$44,526 
All outstanding liabilities before 2020, net of recoverables
1,400 
Liabilities for claims and claim adjustment expenses, net of recoverables$21,182 
Auto insurance – physical damage coverage
($ in millions, except number of reported claims)Incurred claims and allocated claim adjustment expenses, net of recoverablesIBNR reserves plus expected development on reported claims
Cumulative number of reported claims (in thousands)
For the years ended December 31,Prior year reserve reestimatesAs of December 31, 2024
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20202021202220232024
2020$5,434 $5,359 $5,332 $5,327 $5,328 $1 $3 4,042 
2021— 7,226 7,254 7,216 7,221 5 1 4,633 
2022— — 9,308 8,996 9,037 41 (7)4,977 
2023— — — 9,422 9,081 (341)(5)4,799 
2024— — — — 8,532 719 4,222 
Total$39,199 $(294)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2020 accident years
(1)
Prior year reserve reestimates for ULAE(5)
Other(1)
Total prior year reserve reestimates$(301)
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20202021202220232024
2020$5,079 $5,361 $5,335 $5,327 $5,325 
2021— 6,794 7,297 7,241 7,220 
2022— — 8,252 9,087 9,044 
2023— — — 8,482 9,086 
2024— — — — 7,813 
Total$38,488 
All outstanding liabilities before 2020, net of recoverables
10 
Liabilities for claims and claim adjustment expenses, net of recoverables$721 
Homeowners insurance
($ in millions, except number of reported claims)Incurred claims and allocated claim adjustment expenses, net of recoverablesIBNR reserves plus expected development on reported claims
Cumulative number of reported claims (in thousands)
For the years ended December 31,Prior year reserve reestimatesAs of December 31, 2024
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20202021202220232024
2020$5,685 $5,792 $5,882 $5,929 $5,948 $19 $77 992 
2021— 6,310 6,457 6,514 6,555 41 154 998 
2022— — 6,551 6,503 6,476 (27)257 794 
2023— — — 9,082 8,612 (470)795 1,026 
2024— — — — 8,594 2,851 993 
Total$36,185 $(437)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2020 accident years
19 
Prior year reserve reestimates for ULAE22 
Other1 
Total prior year reserve reestimates$(395)
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20202021202220232024
2020$4,209 $5,492 $5,734 $5,826 $5,871 
2021— 4,459 6,052 6,286 6,401 
2022— — 3,902 5,950 6,219 
2023— — — 5,788 7,817 
2024— — — — 5,743 
Total$32,051 
All outstanding liabilities before 2020, net of recoverables
132 
Liabilities for claims and claim adjustment expenses, net of recoverables$4,266 
The information about incurred and paid claims development for the 2020 to 2024 years, and the average annual percentage payout of incurred claims by age as of December 31, 2024, is presented as required supplementary information.
Group and individual accident and health
($ in millions, except number of reported claims)
Incurred claims and allocated claim adjustment expenses, net of recoverables
IBNR reserves plus expected development on reported claims
Cumulative number of reported claims (in thousands)
For the years ended December 31,As of December 31, 2024
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20202021202220232024
2020$297 $293 $294 $291 $290 $— 415 
2021— 424 420 415 417 — 679 
2022— — 437 402 399 1 590 
2023— — — 476 455 10 582 
2024— — — — 537 175 456 
Total$2,098 
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20202021202220232024
2020$184 $284 $290 $290 $290 
2021— 272 408 413 416 
2022— 275 393 398 
2023— — — 312 446 
2024— — — — 362 
Total$1,912 
All outstanding liabilities before 2020, net of recoverables— 
Liabilities for claims and claim adjustment expenses, net of recoverables$186 
Schedule of Average Annual Percentage Payout of Incurred Claims by Age, Net of Recoverables
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2024
1 year2 years3 years4 years5 years
After 5 years
Auto insurance – liability coverage
33.3 %32.5 %15.2 %8.8 %4.9 %5.3 %
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2024
1 year2 years3 years4 years5 years
After 5 years
Auto insurance – physical damage coverage
93.1 %7.0 %(0.6)%(0.2)%— %0.7 %
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2024
1 year2 years3 years4 years5 years
After 5 years
Homeowners insurance66.6 %25.3 %3.9 %1.6 %0.8 %1.8 %
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2024
1 year2 years3 years4 years5 years
Group and individual accident and health65.3 %32.3 %1.6 %0.6 %0.2 %
Schedule of Reconciliation of the Net Incurred and Paid Claims Development to Reserve for Property and Casualty Insurance Claims and Claims Expense
Reconciliation of the net incurred and paid claims development tables above to the reserve for property and casualty insurance claims and claims expense
($ in millions)As of December 31, 2024
Net outstanding liabilities
Allstate Protection
Auto insurance - liability coverage$21,182 
Auto insurance - physical damage coverage721 
Homeowners insurance4,266 
Other personal lines2,266 
Commercial lines1,654 
Other business lines
133 
Protection Services
53 
Run-off Property-Liability (1)
1,328 
ULAE1,709 
Other (2)
3 
Net reserve for property and casualty insurance claims and claims expense33,315 
Recoverables
Allstate Protection
Auto insurance - liability coverage6,958 
Auto insurance - physical damage coverage37 
Homeowners insurance523 
Other personal lines260 
Commercial lines299 
Other business lines
2 
Protection Services
15 
Run-off Property-Liability468 
ULAE40 
Total recoverables8,602 
Gross reserve for property and casualty insurance claims and claims expense$41,917 
(1)Run-off Property-Liability includes business in run-off with most of the claims related to accident years more than 40 years ago. IBNR reserves represent $723 million of the total reserves as of December 31, 2024.
(2)Related to the unamortized fair value adjustment related to the acquisition of National General.
Reconciliation of the net incurred and paid claims development tables above to the reserve for future policy benefits
($ in millions)As of December 31, 2024
Net outstanding liabilities
Group and individual accident and health short-duration contracts$186 
Long-duration accident and health insurance
45 
Long-duration traditional life insurance
7 
Other contracts
5 
ULAE9 
Net reserve for future policy benefits252 
Recoverables
Group and individual accident and health short-duration contracts17 
Gross reserve for future policy benefits$269