Reporting Segments

9 Months Ended

Sep. 30, 2014

Reporting Segments

Reporting Segments

14.  Reporting Segments

Summarized revenue data for each of the Company’s reportable segments are as follows:

($ in millions)		Three months ended September 30,						Nine months ended September 30,
		2014			2013			2014			2013
Revenues
Property-Liability
Property-liability insurance premiums
Auto	$		4,890	$		4,645	$		14,426	$		13,774
Homeowners		1,740			1,679			5,151			4,925
Other personal lines		418			410			1,244			1,219
Commercial lines		120			114			351			341
Other business lines		138			124			402			345
Allstate Protection		7,306			6,972			21,574			20,604
Discontinued Lines and Coverages		1			--			1			--
Total property-liability insurance premiums		7,307			6,972			21,575			20,604
Net investment income		344			309			1,007			993
Realized capital gains and losses		266			(26)			569			391
Total Property-Liability		7,917			7,255			23,151			21,988
Allstate Financial
Life and annuity premiums and contract charges
Traditional life insurance		126			120			378			355
Immediate annuities with life contingencies		--			6			5			22
Accident and health insurance		182			180			564			539
Total life and annuity premiums		308			306			947			916
Interest-sensitive life insurance		200			272			676			813
Fixed annuities		4			6			14			13
Total contract charges		204			278			690			826
Total life and annuity premiums and contract charges		512			584			1,637			1,742
Net investment income		473			633			1,651			1,901
Realized capital gains and losses		28			(16)			19			60
Total Allstate Financial		1,013			1,201			3,307			3,703
Corporate and Other
Service fees		1			3			4			6
Net investment income		6			8			22			23
Realized capital gains and losses		--			1			--			1
Total Corporate and Other before reclassification of service fees		7			12			26			30
Reclassification of service fees (1)		(1)			(3)			(4)			(6)
Total Corporate and Other		6			9			22			24
Consolidated revenues	$		8,936	$		8,465	$		26,480	$		25,715

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(1) For presentation in the Condensed Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to operating costs and expenses.

Summarized financial performance data for each of the Company’s reportable segments are as follows:

($ in millions)		Three months ended September 30,				Nine months ended September 30,
		2014		2013		2014		2013
Net income
Property-Liability
Underwriting income
Allstate Protection	$	579	$	831	$	1,146	$	1,566
Discontinued Lines and Coverages		(105)		(134)		(111)		(142)
Total underwriting income		474		697		1,035		1,424
Net investment income		344		309		1,007		993
Income tax expense on operations		(276)		(333)		(686)		(780)
Realized capital gains and losses, after-tax		173		(17)		368		253
(Loss) gain on disposition of operations, after-tax		(1)		--		37		(1)
Property-Liability net income available to common shareholders		714		656		1,761		1,889
Allstate Financial
Life and annuity premiums and contract charges		512		584		1,637		1,742
Net investment income		473		633		1,651		1,901
Periodic settlements and accruals on non-hedge derivative instruments		--		2		(1)		17
Contract benefits and interest credited to contractholder funds		(633)		(800)		(2,033)		(2,380)
Operating costs and expenses and amortization of deferred policy acquisition costs		(171)		(241)		(540)		(670)
Restructuring and related charges		1		(4)		(2)		(7)
Income tax expense on operations		(57)		(47)		(233)		(175)
Operating income		125		127		479		428
Realized capital gains and losses, after-tax		19		(12)		13		37
Valuation changes on embedded derivatives that are not hedged, after-tax		2		(10)		(12)		(13)
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(3)		1		(3)		(2)
DAC and DSI unlocking related to realized capital gains and losses, after-tax		--		7		--		7
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		--		(1)		1		(11)
Loss on disposition of operations, after-tax		(27)		(472)		(55)		(470)
Allstate Financial net income (loss) available to common shareholders		116		(360)		423		(24)
Corporate and Other
Service fees (1)		1		3		4		6
Net investment income		6		8		22		23
Operating costs and expenses (1)		(84)		(162)		(276)		(366)
Income tax benefit on operations		28		58		92		130
Preferred stock dividends		(31)		(6)		(75)		(6)
Operating loss		(80)		(99)		(233)		(213)
Realized capital gains and losses, after-tax		--		1		--		1
Loss on extinguishment of debt, after-tax		--		(6)		--		(318)
Postretirement benefits curtailment gain, after-tax		--		118		--		118
Corporate and Other net (loss) income available to common shareholders		(80)		14		(233)		(412)
Consolidated net income available to common shareholders	$	750	$	310	$	1,951	$	1,453

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(1) For presentation in the Condensed Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to operating costs and expenses.