Item 16. None.

45K characters. Original on sec.gov · Markdown

Item 16. None.

None.

The Allstate Corporation 191

2021 Form 10-K

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


						The Allstate Corporation (Registrant)

						/s/ John C. Pintozzi
						By: John C. Pintozzi
						Senior Vice President, Controller and Chief Accounting Officer
						(Principal Accounting Officer)
						February 18, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


Signature	Title	Date

/s/ Thomas J. Wilson	Chairman of the Board, President, Chief Executive Officer and a Director (Principal Executive Officer)	February 18, 2022
Thomas J. Wilson

/s/ Mario Rizzo	Executive Vice President and Chief Financial Officer (Principal Financial Officer)	February 18, 2022
Mario Rizzo

/s/ John C. Pintozzi	Senior Vice President, Controller and Chief Accounting Officer (Principal Accounting Officer)	February 18, 2022
John C. Pintozzi

/s/ Donald E. Brown	Director	February 18, 2022
Donald E. Brown

/s/ Kermit R. Crawford	Director	February 18, 2022
Kermit R. Crawford

/s/ Michael L. Eskew	Director	February 18, 2022
Michael L. Eskew

/s/ Richard T. Hume	Director	February 18, 2022
Richard T. Hume

/s/ Margaret M. Keane	Director	February 18, 2022
Margaret M. Keane

/s/ Siddharth N. Mehta	Director	February 18, 2022
Siddharth N. Mehta

/s/ Jacques P. Perold	Director	February 18, 2022
Jacques P. Perold

/s/ Andrea Redmond	Director	February 18, 2022
Andrea Redmond




/s/ Gregg M. Sherrill	Lead Director	February 18, 2022
Gregg M. Sherrill

/s/ Judith A. Sprieser	Director	February 18, 2022
Judith A. Sprieser




/s/ Perry M. Traquina	Director	February 18, 2022
Perry M. Traquina

192 www.allstate.com

2021 Form 10-K

The Allstate Corporation and Subsidiaries

Schedule I — Summary of Investments Other than Investments in Related Parties


	As of December 31, 2021
($ in millions)	Cost/amortized cost, net		Fair value (if applicable)		Amount shown in the Balance Sheet
Type of investment
Fixed maturities:
Bonds:
United States government, government agencies and authorities	$	6,287	$	6,273	$	6,273
States, municipalities and political subdivisions	6,130		6,393		6,393
Foreign governments	982		985		985
Public utilities	2,009		2,024		2,024

All other corporate bonds	24,825		25,306		25,306
Asset-backed securities	1,143		1,155		1,155



Total fixed maturities	41,376		42,136		42,136

Equity securities:
Common stocks:
Public utilities	99		118		118
Banks, trusts and insurance companies	548		653		653
Industrial, miscellaneous and all other	5,145		5,954		5,954
Nonredeemable preferred stocks	224		336		336
Total equity securities	6,016		7,061		7,061

Mortgage loans on real estate	821		853		821
Real estate (none acquired in satisfaction of debt)	809				809
Policy loans	148				148
Derivative instruments	12		12		12
Limited partnership interests	8,018				8,018
Other long-term investments	1,687				1,687
Short-term investments	4,009		4,009		4,009
Total investments	$	62,896			$	64,701

S-1 www.allstate.com

2021 Form 10-K

The Allstate Corporation and Subsidiaries

Schedule II — Condensed Financial Information of Registrant Statement of Operations


	Year Ended December 31,
($ in millions)	2021		2020		2019
Revenues
Investment income, less investment expense	$	13	$	12	$	35
Net gains (losses) on investments and derivatives	12		33		9
Other income	—		—		41
Total revenues	25		45		85

Expenses
Interest expense	328		328		355

Pension and other postretirement remeasurement (gains) losses	(611)		(73)		103
Pension and other postretirement (benefit) expense	(218)		(168)		(122)
Other operating expenses	71		73		49
Total expenses	(430)		160		385

Gain (loss) from operations before income tax benefit and equity in net income of subsidiaries	455		(115)		(300)

Income tax expense (benefit)	93		(26)		(75)
Gain (loss) before equity in net income of subsidiaries	362		(89)		(225)

Equity in net income of subsidiaries (1)	1,237		5,665		5,072
Net income	1,599		5,576		4,847

Preferred stock dividends	114		115		169

Net income applicable to common shareholders	1,485		5,461		4,678

Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	(2,582)		1,293		1,889
Unrealized foreign currency translation adjustments	(8)		52		(10)
Unamortized pension and other postretirement prior service credit	(59)		9		(47)
Other comprehensive (loss) income, after-tax	(2,649)		1,354		1,832
Comprehensive (loss) income	$	(1,050)	$	6,930	$	6,679

(1)Includes results of operations for the life and annuity business held for sale reported as discontinued operations in the Consolidated Statements of Operations.

See accompanying notes to condensed financial information and notes to consolidated financial statements.

The Allstate Corporation S-2

2021 Form 10-K

The Allstate Corporation and Subsidiaries

Schedule II (Continued) — Condensed Financial Information of Registrant Statement of Financial Position


	December 31,
($ in millions, except par value data)	2021		2020
Assets
Investments in subsidiaries (1)	$	32,058	$	35,603
Fixed income securities, at fair value (amortized cost, net $1,708 and zero)	1,718		—
Short-term investments, at fair value (amortized cost, net $297 and $4,479)	297		4,479
Cash	1		—
Receivable from subsidiaries	504		524

Deferred income taxes	22		187
Other assets	222		87
Total assets	34,822		40,880
Liabilities

Long-term debt	7,581		7,825
Pension and other postretirement benefit obligations	211		874
Deferred compensation	383		351
Payable to subsidiaries	—		—
Notes due to subsidiaries	1,000		1,250
Dividends payable to shareholders	269		201

Other liabilities	199		162
Total liabilities	9,643		10,663
Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 81.0 thousand shares issued and outstanding, $2,025 aggregate liquidation preference	1,970		1,970
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 281 million and 304 million shares outstanding	9		9
Additional capital paid-in	3,722		3,498
Retained income	53,294		52,767

Treasury stock, at cost (619 million and 596 million shares)	(34,471)		(31,331)
Accumulated other comprehensive income:
Unrealized net capital gains and losses	598		3,180
Unrealized foreign currency translation adjustments	(15)		(7)
Unamortized pension and other postretirement prior service credit	72		131
Total accumulated other comprehensive income	655		3,304
Total Allstate shareholders’ equity	25,179		30,217
Total liabilities and equity	$	34,822	$	40,880

(1)2020 includes results for life and annuity business classified as held for sale in the Consolidated Statements of Financial Position.

See accompanying notes to condensed financial information and notes to consolidated financial statements.

S-3 www.allstate.com

2021 Form 10-K

The Allstate Corporation and Subsidiaries

Schedule II (Continued) — Condensed Financial Information of Registrant Statement of Cash Flows


	Years Ended December 31,
($ in millions)	2021		2020		2019
Cash flows from operating activities
Net income	$	1,599	$	5,576	$	4,847
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries (1)	(1,237)		(5,665)		(5,072)
Dividends received from subsidiaries	5,112		4,157		2,434
Net (gains) losses on investments and derivatives	(12)		(33)		(9)

Pension and other postretirement remeasurement (gains) losses	(611)		(73)		103
Changes in:
Pension and other postretirement benefits	(218)		(168)		(122)
Income taxes	177		54		13
Operating assets and liabilities	158		110		111
Net cash provided by operating activities	4,968		3,958		2,305

Cash flows from investing activities
Proceeds from sales of investments	1,743		1,251		1,094

Investment purchases	(2,673)		(402)		(892)
Investment collections	38		16		65
Capital contribution or return of capital from subsidiaries	383		251		43

Change in short-term investments, net	4,182		(3,777)		(417)
Acquisition of subsidiaries	(4,144)		—		—
Net cash used in investing activities	(471)		(2,661)		(107)

Cash flows from financing activities
Proceeds from borrowings from subsidiaries	2,200		1,250		1,000
Repayment of notes due to subsidiaries	(2,450)		(1,000)		(1,250)
Proceeds from issuance of long-term debt	—		1,189		491
Redemption of preferred stock	—		(288)		(1,132)
Redemption and repayment of long-term debt	(250)		—		(317)
Proceeds from issuance of preferred stock	—		—		1,414
Dividends paid on common stock	(885)		(668)		(653)
Dividends paid on preferred stock	(105)		(108)		(134)
Treasury stock purchases	(3,120)		(1,737)		(1,735)
Shares reissued under equity incentive plans, net	114		63		120

Other	—		—		—
Net cash used in financing activities	(4,496)		(1,299)		(2,196)

Net increase (decrease) in cash	1		(2)		2
Cash at beginning of year	—		2		—
Cash at end of year	$	1	$	—	$	2

(1)Includes results of operations for the life and annuity business held for sale reported as discontinued operations in the Consolidated Statements of Operations.

See accompanying notes to condensed financial information and notes to consolidated financial statements.

The Allstate Corporation S-4

2021 Form 10-K

The Allstate Corporation and Subsidiaries

Schedule II (Continued) — Condensed Financial Information of Registrant

Notes to Condensed Financial Information

1. General

Pursuant to rules and regulations of the SEC, the unconsolidated condensed financial statements of the Parent Company do not reflect all of the information and notes normally included with financial statements prepared in accordance with GAAP. Therefore, these condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8.

The long-term debt presented in Note 13 “Capital Structure” are direct obligations of or guaranteed by the Registrant. A majority of the pension and other postretirement benefits plans presented in Note 18 “Benefit Plans” are direct obligations of the Registrant.

Participating subsidiaries fund the pension plans contributions under a master services cost sharing agreement. In addition, as a result of joint and several pension liability rules under the Internal Revenue Code and the Employee Retirement Income Security Act of 1974, as amended, many liabilities that arise in connection with pension plans are joint and several across all members of a controlled group of entities.

2. Notes due to subsidiaries

On March 1, 2021 and June 18, 2021, the Registrant issued $200 million and $1.00 billion notes, with rates of 0.21% and 0.20%, due on March 1, 2022 and June 18, 2022, respectively, to Kennett Capital Inc. The proceeds of these issuances were used for cash management purposes. On April 05, 2021, the Registrant repaid $200 million to Kennett Capital Inc.

On June 18, 2020 and December 29, 2020, the Registrant issued $1.00 billion and $250 million notes, with rates of 0.43% and 0.33%, due on June 18, 2021 and December 29, 2021, respectively, to Kennett Capital Inc. The proceeds of these issuances were used for cash management purposes. On April 5, 2021 and June 18, 2021, the Registrant repaid $250 million and $1.00 billion, respectively, to Kennett Capital Inc.

On June 19, 2019, the Registrant issued a $1.00 billion note, with a rate of 2.63% due on June 19, 2020 to Kennett Capital Inc. The proceeds of this issuance were used for cash management purposes. On June 18, 2020, the Registrant repaid $1.00 billion to Kennett Capital Inc.

3. Supplemental Disclosures of Cash Flow Information

The Registrant paid $321 million, $311 million and $312 million of interest on debt in 2021, 2020 and 2019, respectively.

S-5 www.allstate.com

2021 Form 10-K

The Allstate Corporation and Subsidiaries

Schedule III — Supplementary Insurance Information


($ in millions)	As of December 31,						For the years ended December 31,
Segment	Deferred policy acquisition costs		Reserves for claims and claims expense, contract benefits and contractholder funds		Unearned premiums		Premium revenue and contract charges		Net investment income (1)		Claims and claims expense, contract benefits and interest credited to contractholders		Amortization of deferred policy acquisition costs		Other operating costs and expenses		Premiums written (excluding life)
2021
Property-Liability
Allstate Protection	$	1,951	$	31,099	$	15,763	$	40,454			$	28,760	$	5,313	$	6,033	$	41,358
Run-off Property-Liability	—		1,916		—		—				116		—		4		—
Total Property-Liability	1,951		33,015		15,763		40,454		$	3,118	28,876		5,313		6,037		41,358
Protection Services (2)	2,294		45		4,054		1,939		43		458		795		938		2,642
Allstate Health and Benefits	477		2,181		27		1,821		74		1,049		144		838		1,630
Corporate and Other	—		—		—		—		58		—		—		(133)		—
Intersegment Eliminations (2)	—		—		—		(175)		—		(16)		—		(159)		—
Total	$	4,722	$	35,241	$	19,844	$	44,039	$	3,293	$	30,367	$	6,252	$	7,521	$	45,630

2020
Property-Liability
Allstate Protection	$	1,608	$	25,679	$	12,772	$	35,580			$	21,485	$	4,642	$	5,741	$	35,768
Run-off Property-Liability	—		1,888		—		—				141		—		3		—
Total Property-Liability	1,608		27,567		12,772		35,580		$	1,421	21,626		4,642		5,744		35,768
Protection Services (2)	1,696		43		3,167		1,640		44		386		658		760		1,890

Allstate Health and Benefits	470		1,885		7		1,094		78		549		177		323		839

Corporate and Other	—		—		—		—		47		—		—		389		—
Intersegment Eliminations (2)	—		—		—		(147)		—		(11)		—		(136)		—
Total	$	3,774	$	29,495	$	15,946	$	38,167	$	1,590	$	22,550	$	5,477	$	7,080	$	38,497

2019
Property-Liability
Allstate Protection	$	1,624	$	25,843	$	12,567	$	34,843			$	23,517	$	4,649	$	4,622	$	35,419
Run-off Property-Liability	—		1,818		—		—				105		—		3		—
Total Property-Liability	1,624		27,661		12,567		34,843		$	1,533	23,622		4,649		4,625		35,419
Protection Services (2)	1,449		51		2,765		1,387		42		363		543		838		1,535

Allstate Health and Benefits	527		1,950		8		1,145		83		635		161		285		868

Corporate and Other	—		—		—		—		70		—		—		531		—
Intersegment Eliminations (2)	—		—		—		(154)		—		(9)		—		(145)		—
Total	$	3,600	$	29,662	$	15,340	$	37,221	$	1,728	$	24,611	$	5,353	$	6,134	$	37,822

(1)A single investment portfolio supports both Allstate Protection and Run-off Property-Liability segments.

(2)Includes intersegment premiums and service fees and the related incurred losses and expenses that are eliminated in the consolidated financial statements.

The Allstate Corporation S-6

2021 Form 10-K

The Allstate Corporation and Subsidiaries

Schedule IV — Reinsurance


($ in millions)	Gross amount		Ceded to other companies (1)		Assumed from other companies		Net amount		Percentage of amount assumed to net
Year ended December 31, 2021
Life insurance in force	$	20,535	$	640	$	1,528	$	21,423	7.1	%
Premiums and contract charges:
Life insurance	$	156	$	6	$	15	$	165	9.1	%
Accident and health insurance	1,722		72		6		1,656		0.4
Property and casualty insurance	43,944		1,904		178		42,218		0.4
Total premiums and contract charges	$	45,822	$	1,982	$	199	$	44,039	0.5

Year ended December 31, 2020
Life insurance in force	$	17,124	$	16,528	$	1,003	$	1,599	62.7	%
Premiums and contract charges:
Life insurance	$	162	$	8	$	14	$	168	8.3	%
Accident and health insurance	931		5		—		926		—
Property and casualty insurance	38,115		1,141		99		37,073		0.3
Total premiums and contract charges	$	39,208	$	1,154	$	113	$	38,167	0.3

Year ended December 31, 2019
Life insurance in force	$	18,575	$	17,801	$	1,062	$	1,836	57.8	%
Premiums and contract charges:
Life insurance	$	151	$	8	$	14	$	157	8.9	%
Accident and health insurance	994		6		—		988		—
Property and casualty insurance	37,104		1,122		94		36,076		0.3
Total premiums and contract charges	$	38,249	$	1,136	$	108	$	37,221	0.3

(1)No reinsurance or coinsurance income was netted against premium ceded in 2021, 2020 or 2019.

S-7 www.allstate.com

2021 Form 10-K

The Allstate Corporation and Subsidiaries

Schedule V — Valuation Allowances and Qualifying Accounts


($ in millions)			Additions
Description	Balance as of beginning of period (1)		Charged to costs and expenses		Other additions		Deductions		Balance as of end of period
Year ended December 31, 2021
Fixed income securities	$	2	$	4	$	—	$	—	$	6
Mortgage loans	67		(61)		—		—		6

Bank loans	67		(6)		—		—		61

Investments	136		(63)		—		—		73
Premium installment receivable	153		274		19		339		107
Reinsurance recoverables	60		15		—		1		74
Other assets	17		9		—		—		26
Assets	366		235		19		340		280
Commitments to fund mortgage loans and bank loans	1		—		—		1		—
Liabilities	1		—		—		1		—
Total	$	367	$	235	$	19	$	341	$	280

Valuation allowance for deferred tax assets	$	—	$	—	$	38	$	14	$	24

Year ended December 31, 2020
Fixed income securities	$	—	$	2	$	—	$	—	$	2
Mortgage loans (2)	45		39		—		17		67

Bank loans (2)	53		28		—		14		67

Investments	98		69		—		31		136
Premium installment receivable	91		223		—		161		153
Reinsurance recoverables	61		(1)		—		—		60
Other assets	15		2		—		—		17
Assets	265		293		—		192		366
Commitments to fund mortgage loans and bank loans	3		—		—		2		1
Liabilities	3		—		—		2		1
Total	$	268	$	293	$	—	$	194	$	367

Year ended December 31, 2019
Mortgage loans (2)	$	3	$	—	$	—	$	—	$	3
Premium installment receivable	77		137		—		124		90
Reinsurance recoverables	$	65	$	(5)	$	—	$	—	$	60

(1)Effective January 1, 2020, the Company adopted the measurement of credit losses on financial instruments accounting standard that primarily affected mortgage loans, bank loans and reinsurance recoverables. After consideration of existing valuation allowances maintained prior to adopting the new guidance, the Company increased its valuation allowances for credit losses at January 1, 2020 to conform to the new requirements.

(2)Includes credit loss allowance for investments that are classified as held for sale as of December 31, 2020 and 2019.

S-8 www.allstate.com

Previous: Item 15. (a) (3)