Item 16. None.

45K characters. Original on sec.gov · Markdown

Item 16. None.

None.

The Allstate Corporation 197

2023 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 21, 2024

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 21, 2024
Thomas J. Wilson

/s/ Jesse E. Merten	Executive Vice President and Chief Financial Officer (Principal Financial Officer)	February 21, 2024
Jesse E. Merten

/s/ John C. Pintozzi	Senior Vice President, Controller and Chief Accounting Officer (Principal Accounting Officer)	February 21, 2024
John C. Pintozzi

/s/ Donald E. Brown	Director	February 21, 2024
Donald E. Brown

/s/ Kermit R. Crawford	Director	February 21, 2024
Kermit R. Crawford

/s/ Richard T. Hume	Director	February 21, 2024
Richard T. Hume

/s/ Margaret M. Keane	Director	February 21, 2024
Margaret M. Keane

/s/ Siddharth N. Mehta	Director	February 21, 2024
Siddharth N. Mehta

/s/ Maria R. Morris	Director	February 21, 2024
Maria R. Morris

/s/ Jacques P. Perold	Director	February 21, 2024
Jacques P. Perold

/s/ Andrea Redmond	Director	February 21, 2024
Andrea Redmond

/s/ Gregg M. Sherrill	Lead Director	February 21, 2024
Gregg M. Sherrill

/s/ Judith A. Sprieser	Director	February 21, 2024
Judith A. Sprieser

/s/ Perry M. Traquina	Director	February 21, 2024
Perry M. Traquina

/s/ Monica Turner	Director	February 21, 2024
Monica Turner

198 www.allstate.com

2023 Form 10-K

The Allstate Corporation and Subsidiaries

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


	As of December 31, 2023
($ 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	$	8,624	$	8,619	$	8,619
States, municipalities and political subdivisions	6,049		6,006		6,006
Foreign governments	1,286		1,290		1,290
Public utilities	5,330		5,316		5,316

All other corporate bonds	26,621		25,889		25,889
Asset-backed securities	1,739		1,745		1,745



Total fixed maturities	49,649		48,865		48,865

Equity securities:
Common stocks:
Public utilities	44		47		47
Banks, trusts and insurance companies	36		53		53
Industrial, miscellaneous and all other	1,855		1,956		1,956
Nonredeemable preferred stocks	309		355		355
Total equity securities	2,244		2,411		2,411

Mortgage loans on real estate	822		769		822
Real estate (none acquired in satisfaction of debt)	709				709
Policy loans	119				119
Derivative instruments	1		1		1
Limited partnership interests	8,380				8,380
Other long-term investments	226		239		226
Short-term investments	5,145		5,144		5,144
Total investments	$	67,295			$	66,677

The Allstate Corporation S-1

2023 Form 10-K

The Allstate Corporation and Subsidiaries

Schedule II — Condensed Financial Information of Registrant Statement of Operations


	Year Ended December 31,
($ in millions)	2023		2022		2021
Revenues
Investment income, less investment expense	$	45	$	59	$	13
Net gains (losses) on investments and derivatives	(28)		(34)		12

Total revenues	17		25		25

Expenses
Interest expense	396		351		328
Pension and other postretirement remeasurement (gains) losses	12		179		(611)
Pension and other postretirement (benefit) expense	55		(98)		(218)
Other operating expenses	142		56		71
Total expenses	605		488		(430)

(Loss) gain from operations before income tax benefit and equity in net income of subsidiaries	(588)		(463)		455

Income tax (benefit) expense	(143)		(103)		93
(Loss) gain before equity in net income of subsidiaries	(445)		(360)		362

Equity in net income (loss) of subsidiaries (1)	257		(929)		1,252
Net (loss) income	(188)		(1,289)		1,614

Preferred stock dividends	128		105		114

Net (loss) income applicable to common shareholders	(316)		(1,394)		1,500

Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	1,651		(2,853)		(2,583)
Unrealized foreign currency translation adjustments	67		(150)		(8)
Unamortized pension and other postretirement prior service credit	(16)		(43)		(59)
Discount rate for reserve for future policy benefits	(10)		228		49
Other comprehensive income (loss), after-tax	1,692		(2,818)		(2,601)
Comprehensive income (loss)	$	1,504	$	(4,107)	$	(987)

(1)2021 include 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.

S-2 www.allstate.com

2023 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)	2023		2022
Assets
Investments in subsidiaries	$	24,388	$	23,711
Fixed income securities, at fair value (amortized cost, net $1,027 and $2,513)	1,003		2,422
Short-term investments, at fair value (amortized cost, net $297 and $291)	297		291
Cash	—		—
Receivable from subsidiaries	359		341
Deferred income taxes	90		59
Other assets	233		108
Total assets	26,370		26,932
Liabilities
Debt	7,585		7,588
Pension and other postretirement benefit obligations	237		180
Deferred compensation	341		320

Notes due to subsidiaries	—		1,000
Dividends payable to shareholders	270		260

Other liabilities	167		96
Total liabilities	8,600		9,444
Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 82.0 thousand and 81.0 thousand shares issued and outstanding, $2,050 and $2,025 aggregate liquidation preference	2,001		1,970
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 262 million and 263 million shares outstanding	9		9
Additional capital paid-in	3,854		3,788
Retained income	49,716		50,970
Treasury stock, at cost (638 million and 637 million shares)	(37,110)		(36,857)
Accumulated other comprehensive income:
Unrealized net capital gains and losses	(604)		(2,255)
Unrealized foreign currency translation adjustments	(98)		(165)
Unamortized pension and other postretirement prior service credit	13		29
Discount rate for reserve for future policy benefits	(11)		(1)
Total accumulated other comprehensive loss	(700)		(2,392)
Total Allstate shareholders’ equity	17,770		17,488
Total liabilities and equity	$	26,370	$	26,932

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

The Allstate Corporation S-3

2023 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)	2023		2022		2021
Cash flows from operating activities
Net (loss) income	$	(188)	$	(1,289)	$	1,614
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net (loss) income of subsidiaries (1)	(257)		929		(1,252)
Dividends received from subsidiaries	250		3,396		5,112
Net (gains) losses on investments and derivatives	28		34		(12)
Pension and other postretirement remeasurement (gains) losses	12		179		(611)
Changes in:
Pension and other postretirement benefits	55		(98)		(218)
Income taxes	(78)		(14)		177
Operating assets and liabilities	43		76		158
Net cash (used in) provided by operating activities	(135)		3,213		4,968

Cash flows from investing activities
Proceeds from sales of investments	1,427		2,572		1,743

Investment purchases	(50)		(2,507)		(2,673)
Investment collections	85		39		38
Capital contribution or return of capital from subsidiaries	975		145		383
Change in short-term investments, net	(7)		6		4,182
Acquisition of subsidiaries	—		—		(4,144)
Net cash provided by (used in) investing activities	2,430		255		(471)

Cash flows from financing activities
Proceeds from borrowings from subsidiaries	—		1,000		2,200
Repayment of notes due to subsidiaries	(1,000)		(1,000)		(2,450)
Proceeds from issuance of debt	743		—		—
Redemption of preferred stock	(575)		—		—
Redemption and repayment of debt	(750)		—		(250)
Proceeds from issuance of preferred stock	587		—		—
Dividends paid on common stock	(925)		(926)		(885)
Dividends paid on preferred stock	(107)		(105)		(105)
Treasury stock purchases	(335)		(2,520)		(3,120)
Shares reissued under equity incentive plans, net	73		82		114
Other	(6)		—		—
Net cash used in financing activities	(2,295)		(3,469)		(4,496)

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

(1)2021 results include 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.

S-4 www.allstate.com

2023 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 Securities and Exchange Commission, 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 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 June 17, 2022, the Registrant issued $1.00 billion notes, with a rate of 1.63% due on June 17, 2023, to Kennett Capital Inc. The proceeds of this issuance were used for cash management purposes. On June 9, 2023, the Registrant repaid $1.00 billion to Kennett Capital Inc.

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 5, 2021, the Registrant repaid $200 million to Kennett Capital Inc. On June 17, 2022, the Registrant repaid $1.00 billion to Kennett Capital Inc.

3. Supplemental Disclosures of Cash Flow Information

The Registrant paid $355 million, $323 million and $321 million of interest on debt in 2023, 2022 and 2021, respectively.

The Allstate Corporation S-5

2023 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)
2023
Property-Liability
Allstate Protection	$	2,378	$	37,852	$	19,542	$	48,427			$	40,364	$	6,070	$	5,628	$	50,347
Run-off Property-Liability	—		1,942		—		—				89		—		5		—
Total Property-Liability	2,378		39,794		19,542		48,427		$	2,218	40,453		6,070		5,633		50,347
Protection Services (2)	3,022		64		5,150		2,381		73		632		1,058		956		2,663
Allstate Health and Benefits	540		2,235		17		1,846		82		1,071		150		881		1,598
Corporate and Other	—		—		—		—		105		—		—		676		—
Intersegment Eliminations (2)	—		—		—		(138)		—		(15)		—		(123)		—
Total	$	5,940	$	42,093	$	24,709	$	52,516	$	2,478	$	42,141	$	7,278	$	8,023	$	54,608

2022
Property-Liability
Allstate Protection	$	2,146	$	35,537	$	17,538	$	43,909			$	36,607	$	5,570	$	5,930	$	45,787
Run-off Property-Liability	—		1,955		—		—				125		—		4		—
Total Property-Liability	2,146		37,492		17,538		43,909		$	2,190	36,732		5,570		5,934		45,787
Protection Services (2)	2,768		49		4,745		2,144		48		532		928		952		2,699

Allstate Health and Benefits	528		2,201		16		1,832		69		1,042		136		852		1,594

Corporate and Other	—		—		—		—		96		—		—		712		—
Intersegment Eliminations (2)	—		—		—		(149)		—		—		—		(149)		—
Total	$	5,442	$	39,742	$	22,299	$	47,736	$	2,403	$	38,306	$	6,634	$	8,301	$	50,080

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	493		2,585		16		1,834		74		1,060		128		838		1,630

Corporate and Other	—		—		—		—		58		—		—		(133)		—
Intersegment Eliminations (2)	—		—		—		(175)		—		(16)		—		(159)		—
Total	$	4,738	$	35,645	$	19,833	$	44,052	$	3,293	$	30,378	$	6,236	$	7,521	$	45,630

(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.

S-6 www.allstate.com

2023 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, 2023
Life insurance in force	$	21,788	$	482	$	1,301	$	22,607	5.8	%
Premiums and contract charges:
Life insurance	$	226	$	6	$	16	$	236	6.8	%
Accident and health insurance	1,639		41		12		1,610		0.7
Property and casualty insurance	52,301		1,989		358		50,670		0.7
Total premiums and contract charges	$	54,166	$	2,036	$	386	$	52,516	0.7

Year ended December 31, 2022
Life insurance in force	$	21,271	$	614	$	1,401	$	22,058	6.4	%
Premiums and contract charges:
Life insurance	$	214	$	6	$	17	$	225	7.6	%
Accident and health insurance	1,624		31		14		1,607		0.9
Property and casualty insurance	47,552		1,869		221		45,904		0.5
Total premiums and contract charges	$	49,390	$	1,906	$	252	$	47,736	0.5

Year ended December 31, 2021
Life insurance in force	$	20,535	$	640	$	1,528	$	21,423	7.1	%
Premiums and contract charges:
Life insurance	$	160	$	7	$	15	$	168	8.9	%
Accident and health insurance	1,732		72		6		1,666		0.4
Property and casualty insurance	43,944		1,904		178		42,218		0.4
Total premiums and contract charges	$	45,836	$	1,983	$	199	$	44,052	0.5

(1)No reinsurance or coinsurance income was netted against premium ceded in 2023, 2022 or 2021.

The Allstate Corporation S-7

2023 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		Charged to costs and expenses		Other additions		Deductions		Balance as of end of period
Year ended December 31, 2023
Fixed income securities	$	13	$	23	$	—	$	—	$	36
Mortgage loans	7		4		—		—		11
Bank loans	57		18		—		53		22
Investments	77		45		—		53		69
Premium installment receivable	132		348		—		342		138
Reinsurance recoverables	65		1		—		1		65
Other assets	19		—		—		1		18
Assets	293		394		—		397		290
Commitments to fund mortgage loans and bank loans	—		1		—		—		1
Liabilities	—		1		—		—		1
Total	$	293	$	395	$	—	$	397	$	291

Valuation allowance for deferred tax assets	$	34	$	—	$	35	$	—	$	69

Year ended December 31, 2022
Fixed income securities	$	6	$	7	$	—	$	—	$	13
Mortgage loans	6		1		—		—		7
Bank loans	61		26		—		30		57
Investments	73		34		—		30		77
Premium installment receivable	107		313		—		288		132
Reinsurance recoverables	74		—		—		9		65
Other assets	26		—		—		7		19
Assets	280		347		—		334		293
Commitments to fund mortgage loans and bank loans	—		—		—		—		—
Liabilities	—		—		—		—		—
Total	$	280	$	347	$	—	$	334	$	293

Valuation allowance for deferred tax assets	$	24	$	—	$	10	$	—	$	34

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

S-8 www.allstate.com

Previous: Item 15. (a) (3)