Business combination fair value adjustment

Notes to Condensed Consolidated Financial Statements  


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| Reportable segments financial performance |
|  |  | Three months ended September 30, |  | Nine months ended September 30, |
| ($ in millions) |  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Underwriting income (loss) by segment |  |  |  |  |  |  |  |  |
| Allstate Protection |  | $ | (1,170) |  |  | $ | (421) |  |  | $ | (1,749) |  |  | $ | 1,670  |  |
| Run-off Property-Liability |  | (122) |  |  | (113) |  |  | (127) |  |  | (118) |  |
| Total Property-Liability  |  | (1,292) |  |  | (534) |  |  | (1,876) |  |  | 1,552  |  |
|  |  |  |  |  |  |  |  |  |
| Adjusted net income (loss) by segment, after-tax |  |  |  |  |  |  |  |  |
| Protection Services |  | 35  |  |  | 45  |  |  | 131  |  |  | 150  |  |
| Allstate Health and Benefits |  | 54  |  |  | 33  |  |  | 172  |  |  | 160  |  |
| Corporate and Other |  | (104) |  |  | (95) |  |  | (322) |  |  | (330) |  |
|  |  |  |  |  |  |  |  |  |
| Reconciling items |  |  |  |  |  |  |  |  |
| Property-Liability net investment income |  | 632  |  |  | 710  |  |  | 1,696  |  |  | 2,314  |  |
| Net gains (losses) on investments and derivatives |  | (167) |  |  | 105  |  |  | (1,167) |  |  | 818  |  |
| Pension and other postretirement remeasurement gains (losses) |  | (79) |  |  | (40) |  |  | (91) |  |  | 404  |  |
|  |  |  |  |  |  |  |  |  |
| Business combination expenses and amortization of purchased intangibles (1) |  | (29) |  |  | (34) |  |  | (86) |  |  | (124) |  |
| Business combination fair value adjustment |  | —  |  |  | —  |  |  | —  |  |  | 6  |  |
| Gain (loss) on disposition of operations |  | (5) |  |  | —  |  |  | 6  |  |  | —  |  |
| Income tax benefit (expense) on reconciling items |  | 246  |  |  | (14) |  |  | 396  |  |  | (990) |  |
| Total reconciling items |  | 598  |  |  | 727  |  |  | 754  |  |  | 2,428  |  |
|  |  |  |  |  |  |  |  |  |
| Income (loss) from discontinued operations |  | —  |  |  | 235  |  |  | —  |  |  | (3,435) |  |
| Income tax benefit from discontinued operations |  | —  |  |  | 90  |  |  | —  |  |  | 163  |  |
| Total from discontinued operations |  | $ | —  |  |  | $ | 325  |  |  | $ | —  |  |  | $ | (3,272) |  |
|  |  |  |  |  |  |  |  |  |
| Less: Net loss attributable to noncontrolling interest (2) |  | (15) |  |  | (7) |  |  | (35) |  |  | (7) |  |
|  |  |  |  |  |  |  |  |  |
| Net (loss) income applicable to common shareholders |  | $ | (694) |  |  | $ | 508  |  |  | $ | (1,106) |  |  | $ | 695  |  |

(1)Excludes amortization of purchased intangibles in Property-Liability, which is included above in underwriting income.(2)Reflects net loss attributable to noncontrolling interest in Property-Liability.Third Quarter 2022 Form 10-Q  11
