Net cash used in investing activities from discontinued operations

Notes to Condensed Consolidated Financial Statements  


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|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Financial results from discontinued operations |  |  |  |  |  |  |
|  |  |  |  | Three months ended September 30, |  |  |  | Nine months ended September 30, |
| ($ in millions) |  |  |  | 2021 |  |  |  | 2021 |
| Revenues |  |  |  |  |  |  |  |  |
| Life premiums and contract charges |  |  |  | $ | 331  |  |  |  |  | $ | 1,007  |  |
| Net investment income |  |  |  | 427  |  |  |  |  | 1,251  |  |
| Net gains (losses) on investments and derivatives |  |  |  | 4  |  |  |  |  | 193  |  |
| Total revenues |  |  |  | 762  |  |  |  |  | 2,451  |  |
|  |  |  |  |  |  |  |  |  |
| Costs and expenses |  |  |  |  |  |  |  |  |
| Life contract benefits |  |  |  | 411  |  |  |  |  | 1,207  |  |
| Interest credited to contractholder funds  |  |  |  | 127  |  |  |  |  | 371  |  |
| Amortization of DAC |  |  |  | 27  |  |  |  |  | 84  |  |
| Operating costs and expenses |  |  |  | 45  |  |  |  |  | 151  |  |
| Restructuring and related charges |  |  |  | 7  |  |  |  |  | 30  |  |
| Total costs and expenses |  |  |  | 617  |  |  |  |  | 1,843  |  |
|  |  |  |  |  |  |  |  |  |
| Amortization of deferred gain on reinsurance |  |  |  | 1  |  |  |  |  | 5  |  |
|  |  |  |  |  |  |  |  |  |
| Income from discontinued operations before income tax expense |  |  |  | 146  |  |  |  |  | 613  |  |
|  |  |  |  |  |  |  |  |  |
| Income tax expense |  |  |  | 38  |  |  |  |  | 131  |  |
|  |  |  |  |  |  |  |  |  |
| Income from discontinued operations, net of tax |  |  |  | 108  |  |  |  |  | 482  |  |
|  |  |  |  |  |  |  |  |  |
| Loss on disposition of operations |  |  |  | 89  |  |  |  |  | (4,048) |  |
| Income tax benefit |  |  |  | (128) |  |  |  |  | (294) |  |
| Loss on disposition of operations, net of tax |  |  |  | 217  |  |  |  |  | (3,754) |  |
|  |  |  |  |  |  |  |  |  |
| Income (loss) from discontinued operations, net of tax |  |  |  | $ | 325  |  |  |  |  | $ | (3,272) |  |



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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |
| Cash flows from discontinued operations |  |  |
|  |  | Nine months ended September 30, |  |  |
| ($ in millions) |  | 2021 |  |  |
| Net cash provided by operating activities from discontinued operations |  | $ | 888  |  |  |  |
| Net cash used in investing activities from discontinued operations |  | (405) |  |  |  |



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| Note 4 | Reportable Segments |

Measuring segment profit or lossThe measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services, Allstate Health and Benefits and Corporate and Other segments. National General results are included in the following segments:•Property and casualty - Allstate Protection•Accident and health - Allstate Health and Benefits•Technology solutions - Protection ServicesUnderwriting income is calculated as premiums earned and other revenue, less claims and claims expenses (“losses”), Shelter-in-Place Payback expense, amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges as determined using GAAP.Adjusted net income is net income (loss) applicable to common shareholders, excluding:

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| • | Net gains and losses on investments and derivatives |
| • | Pension and other postretirement remeasurement gains and losses |
| • | Business combination expenses and the amortization or impairment of purchased intangibles |
| • | Income or loss from discontinued operations |
| • | Gain or loss on disposition of operations |
| • | Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years |
| • | Income tax expense or benefit on reconciling items |

A reconciliation of these measures to net income (loss) applicable to common shareholders is provided below.10 www.allstate.com
