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ALLSTATE CORP

For the period ended Dec 31, 2023. Filed Feb 21, 2024.

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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2023 · Filed Feb 21, 2024

ALL$253.79-0.4%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Run-off Property-Liability

2023 Form 10-KRun-off Property-Liability

Run-off Property-Liability Segment

The Run-off Property-Liability segment includes results from property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. Our exposure to asbestos, environmental and other run-off lines claims arises principally from direct excess commercial insurance, assumed reinsurance coverage, direct primary commercial insurance and other businesses in run-off. We may pursue settlement agreements including policy buybacks on direct excess commercial business when appropriate to improve the certainty of the liabilities. Settlement agreements are negotiated contracts between Allstate and third parties that generally set forth the rights and obligations of the parties, including terms of payment for claims. For additional information on our strategy and outlook, see Part I, Item 1. Business - Strategy and Segment Information.

Underwriting results
For the years ended December 31,
($ in millions)202320222021
Claims and claims expense
Asbestos claims$(44)$(34)$(63)
Environmental claims(18)(56)(40)
Other run-off lines(27)(35)(13)
Total claims and claims expense(89)(125)(116)
Operating costs and expenses(5)(4)(4)
Underwriting loss$(94)$(129)$(120)

Underwriting losses in 2023 and 2022 primarily related to our annual reserve review using established industry and actuarial best practices. The annual review resulted in unfavorable reserve reestimates totaling $80 million and $118 million in 2023 and 2022, respectively. The reserve reestimates are included as part of claims and claims expense.

The reserve reestimates in 2023 primarily related to new reported information and defense costs for asbestos and other run-off exposures and higher than expected environmental reported losses. The reserve reestimates in 2022 primarily related to new reported information and defense costs for asbestos and higher than expected reported losses for environmental and other run-off exposures.

We believe that our reserves are appropriately established based on available facts, technology, laws, regulations, and assessments of other pertinent factors and characteristics of exposure (e.g., claim activity, potential liability, jurisdiction, products versus non-products exposure) presented by individual policyholders, assuming no change in the legal, legislative or economic environment. However, as we progress with the resolution of disputed claims in the courts and arbitrations and with negotiations and settlements, our reported losses may be more variable.

Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance
($ in millions)December 31, 2023December 31, 2022
Asbestos claims
Gross reserves$1,166$1,190
Reinsurance(362)(379)
Net reserves804811
Environmental claims
Gross reserves331328
Reinsurance(64)(61)
Net reserves267267
Other run-off claims
Gross reserves445437
Reinsurance(72)(64)
Net reserves373373
Total
Gross reserves1,9421,955
Reinsurance(498)(504)
Net reserves$1,444$1,451

The Allstate Corporation 51

2023 Form 10-K Run-off Property-Liability

Reserves by type of exposure before and after the effects of reinsurance
($ in millions)December 31, 2023December 31, 2022
Direct excess commercial insurance
Gross reserves$1,114$1,106
Reinsurance(382)(385)
Net reserves732721
Assumed reinsurance coverage
Gross reserves603618
Reinsurance(54)(56)
Net reserves549562
Direct primary commercial insurance
Gross reserves140148
Reinsurance(61)(62)
Net reserves7986
Other run-off business
Gross reserves11
Reinsurance——
Net reserves11
Unallocated loss adjustment expenses
Gross reserves8482
Reinsurance(1)(1)
Net reserves8381
Total
Gross reserves1,9421,955
Reinsurance(498)(504)
Net reserves$1,444$1,451
Percentage of gross and ceded reserves by case and IBNR
December 31, 2023December 31, 2022
CaseIBNRCaseIBNR
Direct excess commercial insurance
Gross reserves (1)57%43%58%42%
Ceded (2)63376337
Assumed reinsurance coverage
Gross reserves32683169
Ceded43573367
Direct primary commercial insurance
Gross reserves59415743
Ceded83178119

(1)Approximately 68% and 64% of gross case reserves as of December 31, 2023 and December 31, 2022, respectively, are subject to settlement agreements.

(2)Approximately 72% and 70% of ceded case reserves as of December 31, 2023 and December 31, 2022, respectively, are subject to settlement agreements.

52 www.allstate.com

2023 Form 10-KRun-off Property-Liability

Gross payments from case reserves by type of exposure
($ in millions)For the years ended December 31,
20232022
Direct excess commercial insurance
Gross (1)$72$82
Ceded (2)(27)(35)
Assumed reinsurance coverage
Gross4535
Ceded(8)(3)
Direct primary commercial insurance
Gross77
Ceded—(1)

(1)In 2023 and 2022, 85% and 88% of payments related to settlement agreements, respectively.

(2)In 2023 and 2022, 83% and 94% of payments related to settlement agreements, respectively.

Total net reserves as of December 31, 2023, included $762 million or 53% of estimated IBNR reserves compared to $765 million or 53% of estimated IBNR reserves as of December 31, 2022.

Total gross payments were $124 million and $125 million for 2023 and 2022, respectively. Payments primarily related to settlement agreements reached with several insureds on large claims, mainly asbestos related losses, where the scope of coverages has been agreed upon. The claims associated with these settlement agreements are expected to be substantially paid out over the next several years as qualified claims are submitted by these insureds.

Reinsurance collections were $35 million and $37 million for 2023 and 2022, respectively. The allowance for uncollectible reinsurance recoverables was $59 million and $58 million as of December 31, 2023 and 2022, respectively. The allowance represents 10.3% and 10.0% of the related reinsurance recoverable balances as of December 31, 2023 and 2022, respectively.

The Allstate Corporation 53

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