ALLSTATE CORP
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Run-off Property-Liability
Run-off Property-Liability Segment Results
Run-off Property-Liability Segment
| Underwriting results | ||||
|---|---|---|---|---|
| ($ in millions) | Three months ended June 30, | Six months ended June 30, | ||
| 2024 | 2023 | 2024 | 2023 | |
| Claims and claims expense | $(2) | $(1) | $(6) | $(3) |
| Operating costs and expenses | (1) | (1) | (2) | (2) |
| Underwriting income (loss) | $(3) | $(2) | $(8) | $(5) |
| Reserves for asbestos, environmental and other run-off claims before and after the effects of reinsurance | ||
|---|---|---|
| ($ in millions) | June 30, 2024 | December 31, 2023 |
| Asbestos claims | ||
| Gross reserves | $1,132 | $1,166 |
| Reinsurance | (350) | (362) |
| Net reserves | 782 | 804 |
| Environmental claims | ||
| Gross reserves | 322 | 331 |
| Reinsurance | (63) | (64) |
| Net reserves | 259 | 267 |
| Other run-off claims | ||
| Gross reserves | 425 | 445 |
| Reinsurance | (66) | (72) |
| Net reserves | 359 | 373 |
| Total | ||
| Gross reserves | 1,879 | 1,942 |
| Reinsurance | (479) | (498) |
| Net reserves | $1,400 | $1,444 |
| Reserves by type of exposure before and after the effects of reinsurance | ||
|---|---|---|
| ($ in millions) | June 30, 2024 | December 31, 2023 |
| Direct excess commercial insurance | ||
| Gross reserves | $1,082 | $1,114 |
| Reinsurance | (370) | (382) |
| Net reserves | 712 | 732 |
| Assumed reinsurance coverage | ||
| Gross reserves | 576 | 603 |
| Reinsurance | (53) | (54) |
| Net reserves | 523 | 549 |
| Direct primary commercial insurance | ||
| Gross reserves | 136 | 140 |
| Reinsurance | (55) | (61) |
| Net reserves | 81 | 79 |
| Other run-off business | ||
| Gross reserves | 1 | 1 |
| Reinsurance | — | — |
| Net reserves | 1 | 1 |
| Unallocated loss adjustment expenses | ||
| Gross reserves | 84 | 84 |
| Reinsurance | (1) | (1) |
| Net reserves | 83 | 83 |
| Total | ||
| Gross reserves | 1,879 | 1,942 |
| Reinsurance | (479) | (498) |
| Net reserves | $1,400 | $1,444 |
Second Quarter 2024 Form 10-Q 59
Segment Results Run-off Property-Liability
| Percentage of gross and ceded reserves by case and incurred but not reported (“IBNR”) | ||||
|---|---|---|---|---|
| June 30, 2024 | December 31, 2023 | |||
| Case | IBNR | Case | IBNR | |
| Direct excess commercial insurance | ||||
| Gross reserves (1) | 62% | 38% | 57% | 43% |
| Ceded (2) | 65 | 35 | 63 | 37 |
| Assumed reinsurance coverage | ||||
| Gross reserves | 31 | 69 | 32 | 68 |
| Ceded | 39 | 61 | 43 | 57 |
| Direct primary commercial insurance | ||||
| Gross reserves | 58 | 42 | 59 | 41 |
| Ceded | 87 | 13 | 83 | 17 |
(1)Approximately 64% and 68% of gross case reserves as of June 30, 2024 and December 31, 2023, respectively, are subject to settlement agreements.
(2)Approximately 70% and 72% of ceded case reserves as of June 30, 2024 and December 31, 2023, respectively, are subject to settlement agreements.
| Gross payments from case reserves by type of exposure | ||||
|---|---|---|---|---|
| ($ in millions) | Three months ended June 30, | Six months ended June 30, | ||
| 2024 | 2023 | 2024 | 2023 | |
| Direct excess commercial insurance | ||||
| Gross (1) | $16 | $9 | $32 | $32 |
| Ceded (2) | (7) | (4) | (13) | (9) |
| Assumed reinsurance coverage | ||||
| Gross | 21 | 14 | 27 | 19 |
| Ceded | (2) | (2) | (2) | (3) |
| Direct primary commercial insurance | ||||
| Gross | 2 | 1 | 3 | 2 |
| Ceded | (1) | — | (1) | — |
(1)In the second quarter and first six months of 2024 87% and 86% of payments related to settlement agreements, respectively, compared to 79% and 85% of the second quarter and first six months of 2023, respectively.
(2)In the second quarter and first six months of 2024 96% and 93% of payments related to settlement agreements, respectively, compared to 74% and 87% of the second quarter and first six months of 2023, respectively.
Total net reserves as of June 30, 2024, included $698 million or 50% of estimated IBNR reserves compared to $762 million or 53% of estimated IBNR reserves as of December 31, 2023.
Total gross payments were $39 million and $62 million for the second quarter and first six months of 2024, respectively, compared to $24 million and $53 million for the second quarter and first six months of 2023, 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 $15 million and $26 million for the second quarter and first six months of 2024, respectively, compared to $9 million and $24 million for the second quarter and first six months of 2023, respectively.
60 www.allstate.com
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