ALLSTATE LIFE INSURANCE CO

CIK:0000352736|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues
Premiums (net of reinsurance ceded of $139, $138 and $149)	$ 677	$ 704	$ 690
Contract charges, Other revenue	682	695	703
Net investment income	1,411	1,585	1,777
Realized capital gains and losses:
Total other-than-temporary impairment (“OTTI”) losses	(24)	(7)	(46)
OTTI losses reclassified to (from) other comprehensive income (OCI)	3	(2)	1
Net OTTI losses recognized in earnings	(21)	(9)	(45)
Sales and valuation changes on equity investments and derivatives	362	(166)	94
Total realized capital gains and losses	341	(175)	49
Total revenues	3,153	2,847	3,259
Costs and expenses
Contract benefits (net of reinsurance ceded of $187, $249 and $208)	1,481	1,446	1,430
Interest credited to contractholder funds (net of reinsurance ceded of $40, $44 and $46)	585	601	639
Amortization of deferred policy acquisition costs	180	146	152
Operating costs and expenses	249	271	321
Restructuring and related charges	1	2	2
Interest expense	5	5	4
Total costs and expenses	2,501	2,471	2,548
Gain on disposition of operations	6	6	7
Income from operations before income tax expense	658	382	718
Income tax expense (benefit)	128	17	(278)
Net income	530	365	996
Other comprehensive income (loss), after-tax
Change in unrealized net capital gains and losses	679	(354)	5
Change in unrealized foreign currency translation adjustments	(17)	0	11
Other comprehensive income (loss), after-tax	662	(354)	16
Comprehensive income	1,192	11	1,012
Product and Service, Other [Member]
Revenues
Contract charges, Other revenue	$ 42	$ 38	$ 40

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net income	$ 530	$ 365	$ 996
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and other non-cash items	(60)	(58)	(64)
Realized capital gains and losses	(341)	175	(49)
Gain on disposition of operations	(6)	(6)	(7)
Interest credited to contractholder funds	585	601	639
Changes in:
Policy benefits and other insurance reserves	(610)	(612)	(529)
Deferred policy acquisition costs	125	67	31
Reinsurance recoverables, net	66	51	56
Income taxes	8	(64)	(308)
Other operating assets and liabilities	69	136	(159)
Net cash provided by operating activities	366	655	606
Proceeds from sales
Fixed income securities	3,800	4,858	3,916
Equity securities	984	1,257	1,536
Limited partnership interests	354	367	539
Other investments	61	39	45
Investment collections
Fixed income securities	1,355	1,448	1,733
Mortgage loans	537	434	566
Other investments	76	168	208
Investment purchases
Fixed income securities	(4,406)	(5,444)	(4,698)
Equity securities	(844)	(1,086)	(1,385)
Limited partnership interests	(398)	(551)	(631)
Mortgage loans	(532)	(552)	(503)
Other investments	(103)	(270)	(238)
Change in short-term investments, net	(343)	(3)	(12)
Change in policy loans and other investments, net	(63)	(69)	(37)
Net cash provided by investing activities	478	596	1,039
Cash flows from financing activities
Contractholder fund deposits	747	771	808
Contractholder fund withdrawals	(1,599)	(1,893)	(1,823)
Proceeds from issuance of notes to related parties	215	0	0
Repayment of notes to related parties	(141)	0	0
Dividends paid	(75)	(250)	(600)
Other	0	28	(23)
Net cash used in financing activities	(853)	(1,344)	(1,638)
Net (decrease) increase in cash	(9)	(93)	7
Cash at beginning of year	52	145	138
Cash at end of year	$ 43	$ 52	$ 145

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Investments
Fixed income securities, at fair value (amortized cost $20,217 and $21,057)	$ 21,725	$ 21,400
Mortgage loans	3,988	3,995
Equity securities	1,469	1,325
Limited partnership interests	3,250	3,292
Short-term investments	1,191	810
Policy loans	557	561
Other	1,427	1,300
Total investments	33,607	32,683
Cash	43	52
Deferred policy acquisition costs	947	1,232
Reinsurance recoverable	2,490	2,605
Accrued investment income	239	253
Other assets	794	534
Separate Accounts	3,009	2,783
Total assets	41,129	40,142
Liabilities
Contractholder funds	16,711	17,470
Reserve for life-contingent contract benefits	11,272	11,239
Unearned premiums	4	4
Payable to affiliates, net	35	50
Other liabilities and accrued expenses	1,181	1,101
Deferred income taxes	894	663
Notes due to related parties	214	140
Separate Accounts	3,009	2,783
Total liabilities	33,320	33,450
Commitments and Contingent Liabilities (Notes 7 and 11)
Shareholder’s Equity
Common stock, $227 par value, 23,800 shares authorized and outstanding	5	5
Additional capital paid-in	2,024	2,024
Retained income	4,865	4,410
Unrealized net capital gains and losses:
Unrealized net capital gains and losses on fixed income securities with OTTI	41	45
Other unrealized net capital gains and losses	1,149	225
Unrealized adjustment to DAC, DSI and insurance reserves	(268)	(27)
Total unrealized net capital gains and losses	922	243
Unrealized foreign currency translation adjustments	(7)	10
Total accumulated other comprehensive income (“AOCI”)	915	253
Total shareholder’s equity	7,809	6,692
Total liabilities and shareholder’s equity	41,129	40,142
Series A
Shareholder’s Equity
Redeemable preferred stock	0	0
Series B
Shareholder’s Equity
Redeemable preferred stock	0	0
Non-affiliate
Investments
Reinsurance recoverable	2,082	2,185
Affiliate
Investments
Reinsurance recoverable	$ 408	$ 420