Allstate 2014 Annual Report Download - page 147

Application of Critical Accounting Estimates section of the MD&A. These reserves are an estimate of amounts
necessary to settle all outstanding claims, including IBNR claims, as of the reporting date.
The facts and circumstances leading to our reestimates of reserves relate to revisions to the development factors
used to predict how losses are likely to develop from the end of a reporting period until all claims have been paid.
Reestimates occur because actual losses are likely different than those predicted by the estimated development factors
used in prior reserve estimates. As of December 31, 2014, the impact of a reserve reestimation corresponding to a one
percent increase or decrease in net reserves would be a decrease or increase of approximately $112 million in net income
available to common shareholders.
We believe the net loss reserves for Allstate Protection exposures are appropriately established based on available
facts, technology, laws and regulations.
The table below shows total net reserves as of December 31 by line of business.
($ in millions) 2014 2013 2012
Allstate brand $ 14,214 $ 14,225 $ 14,364
Esurance brand 649 575 470
Encompass brand 754 747 807
Total Allstate Protection 15,617 15,547 15,641
Discontinued Lines and Coverages 1,612 1,646 1,637
Total Property-Liability $ 17,229 $ 17,193 $ 17,278
The tables below show reserves, net of reinsurance, representing the estimated cost of outstanding claims as they
were recorded at the beginning of years 2014, 2013 and 2012 and the effect of reestimates in each year.
January 1 reserves
($ in millions)
2014 2013 2012
Allstate brand $ 14,225 $ 14,364 $ 14,792
Esurance brand 575 470 429
Encompass brand 747 807 859
Total Allstate Protection 15,547 15,641 16,080
Discontinued Lines and Coverages 1,646 1,637 1,707
Total Property-Liability $ 17,193 $ 17,278 $ 17,787
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