Allstate 2014 Annual Report Download - page 159

Summary analysis Summarized financial data for the years ended December 31 is presented in the following
table.
($ in millions) 2014 2013 2012
Revenues
Life and annuity premiums and contract charges $ 2,157 $ 2,352 $ 2,241
Net investment income 2,131 2,538 2,647
Realized capital gains and losses 144 74 (13)
Total revenues 4,432 4,964 4,875
Costs and expenses
Life and annuity contract benefits (1,765) (1,917) (1,818)
Interest credited to contractholder funds (919) (1,278) (1,316)
Amortization of DAC (260) (328) (401)
Operating costs and expenses (466) (565) (576)
Restructuring and related charges (2) (7) —
Total costs and expenses (3,412) (4,095) (4,111)
(Loss) gain on disposition of operations (90) (687) 18
Income tax expense (299) (87) (241)
Net income available to common shareholders $ 631 $ 95 $ 541
Life insurance $ 242 $ 15 $ 226
Accident and health insurance 105 87 81
Annuities and institutional products 284 (7) 234
Net income available to common shareholders $ 631 $ 95 $ 541
Allstate Life $ 232 $ 2 $ 224
Allstate Benefits 115 100 83
Allstate Annuities 284 (7) 234
Net income available to common shareholders $ 631 $ 95 $ 541
Investments as of December 31 $ 38,809 $ 39,105 $ 56,999
Investments classified as held for sale as of
December 31 — 11,983 —
Net income available to common shareholders was $631 million in 2014 compared to $95 million in 2013. The increase
primarily relates to lower loss on disposition charges related to the LBL sale, partially offset by the reduction in business
due to the sale of LBL on April 1, 2014. Net income available to common shareholders in 2014 and 2013 included an
after-tax loss on disposition of LBL totaling $60 million and $521 million, respectively. Excluding the loss on disposition
as well as the net income of the LBL business for second through fourth quarter 2013 of $116 million, net income
available to common shareholders increased $191 million in 2014 compared to 2013, primarily due to lower interest
credited to contractholder funds, higher net realized capital gains, lower operating costs and expenses, lower
amortization of DAC, and higher life and annuity premiums and contract charges, partially offset by higher life and
annuity contract benefits and lower net investment income.
Net income available to common shareholders was $95 million in 2013 compared to $541 million in 2012. The
decrease was primarily due to the estimated loss on disposition related to the pending LBL sale, lower net investment
income and higher life and annuity contract benefits, partially offset by higher life and annuity premiums and contract
charges, net realized capital gains in 2013 compared to net realized capital losses in 2012 and decreased amortization of
DAC.
Analysis of revenues Total revenues decreased 10.7% or $532 million in 2014 compared to 2013. Excluding
results of the LBL business for second through fourth quarter 2013 of $651 million, total revenues increased 2.8% or
$119 million in 2014 compared to 2013, due to higher net realized capital gains and higher life and annuity premiums and
contract charges, partially offset by lower net investment income. Total revenues increased 1.8% or $89 million in 2013
compared to 2012, primarily due to higher life and annuity premiums and contract charges and net realized capital gains
in 2013 compared to net realized capital losses in 2012, partially offset by lower net investment income.
Life and annuity premiums and contract charges Premiums represent revenues generated from traditional life
insurance, immediate annuities with life contingencies, and accident and health insurance products that have significant
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