Allstate 2015 Annual Report Download - page 215

The Allstate Corporation 2015 Annual Report 209
The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis
during the year ended December 31, 2015.
($ in millions) Total gains (losses)
included in:
Balance as of
December 31,
2014
Net
income (1) OCI
Transfers
into Level 3
Transfers
out of
Level 3
Assets
Fixed income securities:
U.S. government and agencies $ 6 $ — $ — $ — $ —
Municipal 270 (4) (7) 3 (2)
Corporate ‑ public 214 — — — (175)
Corporate ‑ privately placed 677 13 (20) 13 (106)
ABS ‑ CDO 104 (1) 4 43 (52)
ABS ‑ consumer and other 92 (1) — — (98)
RMBS 1 — — — —
CMBS 23 — — — —
Total fixed income securities 1,387 7 (23) 59 (433)
Equity securities 83 (3) (5) — —
Short‑term investments 5 — — — —
Free‑standing derivatives, net (7) 1 — — —
Other assets 1 — — — —
Total recurring Level 3 assets $ 1,469 $ 5 $ (28) $ 59 $ (433)
Liabilities
Contractholder funds: Derivatives embedded
in life and annuity contracts $ (323) $ 19 $ — $ — $ —
Total recurring Level 3 liabilities $ (323) $ 19 $ — $ — $ —
Purchases Issues Sales Settlements
Balance as of
December 31,
2015
Assets
Fixed income securities:
U.S. government and agencies $ — $ — $ — $ (1) $ 5
Municipal — — (91) (8) 161
Corporate ‑ public 11 — — (4) 46
Corporate ‑ privately placed 79 — (74) (80) 502
ABS ‑ CDO — — (2) (35) 61
ABS ‑ consumer and other 70 — (5) (8) 50
RMBS — — — — 1
CMBS 12 — — (15) 20
Total fixed income securities 172 — (172) (151) 846
Equity securities 69 — (11) — 133
Short‑term investments 35 — (40) — —
Free‑standing derivatives, net — — — (1) (7) (2)
Other assets — — — — 1
Total recurring Level 3 assets $ 276 $ — $ (223) $ (152) $ 973
Liabilities
Contractholder funds: Derivatives embedded
in life and annuity contracts $ — $ (2) $ — $ 7 $ (299)
Total recurring Level 3 liabilities $ — $ (2) $ — $ 7 $ (299)
(1) The effect to net income totals $24 million and is reported in the Consolidated Statements of Operations as follows: $(8) million in realized capital gains and
losses, $13 million in net investment income, $26 million in interest credited to contractholder funds and $(7) million in life and annuity contract benefits.
(2) Comprises $1 million of assets and $8 million of liabilities.