Allstate 2015 Annual Report Download - page 216

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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, 2014.
($ in millions)
Balance as of
December 31,
2013
Total gains (losses)
included in:
Transfers
into Level 3 Transfers out of Level 3
Net
income (1) OCI
Assets
Fixed income securities:
U.S. government and agencies $ 7 $ — $ — $ — $ —
Municipal 343 (2) 18 — (17)
Corporate 1,109 24 (14) 89 (125)
ABS 192 1 2 49 (144)
RMBS 2 — — — —
CMBS 43 (1) — 5 (4)
Redeemable preferred stock 1 — — — —
Total fixed income securities 1,697 22 6 143 (290)
Equity securities 132 22 (16) — (2)
Short‑term investments — — — — —
Free‑standing derivatives, net (5) — — — —
Other assets — 1 — — —
Assets held for sale 362 (1) 2 4 (2)
Total recurring Level 3 assets $ 2,186 $ 44 $ (8) $ 147 $ (294)
Liabilities
Contractholder funds: Derivatives
embedded in life and annuity contracts $ (307) $ (8) $ — $ — $ —
Liabilities held for sale (246) 17 — — —
Total recurring Level 3 liabilities $ (553) $ 9 $ — $ — $ —
Sold in LBL
disposition (3) Purchases/ Issues (4) Sales Settlements
Balance as of
December 31,
2014
Assets
Fixed income securities:
U.S. government and agencies $ — $ — $ — $ (1) $ 6
Municipal — 6 (74) (4) 270
Corporate — 64 (140) (116) 891
ABS — 119 — (23) 196
RMBS — — — (1) 1
CMBS 4 8 (1) (31) 23
Redeemable preferred stock — — (1) — —
Total fixed income securities 4 197 (216) (176) 1,387
Equity securities — 83 (136) — 83
Short‑term investments — 45 (40) — 5
Free‑standing derivatives, net — 2 — (4) (7) (2)
Other assets — — — — 1
Assets held for sale (351) — (8) (6) —
Total recurring Level 3 assets $ (347) $ 327 $ (400) $ (186) $ 1,469
Liabilities
Contractholder funds: Derivatives
embedded in life and annuity contracts $ — $ (14) $ — $ 6 $ (323)
Liabilities held for sale 230 (4) — 3 —
Total recurring Level 3 liabilities $ 230 $ (18) $ — $ 9 $ (323)
(1) The effect to net income totals $53 million and is reported in the Consolidated Statements of Operations as follows: $34 million in realized capital
gains and losses, $13 million in net investment income, $(5) million in interest credited to contractholder funds, $15 million in life and annuity
contract benefits and $(4) million in loss on disposition of operations.
(2) Comprises $2 million of assets and $9 million of liabilities.
(3) Includes transfers from held for sale that took place in first quarter 2014 of $4 million for CMBS and $(4) million for Assets held for sale.
(4) Represents purchases for assets and issues for liabilities.