Allstate 2008 Annual Report Download - page 141

Management’s Discussion and Analysis
of Financial Condition and Results of Operations–(Continued)
A reconciliation of premiums written to premiums earned for the years ended December 31 is presented in
the following table.
2008 2007 2006
($ in millions)
Premiums written:
Allstate Protection $26,584 $27,183 $27,525
Discontinued Lines and Coverages — — 1
Property-Liability premiums written 26,584 27,183 27,526
Decrease (increase) in unearned premiums(1) 383 17 (354)
Other(1) — 33 197
Property-Liability premiums earned $26,967 $27,233 $27,369
Premiums earned:
Allstate Protection $26,967 $27,232 $27,366
Discontinued Lines and Coverages — 1 3
Property-Liability $26,967 $27,233 $27,369
(1) Year ended December 31, 2008 includes $44 million in unearned premiums related to June 27, 2008 acquisition of Partnership Marketing
Group. Year ended December 31, 2006 includes the transfer at January 1, 2006 of $152 million in unearned premiums to Property-
Liability related to the loan protection business previously managed by Allstate Financial.
Premiums written by brand are shown in the following table.
Allstate brand Encompass brand Allstate Protection
2008 2007 2006 2008 2007 2006 2008 2007 2006
($ in millions)
Standard auto(1) $15,918 $16,035 $15,704 $1,025 $1,125 $1,138 $16,943 $17,160 $16,842
Non-standard auto(1) 1,018 1,179 1,386 40 68 94 1,058 1,247 1,480
Homeowners 5,639 5,711 5,926 471 538 589 6,110 6,249 6,515
Other personal lines 2,358 2,397 2,548 115 130 140 2,473 2,527 2,688
Total $24,933 $25,322 $25,564 $1,651 $1,861 $1,961 $26,584 $27,183 $27,525
(1) 2007 includes the impact from the fourth quarter 2007 discontinuation and reinstatement of mandatory personal injury protection in the
state of Florida.
Premiums earned by brand are shown in the following table.
Allstate brand Encompass brand Allstate Protection
2008 2007 2006 2008 2007 2006 2008 2007 2006
($ in millions)
Standard auto $15,957 $15,952 $15,591 $1,091 $1,127 $1,160 $17,048 $17,079 $16,751
Non-standard auto 1,055 1,232 1,436 45 76 98 1,100 1,308 1,534
Homeowners 5,758 5,732 5,793 503 551 590 6,261 6,283 6,383
Other personal lines 2,434 2,426 2,546 124 136 152 2,558 2,562 2,698
Total $25,204 $25,342 $25,366 $1,763 $1,890 $2,000 $26,967 $27,232 $27,366
Premium operating measures and statistics that are used to analyze the business are calculated and
described below. Measures and statistics presented for Allstate brand exclude Allstate Canada, loan protection
and specialty auto.
●PIF: Policy counts are based on items rather than customers. A multi-car customer would generate multiple
item (policy) counts, even if all cars were insured under one policy.
●Average premium-gross written: Gross premiums written divided by issued item count. Gross premiums
written do not include the impacts from mid-term premium adjustments, ceded reinsurance premiums, or
premium refund accruals. Allstate brand average gross premiums represent the appropriate policy term for
each line, which is 6 months for standard and non-standard auto and 12 months for homeowners.
Encompass brand average gross premiums represent the appropriate policy term for each line, which is
12 months for standard auto and homeowners and 6 months for non-standard auto.
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MD&A