Allstate 2012 Annual Report Download - page 131

2011 2010 2009
($ in millions, except ratios)
Effect on Effect on Effect on
Reserve combined Reserve combined Reserve combined
reestimate ratio reestimate ratio reestimate ratio
Auto $ (381) (1.5) $ (179) (0.7) $ (57) (0.2)
Homeowners (69) (0.3) (23) (0.1) (168) (0.6)
Other personal lines 94 0.4 15 0.1 89 0.3
Total Allstate Protection $ (356) (1.4) $ (187) (0.7) $ (136) (0.5)
Underwriting (loss) income $ (849) $ 526 $ 1,027
Reserve reestimates as a % of
underwriting (loss) income 41.9% 35.6% 13.2%
Auto reserve reestimates in 2011, 2010 and 2009 were primarily due to claim severity development that was better
than expected. 2010 was also impacted by a litigation settlement.
Favorable homeowners reserve reestimates in 2011 were primarily due to favorable catastrophe reserve
reestimates. Favorable homeowners reserve reestimates in 2010 were primarily due to favorable catastrophe reserve
reestimates, partially offset by a litigation settlement. Favorable homeowners reserve reestimates in 2009 were
primarily due to favorable reserve reestimates from Hurricanes Ike and Gustav and a catastrophe related subrogation
recovery.
Other personal lines reserve reestimates in 2011, 2010 and 2009 were primarily the result of loss development
higher than anticipated in previous estimates.
Pending, new and closed claims for Allstate Protection are summarized in the following table for the years ended
December 31.
Number of claims 2011 (1) 2010 2009
Auto
Pending, beginning of year 490,459 540,424 566,394
New 5,656,687 5,571,199 5,482,941
Total closed (5,710,174) (5,621,164) (5,508,911)
Pending, end of year 436,972 490,459 540,424
Homeowners
Pending, beginning of year 51,031 59,685 74,772
New 1,214,792 991,962 997,954
Total closed (1,221,689) (1,000,616) (1,013,041)
Pending, end of year 44,134 51,031 59,685
Other personal lines
Pending, beginning of year 33,388 36,537 41,001
New 333,209 282,137 278,978
Total closed (334,726) (285,286) (283,442)
Pending, end of year 31,871 33,388 36,537
Total Allstate Protection
Pending, beginning of year 574,878 636,646 682,167
New 7,204,688 6,845,298 6,759,873
Total closed (7,266,589) (6,907,066) (6,805,394)
Pending, end of year 512,977 574,878 636,646
(1) Excludes Esurance brand number of claims since not available.
We believe the net loss reserves for Allstate Protection exposures are appropriately established based on available
facts, technology, laws and regulations.
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