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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of report (Date of earliest event reported): April 30, 2021
THE ALLSTATE CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware   1-11840   36-3871531
(State or other
jurisdiction of incorporation) 		  (Commission
File Number) 		  (IRS Employer
Identification No.)
 2775 Sanders Road, Northbrook, Illinois    60062
(Address of principal executive offices)    (Zip Code)
Registrant’s telephone number, including area code  (847) 402-5000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbols Name of each exchange on which registered
Common Stock, par value $0.01 per share ALL New York Stock Exchange
Chicago Stock Exchange
5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053 ALL.PR.B New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 5.625% Noncumulative Preferred Stock, Series G ALL PR G New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 5.100% Noncumulative Preferred Stock, Series H ALL PR H New York Stock Exchange
Depositary Shares represent 1/1,000th of a share of 4.750% Noncumulative Preferred Stock, Series I ALL PR I New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ____




Section 8 – Other Events

Item 8.01. Other Events. 
Attached as Exhibit 99.1 to this report is certain historical unaudited financial and other information relating to the previously announced sales of the Registrant’s subsidiaries, Allstate Life Insurance Company and Allstate Life Insurance Company of New York. These transactions are expected to close in the second half of 2021, subject to regulatory approvals and other customary closing conditions.

Section 9 – Financial Statements and Exhibits
 
Item 9.01. Financial Statements and Exhibits.
 
(d)                             Exhibits
 
Exhibit No.   Description
     
99.1  
104 Cover Page Interactive Data File (formatted as inline XBRL).



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SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
  THE ALLSTATE CORPORATION
  (Registrant)
   
   
  By: /s/ Daniel G. Gordon  
  Name: Daniel G. Gordon
  Title: Vice President, Assistant General
    Counsel and Assistant Secretary
     
Date: April 30, 2021    

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Exhibit 99.1
The Allstate Corporation and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Financial Statements
On January 26, 2021, the Company entered into a Stock Purchase Agreement with Everlake US Holdings Company (formerly Antelope US Holdings Company), an affiliate of an investment fund associated with The Blackstone Group Inc. to sell Allstate Life Insurance Company (“ALIC”) and certain affiliates for approximately $2.8 billion in cash.
On March 29, 2021, the Company entered into a Stock Purchase Agreement with Wilton Reassurance Company to sell Allstate Life Insurance Company of New York (“ALNY”) for $220 million in cash.
The combined divestitures of ALIC and ALNY is herein referred to as “the divestitures”. A loss on disposition of $4 billion, after-tax, was recorded in the first quarter of 2021 related to these transactions. The ultimate amount of the loss on these sales will be impacted by purchase price adjustments associated with certain pre-close transactions specified in the stock purchase agreements, changes in statutory capital and surplus prior to the closing dates and the closing date equity of the sold entities determined under GAAP, excluding unrealized gains and losses. The transactions are expected to close in the second half of 2021, subject to regulatory approvals and other customary closing conditions.
The divestitures are considered a material strategic shift for the Corporation as ALIC and ALNY comprised the reportable segments of Allstate Life and Allstate Annuities. The divestitures qualify as discontinued operations and all prior periods will be recast to remove Allstate Life and Allstate Annuities segment results from the Corporation’s continuing operations.
The unaudited pro forma condensed consolidated financial statements have been derived from historical financial statements prepared in accordance with U.S. generally accepted accounting principles and are:
(1)Presented based on information currently available
(2)Intended for informational purposes only
(3)Are not intended to reflect the results of operations or the financial position of the Corporation that would have resulted had the divestitures been effective as of and during the periods presented or the results that may be obtained by the Corporation in the future.

The unaudited pro forma condensed consolidated financial statements and accompanying notes give effect to the divestitures as if they occurred on December 31, 2020 for purposes of the unaudited pro forma condensed consolidated statement of financial position and January 1, 2018 for purposes of the unaudited pro forma condensed consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018. 
The unaudited pro forma condensed consolidated financial statements as of and for the years ended do not reflect future events that are not directly attributable to the divestitures and that may occur after execution of the agreement. Future results may vary significantly from the results reflected in the unaudited pro forma condensed consolidated financial statements.
The unaudited pro forma condensed consolidated financial statements, filed as Exhibit 99.1 to the Current Report on Form 8-K, should be read in conjunction with the accompanying notes. In addition, the unaudited pro forma condensed consolidated financial statements were derived in part from, and should be read in conjunction with, the historical consolidated financial statements included in the Corporation’s annual report on Form 10-K for the year ended December 31, 2020.
The unaudited pro forma condensed consolidated financial statements also include “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.
The unaudited pro forma condensed consolidated financial statements have been prepared in accordance with Regulation S-X Article 11, Pro Forma Financial Information, as amended by the final rule, Amendments to Financial Disclosures About Acquired and Disposed Businesses, as adopted by the SEC on May 21, 2020. The unaudited pro forma condensed consolidated financial statements do not include adjustments to reflect any potential synergies that may be achievable, or dis-synergy costs that may occur, in connection with the divestitures.
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The Allstate Corporation and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Statement of Financial Position
As of December 31, 2020
($ in millions, except par value data)
Historical Allstate (a)
Divestitures (b)
Transaction accounting adjustments Notes Pro forma Allstate
Assets
Investments        
Fixed income securities, at estimated fair value $ 66,354  $ (23,789) $ —  $ 42,565 
Equity securities, at estimated fair value 4,710  (1,542) —  3,168 
Mortgage loans 4,075  (3,329) —  746 
Limited partnership interests 7,609  (3,046) —  4,563 
Short-term, at estimated fair value 7,800  (993) —  6,807 
Other 3,689  (1,998) —  1,691 
Total investments 94,237  (34,697) —  59,540 
Cash 377  (66) —  311 
Premium installment receivables, net 6,479  (16) —  6,463 
Deferred policy acquisition costs 4,700  (925) —  3,775 
Reinsurance and indemnification recoverables, net 9,220  (2,005) —  7,215 
Accrued investment income 600  (229) —  371 
Property and equipment, net 1,057  —  —  1,057 
Goodwill 2,544  (175) —  2,369 
Other assets 3,429  (674) —  2,755 
Separate Accounts 3,344  (3,344) —  — 
Total assets $ 125,987  $ (42,131) $ —  $ 83,856 
Liabilities        
Reserve for property and casualty insurance claims and claims expense $ 27,610  $ —  $ —  $ 27,610 
Reserve for life-contingent contract benefits 12,768  (11,740) —  1,028 
Contractholder funds 17,213  (16,356) —  857 
Unearned premiums 15,949  (3) —  15,946 
Claim payments outstanding 957  —  —  957 
Deferred income taxes 1,355  (973) —  382 
Other liabilities and accrued expenses 8,749  (909) —  7,840 
Long-term debt 7,825  —  —  7,825 
Separate Accounts 3,344  (3,344) —  — 
Total liabilities 95,770  (33,325) —  62,445 
Shareholders’ equity        
Preferred stock and additional capital paid-in, $1 par value; $2,025 aggregate liquidation preference 1,970  —  —  1,970 
Common stock, $.01 par value 9  —  —  9 
Additional capital paid-in 3,498  (2,582) —  916 
Retained income 52,767  (5,028) —  47,739 
Treasury stock, at cost (596 million shares) (31,331) —  —  (31,331)
Accumulated other comprehensive income:  
Unrealized net capital gains and losses 3,180  (1,193) —  1,987 
Unrealized foreign currency translation adjustments (7) (3) —  (10)
Unamortized pension and other postretirement prior service credit 131  —  —  131 
Total accumulated other comprehensive income (“AOCI”) 3,304  (1,196) —  2,108 
Total shareholders’ equity 30,217  (8,806) —  21,411 
Total liabilities and shareholders’ equity $ 125,987  $ (42,131) $ —  $ 83,856 



See accompanying notes to unaudited pro forma condensed consolidated financial statements.
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The Allstate Corporation and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Statements of Operations
For the year-ended December 31, 2020
($ in millions, except par value data)
Historical Allstate (a)
Divestitures (b)
Transaction accounting adjustments Notes Pro forma Allstate
Revenues
Property and casualty insurance premiums $ 37,073  $ —  $ —  $ 37,073 
Life premiums and contract charges 2,444  (1,350) —  1,094 
Other revenue 1,065  (121) 121  (c) 1,065 
Net investment income 2,853  (1,263) —  1,590 
Realized capital gains and losses 1,356  (269) —  1,087 
Total revenues 44,791  (3,003) 121  41,909 
Costs and expenses    
Property and casualty insurance claims and claims expense 22,001  —  —  22,001 
Shelter-in-Place Payback expense 948  —  —  948 
Life contract benefits 2,243  (1,727) —  516 
Interest credited to contractholder funds 638  (605) —  33 
Amortization of deferred policy acquisition costs 5,630  (153) —  5,477 
Operating costs and expenses 5,732  (354) 116  (c) 5,494 
Pension and other postretirement remeasurement gains and losses (51) —  —  (51)
Restructuring and related charges 259  (8) 2  (c) 253 
Amortization of purchased intangibles 118  —  —  118 
Interest expense 318  —  —  318 
Total costs and expenses 37,836  (2,847) 118  35,107 
Gain on disposition of operations 4  (4) —  — 
Income from operations before income tax expense 6,959  (160) 3  6,802 
Income tax expense 1,383  (10) —  1,373 
Net income 5,576  (150) 3  5,429 
Preferred stock dividends 115  —  —  115 
Net income applicable to common shareholders $ 5,461  $ (150) $ 3  $ 5,314 
Earnings per common share      
Net income applicable to common shareholders per common share - Basic $ 17.53  $ (0.48) $ 0.01  $ 17.06 
Weighted average common shares - Basic 311.6  —  —  311.6 
Net income applicable to common shareholders per common share - Diluted $ 17.31  $ (0.48) $ 0.01  $ 16.84 
Weighted average common shares - Diluted 315.5  —  —  315.5 











See accompanying notes to unaudited pro forma condensed consolidated financial statements.

3

The Allstate Corporation and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Statements of Operations
For the year-ended December 31, 2019
($ in millions, except par value data)
Historical Allstate (a)
Divestitures (b)
Transaction accounting adjustments Notes Pro forma Allstate
Revenues
Property and casualty insurance premiums $ 36,076  $ —  $ —  $ 36,076 
Life premiums and contract charges 2,501  (1,356) —  1,145 
Other revenue 1,054  (125) 125  (c) 1,054 
Net investment income 3,159  (1,431) —  1,728 
Realized capital gains and losses 1,885  (347) —  1,538 
Total revenues 44,675  (3,259) 125  41,541 
Costs and expenses    
Property and casualty insurance claims and claims expense 23,976  —  —  23,976 
Life contract benefits 2,039  (1,438) —  601 
Interest credited to contractholder funds 640  (606) —  34 
Amortization of deferred policy acquisition costs 5,533  (180) —  5,353 
Operating costs and expenses 5,690  (383) 115  (c) 5,422 
Pension and other postretirement remeasurement gains and losses 114  —  —  114 
Restructuring and related charges 41  (3) 1  (c) 39 
Amortization of purchased intangibles 126  —  —  126 
Impairment of purchased intangibles 106  —  —  106 
Interest expense 327  —  —  327 
Total costs and expenses 38,592  (2,610) 116  36,098 
Gain on disposition of operations 6  (6) —  — 
Income from operations before income tax expense 6,089  (655) 9  5,443 
Income tax expense 1,242  (126) —  1,116 
Net income 4,847  (529) 9  4,327 
Preferred stock dividends 169  —  —  169 
Net income applicable to common shareholders $ 4,678  $ (529) $ 9  $ 4,158 
Earnings per common share      
Net income applicable to common shareholders per common share - Basic $ 14.25  $ (1.61) $ 0.03  $ 12.67 
Weighted average common shares - Basic 328.2  —  —  328.2 
Net income applicable to common shareholders per common share - Diluted $ 14.03  $ (1.59) $ 0.03  $ 12.47 
Weighted average common shares - Diluted 333.5  —  —  333.5 











See accompanying notes to unaudited pro forma condensed consolidated financial statements.

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The Allstate Corporation and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Statements of Operations
For the year-ended December 31, 2018
($ in millions, except par value data)
Historical Allstate (a)
Divestitures (b)
Transaction accounting adjustments Notes Pro forma Allstate
Revenues
Property and casualty insurance premiums $ 34,048  $ —  $ —  $ 34,048 
Life premiums and contract charges 2,465  (1,330) —  1,135 
Other revenue 939  (119) 119  (c) 939 
Net investment income 3,240  (1,601) —  1,639 
Realized capital gains and losses (877) 180  —  (697)
Total revenues 39,815  (2,870) 119  37,064 
Costs and expenses    
Property and casualty insurance claims and claims expense 22,778  —  —  22,778 
Life contract benefits 1,973  (1,378) —  595 
Interest credited to contractholder funds 654  (619) —  35 
Amortization of deferred policy acquisition costs 5,222  (139) —  5,083 
Operating costs and expenses 5,594  (392) 111  (c) 5,313 
Pension and other postretirement remeasurement gains and losses 468  —  —  468 
Restructuring and related charges 67  (3) —  64 
Amortization of purchased intangibles 105  —  —  105 
Interest expense 332  —  —  332 
Total costs and expenses 37,193  (2,531) 111  34,773 
Gain on disposition of operations 6  (6) —  — 
Income from operations before income tax expense 2,628  (345) 8  2,291 
Income tax expense 468  (9) —  459 
Net income 2,160  (336) 8  1,832 
Preferred stock dividends 148  —  —  148 
Net income applicable to common shareholders $ 2,012  $ (336) $ 8  $ 1,684 
Earnings per common share      
Net income applicable to common shareholders per common share - Basic $ 5.78  $ (0.97) $ 0.02  $ 4.83 
Weighted average common shares - Basic 347.8  —  —  347.8 
Net income applicable to common shareholders per common share - Diluted $ 5.70  $ (0.95) $ 0.02  $ 4.77 
Weighted average common shares - Diluted 353.2  —  —  353.2 













See accompanying notes to unaudited pro forma condensed consolidated financial statements.

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The Allstate Corporation and Subsidiaries
Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements
Note 1. Basis of presentation
The allocation of corporate support and expenses included may differ from expenses that would have been included on a stand-alone basis. The pro forma condensed consolidated statements of operations do not reflect the estimated loss related to the divestitures.
(a)Reflects the Corporation’s historical US GAAP condensed consolidated financial statements, as reported, before transaction accounting adjustments related to the divestitures for the years ended December 31, 2020, 2019 and 2018.
(b)Reflects the ALIC and ALNY historical results, and comprised the reportable segments of Allstate Life and Allstate Annuities, for the years ended December 31, 2020, 2019 and 2018.
Note 2. Transaction accounting adjustments
(c)Represents income received and operating expenses incurred in connection with sales of non-proprietary life and annuity products offered by Allstate exclusive agents and exclusive financial specialist. This business will remain at the Corporation.
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