Income Taxes (Tables)

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Effective Tax Rate Reconciliation

Effective Tax Rate Reconciliation

	Second Quarter						Six Months
	2013			2012			2013			2012
	(in millions)
Expected tax provision (benefit) at statutory rates in taxable jurisdictions	$	124		$	191		$	76		$	(8	)
Tax-exempt interest	(15		)	(16		)	(29		)	(31		)
Change in liability for uncertain tax positions	1			1			(7		)	1
Other	0			1			2			2
Total provision (benefit) for income taxes	$	110		$	177		$	42		$	(36	)
Effective tax rate	33.5		%	32.0		%	36.4		%	25.0		%

Pretax Income (Loss) by Tax Jurisdiction

Pretax Income (Loss) by Tax Jurisdiction

	Second Quarter					Six Months
	2013			2012		2013			2012
	(in millions)
United States	$	353		$	546	$	219		$	(22	)
Bermuda	(24		)	8		(102		)	(120		)
UK	0			0		0			0
Total	$	329		$	554	$	117		$	(142	)

Revenue by Tax Jurisdiction

Revenue by Tax Jurisdiction

	Second Quarter				Six Months
	2013		2012		2013			2012
	(in millions)
United States	$	425	$	676	$	298		$	391
Bermuda	40		79		(9		)	2
UK	0		0		0			0
Total	$	465	$	755	$	289		$	393

Reconciliation of Uncertain Tax Positions

The following table provides a reconciliation of the beginning and ending balances of the total liability for unrecognized tax benefits. The balance of unrecognized tax benefits has been reduced due to the closing of an IRS audit.

	As of June 30, 2013			As of December 31, 2012
	(in millions)
Balance at the beginning of the period	$	22		$	20
Decrease due to closing of IRS audit	(9		)	—
Increase in unrecognized tax benefits as a result of position taken during the current period	2			2
Balance, end of period	$	15		$	22