Income Taxes (Tables)

9 Months Ended

Sep. 30, 2019

A reconciliation of the difference between the provision for income taxes and the expected tax provision at statutory rates in taxable jurisdictions is presented below.

Effective Tax Rate Reconciliation



	Third Quarter						Nine Months
	2019			2018			2019			2018
	(in millions)
Expected tax provision (benefit)	$	17		$	31		$	64		$	80
Tax-exempt interest	(5		)	(6		)	(15		)	(18		)
Change in liability for uncertain tax positions	1			(10		)	1			(16		)
Effect of provision to tax return filing adjustment	(6		)	(1		)	(6		)	(1		)
State tax	—			5			1			6
Foreign taxes	6			1			11			4
Taxes on reinsurance	5			1			9			—
Effect of adjustments to the provisional amounts as a result of 2017 Tax Cuts and Jobs Act	—			(4		)	—			(4		)
Deferred compensation	(1		)	(1		)	(3		)	(2		)
Other	—			(2		)	(1		)	(3		)
Total provision (benefit) for income taxes	$	17		$	14		$	61		$	46
Effective tax rate	19.2		%	8.3		%	18.6		%	9.7		%

Pretax Income (Loss) by Tax Jurisdiction

The following tables present pretax income and revenue by jurisdiction.

Pretax Income (Loss) by Tax Jurisdiction



	Third Quarter					Nine Months
	2019			2018		2019			2018
	(in millions)
U.S.	$	101		$	128	$	326		$	374
Bermuda	10			24		26			97
U.K. and other	(25		)	23		(26		)	8
Total	$	86		$	175	$	326		$	479

Revenue by Tax Jurisdiction



	Third Quarter					Nine Months
	2019			2018		2019			2018
	(in millions)
U.S.	$	186		$	192	$	562		$	628
Bermuda	37			47		110			135
U.K. and other	(17		)	36		(5		)	25
Total	$	206		$	275	$	667		$	788

Schedule of Deferred Tax Assets and Liabilities

Tax Assets (Liabilities)

Deferred and Current Tax Assets (Liabilities) (1)



	As of September 30, 2019			As of December 31, 2018
	(in millions)
Deferred tax assets (liabilities)	$	(24	)	$	68
Current tax assets (liabilities)	14			22

____________________

(1)

Included in other assets or other liabilities on the condensed consolidated balance sheets.