Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components Of Deferred Tax Assets And Liabilities

The significant components of deferred tax assets and liabilities included in the consolidated balance sheets at December 31 were as follows:

(Dollars in millions)	At December 31,
	2023		2022
Deferred tax assets:
Unearned premiums	$	165	$	148
Loss and loss expense reserves	120		106
Net operating loss on international earnings	26		28
Deferred international earnings	—		16
Other	70		55
Deferred tax assets before valuation allowance	381		353
Valuation allowance for international operations	—		31
Deferred tax assets net of valuation allowance	381		322
Deferred tax liabilities:
Investment gains and other, net	1,290		992
Deferred acquisition costs	184		171
Life policy reserves	104		121
Deferred international earnings	21		—
Investments	35		31
Other	71		61
Total gross deferred tax liabilities	1,705		1,376
Net deferred income tax liability	$	1,324	$	1,054

Schedule of Income before Income Tax

For financial reporting purposes, income (loss) before income taxes includes the following components:

(Dollars in millions)	For the years ended December 31,
	2023		2022		2021
United States	$	2,195	$	(719)	$	3,672
International	81		25		26
Total income (loss) before income taxes	$	2,276	$	(694)	$	3,698

Schedule of The Provision (Benefit) of Income Taxes

The provision (benefit) for income taxes consists of:

(Dollars in millions)	For the years ended December 31,
	2023		2022		2021
Provision (benefit) for income taxes:
Current – United States federal	$	209	$	148	$	248
International	1		—		(1)
Total current	210		148		247
Deferred – United States federal	216		(355)		483
International	7		—		—
Total deferred	223		(355)		483
Total provision (benefit) for income taxes	$	433	$	(207)	$	730

Differences Between The 35 Percent Statutory Income Tax Rate And Effective Income Tax Rate

The differences between the 21% statutory federal income tax rate and our effective income tax rate were as follows:

(Dollars in millions)	Years ended December 31,
	2023				2022				2021
Tax at statutory rate:	$	478	21.0	%	$	(146)	21.0	%	$	777	21.0	%
Increase (decrease) resulting from:
Tax-exempt income from municipal bonds	(21)		(0.9)		(20)		2.9		(20)		(0.5)
Dividend received exclusion	(22)		(1.0)		(21)		3.0		(20)		(0.5)
Release of unrecognized tax benefit	—		—		(34)		4.9		—		—
Other	(2)		(0.1)		14		(2.0)		(7)		(0.3)
Provision (benefit) for income taxes	$	433	19.0	%	$	(207)	29.8	%	$	730	19.7	%

Reconciliation of Cincinnati Global Valuation Allowance

The following is a tabular reconciliation of the total amounts of our Cincinnati Global valuation allowance:

(Dollars in millions)	Years ended December 31,
		2023		2022		2021
Valuation allowance, January 1		$	31	$	53	$	56
Current year operations		(31)		(22)		(3)
Valuation allowance, December 31		$	—	$	31	$	53