Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Reconcilliation between the Company's federal income tax (expense) benefit at statutory rates and the recorded income tax (expense) benefit

The following table presents a reconciliation between the Company's federal income tax expense at statutory rates and the recorded income tax expense.



Years ended December 31
(In millions)	2018			2017			2016
Income tax expense at statutory rates	$	(203	)	$	(459	)	$	(398	)
Tax benefit from tax exempt income	63			131			124
Foreign taxes and credits	(1		)	3			3
State income taxes	(13		)	(7		)	(6		)
Net deferred tax asset remeasurement	6			(83		)	—
Other tax expense	(3		)	4			(1		)
Income tax expense	$	(151	)	$	(411	)	$	(278	)

Current and deferred components of the Company's income tax (expense) benefit

The following table presents the current and deferred components of the Company's income tax expense.



Years ended December 31
(In millions)	2018			2017			2016
Current tax expense	$	(171	)	$	(243	)	$	(142	)
Deferred tax benefit (expense)	20			(168		)	(136		)
Total income tax expense	$	(151	)	$	(411	)	$	(278	)

Significant components of the Company's deferred tax assets and liabilities

The deferred tax effects of the significant components of the Company's deferred tax assets and liabilities are presented in the following table.



December 31
(In millions)	2018		2017
Deferred Tax Assets:
Insurance reserves:
Property and casualty claim and claim adjustment expense reserves	$	108	$	74
Unearned premium reserves	108		142
Receivables	15		15
Employee benefits	143		154
Deferred retroactive reinsurance benefit	79		68
Other assets	131		105
Gross deferred tax assets	584		558
Deferred Tax Liabilities:
Investment valuation differences	44		55
Deferred acquisition costs	78		77
Net unrealized gains	14		233
Software and hardware	44		46
Other liabilities	12		10
Gross deferred tax liabilities	192		421
Net deferred tax asset	$	392	$	137