Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Reconciliation 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 income tax expense at statutory rates and the recorded income tax expense.

Years ended December 31
(In millions)	2023		2022 (1)		2021 (1)
Income tax expense at statutory rates	$	(319)	$	(172)	$	(308)
Tax benefit from tax exempt income	30		41		51
Foreign taxes and credits	(5)		15		(3)
State income tax expense	(13)		(10)		(13)
Other tax expense	(6)		(6)		(5)
Income tax expense	$	(313)	$	(132)	$	(278)

(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.

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)	2023		2022 (1)		2021 (1)
Current tax expense	$	(311)	$	(221)	$	(235)
Deferred tax (expense) benefit	(2)		89		(43)
Total income tax expense	$	(313)	$	(132)	$	(278)

(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.

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)	2023		2022 (1)
Deferred Tax Assets:
Insurance reserves:
Property and casualty claim and claim adjustment expense reserves	$	202	$	178
Unearned premium reserves	213		198
Policyholder reserves	160		75
Deferred Revenue	62		64
Employee benefits	23		35
Deferred retroactive reinsurance benefit	88		89
Net unrealized losses	418		706
Other assets	111		116
Gross deferred tax assets	1,277		1,461
Deferred Tax Liabilities:
Investment valuation differences	83		59
Deferred acquisition costs	126		113
Net unrealized gains	—		—
Software and hardware	18		21
Other liabilities	34		17
Gross deferred tax liabilities	261		210
Net deferred tax asset	$	1,016	$	1,251

(1) As of January 1, 2023, the Company adopted ASU 2018-12 using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts in the financial statements have been adjusted to reflect application of the new guidance. See Note A to the Consolidated Financial Statements for additional information.