Income Tax (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Total income tax expense (benefit) is allocated as follows:

	Year Ended December 31
	2022		2021		2020
	(in millions of dollars)
Net Income	$	317.2	$	238.8	$	171.0
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss)
Change in Net Unrealized Gain (Loss) on Securities Before Adjustment	(1,890.8)		(346.9)		250.2
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance	1,100.8		316.8		(138.2)
Change in Net Gain (Loss) on Hedges	(19.2)		(9.8)		(23.8)
Change in Foreign Currency Translation Adjustment	(0.1)		4.2		(4.3)
Change in Unrecognized Pension and Postretirement Benefit Costs	18.9		42.1		(34.8)
Total	$	(473.2)	$	245.2	$	220.1

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the income tax provision at the U.S. federal statutory rate to the income tax rate as reported in our consolidated statements of income is as follows:

	Year Ended December 31
	2022		2021		2020
Statutory Income Tax	21.0	%	21.0	%	21.0	%
Net Operating Loss Carryback	—		(0.7)		(3.8)
Tax Exempt Income	(1.1)		(1.1)		(0.8)
Tax Credits	(0.3)		(0.9)		(1.3)
Policyholder Reserves	(1.9)		2.4		0.7
Other Items, Net	1.7		1.8		1.9
Effective Tax	19.4	%	22.5	%	17.7	%

Schedule of Deferred Tax Assets and Liabilities

Our net deferred tax asset (liability) consists of the following.

	December 31
	2022		2021
	(in millions of dollars)
Deferred Tax Asset
Invested Assets	$	664.9	$	—
Reserves	—		889.7
Employee Benefits	158.3		176.6
Other	34.4		57.5
Gross Deferred Tax Asset	857.6		1,123.8
Less: Valuation Allowance	10.3		12.7
Net Deferred Tax Asset	847.3		1,111.1
Deferred Tax Liability
Deferred Acquisition Costs	113.1		134.9
Fixed Assets	48.9		71.1
Invested Assets	—		1,144.9
Reserves	43.2		—
Cost of Reinsurance	156.8		171.6
Other	44.7		47.0
Gross Deferred Tax Liability	406.7		1,569.5
Net Deferred Tax Asset (Liability)	$	440.6	$	(458.4)

Schedule of Income before Income Tax, Domestic and Foreign

Our consolidated statements of income include amounts subject to both domestic and foreign taxation. The income and related tax expense (benefit) are as follows:

	Year Ended December 31
	2022		2021		2020
	(in millions of dollars)
Income Before Tax
Domestic	$	1,492.8	$	957.0	$	924.7
Foreign	138.6		106.0		39.3
Total	$	1,631.4	$	1,063.0	$	964.0
Current Tax Expense (Benefit)
Federal	$	306.5	$	180.7	$	(98.4)
State and Local	12.7		2.6		1.5
Foreign	154.3		29.5		(19.7)
Total	473.5		212.8		(116.6)
Deferred Tax Expense (Benefit)
Federal	20.9		13.3		250.5
State and Local	1.1		(2.2)		1.0
Foreign	(178.3)		14.9		36.1
Total	(156.3)		26.0		287.6
Total Tax Expense	$	317.2	$	238.8	$	171.0

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

Our consolidated statements of income include the following changes in unrecognized tax benefits.

	December 31
	2022		2021		2020
	(in millions of dollars)
Balance at Beginning of Year	$	198.8	$	219.7	$	241.0
Decreases for Tax Positions Related to Prior Years	(21.0)		(20.9)		(21.0)
Lapse of the Applicable Statute of Limitations	(0.4)		—		(0.3)
Balance at End of Year	177.4		198.8		219.7
Less Tax Attributable to Temporary Items Included Above	(63.5)		(84.7)		(105.9)
Total Unrecognized Tax Benefits That if Recognized Would Affect the Effective Tax Rate	$	113.9	$	114.1	$	113.8