Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Current and Deferred Components of Income Tax Expense (Benefit)

The current and deferred components of income tax expense (benefit) are as follows:


Year Ended December 31	2022		2021		2020
(In millions)

Income tax expense (benefit):
Federal:
Current	$	241	$	239	$	43
Deferred	(5)		197		(260)
State and city:
Current	25		13		1
Deferred	15		13		13
Foreign	2		17		30
Total	$	278	$	479	$	(173)

Reconciliation between Federal Income Tax Expense at Statutory Rates and Actual Income Tax Expense (Benefit)

The components of U.S. and foreign income before income tax and a reconciliation between the federal income tax expense at statutory rates and the actual income tax expense (benefit) is as follows:


Year Ended December 31	2022		2021		2020
(In millions)

Income (loss) before income tax:
U.S.	$	1,240	$	2,058	$	(768)
Foreign	141		124		(696)
Total	$	1,381	$	2,182	$	(1,464)

Income tax expense (benefit) at statutory rate	$	290	$	458	$	(307)
Increase (decrease) in income tax expense (benefit) resulting from:

Exempt investment income	(38)		(48)		(49)
Foreign related tax differential	(15)		(2)		63
Taxes related to domestic affiliate			40
Valuation allowance	1		1		55
Unrecognized tax positions, settlements and adjustments relating to prior years					68
State taxes	36		24		4
Other	4		6		(7)
Income tax expense (benefit)	$	278	$	479	$	(173)

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding tax carryforwards and interest and penalties, is as follows:


Year Ended December 31	2022		2021		2020
(In millions)

Balance at January 1	$	—	$	2	$	121
Additions for tax positions related to the current year					68



Reduction due to deconsolidation of subsidiaries			(2)		(187)
Balance at December 31	$	—	$	—	$	2

Deferred Tax Assets and Liabilities

The following table summarizes deferred tax assets and liabilities:


December 31	2022		2021
(In millions)

Deferred tax assets:
Insurance reserves:
Property and casualty claim and claim adjustment expense reserves	$	188	$	173
Unearned premium reserves	190		193
Deferred revenue	72		71
Employee benefits	98		111
Deferred retroactive reinsurance benefit	89		90
Net operating loss carryforwards	55		29
Net unrealized losses	709


Other	147		132
Total deferred tax assets	1,548		799
Valuation allowance	(16)		(15)
Net deferred tax assets	1,532		784

Deferred tax liabilities:
Deferred acquisition costs	(113)		(99)
Net unrealized gains			(275)
Property, plant and equipment	(810)		(751)
Basis differential in investment in subsidiary	(502)		(503)
Other liabilities	(149)		(190)
Total deferred tax liabilities	(1,574)		(1,818)

Net deferred tax liabilities (a)	$	(42)	$	(1,034)
(a) Includes deferred tax assets reflected in Other assets on the Consolidated Balance Sheets at December 31, 2022 and 2021	$	201	$	45