Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income (loss) from operations before provision (benefit) for income taxes

	Years Ended December 31,
In millions	2020		2019		2018
Domestic	$	(578)	$	(357)	$	(287)
Foreign		—		—		(9)
Income (loss) before income taxes	$	(578)	$	(357)	$	(296)

Income tax expense (benefit) on income (loss) and shareholder' equity

	Years Ended December 31,
In millions	2020		2019		2018
Current taxes:
Federal	$	—	$	—	$	—
State		—		2		1
Deferred taxes:
Federal		—		—		(1)
Foreign		—		—		—
Provision (benefit) for income taxes		—		2		—
Income taxes charged (credited) to shareholders’ equity related to:
Change in unrealized gains (losses) on AFS securities		—		—		5
Change in AFS securities with OTTI		—		—		—
Change in foreign currency translation		—		—		—
Total income taxes charged (credited) to shareholders’ equity		—		—		5
Total effect of income taxes	$	—	$	2	$	5

Income tax rate reconciliation from statutory to effective tax rate

	Years Ended December 31,
	2020		2019		2018
Federal income tax computed at the statutory rate		21.0%		21.0%		21.0%
Increase (reduction) in taxes resulting from:
Mark-to-market on warrants		0.0%		0.0%		(0.7)%
Change in valuation allowance		(20.3)%		(20.7)%		(20.9)%
State income tax, net of federal benefit		0.0%		(0.4)%		0.0%
Deferred inventory adjustments		0.0%		0.0%		(1.0)%
Other		(0.7)%		(0.5)%		1.6%
Effective tax rate		0.0%		(0.6)%		0.0%

Deferred tax assets and liabilities

	As of
In millions	December 31, 2020		December 31, 2019
Deferred tax liabilities:
Unearned premium revenue	$	48	$	54
Deferred acquisition costs		10		13
Net unrealized gains and losses in accumulated other comprehensive income		25		—
Net deferred taxes on VIEs		53		51
Other		6		—
Total gross deferred tax liabilities		142		118
Deferred tax assets:
Compensation and employee benefits		9		8
Accrued interest		210		185
Partnership basis difference		10		10
Loss and loss adjustment expense reserves		98		101
Net operating loss		656		590
Foreign tax credits		61		61
Other-than-temporary impairments		—		2
Net unrealized gains and losses on insured derivatives		10		9
Net gains and losses on financial instruments at fair value and foreign exchange		54		21
Other		—		4
Total gross deferred tax assets		1,108		991
Valuation allowance		966		873
Net deferred tax asset	$	—	$	—