Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Composition of income tax expense included in consolidated statement of income and shareholders' equity [Table Text Block]

The following table presents the components of income tax expense included in the amounts reported in the Company’s consolidated financial statements:

(for the year ended December 31, in millions)	2021		2020		2019
Composition of income tax expense included in the consolidated statement of income
Current expense:
Federal	$	659	$	532	$	546
Foreign	67		35		7
State	6		4		6
Total current tax expense	732		571		559
Deferred expense (benefit):
Federal	62		(29)		(33)
Foreign	2		(2)		(10)
Total deferred tax expense (benefit)	64		(31)		(43)
Total income tax expense included in the consolidated  statement of income	796		540		516
Composition of income tax expense (benefit) included  in shareholders’ equity
Expense (benefit) relating to changes in the unrealized gain (loss) on investments, unrealized loss on foreign exchange and other items in other comprehensive income (loss)	(362)		490		641
Total income tax expense included in the  consolidated financial statements	$	434	$	1,030	$	1,157

Effective tax rate [Table Text Block]

The following is a reconciliation of income tax expense at the U.S. federal statutory income tax rate to the income tax expense reported in the Company’s consolidated statement of income:

(for the year ended December 31, in millions)	2021			2020			2019
Income (loss) before income taxes
U.S.	$	4,107		$	3,095		$	3,211
Foreign	351			142			(73)
Total income before income taxes	4,458			3,237			3,138
Effective tax rate
Statutory tax rate	21		%	21		%	21		%
Expected federal income tax expense	936			680			659
Tax effect of:
Nontaxable investment income	(147)			(147)			(149)
Other, net	7			7			6
Total income tax expense	$	796		$	540		$	516
Effective tax rate	18		%	17		%	16		%

Deferred tax assets and liabilities [Table Text Block]

The net deferred tax liability comprises the tax effects of temporary differences related to the following assets and liabilities:

(at December 31, in millions)	2021		2020
Deferred tax assets
Claims and claim adjustment expense reserves	$	601	$	575
Unearned premium reserves	603		560
Compensation-related liabilities	35		110
Net operating losses	101		87
Other	152		180
Total gross deferred tax assets	1,492		1,512
Less: valuation allowance	23		21
Adjusted gross deferred tax assets	1,469		1,491
Deferred tax liabilities
Deferred acquisition costs	479		445
Investments	940		1,225
Depreciation	112		130
Other	227		249
Total gross deferred tax liabilities	1,758		2,049
Net deferred tax liability	$	289	$	558

Net operating loss amounts by jurisdiction and year of expiration [Table Text Block]

The NOL amounts by jurisdiction and year of expiration are as follows:

(in millions)	Amount		Year of  expiration
United States	$	2	2035 - 2036
Canada	$	25	2035 - 2041
Republic of Ireland	$	127	None
United Kingdom	$	328	None

Reconciliation of unrecognized tax benefits [Table Text Block]

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2021 and 2020:

(in millions)	2021		2020
Balance at January 1	$	49	$	37
Additions for tax positions of prior years	2		16
Reductions for tax positions of prior years	(3)		—
Reductions based on tax positions related to current year	—		—
Expiration of statute of limitations	—		(4)
Balance at December 31	$	48	$	49