Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

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

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

(for the year ended December 31, in millions)	2023		2022		2021
Composition of income tax expense included in the consolidated statement of income
Current expense:
Federal	$	477	$	636	$	659
Foreign	20		97		67
State	7		8		6
Total current tax expense	504		741		732
Deferred expense (benefit):
Federal	(163)		(186)		62
Foreign	39		(43)		2
Total deferred tax expense (benefit)	(124)		(229)		64
Total income tax expense included in the consolidated  statement of income	380		512		796
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)	520		(2,002)		(362)
Total income tax expense (benefit) included in the  consolidated financial statements	$	900	$	(1,490)	$	434

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)	2023			2022			2021
Income before income taxes
U.S.	$	3,122		$	3,101		$	4,107
Foreign	249			253			351
Total income before income taxes	3,371			3,354			4,458
Effective tax rate
Statutory tax rate	21		%	21		%	21		%
Expected federal income tax expense	708			704			936
Tax effect of:
Nontaxable investment income	(132)			(149)			(147)
Audit reserve	(205)			(40)			1
Other, net	9			(3)			6
Total income tax expense	$	380		$	512		$	796
Effective tax rate	11		%	15		%	18		%

Deferred tax assets and liabilities [Table Text Block]

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

(at December 31, in millions)	2023		2022
Deferred tax assets
Investments	$	532	$	999
Claims and claim adjustment expense reserves	665		660
Unearned premium reserves	772		673
Internally developed software	204		65
Other	258		293
Total gross deferred tax assets	2,431		2,690
Less: valuation allowance	35		27
Adjusted gross deferred tax assets	2,396		2,663
Deferred tax liabilities
Claims and claim adjustment expense reserve discounting (transition rule)	39		58
Deferred acquisition costs	627		539
Intangibles	70		65
Depreciation	125		105
Other	31		19
Total gross deferred tax liabilities	892		786
Net deferred tax asset	$	1,504	$	1,877

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	$	74	2035 - 2043
Republic of Ireland	$	123	None
United Kingdom	$	248	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, 2023 and 2022:

(in millions)	2023		2022
Balance at January 1	$	9	$	48
Additions for tax positions of prior years	3		3
Reductions for tax positions of prior years	—		(44)
Additions based on tax positions related to current year	3		2
Expiration of statute of limitations	(1)		—
Balance at December 31	$	14	$	9