Income Taxes (tables)

12 Months Ended

Dec. 31, 2014

Income Taxes disclosure

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

(for the year ended December 31, in millions)	2014		2013			2012
Composition of income tax expense included in the consolidated statement of income
Current expense:
Federal	$	1,216	$	1,059		$	406
Foreign		28		30			45
State		10		6			3
Total current tax expense		1,254		1,095			454
Deferred expense:
Federal		121		167			223
Foreign		22		10			16
Total deferred tax expense		143		177			239
Total income tax expense included in the consolidated statement of income		1,397		1,272			693
Composition of income tax included in shareholders' equity
Expense (benefit) relating to share-based compensation, the changes in unrealized gain on investments, unrealized loss on foreign exchange and other items in other comprehensive income		68		(822	)		57
Total income tax expense included in the consolidated financial statements	$	1,465	$	450		$	750

Effective tax rate [Table Text Block]

(for the year ended December 31, in millions)	2014			2013			2012
Income before income taxes
U.S	$	4,899		$	4,804		$	2,955
Foreign		190			141			211
Total income before income taxes		5,089			4,945			3,166
Effective tax rate
Statutory tax rate		35	%		35	%		35	%
Expected federal income tax expense		1,781			1,731			1,108
Tax effect of:
Nontaxable investment income		(379	)		(409	)		(427	)
Other, net		(5	)		(50	)		12
Total income tax expense	$	1,397		$	1,272		$	693
Effective tax rate		27	%		26	%		22	%

Deferred tax assets and liabilities [Table Text Block]

(at December 31, in millions)	2014		2013
Deferred tax assets
Claims and claim adjustment expense reserves	$	768	$	825
Unearned premium reserves		709		693
Compensation-related liabilities		345		207
Other		346		356
Total gross deferred tax assets		2,168		2,081
Deferred tax liabilities
Deferred acquisition costs		565		554
Investments		1,267		931
Internally developed software		130		138
Other		173		155
Total gross deferred tax liabilities		2,135		1,778
Net deferred tax asset	$	33	$	303

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

(in millions)	Amount		Year of expiration
United States	$	15		2018
Canada		6		2033
United Kingdom		133		None

Reconciliation of unrecognized tax benefits [Table Text Block]

(in millions)	2014		2013
Balance at January 1	$	21	$	24
Additions for tax positions of prior years		2		—
Reductions for tax positions of prior years		—		(3	)
Additions based on tax positions related to current year		—		—
Balance at December 31	$	23	$	21