Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

The following schedule discloses significant components of income tax expense (benefit) for each year presented:



	Year Ended December 31,
	2019			2018			2017
				(in thousands)
Current tax expense (benefit):
U.S. federal	$	14,381		$	(422,999	)	$	501,088
State and local	0			0			1,349
Total	14,381			(422,999		)	502,437
Deferred tax expense (benefit):
U.S. federal	(305,482		)	584,503			698,662
State and local	0			0			0
Total	(305,482		)	584,503			698,662
Income tax expense (benefit)	(291,101		)	161,504			1,201,099
Total income tax expense (benefit) reported in equity related to:
Other comprehensive income (loss)	200,447			(52,510		)	98,644
Additional paid-in capital	0			0			0
Total income tax expense (benefit)	$	(90,654	)	$	108,994		$	1,299,743

Schedule of Income Before Income Tax, Domestic and Foreign

The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% applicable for 2019 and 2018 and 35% applicable for 2017, and the reported income tax expense (benefit) are summarized as follows:



	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Expected federal income tax expense (benefit)	$	(268,890	)	$	387,286		$	391,158
Non-taxable investment income	(12,019		)	(18,954		)	(46,625		)
Tax credits	(11,708		)	(13,694		)	(10,358		)
Changes in tax law	0			(193,306		)	882,175
Other	1,516			172			(15,251		)
Reported income tax expense (benefit)	$	(291,101	)	$	161,504		$	1,201,099
Effective tax rate	22.7		%	8.8		%	107.5		%

Schedule of Deferred Tax Assets and Liabilities



	As of December 31,
	2019		2018
	(in thousands)
Deferred tax assets:
Insurance reserves	$	1,716,039	$	1,521,729
Investments	411,788		276,880
Net unrealized loss on securities	0		86,742
Other	2,002		638
Deferred tax assets	2,129,829		1,885,989
Deferred tax liabilities:
VOBA and deferred policy acquisition cost	929,882		929,849
Deferred sales inducements	170,672		186,816
Net unrealized gain on securities	154,815		0
Deferred tax liabilities	1,255,369		1,116,665
Net deferred tax asset (liability)	$	874,460	$	769,324