Taxation (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of components of income tax provision

The following table presents pre-tax income and the related provision for income taxes:

	Year Ended December 31
(in millions of U.S. dollars)	2021		2020		2019
Pre-tax income:
Switzerland	$	349	$	350	$	440
Outside Switzerland	9,467		3,812		4,809
Total pre-tax income	$	9,816	$	4,162	$	5,249
Provision for income taxes
Current tax expense:
Switzerland	$	65	$	52	$	29
Outside Switzerland	1,294		876		879
Total current tax expense	1,359		928		908
Deferred tax expense (benefit):
Switzerland	(15)		2		11
Outside Switzerland	(67)		(301)		(124)
Total deferred tax expense (benefit)	(82)		(299)		(113)
Provision for income taxes	$	1,277	$	629	$	795

Reconciliation schedule of the difference between the provision for income taxes and the expected tax provision at the Swiss statutory income tax rate

The following table presents a reconciliation of the difference between the provision for income taxes and the expected tax provision at the Swiss statutory income tax rate:

	Year Ended December 31
(in millions of U.S. dollars)	2021		2020		2019
Expected tax provision at Swiss statutory tax rate	$	1,934	$	880	$	411
Permanent differences:
Taxes on earnings subject to rate other than Swiss statutory rate	(740)		(337)		376
Tax-exempt interest and dividends received deduction, net of proration	(38)		(41)		(49)
Net withholding taxes	78		67		40
Other	43		60		17
Provision for income taxes	$	1,277	$	629	$	795

Schedule of the components of net deferred tax assets

The following table presents the components of net deferred tax assets and liabilities:

	December 31
(in millions of U.S. dollars)	2021		2020
Deferred tax assets:
Loss reserve discount	$	950	$	884
Unearned premiums reserve	544		496
Foreign tax credits	156		222
Provision for uncollectible balances	32		46
Loss carry-forwards	139		123
Debt related amounts	70		69
Compensation related amounts	178		281
Cumulative translation adjustments	28		120
Investments	—		75
Lease liability	111		121
Depreciation	190		—
Total deferred tax assets	2,398		2,437
Deferred tax liabilities:
Deferred policy acquisition costs	679		522
Other intangible assets, including VOBA	1,268		1,425
Un-remitted foreign earnings	121		77
Investments	144		—
Unrealized appreciation on investments	360		957
Depreciation	—		123
Lease right-of-use asset	100		111
Other, net	23		31
Total deferred tax liabilities	2,695		3,246
Valuation allowance	92		83
Net deferred tax liabilities	$	(389)	$	(892)

Reconciliation schedule of unrecognized tax benefits

The following table presents a reconciliation of the beginning and ending amount of gross unrecognized tax benefits:

	Year Ended December 31
(in millions of U.S. dollars)	2021		2020
Balance, beginning of year	$	76	$	47
Additions based on tax positions related to the current year	—		5
Additions based on tax positions related to prior years	7		24
Reductions for settlements with taxing authorities	(19)		—
Balance, end of year	$	64	$	76

Summary of Income Tax Examinations [Table Text Block]

The following table summarizes tax years open for examination by major income tax jurisdiction:

At December 31, 2021
Australia	2015	-	2021
Canada	2012	-	2021
France	2019	-	2021
Germany	2015	-	2021
Italy	2011	-	2021
Mexico	2014	-	2021
Spain	2012	-	2021
Switzerland	2016	-	2021
United Kingdom	2015	-	2021
United States	2014	-	2021