Taxation (Tables)

12 Months Ended

Dec. 31, 2011

Taxation [Abstract]

Provision For Income Taxes

	Years Ended December 31
(in millions of U.S. dollars)	2011		2010		2009
Current tax expense	$	485	$	443	$	547
Deferred tax expense (benefit)		21		116		(19	)
Provision for income taxes	$	506	$	559	$	528

Reconciliation Of The Difference Between The Provision For Income Taxes And The Tax Provision At Statutory Income Tax Rate

	Years Ended December 31
(in millions of U.S. dollars)	2011			2010			2009
Expected tax provision at Swiss statutory tax rate	$	164		$	287		$	241
Permanent differences:
Taxes on earnings subject to rate other than Swiss statutory tax rate		323			327			319
Tax-exempt interest and dividends received deduction, net of proration		(21	)		(20	)		(25	)
Net withholding taxes		19			15			14
Change in valuation allowance		(2	)		(3	)		(48	)
Non-taxable acquisition gain		–			(61	)		–
Other		23			14			27
Total provision for income taxes	$	506		$	559		$	528

Components Of Net Deferred Tax Assets

(in millions of U.S. dollars)	December 31 2011		December 31 2010
Deferred tax assets:
Loss reserve discount	$	933	$	852
Unearned premiums reserve		85		87
Foreign tax credits		1,074		952
Investments		67		51
Provision for uncollectible balances		113		132
Loss carry-forwards		43		57
Other, net		31		114
Cumulative translation adjustment		5		2
Total deferred tax assets		2,351		2,247
Deferred tax liabilities:
Deferred policy acquisition costs		107		100
VOBA and other intangible assets		373		367
Un-remitted foreign earnings		810		718
Unrealized appreciation on investments		392		262
Total deferred tax liabilities		1,682		1,447
Valuation allowance		57		31
Net deferred tax assets	$	612	$	769

Reconciliation Of Unrecognized Tax Benefits

(in millions of U.S. dollars)	December 31 2011			December 31 2010
Balance, beginning of year	$	139		$	155
Additions based on tax positions related to the current year		1			1
Reductions for tax positions of prior years		(6	)		(17	)
Balance, end of year	$	134		$	139