Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Reconciliation of the change in the amount of unrecognized tax benefits

Reconciliation of the change in the amount of unrecognized tax benefits
	For the years ended December 31,
($ in millions)	2017		2016		2015
Balance – beginning of year	$	10	$	7	$	—
Increase for tax positions taken in a prior year	34		—		4
Increase for tax positions taken in the current year	11		3		3
Balance – end of year	$	55	$	10	$	7

Components of the deferred income tax assets and liabilities

Components of the deferred income tax assets and liabilities (1)
	As of December 31,
($ in millions)	2017			2016
Deferred assets
Unearned premium reserves	$	545		$	819
Accrued compensation	137			203
Pension	86			294
Discount on loss reserves	53			188
Net operating loss carryover	50			15
Other assets	49			103
Other postretirement benefits	48			64
Difference in tax bases of invested assets	—			78
Total deferred assets	968			1,764
Deferred liabilities
DAC	(770		)	(1,211		)
Unrealized net capital gains	(422		)	(529		)
Life and annuity reserves	(241		)	(324		)
Intangible assets	(113		)	(29		)
Difference in tax bases of invested assets	(106		)	—
Other liabilities	(98		)	(158		)
Total deferred liabilities	(1,750		)	(2,251		)
Net deferred liability	$	(782	)	$	(487	)

⁽¹⁾  Changes in deferred tax assets and liabilities primarily relate to the Tax Legislation.

Components of income tax expense

Components of income tax expense
	For the years ended December 31,
($ in millions)	2017			2016		2015
Current	$	1,018		$	654	$	1,033
Deferred	(216		)	223		78
Total income tax expense	$	802		$	877	$	1,111

Reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations

Reconciliation of the statutory federal income tax rate to the effective income tax rate
	For the years ended December 31,
	2017		2016		2015
Statutory federal income tax rate on income from operations	35.0	%	35.0	%	35.0	%
Tax Legislation benefit	(12.7	)	—		—
Share-based payments(1)	(1.6	)	—		—
Tax-exempt income	(0.8	)	(1.2	)	(1.0	)
Tax credits	(0.9	)	(1.2	)	(0.9	)
Non-deductible goodwill impairment	1.1		—		—
Other (2)	—		(0.7	)	0.8
Effective income tax rate on income from operations	20.1	%	31.9	%	33.9	%

⁽¹⁾  Includes a tax benefit of $63 million related to the 2017 adoption of the new accounting standard for share-based payments.

⁽²⁾  Includes $45 million of income tax expense related to the change in accounting guidance for investments in qualified affordable housing projects adopted in 2015.