Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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)	2020		2019		2018
Balance – beginning of year	$	70	$	70	$	55
Increase for tax positions taken in a prior year	—		—		3
Increase for tax positions taken in the current year	—		—		12
Decrease for settlements	(58)		—		—
Balance – end of year	$	12	$	70	$	70

Components of the deferred income tax assets and liabilities

Components of the deferred income tax assets and liabilities
	As of December 31,
($ in millions)	2020		2019
Deferred tax assets
Unearned premium reserves	$	659	$	642
Pension	161		197
Accrued compensation	139		147
Discount on loss reserves	79		78
Other postretirement benefits	36		49
Net operating loss carryover	23		26
Other assets	68		54
Total deferred tax assets	1,165		1,193
Deferred tax liabilities
DAC	(858)		(847)
Unrealized net capital gains	(856)		(507)
Investments	(394)		(567)
Life and annuity reserves	(216)		(222)
Intangible assets	(87)		(98)
Other liabilities	(109)		(106)
Total deferred tax liabilities	(2,520)		(2,347)
Net deferred tax liability	$	(1,355)	$	(1,154)

Components of the net operating loss carryforwards

Components of the net operating loss carryforwards as of December 31, 2020
($ in millions)	20-Year Carryforward Expires in 2025-2037		Indefinite Carryforward Period		Total
US Federal	$	36	$	8	$	44
Foreign	—		68		68
Total	$	36	$	76	$	112

Components of income tax expense

Components of income tax expense
	For the years ended December 31,
($ in millions)	2020		2019		2018
Current	$	1,499	$	991	$	704
Deferred	(116)		251		(236)
Total income tax expense	$	1,383	$	1,242	$	468

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,
($ in millions)	2020				2019				2018
Income before income taxes	$	6,959			$	6,089			$	2,628
Statutory federal income tax rate on income from operations	1,461		21.0	%	1,279		21.0	%	552		21.0	%
Tax credits	(45)		(0.7)		(33)		(0.5)		(34)		(1.3)
Share-based payments	(30)		(0.4)		(24)		(0.4)		(16)		(0.6)
Tax-exempt income	(24)		(0.3)		(27)		(0.4)		(24)		(0.9)
State income taxes	35		0.5		41		0.7		27		1.0
Tax Legislation benefit	—		—		—		—		(29)		(1.1)
Other	(14)		(0.2)		6		—		(8)		(0.3)
Effective income tax rate on income from operations	$	1,383	19.9	%	$	1,242	20.4	%	$	468	17.8	%