Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of 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)	2023		2022		2021
Balance – beginning of year	$	17	$	17	$	12
Acquisitions	—		—		5
Increase for tax positions taken in a prior year	23		—		—

Increase for tax positions taken in the current year	5		—		—



Balance – end of year	$	45	$	17	$	17

Schedule of Components of the Deferred Income Tax Assets and Liabilities


Components of the deferred income tax assets and liabilities
	As of December 31,
($ in millions)	2023		2022
Deferred tax assets
Unearned premium reserves	$	897	$	815
Discount on loss reserves	269		228
Net operating loss carryover	258		97
Research & development capitalization	228		219
Unrealized net capital losses	174		609
Accrued compensation	121		128

General business credits carryover	110		—
Pension	26		10
Other postretirement benefits	13		15
Other	110		95
Total deferred tax assets before valuation allowance	2,206		2,216
Valuation allowance	(69)		(34)
Total deferred tax assets after valuation allowance	2,137		2,182
Deferred tax liabilities
DAC	(1,075)		(1,018)
Investments	(455)		(431)
Intangible assets	(99)		(147)



Other	(289)		(204)
Total deferred tax liabilities	(1,918)		(1,800)
Net deferred tax assets	$	219	$	382

Schedule of Components of the Net Operating Loss Carryforwards

The following table sets forth the amounts and expiration dates of federal, foreign, state net operating loss carryforwards and tax credit carryforwards.


Components of the net operating loss carryforwards as of December 31, 2023
($ in millions)	20-Year Carryforward Expires in 2025-2043		Indefinite		20-Year Carryforward Expires in 2043		Various
U.S. Federal NOL	$	255	$	12	$	—	$	—
Foreign NOL	—		398		—		—
State NOL (1)	—		—		—		134
U.S. Federal general business credits	—		—		110		—

(1)Multiple state net operating loss carryforwards expiring in various periods, beginning in 2029.

Schedule of Components of Income Tax Expense


Components of income tax expense
	For the years ended December 31,
($ in millions)	2023		2022		2021
Current	$	114	$	(35)	$	841
Deferred	(249)		(453)		451
Total income tax (benefit) expense	$	(135)	$	(488)	$	1,292

Schedule of Reconciliation of the Statutory Federal Income Tax Rate to the Effective Income Tax Rate


Reconciliation of the statutory federal income tax rate to the effective income tax rate
	For the years ended December 31,
($ in millions)	2023				2022				2021
(Loss) income before income taxes	$	(348)			$	(1,830)			$	6,466

Statutory federal income tax rate on income from operations	(73)		21.0	%	(384)		21.0	%	1,357		21.0	%
Tax credits	(47)		13.5		(55)		3.0		(42)		(0.6)
Tax-exempt income	(23)		6.6		(17)		0.9		(18)		(0.3)
U.S. shareholder’s tax (benefit) expense	(17)		4.9		13		(0.7)		4		0.1
Share-based payments	(14)		4.0		(22)		1.2		(18)		(0.3)
State income taxes	(7)		2.0		—		—		13		0.2
Dividend received deduction	(4)		1.1		(7)		0.4		(5)		(0.1)
Uncertain tax positions	33		(9.5)		2		(0.1)		—		—
Change in valuation allowance	6		(1.7)		10		(0.6)		(3)		(0.1)
Other	11		(3.1)		(28)		1.6		4		0.1
Effective income tax rate on income from operations	$	(135)	38.8	%	$	(488)	26.7	%	$	1,292	20.0	%