Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Reconciliation of the change in the amount of unrecognized tax benefits

($ in millions)	2012		2011		2010
Balance — beginning of year	$	25	$	25	$	22
Increase for tax positions taken in a prior year		—		—		1
Decrease for tax positions taken in a prior year		—		—		—
Increase for tax positions taken in the current year		—		—		2
Decrease for tax positions taken in the current year		—		—		—
(Decrease) increase for settlements		—		—		—
Reductions due to lapse of statute of limitations		—		—		—
Balance — end of year	$	25	$	25	$	25

Components of the deferred income tax assets and liabilities

($ in millions)	2012			2011
Deferred assets
Unearned premium reserves	$	666		$	656
Difference in tax bases of invested assets		353			564
Discount on loss reserves		280			315
Pension		278			255
Other postretirement benefits		218			188
Accrued compensation		212			213
Alternative minimum tax credit carryforward		165			255
Net operating loss carryforwards		64			203
Life and annuity reserves		—			10
Other assets		55			84
Total deferred assets		2,291			2,743
Valuation allowance		—			(67	)
Net deferred assets		2,291			2,676
Deferred liabilities
Unrealized net capital gains		(1,527	)		(757	)
DAC		(917	)		(897	)
Life and annuity reserves		(130	)		—
Other intangible assets		(107	)		(142	)
Other liabilities		(207	)		(158	)
Total deferred liabilities		(2,888	)		(1,954	)
Net deferred (liability) asset	$	(597	)	$	722

Components of income tax expense (benefit)

($ in millions)	2012		2011		2010
Current	$	295	$	14	$	133
Deferred		705		158		56
Total income tax expense	$	1,000	$	172	$	189

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

	2012			2011			2010
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
Tax-exempt income		(3.0	)		(13.6	)		(16.1	)
Tax credits		(1.4	)		(2.1	)		(0.5	)
Dividends received deduction		(0.5	)		(1.8	)		(1.5	)
Adjustment to prior year tax liabilities		(0.1	)		(0.8	)		(0.2	)
Other		0.3			1.2			0.5
Effective income tax rate		30.3	%		17.9	%		17.2	%