Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes

Reconciliation of the change in the amount of unrecognized tax benefits

($ in millions)	2013			2012		2011
Balance — beginning of year	$	25		$	25	$	25
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		—			—		—
Decrease for tax positions taken in the current year		—			—		—
(Decrease) increase for settlements		(26	)		—		—
Reductions due to lapse of statute of limitations		—			—		—
Balance — end of year	$	—		$	25	$	25

Components of the deferred income tax assets and liabilities

($ in millions)	2013			2012
Deferred assets
Unearned premium reserves	$	722		$	666
Discount on loss reserves		238			280
Accrued compensation		226			212
Difference in tax bases of invested assets		223			353
Sale of subsidiary		196			27
Other postretirement benefits		105			218
Pension		—			278
Alternative minimum tax credit carryforward		—			165
Other assets		96			92
Total deferred assets		1,806			2,291
Deferred liabilities
DAC		(1,077	)		(917	)
Unrealized net capital gains		(849	)		(1,527	)
Life and annuity reserves		(206	)		(130	)
Pension		(136	)		—
Other liabilities		(324	)		(314	)
Total deferred liabilities		(2,592	)		(2,888	)
Net deferred liability before classification as held for sale		(786	)		(597	)
Deferred taxes classified as held for sale		(151	)		—
Net deferred liability	$	(635	)	$	(597	)

Components of income tax expense (benefit)

($ in millions)	2013		2012		2011
Current	$	869	$	295	$	14
Deferred		247		705		158
Total income tax expense	$	1,116	$	1,000	$	172

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

	2013			2012			2011
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
Tax-exempt income		(1.8	)		(3.0	)		(13.6	)
Tax credits		(2.2	)		(1.4	)		(2.1	)
Dividends received deduction		(0.6	)		(0.5	)		(1.8	)
Sale of subsidiary		2.0			—			—
Other		0.5			0.2			0.4
Effective income tax rate		32.9	%		30.3	%		17.9	%