INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

The significant components of the provision are as follows for the periods indicated:


	Years Ended December 31,
(Dollars in millions)	2023		2022		2021
Current tax expense (benefit):
U.S.	$	284	$	95	$	102
Foreign	—		—		—
Total current tax expense (benefit)	284		95		102
Total deferred U.S. tax expense (benefit)	(74)		(207)		90
Total income tax expense (benefit)	$	210	$	(112)	$	192

Schedule of Reconciliation Of Total Income Tax Provision

A reconciliation of the total income tax provision using the statutory U.S. Federal Income tax rate to the Company’s total income tax provision is as follows for the periods indicated:


	Years Ended December 31,
(Dollars in millions)	2023		2022		2021
Expected income tax provision at the U.S. statutory tax rate	$	248	$	(117)	$	208
Increase (reduction) in taxes resulting from:
Tax exempt income	(3)		(4)		(4)
Dividend received deduction	(2)		(3)		(1)
Proration	1		1		1
Creditable foreign premium tax	(14)		(11)		(13)
Reserve adjustment	—		(19)		—
U.S. BEAT tax	—		22		—
Share based compensation	(3)		(3)		(2)
Prior year true up	(21)		16		—
Insurance company-owned life insurance	(13)		(1)		—
Other	17		7		3
Total income tax provision	$	210	$	(112)	$	192

(Some amounts may not reconcile due to rounding.)

Schedule of Net Deferred Income Tax Assets/(Liabilities)

The principal items making up the net deferred income tax assets/(liabilities) are as follows for the periods indicated:


	At December 31,
(Dollars in millions)	2023		2022
Deferred tax assets:
Loss reserves	$	154	$	154
Unearned premium reserve	143		114
Net unrealized investment losses	66		200
Depreciation	44		—
Lease Liability	27		29
Unrealized foreign currency losses	15		24
Investment impairments	12		12
Equity compensation	8		7
Amortization	7		—
Net unrecognized losses on benefit plans	4		9
Foreign tax credits	—		3
Other assets	17		12
Total deferred tax assets	497		564

Deferred tax liabilities:
Deferred acquisition costs	139		105
Net fair value income	136		141
Partnership Investments	49		56
Right of use asset	23		25
Bond market discount	9		5
Depreciation	—		16
Other liabilities	5		6
Total deferred tax liabilities	361		354

Net deferred tax assets/(liabilities)	$	136	$	210

(Some amounts may not reconcile due to rounding.)