Income Taxes (Tables)

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities

Deferred and Current Tax Assets (Liabilities) (1)

	As of
	September 30, 2020		December 31, 2019
	(in millions)
Deferred tax assets (liabilities)	$	(37)	$	(17)
Current tax assets (liabilities)	25		47

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(1)     Included in other assets or other liabilities on the condensed consolidated balance sheets.

Effective Tax Rate Reconciliation

A reconciliation of the difference between the provision for income taxes and the expected tax provision at statutory rates in taxable jurisdictions is presented below.

Effective Tax Rate Reconciliation

	Third Quarter						Nine Months
	2020			2019			2020			2019
	(in millions)
Expected tax provision (benefit)	$	19		$	17		$	50		$	64
Tax-exempt interest	(5)			(5)			(13)			(15)
Change in liability for uncertain tax positions	(17)			1			(17)			1
Effect of provision to tax return filing adjustment	(7)			(6)			(7)			(6)
State taxes	1			—			2			1
Foreign taxes	(4)			6			3			11
Taxes on reinsurance	4			5			3			9
Deferred compensation	—			(1)			—			(3)
Other	(1)			—			(1)			(1)
Total provision (benefit) for income taxes	$	(10)		$	17		$	20		$	61
Effective tax rate	(12.0)		%	19.2		%	8.4		%	18.6		%

Pretax Income (Loss) by Tax Jurisdiction

The following tables present pretax income and revenue by jurisdiction.

Pretax Income (Loss) by Tax Jurisdiction

	Third Quarter				Nine Months
	2020		2019		2020		2019
	(in millions)
U.S.	$	72	$	101	$	244	$	326
Bermuda	(14)		10		1		26
U.K. and other	21		(25)		(6)		(26)
Total	$	79	$	86	$	239	$	326

Revenue by Tax Jurisdiction

Revenue by Tax Jurisdiction

	Third Quarter				Nine Months
	2020		2019		2020		2019
	(in millions)
U.S.	$	200	$	186	$	606	$	562
Bermuda	35		37		94		110
U.K. and other	33		(17)		36		(5)
Total	$	268	$	206	$	736	$	667