Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities

Deferred and Current Tax Assets (Liabilities) (1)

	As of
	September 30, 2021		December 31, 2020
	(in millions)
Deferred tax assets (liabilities)	$	(53)	$	(100)
Current tax assets (liabilities)	(12)		21

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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
	2021			2020			2021			2020
	(in millions)
Expected tax provision (benefit)	$	(6)		$	19		$	16		$	50
Tax-exempt interest	(4)			(5)			(12)			(13)
Change in liability for uncertain tax positions	—			(17)			—			(17)
Effect of provision to tax return filing adjustment	(4)			(7)			(4)			(7)
State taxes, net of federal benefit	(2)			1			5			2
Foreign taxes	4			(4)			6			3
Taxes on reinsurance	(4)			4			(1)			3
Other	1			(1)			(2)			(1)
Total provision (benefit) for income taxes	$	(15)		$	(10)		$	8		$	20
Effective tax rate	(313.3)		%	(12.0)		%	6.0		%	8.4		%

Pretax Income (Loss) by Tax Jurisdiction

The following tables present pre-tax income and revenue by jurisdiction.

Pre-tax Income (Loss) by Tax Jurisdiction

	Third Quarter				Nine Months
	2021		2020		2021		2020
	(in millions)
U.S.	$	(10)	$	72	$	92	$	244
Bermuda	31		(14)		67		1
U.K.	(13)		21		(9)		(3)
Other	(3)		—		(5)		(3)
Total	$	5	$	79	$	145	$	239

Revenue by Tax Jurisdiction

Revenue by Tax Jurisdiction

	Third Quarter				Nine Months
	2021		2020		2021		2020
	(in millions)
U.S.	$	181	$	200	$	465	$	606
Bermuda	32		35		90		94
U.K.	(1)		29		29		30
Other	—		4		1		6
Total	$	212	$	268	$	585	$	736