Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities

Deferred and Current Tax Assets (Liabilities)

	As of December 31,
	2023		2022
	(in millions)
Net deferred tax assets (liabilities)	$	250	$	114
Net current tax assets (liabilities)	(9)		63

Components of Net Deferred Tax Assets (Liabilities)

	As of December 31,
	2023		2022
	(in millions)
Deferred tax assets:
Unearned premium reserves, net	$	11	$	26
Net unrealized investment losses	49		70
Intangible assets	149		—
Value of in-force business	45		—
Rent	15		18
Investments	—		4
Net operating loss	30		37
Depreciation	45		30
Deferred compensation	32		30
Other	6		28
Total deferred tax assets	382		243
Deferred tax liabilities:
Investments	65		—
DAC	12		15
Loss and LAE reserve	13		74
Lease	13		14
Other	29		21
Total deferred tax liabilities	132		124
Less: Valuation allowance	—		5
Net deferred tax assets (liabilities)	$	250	$	114

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision (benefit) for income taxes were as follows:

Current and Deferred Provision (Benefit) for Income Taxes 

	Year Ended December 31,
	2023		2022		2021
	(in millions)
Current provision (benefit) for income taxes:
Federal	$	76	$	(1)	$	88
State and local	(13)		15		8
Foreign	—		—		—
Total current	$	63	$	14	$	96
Deferred provision (benefit) for income taxes:
Federal	$	31	$	12	$	(38)
State and local	—		—		—
Foreign	(187)		(15)		—
Total deferred	(156)		(3)		(38)
Total provision (benefit) for income taxes	$	(93)	$	11	$	58

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 

	Year Ended December 31,
	2023			2022			2021
	(in millions)
Expected tax provision (benefit)	$	122		$	23		$	76
Tax-exempt interest	(15)			(14)			(19)
Return to provision adjustment	(6)			(20)			(4)
Noncontrolling interest	(5)			(3)			(8)
State taxes, net of federal benefit	(10)			12			7
Foreign taxes	11			6			8
Stock based compensation	2			5			4
Bermuda ETA	(189)			—			—
Other	(3)			2			(6)
Total provision (benefit) for income taxes	$	(93)		$	11		$	58
Effective tax rate	(13.9)		%	7.2		%	12.2		%

Pretax Income (Loss) by Tax Jurisdiction

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

Pre-tax Income (Loss) by Tax Jurisdiction

	Year Ended December 31,
	2023		2022		2021
	(in millions)
U.S.	$	622	$	189	$	378
Bermuda	79		44		115
U.K.	(25)		(69)		(8)
France	(8)		(16)		(8)
Total	$	668	$	148	$	477

Revenue by Tax Jurisdiction

Revenue by Tax Jurisdiction

	Year Ended December 31,
	2023		2022		2021
	(in millions)
U.S.	$	1,169	$	661	$	685
Bermuda	165		84		123
U.K.	37		(15)		41
France	2		(8)		(3)
Other	—		1		2
Total	$	1,373	$	723	$	848