Federal and Foreign Income Tax (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Expense and Taxes Paid

Income tax expense and taxes paid consisted of the following components:

	Years Ended December 31
	2014		2013		2012
	(in millions)
Income tax expense
Current tax
United States	$	617	$	791	$	276
Foreign		124		91		143
Deferred tax, principally United States		20		10		32
	$	761	$	892	$	451
Federal and foreign income taxes paid	$	571	$	789	$	472

Reconciliation of Effective Income Tax Rate and Statutory Federal Corporate Tax Rate

The effective income tax rate is different than the statutory federal corporate tax rate. The reasons for the different effective tax rate were as follows:

	Years Ended December 31
	2014						2013						2012
	Amount			% of Pre-Tax Income			Amount			% of Pre-Tax Income			Amount			% of Pre-Tax Income
	(in millions)
Income before federal and foreign income tax	$	2,861					$	3,237					$	1,996
Tax at statutory federal income tax rate	$	1,001			35.0	%	$	1,133			35.0	%	$	699			35.0	%
Tax exempt interest income		(212	)		(7.4	)		(222	)		(6.8	)		(233	)		(11.7	)
Other, net		(28	)		(1.0	)		(19	)		(.6	)		(15	)		(.7	)
Federal and foreign income tax	$	761			26.6	%	$	892			27.6	%	$	451			22.6	%

Tax Effects of Temporary Differences that Gave Rise to Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities were as follows:

	December 31
	2014			2013
	(in millions)
Deferred income tax assets
Unpaid losses and loss expenses	$	509		$	524
Unearned premiums		364			350
Foreign tax credits		963			867
Employee compensation		144			142
Postretirement benefits		272			95
Other-than-temporary impairment losses		298			291
Other, net		29			—
Total		2,579			2,269
Deferred income tax liabilities
Deferred policy acquisition costs		367			356
Unremitted earnings of foreign subsidiaries		1,075			970
Unrealized appreciation of investments		944			660
Other invested assets		208			184
Other, net		—			52
Total		2,594			2,222
Net deferred income tax asset (liability)	$	(15	)	$	47