Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Components of the deferred income tax assets and liabilities

The components of the deferred income tax assets and liabilities as of December 31 are as follows:



($ in millions)	2018			2017
Deferred tax assets
Deferred reinsurance gain	$	7		$	8
Other assets	1			2
Total deferred tax assets	8			10
Deferred tax liabilities
Life and annuity reserves	(223		)	(269		)
DAC	(201		)	(221		)
Investments	(131		)	(79		)
Unrealized net capital gains	(65		)	(223		)
Other liabilities	(51		)	(54		)
Total deferred tax liabilities	(671		)	(846		)
Net deferred tax liability	$	(663	)	$	(836	)

Components of income tax expense

The components of income tax expense (benefit) for the years ended December 31 are as follows:



($ in millions)	2018			2017			2016
Current	$	116		$	104		$	24
Deferred	(99		)	(382		)	120
Total income tax expense (benefit)	$	17		$	(278	)	$	144

Reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations

A reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations for the years ended December 31 is as follows:



	2018		2017		2016
Statutory federal income tax rate - expense	21.0	%	35.0	%	35.0	%
Tax Legislation benefit	(14.0	)	(71.8	)	—
Tax credits	(3.2	)	(1.7	)	(3.3	)
Dividends received deduction	(0.7	)	(0.6	)	(1.3	)
Adjustments to prior year tax liabilities	(0.3	)	(0.3	)	—
State income taxes	1.5		0.6		0.3
Non-deductible expenses	—		0.1		0.2
Other	0.1		—		0.1
Effective income tax rate expense (benefit)	4.4	%	(38.7	)%	31.0	%