Income Tax (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Total income tax expense (benefit) is allocated as follows:

	Year Ended December 31
	2020		2019		2018
	(in millions of dollars)
Net Income	$	171.0	$	281.8	$	104.4
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss)
Change in Net Unrealized Gain on Securities Before Adjustment	250.2		757.0		(614.2)
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance	(138.2)		(511.7)		371.7
Change in Net Gain on Hedges	(23.8)		(17.0)		(8.2)
Change in Foreign Currency Translation Adjustment	(4.3)		0.2		(0.6)
Change in Unrecognized Pension and Postretirement Benefit Costs	(34.8)		(9.3)		17.0
Total	$	220.1	$	501.0	$	(129.9)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the income tax provision at the U.S. federal statutory rate to the income tax rate as reported in our consolidated statements of income is as follows:

	Year Ended December 31
	2020		2019		2018
Statutory Income Tax	21.0	%	21.0	%	21.0	%
Net Operating Loss Carryback	(3.8)		—		—
Deemed Repatriation Tax on Foreign Earnings and Profit	—		—		1.8
Tax Exempt Income	(0.8)		(0.5)		(1.3)
Tax Credits	(1.3)		(1.1)		(2.4)
Policyholder Reserves	0.7		—		(2.4)
Other Items, Net	1.9		1.0		(0.1)
Effective Tax	17.7	%	20.4	%	16.6	%

Schedule of Deferred Tax Assets and Liabilities

Our net deferred tax asset (liability) consists of the following. Certain prior year amounts have been reclassified to conform to current year reporting.

	December 31
	2020		2019
	(in millions of dollars)
Deferred Tax Asset
Reserves	$	1,279.6	$	1,154.6
Employee Benefits	218.7		201.6
Other	52.9		19.4
Gross Deferred Tax Asset	1,551.2		1,375.6
Less: Valuation Allowance	14.5		28.3
Net Deferred Tax Asset	1,536.7		1,347.3
Deferred Tax Liability
Deferred Acquisition Costs	185.5		115.6
Fixed Assets	74.7		58.5
Invested Assets	1,443.5		1,213.7
Cost of Reinsurance	180.4		10.8
Other	68.7		44.1
Gross Deferred Tax Liability	1,952.8		1,442.7
Net Deferred Tax Asset (Liability)	$	(416.1)	$	(95.4)

Schedule of Income before Income Tax, Domestic and Foreign

Our consolidated statements of income include amounts subject to both domestic and foreign taxation. The income and related tax expense (benefit) are as follows:

	Year Ended December 31
	2020		2019		2018
	(in millions of dollars)
Income Before Tax
Domestic	$	924.7	$	1,289.5	$	492.6
Foreign	39.3		92.6		135.2
Total	$	964.0	$	1,382.1	$	627.8
Current Tax Expense (Benefit)
Federal	$	(98.4)	$	273.6	$	194.6
State and Local	1.5		1.3		(0.6)
Foreign	(19.7)		(0.1)		33.4
Total	(116.6)		274.8		227.4
Deferred Tax Expense (Benefit)
Federal	250.5		(9.5)		(114.6)
State and Local	1.0		(0.1)		(0.2)
Foreign	36.1		16.6		(8.2)
Total	287.6		7.0		(123.0)
Total Tax Expense	$	171.0	$	281.8	$	104.4

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible

Our consolidated statements of income include the following changes in unrecognized tax benefits.

	December 31
	2020		2019		2018
	(in millions of dollars)
Balance at Beginning of Year	$	241.0	$	262.2	$	1.4
Increases (Decreases) for Tax Positions Related to Prior Years	(21.0)		(21.1)		261.5
Lapse of the Applicable Statute of Limitations	(0.3)		(0.1)		(0.7)
Balance at End of Year	219.7		241.0		262.2
Less Tax Attributable to Temporary Items Included Above	(105.9)		(127.1)		(148.2)
Total Unrecognized Tax Benefits That if Recognized Would Affect the Effective Tax Rate	$	113.8	$	113.9	$	114.0