Income Tax (Tables)

12 Months Ended

Dec. 31, 2021

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
	2021		2020		2019
	(in millions of dollars)
Net Income	$	238.8	$	171.0	$	281.8
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss)
Change in Net Unrealized Gain on Securities Before Adjustment	(346.9)		250.2		757.0
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance	316.8		(138.2)		(511.7)
Change in Net Gain on Hedges	(9.8)		(23.8)		(17.0)
Change in Foreign Currency Translation Adjustment	4.2		(4.3)		0.2
Change in Unrecognized Pension and Postretirement Benefit Costs	42.1		(34.8)		(9.3)
Total	$	245.2	$	220.1	$	501.0

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
	2021		2020		2019
Statutory Income Tax	21.0	%	21.0	%	21.0	%
Net Operating Loss Carryback	(0.7)		(3.8)		—
Tax Exempt Income	(1.1)		(0.8)		(0.5)
Tax Credits	(0.9)		(1.3)		(1.1)
Policyholder Reserves	2.4		0.7		—
Other Items, Net	1.8		1.9		1.0
Effective Tax	22.5	%	17.7	%	20.4	%

Schedule of Deferred Tax Assets and Liabilities

Our net deferred tax liability consists of the following.

	December 31
	2021		2020
	(in millions of dollars)
Deferred Tax Asset
Reserves	$	889.7	$	1,279.6
Employee Benefits	176.6		218.7
Other	57.5		52.9
Gross Deferred Tax Asset	1,123.8		1,551.2
Less: Valuation Allowance	12.7		14.5
Net Deferred Tax Asset	1,111.1		1,536.7
Deferred Tax Liability
Deferred Acquisition Costs	134.9		185.5
Fixed Assets	71.1		74.7
Invested Assets	1,144.9		1,443.5
Cost of Reinsurance	171.6		180.4
Other	47.0		68.7
Gross Deferred Tax Liability	1,569.5		1,952.8
Net Deferred Tax Liability	$	458.4	$	416.1

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
	2021		2020		2019
	(in millions of dollars)
Income Before Tax
Domestic	$	957.0	$	924.7	$	1,289.5
Foreign	106.0		39.3		92.6
Total	$	1,063.0	$	964.0	$	1,382.1
Current Tax Expense (Benefit)
Federal	$	180.7	$	(98.4)	$	273.6
State and Local	2.6		1.5		1.3
Foreign	29.5		(19.7)		(0.1)
Total	212.8		(116.6)		274.8
Deferred Tax Expense (Benefit)
Federal	13.3		250.5		(9.5)
State and Local	(2.2)		1.0		(0.1)
Foreign	14.9		36.1		16.6
Total	26.0		287.6		7.0
Total Tax Expense	$	238.8	$	171.0	$	281.8

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
	2021		2020		2019
	(in millions of dollars)
Balance at Beginning of Year	$	219.7	$	241.0	$	262.2
Increases (Decreases) for Tax Positions Related to Prior Years	(20.9)		(21.0)		(21.1)
Lapse of the Applicable Statute of Limitations	—		(0.3)		(0.1)
Balance at End of Year	198.8		219.7		241.0
Less Tax Attributable to Temporary Items Included Above	(84.7)		(105.9)		(127.1)
Total Unrecognized Tax Benefits That if Recognized Would Affect the Effective Tax Rate	$	114.1	$	113.8	$	113.9