Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Federal Income Tax Expense

The federal income tax expense (benefit) on continuing operations (in millions) was as follows:

	For the Years Ended December 31,
	2024		2023		2022
Current	$	6	$	(3)	$	3
Deferred	741		(393)		364
Federal income tax expense (benefit)	$	747	$	(396)	$	367

Reconciliation of effective tax rate differences

A reconciliation of the effective tax rate differences (in millions) was as follows:

	For the Years Ended December 31,
	2024			2023			2022
Income (loss) before taxes	$	4,022		$	(1,148)		$	1,725
Federal statutory rate	21		%	21		%	21		%
Federal income tax expense (benefit) at federal statutory rate	845			(241)			362
Effect of:
Tax-preferred investment income (1)	(32)			(126)			(90)
Tax credits	(39)			(40)			(42)
Excess tax expense (benefit) from stock-based
compensation	3			4			(1)
Goodwill impairment	–			–			133
Release of uncertain tax positions	(41)			–			–
Other items	11			7			5
Federal income tax expense (benefit)	$	747		$	(396)		$	367
Effective tax rate	19		%	34		%	21		%

(1) Relates primarily to separate account dividends eligible for the dividends-received deduction.

Federal Income Tax Asset Liability

The federal income tax asset (liability) (in millions) was as follows:

	As of December 31,
	2024		2023
Current	$	107	$	112
Deferred	604		929
Total federal income tax asset (liability)	$	711	$	1,041

Significant components of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities (in millions) were as follows:

	As of December 31,
	2024		2023
Deferred Tax Assets
Insurance liabilities and reinsurance-related balances	$	1,856	$	1,900
Net unrealized loss on fixed maturity AFS securities	2,164		1,826
Reinsurance-related embedded derivative liabilities	6		116
Compensation and benefit plans	206		184
Intangibles	17		18
Net unrealized loss on trading securities	30		33
Tax credits	169		131
Net operating losses	478		87
Capital losses	56		93
Total deferred tax assets	$	4,982	$	4,388
Deferred Tax Liabilities
DAC and VOBA	$	1,638	$	1,744
Investment activity	1,486		617
Deferred loss on reinsurance	474		465
MRB-related activity	743		429
Other	37		204
Total deferred tax liabilities	$	4,378	$	3,459
Net deferred tax asset (liability)	$	604	$	929

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the gross unrecognized federal tax benefits (in millions) was as follows:

	For the Years Ended December 31,
	2024		2023
Balance as of beginning-of-year	$	87	$	68
Decreases for prior year tax positions	(48)		(6)
Increases for prior year tax positions	–		25
Balance as of end-of-year	$	39	$	87