Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022


	For the Years Ended December 31,
	2022		2021		2020
Current	$	3	$	12	$	(61	)
Deferred		364		853		(15	)
Federal income tax expense (benefit)	$	367	$	865	$	(76	)

Reconciliation of effective tax rate differences


	For the Years Ended December 31,
	2022			2021			2020
Income (loss) before taxes	$	1,725		$	4,643		$	423
Federal statutory rate		21%			21%			21%
Federal income tax expense (benefit) at federal statutory rate		362			975			89
Effect of:
Tax-preferred investment income⁽¹⁾		(90	)		(88	)		(98	)
Tax credits		(42	)		(26	)		(39	)
Excess tax benefits from stock-based compensation		(1	)		-			3
Goodwill impairment		133			-			-
Tax impact associated with the Tax Cuts and Jobs Act⁽²⁾		-			-			(37	)
Other items		5			4			6
Federal income tax expense (benefit)	$	367		$	865		$	(76	)
Effective tax rate		21%			19%			-18%

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

⁽²⁾In 2020, we recognized a $37 million tax benefit attributable to the carry back of a 2020 net operating loss under the provisions of the Coronavirus Aid, Relief, and Economic Security Act, which provides for a five-year carryback period.

Federal Income Tax Asset Liability


	As of December 31,
	2022		2021
Current	$	83	$	142
Deferred		1,313		(2,678	)
Total federal income tax asset (liability)	$	1,396	$	(2,536	)

Significant components of deferred tax assets and liabilities


	As of December 31,
	2022		2021
Deferred Tax Assets
Insurance liabilities and reinsurance-related balances	$	410	$	1,338
Reinsurance-related embedded derivative liability		-		43
Compensation and benefit plans		172		198
Intangibles		21		24
Net unrealized loss on fixed maturity AFS securities		2,265		-
Net unrealized loss on trading securities		70		-
Investment activity		273		-
Tax credits		101		58
Net operating losses		278		292
MRB-related activity		-		485
Other		57		62
Total deferred tax assets	$	3,647	$	2,500
Deferred Tax Liabilities
DAC	$	1,529	$	1,520
VOBA		213		232
Net unrealized gain on fixed maturity AFS securities		-		2,830
Net unrealized gain on trading securities		-		65
Investment activity		-		325
Reinsurance-related embedded derivative asset		87		-
MRB-related activity		134		-
Other		371		206
Total deferred tax liabilities	$	2,334	$	5,178
Net deferred tax asset (liability)	$	1,313	$	(2,678	)

Reconciliation Of Unrecognized Tax Benefits


	For the Years Ended
	December 31,
	2022			2021
Balance as of beginning-of-year	$	53		$	51
Increases for prior year tax positions		5			2
Settlements for prior year tax positions		(6	)		-
Balance as of end-of-year	$	52		$	53