Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Current and Deferred Components of Income Tax Expense (Benefit)

The current and deferred components of income tax expense (benefit) are as follows:


Year Ended December 31	2021		2020		2019
(In millions)

Income tax expense (benefit):
Federal:
Current	$	239	$	43	$	108
Deferred	197		(260)		47
State and city:
Current	13		1		18
Deferred	13		13		22
Foreign	17		30		53
Total	$	479	$	(173)	$	248

Reconciliation between Federal Income Tax Expense at Statutory Rates and Actual Income Tax Expense (Benefit)

The components of U.S. and foreign income before income tax and a reconciliation between the federal income tax expense at statutory rates and the actual income tax expense (benefit) is as follows:


Year Ended December 31	2021		2020		2019
(In millions)

Income (loss) before income tax:
U.S.	$	2,058	$	(768)	$	1,145
Foreign	124		(696)		(26)
Total	$	2,182	$	(1,464)	$	1,119

Income tax expense (benefit) at statutory rate	$	458	$	(307)	$	235
Increase (decrease) in income tax expense (benefit) resulting from:
Effect of the 2017 tax act					(14)
Exempt investment income	(48)		(49)		(50)
Foreign related tax differential	(2)		63		(55)
Taxes related to domestic affiliate	40				(15)
Valuation allowance	1		55		12
Unrecognized tax positions, settlements and adjustments relating to prior years			68		97
State taxes	24		4		37
Other	6		(7)		1
Income tax expense (benefit)	$	479	$	(173)	$	248

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding tax carryforwards and interest and penalties, is as follows:


Year Ended December 31	2021		2020		2019
(In millions)

Balance at January 1	$	2	$	121	$	58
Additions for tax positions related to the current year			68		86
Additions for tax positions related to a prior year					2
Reductions for tax positions related to a prior year					(23)
Lapse of statute of limitations					(2)
Reduction due to deconsolidation of subsidiaries	(2)		(187)
Balance at December 31	$	—	$	2	$	121

Deferred Tax Assets and Liabilities

The following table summarizes deferred tax assets and liabilities:


December 31	2021		2020
(In millions)

Deferred tax assets:
Insurance reserves:
Property and casualty claim and claim adjustment expense reserves	$	173	$	157
Unearned premium reserves	193		174
Receivables	11		11
Employee benefits	111		197
Deferred retroactive reinsurance benefit	90		83
Net operating loss carryforwards	29		13
Tax credit carryforwards	4		11
Basis differential in investment in subsidiary	8		8
Other	180		189
Total deferred tax assets	799		843
Valuation allowance	(15)		(13)
Net deferred tax assets	784		830

Deferred tax liabilities:
Deferred acquisition costs	(99)		(93)
Net unrealized gains	(275)		(441)
Property, plant and equipment	(751)		(721)
Basis differential in investment in subsidiary	(503)		(432)
Other liabilities	(190)		(165)
Total deferred tax liabilities	(1,818)		(1,852)

Net deferred tax liabilities (a)	$	(1,034)	$	(1,022)

(a)Includes $45 and $43 of deferred tax assets reflected in Other assets in the Consolidated Balance Sheets at December 31, 2021 and 2020.