Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Income Before Income Tax Expense and Current and Deferred Components of Income Tax Expense (Benefit)

The components of U.S. and foreign income before income tax expense and the current and deferred components of income tax expense (benefit) are as follows:


Year Ended December 31	2025		2024		2023
(In millions)

Income before income tax expense:
U.S.	$	1,999	$	1,672	$	1,798
Foreign	284		202		198
Total	$	2,283	$	1,874	$	1,996

Current tax expense
Federal	$	314	$	320	$	267
State and local	37		47		20
Foreign	48		58		37
Total current tax expense	399		425		324
Deferred tax expense (benefit)
Federal	81		(10)		81
State and local	10		(40)		31
Foreign	21		5		15
Total deferred tax expense (benefit)	112		(45)		127
Total income tax expense
Federal	395		310		348
State and local	47		7		51
Foreign	69		63		52
Total income tax expense	$	511	$	380	$	451

Summary of Reconciliation between Federal Income Tax Expense at Statutory Rates and Actual Income Tax Expense

A reconciliation of income tax expense at the federal statutory tax rate to income tax expense at the effective tax rate is as follows:


Year Ended December 31	2025				2024				2023
(In millions, except %)

	Amount		Percent		Amount		Percent		Amount		Percent
Income tax expense at federal statutory tax rate	$	479	21.0	%	$	393	21.0	%	$	419	21.0	%
State and local income taxes, net of federal income tax effect (a)	38		1.7	%	7		0.4	%	42		2.1	%
Foreign tax effects
Canada	22		1.0	%	32		1.7	%	23		1.1	%
Other	9		0.4	%	7		0.4	%	7		0.4	%
Tax credits
Foreign tax credits	(25)		(1.1)	%	(36)		(1.9)	%	(26)		(1.3)	%
Other	(6)		(0.3)	%	(7)		(0.4)	%	(2)		(0.1)	%
Nontaxable or nondeductible items
Nontaxable investment income	(30)		(1.3)	%	(26)		(1.4)	%	(31)		(1.6)	%
Other	14		0.6	%	13		0.7	%	12		0.6	%
Other adjustments	10		0.4	%	(3)		(0.2)	%	7		0.4	%
Income tax expense	$	511	22.4	%	$	380	20.3	%	$	451	22.6	%


(a)			In 2025, state taxes in Florida, Illinois and Louisiana made up the majority of the tax effect in this category. In 2024, state taxes in Florida made up the majority of the tax effect in this category. In 2023, state taxes in Florida, Illinois, Louisiana and New York made up the majority of the tax effect in this category.

Summary of Deferred Tax Assets and Liabilities

The following table summarizes deferred tax assets and liabilities:


December 31	2025		2024
(In millions)

Deferred tax assets:
Insurance reserves:
Property and casualty claim and claim adjustment expense reserves	$	276	$	234
Unearned premium reserves	227		225

Deferred revenue	84		85
Employee benefits	81		79
Deferred retroactive reinsurance benefit	99		89

Net unrealized losses	258		485


Other assets	179		188
Total deferred tax assets	1,204		1,385
Valuation allowance	(25)		(19)
Net deferred tax assets	1,179		1,366

Deferred tax liabilities:
Deferred acquisition costs	(143)		(140)

Policyholder reserves	(25)		(48)
Property, plant and equipment	(1,056)		(963)
Basis differential in investment in subsidiary	(473)		(481)
Investment valuation differences	(218)		(176)
Other liabilities	(87)		(69)
Total deferred tax liabilities	(2,002)		(1,877)

Net deferred tax liabilities (a)	$	(823)	$	(511)
(a) Includes deferred tax assets reflected in Other assets on the Consolidated Balance Sheets at December 31, 2025 and 2024	$	16	$	39