Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of 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	2019		2018		2017
(In millions)
Income tax expense (benefit):
Federal:
Current	$	108	$	6	$	157
Deferred		47		85		(63	)
State and city:
Current		18		15		22
Deferred		22		9		17
Foreign		53		13		37
Total	$	248	$	128	$	170

Components of U.S. and Foreign Income and 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	2019			2018			2017
(In millions)
Income (loss) before income tax:
U.S.	$	1,145		$	775		$	1,322
Foreign		(26	)		59			260
Total	$	1,119		$	834		$	1,582
Income tax expense at statutory rate	$	235		$	175		$	554
Increase (decrease) in income tax expense resulting from:
Effect of the Tax Act		(14	)		(6	)		(190	)
Exempt investment income		(50	)		(64	)		(134	)
Foreign related tax differential		(55	)		1			(36	)
Taxes related to domestic affiliate		(15	)		(7	)		1
Partnership earnings not subject to taxes					(14	)		(51	)
Valuation allowance		12			12			7
Unrecognized tax positions, settlements and adjustments relating to prior years		97			2			(8	)
State taxes		37			20			23
Other		1			9			4
Income tax expense	$	248		$	128		$	170

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits, Excluding Tax Carryforwards and Interest and Penalties

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	2019			2018			2017
(In millions)
Balance at January 1	$	58		$	84		$	35
Additions for tax positions related to the current year		86			3			51
Additions for tax positions related to a prior year		2			20			5
Reductions for tax positions related to a prior year		(23	)		(48	)		(1	)
Lapse of statute of limitations		(2	)		(1	)		(6	)
Balance at December 31	$	121		$	58		$	84

Summary of Deferred Tax Assets and Liabilities

The following table summarizes deferred tax assets and liabilities:

December 31	2019			2018
(In millions)
Deferred tax assets:
Insurance reserves:
Property and casualty claim and claim adjustment expense reserves	$	129		$	108
Unearned premium reserves		153			108
Receivables		11			13
Employee benefits		212			222
Deferred retroactive reinsurance benefit		82			79
Net operating loss carryforwards		275			251
Tax credit carryforwards		47			101
Net unrealized losses					24
Basis differential in investment in subsidiary		8			8
Disallowed interest deduction		41			16
Other		179			181
Total deferred tax assets		1,137			1,111
Valuation allowance		(187	)		(175	)
Net deferred tax assets		950			936
Deferred tax liabilities:
Deferred acquisition costs		(83	)		(78	)
Net unrealized gains		(263	)
Property, plant and equipment		(848	)		(840	)
Basis differential in investment in subsidiary		(679	)		(586	)
Other liabilities		(208	)		(236	)
Total deferred tax liabilities		(2,081	)		(1,740	)
Net deferred tax liabilities (a)	$	(1,131	)	$	(804	)

(a) Includes $37 of deferred tax assets reflected in Other assets in the Consolidated Balance Sheets at December 31, 2019 and 2018.