Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
Current	$	(255)	$	(24)	$	20
Deferred	(418)		(413)		717
Federal income tax expense (benefit)	$	(673)	$	(437)	$	737

Reconciliation of the Effective Tax Rate Differences

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

	For the Years Ended December 31,
	2023		2022		2021
Income (loss) before taxes	$	(2,461)	$	(2,112)	$	4,034
Federal statutory rate	21%		21%		21%
Federal income tax expense (benefit) at federal statutory rate	(517)		(444)		847
Effect of:
Tax-preferred investment income (1)	(126)		(90)		(88)
Tax credits	(40)		(42)		(26)
Excess tax expense (benefit) from stock-based compensation	3		(1)		–
Goodwill impairment	–		133		–
Other items	7		7		4
Federal income tax expense (benefit)	$	(673)	$	(437)	$	737
Effective tax rate	27%		21%		18%

(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,
	2023		2022
Current	$	546	$	353
Deferred	49		734
Total federal income tax asset (liability)	$	595	$	1,087

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,
	2023		2022
Deferred Tax Assets
Insurance liabilities and reinsurance-related balances	$	322	$	231
Compensation and benefit plans	175		152
Intangibles	18		21
Net unrealized loss on fixed maturity AFS securities	1,246		2,161
Net unrealized loss on trading securities	33		70
Investment activity	91		296
Tax credits	103		–
Net operating losses	87		278
Capital losses	93		–
Deferred gain on reinsurance	400		30
Total deferred tax assets	$	2,568	$	3,239
Deferred Tax Liabilities
DAC and VOBA	$	1,906	$	1,769
Reinsurance-related embedded derivative assets	104		143
MRB-related activity	286		228
Other	223		365
Total deferred tax liabilities	$	2,519	$	2,505
Net deferred tax asset (liability)	$	49	$	734

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,
	2023		2022
Balance as of beginning-of-year	$	59	$	64
Decreases for prior year tax positions	(6)		(6)
Increases for prior year tax positions	23		1
Balance as of end-of-year	$	76	$	59