Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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,
	2024		2023		2022
Current	$	(13)	$	(255)	$	(24)
Deferred	465		(418)		(413)
Federal income tax expense (benefit)	$	452	$	(673)	$	(437)

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,
	2024		2023		2022
Income (loss) before taxes	$	2,582	$	(2,461)	$	(2,112)
Federal statutory rate	21%		21%		21%
Federal income tax expense (benefit) at federal statutory rate	542		(517)		(444)
Effect of:
Tax-preferred investment income (1)	(32)		(126)		(90)
Tax credits	(39)		(40)		(42)
Excess tax expense (benefit) from stock-based compensation	3		3		(1)
Goodwill impairment	–		–		133
Release of uncertain tax positions	(34)		–		–
Other items	12		7		7
Federal income tax expense (benefit)	$	452	$	(673)	$	(437)
Effective tax rate	18%		27%		21%

(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,
	2024		2023
Current	$	338	$	546
Deferred	(217)		49
Total federal income tax asset (liability)	$	121	$	595

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,
	2024		2023
Deferred Tax Assets
Net unrealized loss on fixed maturity AFS securities	$	1,486	$	1,246
Insurance liabilities and reinsurance-related balances	318		322
Compensation and benefit plans	197		175
Intangibles	17		18
Net unrealized loss on trading securities	30		33
Investment activity	–		91
Tax credits	141		103
Net operating losses	359		87
Capital losses	56		93
Deferred gain on reinsurance	375		400
Total deferred tax assets	$	2,979	$	2,568
Deferred Tax Liabilities
DAC and VOBA	$	1,774	$	1,906
Reinsurance-related embedded derivative assets	153		104
MRB-related activity	234		286
Investment activity	808		–
Other	227		223
Total deferred tax liabilities	$	3,196	$	2,519
Net deferred tax asset (liability)	$	(217)	$	49

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,
	2024		2023
Balance as of beginning-of-year	$	76	$	59
Decreases for prior year tax positions	(40)		(6)
Increases for prior year tax positions	–		23
Balance as of end-of-year	$	36	$	76