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Income Tax
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Tax
14. Income Tax
The provision for income tax was as follows:
Years Ended December 31,
202420232022
(In millions)
Current:
Federal$(39)$(5)$(88)
Deferred:
Federal24 (378)883 
Provision for income tax expense (benefit)$(15)$(383)$795 
The reconciliation of the income tax provision at the statutory tax rate to the provision for income tax as reported was as follows:
Years Ended December 31,
202420232022
(Dollars in millions)
Tax provision at statutory rate$51 $(316)$946 
Tax effect of:
Resolution of prior years— — (71)
Dividends received deduction(31)(31)(32)
Change in uncertain tax benefits
(12)— (20)
Tax credits(22)(8)(19)
Change in valuation allowance— (18)— 
Return to provision(10)(5)(5)
Adjustments to deferred tax14 — (2)
Other, net(5)(5)(2)
Provision for income tax expense (benefit)$(15)$(383)$795 
Effective tax rate(6)%25 %18 %
Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at:
December 31,
20242023
(In millions)
Deferred income tax assets:
Net unrealized investment losses$1,245 $1,048 
Net operating loss carryforwards2,003 1,826 
Investments, including derivatives145 210 
Tax credit carryforwards188 189 
Employee benefits2 3 
Intangibles41 48 
Other4 — 
Total deferred income tax assets3,628 3,324 
Less: Valuation allowance— — 
Total net deferred income tax assets3,628 3,324 
Deferred income tax liabilities:
Policyholder liabilities and receivables1,224 910 
DAC581 580 
Other— 1 
Total deferred income tax liabilities1,805 1,491 
Net deferred income tax asset (liability)$1,823 $1,833 
The following table sets forth the net operating loss carryforwards for tax purposes at December 31, 2024.
Net Operating Loss Carryforwards
(In millions)
Expiration
2032
$1,938 
Indefinite7,598 
$9,536 
The following table sets forth the general business credits and foreign tax credits available for carryforward for tax purposes at December 31, 2024.
Tax Credit Carryforwards
General Business CreditsForeign Tax Credits
(In millions)
Expiration
2027-2031$— $121 
2032-203612 41 
2037-204113 — 
2042-20441 — 
Indefinite— — 
$26 $162 
The Company’s liability for unrecognized tax benefits may increase or decrease in the next 12 months. A reasonable estimate of the increase or decrease cannot be made at this time. However, the Company continues to believe that the ultimate resolution of the pending issues will not result in a material change to its consolidated financial statements, although the resolution of income tax matters could impact the Company’s effective tax rate in the future.
A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:
Years Ended December 31,
202420232022
(In millions)
Balance at January 1,$14 $14 $34 
Additions for tax positions of prior years— — — 
Reductions for tax positions of prior years— — — 
Additions for tax positions of current year— — — 
Reductions for tax positions of current year— — — 
Settlements with tax authorities— — — 
Lapses of statutes of limitations(12)— (20)
Balance at December 31,$2 $14 $14 
Unrecognized tax benefits that, if recognized would impact the effective rate$2 $14 $14 
The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included in other expenses, while penalties are included in income tax expense. Interest related to unrecognized tax benefits was not significant. The Company had no penalties for each of the years ended December 31, 2024, 2023 and 2022.
The Company is subject to examination by the Internal Revenue Service and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction and subsidiary. The Company is no longer subject to federal, state or local income tax examinations for years prior to 2017. Management believes it has established adequate tax liabilities, and final resolution of any audits for the years 2017 and forward is not expected to have a material impact on the Company’s consolidated financial statements.
Tax Sharing Agreements
For the periods prior to the Separation, the Company filed a consolidated federal income tax return with MetLife, Inc. and its insurance and non-insurance subsidiaries. Current taxes (and the benefits of tax attributes such as losses) are allocated to the Company, and its includable subsidiaries, under a tax sharing agreement with MetLife, Inc. This tax sharing agreement states that federal taxes are computed on a modified separate return basis with benefits for losses.
For periods after the Separation through the year ended December 31, 2022, Brighthouse Life Insurance Company, BHNY and BRCD entered into a tax sharing agreement to join a consolidated federal income tax return. The tax sharing agreement states that federal taxes are computed on a modified separate return basis with benefit for losses. The non-insurance subsidiaries of the Company filed their own federal income tax returns.
For periods beginning with the year ended December 31, 2023, Brighthouse Life Insurance Company, BHNY and BRCD file a consolidated federal income tax return with Brighthouse Financial, Inc. and certain of its subsidiaries. In furtherance thereof, such parties joined a single tax sharing agreement, pursuant to which federal taxes are computed on a modified separate return basis with benefits for losses.
Income Tax Transactions with Former Parent
The Company entered into a tax separation agreement with MetLife (the “Tax Separation Agreement”). Among other things, the Tax Separation Agreement governs the allocation between MetLife and the Company of the responsibility for the taxes of the MetLife group. The Tax Separation Agreement also allocates rights, obligations and responsibilities in connection with certain administrative matters relating to the preparation of tax returns and control of tax audits and other proceedings relating to taxes. For the years ended December 31, 2024, 2023 and 2022, MetLife, Inc. paid the Company $0, $0 and $14 million, respectively, under the Tax Separation Agreement. At December 31, 2024 and 2023, there was a current income tax receivable of $17 million and $15 million, respectively, related to this agreement.