Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense (Benefit)

The following schedule discloses significant components of income tax expense (benefit) for each year presented:


	Year Ended December 31,
	2021		2020		2019
	(in thousands)
Current tax expense (benefit):
U.S. federal	$	440,649	$	(358,548)	$	56,371
State and local	5,002		0		0
Total	445,651		(358,548)		56,371
Deferred tax expense (benefit):
U.S. federal	(1,137,090)		228,300		(115,503)
Total	(1,137,090)		228,300		(115,503)
Total income tax expense (benefit) on income (loss) before equity in earnings of operating joint ventures	(691,439)		(130,248)		(59,132)
Income tax expense (benefit) on equity in earnings of operating joint ventures	(147)		(518)		(1,773)
Income tax expense (benefit) reported in equity related to:
Other comprehensive income (loss)	(52,374)		70,806		81,281
Total income tax expense (benefit)	$	(743,960)	$	(59,960)	$	20,376

Schedule of Effective Income Tax Rate Reconciliation

The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% applicable for 2021, 2020 and 2019, and the reported income tax expense (benefit) are summarized as follows:


	Year Ended December 31,
	2021			2020			2019
	(in thousands)
Expected federal income tax expense (benefit)	$	(609,393)		$	14,308		$	33,345
Non-taxable investment income	(48,662)			(46,836)			(52,291)
Tax credits	(36,806)			(27,980)			(40,602)
Changes in tax law	(3,644)			(70,121)			0

Other	7,066			381			416
Reported income tax expense (benefit)	$	(691,439)		$	(130,248)		$	(59,132)
Effective tax rate	23.8		%	(191.2)		%	(37.2)		%

Schedule of Deferred Tax Assets and Liabilities

Schedule of Deferred Tax Assets and Deferred Tax Liabilities


	As of December 31,
	2021		2020
	(in thousands)
Deferred tax assets:
Insurance reserves	$	2,391,739	$	296,635
Other	2,894		0
Deferred tax assets	2,394,633		296,635
Deferred tax liabilities:
Deferred policy acquisition cost	1,003,301		142,147
Deferred sales inducements	78,676		0
Net unrealized gain on securities	114,705		180,067
Investments	155,891		124,821
Other	0		4,032
Deferred tax liabilities	1,352,573		451,067
Net deferred tax asset (liability)	$	1,042,060	$	(154,432)