Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) consisted of the following for the periods indicated:


	Year Ended December 31,
	2023		2022		2021
Current tax expense (benefit):
Federal	$	14	$	—	$	(45)

Total current tax expense (benefit)	14		—		(45)
Deferred tax expense (benefit):
Federal	(1)		(51)		201
Total deferred tax expense (benefit)	(1)		(51)		201
Total income tax expense (benefit)	$	13	$	(51)	$	156

Schedule of Effective Income Tax Rate Reconciliation

Income taxes were different from the amount computed by applying the federal income tax rate to Income (loss) before income taxes for the following reasons for the periods indicated:


	Year Ended December 31,
	2023			2022			2021
Income (loss) before income taxes	$	400		$	282		$	952
Tax rate	21.0		%	21.0		%	21.0		%
Income tax expense (benefit) at federal statutory rate	84			59			200
Tax effect of:
Dividends received deduction	(36)			(42)			(33)
Security Life of Denver Company capital loss carryback (1)	(23)			—			—
Tax credits	(11)			(67)			(11)



Other	(1)			(1)			—
Income tax expense (benefit)	$	13		$	(51)		$	156
Effective tax rate	3.2		%	(18.1)		%	16.4		%
(1) See Other Tax Matters section below

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of the dates indicated, are presented below.


	December 31,
	2023		2022
Deferred tax assets
Net unrealized investment losses	$	372	$	511
Loss carryforwards	183		224
Current discount rate (1)	70		73
Tax credits	65		59
Insurance reserves	61		—
Compensation and benefits	57		55
Investments	19		48
Total gross assets	827		970
Less: Valuation allowance	—		—
Assets, net of valuation allowance	$	827	$	970

Deferred tax liabilities
Deferred policy acquisition costs	$	(178)	$	(181)
Insurance reserves	—		(3)

Other liabilities	(16)		(12)
Total gross liabilities	(194)		(196)
Net deferred income tax asset (liability)	$	633	$	774
(1) Current discount rate is a result of the adoption of ASU 2018-12. See the Business, Basis of Presentation and Significant Accounting Policies Note to these Consolidated Financial Statements for additional information

Summary of Operating Loss Carryforwards


	December 31,
	2023			2022
Federal net operating loss carryforward	$	873	(1)	$	1,065
Credit carryforward	65		(2)	59

(1) NOL not subject to expiration

(2) Expires between 2025 and 2032