Taxation (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of components of income tax provision

The following table presents pre-tax income and the related provision for income taxes:

	Year Ended December 31
(in millions of U.S. dollars)	2020		2019		2018
Pre-tax income:
Switzerland	$	350	$	440	$	950
Outside Switzerland	3,812		4,809		3,707
Total pre-tax income	$	4,162	$	5,249	$	4,657
Provision for income taxes
Current tax expense:
Switzerland	$	52	$	29	$	89
Outside Switzerland	876		879		563
Total current tax expense	928		908		652
Deferred tax expense (benefit):
Switzerland	2		11		3
Outside Switzerland	(301)		(124)		40
Total deferred tax expense (benefit)	(299)		(113)		43
Provision for income taxes	$	629	$	795	$	695

Reconciliation schedule of the difference between the provision for income taxes and the expected tax provision at the Swiss statutory income tax rate

The following table presents a reconciliation of the difference between the provision for income taxes and the expected tax provision at the Swiss statutory income tax rate:

	Year Ended December 31
(in millions of U.S. dollars)	2020		2019		2018
Expected tax provision at Swiss statutory tax rate	$	880	$	411	$	365
Permanent differences:
Taxes on earnings subject to rate other than Swiss statutory rate	(337)		376		372
Tax-exempt interest and dividends received deduction, net of proration	(41)		(49)		(75)
Net withholding taxes	67		40		33
Share-based compensation	(10)		(12)		(19)
Impact of 2017 Tax Act	—		—		(25)
Other	70		29		44
Provision for income taxes	$	629	$	795	$	695

Schedule of the components of net deferred tax assets

The following table presents the components of net deferred tax assets and liabilities:

	December 31		December 31
(in millions of U.S. dollars)	2020		2019
Deferred tax assets:
Loss reserve discount	$	884	$	826
Unearned premiums reserve	496		519
Foreign tax credits	222		247
Provision for uncollectible balances	46		37
Loss carry-forwards	123		143
Debt related amounts	69		74
Compensation related amounts	281		261
Cumulative translation adjustments	120		33
Investments	75		—
Lease liability	121		140
Total deferred tax assets	2,437		2,280
Deferred tax liabilities:
Deferred policy acquisition costs	522		588
Other intangible assets, including VOBA	1,425		1,468
Un-remitted foreign earnings	77		73
Investments	—		40
Unrealized appreciation on investments	957		470
Depreciation	123		157
Lease right-of-use asset	111		129
Other, net	31		45
Total deferred tax liabilities	3,246		2,970
Valuation allowance	83		114
Net deferred tax liabilities	$	(892)	$	(804)

Reconciliation schedule of unrecognized tax benefits

The following table presents a reconciliation of the beginning and ending amount of gross unrecognized tax benefits:

	December 31		December 31
(in millions of U.S. dollars)	2020		2019
Balance, beginning of year	$	47	$	14
Additions based on tax positions related to the current year	5		12
Additions based on tax positions related to prior years	24		23
Reductions for the lapse of the applicable statutes of limitations	—		(2)
Balance, end of year	$	76	$	47

Summary of Income Tax Examinations [Table Text Block]

The following table summarizes tax years open for examination by major income tax jurisdiction:

At December 31, 2020
Australia	2014	-	2020
Canada	2012	-	2020
France	2018	-	2020
Germany	2015	-	2020
Italy	2010	-	2020
Mexico	2014	-	2020
Spain	2012	-	2020
Switzerland	2016	-	2020
United Kingdom	2015	-	2020
United States	2014	-	2020