Taxation (Tables)

12 Months Ended

Dec. 31, 2022

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)	2022		2021		2020
Pre-tax income:
Switzerland	$	234	$	349	$	350
Outside Switzerland	6,334		9,467		3,812
Total pre-tax income	$	6,568	$	9,816	$	4,162
Provision for income taxes
Current tax expense:
Switzerland	$	15	$	65	$	52
Outside Switzerland	1,066		1,294		876
Total current tax expense	1,081		1,359		928
Deferred tax expense (benefit):
Switzerland	34		(15)		2
Outside Switzerland	140		(67)		(301)
Total deferred tax expense (benefit)	174		(82)		(299)
Provision for income taxes	$	1,255	$	1,277	$	629

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)	2022		2021		2020
Expected tax provision at Swiss statutory tax rate	$	1,291	$	1,934	$	880
Permanent differences:
Taxes on earnings subject to rate other than Swiss statutory rate	(244)		(740)		(337)
Net withholding taxes	75		78		67
Other	133		5		19
Provision for income taxes	$	1,255	$	1,277	$	629

Schedule of the components of net deferred tax assets

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

	December 31
(in millions of U.S. dollars)	2022		2021
Deferred tax assets:
Loss reserve discount	$	1,001	$	950
Unearned premiums reserve	417		544
Foreign tax credits	76		156
Loss carry-forwards	104		139
Investments	57		—
Unrealized depreciation on investments	1,387		—
Depreciation	126		190
Other	175		296
Total deferred tax assets	3,343		2,275
Valuation allowance	916		92
Deferred tax assets, net of valuation allowance	2,427		2,183
Deferred tax liabilities:
Deferred policy acquisition costs	276		679
Other intangible assets, including VOBA	2,194		1,268
Un-remitted foreign earnings	249		121
Investments	—		144
Unrealized appreciation on investments	—		360
Total deferred tax liabilities	2,719		2,572
Net deferred tax liabilities	$	(292)	$	(389)

Reconciliation schedule of unrecognized tax benefits

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

	Year Ended December 31
(in millions of U.S. dollars)	2022		2021
Balance, beginning of year	$	64	$	76
Additions based on tax positions related to prior years	4		7
Reductions for settlements with taxing authorities	(1)		(19)
Balance, end of year	$	67	$	64

Summary of Income Tax Examinations

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

At December 31, 2022
Australia	2016	-	2022
Brazil	2016	-	2022
Canada	2012	-	2022
France	2021	-	2022
Germany	2016	-	2022
Italy	2019	-	2022
Korea (1)	2017	-	2022
Mexico	2016	-	2022
Spain	2012	-	2022
Switzerland	2018	-	2022
United Kingdom	2015	-	2022
United States	2014	-	2022

(1)     Includes an examination for a pre-acquisition period subject to indemnification by Cigna Corp.