v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
The following table presents income (loss) before income tax expense (benefit) by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred:
Years Ended December 31,
(in millions)202520242023
U.S.$(533)$2,765 $972 
Foreign(8)38 (32)
Total$(541)$2,803 $940 
Schedule of Components of Income Tax Expense (Benefit)
The following table presents the income tax expense (benefit) attributable to pre-tax income (loss):
Years Ended December 31,
(in millions)202520242023
U.S. and Foreign components of actual income tax expense:
U.S. Federal:
Current$(487)$(43)$302 
Deferred347 624 (404)
State:
Current(2)9 9 
Deferred(10)6 4 
Foreign:
Current1 (1)(5)
Deferred— 5 (2)
Total$(151)$600 $(96)
Schedule of Income Taxes Paid, Net
The following table presents the income taxes paid (net of refunds):
Years Ended December 31,
(in millions)202520242023
U.S. Federal$203 $240 $(20)
State(11)14 38 
Foreign— (2)2 
Total$192 $252 $20 
Income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions:
Years Ended December 31,
(in millions)202520242023
State:
Florida**$27 
Illinois**$2 
Maryland$(16)**
Oregon**$1 
Virginia$(10)**
Foreign:
Ireland**$2 
*    Jurisdictions without an amount presented are below the threshold required for disclosure.
Schedule of Effective Income Tax Rate Reconciliation
Our actual income tax (benefit) expense differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following:
Years Ended December 31,202520242023
(dollars in millions)Pre-Tax
Income
(Loss)		Tax
Expense/
(Benefit)		Percent of
Pre-Tax
Income (Loss)		Pre-Tax
Income
(Loss)		Tax
Expense/
(Benefit)		Percent of
Pre-Tax
Income (Loss)		Pre-Tax
Income		Tax
Expense/
(Benefit)		Percent of
Pre-Tax
Income (Loss)
U.S. federal income tax at statutory rate$(541)$(114)21 %$2,803 $589 21 %$940 $197 21 %
Adjustments:
State and local income tax, net of federal (national) income tax effect*(9)1.7 14 0.5 — 10 1.1 
Foreign tax effects— — — — (5)(0.5)
Tax credits
Foreign tax credits(23)4.3 (11)(0.4)— (11)(1.2)
Investment tax credits(12)2.2 (8)(0.3)— — 
Changes in valuation allowances88 (16.3)94 3.4 — 11 1.2 
Nontaxable or nondeductible items
Dispositions of Subsidiaries— — 4 0.1 — (99)(10.5)
Noncontrolling interest5 (0.9)6 0.2 — 14 1.5 
Share based compensation payments excess tax deduction(2)0.4 (4)(0.1)— (10)(1.1)
Dividends received deduction(43)7.9 (48)(1.7)— (59)(6.3)
Other nontaxable and nondeductible items2 (0.4)12 0.4 2 0.2 
Adjustments to prior year tax returns related to nontaxable or nondeductible items(14)2.6 — — — (56)(6.0)
Changes in unrecognized tax benefits— — (17)(0.6)— — — 
Other
Reclassifications from accumulated other comprehensive income(29)5.4 (31)(1.1)— (50)(5.3)
Adjustments to deferred tax assets— — — — (40)(4.3)
Consolidated total amounts$(541)$(151)27.9 %$2,803 $600 21.4 %$940 $(96)(10.2)%
*    State taxes in Illinois, Florida, and Mississippi made up the majority (greater than 50 percent) of the tax effect in this category.
Schedule of Deferred Tax Assets and Liabilities
The following table presents the components of the net deferred tax assets (liabilities):
December 31,
(in millions)20252024
Deferred tax assets:
Losses and tax credit carryforwards$1,420 $877 
Basis differences on investments2,336 2,944 
Life policy reserves740 658 
Investments in foreign subsidiaries— 15 
Fixed assets and intangible assets1,190 1,566 
Other343 416 
Employee benefits19 60 
Unrealized losses related to available-for-sale debt securities2,944 4,102 
Market risk benefits1,216 902 
Total deferred tax assets10,208 11,540 
Deferred tax liabilities:
Fortitude Re funds withheld embedded derivative$(723)$(815)
Accruals not currently deductible, and other(109)(118)
Deferred policy acquisition costs(1,555)(1,553)
Total deferred tax liabilities(2,387)(2,486)
Net deferred tax assets before valuation allowance7,821 9,054 
Valuation allowance(1,478)(1,548)
Net deferred tax assets (liabilities)$6,343 $7,506 
Schedule of Carryforwards
The following table presents U.S. federal income tax losses and credits carryforwards:
December 31, 2025Carryforward Period Ending Tax Year
(in millions)
Gross
Total Tax Effected
2028202920302031203520362037Indefinite
Deferred tax assets:
Net operating loss carryforwards
$1,332 $280 $5 $— $— $32 $3 $4 $30 $206 
Capital loss carryforwards
2,915 612 — 343 269 — — — — — 
Other carryforwards
1,876 394 — — — — — — — 394 
Total U.S. federal tax losses and credit carryforwards on a U.S. GAAP basis $6,123 $1,286 $5 $343 $269 $32 $3 $4 $30 $600 
Schedule of Unrecognized Tax Benefits Roll Forward
The following table presents a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits:
Years Ended December 31,
(in millions)202520242023
Gross unrecognized tax benefits, beginning of year$3 $20$20
Increases in tax positions for prior years— ——
Decreases in tax positions for prior years— (17)—
Increases in tax positions for current year— ——
Settlements— ——
Gross unrecognized tax benefits, end of year$3$3$20
Schedule of Income Tax Examinations
Listed below are the tax years that remain subject to examination by major tax jurisdictions:
December 31, 2025Open Tax Years
Major Tax Jurisdiction
United States
2007-2024
United Kingdom
2023-2024