XML 164 R41.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Taxation (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
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) | 2019 |  |  | 2018 |  |  | 2017 |
Pre-tax income: |  |  |  |  |
Switzerland | $ | 440 |  |  | $ | 950 |  |  | $ | 527 |
Outside Switzerland | 4,809 |  |  | 3,707 |  |  | 3,195 |
Total pre-tax income | $ | 5,249 |  |  | $ | 4,657 |  |  | $ | 3,722 |
Provision for income taxes |  |  |  |  |
Current tax expense: |  |  |  |  |
Switzerland | $ | 29 |  |  | $ | 89 |  |  | $ | 46 |
Outside Switzerland | 879 |  |  | 563 |  |  | 313 |
Total current tax expense | 908 |  |  | 652 |  |  | 359 |
Deferred tax expense (benefit): |  |  |  |  |
Switzerland | 11 |  |  | 3 |  |  | 2 |
Outside Switzerland | (124 | ) |  | 40 |  |  | (500 | )
Total deferred tax expense (benefit) | (113 | ) |  | 43 |  |  | (498 | )
Provision for income taxes | $ | 795 |  |  | $ | 695 |  |  | $ | (139 | )
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) | 2019 |  |  | 2018 |  |  | 2017 |
Expected tax provision at Swiss statutory tax rate | $ | 411 |  |  | $ | 365 |  |  | $ | 291 |
Permanent differences: |  |  |  |  |
Taxes on earnings subject to rate other than Swiss statutory rate | 376 |  |  | 372 |  |  | 263 |
Tax-exempt interest and dividends received deduction, net of proration | (49 | ) |  | (75 | ) |  | (199 | )
Net withholding taxes | 40 |  |  | 33 |  |  | 30 |
Excess tax benefit on share-based compensation | (12 | ) |  | (19 | ) |  | (48 | )
Impact of 2017 Tax Act | — |  |  | (25 | ) |  | (450 | )
Corporate owned life insurance | (13 | ) |  | 2 |  |  | (37 | )
Other | 42 |  |  | 42 |  |  | 11 |
Provision for income taxes | $ | 795 |  |  | $ | 695 |  |  | $ | (139 | )
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) | 2019 |  |  | 2018 |
Deferred tax assets: |  |  |
Loss reserve discount | $ | 826 |  |  | $ | 584 |
Unearned premiums reserve | 519 |  |  | 471 |
Foreign tax credits | 247 |  |  | 262 |
Provision for uncollectible balances | 37 |  |  | 37 |
Loss carry-forwards | 143 |  |  | 137 |
Debt related amounts | 74 |  |  | 71 |
Compensation related amounts | 261 |  |  | 263 |
Cumulative translation adjustments | 33 |  |  | 43 |
Unrealized depreciation on investments | — |  |  | 102 |
Lease liability | 140 |  |  | — |
Other, net | — |  |  | 95 |
Total deferred tax assets | 2,280 |  |  | 2,065 |
Deferred tax liabilities: |  |  |
Deferred policy acquisition costs | 588 |  |  | 621 |
Other intangible assets, including VOBA | 1,468 |  |  | 1,440 |
Un-remitted foreign earnings | 73 |  |  | 47 |
Investments | 40 |  |  | 59 |
Unrealized appreciation on investments | 470 |  |  | — |
Depreciation | 157 |  |  | 123 |
Lease right-of-use asset | 129 |  |  | — |
Other, net | 45 |  |  | — |
Total deferred tax liabilities | 2,970 |  |  | 2,290 |
Valuation allowance | 114 |  |  | 79 |
Net deferred tax liabilities | $ | (804 | ) |  | $ | (304 | )
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) | 2019 |  |  | 2018 |
Balance, beginning of year | $ | 14 |  |  | $ | 13 |
Additions based on tax positions related to the current year | 12 |  |  | 1 |
Additions based on tax positions related to prior years | 23 |  |  | — |
Reductions for tax positions of prior years | — |  |  | — |
Reductions for the lapse of the applicable statutes of limitations | (2 | ) |  | — |
Balance, end of year | $ | 47 |  |  | $ | 14 |
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, 2019 |  |  |
Australia | 2014 | - | 2019
Canada | 2012 | - | 2019
France | 2017 | - | 2019
Germany | 2015 | - | 2019
Italy | 2010 | - | 2019
Mexico | 2014 | - | 2019
Spain | 2012 | - | 2019
Switzerland | 2015 | - | 2019
United Kingdom | 2015 | - | 2019
United States | 2014 | - | 2019

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=117331294&loc=d3e36027-109320 + Details
Name: | us-gaap_SummaryOfIncomeTaxExaminationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration