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Taxation (Tables) | 12 Months Ended
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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.

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- 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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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