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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | 16. INCOME TAXES Income Tax Expense The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions, as applicable. Income before income taxes included income from domestic operations of $3,758, $3,042 and $2,260 for the years ended December 31, 2024, 2023 and 2022, and income (losses) from foreign operations of $91, $46 and $2 for the years ended December 31, 2024, 2023 and 2022. Income Tax Expense
| For the years ended December 31,
| 2024 | 2023 | 2022
Income tax expense (benefit) |  |  |
Current - U.S. federal | $ | 783 |  | $ | 582 |  | $ | 550 |
Foreign | 2 |  | — |  | (1) |
Total current | 785 |  | 582 |  | 549 |
Deferred - U.S. federal | (57) |  | 6 |  | (124) |
Foreign | 10 |  | (4) |  | 18 |
Total deferred | (47) |  | 2 |  | (106) |
Total income tax expense | $ | 738 |  | $ | 584 |  | $ | 443 |
Income Tax Rate Reconciliation
| For the years ended December 31,
| 2024 | 2023 | 2022
Tax provision at U.S. federal statutory rate | $ | 808 |  | $ | 648 |  | $ | 474 |
Nontaxable net investment income | (40) |  | (41) |  | (29) |
Other | (30) |  | (23) |  | (2) |
Provision for income taxes | $ | 738 |  | $ | 584 |  | $ | 443 |
The current income tax receivable of $12 as of December 31, 2024 is included in other assets in the Consolidated Balance Sheets. The current income tax payable of $18 as of December 31, 2023, is included in other liabilities in the Consolidated Balance Sheets. Deferred Taxes Deferred tax assets and liabilities on the consolidated balance sheets represent the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. The Company predominantly pays non-income state taxes as a percentage of premiums written which are accounted for as policy acquisition costs. State income taxes were $4, $3 and $4 for the years ended December 31, 2024, 2023 and 2022, respectively, and are included in other expenses. The Hartford has not recorded state deferred taxes, including net deferred tax assets from state operating loss carryforwards, because the Company does not expect to earn state taxable income to utilize such state tax benefits. Deferred Tax Assets (Liabilities)
| As of December 31,
| 2024 | 2023
Deferred tax assets |  |
Loss reserves and tax discount | $ | 550 |  | $ | 517 |
Unearned premium reserve and other underwriting related reserves | 517 |  | 483 |
Employee benefits | 181 |  | 172 |
Net unrealized losses on investments | 394 |  | 387 |
Net operating loss carryover | 41 |  | 45 |
Other | — |  | 1 |
Total deferred tax assets | 1,683 |  | 1,605 |
Valuation allowance | — |  | (12) |
Deferred tax assets, net of valuation allowance | 1,683 |  | 1,593 |
Deferred tax liabilities |  |
Deferred acquisition costs | (183) |  | (163) |
Investment-related items | (167) |  | (110) |
Other depreciable and amortizable assets | (91) |  | (147) |
Other | (13) |  | — |
Total deferred tax liabilities | (454) |  | (420) |
Net deferred tax asset | $ | 1,229 |  | $ | 1,173 |
Management has assessed the need for a valuation allowance against its deferred tax assets based on tax character and jurisdiction, and as part of this assessment, the Company reduced the valuation allowance related to the deferred tax asset for foreign net operating losses from $12 as of December 31, 2023 to $0 as of December 31, 2024. In making the assessment, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences, the ability to hold assets to recovery, and carryovers, taxable income in open carry back years and other tax planning strategies which management views as prudent and feasible. Uncertain Tax Positions Rollforward of Unrecognized Tax Benefits
| For the years ended December 31, |  |
| 2024 | 2023 | 2022 |  |
Balance, beginning of period | $ | 26 |  | $ | 22 |  | $ | 16 |  |  |
Gross increases - tax positions in current period | 3 |  | 5 |  | 6 |  |  |
Gross decreases - tax positions in current period | (1) |  | — |  | — |  |  |
Lapse of statute of limitations | (4) |  | (1) |  | — |  |  |
Balance, end of period | $ | 24 |  | $ | 26 |  | $ | 22 |  |  |
The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. The Company believes it is reasonably possible approximately $14 of its currently unrecognized tax benefits may be recognized by the end of 2025 as a result of a lapse of the applicable statute of limitations. Other Tax Matters The federal statute of limitations for the Company is closed through the 2020 tax year with the exception of NOL carryforwards utilized in open tax years and the Navigators pre-acquisition 2019 tax period. Management believes that adequate provision has been made in the Company's Consolidated Financial Statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years. The Company classifies interest and penalties (if applicable) as income tax expense in the Consolidated Financial Statements. The Company recognized net interest expenses of $1, $2 and $1 for the years ended December 31, 2024, 2023 and 2022. The Company does not believe it would be subject to any penalties in any open tax years and, therefore, has not recorded any accrual for penalties.

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