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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Components of the Provision | The significant components of the provision are as follows for the periods indicated:
| Years Ended December 31,
(Dollars in millions) | 2023 |  | 2022 |  | 2021
Current tax expense (benefit): |  |  |  |  |
U.S. | $ | 284 |  |  | $ | 76 |  |  | $ | 124 |
Non-U.S. | 7 |  |  | 5 |  |  | 2 |
Total current tax expense (benefit) | 291 |  |  | 81 |  |  | 126 |
Deferred tax expense (benefit): |  |  |  |  |
U.S. | (76) |  |  | (90) |  |  | 38 |
Non-U.S. | (578) |  |  | — |  |  | 3 |
Total deferred tax expense (benefit) | (654) |  |  | (90) |  |  | 41 |
Total income tax expense (benefit) | $ | (363) |  |  | $ | (9) |  |  | $ | 167 |
(Some amounts may not reconcile due to rounding.)
Schedule of Reconciliation of Provision for Income Taxes and Expected Tax Provision | Reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate for the periods indicated is provided below:
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
(Dollars in millions) | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S.
Underwriting gain (loss) | $ | 533 |  |  | $ | 686 |  |  | $ | (81) |  |  | $ | 558 |  |  | $ | (83) |  |  | $ | 307 |
Net investment income | 954 |  |  | 479 |  |  | 607 |  |  | 223 |  |  | 708 |  |  | 457 |
Net realized capital gains (losses) | (190) |  |  | (86) |  |  | (426) |  |  | (29) |  |  | 266 |  |  | (8) |
Net derivative gain (loss) | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 3 |
Corporate expenses | (18) |  |  | (55) |  |  | (26) |  |  | (35) |  |  | (33) |  |  | (34) |
Interest, fee and bond issue cost amortization expense | (134) |  |  | — |  |  | (101) |  |  | — |  |  | (70) |  |  | — |
Other income (expense) | (13) |  |  | (3) |  |  | (6) |  |  | (96) |  |  | 23 |  |  | 11 |
Pre-tax income (loss) | $ | 1,132 |  |  | $ | 1,022 |  |  | $ | (32) |  |  | $ | 620 |  |  | $ | 811 |  |  | $ | 735 |
Expected tax provision at the applicable statutory rate(s) | 238 |  |  | 26 |  |  | (9) |  |  | — |  |  | 170 |  |  | 14 |
Increase (decrease) in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |
Tax exempt income | (3) |  |  | — |  |  | (4) |  |  | — |  |  | (4) |  |  | — |
Dividend received deduction | (2) |  |  | — |  |  | (3) |  |  | — |  |  | (1) |  |  | — |
Proration | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |
Affiliated preferred stock dividends | 7 |  |  | — |  |  | 7 |  |  | — |  |  | 7 |  |  | — |
Creditable foreign premium tax | (14) |  |  | — |  |  | (11) |  |  | — |  |  | (13) |  |  | — |
Tax audit settlement | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Share-based compensation tax benefits formerly in APIC | (3) |  |  | — |  |  | (3) |  |  | — |  |  | (2) |  |  | — |
Valuation allowance | — |  |  | (13) |  |  | — |  |  | 5 |  |  | — |  |  | (10) |
Bermuda corporate income tax | — |  |  | (578) |  |  | — |  |  | 5 |  |  | — |  |  | — |
Insurance company-owned life insurance | (13) |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | — |
Other | (3) |  |  | (6) |  |  | 6 |  |  | — |  |  | 3 |  |  | 1 |
Total income tax provision | $ | 208 |  |  | $ | (571) |  |  | $ | (14) |  |  | $ | 5 |  |  | $ | 161 |  |  | $ | 5 |
(Some amounts may not reconcile due to rounding.)
Schedule of Net Deferred Income Tax Assets/(Liabilities) | The principal items making up the net deferred income tax assets/(liabilities) are as follows for the periods indicated:
| Years Ended December 31,
(Dollars in millions) | 2023 |  | 2022
Deferred tax assets: |  |  |
Bermuda intangible asset | $ | 536 |  |  | $ | — |
Loss reserves | 270 |  |  | 154 |
Unearned premium reserves | 143 |  |  | 114 |
Net unrealized investment losses | 67 |  |  | 218 |
Depreciation | 44 |  |  | — |
Lease liability | 27 |  |  | 29 |
Net operating loss carryforward | 18 |  |  | 28 |
Net Unrealized foreign currency losses | 15 |  |  | 24 |
Investment impairments | 12 |  |  | 12 |
Equity compensation | 8 |  |  | 8 |
Net unrealized losses on benefit plans | 4 |  |  | 9 |
Uncollectible reinsurance reserves | 3 |  |  | 3 |
Foreign tax credits | — |  |  | 3 |
Other assets | 22 |  |  | 10 |
Total deferred tax assets | 1,169 |  |  | 611 |
Deferred tax liabilities: |  |  |
Deferred acquisition costs | 139 |  |  | 105 |
Net fair value income | 74 |  |  | 7 |
Partnership investments | 49 |  |  | 56 |
Right of use asset | 23 |  |  | 25 |
Benefit plan asset | 3 |  |  | 3 |
Depreciation | — |  |  | 16 |
Other liabilities | 11 |  |  | 8 |
Total deferred tax liabilities | 299 |  |  | 220 |
Net deferred tax assets | 870 |  |  | 392 |
Less: Valuation allowance | (15) |  |  | (25) |
Total net deferred tax assets/(liabilities) | $ | 855 |  |  | $ | 367 |
(Some amounts may not reconcile due to rounding.)

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