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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2024
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) | 2024 |  | 2023 |  | 2022
Current tax expense (benefit): |  |  |  |  |
U.S. | $ | 152 |  |  | $ | 284 |  |  | $ | 76 |
Non-U.S. | 19 |  |  | 7 |  |  | 5 |
Total current tax expense (benefit) | 171 |  |  | 291 |  |  | 81 |
Deferred tax expense (benefit): |  |  |  |  |
U.S. | (52) |  |  | (76) |  |  | (90) |
Non-U.S. | 1 |  |  | (578) |  |  | — |
Total deferred tax expense (benefit) | (51) |  |  | (654) |  |  | (90) |
Total income tax expense (benefit) | $ | 120 |  |  | $ | (363) |  |  | $ | (9) |
(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,
| 2024 |  | 2023 |  | 2022
(Dollars in millions) | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S.
Underwriting gain (loss) | $ | (891) |  |  | $ | 536 |  |  | $ | 533 |  |  | $ | 686 |  |  | $ | (81) |  |  | $ | 558 |
Net investment income | 1,219 |  |  | 734 |  |  | 954 |  |  | 479 |  |  | 607 |  |  | 223 |
Net realized capital gains (losses) | 34 |  |  | (15) |  |  | (190) |  |  | (86) |  |  | (426) |  |  | (29) |
Net derivative gain (loss) | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |
Corporate expenses | (19) |  |  | (76) |  |  | (18) |  |  | (55) |  |  | (26) |  |  | (35) |
Interest, fee and bond issue cost amortization expense | (150) |  |  | 1 |  |  | (134) |  |  | — |  |  | (101) |  |  | — |
Other income (expense) | 64 |  |  | 57 |  |  | (13) |  |  | (3) |  |  | (6) |  |  | (96) |
Pre-tax income (loss) | $ | 257 |  |  | $ | 1,237 |  |  | $ | 1,132 |  |  | $ | 1,022 |  |  | $ | (32) |  |  | $ | 620 |
Expected tax provision at the applicable statutory rate(s) | 54 |  |  | 19 |  |  | 238 |  |  | 26 |  |  | (9) |  |  | — |
Increase (decrease) in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |
Tax exempt income | (1) |  |  | — |  |  | (3) |  |  | — |  |  | (4) |  |  | — |
Dividend received deduction | (3) |  |  | — |  |  | (2) |  |  | — |  |  | (3) |  |  | — |
Proration | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |
Affiliated preferred stock dividends | 7 |  |  | — |  |  | 7 |  |  | — |  |  | 7 |  |  | — |
Creditable foreign premium tax | (14) |  |  | — |  |  | (14) |  |  | — |  |  | (11) |  |  | — |
Share-based compensation tax benefits formerly in APIC | (1) |  |  | — |  |  | (3) |  |  | — |  |  | (3) |  |  | — |
BEAT Tax | 66 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Valuation allowance | — |  |  | — |  |  | — |  |  | (13) |  |  | — |  |  | 5 |
Bermuda corporate income tax | — |  |  | — |  |  | — |  |  | (578) |  |  | — |  |  | 5 |
Insurance corporate-owned life insurance | (18) |  |  | — |  |  | (13) |  |  | — |  |  | (1) |  |  | — |
Other | 9 |  |  | 1 |  |  | (3) |  |  | (6) |  |  | 6 |  |  | — |
Total income tax provision | $ | 100 |  |  | $ | 20 |  |  | $ | 208 |  |  | $ | (571) |  |  | $ | (14) |  |  | $ | 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) | 2024 |  | 2023
Deferred tax assets: |  |  |
Bermuda economic transition adjustment | $ | 536 |  |  | $ | 536 |
Loss reserves | 313 |  |  | 270 |
Unearned premium reserves | 152 |  |  | 143 |
Net unrealized investment losses | 138 |  |  | 67 |
Depreciation | 55 |  |  | 44 |
Unrealized foreign currency losses | 35 |  |  | 15 |
Net operating loss carryforward | 24 |  |  | 18 |
Lease liability | 23 |  |  | 27 |
Foreign tax credits | 16 |  |  | — |
Capital loss carryforward | 14 |  |  | — |
Equity compensation | 10 |  |  | 8 |
Investment impairments | 10 |  |  | 12 |
Uncollectible reinsurance reserves | — |  |  | 3 |
Net unrealized losses on benefit plans | — |  |  | 4 |
Other assets | 21 |  |  | 22 |
Total deferred tax assets | 1,347 |  |  | 1,169 |
Deferred tax liabilities: |  |  |
Deferred acquisition costs | 171 |  |  | 139 |
Net fair value income | 74 |  |  | 74 |
Partnership investments | 43 |  |  | 49 |
Right of use asset | 19 |  |  | 23 |
Deferred investment income | 12 |  |  | — |
Benefit plan asset | — |  |  | 3 |
Other liabilities | 13 |  |  | 11 |
Total deferred tax liabilities | 332 |  |  | 299 |
Net deferred tax assets | 1,015 |  |  | 870 |
Less: Valuation allowance | (25) |  |  | (15) |
Total net deferred tax assets/(liabilities) | $ | 990 |  |  | $ | 855 |
(Some amounts may not reconcile due to rounding.)

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