v3.25.0.1
Federal Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Federal Income Tax Expense
The federal income tax expense (benefit) on continuing operations (in millions) was as follows:

For the Years Ended December 31,
202420232022
Current$6 $(3)$3 
Deferred741 (393)364 
Federal income tax expense (benefit)$747 $(396)$367 
Reconciliation of effective tax rate differences
A reconciliation of the effective tax rate differences (in millions) was as follows:

For the Years Ended December 31,
202420232022
Income (loss) before taxes$4,022 $(1,148)$1,725 
Federal statutory rate21 %21 %21 %
Federal income tax expense (benefit) at federal statutory rate845 (241)362 
Effect of:
Tax-preferred investment income (1)
(32)(126)(90)
Tax credits(39)(40)(42)
Excess tax expense (benefit) from stock-based
compensation3 4 (1)
Goodwill impairment– – 133 
Release of uncertain tax positions(41)– – 
Other items11 7 5 
Federal income tax expense (benefit)$747 $(396)$367 
Effective tax rate19 %34 %21 %

(1) Relates primarily to separate account dividends eligible for the dividends-received deduction.
Federal Income Tax Asset Liability
The federal income tax asset (liability) (in millions) was as follows:

As of December 31,
20242023
Current$107 $112 
Deferred604 929 
Total federal income tax asset (liability)$711 $1,041 
Significant components of deferred tax assets and liabilities
Significant components of our deferred tax assets and liabilities (in millions) were as follows:

As of December 31,
20242023
Deferred Tax Assets
Insurance liabilities and reinsurance-related balances$1,856 $1,900 
Net unrealized loss on fixed maturity AFS securities2,164 1,826 
Reinsurance-related embedded derivative liabilities6 116 
Compensation and benefit plans206 184 
Intangibles17 18 
Net unrealized loss on trading securities30 33 
Tax credits169 131 
Net operating losses478 87 
Capital losses56 93 
Total deferred tax assets$4,982 $4,388 
Deferred Tax Liabilities
DAC and VOBA$1,638 $1,744 
Investment activity1,486 617 
Deferred loss on reinsurance474 465 
MRB-related activity743 429 
Other37 204 
Total deferred tax liabilities$4,378 $3,459 
Net deferred tax asset (liability)$604 $929 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the gross unrecognized federal tax benefits (in millions) was as follows:

For the Years Ended December 31,
20242023
Balance as of beginning-of-year$87 $68 
Decreases for prior year tax positions(48)(6)
Increases for prior year tax positions– 25 
Balance as of end-of-year$39 $87