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Income Taxes
 3 Months Ended
Mar. 31, 2025
Income Taxes  
Income Taxes

13. Income Taxes

Effective Income Tax Rate

Our provision for income taxes may not have the customary relationship of taxes to income. A reconciliation between the income tax provision at the U.S. corporate income tax rate and the income tax expense (benefit) at the effective income tax rate was as follows:

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For the three months ended March 31, 

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2025

    

2024

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($ in millions)

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Income before income taxes

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$

28.9

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$

627.1

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Expected tax at the U.S. statutory rate

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$

6.1

 

$

131.7

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Tax credits

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(29.6)

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(16.2)

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Dividends received deduction

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(18.2)

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(19.4)

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Impact of equity method presentation

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(5.7)

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(4.7)

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Interest exclusion from taxable income

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(5.2)

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(5.8)

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Employee compensation

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(3.4)

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(3.6)

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Low income housing tax credit amortization

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​

12.2

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10.6

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Foreign country statutory rate differential

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9.6

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(2.4)

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State income taxes

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​

1.9

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4.7

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Other

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(1.7)

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0.2

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Income taxes (benefits)

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$

(34.0)

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$

95.1

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Effective income tax rate

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(118)

%  

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15

%

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The lower effective tax rate for the three months ended March 31, 2025, was primarily the result of a decrease in pre - tax income with no proportionate change in permanent tax differences.

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Pillar Two Model Rules

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We are currently monitoring global enactments of the Pillar Two model rules proposed by the Organisation for Economic Co-operation and Development, which brings forward a 15% global minimum tax. Generally, a company is required to consider the impact of new tax law on realizability of its deferred tax assets (“DTAs”), including determination of whether a change to its valuation allowance amounts is necessary. We made an accounting policy election to disregard the Pillar Two model rules when evaluating DTAs and rather recognize a current period tax expense when incurred.