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Income Taxes
 9 Months Ended
Sep. 30, 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 September 30, 

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For the nine months ended September 30, 

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2025

    

2024

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2025

    

2024

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($ in millions)

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Income before income taxes

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$

248.4

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$

(293.8)

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$

780.4

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$

777.2

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​

​

​

​

​

​

​

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Expected tax at the U.S. statutory rate

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$

52.2

 

$

(61.7)

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$

163.9

 

$

163.2

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Tax credits

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​

(19.1)

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(19.9)

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(71.3)

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(54.8)

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Dividends received deduction

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(23.1)

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(19.3)

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(61.1)

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(57.0)

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Impact of equity method presentation

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(7.2)

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(9.8)

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(18.0)

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(20.9)

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Interest exclusion from taxable income

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(6.2)

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(5.9)

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(17.1)

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(17.8)

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Impact of noncontrolling interest presentation

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(4.3)

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(5.6)

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(13.1)

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(6.3)

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Changes in unrecognized tax benefits – Tax Cuts and Jobs Act of 2017 rate change

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—

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—

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(5.4)

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—

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Local country permanent tax adjustments

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0.3

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(6.6)

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(2.5)

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(4.4)

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Low income housing tax credit amortization

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9.7

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11.9

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34.1

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32.9

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State income taxes

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​

6.5

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5.3

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18.2

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27.4

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Foreign country statutory rate differential

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​

4.1

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6.0

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17.1

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2.8

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Valuation allowance

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​

2.2

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3.3

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3.5

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18.7

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Other

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(0.6)

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1.9

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1.8

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(2.0)

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Income taxes

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$

14.5

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$

(100.4)

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$

50.1

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$

81.8

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Effective income tax rate

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​

6

%  

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34

%

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6

%  

​

11

%

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Unrecognized Tax Benefits

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During the second quarter 2025, we recognized a $5.4 million tax benefit upon releasing an unrecognized tax benefit (“UTB”) at the 35% federal rate in force before the Tax Cuts and Jobs Act of 2017 (“TCJA”). The UTB was previously remeasured to the current U.S. tax rate of 21% upon enactment of TCJA.

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Recent Change in Tax Legislation

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On July 4, 2025, the United States enacted Public Law 119-21. The accounting consequences of a change in tax law are required to be recognized in the period legislation is enacted. Generally, a company is also required to consider the impact of new tax law on realizability of deferred tax assets (“DTAs”), including determination of whether a change in valuation allowance is necessary. We evaluated the provisions of Public Law 119-21 and incorporated the effects into our third quarter 2025 financial statements, which were not material. We will continue to monitor developments related to the legislation and assess any future impacts as additional guidance becomes available.

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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 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.