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Income Taxes
 6 Months Ended
Jun. 30, 2024
Income Taxes
(15) Income Taxes
The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the periods indicated:
 
 
  
Three months ended

June 30,
 
 
Six months ended

June 30,
 
 
  
2024
 
 
2023
 
 
2024
 
 
2023
 
Statutory U.S. federal income tax rate
      21.0 %      21.0 %      21.0 %      21.0 % 
Increase in rate resulting from:
         
Tax on income from terminated swaps
      (0.2 )      3.4       3.8       3.6  
Non-deductible
expenses
      0.4       0.7       1.1       0.8  
Other, net
      1.2       (0.2 )      —        0.2  
  
 
 
    
 
 
    
 
 
    
 
 
  
Effective rate
      22.4 %      24.9 %      25.9 %      25.6 % 
  
 
 
    
 
 
    
 
 
    
 
 
  
The effective tax rate for the three months ended June 30, 2023 and the six months ended June 30, 2024 and 2023 was above the statutory U.S. federal income tax rate of 21% largely due to tax expense on certain forward starting swap gains that are tax effected at the previously enacted federal income tax rate of 35% as they are amortized into net investment income. The decrease in the effective tax rate for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 was primarily attributable to the change in the interim period tax provision methodology described below.
U.S. GAAP generally requires an annualized effective tax rate to be used for interim reporting periods, utilizing projections of full year results. However, in certain circumstances it is appropriate to record the actual effective tax rate for the period if a reliable estimate cannot be made for the full year. Although we used the annualized projected effective tax rate during the interim reporting period ending March 31, 2024 for all segments, we concluded that using an actual effective tax rate reflecting actual year-to-date income (loss) provides a better estimate for our Long-Term Care Insurance and Life and Annuities segments for interim reporting. Accordingly, for the three and six months ended June 30, 2024, we utilized the actual effective tax rate for the interim period to record the provision for income taxes for our Long-Term Care Insurance and Life and Annuities segments and the annualized projected effective tax rate for our Enact segment and Corporate and Other. This method was also utilized for the three and six months ended June 30, 2023.