Income Taxes

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The differences between the 21% statutory federal income tax rate and our effective income tax rate were as follows:

(Dollars in millions)	Three months ended March 31,
	2024				2023
Tax at statutory rate:	$	200	21.0	%	$	56	21.0	%
Increase (decrease) resulting from:
Tax-exempt income from municipal bonds	(5)		(0.5)		(5)		(1.9)
Dividend received exclusion	(5)		(0.5)		(5)		(1.9)
Other	8		0.8		(3)		(1.2)
Provision for income taxes	$	198	20.8	%	$	43	16.0	%

The provision for federal income taxes is based upon filing a consolidated income tax return for the company and its domestic subsidiaries.

We continue to believe that after considering all positive and negative evidence of taxable income in the carryback and carryforward periods as permitted by law, it is more likely than not that all of the deferred tax assets on our U.S. domestic operations and those related to Cincinnati Global Underwriting Ltd.SM (Cincinnati Global) will be realized. As a result, we have no valuation allowance for our U.S. domestic operations or Cincinnati Global at both March 31, 2024, and December 31, 2023.

Cincinnati Global

Cincinnati Global had no operating loss carryforwards in the United States and $91 million and $100 million in the United Kingdom at March 31, 2024, and December 31, 2023, respectively. These Cincinnati Global losses can only be utilized within the Cincinnati Global group.