Income Taxes	9 Months Ended
Sep. 30, 2017
Income Taxes	6. Income Taxes The effective tax rate on earnings before income taxes for the first nine months of 2017 was 66.8 percent, compared with 29.3 percent for the first nine months of 2016. The 66.8 percent effective tax rate is calculated based on actual results through September 30, 2017 because management was not able to reliably estimate the annual effective tax rate in light of the recent catastrophe losses incurred. The effective tax rate in the first nine months of 2017 compared with the first nine months of 2016 primarily reflects income tax benefits from taxable losses arising from Hurricanes Harvey, Irma and Maria in the first nine months of 2017, and prior period income tax expense adjustments in the first nine months of 2016, which include $16.1 million of out-of-period reductions to current and deferred TransRe tax assets recorded in the first nine months of 2016 that related primarily to periods prior to Alleghany’s merger with TransRe in 2012. Alleghany believes that, as of September 30, 2017, it had no material uncertain tax positions. Interest and penalties relating to unrecognized tax expenses (benefits) are recognized in income tax expense, when applicable. There were no material liabilities for interest or penalties accrued as of September 30, 2017.

6. Income Taxes

The effective tax rate on earnings before income taxes for the first nine months of 2017 was 66.8 percent, compared with 29.3 percent for the first nine months of 2016. The 66.8 percent effective tax rate is calculated based on actual results through September 30, 2017 because management was not able to reliably estimate the annual effective tax rate in light of the recent catastrophe losses incurred. The effective tax rate in the first nine months of 2017 compared with the first nine months of 2016 primarily reflects income tax benefits from taxable losses arising from Hurricanes Harvey, Irma and Maria in the first nine months of 2017, and prior period income tax expense adjustments in the first nine months of 2016, which include $16.1 million of out-of-period reductions to current and deferred TransRe tax assets recorded in the first nine months of 2016 that related primarily to periods prior to Alleghany’s merger with TransRe in 2012.

Alleghany believes that, as of September 30, 2017, it had no material uncertain tax positions. Interest and penalties relating to unrecognized tax expenses (benefits) are recognized in income tax expense, when applicable. There were no material liabilities for interest or penalties accrued as of September 30, 2017.