Income Taxes |
9 Months Ended |
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Sep. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 15 – Income Taxes Income Tax Expense The effective tax rates of 14.0% and 15.9% for the three and nine months ended September 30, 2025, respectively, were lower than the effective tax rates of 30.8% and 31.2% for the three and nine months ended September 30, 2024, respectively. The decrease in the three and nine months comparative rates was primarily due to the absence of a valuation allowance related to the impairment of equity securities in 2024, partially offset by the absence of tax benefits recorded in 2024 related to the release of tax reserves following favorable state audit resolutions. During the three months ended September 30, 2025, the reallocation of the HCSC transaction purchase price by legal entity resulted in an equal write-off of the deferred tax asset ("DTA") and valuation allowance associated with the tax-deductible capital loss on the sale, resulting in zero net impact on the Company's total tax provision. Additionally, the decrease in valuation allowance associated with the tax-deductible capital loss on the sale recorded in the three months ended September 30, 2025 generated a substantial portion of the after-tax gain on sale discussed in Note 5 to the Consolidated Financial Statements. This valuation allowance decrease was offset by an increase in valuation allowance associated with DTAs on the impairment of equity securities, as discussed below. As such, there was no material change to the realizability assessment of the Company's consolidated DTAs and no material net impact to the Company's consolidated tax expense. We continue to monitor and evaluate the need for any additional valuation allowance. As of September 30, 2025, we had approximately $824 million in DTAs associated with the impairment of equity securities as well as unrealized investment losses. A valuation allowance of $788 million and $635 million as of the nine months ended September 30, 2025 and September 30, 2024, respectively, primarily relates to the impairment of equity securities discussed in Note 11 to the Consolidated Financial Statements. The increase in valuation allowance primarily associated with the impairment of equity securities resulted from the reallocation of available sources of capital income, as discussed above.
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