v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
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 June 30,Six months ended June 30,
2026202520262025
Tax at statutory rate:$331 21.0 %$180 21.0 %$399 21.0 %$153 21.0 %
Increase (decrease) resulting from:        
Nontaxable or nondeductible items
Tax-exempt income from municipal bonds(6)(0.4)(6)(0.7)(12)(0.6)(11)(1.5)
Dividend received exclusion(6)(0.4)(6)(0.7)(12)(0.6)(11)(1.5)
Other nontaxable or nondeductible items— — — — (1)(0.1)2 0.3 
Other2 0.2 2 0.3 (1)(0.1)(1)(0.1)
Provision for income taxes$321 20.4 %$170 19.9 %$373 19.6 %$132 18.2 %
 
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 June 30, 2026, and December 31, 2025.

Cincinnati Global
Cincinnati Global had no operating loss carryforwards in the United States and $26 million and $50 million in the United Kingdom at June 30, 2026, and December 31, 2025, respectively. These Cincinnati Global losses can only be utilized within the Cincinnati Global group.