Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes [Abstract]

Income Taxes

L. Income Taxes

Operating earnings before income taxes includes $20 million and $13 million in the second quarter of 2011 and 2010, respectively, and $55 million and $33 million in the first six months of 2011 and 2010, respectively, in non-deductible losses of managed investment entities attributable to noncontrolling interests, thereby increasing AFG’s effective tax rate.

There have been no material changes to AFG’s liability for uncertain tax positions, which is discussed in Note L - “Income Taxes,” to AFG’s 2010 Form 10-K.