Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Reconciliation of income taxes at the statutory rate and income taxes shown in the Statement of Earnings

	2011			2010			2009
Earnings before income taxes	$	560		$	689		$	812
Income taxes at statutory rate	$	196		$	241		$	284
Effect of:
Change in valuation allowance		44			(1	)		(7	)
Losses of managed investment entities		9			23			—
Goodwill impairment charge		—			8			—
Subsidiaries not in AFG’s tax return		5			6			8
Tax exempt interest		(23	)		(16	)		(10	)
Other		9			5			7
Provision for income taxes as shown on the Statement of Earnings	$	240		$	266		$	282

Components of income tax provision (credit)

	2011		2010			2009
Current taxes:
Federal	$	186	$	214		$	239
State		4		4			6
Foreign		—		(1	)		1
Deferred taxes:
Federal		23		63			51
Foreign		27		(14	)		(15	)
Provision for income taxes	$	240	$	266		$	282

Summary of operating loss carryforwards

	Expiring		Amount
Operating Loss — U.S.		2012 - 2020	$	73
		2021 - 2025		73
Operating Loss — United Kingdom	indefinite			79

Components of deferred tax assets and liabilities

	2011			2010
Deferred tax assets:
Federal net operating loss carryforwards	$	51		$	52
Foreign underwriting losses		42			32
Insurance claims and reserves		435			404
Employee benefits		94			93
Other, net		52			68
Total deferred tax assets before valuation allowance		674			649
Valuation allowance against deferred tax assets		(97	)		(54	)
Total deferred tax assets		577			595
Deferred tax liabilities:
Subsidiaries not in AFG’s tax return		(61	)		(56	)
Investment securities		(441	)		(324	)
Deferred acquisition costs		(278	)		(331	)
Total deferred tax liabilities		(780	)		(711	)
Net deferred tax liability	$	(203	)	$	(116	)

Progression of the liability for uncertain tax positions, excluding interest and penalties

	2011		2010		2009
Balance at January 1	$	52	$	36	$	36
Additions for tax positions of current year		7		16		—
Balance at December 31	$	59	$	52	$	36