Income Taxes

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following is a reconciliation of income taxes at the statutory rate of 35% to the provision for income taxes as shown in the Statement of Earnings (in millions):

	Three months ended June 30,										Six months ended June 30,
	2013					2012					2013					2012
	Amount			% of EBT		Amount			% of EBT		Amount			% of EBT		Amount			% of EBT
Earnings before income taxes (“EBT”)	$	126				$	136				$	301				$	282
Income taxes at statutory rate	$	44		35	%	$	48		35	%	$	105		35	%	$	99		35	%
Effect of:
Tax exempt interest	(6		)	(5	%)	(6		)	(4	%)	(11		)	(4	%)	(12		)	(4	%)
Losses of managed investment entities	11			9	%	6			4	%	15			5	%	16			6	%
Subsidiaries not in AFG’s tax return	(1		)	(1	%)	1			1	%	—			—	%	2			1	%
Other	1			1	%	3			2	%	2			1	%	5			1	%
Provision for income taxes as shown on the Statement of Earnings	$	49		39	%	$	52		38	%	$	111		37	%	$	110		39	%

During the second quarter and first six months of 2013, there were no material changes to AFG’s liability for uncertain tax positions, which is discussed in Note L — “Income Taxes,” to AFG’s 2012 Form 10-K.