Income Taxes

3 Months Ended

Mar. 31, 2016

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 AFG’s Statement of Earnings (dollars in millions):

	Three months ended March 31,
	2016					2015
	Amount			% of EBT		Amount			% of EBT
Earnings before income taxes (“EBT”)	$	156				$	30
Income taxes at statutory rate	$	55		35	%	$	10		35	%
Effect of:
Tax exempt interest	(7		)	(4	%)	(7		)	(23	%)
Change in valuation allowance	1			1	%	(1		)	(3	%)
Subsidiaries not in AFG’s tax return	1			—	%	1			3	%
Other	2			1	%	2			5	%
Provision for income taxes as shown in the statement of earnings	$	52		33	%	$	5		17	%

During the first three months of 2016, there were no material changes to AFG’s liability for uncertain tax positions. Excluding the tax benefit from the estimated loss on the sale of the long-term care insurance business, AFG’s effective tax rate was 32% for the first three months of 2015.