Income Taxes (Tables)

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

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

The following is a reconciliation of income taxes at the statutory rate (21% in 2018 and 35% in 2017) to the provision for income taxes as shown in AFG’s Statement of Earnings (dollars in millions):

	Three months ended June 30,										Six months ended June 30,
	2018					2017					2018					2017
	Amount			% of EBT		Amount			% of EBT		Amount			% of EBT		Amount			% of EBT
Earnings before income taxes (“EBT”)	$	260				$	205				$	434				$	428
Income taxes at statutory rate	$	54		21	%	$	72		35	%	$	91		21	%	$	150		35	%
Effect of:
Stock-based compensation	(2		)	(1	%)	(7		)	(3	%)	(7		)	(2	%)	(13		)	(3	%)
Tax exempt interest	(4		)	(2	%)	(6		)	(3	%)	(7		)	(2	%)	(12		)	(3	%)
Dividends received deduction	(1		)	—	%	(2		)	(1	%)	(2		)	—	%	(4		)	(1	%)
Employee Stock Ownership Plan dividends paid deduction	(1		)	—	%	(2		)	(1	%)	(1		)	—	%	(2		)	—	%
Foreign operations	—			—	%	—			—	%	3			1	%	6			1	%
Nondeductible expenses	2			1	%	1			—	%	4			1	%	3			1	%
Change in valuation allowance	2			1	%	2			1	%	2			—	%	—			—	%
Other	2			—	%	2			1	%	2			1	%	—			—	%
Provision for income taxes as shown in the statement of earnings	$	52		20	%	$	60		29	%	$	85		20	%	$	128		30	%