Income Taxes (Tables)

9 Months Ended

Sep. 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 September 30,										Nine months ended September 30,
	2018					2017					2018					2017
	Amount			% of EBT		Amount			% of EBT		Amount			% of EBT		Amount			% of EBT
Earnings before income taxes (“EBT”)	$	244				$	29				$	678				$	457
Income taxes at statutory rate	$	51		21	%	$	10		35	%	$	142		21	%	$	160		35	%
Effect of:
Adjustment to prior year taxes	(9		)	(4	%)	(2		)	(7	%)	(9		)	(1	%)	(2		)	(1	%)
Tax exempt interest	(3		)	(1	%)	(5		)	(17	%)	(10		)	(1	%)	(17		)	(4	%)
Dividends received deduction	(1		)	—	%	(2		)	(7	%)	(3		)	—	%	(6		)	(1	%)
Employee Stock Ownership Plan dividends paid deduction	(1		)	—	%	—			—	%	(2		)	—	%	(2		)	—	%
Stock-based compensation	—			—	%	(1		)	(3	%)	(7		)	(1	%)	(14		)	(3	%)
Foreign operations	—			—	%	1			3	%	3			—	%	7			2	%
Nondeductible expenses	1			—	%	2			7	%	5			1	%	5			1	%
Change in valuation allowance	1			—	%	16			55	%	3			—	%	16			4	%
Other	2			1	%	(1		)	(4	%)	4			—	%	(1		)	(1	%)
Provision for income taxes as shown in the statement of earnings	$	41		17	%	$	18		62	%	$	126		19	%	$	146		32	%