Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

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

	Three months ended March 31,
	2020					2019
	Amount			% of EBT		Amount			% of EBT
Earnings (loss) before income taxes (“EBT”)	$	(388	)			$	413
Income taxes at statutory rate	$	(81	)	21	%	$	87		21	%
Effect of:
Stock-based compensation	(4		)	1	%	(2		)	—	%
Tax exempt interest	(3		)	1	%	(4		)	(1	%)
Dividends received deduction	(1		)	—	%	(1		)	—	%
Nondeductible expenses	2			(1	%)	2			—	%
Change in valuation allowance	2			(1	%)	2			—	%
Foreign operations	1			—	%	—			—	%
Other	—			1	%	3			1	%
Provision (credit) for income taxes as shown in the statement of earnings	$	(84	)	22	%	$	87		21	%

Approximately $23 million of AFG’s net operating loss carryforwards (“NOL”) subject to separate return limitation year (“SRLY”) tax rules will expire unutilized at December 31, 2020. Since AFG maintains a full valuation allowance against its SRLY NOLs, the expiration of these loss carryforwards will be offset by a corresponding reduction in the valuation allowance and will have no overall impact on AFG’s income tax expense or results of operations.