Income Taxes (Tables)

9 Months Ended

Sep. 30, 2022

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 on continuing operations 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 September 30,								Nine months ended September 30,
	2022				2021				2022				2021
	Amount		% of EBT		Amount		% of EBT		Amount		% of EBT		Amount		% of EBT
Earnings from continuing operations before income taxes (“EBT”)	$	210			$	267			$	777			$	890
Income taxes at statutory rate	$	44	21	%	$	56	21	%	$	163	21	%	$	187	21	%
Effect of:
Employee stock ownership plan dividend paid deduction	(1)		—	%	(2)		(1	%)	(7)		(1	%)	(10)		(1	%)
Stock-based compensation	—		—	%	(2)		(1	%)	(4)		(1	%)	(12)		(1	%)
Tax exempt interest	(1)		—	%	(2)		(1	%)	(5)		(1	%)	(6)		(1	%)
Adjustment to prior year taxes	(3)		(2	%)	(1)		—	%	(3)		—	%	(1)		—	%
Dividends received deduction	—		—	%	—		—	%	(1)		—	%	(1)		—	%
Foreign operations	1		—	%	2		1	%	6		1	%	—		—	%
Nondeductible expenses	2		1	%	2		1	%	5		1	%	6		1	%
Change in valuation allowance	2		1	%	(2)		(1	%)	1		—	%	1		—	%
Other	1		—	%	(3)		(1	%)	—		—	%	—		(1	%)
Provision for income taxes as shown in the statement of earnings	$	45	21	%	$	48	18	%	$	155	20	%	$	164	18	%