Income Taxes (Tables)

9 Months Ended

Sep. 30, 2023

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 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,
	2023				2022				2023				2022
	Amount		% of EBT		Amount		% of EBT		Amount		% of EBT		Amount		% of EBT
Earnings before income taxes (“EBT”)	$	219			$	210			$	738			$	777
Income taxes at statutory rate	$	46	21	%	$	44	21	%	$	155	21	%	$	163	21	%
Effect of:
Adjustment to prior year taxes	(5)		(2	%)	(3)		(2	%)	(5)		(1	%)	(3)		—	%
Tax exempt interest	(2)		(1	%)	(1)		—	%	(4)		(1	%)	(5)		(1	%)
Employee stock ownership plan dividend paid deduction	—		—	%	(1)		—	%	(3)		—	%	(7)		(1	%)
Stock-based compensation	—		—	%	—		—	%	(2)		—	%	(4)		(1	%)
Change in valuation allowance	(2)		(1	%)	2		1	%	(2)		—	%	1		—	%
Dividends received deduction	—		—	%	—		—	%	(1)		—	%	(1)		—	%
Nondeductible expenses	3		1	%	2		1	%	8		1	%	5		1	%
Foreign operations	2		1	%	1		—	%	6		1	%	6		1	%
Other	—		—	%	1		—	%	(3)		(1	%)	—		—	%
Provision for income taxes as shown in the statement of earnings	$	42	19	%	$	45	21	%	$	149	20	%	$	155	20	%