v3.26.1
Income Taxes
 6 Months Ended
Jun. 30, 2026
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 June 30,Six months ended June 30,
2026202520262025
Amount% of EBTAmount% of EBTAmount% of EBTAmount% of EBT
Earnings before income taxes (“EBT”)
$316 $229 $555 $426 
Income taxes at statutory rate$67 21%$48 21%$117 21%$89 21%
Effect of:
State and local income taxes, net of federal income tax effect2 1%7 3%5 1%10 2%
Income tax credits(1)—%— —%(5)(1%)— —%
Impact of nontaxable or nondeductible items:
Tax preference investments(1)—%(2)(1%)(2)—%(3)(1%)
Other3 1%2 1%4 1%2 1%
Other adjustments(2)(1%)— —%(3)(1%)— —%
Provision for income taxes as shown in the statement of earnings
$68 22%$55 24%$116 21%$98 23%

In the second quarter of 2025, AFG recorded $7 million in net tax expense related to a pending state income tax examination regarding the sale of a subsidiary in a prior year.