v3.26.3
Income Taxes
 9 Months Ended
Sep. 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 September 30,Nine months ended September 30,
2026202520262025
Amount% of EBTAmount% of EBTAmount% of EBTAmount% of EBT
Earnings before income taxes (“EBT”)
$359 $268 $914 $694 
Income taxes at statutory rate$75 21%$57 21%$192 21%$146 21%
Effect of:
State and local income taxes, net of federal income tax effect2 1%— —%7 1%10 1%
Foreign tax effects(1)(1%)(1)—%(1)—%(1)—%
Cross-border tax laws— —%(2)—%— —%(2)—%
Income tax credits(2)(1%)(3)(1%)(7)(1%)(3)—%
Changes in valuation allowance— —%(5)(2%)— —%(5)—%
Impact of nontaxable or nondeductible items:
Tax preference investments(1)(1%)(3)(1%)(3)(1%)(5)(1%)
Other2 1%4 1%6 1%5 1%
Changes in unrecognized income tax benefits— —%3 1%— —%3 —%
Other adjustments2 1%3 1%(1)—%3 —%
Provision for income taxes as shown in the statement of earnings
$77 21%$53 20%$193 21%$151 22%

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.