Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 78

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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1 $(12)$(331)(*)The reclassification adjustments affected the following lines in AFG’s Statement of Earnings:OCI componentAffected line in the statement of earningsPretax - Net unrealized gains (losses) on securitiesRealized gains (losses) on securitiesPretax - Net unrealized gains (losses) on cash flow hedgesNet investment incomeTaxProvision for income taxesStock Incentive Plans   Under AFG’s stock incentive plans, employees of AFG and its subsidiaries are eligible to receive equity awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units and stock awards. In the first six months of 2025, AFG issued 166,297 shares of restricted Common Stock (fair value of $121.89 per share) under the stock incentive plans.Total compensation expense related to stock incentive plans of AFG and its subsidiaries was $5 million in both the second quarter of 2025 and 2024 and $9 million in both the first six months of 2025 and 2024, respectively.

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Table of ContentsAMERICAN FINANCIAL GROUP, INC. 10-QNOTES TO CONSOLIDATED FINANCIAL STATEMENTS — CONTINUED

J.    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 30,2025202420252024Amount% of EBTAmount% of EBTAmount% of EBTAmount% of EBTEarnings before income taxes (“EBT”)$229 $271 $426 $575 Income taxes at statutory rate$48 21%$57 21%$89 21%$121 21%Effect of:Employee stock ownership plan dividend paid deduction— —%— —%(2)(1%)(2)—%Tax exempt interest(1)—%(1)—%(2)(1%)(2)(1%)Stock-based compensation— —%— —%(1)—%(2)—%Dividends received deduction(1)—%(1)—%(1)—%(1)—%Nondeductible expenses3 1%2 1%6 1%4 1%Adjustment related to sale of subsidiary7 3%4 1%7