Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 38

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 awards, restricted stock units and stock awards. In the first nine 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 $4 million in both the third quarter of 2025 and 2024 and $13 million in both the first nine months of 2025 and 2024.

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

K.    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 30,2025202420252024Amount% of EBTAmount% of EBTAmount% of EBTAmount% of EBTEarnings before income taxes (“EBT”)$268 $229 $694 $804 Income taxes at statutory rate$57 21%$48 21%$146 21%$169 21%Effect of:Change in valuation allowance(6)(2%)(2)(1%)(6)(1%)(2)—%Adjustment to prior year taxes(5)(2%)1 —%(5)(1%)1 —%Tax exempt interest(1)—%(1)—%(3)—%(3)(1%)Employee stock ownership plan dividend paid deduction— —%(1)—%(2)—%(3)(1%)Dividends received deduction(1)—%— —%(2)—%(1)—%Stock-based compensation— —%— —%(1)—%(2)—%Nondeductible expenses3 1%2 1%9 1%6 1%Adjustment related to sale of subsidiary— —%— —%7 1%4 1%Foreign operations1 —%1 —%4 1%1 —%Other5 2%— —%4 —%2 —%Provision for income taxes as shown in the statement of earnings$53 20%$48 21%$151 22%$172 21%In the second quarter of 2025, AFG recorded $7