Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 37

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 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 2%4 1%Foreign operations1 —%— —%3 1%— —%Other(2)(1%)1 —%(1)—%2 —%Provision for income taxes as shown in the statement of earnings$55 24%$62 23%$98 23%$124 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