Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 189

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 189
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 fourth quarter of 2024 and the fourth quarter of 2023.

Realized Gains (Losses) on Securities

AFG’s realized gains (losses) on securities were net losses of $10 million in the fourth quarter of 2024 compared to net gains of $31 million in the fourth quarter of 2023, a change of $41 million (132%). Realized gains (losses) on securities consisted of the following (in millions):

Three months ended December 31,20242023Realized gains (losses) before impairment allowances:Disposals$— $(2)Change in the fair value of equity securities3 33 Change in the fair value of derivatives(3)2 — 33 Change in allowance for impairments on securities(10)(2)Realized gains (losses) on securities$(10)$31 

The $3 million net realized gain from the change in the fair value of equity securities in the fourth quarter of 2024 includes gains of $4 million on investments in technology companies. The $33 million net realized gain from the change in the fair value of equity securities in the fourth quarter of 2023 includes gains of $15 million on investments in banks and financing companies, $6 million on investments in retail companies, $5 million on investments in healthcare companies and $5 million on investments in media companies.

The $10 million change in allowance for impairments on securities in the fourth quarter of 2024 relates primarily to an allowance taken on fixed maturities from a single issuer in the retail sector.

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Consolidated Income Taxes

AFG’s consolidated provision for income taxes was $65 million for the fourth quarter of 2024 compared to $72 million in the fourth quarter of 2023, a decrease of $7 million (10%). The following is a reconciliation of income taxes at the statutory rate to the provision for income taxes as shown in the segmented statement of earnings (dollars in millions):

Three months ended December 31,20242023Amount% of EBTAmount% of EBTEarnings before income taxes (“EBT”)$320 $335 Income taxes at statutory rate$67 21 %$70 21 %Effect of:Tax exempt interest(2)(1 %)(1)— %Employee stock ownership plan dividend paid deduction(2)(1 %)(2)(1 %)Stock-based compensation(