Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 81

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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 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 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%—