Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 51

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 9C
Chunk 51
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218 $176 $192 State11 9 10 Foreign— (1)1 Deferred taxes:Federal8 37 22 Provision for income taxes$237 $221 $225 For income tax purposes, AFG and its subsidiaries had the following carryforwards available at December 31, 2024 (in millions):ExpiringAmountOperating Loss – U.S.2025 - 2041$8 Operating Loss – United Kingdomindefinite35 (*)(*)£28 millionDeferred income tax assets and liabilities reflect temporary differences between the carrying amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes. The significant components of deferred tax assets and liabilities included in AFG’s Balance Sheet at December 31 were as follows (in millions):20242023Deferred tax assets:Federal net operating loss carryforwards$2 $2 Foreign underwriting losses10 10 Insurance claims and reserves283 269 Employee benefits114 111 Lease liabilities45 38 Other, net20 23 Total deferred tax assets before valuation allowance474 453 Valuation allowance against deferred tax assets(11)(14)Total deferred tax assets463 439 Deferred tax liabilities:Investment securities(233)(177)Deferred policy acquisition costs(73)(70)Insurance claims and reserves transition liability(4)(8)Lease right of use assets(42)(36)Real estate, property and equipment(7)(12)Total deferred tax liabilities(359)(303)Net deferred tax asset$104 $136 AFG’s net deferred tax asset at December 31, 2024 and 2023 is included in other assets in AFG’s Balance Sheet. The decrease in AFG’s net deferred tax asset at December 31, 2024 compared to December 31, 2023 reflects lower net unrealized losses on fixed maturities and the increase in fair value of equity securities and carrying value of limited partnership investments still owned.The likelihood of realizing deferred tax assets is reviewed periodically. Any adjustments required to the valuation allowance are made in the period during which developments requiring an adjustment become known.At December 31, 2024, there were no unrecognized tax benefits or related interest and penalties. At December 31, 2023, there were unrecognized tax benefits and related interest and penalties of less than $1 million. AFG’s provision for income 

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