Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 67

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 67
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ax - Net unrealized gains (losses) on securitiesRealized gains on securitiesPretax - Net unrealized gains (losses) on cash 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 three 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 first three months of 2025 and 2024.

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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 March 31,20252024Amount% of EBTAmount% of EBTEarnings before income taxes (“EBT”)$197 $304 Income taxes at statutory rate$41 21 %$64 21 %Effect of:Employee stock ownership plan dividend paid deduction(2)(1 %)(2)(1 %)Tax exempt interest(1)(1 %)(1)— %Stock-based compensation(1)(1 %)(2)(1 %)Nondeductible expenses3 2 %2 1 %Foreign operations2 1 %— — %Other1 1 %1 — %Provision for income taxes as shown in the statement of earnings$43 22 %$62 20 %

K.    Contingencies

There have been no significant changes to the matters discussed and referred to in Note M — “Contingencies” of AFG’s 2024 Form 10-K, which covers property and casualty insurance reserves for claims related to environmental exposures, asbestos and other mass tort claims and environmental and occupational injury and disease claims of subsidiaries’ former railroad and manufacturing operations.

L.    Insurance

Insurance Reserves   The following table provides an analysis of changes in the liability