Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 31

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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Reclassification adjustment for investment income included in net earnings (*)7 (2)5 Total net unrealized gains (losses) on cash flow hedges(17)(6)1 (5)(22)Foreign currency translation adjustments(17)— — — (17)Pension and other postretirement plan adjustments2 — — — 2 Total$(319)$5 $(1)$4 $(315)(*)The reclassification adjustments affected the following lines in AFG’s Statement of Earnings:OCI componentAffected line in the statement of earningsPretax - 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