Income Taxes (Tables)

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Reconciliation of income taxes at the statutory rate and income taxes shown in the Statement of Earnings

The following is a reconciliation of income taxes at the statutory rate of 35% 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,
	2017					2016					2017					2016
	Amount			% of EBT		Amount			% of EBT		Amount			% of EBT		Amount			% of EBT
Earnings before income taxes (“EBT”)	$	29				$	178				$	457				$	470
Income taxes at statutory rate	$	10		35	%	$	63		35	%	$	160		35	%	$	165		35	%
Effect of:
Stock-based compensation	(1		)	(3	%)	—			—	%	(14		)	(3	%)	—			—	%
Tax exempt interest	(5		)	(17	%)	(5		)	(3	%)	(17		)	(4	%)	(18		)	(4	%)
Dividends received deduction	(2		)	(7	%)	(1		)	(1	%)	(6		)	(1	%)	(5		)	(1	%)
Employee Stock Ownership Plan dividends paid deduction	—			—	%	—			—	%	(2		)	—	%	(1		)	—	%
Change in valuation allowance	16			55	%	7			4	%	16			4	%	40			9	%
Subsidiaries not in AFG’s tax return	—			—	%	2			1	%	—			—	%	4			1	%
Other	—			(1	%)	(1		)	1	%	9			1	%	5			—	%
Provision for income taxes as shown in the statement of earnings	$	18		62	%	$	65		37	%	$	146		32	%	$	190		40	%