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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
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 21% to the provision for income taxes as shown in AFG’s Statement of Earnings (dollars in millions):

202520242023
Amount% of EBTAmount% of EBTAmount% of EBT
Earnings before income taxes (“EBT”)
$1,073 $1,124 $1,073 
Income taxes at statutory rate$225 21%$236 21%$225 21%
Effect of:
State and local income taxes, net of federal income tax effect (*)
11 1%9 1%8 1%
Foreign tax effects(1)—%— —%— —%
Changes in tax laws or rates enacted in the current period— —%— —%— —%
Cross-border tax laws
(1)—%2 —%(3)—%
Income tax credits
(3)—%(2)—%(3)—%
Changes in valuation allowance(5)—%(2)—%(2)—%
Impact of nontaxable or nondeductible items:
Tax preference investments
(6)—%(6)(1%)(7)(1%)
Other5 —%1 —%2 —%
Changes in unrecognized income tax benefits
3 —%(1)—%— —%
Other adjustments3 —%— —%1 —%
Provision for income taxes as shown in the statement of earnings
$231 22%$237 21%$221 21%
(*)State taxes in California and Florida represent the majority (greater than 50%) of the state and local net tax effect in 2025. State taxes in Florida and Illinois represent the majority of the state and local net tax effect in both 2024 and 2023.
Summary of earnings before income taxes subject to foreign tax jurisdictions
The table below highlights the portion of AFG’s earnings before income taxes that is subject to income taxes outside the United States (in millions):
202520242023
U.S. only
$1,031 $1,088 $1,041 
Foreign jurisdictions
42 36 32 
Total earnings before income taxes
$1,073 $1,124 $1,073 
Components of income tax provision (credit)
The total income tax provision consists of (in millions):
202520242023
Current taxes:
U.S. federal
$168 $217 $169 
U.S. state and local
17 11 9 
Foreign5 1 6 
Total current tax expense
190 229 184 
Deferred taxes:
U.S. federal
41 8 37 
Total deferred tax expense
41 8 37 
Total income tax provision:
U.S. federal
209 225 206 
U.S. state and local
17 11 9 
Foreign
5 1 6 
Total income tax provision
$231 $237 $221 
Summary of operating loss carryforwards
For income tax purposes, AFG and its subsidiaries had the following carryforwards available at December 31, 2025 (in millions):
ExpiringAmount
Operating Loss – U.S.2041 - 2045$14 
Operating Loss – U.S.indefinite23 
Operating Loss – United Kingdomindefinite36 (*)
(*)£27 million
Components of deferred tax assets and liabilities The significant components of deferred tax assets and liabilities included in AFG’s Balance Sheet at December 31 were as follows (in millions):
20252024
Deferred tax assets:
Federal net operating loss carryforwards$8 $2 
Foreign underwriting losses9 10 
Insurance claims and reserves300 283 
Employee benefits117 114 
Lease liabilities
41 45 
Other, net29 20 
Total deferred tax assets before valuation allowance
504 474 
Valuation allowance against deferred tax assets(12)(11)
Total deferred tax assets492 463 
Deferred tax liabilities:
Investment securities(324)(233)
Deferred policy acquisition costs(76)(73)
Insurance claims and reserves transition liability— (4)
Lease right of use assets
(37)(42)
Real estate, property and equipment(42)(7)
Total deferred tax liabilities(479)(359)
Net deferred tax asset$13 $104 
Cash payments for income taxes
Cash payments for income taxes, net of refunds, were as follows (in millions):
202520242023
U.S. federal
$150 $187 $188 
U.S. state and local
14 12 10 
Foreign
4 2 3 
Total cash payments for income taxes, net of refunds
$168 $201 $201