Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 134

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 134
---
 million in the first nine months of 2025 compared to $589 million in the first nine months of 2024, a decrease of $35 million (6%). The average invested assets and overall yield earned on investments held by AFG’s property and casualty insurance operations are provided below (dollars in millions):

Nine months ended September 30,20252024Change% ChangeNet investment income:Net investment income, excluding alternative investments$491 $464 $27 6%Alternative investments63 125 (62)(50%)Total net investment income$554 $589 $(35)(6%)Average invested assets (at amortized cost)$15,988 $15,389 $599 4%Yield on fixed maturities (before investment expenses)5.17%5.01%0.16%Yield (net investment income as a % of average invested assets)4.62%5.10%(0.48%)

The decrease in the property and casualty insurance segment’s net investment income for the first nine months of 2025 compared to the first nine months of 2024 reflects the impact of lower returns on AFG’s alternative investments portfolio (partnerships and similar investments and AFG-managed CLOs), partially offset by higher balances of invested assets 

67

Table of ContentsAMERICAN FINANCIAL GROUP, INC. 10-QManagement’s Discussion and Analysis of Financial Condition and Results of Operations — Continued

and higher returns on fixed maturity investments. The property and casualty insurance segment’s overall yield on investments (net investment income as a percentage of average invested assets) was 4.62% for the first nine months of 2025 compared to 5.10% for the first nine months of 2024, a decrease of 0.48 percentage points. The annualized return earned on alternative investments (partnerships and similar investments and AFG-managed CLOs) was 3.0% in the first nine months of 2025 compared to 6.5% in the prior year period. The impact on rental rates and occupancy from a surge in new apartment supply in certain otherwise strong markets reduced the fair value of certain multi-family investments and tempered the performance of AFG’s alternative investment portfolio in the 2025 period.

Property and Casualty Other Income and Expenses, Net

Other income and expenses, net for AFG’s property and casualty insurance operations was a net expense of $52 million for the first nine months