Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 133

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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 first nine months of 2025 compared to 28.8% for the first nine months of 2024, an increase of 1.1 percentage points. Detail of AFG’s property and casualty commissions and other underwriting expenses and underwriting expense ratios is shown below (dollars in millions):

Nine months ended September 30,20252024Change inU/W Exp% of NEPU/W Exp% of NEP% of NEPProperty and transportation$466 23.2%$487 23.6%(0.4%)Specialty casualty708 29.4%657 27.7%1.7%Specialty financial394 47.7%350 46.4%1.3%$1,568 29.9%$1,494 28.8%1.1%

Property and transportation   Commissions and other underwriting expenses as a percentage of net earned premiums decreased 0.4 percentage points in the first nine months of 2025 compared to the first nine months of 2024 reflecting changes in the mix of business, partially offset by higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics and the impact of lower earned premiums in the crop operations on the ratio (which has a lower commissions and other underwriting expense ratio than some of the other businesses in the Property and transportation sub-segment).

Specialty casualty   Commissions and other underwriting expenses as a percentage of net earned premiums increased 1.7 percentage points in the first nine months of 2025 compared to the first nine months of 2024 reflecting higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics and an increase in average commission rates in certain excess and surplus businesses resulting from changes in reinsurance treaties.

Specialty financial   Commissions and other underwriting expenses as a percentage of net earned premiums increased 1.3 percentage points in the first nine months of 2025 compared to the first nine months of 2024 reflecting higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics and higher profit-based commissions to agents in the financial institutions business, partially offset by the impact of higher earned premiums in the financial institutions business on the ratio and a change in the mix of business towards products with lower commission rates.

Property and Casualty Net Investment Income

Net investment income in AFG’s property and casualty insurance operations was $554