Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 39

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 39
---
 million in net tax expense related to a pending state income tax examination regarding the sale of a subsidiary in a prior year. In the second quarter of 2024, AFG recorded $4 million in net tax expense related to a pending IRS settlement regarding the sale of a different subsidiary in a prior year.The One Big Beautiful Bill Act (enacted on July 4, 2025), among other things, extends many of the federal tax provisions of the 2017 Tax Cuts and Jobs Act and contains provisions that will accelerate the timing of certain tax deductions beginning in 2025 with an offsetting impact to deferred taxes and no impact on total income tax expense. Management is still evaluating the full impact of the bill, but does not expect the tax provisions of the bill to be material to AFG’s results of operations in future periods.

L.    Contingencies

There have been no significant changes to the matters discussed and referred to in Note M — “Contingencies” of AFG’s 2024 Form 10-K, which covers property and casualty insurance reserves for claims related to environmental exposures, asbestos and other mass tort claims and environmental and occupational injury and disease claims of subsidiaries’ former railroad and manufacturing operations.

30

Table of ContentsAMERICAN FINANCIAL GROUP, INC. 10-QNOTES TO CONSOLIDATED FINANCIAL STATEMENTS — CONTINUED

M.    Insurance

Insurance Reserves   The following table provides an analysis of changes in the liability for losses and loss adjustment expenses during the first nine months of 2025 and 2024 (in millions):Nine months ended September 30,20252024Balance at beginning of year$14,179 $13,087 Less reinsurance recoverables, net of allowance4,957 4,288 Net liability at beginning of year9,222 8,799 Provision for losses and LAE occurring in the current period3,381 3,379 Net decrease in the provision for claims of prior years(54)(100)Total losses and LAE incurred3,327 3,279 Payments for losses and LAE of:Current year(836)(828)Prior years(1,998)(2,027)Total payments(2,834)(2,855)Foreign currency translation and other(7)(2)Net liability at end of period9,708 9,221 Add back reinsurance recoverables, net of allowance5,371 4,985