Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 162

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 162
---
 premiums38 36 2.3%2.3%—%Total Specialty losses and LAE and ratio$1,006 $936 61.1%59.1%2.0%Aggregate — including exited lines Current year, excluding catastrophe losses$980 $936 59.5%59.1%0.4%Prior accident years development(11)(35)(0.7%)(2.2%)1.5%Current year catastrophe losses including the impact of net reinstatement premiums38 36 2.3%2.2%0.1%Aggregate losses and LAE and ratio$1,007 $937 61.1%59.1%2.0%

Current accident year losses and LAE, excluding catastrophe losses

The current accident year loss and LAE ratio, excluding catastrophe losses, for AFG’s Specialty property and casualty insurance operations was 59.5% for the second quarter of 2025 compared to 59.1% for the second quarter of 2024, an increase of 0.4 percentage points.

50

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

Property and transportation   The 0.2 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects growth in the property and inland marine business, which has a lower loss and LAE ratio than some of the other businesses in the Property and transportation sub-segment, partially offset by higher losses in the aviation business.

Specialty casualty   The 1.8 percentage points increase in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects higher claim severity in the excess and surplus and social services businesses, partially offset by improved results in the workers’ compensation businesses.

Specialty financial   The 0.8 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects improved results and growth in the financial institutions business, which has a lower loss and LAE ratio than some of the other businesses in the Specialty financial sub-segment.

Net prior year reserve development 

AFG’s Specialty property and casualty insurance operations recorded net favorable reserve development related to prior accident years of $12 million in the second quarter of 2025 compared to $36 million in the second quarter of 2024, a decrease of $24 million (