Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 211

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 211
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158 163 265 (5)(3 %)(102)(38 %)Total net investment income$784 $729 $683 $55 8 %$46 7 %Average invested assets (at amortized cost)$15,479 $14,753 $14,048 $726 5 %$705 5 %Yield (net investment income as a % of average invested assets)5.06 %4.94 %4.86 %0.12 %0.08 %Tax equivalent yield (*)5.13 %5.01 %4.96 %0.12 %0.05 %

(*)Adjusts the yield on equity securities and tax-exempt bonds to the fully taxable equivalent yield.

The increase in the property and casualty insurance segment’s net investment income in 2024 compared to 2023 reflects the impact of higher balances of invested assets and higher returns on fixed maturity investments, partially offset by lower returns on AFG’s alternative investments portfolio (partnerships and similar investments and AFG-managed CLOs). The property and casualty insurance segment’s overall yield on investments (net investment income as a percentage of average invested assets) was 5.06% in 2024 compared to 4.94% in 2023, an increase of 0.12 percentage points. The annualized return earned on alternative investments was 6.1% in 2024 compared to 7.0% in 2023.

The increase in net investment income in 2023 compared to 2022 reflects the impact of higher yields on fixed maturity investments and higher balances of invested assets, partially offset by lower returns on AFG’s alternative investments portfolio as compared to the very strong performance of this portfolio in the prior year period. The property and casualty 

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insurance segment’s overall yield on investments was 4.94% in 2023 compared to 4.86% in 2022, an increase of 0.08 percentage points. The annualized return earned on alternative investments was 7.0% in 2023 compared to 13.2% in 2022.

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 $76 million in 2024, $56 million in 2023 and $40 million in 202