Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 127

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 127
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 first nine months of 2025 compared to the first nine months of 2024, reflecting higher year-over-year premiums in the mergers and acquisitions liability business and growth across several of the targeted markets businesses resulting from new business opportunities, higher rates and strong policy retention. These items were partially offset by lower premiums in the excess and surplus businesses and lower premiums due to a challenging market in the directors’ and officers’ liability business as well as the continued non-renewal of certain housing and daycare accounts in the social services businesses. Average renewal rates increased approximately 6% for this group in the first nine months of 2025. Excluding overall rate decreases in the workers’ compensation businesses, renewal rates for this group increased approximately 8%. Reinsurance premiums ceded as a percentage of gross written premiums increased 1 percentage point in the first nine months of 2025 compared to the first nine months of 2024 reflecting higher cessions, higher reinsurance costs and higher reinstatement premiums paid to reinsurers in the excess liability business and growth in the public sector and mergers and acquisitions liability businesses, both of which cede a larger percentage of premiums than some of the other businesses in the Specialty casualty sub-segment.

Specialty financial   Gross written premiums increased $100 million (11%) in the first nine months of 2025 compared to the first nine months of 2024 due primarily to growth in the financial institutions business and AFG’s European operations. Average renewal rates decreased approximately 1% for this group in the first nine months of 2025. Reinsurance premiums ceded as a percentage of gross written premiums increased 1 percentage point in the first nine months of 2025 compared to the first nine months of 2024 reflecting higher cessions in the financial institutions business.

Combined Ratio

The table below (dollars in millions) details the components of the combined ratio and underwriting profit for AFG’s property and casualty insurance segment:

Nine months ended September 30,Nine months ended September 30,20252024Change20252024Property and transportationLoss and LAE ratio70.9%69.9%1.0%Underwriting expense ratio23.2%23.6%(0.4%)Combined ratio94.1%93.5%0.6%Underwriting profit$119 $133 Specialty casualtyLoss and LAE ratio66.3%63.4%2.9%Underwriting expense ratio29.4%27.7%1.7%