Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 83

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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1,546 Net investment income212 — (14)(b)198 Realized gains on securities14 — — 14 Income of managed investment entities:Investment income— 99 — 99 Gain (loss) on change in fair value of assets/liabilities— 6 4 (b)10 Other income42 — (3)(c)39 Total revenues1,814 105 (13)1,906 Costs and Expenses:Insurance benefits and expenses1,415 — — 1,415 Expenses of managed investment entities— 104 (12)(b)(c)92 Interest charges on borrowed money and other expenses95 — — 95 Total costs and expenses1,510 104 (12)1,602 Earnings before income taxes304 1 (1)304 Provision for income taxes62 — — 62 Net earnings$242 $1 $(1)$242 

(a)Includes income of $2 million in the first three months of 2025 and $14 million in the first three months of 2024, representing the change in fair value of AFG’s CLO investments and $3 million in both the first three months of 2025 and 2024, in CLO management fees earned.

(b)Elimination of the change in fair value of AFG’s investments in the CLOs, including $8 million and $9 million in the first three months of 2025 and 2024, respectively, in distributions recorded as interest expense by the CLOs.

(c)Elimination of management fees earned by AFG.

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

RESULTS OF OPERATIONS

General

AFG’s net earnings, determined in accordance with GAAP, include certain items that may not be indicative of its ongoing core operations. Core net operating earnings excludes realized gains (losses) on securities because such gains and losses are influenced significantly by financial markets, interest rates and the timing of sales. In addition, special charges related to coverage that AFG no longer writes, such as asbestos and environmental exposures, are excluded from core earnings.

The following table (in millions