Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 111

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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32.0%$498 31.4%0.6%

Property and transportation   Commissions and other underwriting expenses as a percentage of net earned premiums decreased 1.0 percentage points in the second quarter of 2025 compared to the second quarter of 2024. The decrease reflects the impact of higher earned premiums in the crop operations on the ratio (which has a lower commissions and other underwriting expense ratio compared to some of the other businesses in the Property and transportation sub-segment), partially offset by higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics.

Specialty casualty   Commissions and other underwriting expenses as a percentage of net earned premiums increased 1.3 percentage points in the second quarter of 2025 compared to the second quarter of 2024 reflecting higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics and an increase in average commission rates in the excess and surplus business resulting from changes in reinsurance treaties.

Specialty financial   Commissions and other underwriting expenses as a percentage of net earned premiums increased 0.4 percentage points in the second quarter of 2025 compared to the second quarter of 2024 due primarily to higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics, partially offset by the impact of higher earned premiums in the financial institutions business on the ratio and lower average commission rates in certain businesses.

Property and Casualty Net Investment Income

Net investment income in AFG’s property and casualty insurance operations was $179 million in the second quarter of 2025 compared to $189 million in the second quarter of 2024, a decrease of $10 million (5%). The average invested assets and overall yield earned on investments held by AFG’s property and casualty insurance operations are provided below (dollars in millions):

Three months ended June 30,20252024Change% ChangeNet investment income:Net investment income, excluding alternative investments$171 $156 $15 10%Alternative investments8 33 (25)(76%)Total net investment income$179 $189 $(10)(5%)Average invested assets (at amortized cost)$15,921 $15,346 $575 4%Yield on fixed maturities (before investment expenses)5.24%5.04%0.20%Yield (net investment income as a % of