Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 179

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 179
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 shown as reinsurance premiums ceded represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty property and casualty insurance sub-segments. Reinsurance premiums assumed decreased $12 million (17%) in the fourth quarter of 2024 compared to the fourth quarter of 2023 reflecting a decrease in premiums retained, primarily from businesses in the Specialty casualty sub-segment.

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Combined Ratio

Performance measures such as the combined ratio are often used by property and casualty insurers to help users of their financial statements better understand the company’s performance. The combined ratio is the sum of the loss and loss adjustment expenses (“LAE”) and underwriting expense ratios. These ratios are calculated by dividing each of the respective expenses by net earned premiums. The table below (dollars in millions) details the components of the combined ratio for AFG’s property and casualty insurance segment:

Three months ended December 31,Three months ended December 31,20242023Change20242023Property and transportationLoss and LAE ratio69.3 %69.0 %0.3 %Underwriting expense ratio19.9 %21.3 %(1.4 %)Combined ratio89.2 %90.3 %(1.1 %)Underwriting profit$82 $67 Specialty casualtyLoss and LAE ratio65.6 %59.6 %6.0 %Underwriting expense ratio23.4 %25.0 %(1.6 %)Combined ratio89.0 %84.6 %4.4 %Underwriting profit$82 $114 Specialty financialLoss and LAE ratio38.1 %34.8 %3.3 %Underwriting expense ratio42.6 %46.5 %(3.9 %)Combined ratio80.7 %81.3 %(0.6 %)Underwriting profit$54 $45 Total SpecialtyLoss and LAE ratio63.7 %60.7 %3.0 %Underwriting expense ratio25.3 %27.0 %(1.7 %)Combined ratio89.0 %87.7 %1.3 %Underwriting profit$204 $212 Aggregate — including exited linesLoss and LAE ratio63.8 %60.8 %3.0 %Underwriting expense ratio25.3 %27.0