Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 177

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 177
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Other income4 4 —%Total revenues33 34 (3%)Costs and Expenses:Property and casualty insurance — loss adjustment and underwriting expenses9 8 13%Other expense — expenses associated with P&C fees14 15 (7%)Other expenses (*)39 38 3%Costs and expenses, excluding interest charges on borrowed money62 61 2%Loss before income taxes, excluding realized gains and losses and interest charges on borrowed money(29)(27)7%Interest charges on borrowed money19 19 —%Core loss before income taxes, excluding realized gains and losses(48)(46)4%Pretax non-core special A&E charge(25)(14)79%GAAP loss before income taxes, excluding realized gains and losses$(73)$(60)22%

(*)Excludes pretax non-core special A&E charges of $25 million and $14 million in the third quarters of 2025 and 2024, respectively.

Holding Company and Other — Net Investment Income

AFG recorded net investment income on investments held outside of its property and casualty insurance segment of $6 million in the third quarter of 2025 compared to $7 million in the third quarter of 2024, a decrease of $1 million (14%).

Holding Company and Other — P&C Fees and Related Expenses

Summit, a workers’ compensation insurance subsidiary, collects fees from a small group of unaffiliated insurers for providing underwriting, policy administration and claims services. In addition, certain of AFG’s property and casualty insurance businesses collect fees from customers for ancillary services such as workplace safety programs and premium financing. In the third quarter of 2025 and the third quarter of 2024, AFG collected $23 million in fees for these services. Management views this fee income, net of the $14 million in the third quarter of 2025 and $15 million in the third quarter of 2024 in expenses incurred to generate such fees, as a reduction in the cost of underwriting its property and casualty insurance policies. The expenses related to providing such services are embedded in property and casualty underwriting expenses. Consistent with internal management reporting, these fees and the related expenses are netted and recorded as a reduction of commissions and other underwriting expenses in AFG’s segmented results.

Holding Company and Other — Other Income

Other income in the table above includes $3 million in both the third quarter of