Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 193

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 193
---
 in the property and casualty insurance segment’s net investment income for the first nine months of 2025 compared to the first nine months of 2024 reflects the impact of lower returns on AFG’s alternative investments portfolio (partnerships and similar investments and AFG-managed CLOs), partially offset by higher balances of invested assets 

67

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

and higher returns on fixed maturity investments. The property and casualty insurance segment’s overall yield on investments (net investment income as a percentage of average invested assets) was 4.62% for the first nine months of 2025 compared to 5.10% for the first nine months of 2024, a decrease of 0.48 percentage points. The annualized return earned on alternative investments (partnerships and similar investments and AFG-managed CLOs) was 3.0% in the first nine months of 2025 compared to 6.5% in the prior year period. The impact on rental rates and occupancy from a surge in new apartment supply in certain otherwise strong markets reduced the fair value of certain multi-family investments and tempered the performance of AFG’s alternative investment portfolio in the 2025 period.

Property and Casualty Other Income and Expenses, Net

Other income and expenses, net for AFG’s property and casualty insurance operations was a net expense of $52 million for the first nine months of 2025 compared to $57 million for the first nine months of 2024, an improvement of $5 million (9%). The table below details the items included in other income and expenses, net for AFG’s property and casualty insurance operations (in millions):

Nine months ended September 30,20252024Other income$9 $6 Other expenses:Amortization of intangibles15 14 Interest expense on funds withheld34 38 Other12 11 Total other expenses61 63 Other income and expenses, net$(52)$(57)

The increase in other income in the first nine months of 2025 compared to the first nine months of 2024 reflects a death benefit received on a company-owned life insurance policy in the third quarter of 2025.

Holding Company, Other and Unallocated — Results of Operations

AFG’s net GAAP pretax loss outside of its property and casualty insurance segment (excluding realized gains and