Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 13

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 13
---
, including significant segment expenses, for the Property and casualty insurance segment (in millions):Three months ended March 31,20252024Property and casualty insurance:Specialty:Property and transportation:Net earned premiums$500 $520 Losses and loss adjustment expenses311 306 Commissions and other underwriting expenses152 154 Underwriting profit$37 $60 Specialty casualty:Net earned premiums$794 $783 Losses and loss adjustment expenses536 502 Commissions and other underwriting expenses238 220 Underwriting profit$20 $61 Specialty financial:Net earned premiums$286 $243 Losses and loss adjustment expenses118 98 Commissions and other underwriting expenses131 112 Underwriting profit$37 $33 Other lines:Losses and loss adjustment expenses$— $1 Underwriting profit (loss)$— $(1)Total property and casualty insurance segment:Net earned premiums$1,580 $1,546 Losses and loss adjustment expenses965 907 Commissions and other underwriting expenses521 486 Underwriting profit$94 $153 

13

Table of ContentsAMERICAN FINANCIAL GROUP, INC. 10-QNOTES TO CONSOLIDATED FINANCIAL STATEMENTS — CONTINUED

C.    Fair Value Measurements

Accounting standards for measuring fair value are based on inputs used in estimating fair value. The three levels of the hierarchy are as follows:Level 1 — Quoted prices for identical assets or liabilities in active markets (markets in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis). AFG’s Level 1 financial instruments consist primarily of publicly traded equity securities, highly liquid government bonds for which quoted market prices in active markets are available and short-term investments of managed investment entities.Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar assets or liabilities in inactive markets (markets in which there are few transactions, the prices are not current, price quotations vary substantially over time or among market makers, or in which little information is released publicly); and valuations based on other significant inputs that are observable in active markets. AFG’s Level 2 financial instruments consist primarily of fixed maturity securities and investments of managed investment entities priced using observable inputs. Level 2 inputs include benchmark yields, reported trades, corroborated broker/dealer quotes, issuer spreads and benchmark securities. When non-binding