Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 26

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 from the issuer, third party research, communications with industry specialists and discussions with issuer management.AFG analyzes its residential MBS for expected credit losses (impairment) each quarter based upon expected future cash flows. Management estimates expected future cash flows based upon its knowledge of the MBS market, cash flow projections (which reflect loan to collateral values, subordination, vintage and geographic concentration) received from independent sources, implied cash flows inherent in security ratings and analysis of historical payment data.Management believes AFG will recover its cost basis (net of any allowance) in the securities with unrealized losses and that AFG has the ability to hold the securities until they recover in value and had no intent to sell them at June 30, 2025.

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

A progression of the allowance for expected credit losses on available for sale fixed maturity securities is shown below (in millions):StructuredSecurities (*)Corporate and OtherTotalBalance at March 31, 2025$11 $30 $41 Provision for expected credit losses on securities with no previous allowance— 1 1 Reductions to previously recognized expected credit losses(1)— (1)Reductions due to sales or redemptions— (26)(26)Balance at June 30, 2025$10 $5 $15 Balance at March 31, 2024$11 $— $11 Provision for expected credit losses on securities with no previous allowance— — — Additions (reductions) to previously recognized expected credit losses— — — Reductions due to sales or redemptions(1)— (1)Balance at June 30, 2024$10 $— $10 Balance at December 31, 2024$11 $23 $34 Provision for expected credit losses on securities with no previous allowance— 3 3 Additions (reductions) to previously recognized expected credit losses(1)5 4 Reductions due to sales or redemptions— (26)(26)Balance at June 30, 2025$10 $5 $15 Balance at December 31, 2023$9 $3 $12 Provision for expected credit losses on securities with no previous allowance1