Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 62

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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3,496 Total AFS fixed maturities185 9,445 768 10,398 Trading fixed maturities— 50 26 76 Equity securities419 40 292 751 Assets of managed investment entities419 3,711 10 4,140 Other assets — derivatives— 1 — 1 Total assets accounted for at fair value$1,023 $13,247 $1,096 $15,366 Liabilities:Contingent consideration — acquisitions$— $— $2 $2 Liabilities of managed investment entities402 3,553 10 3,965 Other liabilities — derivatives— 18 — 18 Total liabilities accounted for at fair value$402 $3,571 $12 $3,985 Approximately 7% of the total assets carried at fair value at September 30, 2025, were Level 3 assets. Internally developed prices for fixed maturities are estimated using a variety of inputs, including appropriate credit spreads over the treasury yield (of a similar duration), trade information and prices of comparable securities and other security specific features (such as optional early redemption). Internally developed Level 3 asset fair values represent approximately 86% ($867 million) of the total fair value of Level 3 assets at September 30, 2025. Approximately 67% ($584 million) of these internally developed Level 3 assets are priced using a pricing model that uses a discounted cash flow approach to estimate the fair value of fixed maturity securities. The credit spread applied by management is the significant unobservable input of the pricing model. In instances where the security is currently callable at par value and the pricing 

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

model suggests a higher price, management caps the fair value at par value. The remainder of the internally developed Level 3 investments ($283 million) are priced using internal models or inputs from third parties that are not market observable. Management believes that any justifiable changes in unobservable inputs used to determine internally developed fair values would not have resulted in a material change in AFG’s financial position.Approximately 12% ($120 million) of the Level