Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 59

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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 $2,371 Losses and loss adjustment expenses541 519 1,593 1,504 Commissions and other underwriting expenses236 215 708 657 Underwriting profit$33 $63 $102 $210 Specialty financial:Net earned premiums$268 $269 $826 $754 Losses and loss adjustment expenses85 125 306 325 Commissions and other underwriting expenses132 123 394 350 Underwriting profit$51 $21 $126 $79 Other lines:Losses and loss adjustment expenses$1 $2 $2 $4 Underwriting profit (loss)$(1)$(2)$(2)$(4)Total property and casualty insurance segment:Net earned premiums$2,013 $2,055 $5,240 $5,186 Losses and loss adjustment expenses1,355 1,430 3,327 3,274 Commissions and other underwriting expenses520 510 1,568 1,494 Underwriting profit$138 $115 $345 $418 

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

D.    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