Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 191

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 191
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 reflects lower than anticipated claim frequency and severity in the fidelity and financial institutions businesses and lower than expected claim frequency in the trade credit business, partially offset by higher than anticipated claim severity in the innovative markets and surety businesses.

Aggregate   Aggregate net prior accident years reserve development for AFG’s property and casualty insurance segment includes net adverse reserve development of $2 million in the first nine months of 2025 and $4 million in the first nine months of 2024 related to business outside the Specialty group that AFG no longer writes.

Catastrophe losses

Catastrophe losses of $133 million in the first nine months of 2025 resulted primarily from California wildfires and storms in multiple regions of the United States. Catastrophe losses of $160 million in the first nine months of 2024 (before $1 million in net reinstatement premiums) resulted primarily from Hurricane Helene and storms in multiple regions of the United States.

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

Commissions and Other Underwriting Expenses

AFG’s property and casualty commissions and other underwriting expenses (“U/W Exp”) were $1.57 billion in the first nine months of 2025 compared to $1.49 billion for the first nine months of 2024, an increase of $74 million (5%). AFG’s underwriting expense ratio was 29.9% for the first nine months of 2025 compared to 28.8% for the first nine months of 2024, an increase of 1.1 percentage points. Detail of AFG’s property and casualty commissions and other underwriting expenses and underwriting expense ratios is shown below (dollars in millions):

Nine months ended September 30,20252024Change inU/W Exp% of NEPU/W Exp% of NEP% of NEPProperty and transportation$466 23.2%$487 23.6%(0.4%)Specialty casualty708 29.4%657 27.7%1.7%Specialty financial394 47.7%350 46.4%1.3%$1,568 29.9%$1,494 28.8%1.1%

Property and transportation   Commissions and other underwriting expenses as a percentage of net earned premiums decreased 0.4 percentage points in the