Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 109

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 109
---
5 compared to the third quarter of 2024, reflecting new business opportunities and favorable renewal pricing in several of the targeted markets businesses and an increase in mergers and acquisition activity that contributed to growth in the mergers and acquisitions liability business. This growth was tempered by lower premiums in the excess and surplus, executive liability and social services businesses. Average renewal rates increased approximately 7% for this group in the third quarter of 2025. Excluding the workers’ compensation businesses, renewal rates for this group increased approximately 8%. Reinsurance premiums ceded as a percentage of gross written premiums increased 3 percentage points in the third quarter of 2025 compared to the third quarter of 2024, reflecting higher cessions and higher reinsurance costs in the excess liability business and growth in the public sector and mergers and acquisitions liability businesses, both of which cede a larger percentage of premiums than some of the other businesses in the Specialty casualty sub-segment.

Specialty financial   Gross written premiums increased $9 million (3%) in the third quarter of 2025 compared to the third quarter of 2024, due primarily to growth in the financial institutions business and AFG’s European operations. Average renewal rates decreased approximately 2% for this group in the third quarter of 2025. Reinsurance premiums ceded as a percentage of gross written premiums increased 2 percentage points in the third quarter of 2025 compared to the third quarter of 2024, reflecting higher cessions in the financial institutions and equipment leasing businesses.

50

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

Combined Ratio

The table below (dollars in millions) details the components of the combined ratio for AFG’s property and casualty insurance segment:

Three months ended September 30,Three months ended September 30,20252024Change20252024Property and transportationLoss and LAE ratio77.8%79.4%(1.6%)Underwriting expense ratio16.3%17.4%(1.1%)Combined ratio94.1%96.8%(2.7%)Underwriting profit$55 $33 Specialty casualtyLoss and LAE ratio66.8%65.1%1.7%Underwriting expense ratio29.0%27.0%2.0%Combined ratio95.8%92.1%3.7%Underwriting profit$33 $63 Special