Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 78

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 fixed maturity portfolio$(319)

Approximately 95% of the fixed maturities held by AFG at March 31, 2025, were rated “investment grade” (credit rating of AAA to BBB) by nationally recognized rating agencies, 2% were rated “non-investment grade” and 3% were not rated. Investment grade securities generally bear lower yields and lower degrees of risk than those that are unrated and non-

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

investment grade. Management believes that the high-quality investment portfolio should generate a stable and predictable investment return.

AFG has approximately $75 million of direct exposure to office commercial real estate through property ownership, mortgages or equity method investments. AFG’s fixed maturity portfolio includes securities (the majority of which are AAA-rated) with a carrying value of approximately $415 million that have minimal exposure to office commercial real estate.

Summarized information for the unrealized gains and losses recorded in AFG’s Balance Sheet at March 31, 2025, is shown in the following table (dollars in millions). Approximately $484 million of available for sale fixed maturity securities had no unrealized gains or losses at March 31, 2025.

SecuritiesWithUnrealizedGainsSecuritiesWithUnrealizedLossesAvailable for Sale Fixed MaturitiesFair value of securities$4,715 $5,369 Amortized cost of securities, net of allowance for expected credit losses$4,593 $5,670 Gross unrealized gain (loss)$122 $(301)Fair value as % of amortized cost103 %95 %Number of security positions844 1,212 Number individually exceeding $2 million gain or loss2 32 Concentration of gains (losses) by type or industry (exceeding 5% of unrealized):Mortgage-backed securities$29 $(133)Other asset-backed securities22 (55)Banking12 (9)Asset managers10 (11)Collateralized loan obligations6 (11)States and municipalities5 (51)Percentage rated investment grade95 %96 %

The table below sets forth the scheduled maturities of AFG’s available for sale fixed maturity securities at March 31, 2025, based on their fair values. Securities with sinking funds are reported at average maturity