Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 171

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 171
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Core Net Operating Earnings522 — (76)446 Non-core earnings (loss) (*):Realized gains (losses) on securities, net of tax— — 9 9 (9)— Other(4)— — (4)4 — Net Earnings$518 $— $(67)$451 $— $451 

(*)See the reconciliation of core earnings to GAAP net earnings under “Results of Operations — General” for details on the tax impacts of these reconciling items.

Property and Casualty Insurance Segment — Results of Operations

AFG’s property and casualty insurance operations contributed $519 million in pretax earnings in the first six months of 2025 compared to $659 million in the first six months of 2024, a decrease of $140 million (21%). The decrease in pretax earnings reflects lower underwriting profit and lower investment income from AFG’s alternative investment portfolio (partnerships and similar investments and AFG-managed CLOs), partially offset by higher investment income outside of alternative investments in the first six months of 2025 compared to the first six months of 2024.

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

The following table details AFG’s earnings before income taxes from its property and casualty insurance operations for the six months ended June 30, 2025 and 2024 (dollars in millions):

Six months ended June 30,20252024% ChangeGross written premiums$4,944 $4,742 4%Reinsurance premiums ceded(1,530)(1,416)8%Net written premiums3,414 3,326 3%Change in unearned premiums(187)(195)(4%)Net earned premiums3,227 3,131 3%Loss and loss adjustment expenses1,972 1,844 7%Commissions and other underwriting expenses1,048 984 7%Underwriting gain207 303 (32%)Net investment income349 394 (11%)Other income and expenses, net(37)(38)(3%)Earnings before income taxes$519 $659 (21%)Six months ended June 30,20252024ChangeCombined Ratios:Specialty linesLoss and LAE ratio61.1%58.8%2.3%Under