Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 128

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 128
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)5.19%4.99%0.20%Yield (net investment income as a % of average invested assets)4.39%5.14%(0.75%)

The decrease in the property and casualty insurance segment’s net investment income for the first six months of 2025 compared to the first six months of 2024 reflects the impact of lower returns on AFG’s alternative investments portfolio (partnerships and similar investments and AFG-managed CLOs), partially offset by higher balances of invested assets and higher returns on fixed maturity investments. The property and casualty insurance segment’s overall yield on investments (net investment income as a percentage of average invested assets) was 4.39% for the first six months of 2025 compared to 5.14% for the first six months of 2024, a decrease of 0.75 percentage points. The annualized return earned on alternative investments (partnerships and similar investments and AFG-managed CLOs) was 1.5% in the first six months of 2025 compared to 7.0% in the prior year period.

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

Property and Casualty Other Income and Expenses, Net

Other income and expenses, net for AFG’s property and casualty insurance operations was a net expense of $37 million for the first six months of 2025 compared to $38 million for the first six months of 2024, a decrease of $1 million (3%). The table below details the items included in other income and expenses, net for AFG’s property and casualty insurance operations (in millions):

Six months ended June 30,20252024Other income$3 $4 Other expenses:Amortization of intangibles10 9 Interest expense on funds withheld23 25 Other7 8 Total other expenses40 42 Other income and expenses, net$(37)$(38)

Holding Company, Other and Unallocated — Results of Operations

AFG’s net pretax loss outside of its property and casualty insurance segment (excluding realized gains and losses) totaled $98 million in the first six months of 2025 compared to $96 million in the first six months of 2024, an increase of $2 million (2%).

The following table details AFG’s loss before income taxes