Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 73

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 73
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 of AFG’s property and casualty insurance operations (dollars in millions):

202420232022Gross written premiums$10,533 $9,656 $9,057 Ceded reinsurance(3,394)(2,964)(2,851)Net written premiums$7,139 $6,692 $6,206 Net earned premiums$7,036 $6,531 $6,085 Loss and LAE4,455 4,017 3,629 Underwriting expenses1,961 1,883 1,680 Underwriting gain$620 $631 $776 GAAP ratios:Loss and LAE ratio63.3 %61.6 %59.7 %Underwriting expense ratio27.9 %28.8 %27.6 %Combined ratio91.2 %90.4 %87.3 %Statutory ratios:Loss and LAE ratio61.3 %60.3 %57.3 %Underwriting expense ratio29.6 %30.2 %29.7 %Combined ratio90.9 %90.5 %87.0 %Industry statutory combined ratio (*)All lines98.9 %101.9 %103.1 %Commercial lines97.0 %96.5 %95.4 %

(*)The source of the industry ratios is ©2025 A.M. Best Company’s Review & Preview Reports.

As with other property and casualty insurers, AFG’s operating results can be adversely affected by unpredictable catastrophe losses. Certain natural disasters (hurricanes, severe storms, earthquakes, tornadoes, floods, etc.) and other incidents of major loss (explosions, civil disorder, terrorist events, fires, etc.) are classified as catastrophes by industry associations. Losses from these incidents are usually tracked separately from other business of insurers because of their sizable effects on overall operations. Total net losses to AFG’s insurance operations from current accident year catastrophes were $180 million in 2024, $162 million in 2023 and $88 million in 2022 and are included in the table above. 

AFG generally seeks to reduce its exposure to catastrophes through individual risk selection, including minimizing coastal and known fault-line exposures, and through the purchase of reinsurance. In addition to traditional reinsurance, AFG has purchased coverage through a