Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 121

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 121
---
 several other businesses in the Specialty casualty sub-segment resulting from new business opportunities, higher rates and strong policy retention. These items were partially offset by lower premiums due to a challenging market in the directors’ and officers’ liability business as well as the continued non-renewal of certain housing and daycare accounts in the social services businesses. Average renewal rates increased approximately 6% for this group in the first six months of 2025. Excluding overall rate decreases in the workers’ compensation businesses, renewal rates for this group increased approximately 9%. Reinsurance premiums ceded as a percentage of gross written premiums increased 1 percentage point in the first six months of 2025 compared to the first six months of 2024 reflecting higher cessions, higher reinsurance costs and higher reinstatement premiums paid to reinsurers in the excess liability business and growth in the mergers and acquisitions liability business, which cedes a larger percentage of premiums than some of the other businesses in the Specialty casualty sub-segment.

Specialty financial   Gross written premiums increased $91 million (16%) in the first six months of 2025 compared to the first six months of 2024 due primarily to growth in the financial institutions business. Average renewal rates increased approximately 1% for this group in the first six months of 2025. Reinsurance premiums ceded as a percentage of gross written premiums were comparable in the first six months of 2025 and the first six months of 2024.

Combined Ratio

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

Six months ended June 30,Six months ended June 30,20252024Change20252024Property and transportationLoss and LAE ratio64.9%61.2%3.7%Underwriting expense ratio29.1%29.4%(0.3%)Combined ratio94.0%90.6%3.4%Underwriting profit$64 $100 Specialty casualtyLoss and LAE ratio66.1%62.6%3.5%Underwriting expense ratio29.7%28.1%1.6%Combined ratio95.8%90.7%5.1%Underwriting profit$69 $147 Specialty financialLoss and LAE ratio39.6%41.3%(1.7%)Underwriting expense ratio46.9%46.8%0.1%Combined ratio86.5