Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 120

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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 and 2024 reviews, AFG’s holding companies and other operations outside of its property and casualty insurance operations recorded pretax special non-core A&E charges of $25 million in the third quarter of 2025 and $14 million in the third quarter of 2024 to increase liabilities related to the A&E exposures of AFG’s former railroad and manufacturing operations. The charges in both periods reflect changes in the scope and costs of investigation and an increase in estimated remediation costs at a limited number of sites.

Holding Company and Other — Interest Charges on Borrowed Money

AFG’s holding companies and other operations outside of its property and casualty insurance segment recorded interest expense of $19 million in both the third quarter of 2025 and the third quarter of 2024.

Realized Gains (Losses) on Securities

AFG’s realized gains (losses) on securities were net gains of $12 million in the third quarter of 2025 compared to net losses of $2 million in the third quarter of 2024, a change of $14 million (700%). Realized gains (losses) on securities consisted of the following (in millions): 

Three months ended September 30,20252024Realized gains (losses) before impairment allowances:Disposals$(1)$— Change in the fair value of equity securities13 10 Change in the fair value of derivatives1 3 13 13 Change in allowance for impairments on securities(1)(15)Realized gains (losses) on securities$12 $(2)

The $13 million net realized gain from the change in the fair value of equity securities in the third quarter of 2025 includes gains of $11 million on investments in media companies and $6 million on investments in banks and financing companies, partially offset by losses of $10 million on investments in manufacturing companies. The $10 million net realized gain from the change in the fair value of equity securities in the third quarter of 2024 includes gains of $6 million on investments in banks and financing companies and $3 million on investments in media companies.

The $15 million change in allowance for impairments on securities in the third quarter of 2024 relates primarily to an allowance taken on corporate bonds from a single issuer in the financial sector.

Realized Gain on Subsidiaries

During the third quarter of 2025, AFG recorded a $3 million pretax