Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 132

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 132
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 reinsurance. AFG currently has comprehensive property catastrophe reinsurance coverage in place (including a $70 million per occurrence net retention) for losses up to $625 million in the vast majority of circumstances. This coverage consists of a combination of $245 million from traditional reinsurance and $310 million of coverage through a fully collateralized catastrophe bond (effective May 1, 2025 for losses occurring through December 31, 2028).Based on data available at December 31, 2024, management estimates that AFG’s exposure to a catastrophic earthquake or windstorm that industry models indicate should statistically occur once in every 500 years is just over 2% of AFG’s Shareholders’ Equity.

Catastrophe losses of $72 million in the first three months of 2025 resulted primarily from California wildfires. Catastrophe losses of $34 million (before $1 million in net reinstatement premiums) in the first three months of 2024 resulted primarily from winter and convective storms in multiple regions of the United States.

Commissions and Other Underwriting Expenses

AFG’s property and casualty commissions and other underwriting expenses (“U/W Exp”) were $521 million in the first three months of 2025 compared to $486 million for the first three months of 2024, an increase of $35 million (7%). AFG’s underwriting expense ratio, calculated as commissions and other underwriting expenses divided by net premiums earned, was 33.0% for the first three months of 2025 compared to 31.5% for the first three months of 2024, an increase of 

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

1.5 percentage points. Detail of AFG’s property and casualty commissions and other underwriting expenses and underwriting expense ratios is shown below (dollars in millions):

Three months ended March 31,20252024Change inU/W Exp% of NEPU/W Exp% of NEP% of NEPProperty and transportation$152 30.4 %$154 29.8 %0.6 %Specialty casualty238 30.0 %220 28.0 %2.0 %Specialty financial131 45.9 %112 46.1 %(0.2 %)$521 33.0 %$486