Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 52

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 9C
Chunk 52
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ANCIAL GROUP, INC. AND SUBSIDIARIES    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — CONTINUED

taxes in 2024, 2023 and 2022 included interest expense of less than $1 million related to unrecognized tax benefits. There were liabilities of less than $1 million for interest related to unrecognized tax benefits at December 31, 2023. There were no penalties related to unrecognized tax benefits included in AFG’s provision for income taxes in 2024, 2023 and 2022. There is no liability for penalties related to unrecognized tax benefits at December 31, 2023.Cash payments for income taxes, net of refunds, were $201 million for both 2024 and 2023 and $242 million for 2022.

M.    Contingencies

Establishing property and casualty insurance reserves for claims related to environmental exposures, asbestos and other mass tort claims is subject to uncertainties that are significantly greater than those presented by other types of claims. For this group of claims, traditional actuarial techniques that rely on historical loss development trends cannot be used and a range of reasonably possible losses cannot be estimated. Accruals (included in other liabilities) have been recorded for various environmental and occupational injury and disease claims and other contingencies arising out of the railroad operations disposed of by Penn Central Transportation Company (“PCTC”), the predecessor to APU Consolidated, Inc. (including its subsidiaries, “APU”) prior to PCTC’s bankruptcy reorganization in 1978, and certain manufacturing operations disposed of by APU and Great American Financial Resources, Inc. (“GAFRI”).AFG completed in-depth internal reviews of its asbestos and environmental (“A&E”) reserves in the third quarters of 2024, 2023 and 2022. The 2024 and 2023 internal reviews resulted in pretax special A&E charges of $14 million and $15 million, respectively, for the former railroad and manufacturing operations. The 2022 review resulted in a small adjustment to AFG’s A&E reserves.The property and casualty group’s liability for A&E reserves was $494 million at December 31, 2024; related recoverables from reinsurers (net of allowances for doubtful accounts) at that date were $135 million.At December 31, 2024, APU and its subsidiaries had liabilities for environmental and personal injury claims and other contingencies aggregating