Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 190

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 190
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1)— %— — %Change in valuation allowance(1)— %— — %Dividend received deduction— — %(1)— %Nondeductible expenses1 — %3 1 %Foreign operations1 — %— — %Other2 1 %3 — %Provision for income taxes$65 20 %$72 21 %

See Note L — “Income Taxes” to the financial statements for an analysis of items affecting AFG’s effective tax rate.

61

RESULTS OF OPERATIONS — YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022

Segmented Statement of Earnings

AFG reports its operations as two segments: (i) Property and casualty insurance (“P&C”) and (ii) Other, which includes holding company costs and income and expenses related to the managed investment entities (“MIEs”).

AFG’s net earnings, determined in accordance with GAAP, include certain items that may not be indicative of its ongoing core operations. The following tables for the years ended December 31, 2024, 2023 and 2022 identify such items by segment and reconcile net earnings to core net operating earnings, a non-GAAP financial measure that AFG believes is a useful tool for investors and analysts in analyzing ongoing operating trends (in millions):

OtherP&CConsol. MIEsHolding Co., other and unallocatedTotalNon-core reclassGAAP TotalYear ended December 31, 2024Revenues:Net earned premiums$7,036 $— $— $7,036 $— $7,036 Net investment income784 (33)29 780 — 780 Realized gains (losses) on securities— — — — — — Income of MIEs:Investment income— 380 — 380 — 380 Gain (loss) on change in fair value of assets/liabilities— 4 — 4 — 4 Other income8 (13)129 124 — 124 Total revenues7,828 338 158 8,324 — 8,324 Costs and Expenses:Losses and loss adjustment expenses4,455 — 5 4,460 — 4,460 Commissions