Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 101

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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ANCIAL GROUP, INC. 10-QManagement’s Discussion and Analysis of Financial Condition and Results of Operations — Continued

RESULTS OF OPERATIONS

General

AFG’s net earnings, determined in accordance with GAAP, include certain items that may not be indicative of its ongoing core operations. Core net operating earnings excludes realized gains (losses) on securities because such gains and losses are influenced significantly by financial markets, interest rates and the timing of sales. In addition, special charges related to coverage that AFG no longer writes, such as asbestos and environmental exposures, are excluded from core earnings.

The following table (in millions, except per share amounts) identifies non-core items and reconciles net earnings to core net operating earnings, a non-GAAP financial measure. AFG believes core net operating earnings is a useful tool for investors and analysts in analyzing ongoing operating trends and for management to evaluate financial performance against historical results because it believes this provides a more comparable measure of its continuing business.

Three months ended September 30,Nine months ended September 30,2025202420252024Components of net earnings:Core operating earnings before income taxes$280 $245 $701 $808 Pretax non-core item:Realized gains (losses) on securities12 (2)17 10 Realized gain on subsidiaries1 — 1 — Special A&E charges(25)(14)(25)(14)Earnings before income taxes268 229 694 804 Provision for income taxes:Core operating earnings56 51 146 168 Non-core items:Realized gains (losses) on securities2 — 3 3 Realized gain on subsidiaries— — — — Special A&E charges(5)(3)(5)(3)Other (*)— — 7 4 Total provision for income taxes53 48 151 172 Net earnings$215 $181 $543 $632 Net earnings:Core net operating earnings$224 $194 $555 $640 Realized gains (losses) on securities10 (2)14 7 Realized gain on subsidiaries1 — 1 — Special A&E charges(20)(11)(20)(11)Other (*)— — (7)(4)Net earnings$215 $181 $543 $632 Diluted per share amounts:Core net operating earnings$2.69 $2.