Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 98

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
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 to $205 million in the first three months of 2024, a decrease of $35 million (17%). The average invested assets and overall yield earned on investments held by AFG’s property and casualty insurance operations are provided below (dollars in millions):

Three months ended March 31,20252024Change% ChangeNet investment income:Net investment income, excluding alternative investments$158 $149 $9 6 %Alternative investments12 56 (44)(79 %)Total net investment income$170 $205 $(35)(17 %)Average invested assets (at amortized cost)$15,881 $15,331 $550 4 %Yield on fixed maturities (before investment expenses)5.13 %4.93 %0.20 %Yield (net investment income as a % of average invested assets)4.28 %5.35 %(1.07 %)

The decrease in the property and casualty insurance segment’s net investment income for the first three months of 2025 compared to the first three months of 2024 reflects the impact of lower returns on AFG’s alternative investments portfolio (partnerships and similar investments and AFG-managed CLOs), partially offset by higher balances of invested assets and higher returns on fixed maturity investments. The property and casualty insurance segment’s overall yield on investments (net investment income as a percentage of average invested assets) was 4.28% for the first three months of 2025 compared to 5.35% for the first three months of 2024, a decrease of 1.07 percentage points. The annualized return earned on alternative investments was 1.8% in the first three months of 2025 compared to 9.0% in the comparable prior year period.

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

Property and Casualty Other Income and Expenses, Net

Other income and expenses, net for AFG’s property and casualty insurance operations was a net expense of $18 million for both the first three months of 2025 and the first three months of 2024. The table below details the items included in other income and expenses, net for AFG’s property and casualty insurance operations (in millions): 

Three months ended March 31,20252024Other income$3 $2 Other expenses