Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 151

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 151
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 distributions recorded as interest expense by the CLOs.

(c)Elimination of management fees earned by AFG.

42

Table of ContentsAMERICAN FINANCIAL 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 June 30,Six months ended June 30,2025202420252024Components of net earnings:Core operating earnings before income taxes$227 $273 $421 $563 Pretax non-core item:Realized gains (losses) on securities2 (2)5 12 Earnings before income taxes229 271 426 575 Provision for income taxes:Core operating earnings48 58 90 117 Non-core items:Realized gains (losses) on securities— — 1 3 Other (*)7 4 7 4 Total provision for income taxes55 62 98 124 Net earnings$174 $209 $328 $451 Net earnings:Core net operating earnings$179 $215 $331 $446 Realized gains (losses) on securities2 (2)4 9 Other (*)(7)(4)(7)(4)Net earnings$174 $209 $328 $451 Diluted per share amounts:Core net operating earnings$2.14 $2.56 $3.96 $5.32 Realized gains (losses) on securities0.02 (0.02)0.05 0.11 Other (*)(0.09)(0.05)(