Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 169

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 169
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ERICAN FINANCIAL GROUP, INC. 10-QManagement’s Discussion and Analysis of Financial Condition and Results of Operations — Continued

RESULTS OF OPERATIONS — SIX MONTHS ENDED JUNE 30, 2025 AND 2024

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 six months ended June 30, 2025 and 2024 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 TotalSix months ended June 30, 2025Revenues:Net earned premiums$3,227 $— $— $3,227 $— $3,227 Net investment income349 (4)12 357 — 357 Realized gains (losses) on securities— — — — 5 5 Income of MIEs:Investment income— 144 — 144 — 144 Gain (loss) on change in fair value of assets/liabilities— (7)— (7)— (7)Other income3 (5)56 54 — 54 Total revenues3,579 128 68 3,775 5 3,780 Costs and Expenses:Losses and loss adjustment expenses1,972 — — 1,972 — 1,972 Commissions and other underwriting expenses1,048 — 16 1,064 — 1,064 Interest charges on borrowed money— — 38 38 — 38 Expenses of MIEs— 128 — 128 — 128 Other expenses40 — 112 152 — 152 Total costs and expenses3,060 128 166 3,354 — 3,354