Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 155

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 155
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 is a sum of the ratios of losses and loss adjustment expenses, and commissions and other underwriting expenses to premiums. A combined ratio under 100% indicates an underwriting profit. The combined ratio does not reflect net investment income, other income, other expenses or federal income taxes.

AFG’s property and casualty insurance operations contributed $273 million in pretax earnings in the second quarter of 2025 compared to $319 million in the second quarter of 2024, a decrease of $46 million (14%). The decrease in pretax earnings reflects lower underwriting profit and lower investment income from AFG’s alternative investment portfolio (partnerships and similar investments and AFG-managed CLOs), partially offset by higher investment income outside of alternative investments in the second quarter of 2025 compared to the second quarter of 2024.

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

The following table details AFG’s earnings before income taxes from its property and casualty insurance operations for the three months ended June 30, 2025 and 2024 (dollars in millions):

Three months ended June 30,20252024% ChangeGross written premiums$2,653 $2,406 10%Reinsurance premiums ceded(850)(714)19%Net written premiums1,803 1,692 7%Change in unearned premiums(156)(107)46%Net earned premiums1,647 1,585 4%Loss and loss adjustment expenses1,007 937 7%Commissions and other underwriting expenses527 498 6%Underwriting gain113 150 (25%)Net investment income179 189 (5%)Other income and expenses, net(19)(20)(5%)Earnings before income taxes$273 $319 (14%)Three months ended June 30,20252024ChangeCombined Ratios:Specialty linesLoss and LAE ratio61.1%59.1%2.0%Underwriting expense ratio32.0%31.4%0.6%Combined ratio93.1%90.5%2.6%Aggregate — including exited linesLoss and LAE ratio61.1%59.1%2.0%Underwriting expense ratio32.0%31.4%0.6%Combined ratio93.1%90.5%2.6%