Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 120

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 120
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 per share amounts:Core net operating earnings$1.81 $2.76 Realized gains on securities0.03 0.13 Net earnings$1.84 $2.89 

Net earnings were $154 million in the first three months of 2025 compared to $242 million in the first three months of 2024 reflecting lower core net operating earnings and lower net realized gains on securities in the first three months of 2025 compared to the first three months of 2024. Core net operating earnings for the first three months of 2025 decreased $79 million compared to the first three months of 2024 reflecting lower underwriting profit and lower net 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. Net realized gains on securities in the first three months of 2025 and 2024 include after-tax gains of $5 million and $15 million, respectively, resulting from the change in fair value of equity securities that were still held at the balance sheet date.

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

RESULTS OF OPERATIONS — THREE MONTHS ENDED MARCH 31, 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 three months ended March 31, 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 TotalThree months ended March 31, 2025Revenues:Net earned premiums$1,580 $— $— $1,580 $— $1,580 Net investment income170 (2)5 173 —