Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 127

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 127
---
 reflecting growth in the financial institutions business, which cedes a lower percentage of premiums than some of the other businesses in the Specialty financial sub-segment.

43

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

Combined Ratio

The table below (dollars in millions) details the components of the combined ratio for AFG’s property and casualty insurance segment:

Three months ended March 31,Three months ended March 31,20252024Change20252024Property and transportationLoss and LAE ratio62.1 %58.7 %3.4 %Underwriting expense ratio30.4 %29.8 %0.6 %Combined ratio92.5 %88.5 %4.0 %Underwriting profit$37 $60 Specialty casualtyLoss and LAE ratio67.6 %64.2 %3.4 %Underwriting expense ratio30.0 %28.0 %2.0 %Combined ratio97.6 %92.2 %5.4 %Underwriting profit$20 $61 Specialty financialLoss and LAE ratio41.1 %40.5 %0.6 %Underwriting expense ratio45.9 %46.1 %(0.2 %)Combined ratio87.0 %86.6 %0.4 %Underwriting profit$37 $33 Total SpecialtyLoss and LAE ratio61.0 %58.6 %2.4 %Underwriting expense ratio33.0 %31.5 %1.5 %Combined ratio94.0 %90.1 %3.9 %Underwriting profit$94 $154 Aggregate — including exited lines Loss and LAE ratio61.1 %58.6 %2.5 %Underwriting expense ratio33.0 %31.5 %1.5 %Combined ratio94.1 %90.1 %4.0 %Underwriting profit$94 $153 

The Specialty property and casualty insurance operations generated an underwriting profit of $94 million in the first three months of 2025 compared to $154 million in the first three months of 2024, a decrease of $60 million (39%). Higher year-over-year underwriting