Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 105

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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 2024, reflecting higher year-over-year premiums in the mergers and acquisitions liability business and growth across a variety of other businesses in the Specialty casualty sub-segment resulting from new business opportunities, higher rates and strong policy retention. These items were partially offset by lower premiums due to a challenging market in the directors’ and officers’ liability business as well as the continued non-renewal of certain housing and daycare accounts in the social services businesses. Average renewal rates increased approximately 6% for this group in the second quarter of 2025. Excluding the workers’ compensation businesses, renewal rates for this group increased approximately 8%. Reinsurance premiums ceded as a percentage of gross written premiums increased 2 percentage points in the second quarter of 2025 compared to the second quarter of 2024, reflecting higher cessions and higher reinsurance costs in the excess liability business and growth in the mergers and acquisitions liability business, which cedes a larger percentage of premiums than some of the other businesses in the Specialty casualty sub-segment.

Specialty financial   Gross written premiums increased $45 million (15%) in the second quarter of 2025 compared to the second quarter of 2024 due primarily to growth in the financial institutions business. Reinsurance premiums ceded as a percentage of gross written premiums increased 2 percentage points in the second quarter of 2025 compared to the second quarter of 2024, reflecting higher cessions in the financial institutions business.

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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 June 30,Three months ended June 30,20252024Change20252024Property and transportationLoss and LAE ratio67.2%63.7%3.5%Underwriting expense ratio28.0%29.0%(1.0%)Combined ratio95.2%92.7%2.5%Underwriting profit$27 $40 Specialty casualtyLoss and LAE ratio64.5%61.0%3.5%Underwriting expense ratio29.4%28.1%1.3%Combined ratio93.9%89.1%4.8%Underwriting profit$49 $86 Specialty financialLoss and LAE ratio38.1%42.1