Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 76

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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OLIDATED FINANCIAL STATEMENTS — CONTINUED

The following table shows a progression of the fair value of AFG's investment in CLO tranches and temporary warehousing entities (in millions):Three months ended September 30,Nine months ended September 30,2025202420252024Balance at beginning of period$148 $159 $175 $177 Purchases55 10 130 94 Sales(58)— (146)(100)Distributions(13)(7)(31)(32)CLO earnings attributable to AFG6 2 10 25 Balance at end of period$138 $164 $138 $164 The revenues and expenses of the CLOs are separately identified in AFG’s Statement of Earnings, after the elimination of management fees and earnings attributable to AFG as measured by the change in the fair value of AFG’s investments in the CLOs. Selected financial information related to the CLOs is shown below (in millions):Three months ended September 30,Nine months ended September 30,2025202420252024Gains (losses) on change in fair value of assets/liabilities (*):Assets$(6)$(7)$(51)$(10)Liabilities6 (2)44 15 Management fees paid to AFG3 3 8 9 CLO earnings attributable to AFG6 2 10 25 (*)Included in revenues in AFG’s Statement of Earnings.The aggregate unpaid principal balance of the CLOs’ fixed maturity investments exceeded the fair value of the investments by $73 million and $66 million at September 30, 2025 and December 31, 2024, respectively. The aggregate unpaid principal balance of the CLOs’ debt exceeded its carrying value by $218 million and $172 million at those dates, respectively. At September 30, 2025, the CLOs assets did not include any loans in default for which the CLOs are not accruing interest compared to an aggregate fair value of $3 million of loans in default (with an aggregate unpaid principal balance of $5 million) at December 31, 2024.In addition to the CLOs that it manages, AFG had investments in CLOs that are managed by third parties (therefore not consolidated), which are included in available for sale fixed maturity securities and had a fair value of $