Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 32

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 income taxes as shown in the statement of earnings$43 22 %$62 20 %

K.    Contingencies

There have been no significant changes to the matters discussed and referred to in Note M — “Contingencies” of AFG’s 2024 Form 10-K, which covers property and casualty insurance reserves for claims related to environmental exposures, asbestos and other mass tort claims and environmental and occupational injury and disease claims of subsidiaries’ former railroad and manufacturing operations.

L.    Insurance

Insurance Reserves   The following table provides an analysis of changes in the liability for losses and loss adjustment expenses during the first three months of 2025 and 2024 (in millions):Three months ended March 31,20252024Balance at beginning of year$14,179 $13,087 Less reinsurance recoverables, net of allowance4,957 4,288 Net liability at beginning of year9,222 8,799 Provision for losses and LAE occurring in the current period985 962 Net decrease in the provision for claims of prior years(20)(50)Total losses and LAE incurred965 912 Payments for losses and LAE of:Current year(104)(94)Prior years(863)(895)Total payments(967)(989)Foreign currency translation and other(2)1 Net liability at end of period9,218 8,723 Add back reinsurance recoverables, net of allowance4,752 4,327 Gross unpaid losses and LAE included in the balance sheet at end of period$13,970 $13,050 The net decrease in the provision for claims of prior years during the first three months of 2025 reflects (i) lower than anticipated losses in the crop business and lower than anticipated claim frequency and severity in the trucking business (within the Property and transportation sub-segment), (ii) lower than anticipated claim severity in the workers’ compensation businesses (within the Specialty casualty sub-segment) and (iii) lower than anticipated claim frequency and severity in the financial institutions business (within the Specialty financial sub-segment). This favorable development was 

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Table of ContentsAMERICAN FINANCIAL GROUP, INC. 10-QNOTES TO CONSOLIDATED FINANCIAL STATEMENTS — CONTINUED

partially offset by higher than anticipated claim severity in the excess liability businesses (within the Specialty casualty sub-segment).The net decrease in the