Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 126

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 126
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 the executive liability business, partially offset by higher than anticipated claim severity in the excess and surplus businesses and higher than expected claim frequency and severity in the social services business.

Specialty financial   Net favorable reserve development of $22 million in the first six months of 2025 reflects lower than anticipated claim frequency in the financial institutions business and lower than expected claim severity in the trade credit, surety and fidelity businesses. Net adverse reserve development of $6 million in the first six months of 2024 reflects higher than anticipated claim severity in the innovative markets and surety businesses, partially offset by lower than anticipated claim frequency in the fidelity and trade credit businesses and lower than expected claim frequency and severity in the financial institutions business.

Aggregate   Aggregate net prior accident years reserve development for AFG’s property and casualty insurance segment includes net adverse reserve development of $1 million in the first six months of 2025 and $2 million in the first six months of 2024 related to business outside the Specialty group that AFG no longer writes.

Catastrophe losses

Catastrophe losses of $110 million in the first six months of 2025 resulted primarily from California wildfires and storms in multiple regions of the United States. Catastrophe losses of $70 million in the first six months of 2024 (before $1 million in net reinstatement premiums) resulted primarily from storms in multiple regions of the United States.

Commissions and Other Underwriting Expenses

AFG’s property and casualty commissions and other underwriting expenses (“U/W Exp”) were $1.05 billion in the first six months of 2025 compared to $984 million for the first six months of 2024, an increase of $64 million (7%). AFG’s underwriting expense ratio was 32.5% for the first six months of 2025 compared to 31.4% for the first six months of 2024, an increase of 1.1 percentage points. Detail of AFG’s property and casualty commissions and other underwriting expenses and underwriting expense ratios is shown below (dollars in millions):

Six months ended June 30,20252024Change inU/W Exp% of NEPU/W Exp% of NEP% of NEPProperty and transportation$314 29.1%$315 29.4%(0.3%)Specialty casualty472 29.7%442 28.1%1.6%Specialty financial262 46.