Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 143

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 143
---
Table of Contents

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

INDEX TO MD&APagePageObjective30Results of Operations47Overview30General47Critical Accounting Policies31Results of Operations — Fourth Quarter49Liquidity and Capital Resources31Segmented Statement of Earnings49Ratios31Property and Casualty Insurance50Condensed Consolidated Cash Flows32Holding Company, Other and Unallocated59Parent and Subsidiary Liquidity33Results of Operations — Full Year62Condensed Parent Only Cash Flows34Segmented Statement of Earnings62Off-Balance Sheet Arrangements35Property and Casualty Insurance64Investments35Holding Company, Other and Unallocated74Uncertainties38Recent Accounting Standards77Managed Investment Entities44

OBJECTIVE

The objective of Management’s Discussion and Analysis is to provide a discussion and analysis of the financial statements and other statistical data that management believes will enhance the understanding of AFG’s financial condition, changes in financial condition and results of operations. The tables and narrative that follow are presented in a manner that is consistent with the information that AFG’s management uses to make operational decisions and allocate capital resources. They are provided to demonstrate the nature of the transactions and events that could impact AFG’s financial results. This discussion should be read in conjunction with the financial statements beginning on page F-1.

OVERVIEW

Financial Condition

AFG is organized as a holding company with almost all of its operations being conducted by subsidiaries. AFG, however, has continuing cash needs for administrative expenses, the payment of principal and interest on borrowings, shareholder dividends, and taxes. Therefore, certain analyses are most meaningfully presented on a parent only basis while others are best done on a total enterprise basis. In addition, because its businesses are financial in nature, AFG does not prepare its consolidated financial statements using a current-noncurrent format. Consequently, certain traditional ratios and financial analysis tests are not meaningful.

Results of Operations

Through the operations of its subsidiaries, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses.

AFG reported net earnings of $255 million ($3.03 per share, diluted) for the fourth quarter of 2024 compared to $263 million ($3.13 per share, diluted) in the fourth quarter of 2023. Higher net investment income was more than offset by net realized losses on securities in the fourth quarter of 2024 compared to net realized gains on securities in the