Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 168

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 168
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9 million (3%) in the third quarter of 2025 compared to the third quarter of 2024, due primarily to growth in the financial institutions business and AFG’s European operations. Average renewal rates decreased approximately 2% for this group in the third quarter of 2025. Reinsurance premiums ceded as a percentage of gross written premiums increased 2 percentage points in the third quarter of 2025 compared to the third quarter of 2024, reflecting higher cessions in the financial institutions and equipment leasing businesses.

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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 September 30,Three months ended September 30,20252024Change20252024Property and transportationLoss and LAE ratio77.8%79.4%(1.6%)Underwriting expense ratio16.3%17.4%(1.1%)Combined ratio94.1%96.8%(2.7%)Underwriting profit$55 $33 Specialty casualtyLoss and LAE ratio66.8%65.1%1.7%Underwriting expense ratio29.0%27.0%2.0%Combined ratio95.8%92.1%3.7%Underwriting profit$33 $63 Specialty financialLoss and LAE ratio31.8%46.5%(14.7%)Underwriting expense ratio49.3%45.8%3.5%Combined ratio81.1%92.3%(11.2%)Underwriting profit$51 $21 Total SpecialtyLoss and LAE ratio67.2%69.5%(2.3%)Underwriting expense ratio25.8%24.8%1.0%Combined ratio93.0%94.3%(1.3%)Underwriting profit$139 $117 Aggregate — including exited lines Loss and LAE ratio67.3%69.6%(2.3%)Underwriting expense ratio25.8%24.8%1.0%Combined ratio93.1%94.4%(1.3%)Underwriting profit$138 $115 

The Specialty property and casualty insurance operations generated an underwriting profit of $139 million in the third quarter of 202