Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 116

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 116
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172 17.4%(1.1%)Specialty casualty236 29.0%215 27.0%2.0%Specialty financial132 49.3%123 45.8%3.5%$520 25.8%$510 24.8%1.0%

Property and transportation   Commissions and other underwriting expenses as a percentage of net earned premiums decreased 1.1 percentage points in the third quarter of 2025 compared to the third quarter of 2024. The decrease reflects changes in the mix of business, partially offset by higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics and the impact of lower earned premiums in the crop operations on the ratio (which has a lower commissions and other underwriting expense ratio than some of the other businesses in the Property and transportation sub-segment).

Specialty casualty   Commissions and other underwriting expenses as a percentage of net earned premiums increased 2.0 percentage points in the third quarter of 2025 compared to the third quarter of 2024 reflecting higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics and an increase in average commission rates in certain excess and surplus businesses resulting from changes in reinsurance treaties.

Specialty financial   Commissions and other underwriting expenses as a percentage of net earned premiums increased 3.5 percentage points in the third quarter of 2025 compared to the third quarter of 2024 due primarily to higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics and higher profit-based commissions to agents in the financial institutions business.

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Table of ContentsAMERICAN FINANCIAL GROUP, INC. 10-QManagement’s Discussion and Analysis of Financial Condition and Results of Operations — Continued

Property and Casualty Net Investment Income

Net investment income in AFG’s property and casualty insurance operations was $205 million in the third quarter of 2025 compared to $195 million in the third quarter of 2024, an increase of $10 million (5%). The average invested assets and overall yield earned on investments held by AFG’s property and casualty insurance operations are provided below (dollars in millions):

Three months ended September 30,20252024Change% ChangeNet investment income:Net investment income, excluding alternative investments$162 $159 $3 2%Alternative investments43 36 7