Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 95

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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 for the first three months of 2024, an improvement of 1.8 percentage points.

Property and transportation   The 1.8 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects lower premiums in the crop business, which has a higher loss and LAE ratio than some of the other businesses in the Property and transportation sub-segment and the impact of a large property loss in the first quarter of 2024.

Specialty casualty   The 0.6 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects improved results in the social services business in the first quarter of 2025, partially offset by higher losses in the excess and surplus 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

Specialty financial   The 1.1 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects improved results and growth in the financial institutions business, which has a lower loss and LAE ratio than some of the other businesses in the Specialty financial sub-segment.

Net prior year reserve development 

AFG’s Specialty property and casualty insurance operations recorded net favorable reserve development related to prior accident years of $20 million in the first three months of 2025 compared to $51 million in the first three months of 2024, a decrease of $31 million (61%).

Property and transportation   Net favorable reserve development of $19 million in the first three months of 2025 reflects lower than anticipated losses in the crop business and lower than anticipated claim frequency and severity in the trucking business. Net favorable reserve development of $46 million in the first three months of 2024 reflects lower than anticipated losses in the crop business and lower than expected claim severity in the property and inland marine business.

Specialty casualty   Net adverse reserve development of $12 million in the first three months of 2025 reflects higher than anticipated claim severity in the excess liability businesses partially offset by lower than anticipated claim severity in the workers’ compensation businesses. Net favorable reserve development of $11 million in the first three months of 2024 reflects lower than anticipated claim severity in the workers’ compensation businesses and lower than expected claim frequency and severity in the executive liability business, partially offset by higher than anticipated claim severity in the excess liability businesses and higher than