Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 175

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 175
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 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 19%Total net investment income$205 $195 $10 5%Average invested assets (at amortized cost)$16,095 $15,447 $648 4%Yield on fixed maturities (before investment expenses)5.12%5.06%0.06%Yield (net investment income as a % of average invested assets)5.09%5.05%0.04%

The increase in the property and casualty insurance segment’s net investment income for the third quarter of 2025 compared to the third quarter of 2024 reflects the impact of higher returns on AFG’s alternative investment portfolio (partnerships and similar investments and AFG-managed CLOs), higher balances of invested assets and higher returns on fixed maturity investments. The property and casualty insurance segment’s overall yield on investments (net investment income as a percentage of average invested assets) was 5.09% for the third quarter of 2025 compared to 5