Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 133

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 133
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 31.5 %1.5 %

Property and transportation   Commissions and other underwriting expenses as a percentage of net earned premiums increased 0.6 percentage points in the first three months of 2025 compared to the first three months of 2024. The increase reflects the impact of lower earned premiums on the ratio, a change in the mix of business and higher costs for certain software and other expenses associated with certain initiatives in IT security, customer experience and data analytics.

Specialty casualty   Commissions and other underwriting expenses as a percentage of net earned premiums increased 2.0 percentage points in the first three months of 2025 compared to the first three months of 2024 reflecting the impact of a change in the mix of business and higher costs for certain software and other expenses associated with certain initiatives in IT security, customer experience and data analytics.

Specialty financial   Commissions and other underwriting expenses as a percentage of net earned premiums decreased 0.2 percentage points in the first three months of 2025 compared to the first three months of 2024 due primarily to the impact of higher earned premiums in the financial institutions business on the ratio and lower average commission rates in certain businesses, partially offset by higher costs for certain software and other expenses associated with certain initiatives in IT security, customer experience and data analytics.

Property and Casualty Net Investment Income

Net investment income in AFG’s property and casualty insurance operations was $170 million in the first three months of 2025 compared to $205 million in the first three months of 2024, a decrease of $35 million (17%). 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 March 31,20252024Change% ChangeNet investment income:Net investment income, excluding alternative investments$158 $149 $9 6 %Alternative investments12 56 (44)(79 %)Total net investment income$170 $205 $(35)(17 %)Average invested assets (at amortized cost)$15,881 $15,331 $550 4 %Yield on fixed maturities (before investment expenses)5.13 %4.93 %0.20 %Yield (net investment income as a % of average invested assets)4.28 %5.35 %(1.07 %)

The decrease