Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 97

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 97
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 months of 2025 compared to 31.5% for the first three months of 2024, an increase of 

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

1.5 percentage points. Detail of AFG’s property and casualty commissions and other underwriting expenses and underwriting expense ratios is shown below (dollars in millions):

Three months ended March 31,20252024Change inU/W Exp% of NEPU/W Exp% of NEP% of NEPProperty and transportation$152 30.4 %$154 29.8 %0.6 %Specialty casualty238 30.0 %220 28.0 %2.0 %Specialty financial131 45.9 %112 46.1 %(0.2 %)$521 33.0 %$486 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