Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 173

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 173
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 expenses related to the managed investment entities (“MIEs”).

AFG’s net earnings, determined in accordance with GAAP, include certain items that may not be indicative of its ongoing core operations. The following tables for the three months ended December 31, 2024 and 2023 identify such items by segment and reconcile net earnings to core net operating earnings, a non-GAAP financial measure that AFG believes is a useful tool for investors and analysts in analyzing ongoing operating trends (in millions):

OtherP&CConsol. MIEsHolding Co., other and unallocatedTotalNon-core reclassGAAP TotalThree months ended December 31, 2024Revenues:Net earned premiums$1,850 $— $— $1,850 $— $1,850 Net investment income195 (8)7 194 — 194 Realized gains (losses) on securities— — — — (10)(10)Income of MIEs:Investment income— 84 — 84 — 84 Gain (loss) on change in fair value of assets/liabilities— (1)— (1)— (1)Other income2 (4)34 32 — 32 Total revenues2,047 71 41 2,159 (10)2,149 Costs and Expenses:Losses and loss adjustment expenses1,181 — — 1,181 — 1,181 Commissions and other underwriting expenses467 — 13 480 — 480 Interest charges on borrowed money— — 19 19 — 19 Expenses of MIEs— 71 — 71 — 71 Other expenses21 — 57 78 — 78 Total costs and expenses1,669 71 89 1,829 — 1,829 Earnings before income taxes378 — (48)330 (10)320 Provision for income taxes81 — (13)68 (3)65 Core Net Operating Earnings297 — (35)262 Non-core earnings (loss) (*):Realized gains (losses) on securities, net of tax— — (7)(7)7 — Net E