Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 105

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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46)245 (16)229 Provision for income taxes61 — (10)51 (3)48 Core Net Operating Earnings230 — (36)194 Non-core earnings (loss) (*):Realized gains (losses) on securities, net of tax— — (2)(2)2 — Special A&E charge, net of tax— — (11)(11)11 — Net Earnings$230 $— $(49)$181 $— $181 

(*)See the reconciliation of core earnings to GAAP net earnings under “Results of Operations — General” for details on the tax impacts of these reconciling items.

Property and Casualty Insurance Segment — Results of Operations

Performance measures such as underwriting profit or loss and related combined ratios are often used by property and casualty insurers to help users of their financial statements better understand the company’s performance. Underwriting profitability is measured by the combined ratio, which is a sum of the ratios of losses and loss adjustment expenses, and commissions and other underwriting expenses to premiums. A combined ratio under 100% indicates an underwriting profit. The combined ratio does not reflect net investment income, other income, other expenses or federal income taxes.

AFG’s property and casualty insurance operations contributed $328 million in pretax earnings in the third quarter of 2025 compared to $291 million in the third quarter of 2024, an increase of $37 million (13%), reflecting higher underwriting profit and higher net investment income.

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

The following table details AFG’s earnings before income taxes from its property and casualty insurance operations for the three months ended September 30, 2025 and 2024 (dollars in millions):

Three months ended September 30,20252024% ChangeGross written premiums$3,665 $3,748 (2%)Reinsurance premiums ceded(1,413)(1,395)1%Net written premiums2,252 2,353 (4%)Change in unearned premiums(239)(298)(20%)Net earned premiums2,013 2,055 (2%)Loss and loss adjustment expenses1,355 1,430 (5%)Commissions and other underwriting expenses520 510