Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 136

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 136
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 losses and interest charges on borrowed money(89)(85)5%Interest charges on borrowed money57 57 —%Core loss before income taxes, excluding realized gains and losses(146)(142)3%Pretax non-core special A&E charge(25)(14)79%GAAP loss before income taxes, excluding realized gains and losses$(171)$(156)10%

(*)Excludes pretax non-core special A&E charges of $25 million and $14 million in the first nine months of 2025 and 2024, respectively.

Holding Company and Other — Net Investment Income

AFG recorded net investment income on investments held outside of its property and casualty insurance segment of $18 million in the first nine months of 2025 compared to $22 million in the first nine months of 2024, a decrease of $4 million (18%) reflecting lower income on fixed maturity investments.

Holding Company and Other — P&C Fees and Related Expenses

Summit, a workers’ compensation insurance subsidiary, collects fees from a small group of unaffiliated insurers for providing underwriting, policy administration and claims services. In addition, certain of AFG’s property and casualty insurance businesses collect fees from customers for ancillary services such as workplace safety programs and premium financing. In the first nine months of 2025, AFG collected $71 million in fees for these services compared to $72 million in the first nine months of 2024. Management views this fee income, net of the $46 million in the first nine months of 2025 and $45 million in the first nine months of 2024 in expenses incurred to generate such fees, as a reduction in the cost of underwriting its property and casualty insurance policies. In addition, AFG’s property and casualty insurance businesses earned $11 million during the first nine months of 2024 in fees as compensation for providing services related to the administration of crop insurance business generated by Crop Risk Services for its former owner prior to the acquisition date. The expenses related to providing such services are embedded in property and casualty underwriting expenses. Consistent with internal management reporting, these fees and the related expenses are netted and recorded as a reduction of commissions and other underwriting expenses in AFG’s segmented results.

Holding Company and Other — Other Income

Other income in the table above includes $8 million and $9 million in the first nine months of 2025 and the first nine months of