Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 123

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 123
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53%), reflecting lower underwriting profit in the directors’ and officers’ liability, excess and surplus and workers’ compensation businesses as well as higher catastrophe losses. Catastrophe losses were $34 million (2.1 points on the combined ratio) in the first six months of 2025 compared to catastrophe losses of $24 million (1.5 points), including $1 million in net reinstatement premiums in the first six months of 2024.

Specialty financial   Underwriting profit for this group was $75 million for the first six months of 2025 compared to $58 million for the first six months of 2024, an increase of $17 million (29%). Favorable prior year reserve development and improved accident year results were partially offset by higher year-over-year catastrophe losses. Catastrophe losses were $54 million (9.7 points on the combined ratio) in the first six months of 2025 compared to $25 million (5.2 points) in the first six months of 2024.

Aggregate   Aggregate underwriting results for AFG’s property and casualty insurance segment includes adverse prior year reserve development of $1 million in the first six months of 2025 and $2 million in the first six months of 2024 related to business outside of the Specialty group that AFG no longer writes.

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

Losses and Loss Adjustment Expenses

AFG’s overall loss and LAE ratio was 61.1% for the first six months of 2025 compared to 58.9% for the first six months of 2024, an increase of 2.2 percentage points. The components of AFG’s property and casualty losses and LAE amounts and ratio are detailed below (dollars in millions):

Six months ended June 30,AmountRatioChange in2025202420252024RatioProperty and transportationCurrent year, excluding catastrophe losses$708 $715 65.8%66.7%(0.9%)Prior accident years development(32)(80)(3.0%)(7.5%)4.5%Current year catastrophe losses including the impact of net reinstatement premiums22 22 2.1%2.0%0.1%Property and transportation losses and LAE and ratio$698 $657 64.