Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 209

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 209
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 28.8% in 2023, a decrease of 0.9 percentage points.

AFG’s property and casualty U/W Exp were $1.88 billion in 2023 compared to $1.68 billion in 2022, an increase of $203 million (12%). AFG’s underwriting expense ratio was 28.8% in 2023 compared to 27.6% in 2022, an increase of 1.2 percentage points.

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

Year ended December 31,Change in % of NEP2024202320222024 - 20232023 - 2022U/W Exp% of NEPU/W Exp% of NEPU/W Exp% of NEPProperty and transportation$630 22.5 %$594 23.6 %$544 21.9 %(1.1 %)1.7 %Specialty casualty774 26.1 %772 26.7 %706 26.5 %(0.6 %)0.2 %Specialty financial469 45.5 %429 49.5 %346 49.6 %(4.0 %)(0.1 %)Other specialty88 36.1 %88 33.9 %84 34.7 %2.2 %(0.8 %)$1,961 27.9 %$1,883 28.8 %$1,680 27.6 %(0.9 %)1.2 %

Property and transportation   Commissions and other underwriting expenses as a percentage of net earned premiums decreased 1.1 percentage points in 2024 compared to 2023 reflecting the impact on the ratio of higher earned premiums, including in the crop business which has a lower commissions and other underwriting expense ratio compared to some of the other businesses in the Property and transportation sub-segment and lower average commission rates in the transportation businesses due to a change in the mix of business.

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Commissions and other underwriting expenses as a percentage of net earned premiums increased 1.7 percentage points in 2023 compared to 2022 reflecting the impact of lower profit-based ceding commissions related to below average profitability in the crop operations, the impact on the