Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 113

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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 and casualty insurance segment for the three months ended June 30, 2025 and 2024 (dollars in millions): 

Three months ended June 30,20252024% ChangeRevenues:Net investment income$7 $8 (13%)Other income — P&C fees23 24 (4%)Other income6 4 50%Total revenues36 36 —%Costs and Expenses:Property and casualty insurance — loss adjustment and underwriting expenses7 8 (13%)Other expense — expenses associated with P&C fees16 16 —%Other expenses40 39 3%Costs and expenses, excluding interest charges on borrowed money63 63 —%Loss before income taxes, excluding realized gains and losses and interest charges on borrowed money(27)(27)—%Interest charges on borrowed money19 19 —%Loss before income taxes, excluding realized gains and losses$(46)$(46)—%

Holding Company and Other — Net Investment Income

AFG recorded net investment income on investments held outside of its property and casualty insurance segment of $7 million in the second quarter of 2025 compared to $8 million in the second quarter of 2024, a decrease of $1 million (13%), reflecting a decrease in average 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 second quarter of 2025, AFG collected $23 million in fees for these services compared to $24 million in the second quarter of 2024. Management views this fee income, net of the $16 million in both the second quarter of 2025 and the second quarter of 2024 in expenses incurred to generate such fees, as a reduction in the cost of underwriting its 

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

property and casualty insurance policies. 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