Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 87

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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 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 $246 million in pretax earnings in the first three months of 2025 compared to $340 million in the first three months of 2024, a decrease of $94 million (28%). The decrease in pretax earnings reflects lower underwriting profit and lower investment income from AFG’s alternative investment portfolio (partnerships and similar investments and AFG-managed CLOs), partially offset by higher investment income outside of alternative investments in the first three months of 2025 compared to the first three months of 2024.

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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 March 31, 2025 and 2024 (dollars in millions):

Three months ended March 31,20252024% ChangeGross written premiums$2,291 $2,336 (2 %)Reinsurance premiums ceded(680)(702)(3 %)Net written premiums1,611 1,634 (1 %)Change in unearned premiums(31)(88)(65 %)Net earned premiums1,580 1,546 2 %Loss and loss adjustment expenses965 907 6 %Commissions and other underwriting expenses521 486 7 %Underwriting gain94 153 (39 %)Net investment income170 205 (17 %)Other income and expenses, net(18)(18)— %Earnings before income taxes$246 $340 (28 %)Three months ended March 31,20252024ChangeCombined Ratios:Specialty linesLoss and LAE ratio61.0 %58.6 %2.4 %Underwriting expense ratio33.0 %31.5 %1.5 %Combined ratio94.0 %90.1 %3.9 %Aggregate —