Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 111

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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 losses were $8 million (1.0 points on the combined ratio) in the third quarter of 2025 compared to catastrophe losses of $17 million (2.0 points) in the third quarter 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

Specialty financial   Underwriting profit for this group was $51 million for the third quarter of 2025 compared to $21 million in the third quarter of 2024, an increase of $30 million (143%). This increase was due primarily to improved results in the financial institutions business, largely attributable to lower year-over-year catastrophe losses, and higher underwriting profitability in the surety and fidelity businesses. Catastrophe losses were $11 million (4.1 points on the combined ratio) in the third quarter of 2025 compared to $39 million (14.4 points) in the third quarter 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 third quarter of 2025 and $2 million in the third quarter 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 67.3% for the third quarter of 2025 compared to 69.6% for the third quarter of 2024, a decrease of 2.3 percentage points. The components of AFG’s property and casualty losses and LAE amounts and ratio are detailed below (dollars in millions):

Three months ended September 30,AmountRatioChange in2025202420252024RatioProperty and transportationCurrent year, excluding catastrophe losses$735 $764 78.5%77.1%1.4%Prior accident years development(11)(14)(1.1%)(1.4%)0.3%Current year catastrophe losses including the impact of net reinstatement premiums4 34 0.4%3.7%(3.3%)Property and transportation losses and LAE and ratio$728 $784 77.8%79.4%(1