Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 117

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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 83 3,794 12 3,806 Costs and Expenses:Losses and loss adjustment expenses1,844 — 5 1,849 — 1,849 Commissions and other underwriting expenses984 — 25 1,009 — 1,009 Interest charges on borrowed money— — 38 38 — 38 Expenses of MIEs— 182 — 182 — 182 Other expenses42 — 111 153 — 153 Total costs and expenses2,870 182 179 3,231 — 3,231 Earnings before income taxes659 — (96)563 12 575 Provision for income taxes137 — (20)117 7 124 Core Net Operating Earnings522 — (76)446 Non-core earnings (loss) (*):Realized gains (losses) on securities, net of tax— — 9 9 (9)— Other(4)— — (4)4 — Net Earnings$518 $— $(67)$451 $— $451 

(*)See the reconciliation of core earnings to GAAP net earnings under “Results of Operations — General” for details on the tax impacts of these reconciling items.

Property and Casualty Insurance Segment — Results of Operations

AFG’s property and casualty insurance operations contributed $519 million in pretax earnings in the first six months of 2025 compared to $659 million in the first six months of 2024, a decrease of $140 million (21%). 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 six months of 2025 compared to the first six 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 six months ended June 30, 2025 and 2024 (dollars in millions):

Six months ended June 30,20252024% Change