Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 112

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 112
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 average invested assets)4.50%4.93%(0.43%)

The decrease in the property and casualty insurance segment’s net investment income for the second quarter of 2025 compared to the second quarter of 2024 reflects the impact of lower returns on AFG’s alternative investment portfolio (partnerships and similar investments and AFG-managed CLOs), partially offset by the impact of higher balances of invested assets and higher returns on fixed maturity investments. The property and casualty insurance segment’s overall yield on investments (net investment income as a percentage of average invested assets) was 4.50% for the second quarter of 2025 compared to 4.93% for the second quarter of 2024, a decrease of 0.43 percentage points. The annualized return earned on alternative investments was 1.2% in the second quarter of 2025 compared to 5.1% in the comparable prior year period. The impact on rental rates and occupancy from a surge in new apartment supply in certain otherwise 

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

strong markets reduced the fair value of certain multi-family investments and tempered the performance of AFG’s alternative investment portfolio in the second quarter of 2025.

Property and Casualty Other Income and Expenses, Net

Other income and expenses, net for AFG’s property and casualty insurance operations was a net expense of $19 million for the second quarter of 2025 compared to $20 million for the second quarter of 2024, a decrease of $1 million (5%). The table below details the items included in other income and expenses, net for AFG’s property and casualty insurance operations (in millions): 

Three months ended June 30,20252024Other income$— $2 Other expenses:Amortization of intangibles5 4 Interest expense on funds withheld12 13 Other2 5 Total other expenses19 22 Other income and expenses, net$(19)$(20)

Holding Company, Other and Unallocated — Results of Operations

AFG’s net pretax loss outside of its property and casualty insurance segment (excluding realized gains and losses) totaled $46 million in both the second quarter of 2025 and the second quarter of 2024.

The following table details AFG’s loss before income taxes from operations outside of its property