Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 154

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 154
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 rates by illustrating the estimated effect on AFG’s fixed maturity portfolio that an immediate increase of 100 basis points in the interest rate yield curve would have had at December 31, 2024 (dollars in millions). Effects of increases or decreases from the 100 basis points illustrated would be approximately proportional.

Fair value of fixed maturity portfolio$10,474 Percentage impact on fair value of 100 bps increase in interest rates(3.0 %)Pretax impact on fair value of fixed maturity portfolio$(314)

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Approximately 94% of the fixed maturities held by AFG at December 31, 2024, were rated “investment grade” (credit rating of AAA to BBB) by nationally recognized rating agencies, 3% were rated “non-investment grade” and 3% were not rated. Investment grade securities generally bear lower yields and lower degrees of risk than those that are unrated and non-investment grade. Management believes that the high-quality investment portfolio should generate a stable and predictable investment return.

AFG has approximately $75 million of direct exposure to office commercial real estate through property ownership, mortgages or equity method investments. AFG’s fixed maturity portfolio includes securities (the majority of which are AAA-rated) with a carrying value of approximately $450 million that have minimal exposure to office commercial real estate.

Summarized information for the unrealized gains and losses recorded in AFG’s Balance Sheet at December 31, 2024, is shown in the following table (dollars in millions). Approximately $345 million of available for sale fixed maturity securities had no unrealized gains or losses at December 31, 2024.

SecuritiesWithUnrealizedGainsSecuritiesWithUnrealizedLossesAvailable for Sale Fixed MaturitiesFair value of securities$4,119 $5,934 Amortized cost of securities, net of allowance for expected credit losses$4,021 $6,287 Gross unrealized gain (loss)$98 $(353)Fair value as % of amortized cost102 %94 %Number of security positions750 1,340 Number individually exceeding $2 million gain or loss1 35 Concentration of gains (losses) by type or industry (exceeding 5% of unrealized):Mortgage-backed securities$22 $(154)Other asset-backed securities19 (69)Banking10 (13)Collateralized loan obligations10