Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 155

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 155
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Uncertainties

Management believes that the areas posing the greatest risk of material loss are the adequacy of its insurance reserves and contingencies arising out of its former railroad and manufacturing operations. See Management’s Discussion and Analysis — “Uncertainties — Asbestos and Environmental-related (“A&E”) Insurance Reserves” in AFG’s 2024 Form 10–K.

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

MANAGED INVESTMENT ENTITIES

Accounting standards require AFG to consolidate its investments in collateralized loan obligation (“CLO”) entities that it manages and owns an interest in (in the form of debt). See Note A — “Accounting Policies — Managed Investment Entities” and Note G — “Managed Investment Entities” to the financial statements. The effect of consolidating these entities is shown in the tables below (in millions). The “Before CLO Consolidation” columns include AFG’s investment and earnings in the CLOs on an unconsolidated basis.

CONDENSED CONSOLIDATING BALANCE SHEET

Before CLOConsolidationManagedInvestmentEntitiesConsol.EntriesConsolidatedAs ReportedSeptember 30, 2025Assets:Cash and investments$16,899 $— $(138)(*)$16,761 Assets of managed investment entities— 3,972 — 3,972 Other assets13,101 — — 13,101 Total assets$30,000 $3,972 $(138)$33,834 Liabilities:Unpaid losses and loss adjustment expenses and unearned premiums$19,529 $— $— $19,529 Liabilities of managed investment entities— 3,964 (130)(*)3,834 Long-term debt and other liabilities5,741 — — 5,741 Total liabilities25,270 3,964 (130)29,104 Shareholders’ equity:Common Stock and Capital surplus1,504 8 (8)1,504 Retained earnings3,299 — — 3,299 Accumulated other comprehensive income (loss), net of tax(73)— — (73)Total shareholders’ equity4,730 8 (8)4,730 Total liabilities and shareholders’ equity$30