Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 103

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 103
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 INC. 10-QManagement’s Discussion and Analysis of Financial Condition and Results of Operations — Continued

RESULTS OF OPERATIONS — THREE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

Segmented Statement of Earnings

AFG reports its operations as two segments: (i) Property and casualty insurance (“P&C”) and (ii) Other, which includes holding company costs and income and expenses related to the managed investment entities (“MIEs”).

AFG’s net earnings, determined in accordance with GAAP, include certain items that may not be indicative of its ongoing core operations. The following tables for the three months ended September 30, 2025 and 2024 identify such items by segment and reconcile net earnings to core net operating earnings, a non-GAAP financial measure that AFG believes is a useful tool for investors and analysts in analyzing ongoing operating trends (in millions):

OtherP&CConsol. MIEsHolding Co., other and unallocatedTotalNon-core reclassGAAP TotalThree months ended September 30, 2025Revenues:Net earned premiums$2,013 $— $— $2,013 $— $2,013 Net investment income205 (6)6 205 — 205 Realized gains (losses) on:Securities— — — — 12 12 Subsidiaries— — — — 1 1 Income of MIEs:Investment income— 70 — 70 — 70 Gain (loss) on change in fair value of assets/liabilities— — — — — — Other income6 (3)27 30 — 30 Total revenues2,224 61 33 2,318 13 2,331 Costs and Expenses:Losses and loss adjustment expenses1,355 — — 1,355 — 1,355 Commissions and other underwriting expenses520 — 9 529 — 529 Interest charges on borrowed money— — 19 19 — 19 Expenses of MIEs— 61 — 61 — 61 Other expenses21 — 53 74 25 99 Total costs and expenses1,896 61 81 2,038 25 2,