Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 117

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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19%Total net investment income$205 $195 $10 5%Average invested assets (at amortized cost)$16,095 $15,447 $648 4%Yield on fixed maturities (before investment expenses)5.12%5.06%0.06%Yield (net investment income as a % of average invested assets)5.09%5.05%0.04%

The increase in the property and casualty insurance segment’s net investment income for the third quarter of 2025 compared to the third quarter of 2024 reflects the impact of higher returns on AFG’s alternative investment portfolio (partnerships and similar investments and AFG-managed CLOs), 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 5.09% for the third quarter of 2025 compared to 5.05% for the third quarter of 2024, an increase of 0.04 percentage points. The annualized return earned on alternative investments was 6.2% in the third quarter of 2025 compared to 5.4% in the comparable prior year period.

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 $15 million for the third quarter of 2025 compared to $19 million for the third quarter of 2024, an improvement of $4 million (21%). 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 September 30,20252024Other income$6 $2 Other expenses:Amortization of intangibles5 5 Interest expense on funds withheld11 13 Other5 3 Total other expenses21 21 Other income and expenses, net$(15)$(19)

The increase in other income in the third quarter of 2025 compared to the third quarter of 2024 reflects a death benefit received on a company-owned life insurance policy in the third quarter of 2025.

Holding Company, Other and Unallocated — Results of Operations

AFG’s net GAAP pretax loss outside of its property and casualty insurance segment (excluding realized gains and losses) totaled $73 million in the third quarter of