Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 69

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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1)145 99%(112)935 89%Collateralized loan obligations— 25 100%(5)178 97%Other asset-backed securities(1)161 99%(43)891 95%Corporate and other(1)121 99%(25)872 97%Total fixed maturities$(5)$554 99%$(216)$3,413 94%December 31, 2024Fixed maturities:U.S. government and government agencies$— $35 100%$(3)$105 97%States, municipalities and political subdivisions(5)256 98%(44)470 91%Foreign government— 98 100%(1)50 98%Residential MBS(6)452 99%(148)916 86%Collateralized loan obligations— — —%(12)247 95%Other asset-backed securities(4)332 99%(65)1,217 95%Corporate and other(10)605 98%(55)1,151 95%Total fixed maturities$(25)$1,778 99%$(328)$4,156 93%At September 30, 2025, the gross unrealized losses on fixed maturities of $221 million relate to approximately 900 securities. Investment grade securities (as determined by nationally recognized rating agencies) represented approximately 96% of the gross unrealized loss and 96% of the fair value of securities with unrealized losses.To evaluate fixed maturities for expected credit losses (impairment), management considers whether the unrealized loss is credit-driven or a result of changes in market interest rates, the extent to which fair value is less than cost basis, historical operating, balance sheet and cash flow data from the issuer, third party research, communications with industry specialists and discussions with issuer management.AFG analyzes its residential MBS for expected credit losses (impairment) each quarter based upon expected future cash flows. Management estimates expected future cash flows based upon its knowledge of the MBS market, cash flow projections (which reflect loan to collateral values, subordination, vintage and geographic concentration) received from independent sources, implied cash flows inherent in security ratings and analysis of historical payment data.Management believes AFG will recover its cost basis (net of any allowance) in the securities with unrealized losses and that AFG has the ability to hold the securities until they recover in value