Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 79

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 79
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 $220 million on paid losses and LAE and $4.96 billion on unpaid losses and LAE at December 31, 2024. These amounts are net of allowances of approximately $11 million for expected credit losses on reinsurance recoverables. The collectability of a reinsurance balance is based upon the financial condition of a reinsurer as well as individual claim considerations.

Reinsurance premiums ceded and assumed are presented in the following table (in millions):

202420232022Reinsurance ceded$3,394 $2,964 $2,851 Reinsurance ceded, excluding crop2,021 1,878 1,768 Reinsurance assumed — including involuntary pools and associations (*)600 347 283 

(*)2024 includes $217 million related to the acquisition of CRS as a result of premium written by the previous owner and assumed by AFG during the transition.

Loss and Loss Adjustment Expense Reserves

The consolidated financial statements include the estimated liability for unpaid losses and LAE of AFG’s insurance subsidiaries. This liability represents estimates of the ultimate net cost of all unpaid losses and LAE and is determined by using case-basis evaluations, actuarial projections and management’s judgment. These estimates are subject to the effects of changes in claim amounts and frequency and are periodically reviewed and adjusted as additional information becomes known. In accordance with industry practices, such adjustments are reflected in current year operations. Generally, reserves for reinsurance assumed and involuntary pools and associations are reflected in AFG’s results at the amounts reported by those entities. See Note N — “Insurance — Insurance Reserves” to the financial statements for information on the development of AFG’s liability for unpaid losses and LAE by accident year as well as a progression of the liability on a GAAP basis over the past three years.

A reconciliation of the liability for losses and LAE reported in the annual statements filed with the state insurance departments in accordance with statutory accounting principles (“SAP”) to the liability reported in the accompanying consolidated financial statements in accordance with GAAP at December 31, 2024 follows (in millions):

Liability reported on a SAP basis, net of $83 million of retroactive reinsurance$8,840 Reinsurance recoverables, net of allowance4,957 Other, including reserves of foreign insurers382 Liability reported on a GAAP basis$14,179 

Asbestos and Environmental-related (“A&E”) Insurance Reserves   AFG’s property and casualty