Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 124

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 124
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 from prior periods has been recast for consistent presentation.

To understand the overall profitability of particular lines, the timing of claims payments and the related impact of investment income must be considered. Certain “short-tail” lines of business (primarily property coverages) generally have quick loss payouts, which reduce the time funds are held, thereby limiting investment income earned thereon. In contrast, “long-tail” lines of business (primarily liability coverages and workers’ compensation) generally have payouts that are either structured over many years or take many years to settle, thereby significantly increasing investment income earned on related premiums received.

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

Gross Written Premiums

Gross written premiums (“GWP”) for AFG’s property and casualty insurance segment were $2.29 billion for the first three months of 2025 compared to $2.34 billion for the first three months of 2024, a decrease of $45 million (2%). Detail of gross written premiums is shown below (dollars in millions):

Three months ended March 31,20252024GWP%GWP%% ChangeProperty and transportation$897 39 %$959 41 %(6 %)Specialty casualty1,068 47 %1,097 47 %(3 %)Specialty financial326 14 %280 12 %16 %$2,291 100 %$2,336 100 %(2 %)

Reinsurance Premiums Ceded

Reinsurance premiums ceded (“Ceded”) for AFG’s property and casualty insurance segment were 30% of gross written premiums for both the first three months of 2025 and the first three months of 2024. Detail of reinsurance premiums ceded is shown below (dollars in millions):

Three months ended March 31,20252024Change inCeded% of GWPCeded% of GWP% of GWPProperty and transportation$(334)37 %$(362)38 %(1 %)Specialty casualty(296)28 %(294)27 %1 %Specialty financial(50)15 %(46)16 %(1 %)$(680)30 %$(702)30 %— %

Net Written Premiums

Net written premiums (“NWP”) for AFG’s property and casualty