Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 76

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 76
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owa2.4 %2.5 %2.7 %Texas7.9 %7.5 %7.0 %Ohio2.4 %2.1 %2.2 %New York6.0 %5.8 %5.9 %Missouri2.3 %2.8 %2.9 %Illinois5.5 %5.4 %6.2 %Michigan2.3 %2.3 %2.4 %Georgia3.6 %3.4 %3.2 %North Carolina2.1 %2.2 %2.0 %Indiana2.7 %2.6 %2.7 %Other34.8 %34.6 %34.5 %New Jersey2.5 %2.5 %2.3 %100.0 %100.0 %100.0 %Pennsylvania2.5 %2.3 %2.2 %

2024 STATUTORY DIRECT WRITTEN PREMIUMS

Reinsurance

Consistent with standard practice of most insurance companies, AFG reinsures a portion of its property and casualty business with other insurance companies and assumes a relatively small amount of business from other insurers. AFG uses reinsurance for two primary purposes: (i) to provide higher limits of coverage than it would otherwise be willing to provide (i.e. large line capacity) and (ii) to protect its business by reducing the impact of catastrophes. The availability and cost of reinsurance are subject to prevailing market conditions, which may affect the volume and profitability of business that is written. AFG is subject to credit risk with respect to its reinsurers, as the ceding of risk to reinsurers does not relieve AFG of its liability to its insureds until claims are fully settled.

Reinsurance is provided on either a facultative or treaty basis. Facultative reinsurance is generally provided on a risk-by-risk basis. Individual risks are ceded and assumed based on an offer and acceptance of risk by each party to the transaction. AFG purchases facultative reinsurance, both pro rata and excess of loss, depending on the risk and available reinsurance markets. Treaty reinsurance provides for risks meeting prescribed criteria to be automatically ceded and assumed according to contract provisions.

10

Catastrophe Reinsurance