Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 73

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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) and interest on and returns of capital to senior levels of debt securities. There are no contractual requirements for AFG to provide additional funding for these entities. AFG has not provided and does not intend to provide any financial support to these entities.AFG’s maximum exposure to economic loss on the CLOs that it manages is limited to its investment in those CLOs, which had an aggregate fair value of $148 million (including $101 million invested in the most subordinate tranches and $30 million invested in temporary warehousing entities) at June 30, 2025.In February 2025, AFG formed one new CLO, which issued $406 million face amount of liabilities (including $40 million face amount purchased by AFG). In the first six months of 2024, AFG formed two new CLOs, which issued $813 million face amount of liabilities (including $73 million face amount purchased by AFG). In the first six months of 2025, one CLO was substantially liquidated in accordance with the CLO indenture.

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Table of ContentsAMERICAN FINANCIAL GROUP, INC. 10-QNOTES TO CONSOLIDATED FINANCIAL STATEMENTS — CONTINUED

The following table shows a progression of the fair value of AFG's investment in CLO tranches and temporary warehousing entities (in millions):Three months ended June 30,Six months ended June 30,2025202420252024Balance at beginning of period$122 $201 $175 $177 Purchases40 45 75 84 Sales(9)(81)(88)(100)Distributions(7)(15)(18)(25)CLO earnings attributable to AFG2 9 4 23 Balance at end of period$148 $159 $148 $159 The revenues and expenses of the CLOs are separately identified in AFG’s Statement of Earnings, after the elimination of management fees and earnings attributable to AFG as measured by the change in the fair value of AFG’s investments in the CLOs. Selected financial information related to the CLOs is shown below (in millions):Three months ended June 30,Six months ended June 30,2025202420252024Gains (losses) on change in fair value of assets/liabilities (*):Assets$12 $(15)$(45)$(3)Liabilities(16)