Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 19

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 at par value and the pricing 

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

model suggests a higher price, management caps the fair value at par value. The remainder of the internally developed Level 3 investments ($292 million) are priced using internal models or inputs from third parties that are not market observable. Management believes that any justifiable changes in unobservable inputs used to determine internally developed fair values would not have resulted in a material change in AFG’s financial position.Approximately 11% ($118 million) of the Level 3 assets were investments whose prices were determined based on financial information provided by third party asset managers. Approximately 4% ($47 million) of Level 3 assets were priced using non-binding broker quotes or pricing services, for which there is a lack of transparency as to the inputs used to determine fair value.Changes in balances of Level 3 financial assets and liabilities carried at fair value during the second quarter and first six months of 2025 and 2024 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. All transfers are reflected in the table at fair value as of the end of the reporting period.Total realized/unrealizedgains (losses) included inBalance at March 31, 2025Netearnings (loss)Other comprehensive income (loss)PurchasesandissuancesSales andsettlementsTransferintoLevel 3Transferout ofLevel 3Balance at June 30, 2025AFS fixed maturities:State and municipal$4 $— $— $— $— $2 $— $6 Residential MBS1 — — — — — — 1 Collateralized loan obligations— — — — — — — — Other asset-backed securities281 — 3 6 (6)— — 284 Corporate and other462 7 1 25 (34)— — 461 Total AFS fixed maturities748 7 4 31 (40)2 — 752 Trading fixed maturities13 — — — — — — 13 Equity securities297 20 — 3 —