Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 101

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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— (9)58 4 62 Core Net Operating Earnings252 — (37)215 Non-core earnings (loss) (*):Realized gains (losses) on securities, net of tax— — (2)(2)2 — Other(4)— — (4)4 — Net Earnings$248 $— $(39)$209 $— $209 

(*)See the reconciliation of core earnings to GAAP net earnings under “Results of Operations — General” for details on the tax impacts of these reconciling items.

Property and Casualty Insurance Segment — Results of Operations

Performance measures such as underwriting profit or loss and related combined ratios are often used by property and casualty insurers to help users of their financial statements better understand the company’s performance. Underwriting profitability is measured by the combined ratio, which is a sum of the ratios of losses and loss adjustment expenses, and commissions and other underwriting expenses to premiums. A combined ratio under 100% indicates an underwriting profit. The combined ratio does not reflect net investment income, other income, other expenses or federal income taxes.

AFG’s property and casualty insurance operations contributed $273 million in pretax earnings in the second quarter of 2025 compared to $319 million in the second quarter of 2024, a decrease of $46 million (14%). The decrease in pretax earnings reflects lower underwriting profit and lower investment income from AFG’s alternative investment portfolio (partnerships and similar investments and AFG-managed CLOs), partially offset by higher investment income outside of alternative investments in the second quarter of 2025 compared to the second quarter of 2024.

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

The following table details AFG’s earnings before income taxes from its property and casualty insurance operations for the three months ended June 30, 2025 and 2024 (dollars in millions):

Three months ended June 30,20252024% ChangeGross written premiums$2,653 $2,406 10%Reinsurance premiums ceded(850)(714)19%Net written premiums1,803 1,692 7%Change in unearned premiums(156)(107)46%Net earned premiums1,647 1,585 4%Loss and loss adjustment expenses1,