Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 172

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 172
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 of 2025 compared to $17 million in the third quarter of 2024, an increase of $7 million (41%).

Property and transportation   Net favorable reserve development of $11 million in the third quarter of 2025 reflects lower than anticipated claim severity in the property and inland marine, aviation and ocean marine businesses, partially offset by higher than expected claim severity in the agribusiness operations. Net favorable reserve development of $14 million in the third quarter of 2024 reflects lower than anticipated claim severity in the ocean marine business and, to a lesser extent, lower than expected claim severity in the agribusiness, property and inland marine and aviation businesses.

Specialty casualty   Net favorable reserve development of $1 million in the third quarter of 2025 reflects lower than expected claim severity in the workers’ compensation businesses, partially offset by higher than anticipated claim severity in the excess and surplus and social services businesses. Net adverse reserve development of $6 million in the third quarter of 2024 reflects higher than anticipated claim severity in the umbrella and excess liability and public sector businesses, partially offset by lower than anticipated claim severity in the workers’ compensation businesses.

Specialty financial   Net favorable reserve development of $12 million in the third quarter of 2025 reflects lower than expected claim frequency in the financial institutions business and lower than anticipated claim severity in the surety and fidelity businesses. Net favorable reserve development of $9 million in the third quarter of 2024 reflects lower than anticipated claim severity in the fidelity business and lower than expected claim frequency in the financial institutions business.

Asbestos and environmental reserves   During the third quarter of 2025, AFG completed an in-depth internal review of its asbestos and environmental exposures relating to the run-off operations of its property and casualty insurance segment and its exposures related to former railroad and manufacturing operations and sites. AFG annually conducts a comprehensive review of its asbestos and environmental reserves. In connection with its annual reviews, AFG engages with outside counsel and, as appropriate, engineering and consulting firms and specialty actuarial firms.

During the 2025 internal review, no new trends were identified and recent claims activity was generally consistent with AFG’s expectations resulting from its in-depth internal reviews in the prior four years, and the most recent external study in 2020. As a result, and consistent with the internal review in the third quarter of 2024, the 2025 review resulted in no net change to AFG’s property and casualty insurance segment’s asbestos and