Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 91

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 91
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 in the first three months of 2025 compared to the first three months of 2024. Higher cessions, higher reinsurance costs and higher reinstatement premiums paid to reinsurers in the excess liability business and growth in the mergers and acquisitions liability business, which cedes a larger percentage of premiums than some of the other businesses in the Specialty casualty sub-segment, was partially offset by the impact of exiting certain housing-related products in the social services business which were heavily reinsured.

Specialty financial   Gross written premiums increased $46 million (16%) in the first three months of 2025 compared to the first three months of 2024 due primarily to growth in the financial institutions business. Average renewal rates increased approximately 2% for this group in the first three months of 2025. Reinsurance premiums ceded as a percentage of gross written premiums decreased 1 percentage point in the first three months of 2025 compared to the first three months of 2024 reflecting growth in the financial institutions business, which cedes a lower percentage of premiums than some of the other businesses in the Specialty financial sub-segment.

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

Combined Ratio

The table below (dollars in millions) details the components of the combined ratio for AFG’s property and casualty insurance segment:

Three months ended March 31,Three months ended March 31,20252024Change20252024Property and transportationLoss and LAE ratio62.1 %58.7 %3.4 %Underwriting expense ratio30.4 %29.8 %0.6 %Combined ratio92.5 %88.5 %4.0 %Underwriting profit$37 $60 Specialty casualtyLoss and LAE ratio67.6 %64.2 %3.4 %Underwriting expense ratio30.0 %28.0 %2.0 %Combined ratio97.6 %92.2 %5.4 %Underwriting profit$20 $61 Specialty financialLoss and LAE ratio41.1 %40.5 %0.6 %Underwriting expense ratio45.9 %46.1 %(0.2 %)Combined ratio87.0 %86.6 %0.4 %Underwriting profit$37