Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 134

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 134
---
 in the property and casualty insurance segment’s net investment income for the first three months of 2025 compared to the first three months of 2024 reflects the impact of lower returns on AFG’s alternative investments portfolio (partnerships and similar investments and AFG-managed CLOs), partially offset by higher balances of invested assets and higher returns on fixed maturity investments. The property and casualty insurance segment’s overall yield on investments (net investment income as a percentage of average invested assets) was 4.28% for the first three months of 2025 compared to 5.35% for the first three months of 2024, a decrease of 1.07 percentage points. The annualized return earned on alternative investments was 1.8% in the first three months of 2025 compared to 9.0% in the comparable prior year period.

48

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

Property and Casualty Other Income and Expenses, Net

Other income and expenses, net for AFG’s property and casualty insurance operations was a net expense of $18 million for both the first three months of 2025 and the first three months of 2024. The table below details the items included in other income and expenses, net for AFG’s property and casualty insurance operations (in millions): 

Three months ended March 31,20252024Other income$3 $2 Other expenses:Amortization of intangibles5 5 Interest expense on funds withheld11 12 Other5 3 Total other expenses21 20 Other income and expenses, net$(18)$(18)

Holding Company, Other and Unallocated — Results of Operations

AFG’s net pretax loss outside of its property and casualty insurance segment (excluding realized gains and losses) totaled $52 million in the first three months of 2025 compared to $50 million in the first three months of 2024, an increase of $2 million (4%).

The following table details AFG’s loss before income taxes from operations outside of its property and casualty insurance segment for the three months ended March 31, 2025 and 2024 (dollars in millions): 

Three months ended March 31,20252024% ChangeRevenues:Net investment income$5 $7 (29 %)Other income — P&C fees25