Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 159

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 159
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 (9)(c)92 Total revenues5,908 305 (38)6,175 Costs and Expenses:Insurance benefits and expenses4,806 — — 4,806 Expenses of managed investment entities— 301 (34)(b)(c)267 Interest charges on borrowed money and other expenses298 — — 298 Total costs and expenses5,104 301 (34)5,371 Earnings before income taxes804 4 (4)804 Provision for income taxes172 — — 172 Net earnings$632 $4 $(4)$632 

(a)Includes income of $10 million in the first nine months of 2025 and $25 million in the first nine months of 2024, representing the change in fair value of AFG’s CLO investments and $8 million and $9 million of income in the first nine months of 2025 and 2024, respectively, in CLO management fees earned.

(b)Elimination of the change in fair value of AFG’s investments in the CLOs, including $22 million and $25 million in the first nine months of 2025 and 2024, respectively, in distributions recorded as interest expense by the CLOs.

(c)Elimination of management fees earned by AFG.

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

RESULTS OF OPERATIONS

General

AFG’s net earnings, determined in accordance with GAAP, include certain items that may not be indicative of its ongoing core operations. Core net operating earnings excludes realized gains (losses) on securities because such gains and losses are influenced significantly by financial markets, interest rates and the timing of sales. In addition, special charges related to coverage that AFG no longer writes, such as asbestos and environmental exposures, are excluded from core earnings.

The following table (in millions, except per share amounts) identifies non-core items and reconciles net earnings to core net operating earnings, a non-GAAP financial measure. AFG believes core net operating earnings is a useful tool for investors and analysts in analyzing ongoing operating trends and for management to evaluate financial performance against historical results because it believes this provides a more comparable measure of its continuing business.

Three months ended September