Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 99

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 99
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IAL GROUP, INC. 10-QManagement’s Discussion and Analysis of Financial Condition and Results of Operations — Continued

$12 million and $14 million, respectively, resulting from the change in fair value of equity securities that were still held at the balance sheet date.

RESULTS OF OPERATIONS — THREE MONTHS ENDED JUNE 30, 2025 AND 2024

Segmented Statement of Earnings

AFG reports its operations as two segments: (i) Property and casualty insurance (“P&C”) and (ii) Other, which includes holding company costs and income and expenses related to the managed investment entities (“MIEs”).

AFG’s net earnings, determined in accordance with GAAP, include certain items that may not be indicative of its ongoing core operations. The following tables for the three months ended June 30, 2025 and 2024 identify such items by segment and reconcile net earnings to core net operating earnings, a non-GAAP financial measure that AFG believes is a useful tool for investors and analysts in analyzing ongoing operating trends (in millions):

OtherP&CConsol. MIEsHolding Co., other and unallocatedTotalNon-core reclassGAAP TotalThree months ended June 30, 2025Revenues:Net earned premiums$1,647 $— $— $1,647 $— $1,647 Net investment income179 (2)7 184 — 184 Realized gains (losses) on securities— — — — 2 2 Income of MIEs:Investment income— 68 — 68 — 68 Gain (loss) on change in fair value of assets/liabilities— (4)— (4)— (4)Other income— (2)29 27 — 27 Total revenues1,826 60 36 1,922 2 1,924 Costs and Expenses:Losses and loss adjustment expenses1,007 — — 1,007 — 1,007 Commissions and other underwriting expenses527 — 7 534 — 534 Interest charges on borrowed money— — 19 19 — 19 Expenses of MIEs— 60 — 60 — 60 Other expenses19 — 56 75 — 75 Total costs and