Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 146

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 146
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in millions):

Year ended December 31,202420232022Net cash provided by operating activities$1,152 $1,970 $1,153 Net cash provided by (used in) investing activities95 414 (1,051)Net cash used in financing activities(1,066)(2,031)(1,361)Net change in cash and cash equivalents$181 $353 $(1,259)

Net Cash Provided by Operating Activities   AFG’s property and casualty insurance operations typically produce positive net operating cash flows as premiums collected and investment income exceed policy acquisition costs, claims payments and operating expenses. AFG’s net cash provided by operating activities is impacted by the level and timing of property and casualty premiums, claim and expense payments and recoveries from reinsurers. Cash flows provided by operating activities also include the activity of AFG’s managed investment entities (collateralized loan obligations (“CLO”)) other than those activities included in investing or financing activities. The changes in the assets and liabilities of the managed investment entities included in operating activities reduced cash flows from operating activities by $80 million in 2024, increased cash flows from operating activities by $305 million in 2023 and reduced cash flows from operating activities by $183 million in 2022, resulting in a $385 million decrease in cash flows from operating activities in 2024 compared to 2023 and a $488 million increase in cash flows from operating activities in 2023 compared to 2022. As discussed in Note A — “Accounting Policies — Managed Investment Entities” to the financial statements, AFG has no right to use the CLO assets and no obligation to pay the CLO liabilities and such assets and liabilities are shown separately in AFG’s Balance Sheet. Excluding the impact of the managed investment entities, net cash provided by operating activities was $1.23 billion, $1.67 billion and $1.34 billion in 2024, 2023 and 2022, respectively.

Net Cash Provided by (Used in) Investing Activities   AFG’s investing activities consist primarily of the investment of funds provided by its property and casualty businesses. Investing activities also include the purchase and disposal of managed investment entity investments, which are presented separately in AFG’s Balance Sheet. Net investment activity in the managed investment entities was a $377 million source of cash in 2024 compared to $762 million in 202