Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 115

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 115
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ValueAggregateUnrealizedGain (Loss)FairValue as% of CostFixed Maturities at March 31, 2025Securities with unrealized gains:Exceeding $500,000 (46 securities)$760 $41 106 %$500,000 or less (798 securities)3,955 81 102 %$4,715 $122 103 %Securities with unrealized losses:Exceeding $500,000 (129 securities)$1,538 $(194)89 %$500,000 or less (1,083 securities)3,831 (107)97 %$5,369 $(301)95 %

The following table (dollars in millions) summarizes the unrealized losses for all securities with unrealized losses by issuer quality and the length of time those securities have been in an unrealized loss position:

AggregateFairValueAggregateUnrealizedLossFairValue as% of CostSecurities with Unrealized Losses at March 31, 2025Investment grade fixed maturities with losses for:Less than one year (233 securities)$1,416 $(13)99 %One year or longer (817 securities)3,755 (275)93 %$5,171 $(288)95 %Non-investment grade fixed maturities with losses for:Less than one year (37 securities)$58 $(4)94 %One year or longer (125 securities)140 (9)94 %$198 $(13)94 %

When a decline in the value of a specific investment is considered to be other-than-temporary, an allowance for credit losses (impairment) is charged to earnings (accounted for as a realized loss). The determination of whether unrealized losses are other-than-temporary requires judgment based on subjective as well as objective factors as detailed in AFG’s 2024 Form 10-K under Management’s Discussion and Analysis — “Investments.”

Based on its analysis, management believes AFG will recover its cost basis (net of any allowance) in the fixed maturity securities with unrealized losses and that AFG has the ability to hold the securities until they recover in value and had no intent to sell them at March 31, 2025. Although AFG has the ability to continue holding its fixed maturity investments with unrealized losses, its intent to hold them may change due to deterioration in the issu