Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 68

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 9C
Chunk 68
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, there are no regulatory restrictions on AFG’s retained earnings or net earnings that materially impact its ability to pay dividends. Based on shareholders’ equity at December 31, 2024, AFG could pay dividends of approximately $1.62 billion without violating its most restrictive debt covenant. However, the payment of future dividends will be at the discretion of AFG’s Board of Directors and will be dependent on many factors including AFG’s financial condition and results of operations, the capital requirements of its insurance subsidiaries, and rating agency commitments.Reinsurance   In the normal course of business, AFG cedes reinsurance to other companies to diversify risk and limit maximum loss arising from large claims. However, AFG remains liable to its insureds regardless of whether a reinsurer is able to meet its obligations. The following table shows (in millions) (i) amounts deducted from written and earned premiums in connection with reinsurance ceded, (ii) written and earned premiums included in income for reinsurance assumed and (iii) reinsurance recoveries, which represent ceded losses and loss adjustment expenses.202420232022Direct premiums written$9,933 $9,309 $8,774 Reinsurance assumed600 347 283 Reinsurance ceded(3,394)(2,964)(2,851)Net written premiums$7,139 $6,692 $6,206 Direct premiums earned$9,763 $9,133 $8,582 Reinsurance assumed611 321 274 Reinsurance ceded(3,338)(2,923)(2,771)Net earned premiums$7,036 $6,531 $6,085 Reinsurance recoveries$3,040 $2,336 $2,065 

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Table of ContentsAMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — CONTINUED

Recoverables from Reinsurers and Premiums Receivable   Progressions of the allowance for expected credit losses on recoverables from reinsurers and premiums receivable are shown below (in millions):Recoverables from ReinsurersPremiums Receivable202420232022202420232022Balance at January 1$10 $8 $8 $15 $8 $8 Increase in allowance from acquisition of CRS— — —