Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 158

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 158
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 Discussion and Analysis of Financial Condition and Results of Operations — Continued

the crop business, gross written premiums increased 6% compared to the second quarter of 2024 as a result of year-over-year premium growth from new business opportunities, a good renewal rate environment, and increased exposures. Overall average renewal rates increased approximately 6% in the second quarter of 2025. Excluding the workers’ compensation businesses, renewal rates increased approximately 7%.

Property and transportation   Gross written premiums increased $163 million (15%) in the second quarter of 2025 compared to the second quarter of 2024. This increase was primarily the result of earlier reporting of crop acreage in the second quarter of 2025 compared to 2024, which impacts the timing of crop premiums. Excluding the crop business, gross written premiums for this group increased 6% compared to the second quarter of 2024, reflecting increased exposures, new business opportunities and a favorable rate environment in the transportation businesses. Average renewal rates increased approximately 8% for this group in the second quarter of 2025. Reinsurance premiums ceded as a percentage of gross written premiums increased 3 percentage points in the second quarter of 2025 compared to the second quarter of 2024, reflecting higher premiums in the crop business and growth in alternative risk transfer products in the transportation businesses, both of which cede a higher percentage of premiums than some of the other businesses in the Property and transportation sub-segment.

Specialty casualty   Gross written premiums increased $39 million (4%) in the second quarter of 2025 compared to the second quarter of 2024, reflecting higher year-over-year premiums in the mergers and acquisitions liability business and growth across a variety of other businesses in the Specialty casualty sub-segment resulting from new business opportunities, higher rates and strong policy retention. These items were partially offset by lower premiums due to a challenging market in the directors’ and officers’ liability business as well as the continued non-renewal of certain housing and daycare accounts in the social services businesses. Average renewal rates increased approximately 6% for this group in the second quarter of 2025. Excluding the workers’ compensation businesses, renewal rates for this group increased approximately 8%. Reinsurance premiums ceded as a percentage of gross written premiums increased 2 percentage points in the second quarter of 2025 compared to the second quarter of 2024, reflecting higher cessions and higher reinsurance costs in the excess liability business and growth in the mergers and