Company: AFGC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001042046-25-000020
Chunk: 84

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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, except per share amounts) identifies non-core items and reconciles net earnings to core net operating earnings, a non-GAAP financial measure. AFG believes core net operating earnings is a useful tool for investors and analysts in analyzing ongoing operating trends and for management to evaluate financial performance against historical results because it believes this provides a more comparable measure of its continuing business.

Three months ended March 31,20252024Components of net earnings:Core operating earnings before income taxes$194 $290 Pretax non-core item:Realized gains on securities3 14 Earnings before income taxes197 304 Provision for income taxes:Core operating earnings42 59 Non-core item:Realized gains on securities1 3 Total provision for income taxes43 62 Net earnings$154 $242 Net earnings:Core net operating earnings$152 $231 Realized gains on securities2 11 Net earnings$154 $242 Diluted per share amounts:Core net operating earnings$1.81 $2.76 Realized gains on securities0.03 0.13 Net earnings$1.84 $2.89 

Net earnings were $154 million in the first three months of 2025 compared to $242 million in the first three months of 2024 reflecting lower core net operating earnings and lower net realized gains on securities in the first three months of 2025 compared to the first three months of 2024. Core net operating earnings for the first three months of 2025 decreased $79 million compared to the first three months of 2024 reflecting lower underwriting profit and lower net investment income from AFG’s alternative investment portfolio (partnerships and similar investments and AFG-managed CLOs), partially offset by higher investment income outside of alternative investments. Net realized gains on securities in the first three months of 2025 and 2024 include after-tax gains of $5 million and $15 million, respectively, resulting from the change in fair value of equity securities that were still held at the balance sheet date.

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Table of ContentsAMERICAN FINANCIAL GROUP, INC. 10-QManagement’s Discussion and Analysis of Financial Condition and Results of Operations — Continued

RESULTS OF OPERATIONS — THREE MONTHS ENDED MARCH 31, 2025 AND 2024

Segmented Statement of Earnings

AFG reports its operations as two segments: (i) Property and casualty