Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 164

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 164
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 profitability is measured by the combined ratio, which is a sum of the ratios of losses and loss adjustment expenses, and commissions and other underwriting expenses to premiums. A combined ratio under 100% indicates an underwriting profit. The combined ratio does not reflect net investment income, other income, other expenses or federal income taxes.

AFG’s property and casualty insurance operations contributed $328 million in pretax earnings in the third quarter of 2025 compared to $291 million in the third quarter of 2024, an increase of $37 million (13%), reflecting higher underwriting profit and higher net investment income.

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

The following table details AFG’s earnings before income taxes from its property and casualty insurance operations for the three months ended September 30, 2025 and 2024 (dollars in millions):

Three months ended September 30,20252024% ChangeGross written premiums$3,665 $3,748 (2%)Reinsurance premiums ceded(1,413)(1,395)1%Net written premiums2,252 2,353 (4%)Change in unearned premiums(239)(298)(20%)Net earned premiums2,013 2,055 (2%)Loss and loss adjustment expenses1,355 1,430 (5%)Commissions and other underwriting expenses520 510 2%Underwriting gain138 115 20%Net investment income205 195 5%Other income and expenses, net(15)(19)(21%)Earnings before income taxes$328 $291 13%Three months ended September 30,20252024ChangeCombined Ratios:Specialty linesLoss and LAE ratio67.2%69.5%(2.3%)Underwriting expense ratio25.8%24.8%1.0%Combined ratio93.0%94.3%(1.3%)Aggregate — including exited linesLoss and LAE ratio67.3%69.6%(2.3%)Underwriting expense ratio25.8%24.8%1.0%Combined ratio93.1%94.4%(1.3%)

AFG reports the underwriting performance of its Specialty property and casualty insurance business in the following sub-segments: (i) Property and transportation, (ii) Specialty casualty and