Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 164

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 164
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 of AFG’s Shareholders’ Equity.

Catastrophe losses of $38 million in the second quarter of 2025 and $36 million in the second quarter of 2024 resulted primarily from storms in multiple regions of the United States.

Commissions and Other Underwriting Expenses

AFG’s property and casualty commissions and other underwriting expenses (“U/W Exp”) were $527 million in the second quarter of 2025 compared to $498 million for the second quarter of 2024, an increase of $29 million (6%). AFG’s underwriting expense ratio, calculated as commissions and other underwriting expenses divided by net premiums earned, was 32.0% for the second quarter of 2025 compared to 31.4% for the second quarter of 2024, an increase of 

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

0.6 percentage points. Detail of AFG’s property and casualty commissions and other underwriting expenses and underwriting expense ratios is shown below (dollars in millions):

Three months ended June 30,20252024Change inU/W Exp% of NEPU/W Exp% of NEP% of NEPProperty and transportation$162 28.0%$161 29.0%(1.0%)Specialty casualty234 29.4%222 28.1%1.3%Specialty financial131 48.0%115 47.6%0.4%$527 32.0%$498 31.4%0.6%

Property and transportation   Commissions and other underwriting expenses as a percentage of net earned premiums decreased 1.0 percentage points in the second quarter of 2025 compared to the second quarter of 2024. The decrease reflects the impact of higher earned premiums in the crop operations on the ratio (which has a lower commissions and other underwriting expense ratio compared to some of the other businesses in the Property and transportation sub-segment), partially offset by higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics.

Specialty casualty   Commissions and other underwriting expenses as a percentage of net earned premiums increased 1.3 percentage points in the second quarter of 2025 compared to the second quarter of 2024 reflecting higher costs for software and other expenses associated with certain initiatives