Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 144

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 144
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 rated “non-investment grade” and 3% were not rated. Investment grade securities generally bear lower yields and lower degrees of risk than those that are unrated and non-investment grade. Management believes that the high-quality investment portfolio should generate a stable and predictable investment return.

AFG has approximately $75 million of direct exposure to office commercial real estate through property ownership, mortgages or equity method investments. AFG’s fixed maturity portfolio includes securities (the majority of which are AAA-rated) with a carrying value of approximately $350 million that have minimal exposure to office commercial real estate.

Summarized information for the unrealized gains and losses recorded in AFG’s Balance Sheet at June 30, 2025, is shown in the following table (dollars in millions). There were $446 million of available for sale fixed maturity securities with no unrealized gains or losses at June 30, 2025.

SecuritiesWithUnrealizedGainsSecuritiesWithUnrealizedLossesAvailable for Sale Fixed MaturitiesFair value of securities$5,424 $4,619 Amortized cost of securities, net of allowance for expected credit losses$5,282 $4,889 Gross unrealized gain (loss)$142 $(270)Fair value as % of amortized cost103%94%Number of security positions942 1,084 Number individually exceeding $2 million gain or loss2 33 Concentration of gains (losses) by type or industry (exceeding 5% of unrealized):Residential mortgage-backed securities$32 $(128)Other asset-backed securities25 (47)Banking14 (7)Asset managers12 (9)States and municipalities6 (48)Percentage rated investment grade95%96%

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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 table below sets forth the scheduled maturities of AFG’s available for sale fixed maturity securities at June 30, 2025, based on their fair values. Securities with sinking funds are reported at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers.

SecuritiesWithUnrealizedGainsSecuritiesWithUnrealizedLossesMaturityOne year or less2%11%After one year through five years26%20%After five years through ten years