Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 127

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 127
---
9%227 46.8%0.1%$1,048 32.5%$984 31.4%1.1%

62

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

Property and transportation   Commissions and other underwriting expenses as a percentage of net earned premiums decreased 0.3 percentage points in the first six months of 2025 compared to the first six months of 2024 reflecting changes in the mix of business, 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 1.6 percentage points in the first six months of 2025 compared to the first six months of 2024 reflecting higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics and an increase in average commission rates in the excess and surplus business resulting from changes in reinsurance treaties.

Specialty financial   Commissions and other underwriting expenses as a percentage of net earned premiums increased 0.1 percentage points in the first six months of 2025 compared to the first six months of 2024 reflecting higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics, partially offset by the impact of higher earned premiums in the financial institutions business on the ratio and a change in the mix of business towards products with lower commission rates.

Property and Casualty Net Investment Income

Net investment income in AFG’s property and casualty insurance operations was $349 million in the first six months of 2025 compared to $394 million in the first six months of 2024, a decrease of $45 million (11%). The average invested assets and overall yield earned on investments held by AFG’s property and casualty insurance operations are provided below (dollars in millions):

Six months ended June 30,20252024Change% ChangeNet investment income:Net investment income, excluding alternative investments$329 $305 $24 8%Alternative investments20 89 (69)(78%)Total net investment income$349 $394 $(45)(11%)Average invested assets (at amortized cost)$15,894 $15,321 $573 4%Yield on fixed maturities (before investment expenses