Company: AFGC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001042046-25-000024
Chunk: 129

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 129
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 from operations outside of its property and casualty insurance segment for the six months ended June 30, 2025 and 2024 (dollars in millions): 

Six months ended June 30,20252024% ChangeRevenues:Net investment income$12 $15 (20%)Other income — P&C fees48 60 (20%)Other income8 8 —%Total revenues68 83 (18%)Costs and Expenses:Property and casualty insurance — loss adjustment and underwriting expenses16 30 (47%)Other expense — expenses associated with P&C fees32 30 7%Other expenses80 81 (1%)Costs and expenses, excluding interest charges on borrowed money128 141 (9%)Loss before income taxes, excluding realized gains and losses and interest charges on borrowed money(60)(58)3%Interest charges on borrowed money38 38 —%Loss before income taxes, excluding realized gains and losses$(98)$(96)2%

Holding Company and Other — Net Investment Income

AFG recorded net investment income on investments held outside of its property and casualty insurance segment of $12 million in the first six months of 2025 compared to $15 million in the first six months of 2024, a decrease of $3 million (20%) reflecting the impact of lower average investment balances.

Holding Company and Other — P&C Fees and Related Expenses

Summit, a workers’ compensation insurance subsidiary, collects fees from a small group of unaffiliated insurers for providing underwriting, policy administration and claims services. In addition, certain of AFG’s property and casualty insurance businesses collect fees from customers for ancillary services such as workplace safety programs and premium financing. In the first six months of 2025, AFG collected $48 million in fees for these services compared to $49 million in the first six months of 2024. Management views this fee income, net of the $32 million in the first six months of 2025 and $30 million in the first six months of 2024 in expenses incurred to generate such fees, as a reduction in the cost of underwriting its property and casualty insurance policies. In addition, AFG’s property and casualty insurance businesses earned $11 million during the first six months of 2024 in fees as compensation for providing services related to the 

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Table of ContentsAMERICAN FINANCIAL GROUP, INC. 10-QManagement’s