Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 84

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 84
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ities6.2 %7.2 %(4.4 %)Barclays Capital U.S. Universal Bond Index2.0 %6.2 %(13.0 %)

The following table shows AFG’s available for sale fixed maturity investments by Standard & Poor’s Corporation or comparable rating as of December 31, 2024 (dollars in millions).

Amortized Cost, net (*)Fair ValueAmount%S&P or comparable ratingAAA, AA, A$7,528 $7,294 70 %BBB2,565 2,537 24 %Total investment grade10,093 9,831 94 %BB175 176 2 %B38 37 — %CCC, CC, C43 45 1 %D12 12 — %Total non-investment grade268 270 3 %Not rated292 297 3 %Total$10,653 $10,398 100 %

(*)Amortized cost, net of allowance for expected credit losses.

At December 31, 2024, 96% (based on statutory carrying value of $10.46 billion) of AFG’s fixed maturity investments held by its insurance companies had a National Association of Insurance Commissioners (“NAIC”) designation of 1 or 2 (the highest of the six designations) based not only on the probability of loss but also on the severity of loss.

15

Regulation

AFG’s insurance company subsidiaries are subject to U.S. and international regulation in the jurisdictions where they do business. In general, the insurance laws of the various jurisdictions establish regulatory agencies with broad administrative powers governing, among other things, premium rates, solvency standards, licensing of insurers, agents and brokers, trade practices, forms of policies, maintenance of specified reserves and capital for the protection of policyholders, deposits of securities for the benefit of policyholders, investment activities and relationships between insurance subsidiaries and their parents and affiliates. Various transactions between insurance subsidiaries and their parents and affiliates must receive prior approval of the applicable insurance regulatory authorities and be disclosed. 

U.S. Regulation

Holding Company Statutes   AFG is subject to state statutes governing insurance holding company systems. Typically, those statutes require that AFG periodically file information with the appropriate state insurance commissioner, including information concerning capital structure, ownership, financial condition, dividend payments and other certain transactions with affiliates and general business operations.

Risk Based Capital Requirements