Company: AFGC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001042046-25-000011
Chunk: 164

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 164
---
 from policyholders that did receive a payment. Policyholder counts represent policies written by AFG subsidiaries and do not include assumed reinsurance.

202420232022Number of policyholders with no indemnity payments:Asbestos85 107 103 Environmental159 137 129 244 244 232 Number of policyholders with indemnity payments:Asbestos51 47 45 Environmental18 23 25 69 70 70 Total313 314 302 

Amounts paid (net of reinsurance recoveries) for asbestos and environmental claims, including LAE, were as follows (in millions):

202420232022Asbestos$6 $13 $12 Environmental5 2 11 Total$11 $15 $23 

The survival ratio is a measure often used by industry analysts to compare A&E reserves’ strength among companies. This ratio is typically calculated by dividing reserves for A&E exposures by the three-year average of paid losses, and therefore measures the number of years that it would take to pay off current reserves based on recent average payments. Because this ratio can be significantly impacted by a number of factors such as loss payout variability, caution should be exercised in attempting to determine reserve adequacy based simply on the survival ratio. At December 31, 2024, the property and casualty insurance segment’s three-year survival ratios compare favorably with industry survival ratios published by A.M. Best (as of December 31, 2023, and adjusted for several large portfolio transfers) as detailed in the following table:

Property and Casualty Insurance Reserves Three-Year Survival Ratio (Times Paid Losses)AsbestosEnvironmentalTotal A&EAFG (12/31/2024)19.4 26.2 22.0 Industry (12/31/2023)8.7 7.5 8.4 

42

During the third quarter of 2024, AFG completed an in-depth internal review of its asbestos and environmental exposures relating to the run-off operations of its property and casualty insurance segment. AFG annually conducts a comprehensive review of its asbestos and environmental reserves. In connection with these reviews, AFG engages with outside counsel and, as appropriate, engineering and consulting firms and specialty actuarial firms.

During the 2024 internal review, no new trends were identified and recent claims activity was generally consistent with AFG’s expectations resulting from its in-depth internal reviews in the prior three years, and the most recent external study