Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 178

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 178
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2025 and the third quarter of 2024 in management fees paid to AFG by the AFG-managed CLOs (AFG’s consolidated managed investment entities). The management fees are eliminated in consolidation — see the other income line in the Consolidate MIEs column under “Results of Operations — Segmented Statement of Earnings.” Excluding amounts eliminated in consolidation, AFG recorded other income outside of its property and casualty insurance segment of $1 million in both the third quarter of 2025 and the third quarter of 2024.

Holding Company and Other — Other Expenses

Excluding the non-core special A&E charges recorded in the third quarters of 2025 and 2024 discussed below, AFG’s holding companies and other operations outside of its property and casualty insurance segment recorded other expenses of $39 million in the third quarter of 2025 compared to $38 million in the third quarter of 2024, an increase of $1 million (3%).

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

Holding Company and Other — Special A&E Charges

During the third quarters of 2025 and 2024, AFG performed in-depth internal reviews of A&E exposures as discussed under “Asbestos and environmental reserves” under “Results of Operations — Property and Casualty Insurance Segment — Net prior year reserve development.” As a result of the 2025 and 2024 reviews, AFG’s holding companies and other operations outside of its property and casualty insurance operations recorded pretax special non-core A&E charges of $25 million in the third quarter of 2025 and $14 million in the third quarter of 2024 to increase liabilities related to the A&E exposures of AFG’s former railroad and manufacturing operations. The charges in both periods reflect changes in the scope and costs of investigation and an increase in estimated remediation costs at a limited number of sites.

Holding Company and Other — Interest Charges on Borrowed Money

AFG’s holding companies and other operations outside of its property and casualty insurance segment recorded interest expense of $19 million in both the third quarter of 2025 and the third quarter of 2024.

Realized Gains (Losses) on Securities

AFG’s realized gains (losses) on securities were net gains of $12 million in the third quarter of 2025 compared to net losses