Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 174

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 174
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 a fully collateralized catastrophe bond. Based on data available at December 31, 2024, management estimates that AFG’s exposure to a catastrophic earthquake or windstorm that industry models indicate should statistically occur once in every 500 years is just over 2% of AFG’s Shareholders’ Equity.

Catastrophe losses of $23 million in the third quarter of 2025 resulted primarily from storms in multiple regions of the United States. Catastrophe losses of $90 million in the third quarter of 2024 resulted primarily from Hurricane Helene.

Commissions and Other Underwriting Expenses

AFG’s property and casualty commissions and other underwriting expenses (“U/W Exp”) were $520 million in the third quarter of 2025 compared to $510 million for the third quarter of 2024, an increase of $10 million (2%). AFG’s underwriting expense ratio, calculated as commissions and other underwriting expenses divided by net premiums earned, was 25.8% for the third quarter of 2025 compared to 24.8% for the third quarter of 2024, an increase of 1.0 percentage points. Detail of AFG’s property and casualty commissions and other underwriting expenses and underwriting expense ratios is shown below (dollars in millions):

Three months ended September 30,20252024Change inU/W Exp% of NEPU/W Exp% of NEP% of NEPProperty and transportation$152 16.3%$172 17.4%(1.1%)Specialty casualty236 29.0%215 27.0%2.0%Specialty financial132 49.3%123 45.8%3.5%$520 25.8%$510 24.8%1.0%

Property and transportation   Commissions and other underwriting expenses as a percentage of net earned premiums decreased 1.1 percentage points in the third quarter of 2025 compared to the third quarter of 2024. The decrease reflects 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 and the impact of lower earned premiums in the crop operations on the ratio (which has a lower commissions and other underwriting expense ratio than some of the other businesses in the Property and transportation sub-segment).

Specialty casualty   Commissions and other underwriting expenses as a percentage of net