Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 113

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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Property and transportation   The 1.4 percentage points increase in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects lower earnings in the crop business, partially offset by improved results in the transportation and ocean marine businesses.

Specialty casualty   The 3.6 percentage points increase in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects higher claim severity in the excess and surplus and social services businesses.

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

Specialty financial   The 3.0 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects improved results in the surety and fidelity businesses.

Net prior year reserve development 

AFG’s Specialty property and casualty insurance operations recorded net favorable reserve development related to prior accident years of $24 million in the third quarter of 2025 compared to $17 million in the third quarter of 2024, an increase of $7 million (41%).

Property and transportation   Net favorable reserve development of $11 million in the third quarter of 2025 reflects lower than anticipated claim severity in the property and inland marine, aviation and ocean marine businesses, partially offset by higher than expected claim severity in the agribusiness operations. Net favorable reserve development of $14 million in the third quarter of 2024 reflects lower than anticipated claim severity in the ocean marine business and, to a lesser extent, lower than expected claim severity in the agribusiness, property and inland marine and aviation businesses.

Specialty casualty   Net favorable reserve development of $1 million in the third quarter of 2025 reflects lower than expected claim severity in the workers’ compensation businesses, partially offset by higher than anticipated claim severity in the excess and surplus and social services businesses. Net adverse reserve development of $6 million in the third quarter of 2024 reflects higher than anticipated claim severity in the umbrella and excess liability and public sector businesses, partially offset by lower than anticipated claim severity in the workers’ compensation businesses.

Specialty financial   Net favorable reserve development of $12 million in the third quarter of 2025 reflects lower than expected claim frequency in the financial institutions business and lower than anticipated claim severity in the surety and fidelity businesses. Net favorable reserve development of $9 million in the third quarter of 2024 reflects lower than anticipated claim severity in the