Company: AFGC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001042046-25-000035
Chunk: 124

Company: AMERICAN FINANCIAL GROUP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 124
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 Financial Condition and Results of Operations — Continued

The following table details AFG’s earnings before income taxes from its property and casualty insurance operations for the nine months ended September 30, 2025 and 2024 (dollars in millions):

Nine months ended September 30,20252024% ChangeGross written premiums$8,609 $8,490 1%Reinsurance premiums ceded(2,943)(2,811)5%Net written premiums5,666 5,679 —%Change in unearned premiums(426)(493)(14%)Net earned premiums5,240 5,186 1%Loss and loss adjustment expenses3,327 3,274 2%Commissions and other underwriting expenses1,568 1,494 5%Underwriting gain345 418 (17%)Net investment income554 589 (6%)Other income and expenses, net(52)(57)(9%)Earnings before income taxes$847 $950 (11%)Nine months ended September 30,20252024ChangeCombined Ratios:Specialty linesLoss and LAE ratio63.4%63.1%0.3%Underwriting expense ratio29.9%28.8%1.1%Combined ratio93.3%91.9%1.4%Aggregate — including exited linesLoss and LAE ratio63.5%63.1%0.4%Underwriting expense ratio29.9%28.8%1.1%Combined ratio93.4%91.9%1.5%

AFG reports the underwriting performance of its Specialty property and casualty insurance business in the following sub-segments: (i) Property and transportation, (ii) Specialty casualty and (iii) Specialty financial.

Historically, AFG reported the results of its internal reinsurance facility (that assumes business from several of AFG’s Specialty property and casualty businesses) in an Other Specialty sub-segment. Beginning in 2025, the internal reinsurance results are included within the same sub-segments as the ceding businesses to align with senior management’s evolving view of the program. The overall results for AFG’s Specialty property and casualty insurance operations are not impacted by this change. Information from prior periods has been recast for consistent presentation.

Gross Written Premiums

Gross written premiums (“GWP”) for AFG’s property and casualty insurance segment were $8.61 billion for