AMERICAN FINANCIAL GROUP INC
For the period ended Dec 31, 2025. Filed Feb 25, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Feb 25, 2026
AFG$154.55-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-02-25.
0001042046-25-000011
GeneralSegmented Statement of EarningsProperty and Casualty InsuranceHolding Company, Other and UnallocatedSegmented Statement of EarningsProperty and Casualty InsuranceHolding Company, Other and UnallocatedRecent Accounting StandardsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-02-25.
0001042046-26-000010
GeneralSegmented Statement of EarningsProperty and Casualty InsuranceHolding Company, Other and UnallocatedSegmented Statement of EarningsProperty and Casualty InsuranceHolding Company, Other and UnallocatedRecent Accounting StandardsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 210 previous paragraphs and 205 current paragraphs.
77 unchanged; 97 reworded; 26 added; 32 removed; 4 previous and 5 current paragraphs rearranged.
Tables are not compared: 32 previous and 31 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (26)
Current report
(*)Adjustments to income tax expense related to sales of subsidiaries in prior years.
Current report
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.
Current report
Property and transportation Gross written premiums increased $27 million (5%) in the fourth quarter of 2025 compared to the fourth quarter of 2024. This increase was due primarily to growth in crop products that are heavily ceded, and to a lesser extent, growth in a transportation alternative risk transfer program with higher premium cessions. Average renewal rates increased approximately 6% for this group in the fourth quarter of 2025. Reinsurance premiums ceded as a percentage of gross written premiums increased 5 percentage points in the fourth quarter of 2025 compared to the fourth quarter of 2024, reflecting higher cessions in the crop and aviation businesses and growth in certain programs in the transportation businesses which cede a higher percentage of premiums than some of the other businesses in the Property and transportation sub-segment.
Current report
The Specialty property and casualty insurance operations generated an underwriting profit of $287 million in the fourth quarter of 2025 compared to $204 million in the fourth quarter of 2024, an increase of $83 million (41%). Higher underwriting profit in the Property and transportation sub-segment was partially offset by lower year-over-year underwriting profit in the Specialty casualty and Specialty financial sub-segments. Overall catastrophe losses were $4 million (0.2 points on the combined ratio) in the fourth quarter of 2025 compared to $21 million (1.1 points), including $1 million in net reinstatement premiums in the fourth quarter of 2024.
Current report
Specialty casualty The 6.6 percentage points increase in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects higher than anticipated claim severity in the excess and surplus, social services and California workers’ compensation businesses.
Current report
Specialty financial The 2.4 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects improved claim severity in the surety and fidelity businesses.
Current report
Property and transportation Commissions and other underwriting expenses as a percentage of net earned premiums decreased 6.2 percentage points in the fourth quarter of 2025 compared to the fourth quarter of 2024. The improvement reflects higher ceding commissions from reinsurers resulting from very strong crop insurance results, partially offset by higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics.
Current report
Specialty casualty Commissions and other underwriting expenses as a percentage of net earned premiums increased 3.8 percentage points in the fourth quarter of 2025 compared to the fourth quarter of 2024 reflecting an increase in average commission rates in certain excess and surplus businesses resulting from changes in reinsurance treaties, higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics and changes in the mix of business.
Current report
Specialty financial Commissions and other underwriting expenses as a percentage of net earned premiums increased 8.4 percentage points in the fourth quarter of 2025 compared to the fourth quarter of 2024 reflecting higher profit-based commissions to agents in the financial institutions business and higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics.
Current report
The $8 million change in allowance for impairments on securities in the fourth quarter of 2025 relates primarily to allowances on fixed maturities related to commercial real estate funds.
Current report
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.
Current report
Gross written premiums increased $161 million (2%) in 2025 compared to 2024. The Specialty property and casualty insurance operations continue to achieve year-over-year premium growth as a result of new business opportunities, a good renewal rate environment and increased exposures. Overall average renewal rates increased approximately 5% in 2025. Excluding the workers’ compensation businesses, renewal pricing increased approximately 6%.
Current report
Property and transportation Gross written premiums decreased $4 million in 2025 compared to 2024. This decrease was primarily the result of the impact of lower commodity prices on crop insurance premiums, partially offset by growth in the transportation businesses as a result of increased exposures, new business opportunities and a favorable rate environment. Average renewal rates increased approximately 7% for this group in 2025. Reinsurance premiums ceded as a percentage of gross written premiums increased 1 percentage point in 2025 compared to 2024, reflecting growth in certain programs in the transportation businesses which cede a higher percentage of premiums than some of the other businesses in the Property and transportation sub-segment and higher cessions in the crop and aviation businesses.
Current report
Specialty casualty Gross written premiums increased $77 million (2%) in 2025 compared to 2024. The higher-year-over-year premiums resulted primarily from the mergers and acquisitions liability business and growth across several of the targeted markets businesses resulting from new business opportunities, higher rates and strong policy retention and growth in the workers’ compensation businesses. These items were partially offset by lower premiums in the excess and surplus businesses and lower premiums due to a challenging market in the directors’ and officers’ liability business as well as the continued non-renewal of certain housing and daycare accounts in the social services businesses. Average renewal rates increased approximately 6% for this group in 2025. Excluding workers’ compensation businesses, renewal rates for this group increased approximately 8% in 2025. Reinsurance premiums ceded as a percentage of gross written premiums increased 1 percentage point in 2025 compared to 2024, reflecting higher cessions and higher reinsurance costs in the excess liability business and growth in the public sector and mergers and acquisitions liability businesses, both of which cede a larger percentage of premiums than some of the other businesses in the Specialty casualty sub-segment.
Current report
The Specialty property and casualty insurance operations generated an underwriting profit of $634 million in 2025 compared to $626 million in 2024, an increase of $8 million (1%). Higher underwriting profit in the Property and transportation and Specialty financial sub-segments was partially offset by lower underwriting profit in the Specialty casualty sub-segment. Overall catastrophe losses were $137 million (2.0 points on the combined ratio) for 2025 compared to catastrophe losses of $182 million (2.6 points), including $2 million in net reinstatement premiums, for 2024.
Current report
Property and transportation Underwriting profit for this group was $335 million in 2025 compared to $214 million in 2024, an increase of $121 million (57%) reflecting higher underwriting profitability in the crop insurance operations which benefitted from record yields for corn and soybeans and favorable commodity pricing trends throughout the growing season, partially offset by lower year-over-year underwriting profit in the property and inland marine business and transportation businesses. Catastrophe losses were $26 million (1.0 points on the combined ratio) in 2025 compared to catastrophe losses of $66 million (2.3 points), including $1 million in net reinstatement premiums, in 2024.
Current report
Specialty casualty Underwriting profit for this group was $129 million in 2025 compared to $279 million in 2024, a decrease of $150 million (54%), reflecting lower underwriting profit in the directors’ and officers’ liability, excess and surplus, mergers and acquisitions liability and workers’ compensation businesses. Catastrophe losses were $39 million (1.3 points on the combined ratio) in 2025 compared to catastrophe losses of $35 million (1.0 point), including $1 million in net reinstatement premiums, in 2024.
Current report
Specialty financial Underwriting profit for this group was $170 million in 2025 compared to $133 million in 2024, an increase of $37 million (28%). This year-over-year increase reflects higher underwriting profit in the surety, fidelity and financial institutions businesses. Catastrophe losses were $72 million (6.6 points on the combined ratio) in 2025 compared to catastrophe losses of $81 million (7.9 points) in 2024.
Current report
Property and transportation The 2.5 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses in 2025 compared to 2024, reflects very strong earnings in the crop business and growth and improved results in the property and inland marine business, which has a lower loss and LAE ratio than some of the other businesses in the Property and transportation sub-segment, partially offset by higher claim severity in the aviation business.
Current report
Specialty financial The 1.8 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses in 2025 compared to 2024, reflects improved results in the surety and fidelity businesses and growth in the financial institutions business, which has a lower loss and LAE ratio than some of the other businesses in the Specialty financial sub-segment, partially offset by growth in AFG’s European operations, which has a higher loss and LAE ratio than some of the other businesses in the Specialty financial sub-segment.
Current report
Specialty casualty Net adverse reserve development of $20 million in 2025 reflects higher than expected claim severity in the excess and surplus, social services, excess liability, public sector and general liability businesses, partially offset by lower than anticipated claim severity in the workers’ compensation and executive liability businesses.
Current report
Property and transportation Commissions and other underwriting expenses as a percentage of net earned premiums decreased 1.9 percentage points in 2025 compared to 2024 reflecting higher ceding commissions from reinsurers resulting from very strong crop insurance results, partially offset by higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics.
Current report
Specialty casualty Commissions and other underwriting expenses as a percentage of net earned premiums increased 2.3 percentage points in 2025 compared to 2024 reflecting an increase in average commission rates in certain excess and surplus businesses resulting from changes in reinsurance treaties, higher costs for software and other expenses associated with certain initiatives in IT security, customer experience and data analytics and changes in the mix of business.
Current report
The $16 million change in allowance for impairments on securities in 2025 reflects $7 million in new allowances on fixed maturities related to commercial real estate funds and additional $7 million of changes in allowances for various securities and mortgage loans that were previously impaired.
Current report
Realized Gain (Loss) on Subsidiaries
Current report
During the third quarter of 2025, AFG recorded a $3 million pretax realized gain resulting from the remeasurement of its existing investment in Radion to fair value (see Note B — “Acquisitions of Businesses” to the financial statements) and a $2 million pretax realized loss on the write-off of certain intangible assets (see Note H — “Goodwill and Other Intangibles”to the financial statements).
Removed paragraphs (32)
Previous report
Other specialty The amounts shown as reinsurance premiums ceded represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty property and casualty insurance sub-segments. Reinsurance premiums assumed decreased $12 million (17%) in the fourth quarter of 2024 compared to the fourth quarter of 2023 reflecting a decrease in premiums retained, primarily from businesses in the Specialty casualty sub-segment.
Previous report
The Specialty property and casualty insurance operations generated an underwriting profit of $204 million in the fourth quarter of 2024 compared to $212 million in the fourth quarter of 2023, a decrease of $8 million (4%). Higher underwriting profit in the Property and transportation and Specialty financial sub-segments was more than offset by lower year-over-year underwriting profit in the Specialty casualty sub-segment, which was impacted by net adverse prior year reserve development in certain social inflation exposed businesses. Overall catastrophe losses were $21 million (1.1 points on the combined ratio), including $1 million in net reinstatement premiums in the fourth quarter of 2024 compared to catastrophe losses of $25 million (1.4 points), including $1 million in net reinstatement premiums in the fourth quarter of 2023.
Previous report
Other specialty This group reported an underwriting loss of $14 million for the fourth quarter of 2024 and the fourth quarter of 2023, reflecting losses in the business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty sub-segments. Favorable changes in estimated losses from Hurricane Helene resulted in a favorable impact of $1 million from catastrophe losses in the fourth quarter of 2024 compared to catastrophe losses of $8 million in the fourth quarter of 2023.
Previous report
Property and transportation The 1.7 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects improved profitability in the crop, ocean marine and property and inland marine businesses, partially offset by higher claim severity in the commercial auto business.
Previous report
Specialty casualty The 1.9 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects growth in certain programs in the social services business that have a lower loss and LAE ratio than some of the other businesses in the Specialty casualty sub-segment and improved results in the workers’
Previous report
compensation businesses, partially offset by higher claim severity in the excess and surplus business and the impact of pressure on rates in the executive liability business.
Previous report
Specialty financial The 1.4 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects growth in the financial institutions business, which has a lower loss and LAE ratio than some of the other businesses in the Specialty financial sub-segment.
Previous report
Other specialty In addition to the development discussed above, total Specialty prior year reserve development includes net adverse reserve development of $9 million in the fourth quarter of 2024 and less than $1 million in the fourth quarter of 2023 primarily associated with AFG’s internal reinsurance program. The net adverse reserve development in 2024 is primarily related to social inflation exposed business assumed from the Specialty casualty sub-segment.
Previous report
Specialty casualty Commissions and other underwriting expenses as a percentage of net earned premiums decreased 1.6 percentage points in the fourth quarter of 2024 compared to the fourth quarter of 2023 reflecting a change in the mix of business towards products with lower commission rates.
Previous report
(*)Adjusts the yield on equity securities and tax-exempt bonds to the fully taxable equivalent yield.
Previous report
Gross written premiums increased $86 million (2%) in 2023 compared to 2022 reflecting the impact of increased rates, retentions and exposures in the transportation and ocean marine businesses and slightly higher crop premium related to the CRS acquisition in the fourth quarter of 2023. These items were partially offset by the impact of 2023 spring commodity futures pricing and related volatility on premiums in the crop business. Average renewal rates increased approximately 6% for this group in 2023. Reinsurance premiums ceded as a percentage of gross written premiums were comparable in 2023 and 2022 reflecting growth in alternative risk transfer products in the transportation businesses, offset by the impact of lower cessions in the crop business. Both of these businesses cede a larger percentage of premiums than some of the other businesses in the Property and transportation sub-segment.
Previous report
Gross written premiums increased $253 million (6%) in 2023 compared to 2022 due primarily to increased exposures from payroll growth and new business in the workers’ compensation businesses, new business opportunities, strong policy retention and rate increases in several of the targeted markets businesses and increased exposures and higher renewal rates in the excess and surplus and excess liability businesses. This growth was partially offset by lower premiums in the mergers and acquisitions liability and executive liability businesses. Average renewal rates increased approximately 4% for this group in 2023. Excluding overall rate decreases in the workers’ compensation businesses, renewal rates for this group increased approximately 6% in 2023. Reinsurance premiums ceded as a percentage of gross written premiums decreased 1 percentage point in 2023 compared to 2022 reflecting higher premiums in the workers’ compensation businesses (which cede a lower percentage of premiums than some of the other businesses in the Specialty casualty sub-segment) and lower cessions in the environmental and mergers and acquisitions liability businesses and at ABA Insurance Services.
Previous report
Other specialty The amounts shown as reinsurance premiums ceded represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty property and casualty insurance sub-segments. Reinsurance premiums assumed decreased $22 million (8%) in 2024 compared to 2023 and increased $10 million (4%) in 2023 compared to 2022, reflecting changes in premiums retained, primarily from businesses in the Specialty casualty sub-segment.
Previous report
The Specialty property and casualty insurance operations generated an underwriting profit of $633 million in 2023 compared to $780 million in 2022, a decrease of $147 million (19%). This decrease reflects lower underwriting profit in each of the Specialty property and casualty insurance sub-segments. Overall catastrophe losses were $165 million (2.5 points on the combined ratio), including $3 million in net reinstatement premiums, for 2023 compared to catastrophe losses of $93 million (1.5 points), including $5 million in net reinstatement premiums, for 2022.
Previous report
Underwriting profit for this group was $184 million in 2023 compared to $208 million in 2022, a decrease of $24 million (12%). Below average underwriting profitability in the crop insurance operations was partially offset by higher year-over-year underwriting profit in the property and inland marine business. Catastrophe losses were $53 million (2.0 points on the combined ratio), including $2 million in net reinstatement premiums, in 2023 compared to catastrophe losses of $45 million (1.9 points), including $3 million in net reinstatement premiums, in 2022.
Previous report
Underwriting profit for this group was $375 million in 2023 compared to $500 million in 2022, a decrease of $125 million (25%). The lower year-over-year underwriting profit was due primarily to lower favorable prior year reserve development in the workers’ compensation businesses and adverse reserve development in the public sector and excess and surplus businesses, partially offset by higher favorable prior year reserve development in the executive liability business. Catastrophe losses were $36 million (1.2 points on the combined ratio), including $1 million in net reinstatement premiums, in 2023 compared to catastrophe losses of $11 million (0.5 points) in 2022.
Previous report
Underwriting profit for this group was $110 million in 2023 compared to $114 million in 2022, a decrease of $4 million (4%). This decrease reflects higher year-over-year catastrophe losses in the financial institutions business and lower underwriting profit in the surety business. Catastrophe losses were $49 million (5.7 points on the combined ratio) in 2023 compared to catastrophe losses of $36 million (4.9 points), including $3 million in net reinstatement premiums, in 2022.
Previous report
Other specialty This group reported an underwriting loss of $59 million in 2024 compared to $36 million in 2023, an increase of $23 million (64%), reflecting higher losses in the business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty sub-segments. Catastrophe losses were $4 million in 2024 compared to $27 million in 2023.
Previous report
This group reported an underwriting loss of $36 million in 2023 compared to $42 million in 2022, a decrease of $6 million (14%), reflecting lower losses in the business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty sub-segments. The underwriting loss in 2022 relates primarily to losses from social inflation exposed operations in the Specialty casualty sub-segment. Catastrophe losses were $27 million in 2023 compared to $1 million in 2022.
Previous report
The 0.2 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses in 2023 compared to 2022 reflects lower claim frequency and growth in the financial institutions business, which has a lower loss and LAE ratio than some of the other businesses in the Specialty financial sub-segment, partially offset by higher claim severity in the innovative markets business.
Previous report
Net favorable reserve development of $92 million in 2022 reflects lower than anticipated losses in the crop business, lower than expected claim frequency in the trucking and ocean marine businesses and in the Singapore operations, lower than expected claim frequency and severity in the aviation business and lower than anticipated claim severity in the property and inland marine business.
Previous report
Net favorable reserve development of $190 million in 2022 reflects lower than anticipated claim severity in the workers’ compensation businesses and lower than expected claim frequency in the executive liability and excess and surplus businesses, partially offset by higher than anticipated claim severity in the general liability, umbrella and excess liability, and certain targeted markets businesses.
Previous report
Net favorable reserve development of $47 million in 2022 reflects lower than anticipated claim frequency in the surety, trade credit and financial institutions businesses.
Previous report
Other specialty In addition to the development discussed above, total Specialty prior year reserve development includes net adverse reserve development of $45 million, less than $1 million and $40 million in 2024, 2023, and 2022, respectively, primarily associated with AFG’s internal reinsurance program. The net adverse reserve development reflects $50 million, $4 million and $44 million in 2024, 2023 and 2022, respectively, of net adverse development associated with AFG’s internal reinsurance program, primarily related to social inflation exposed business assumed from the Specialty casualty sub-segment.
Previous report
Catastrophe losses of $88 million in 2022 (before $5 million in net reinstatement premiums) resulted primarily from winter storms in multiple regions of the United States in the first quarter, storms in multiple regions of the United States in the second quarter, Hurricane Ian in the third quarter and Winter Storm Elliott in the fourth quarter.
Previous report
Commissions and other underwriting expenses as a percentage of net earned premiums increased 1.7 percentage points in 2023 compared to 2022 reflecting the impact of lower profit-based ceding commissions related to below average profitability in the crop operations, the impact on the ratio of lower earned premiums in the crop operations (which has a lower commissions and other underwriting expense ratio compared to some of the other businesses in the Property and transportation sub-segment) and higher expenses related to certain technology initiatives.
Previous report
Commissions and other underwriting expenses as a percentage of net earned premiums increased 0.2 percentage points in 2023 compared to 2022 reflecting higher expenses related to certain technology initiatives, partially offset by the impact on the ratio of growth in earned premiums in the workers’ compensation businesses.
Previous report
Commissions and other underwriting expenses as a percentage of net earned premiums decreased 0.1 percentage points in 2023 compared to 2022 reflecting the impact on the ratio of growth in earned premiums in the financial institutions and innovative markets businesses, partially offset by higher expenses related to certain technology initiatives and the impact of lower profit-based commissions to agents and lower reinstatement premiums recorded in 2022 as a result of losses from Hurricane Ian.
Previous report
(*)Adjusts the yield on equity securities and tax-exempt bonds to the fully taxable equivalent yield.
Previous report
Excluding the non-core special A&E charge and the non-core gain (loss) on retirement of debt discussed below, AFG’s holding companies and other operations outside of its property and casualty insurance segment recorded other expenses of $162 million in 2023 compared to $143 million in 2022, an increase of $19 million (13%) reflecting the favorable impact of poor stock market performance in 2022 on expenses related to deferred compensation obligations to employees that are tied to stock market performance. To mitigate the impact of fair value changes related to the equity components of these obligations, AFG entered into a total return swap in the second half of 2022.
Previous report
See Note C — “Segments of Operations” to the financial statements for accounting guidance adopted in the fourth quarter of 2024, which requires enhanced disclosures about significant segment expenses and a description of the composition of other segment expenses by business segment. The title and position of the chief operating decision maker (“CODM”) and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources is also required to be disclosed.
Reworded paragraphs (97)
Previous wording
Net earnings were $255 million in the fourth quarter of 2024 compared to $263 million in the fourth quarter of 2023 reflecting net realized losses on securities in the fourth quarter of 2024 compared to net realized gains on securities in the fourth quarter of 2023, partially offset by higher core net operating earnings. Core net operating earnings for the fourth quarter of 2024 increased $24 million compared to the fourth quarter of 2023 reflecting higher net investment income, including improved returns on alternative investments, partially offset by lower underwriting profit. Net realized losses on securities of $7 million in the fourth quarter of 2024 and net realized gains on securities of $25 million in the fourth quarter of 2023 include $1 million of after-tax losses and $22 million of after-tax gains, respectively, from the change in fair value of equity securities that were still held at the balance sheet date.
Current wording
Net earnings were $299 million in the fourth quarter of 2025 compared to $255 million in the fourth quarter of 2024 reflecting higher core net operating earnings. Core net operating earnings for the fourth quarter of 2025 increased $43 million compared to the fourth quarter of 2024 reflecting higher underwriting profit, partially offset by lower net investment income from AFG’s alternative investment portfolio (partnerships and similar investments and AFG-managed CLOs). Net realized losses on securities in the fourth quarter of 2025 and 2024 include $2 million and $1 million of after-tax losses, respectively, resulting from the change in fair value of equity securities that were still held at the balance sheet date.
Previous wording
Net earnings were $852 million for the full-year of 2023 compared to $898 million in 2022 reflecting lower core net operating earnings and a special A&E charge recorded in the third quarter of 2023, partially offset by lower net realized losses on securities in 2023 compared to 2022. Core net operating earnings for 2023 decreased $98 million compared to 2022 reflecting lower returns on AFG’s alternative investment portfolio when compared to the strong performance of this portfolio in 2022 and lower underwriting profit, partially offset by higher investment income outside of alternative investments. Net realized losses on securities of $28 million in 2023 and $92 million in 2022 include $2 million and $75 million, respectively, of after-tax losses from the change in fair value of equity securities that were still held at the balance sheet date.
Current wording
Net earnings were $842 million for the full-year of 2025 compared to $887 million in 2024 reflecting lower core net operating earnings. Core net operating earnings for 2025 decreased $42 million compared to 2024 reflecting lower net investment income from AFG’s alternative investment portfolio, partially offset by higher underwriting profit and higher investment income outside of alternative investments. Net realized gains on securities in 2025 of $8 million and 2024 of less than $1 million include after-tax gains of $15 million and $19 million, respectively, resulting from the change in fair value of equity securities that were still held at the balance sheet date.
Previous wording
Net earnings were $887 million for the full-year of 2024 compared to $852 million in 2023 reflecting the impact of net realized losses on securities in 2023 and higher core net operating earnings. Core net operating earnings for 2024 increased $7 million compared to 2023. Higher investment income outside of alternative investments was partially offset by lower returns on AFG’s alternative investment portfolio and lower underwriting profit. Net realized gains on securities of less than $1 million in 2024 and net realized losses on securities of $28 million in 2023 include $19 million of after-tax gains and $2 million of after-tax losses, respectively, from the change in fair value of equity securities that were still held at the balance sheet date.
Current wording
Net earnings were $887 million for the full-year of 2024 compared to $852 million in 2023 reflecting the impact of net realized losses on securities in 2023 and higher core net operating earnings. Core net operating earnings for 2024 increased $7 million compared to 2023. Higher investment income outside of alternative investments was partially offset by lower returns on AFG’s alternative investment portfolio and lower underwriting profit. Net realized gains on securities of less than $1 million in 2024 and net realized losses on securities of $28 million in 2023 include $19 million of after-tax gains and $2 million of after-tax losses, respectively, resulting from the change in fair value of equity securities that were still held at the balance sheet date.
Previous wording
AFG’s property and casualty insurance operations contributed $378 million in pretax earnings in the fourth quarter of 2024 compared to $357 million in the fourth quarter of 2023, an increase of $21 million (6%) as a result of higher net investment income which was partially offset by lower underwriting profit.
Current wording
AFG’s property and casualty insurance operations contributed $440 million in pretax earnings in the fourth quarter of 2025 compared to $378 million in the fourth quarter of 2024, an increase of $62 million (16%). The increase in pretax earnings reflects higher underwriting profit, partially offset by lower investment income from AFG’s alternative investment portfolio (partnerships and similar investments and AFG-managed CLOs).
Previous wording
AFG’s statutory combined ratio has been better than the U.S. industry average for 37 of the most recent 39 years. Management believes that AFG’s insurance operations have performed better than the industry as a result of its specialty niche focus, product line diversification, stringent underwriting discipline and alignment of compensation incentives.
Current wording
AFG’s statutory combined ratio has been better than the U.S. industry average for 38 of the most recent 40 years. Management believes that AFG’s insurance operations have performed better than the industry as a result of its specialty niche focus, product line diversification, stringent underwriting discipline and alignment of compensation incentives.
Previous wording
Gross written premiums (“GWP”) for AFG’s property and casualty insurance segment were $2.04 billion for the fourth quarter of 2024 compared to $1.99 billion for the fourth quarter of 2023, an increase of $51 million (3%). Detail of AFG’s property and casualty gross written premiums is shown below (dollars in millions):
Current wording
Gross written premiums (“GWP”) for AFG’s property and casualty insurance segment were $2.09 billion for the fourth quarter of 2025 compared to $2.04 billion for the fourth quarter of 2024, an increase of $42 million (2%). Detail of AFG’s property and casualty gross written premiums is shown below (dollars in millions):
Previous wording
Reinsurance premiums ceded (“Ceded”) for AFG’s property and casualty insurance segment were 29% of gross written premiums for the fourth quarter of 2024 compared to 27% of gross written premiums for the fourth quarter of 2023, an increase of 2 percentage points. Detail of AFG’s property and casualty reinsurance premiums ceded is shown below (dollars in millions):
Current wording
Reinsurance premiums ceded (“Ceded”) for AFG’s property and casualty insurance segment were 31% of gross written premiums for the fourth quarter of 2025 compared to 29% of gross written premiums for the fourth quarter of 2024, an increase of 2 percentage points. Detail of AFG’s property and casualty reinsurance premiums ceded is shown below (dollars in millions):
Previous wording
Net written premiums (“NWP”) for AFG’s property and casualty insurance segment were $1.46 billion for the fourth quarter of 2024 compared to $1.45 billion for the fourth quarter of 2023, an increase of $15 million (1%). Detail of AFG’s property and casualty net written premiums is shown below (dollars in millions):
Current wording
Net written premiums (“NWP”) for AFG’s property and casualty insurance segment were $1.44 billion for the fourth quarter of 2025 compared to $1.46 billion for the fourth quarter of 2024, a decrease of $16 million (1%). Detail of AFG’s property and casualty net written premiums is shown below (dollars in millions):
Previous wording
Net earned premiums (“NEP”) for AFG’s property and casualty insurance segment were $1.85 billion for the fourth quarter of 2024 compared to $1.73 billion for the fourth quarter of 2023, an increase of $118 million (7%). Detail of AFG’s property and casualty net earned premiums is shown below (dollars in millions):
Current wording
Net earned premiums (“NEP”) for AFG’s property and casualty insurance segment were $1.81 billion for the fourth quarter of 2025 compared to $1.85 billion for the fourth quarter of 2024, a decrease of $44 million (2%). Detail of AFG’s property and casualty net earned premiums is shown below (dollars in millions):
Previous wording
Gross written premiums for the fourth quarter of 2024 increased $51 million (3%) compared to the fourth quarter of 2023 driven primarily by new business opportunities, a good renewal rate environment and increased exposures. Overall average renewal rates increased approximately 7% in the fourth quarter of 2024. Excluding overall rate decreases in the workers’ compensation businesses, renewal rates increased approximately 8%.
Current wording
Gross written premiums for the fourth quarter of 2025 increased $42 million (2%) compared to the fourth quarter of 2024 driven primarily by new business opportunities, a good renewal rate environment and increased exposures. Overall average renewal rates increased approximately 4% in the fourth quarter of 2025. Excluding the workers’ compensation businesses, renewal pricing increased approximately 5%.
Previous wording
Specialty casualty Gross written premiums increased $57 million (5%) in the fourth quarter of 2024 compared to the fourth quarter of 2023. The primary drivers of growth were new business opportunities and favorable renewal pricing in several of the targeted markets businesses and in the excess and surplus business. The mergers and acquisitions liability business also benefited from an increase in mergers and acquisition activity. This growth was tempered by lower year-over-year workers’ compensation premiums. Average renewal rates for this group increased approximately 8% in the fourth quarter of 2024. Excluding rate decreases in the workers’ compensation businesses, renewal rates for this group increased approximately 11%. Reinsurance premiums ceded as a percentage of gross written premiums increased 1 percentage point for the fourth quarter of 2024 compared to the fourth quarter of 2023 reflecting higher premiums in the excess and surplus and mergers and acquisitions liability businesses, which cede a larger percentage of premiums than some of the other businesses in the Specialty casualty sub-segment as well as higher cessions in the public sector business, partially offset by lower cessions in certain more heavily reinsured products in the social services business.
Current wording
Specialty casualty Gross written premiums increased $27 million (2%) in the fourth quarter of 2025 compared to the fourth quarter of 2024. The primary drivers of growth included new business opportunities and favorable renewal pricing in the targeted markets businesses, new business opportunities in the mergers and acquisitions liability business, growth in the workers’ compensation businesses and new premiums from a start-up business. This growth was tempered by lower year-over-year premiums in the executive liability and excess and surplus businesses. Average renewal rates for this group increased approximately 5% in the fourth quarter of 2025. Excluding workers’ compensation businesses, renewal rates for this group increased approximately 6%. Reinsurance premiums ceded as a percentage of gross written premiums for the fourth quarter of 2025 were comparable to the fourth quarter of 2024.
Previous wording
Specialty financial Gross written premiums increased $32 million (11%) in the fourth quarter of 2024 compared to the fourth quarter of 2023 due primarily to growth in the financial institutions business. Average renewal rates for this group increased approximately 3% in the fourth quarter of 2024. Reinsurance premiums ceded as a percentage of gross written premiums decreased 1 percentage point in the fourth quarter of 2024 compared to the fourth quarter of 2023 reflecting the impact of lower gross written premiums in the innovative markets business, which cedes a larger percentage of premiums than some of the other businesses in the Specialty financial sub-segment.
Current wording
Specialty financial Gross written premiums decreased $12 million (4%) in the fourth quarter of 2025 compared to the fourth quarter of 2024. Higher premiums in AFG’s European operations were more than offset by lower premiums in the financial institutions business. Average renewal rates for this group increased approximately 1% in the fourth quarter of 2025. Reinsurance premiums ceded as a percentage of gross written premiums increased 6 percentage points in the fourth quarter of 2025 compared to the fourth quarter of 2024, reflecting higher cessions of catastrophe exposed business in the financial institutions business.
Previous wording
Performance measures such as the combined ratio are often used by property and casualty insurers to help users of their financial statements better understand the company’s performance. The combined ratio is the sum of the loss and loss adjustment expenses (“LAE”) and underwriting expense ratios. These ratios are calculated by dividing each of the respective expenses by net earned premiums. The table below (dollars in millions) details the components of the combined ratio for AFG’s property and casualty insurance segment:
Current wording
Performance measures such as the combined ratio are often used by property and casualty insurers to help users of their financial statements better understand the company’s performance. The combined ratio is the sum of the loss and loss adjustment expenses (“LAE”) and underwriting expense ratios. These ratios are calculated by dividing each of the respective expenses by net earned premiums. The table below (dollars in millions) details the components of the combined ratio and underwriting profit for AFG’s property and casualty insurance segment:
Previous wording
Property and transportation Underwriting profit for this group was $82 million for the fourth quarter of 2024 compared to $67 million in the fourth quarter of 2023, an increase of $15 million (22%), reflecting higher year-over-year underwriting profitability in the crop insurance operations. Catastrophe losses for this group were $10 million (1.3 points on the combined ratio), including $1 million in net reinstatement premiums in the fourth quarter of 2024 compared to catastrophe losses of $5 million (0.6 points), including $2 million in net reinstatement premiums in the fourth quarter of 2023.
Current wording
Property and transportation Underwriting profit for this group was $216 million for the fourth quarter of 2025 compared to $81 million in the fourth quarter of 2024, an increase of $135 million (167%), reflecting higher underwriting profitability in the crop insurance operations resulting from record yields for corn and soybeans and favorable commodity pricing trends throughout the growing season. Catastrophe losses for this group were a favorable impact of less than $1 million (0.1 points on the combined ratio) in the fourth quarter of 2025 compared to catastrophe losses of $10 million (1.3 points), including $1 million in net reinstatement premiums in the fourth quarter of 2024.
Previous wording
Specialty casualty Underwriting profit for this group was $82 million for the fourth quarter of 2024 compared to $114 million in the fourth quarter of 2023, a decrease of $32 million (28%). Higher year-over-year underwriting profit in the targeted markets businesses was more than offset by lower underwriting profit in the excess liability, workers’ compensation and executive liability businesses. Catastrophe losses, including the impact of lower than previously estimated losses from Hurricane Helene, had a favorable impact of $5 million (0.8 points on the combined ratio) compared to catastrophe losses of $8 million (1.1 points), including a $1 million favorable impact from lower than previously estimated net reinstatement premiums in the fourth quarter of 2023.
Current wording
Specialty casualty Underwriting profit for this group was $27 million for the fourth quarter of 2025 compared to $69 million in the fourth quarter of 2024, a decrease of $42 million (61%). Higher year-over-year underwriting profit in certain excess and surplus businesses and the executive liability business were more than offset by lower underwriting results in several social inflation exposed businesses and the workers’ compensation and general liability businesses. Catastrophe losses for this group had favorable impacts of $3 million (0.3 points on the combined ratio) in the fourth quarter of 2025 and $6 million (0.7 points) in the fourth quarter of 2024. Catastrophe losses in the fourth quarter of 2024 include the favorable impact from lower than previously estimated losses from Hurricane Helene.
Previous wording
Specialty financial Underwriting profit for this group was $54 million for the fourth quarter of 2024 compared to $45 million in the fourth quarter of 2023, an increase of $9 million (20%). This year-over-year increase reflects higher underwriting profit in the financial institutions business. Catastrophe losses were $17 million (6.2 points on the combined ratio) in the fourth quarter of 2024 compared to $4 million (2.0 points) in the fourth quarter of 2023.
Current wording
Specialty financial Underwriting profit for this group was $44 million for the fourth quarter of 2025 compared to $54 million in the fourth quarter of 2024, a decrease of $10 million (19%). Higher underwriting profit in the fidelity business was more than offset by lower underwriting profit in the financial institutions business. Catastrophe losses were $7 million (2.5 points on the combined ratio) in the fourth quarter of 2025 compared to $17 million (6.2 points) in the fourth quarter of 2024.
Previous wording
Aggregate Aggregate underwriting results for AFG’s property and casualty insurance segment include adverse prior year reserve development of $2 million in the fourth quarter of 2024 and $1 million in the fourth quarter of 2023 related to business outside of the Specialty group that AFG no longer writes.
Current wording
Aggregate Aggregate underwriting results for AFG’s property and casualty insurance segment include adverse prior year reserve development of $3 million in the fourth quarter of 2025 and $2 million in the fourth quarter of 2024 related to business outside of the Specialty group that AFG no longer writes.
Previous wording
AFG’s overall loss and LAE ratio was 63.8% for the fourth quarter of 2024 compared to 60.8% for the fourth quarter of 2023, an increase of 3.0 percentage points. The components of AFG’s property and casualty losses and LAE amounts and ratio are detailed below (dollars in millions):
Current wording
AFG’s overall loss and LAE ratio was 58.8% for the fourth quarter of 2025 compared to 63.8% for the fourth quarter of 2024, a decrease of 5.0 percentage points. The components of AFG’s property and casualty losses and LAE amounts and ratio are detailed below (dollars in millions):
Previous wording
The current accident year loss and LAE ratio, excluding catastrophe losses for AFG’s Specialty property and casualty insurance operations was 60.8% for the fourth quarter of 2024 compared to 62.6% in the fourth quarter of 2023, a decrease of 1.8 percentage points.
Current wording
The current accident year loss and LAE ratio, excluding catastrophe losses for AFG’s Specialty property and casualty insurance operations was 60.0% for the fourth quarter of 2025 compared to 60.8% in the fourth quarter of 2024, a decrease of 0.8 percentage points.
Previous wording
The 1.1 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses in 2023 compared to 2022 is due primarily to the impact of elevated large loss activity in the property and inland marine business in 2022 and improved results in certain transportation businesses, partially offset by lower profit in the crop business.
Current wording
Property and transportation The 8.9 percentage points decrease in the loss and LAE ratio for the current year, excluding catastrophe losses, reflects very strong earnings in the crop business, partially offset by higher claim severity in certain transportation businesses.
Previous wording
AFG’s Specialty property and casualty insurance operations recorded net adverse reserve development related to prior accident years of $34 million in the fourth quarter of 2024 compared to net favorable reserve development related to prior accident years of $57 million in the fourth quarter of 2023, a change of $91 million (160%).
Current wording
AFG’s Specialty property and casualty insurance operations recorded net favorable reserve development related to prior accident years of $30 million in the fourth quarter of 2025 compared to net adverse reserve development related to prior accident years of $34 million in the fourth quarter of 2024, a change of $64 million (188%).
Previous wording
Property and transportation Net favorable reserve development of $3 million in the fourth quarter of 2024 reflects lower than anticipated losses in the crop business and lower than expected claim severity in the aviation business, partially offset by higher than anticipated claim severity in the commercial auto business. Net favorable reserve development of $12 million in the fourth quarter of 2023 reflects lower than anticipated losses in the crop business and lower than expected claim frequency in the ocean marine and property and inland marine businesses.
Current wording
Property and transportation Net favorable reserve development of $20 million in the fourth quarter of 2025 reflects lower than anticipated losses in the crop business and lower than anticipated claim severity in the commercial auto, property and inland marine and ocean marine businesses. Net favorable reserve development of $2 million in the fourth quarter of 2024 reflects lower than anticipated losses in the crop business and lower than expected claim severity in the property and inland marine business, partially offset by higher than anticipated claim severity in the commercial auto business.
Previous wording
Specialty casualty Net adverse reserve development of $36 million in the fourth quarter of 2024 reflects higher than anticipated claim frequency and severity in the umbrella and excess liability businesses and higher than expected claim severity in the social services and general liability businesses, partially offset by lower than expected claim severity in the workers’ compensation businesses. Net favorable reserve development of $37 million in the fourth quarter of 2023 reflects lower than anticipated claim severity in the workers’ compensation businesses, partially offset by higher than anticipated claim severity in the excess and surplus business and higher than expected claim frequency and severity in the excess liability and general liability businesses.
Current wording
Specialty casualty Net favorable reserve development of $1 million in the fourth quarter of 2025 reflects lower than expected claim severity in the workers’ compensation, executive liability and social inflation exposed businesses, partially offset by higher than anticipated claim severity in the excess and surplus, excess liability and public sector businesses. Net adverse reserve development of $44 million in the fourth quarter of 2024 reflects higher than anticipated claim frequency and severity in the umbrella and excess liability businesses and higher than expected claim severity in the social services and general liability businesses, partially offset by lower than expected claim severity in the workers’ compensation businesses.
Previous wording
Specialty financial Net favorable reserve development of $8 million in the fourth quarter of 2024 reflects lower than anticipated claim frequency and severity in the financial institutions business and lower than expected claim severity in the fidelity business. Net favorable reserve development of $8 million in the fourth quarter of 2023 reflects lower than anticipated claim frequency and severity in the fidelity business and lower than expected claim frequency in the financial institutions and trade credit businesses.
Current wording
Specialty financial Net favorable reserve development of $9 million in the fourth quarter of 2025 reflects lower than anticipated claim severity in the trade credit and surety businesses and lower than anticipated claim frequency in the financial institutions business. Net favorable reserve development of $8 million in the fourth quarter of 2024 reflects lower than anticipated claim frequency and severity in the financial institutions business and lower than expected claim severity in the fidelity business.
Previous wording
Aggregate Aggregate net prior accident years reserve development for AFG’s property and casualty insurance segment includes net adverse reserve development of $2 million in the fourth quarter of 2024 and $1 million in the fourth quarter of 2023 related to business outside of the Specialty group that AFG no longer writes.
Current wording
Aggregate Aggregate net prior accident years reserve development for AFG’s property and casualty insurance segment includes net adverse reserve development of $3 million in the fourth quarter of 2025 and $2 million in the fourth quarter of 2024 related to business outside of the Specialty group that AFG no longer writes.
Previous wording
AFG generally seeks to reduce its exposure to catastrophes (whether resulting from climate change or otherwise) through individual risk selection, including minimizing coastal and known fault-line exposures, and the purchase of reinsurance. Based on data available at December 31, 2024 (including the expected placement of a catastrophe bond structure or additional other reinsurance protection in the second quarter of 2025), AFG’s exposure to a catastrophic earthquake or windstorm that industry models indicate should statistically occur once in every 100, 250 or 500 years as a percentage of AFG’s Shareholders’ Equity is shown below:
Current wording
AFG generally seeks to reduce its exposure to catastrophes (whether resulting from climate change or otherwise) through individual risk selection, including minimizing coastal and known fault-line exposures, and the purchase of reinsurance. Based on data available at December 31, 2025, 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 less than 3% of AFG’s Shareholders’ Equity.
Previous wording
Catastrophe losses of $20 million (before $1 million in net reinstatement premiums) in the fourth quarter of 2024 resulted primarily from Hurricane Milton. Catastrophe losses of $24 million (before $1 million in net reinstatement premiums) in the fourth quarter of 2023 resulted primarily from storms in multiple regions of the United States.
Current wording
Catastrophe losses of $4 million in the fourth quarter of 2025 resulted primarily from storms in multiple regions of the United States. Catastrophe losses of $20 million (before $1 million in net reinstatement premiums) in the fourth quarter of 2024 resulted primarily from Hurricane Milton.
Previous wording
AFG’s property and casualty commissions and other underwriting expenses (“U/W Exp”) were $467 million in the fourth quarter of 2024 compared to $468 million for the fourth quarter of 2023, a decrease of $1 million. AFG’s underwriting expense ratio, calculated as commissions and other underwriting expenses divided by net premiums earned, was 25.3% for the fourth quarter of 2024 compared to 27.0% for the fourth quarter of 2023, a decrease of 1.7 percentage points. Detail of AFG’s property and casualty commissions and other underwriting expenses and underwriting expense ratios is shown below (dollars in millions):
Current wording
AFG’s property and casualty commissions and other underwriting expenses (“U/W Exp”) were $461 million in the fourth quarter of 2025 compared to $467 million for the fourth quarter of 2024, a decrease of $6 million (1%). AFG’s underwriting expense ratio, calculated as commissions and other underwriting expenses divided by net premiums earned, was 25.5% for the fourth quarter of 2025 compared to 25.3% for the fourth quarter of 2024, an increase of 0.2 percentage points. Detail of AFG’s property and casualty commissions and other underwriting expenses and underwriting expense ratios is shown below (dollars in millions):
Previous wording
Net investment income in AFG’s property and casualty insurance operations was $195 million in the fourth quarter of 2024 compared to $161 million in the fourth quarter of 2023, an increase of $34 million (21%). The average invested assets and overall yield earned on investments held by AFG’s property and casualty insurance operations are provided below (dollars in millions):
Current wording
Net investment income in AFG’s property and casualty insurance operations was $171 million in the fourth quarter of 2025 compared to $195 million in the fourth quarter of 2024, a decrease of $24 million (12%). The average invested assets and overall yield earned on investments held by AFG’s property and casualty insurance operations are provided below (dollars in millions):
Previous wording
The increase in the property and casualty insurance segment’s net investment income for the fourth quarter of 2024 compared to the fourth quarter of 2023 reflects the impact of higher balances of invested assets, higher returns on fixed maturity investments and higher returns on AFG’s alternative investment portfolio (partnerships and similar investments and AFG-managed CLOs). The property and casualty insurance segment’s overall yield on investments (net investment income as a percentage of average invested assets) was 4.96% for the fourth quarter of 2024 compared to 4.23% for the fourth quarter of 2023, an increase of 0.73 percentage points. The annualized return earned on alternative investments was 4.9% in the fourth quarter of 2024 compared to 0.8% in the comparable prior year period.
Current wording
The decrease in the property and casualty insurance segment’s net investment income for the fourth quarter of 2025 compared to the fourth quarter of 2024 reflects the impact of lower returns on AFG’s alternative investment portfolio (partnerships and similar investments and AFG-managed CLOs), partially offset by higher balances of invested assets and higher returns on fixed income investments. The property and casualty insurance segment’s overall yield on investments (net investment income as a percentage of average invested assets) was 4.14% for the fourth quarter of 2025 compared to 4.96% for the fourth quarter of 2024, a decrease of 0.82 percentage points. The annualized return earned on alternative investments was 0.9% in the fourth quarter of 2025 compared to 4.9% in the comparable prior year period.
Previous wording
Other income and expenses, net for AFG’s property and casualty insurance operations was a net expense of $19 million for the fourth quarter of 2024 compared to $15 million for the fourth quarter of 2023, an increase of $4 million (27%). The table below details the items included in other income and expenses, net for AFG’s property and casualty insurance operations (in millions):
Current wording
Other income and expenses, net for AFG’s property and casualty insurance operations was a net expense of $15 million for the fourth quarter of 2025 compared to $19 million for the fourth quarter of 2024, an improvement of $4 million (21%). The table below details the items included in other income and expenses, net for AFG’s property and casualty insurance operations (in millions):
Previous wording
AFG’s net pretax loss outside of its property and casualty insurance segment (excluding realized gains and losses) totaled $48 million in the fourth quarter of 2024 compared to $53 million in the fourth quarter of 2023, a decrease of $5 million (9%).
Current wording
AFG’s net pretax loss outside of its property and casualty insurance segment (excluding realized gains and losses) totaled $54 million in the fourth quarter of 2025 compared to $48 million in the fourth quarter of 2024, an increase of $6 million (13%).
Previous wording
AFG recorded net investment income on investments held outside of its property and casualty insurance segment of $7 million in both the fourth quarter of 2024 and the fourth quarter of 2023.
Current wording
AFG recorded net investment income on investments held outside of its property and casualty insurance segment of $7 million in both the fourth quarter of 2025 and 2024.
Previous wording
Summit, a workers’ compensation insurance subsidiary, collects fees from a small group of unaffiliated insurers for providing underwriting, policy administration and claims services. In addition, certain of AFG’s property and casualty insurance businesses collect fees from customers for ancillary services such as workplace safety programs and premium financing. In the fourth quarter of 2024, AFG collected $28 million in fees for these services compared to $23 million in the fourth quarter of 2023. Management views this fee income, net of the $15 million in the fourth quarter of 2024 and $14 million in the fourth quarter of 2023 in expenses incurred to generate such fees, as a reduction in the cost of underwriting its property and casualty insurance policies. In addition, AFG’s property and casualty insurance businesses earned $19 million in fees during the fourth quarter of 2023 as compensation for providing services related to the administration of crop insurance business generated by CRS for its former owner prior to AFG’s acquisition of CRS. The expenses related to providing such services are embedded in underwriting expenses. Consistent with internal management reporting, these fees and the related expenses are netted and recorded as a reduction of loss adjustment and other underwriting expenses in AFG’s segmented results.
Current wording
Summit, a workers’ compensation insurance subsidiary, collects fees from a small group of unaffiliated insurers for providing underwriting, policy administration and claims services. In addition, certain of AFG’s property and casualty insurance businesses collect fees from customers for ancillary services such as workplace safety programs and premium financing. In the fourth quarter of 2025, AFG collected $27 million in fees for these services compared to $28 million in the fourth quarter of 2024. Management views this fee income, net of the $22 million in the fourth quarter of 2025 and $15 million in the fourth quarter of 2024 in expenses incurred to generate such fees, as a reduction in the cost of underwriting its property and casualty insurance policies. The expenses related to providing such services are embedded in property and casualty underwriting expenses. Consistent with internal management reporting, these fees and the related expenses are netted and recorded as a reduction of commissions and other underwriting expenses in AFG’s segmented results.
Previous wording
Other income in the table above includes $4 million in both the fourth quarter of 2024 and the fourth quarter of 2023, 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 $2 million and $1 million in the fourth quarter of 2024 and the fourth quarter of 2023, respectively.
Current wording
Other income in the table above includes $3 million and $4 million in the fourth quarter of 2025 and the fourth quarter of 2024, respectively, 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 and $2 million in the fourth quarter of 2025 and the fourth quarter of 2024, respectively.
Previous wording
AFG’s holding companies and other operations outside of its property and casualty insurance segment recorded other expenses of $42 million in the fourth quarter of 2024 compared to $46 million in the fourth quarter of 2023, a decrease of $4 million (9%). This decrease is due primarily to lower aircraft related expenses in the fourth quarter of 2024 compared to the fourth quarter of 2023.
Current wording
AFG’s holding companies and other operations outside of its property and casualty insurance segment recorded other expenses of $42 million in both the fourth quarter of 2025 and 2024.
Previous wording
AFG’s holding companies and other operations outside of its property and casualty insurance segment recorded interest expense of $19 million in both the fourth quarter of 2024 and the fourth quarter of 2023.
Current wording
AFG’s holding companies and other operations outside of its property and casualty insurance segment recorded interest expense of $23 million in the fourth quarter of 2025 compared to $19 million in the fourth quarter of 2024, an increase of $4 million (21%) reflecting the issuance of $350 million principal amount of 5.00% Senior Notes in September 2025.
Previous wording
AFG’s realized gains (losses) on securities were net losses of $10 million in the fourth quarter of 2024 compared to net gains of $31 million in the fourth quarter of 2023, a change of $41 million (132%). Realized gains (losses) on securities consisted of the following (in millions):
Current wording
AFG’s realized gains (losses) on securities were net losses of $7 million in the fourth quarter of 2025 compared to $10 million in the fourth quarter of 2024, a decrease of $3 million (30%). Realized gains (losses) on securities consisted of the following (in millions):
Previous wording
The $3 million net realized gain from the change in the fair value of equity securities in the fourth quarter of 2024 includes gains of $4 million on investments in technology companies. The $33 million net realized gain from the change in the fair value of equity securities in the fourth quarter of 2023 includes gains of $15 million on investments in banks and financing companies, $6 million on investments in retail companies, $5 million on investments in healthcare companies and $5 million on investments in media companies.
Current wording
The $3 million net realized gain from the change in the fair value of equity securities in the fourth quarter of 2024 includes gains of $4 million on investments in technology companies.
Previous wording
AFG’s consolidated provision for income taxes was $65 million for the fourth quarter of 2024 compared to $72 million in the fourth quarter of 2023, a decrease of $7 million (10%). The following is a reconciliation of income taxes at the statutory rate to the provision for income taxes as shown in the segmented statement of earnings (dollars in millions):
Current wording
AFG’s consolidated provision for income taxes was $80 million for the fourth quarter of 2025 compared to $65 million in the fourth quarter of 2024, an increase of $15 million (23%). The following is a reconciliation of income taxes at the statutory rate to the provision for income taxes as shown in the segmented statement of earnings (dollars in millions):
Showing the first 40 of 97 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Net favorable reserve development of $96 million in 2024 reflects lower than anticipated losses in the crop business, lower than expected claim severity in the property and inland marine and aviation businesses and lower than anticipated claim frequency and severity in the ocean marine business.
Current report — wording carried from elsewhere
Specialty financial Net favorable reserve development of $43 million in 2025 reflects lower than anticipated claim frequency in the financial institutions business and lower than expected claim severity in the surety, fidelity and trade credit businesses.
Current report — wording carried from elsewhere
Catastrophe losses of $180 million in 2024 (before $2 million in net reinstatement premiums) resulted primarily from winter and convective storms in multiple regions of the United States in the first and second quarters, Hurricane Helene in the third quarter and Hurricane Milton in the fourth quarter.
Current report — wording carried from elsewhere
The higher amortization of intangibles in 2024 compared to 2023 reflects the acquisition of CRS in July 2023. The $9 million (22%) increase in interest expense on funds withheld in 2024 compared to 2023 reflects the impact of higher balances and higher interest rates paid on funds withheld.
Current report — wording carried from elsewhere
Excluding the non-core special A&E charges discussed below, AFG’s holding companies and other operations outside of its property and casualty insurance segment recorded other expenses of $161 million in both 2025 and 2024.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Property and transportation Gross written premiums decreased $38 million (6%) in the fourth quarter of 2024 compared to the fourth quarter of 2023. This decrease was due primarily to the impact of lower year-over-year commodity pricing on winter wheat premiums, coupled with elevated pricing competition and the non-renewal of certain under-performing accounts in the transportation businesses. Average renewal rates increased 7% for this group in the fourth quarter of 2024. Reinsurance premiums ceded as a percentage of gross written premiums were comparable in the fourth quarter of 2024 and the fourth quarter of 2023 reflecting higher cessions in the crop business offset by the impact of lower cessions in certain transportation businesses.
Previous report — wording carried elsewhere
Property and transportation Commissions and other underwriting expenses as a percentage of net earned premiums decreased 1.4 percentage points in the fourth quarter of 2024 compared to the fourth quarter of 2023. The decrease reflects the impact on the ratio of higher earned premiums, including in the crop business which has a lower commissions and other underwriting expense ratio than some of the other businesses in the Property and transportation sub-segment, and lower average commission rates in the transportation businesses due to a change in the mix of business.
Previous report — wording carried elsewhere
The $599 million (7%) increase in gross written premiums in 2023 compared to 2022 reflects growth in each of the Specialty property and casualty sub-segments as a result of a combination of new business opportunities, increased exposures and a good renewal rate environment. Overall average renewal rates increased approximately 5% in 2023. Excluding the workers’ compensation businesses, renewal pricing increased approximately 6%.
Previous report — wording carried elsewhere
Operations — Segmented Statement of Earnings.” Excluding amounts eliminated in consolidation, AFG recorded other income outside of its property and casualty insurance segment of $5 million in both 2024 and 2023 and $16 million in 2022. The decrease in 2024 and 2023 compared to 2022 is due primarily to income from the sale of real estate in 2022.