AMERICAN FINANCIAL GROUP INC

Holding Company, Other and Unallocated — Results of Operations

AFG’s net GAAP pretax loss outside of its property and casualty insurance segment (excluding realized gains and losses) totaled $225 million in 2025 compared to $204 million in 2024, an increase of $21 million (10%). AFG’s net core pretax loss outside of its property and casualty insurance segment (excluding realized gains and losses) totaled $200 million in 2025 compared to $190 million in 2024, an increase of $10 million (5%).

AFG’s net GAAP pretax loss outside of its property and casualty insurance segment (excluding realized gains and losses) totaled $204 million in 2024 compared to $191 million in 2023, an increase of $13 million (7%). AFG’s net core pretax loss outside of its property and casualty insurance segment (excluding realized gains and losses) totaled $190 million in 2024 compared to $177 million in 2023, an increase of $13 million (7%).

The following table details AFG’s GAAP and core loss before income taxes from operations outside of its property and casualty insurance segment in 2025, 2024 and 2023 (dollars in millions):

(*)Excludes pretax non-core special A&E charges of $25 million, $14 million and $15 million in 2025, 2024 and 2023, respectively, and a pretax non-core gain on retirement of debt of $1 million in 2023.

Holding Company and Other — Net Investment Income

AFG recorded net investment income on investments held outside of its property and casualty insurance segment of $25 million, $29 million and $40 million in 2025, 2024 and 2023, respectively. The $4 million (14%) decrease in 2025 compared to 2024 reflects lower income on fixed maturity investments. The $11 million (28%) decrease in 2024 compared to 2023 reflects the impact of lower average investment balances.

Holding Company and Other — P&C Fees and Related Expenses

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 2025, AFG collected $98 million in fees for these services compared to $100 million in 2024 and $91 million in 2023. Management views this fee income, net of the $68 million in 2025, $60 million in 2024 and $57 million in 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 $11 million in 2024 and $34 million in 2023 in fees as compensation for providing services related to the administration of crop insurance business generated by CRS for its former owner prior to the acquisition date. 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.

Holding Company and Other — Other Income

Other income in the table above includes $11 million in 2025, $13 million in 2024 and $16 million in 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 $5 million in 2025, 2024 and 2023.

Holding Company and Other — Other Expenses

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.

Excluding the non-core special A&E charges and the non-core gain 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 $161 million in 2024 compared to $162 million in 2023, a decrease of $1 million (1%).

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 $80 million in 2025 and $76 million in both 2024 and 2023. The $4 million (5%) increase in interest expense in 2025 compared to 2024 and 2023 reflects the issuance of $350 million principal amount of 5.00% Senior Notes in September 2025.

Holding Company and Other — Special A&E Charges

As a result of the in-depth internal reviews of A&E exposures discussed under“Uncertainties — Asbestos and Environmental-related (“A&E”) Insurance Reserves,”AFG’s holding companies and other operations outside of its property and casualty insurance segment recorded pretax non-core special charges of $25 million in 2025, $14 million in 2024 and $15 million in 2023 to increase liabilities related to the A&E exposures of AFG’s former railroad and manufacturing operations. The charges in all periods reflect changes in the scope and costs of investigation and an increase in estimated remediation costs at a limited number of sites. AFG has also increased its reserve for asbestos and toxic substance exposures arising out of these operations. Total charges recorded to increase liabilities for A&E exposures of AFG’s former railroad and manufacturing operations (included in other expenses) were $35 million in 2025, $24 million in 2024, and $22 million in 2023.

Holding Company and Other — Gain on Retirement of Debt

During 2023, AFG repurchased $23 million principal amount of its senior notes, which resulted in a $2 million pretax non-core gain and recorded a $1 million pretax non-core loss related to the write-off of debt issue costs associated with its previous revolving credit facility, which was replaced in June 2023.

Realized Gains (Losses) on Securities

AFG’s realized gains (losses) on securities were net gains of $10 million in 2025 compared to less than $1 million in 2024, an increase of $10 million. AFG’s consolidated realized gains (losses) on securities were net gains of less than $1 million in 2024 compared to net losses of $36 million in 2023, a change of $36 million. Realized gains (losses) on securities consisted of the following (in millions):

The $33 million net realized loss from disposals in 2023 includes losses of $15 million from the sale of investments in banks and $5 million from the sale of municipal bonds.

The $31 million net realized gain from the change in the fair value of equity securities in 2025 includes gains of $16 million on investments in banks and financing companies and $14 million on investments in media companies, partially offset by losses of $7 million on investments in healthcare companies.

The $32 million net realized gain from the change in the fair value of equity securities in 2024 includes gains of $21 million on investments in banks and financing companies, $8 million on investments in natural gas companies and $5 million on investments in technology companies, partially offset by losses of $6 million on investments in energy companies.

The $10 million net realized gain from the change in the fair value of equity securities in 2023 includes gains of $8 million on investments in retail companies, $7 million on investments in banks and financing companies, $5 million on investments in capital goods companies and $4 million on investments in natural gas companies, partially offset by losses of $8 million on investments in media companies and $6 million on investments in energy companies.

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.

The $27 million change in allowance for impairments on securities in 2024 relates primarily to allowances taken on corporate bonds from a single issuer in the financial sector and fixed maturities from a single issuer in the retail sector.

Realized Gain (Loss) on Subsidiaries

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).

In the second quarter of 2024, AFG recorded $4 million in net tax expense related to a pending IRS settlement regarding the sale of a subsidiary in a prior year.

In the third quarter of 2023, AFG recorded a realized loss on subsidiary of $4 million, consisting of a $26 million goodwill impairment charge, partially offset by a $22 million reduction in the fair value of a contingent consideration liability, both related to AFG’s investment in Verikai. See Note D — “Fair Value Measurements” and Note H — “Goodwill and Other Intangibles”to the financial statements.

Consolidated Income Taxes

AFG’s consolidated provision for income taxes was $231 million in 2025 compared to $237 million in 2024, a decrease of $6 million (3%). AFG’s consolidated provision for income taxes was $237 million in 2024 compared to $221 million in 2023, an increase of $16 million (7%). See Note L — “Income Taxes”to the financial statements for an analysis of items affecting AFG’s effective tax rate.