AMERICAN FINANCIAL GROUP INC

For the period ended Dec 31, 2025. Filed Feb 25, 2026.

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FY2025 · Filed Feb 25, 2026

AFG$160.84+1.9%Stored close · as of Nov 10, 2026

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Contents

Managed Investment Entities

Accounting standards require AFG to consolidate its investments in collateralized loan obligation (“CLO”) entities that it manages and owns an interest in (in the form of debt). See Note A — “Accounting Policies — Managed Investment Entities” and Note G — “Managed Investment Entities” to the financial statements. The effect of consolidating these entities is shown in the tables below (in millions). The “Before CLO Consolidation” columns include AFG’s investment and earnings in the CLOs on an unconsolidated basis.

CONDENSED CONSOLIDATING BALANCE SHEET

Before CLOConsolidation · ManagedInvestmentEntities · Consol.Entries · ConsolidatedAs Reported
Assets:
Cash and investments	$17,325	$—	$(143)	(*)	$17,182
Assets of managed investment entities	—	4,050	—		4,050
Other assets	11,410	—	—	(*)	11,410
Total assets	$28,735	$4,050	$(143)		$32,642
Liabilities:
Unpaid losses and loss adjustment expenses and unearned premiums	$18,830	$—	$—		$18,830
Liabilities of managed investment entities	—	4,050	(143)	(*)	3,907
Long-term debt and other liabilities	5,085	—	—		5,085
Total liabilities	23,915	4,050	(143)		27,822
Shareholders’ equity:
Common Stock and Capital surplus	1,513	—	—		1,513
Retained earnings	3,357	—	—		3,357
Accumulated other comprehensive income (loss), net of tax	(50)	—	—		(50)
Total shareholders’ equity	4,820	—	—		4,820
Total liabilities and shareholders’ equity	$28,735	$4,050	$(143)		$32,642
Assets:
Cash and investments	$16,026	$—	$(174)	(*)	$15,852
Assets of managed investment entities	—	4,140	—		4,140
Other assets	10,845	—	(1)	(*)	10,844
Total assets	$26,871	$4,140	$(175)		$30,836
Liabilities:
Unpaid losses and loss adjustment expenses and unearned premiums	$17,763	$—	$—		$17,763
Liabilities of managed investment entities	—	4,091	(126)	(*)	3,965
Long-term debt and other liabilities	4,642	—	—		4,642
Total liabilities	22,405	4,091	(126)		26,370
Shareholders’ equity:
Common Stock and Capital surplus	1,495	49	(49)		1,495
Retained earnings	3,211	—	—		3,211
Accumulated other comprehensive income (loss), net of tax	(240)	—	—		(240)
Total shareholders’ equity	4,466	49	(49)		4,466
Total liabilities and shareholders’ equity	$26,871	$4,140	$(175)		$30,836

(*)Elimination of the fair value of AFG’s investment in CLOs and related accrued interest.

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS

Before CLOConsolidation (a) · ManagedInvestmentEntities · Consol.Entries · ConsolidatedAs Reported
Revenues:
Net earned premiums	$1,806	$—	$—		$1,806
Net investment income	178	—	5	(b)	183
Realized gains (losses) on securities	(7)	—	—		(7)
Income of managed investment entities:
Investment income	—	69	—		69
Gain (loss) on change in fair value of assets/liabilities	—	1	(20)	(b)	(19)
Other income	34	—	(3)	(c)	31
Total revenues	2,011	70	(18)		2,063
Costs and Expenses:
Insurance benefits and expenses	1,527	—	—		1,527
Expenses of managed investment entities	—	69	(17)	(b)(c)	52
Interest charges on borrowed money and other expenses	105	—	—		105
Total costs and expenses	1,632	69	(17)		1,684
Earnings before income taxes	379	1	(1)		379
Provision for income taxes	80	—	—		80
Net earnings	$299	$1	$(1)		$299
Revenues:
Net earned premiums	$1,850	$—	$—		$1,850
Net investment income	202	—	(8)	(b)	194
Realized gains (losses) on securities	(10)	—	—		(10)
Income of managed investment entities:
Investment income	—	84	—		84
Gain (loss) on change in fair value of assets/liabilities	—	3	(4)	(b)	(1)
Other income	36	—	(4)	(c)	32
Total revenues	2,078	87	(16)		2,149
Costs and Expenses:
Insurance benefits and expenses	1,661	—	—		1,661
Expenses of managed investment entities	—	87	(16)	(b)(c)	71
Interest charges on borrowed money and other expenses	97	—	—		97
Total costs and expenses	1,758	87	(16)		1,829
Earnings before income taxes	320	—	—		320
Provision for income taxes	65	—	—		65
Net earnings	$255	$—	$—		$255

(a)Includes a loss of $5 million in the fourth quarter of 2025 and income of $8 million in the fourth quarter of 2024, representing the change in fair value of AFG’s CLO investments and $3 million and $4 million of income in the fourth quarter of 2025 and 2024, respectively, in CLO management fees earned.

(b)Elimination of the change in fair value of AFG’s investments in the CLOs, including $14 million and $12 million in the fourth quarter of 2025 and 2024, respectively, in distributions recorded as interest expense by the CLOs.

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS - CONTINUED

Before CLOConsol. (a) · ManagedInvestmentEntities · Consol.Entries · ConsolidatedAs Reported
Revenues:
Net earned premiums	$7,046	$—	$—		$7,046
Net investment income	750	—	(5)	(b)	745
Realized gains (losses) on:
Securities	10	—	—		10
Subsidiaries	1	—	—		1
Income of managed investment entities:
Investment income	—	283	—		283
Gain (loss) on change in fair value of assets/liabilities	—	9	(35)	(b)	(26)
Other income	126	—	(11)	(c)	115
Total revenues	7,933	292	(51)		8,174
Costs and Expenses:
Insurance benefits and expenses	6,447	—	—		6,447
Expenses of managed investment entities	—	288	(47)	(b)(c)	241
Interest charges on borrowed money and other expenses	413	—	—		413
Total costs and expenses	6,860	288	(47)		7,101
Earnings before income taxes	1,073	4	(4)		1,073
Provision for income taxes	231	—	—		231
Net earnings	$842	$4	$(4)		$842
Revenues:
Net earned premiums	$7,036	$—	$—		$7,036
Net investment income	813	—	(33)	(b)	780
Realized gains (losses) on securities	—	—	—		—
Income of managed investment entities:
Investment income	—	380	—		380
Gain (loss) on change in fair value of assets/liabilities	—	12	(8)	(b)	4
Other income	137	—	(13)	(c)	124
Total revenues	7,986	392	(54)		8,324
Costs and Expenses:
Insurance benefits and expenses	6,467	—	—		6,467
Expenses of managed investment entities	—	388	(50)	(b)(c)	338
Interest charges on borrowed money and other expenses	395	—	—		395
Total costs and expenses	6,862	388	(50)		7,200
Earnings before income taxes	1,124	4	(4)		1,124
Provision for income taxes	237	—	—		237
Net earnings	$887	$4	$(4)		$887

(a)Includes income of $5 million in 2025 and $33 million in 2024, representing the change in fair value of AFG’s CLO investments and $11 million and $13 million of income in 2025 and 2024, respectively, in CLO management fees earned.

(b)Elimination of the change in fair value of AFG’s investments in the CLOs, including $36 million and $37 million in 2025 and 2024, respectively, in distributions recorded as interest expense by the CLOs.

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS - CONTINUED

Before CLOConsol. (a) · ManagedInvestmentEntities · Consol.Entries · ConsolidatedAs Reported
Revenues:
Net earned premiums	$6,531	$—	$—		$6,531
Net investment income	769	—	(27)	(b)	742
Realized gains (losses) on:
Securities	(36)	—	—		(36)
Subsidiaries	(4)	—	—		(4)
Income of managed investment entities:
Investment income	—	421	—		421
Gain (loss) on change in fair value of assets/liabilities	—	29	(2)	(b)	27
Other income	162	—	(16)	(c)	146
Total revenues	7,422	450	(45)		7,827
Costs and Expenses:
Insurance benefits and expenses	5,968	—	—		5,968
Expenses of managed investment entities	—	450	(45)	(b)(c)	405
Interest charges on borrowed money and other expenses	381	—	—		381
Total costs and expenses	6,349	450	(45)		6,754
Earnings before income taxes	1,073	—	—		1,073
Provision for income taxes	221	—	—		221
Net earnings	$852	$—	$—		$852

(a)Includes income of $27 million representing the change in fair value of AFG’s CLO investments and $16 million in CLO management fees earned.

(b)Elimination of the change in fair value of AFG’s investments in the CLOs, including $29 million in distributions recorded as interest expense by the CLOs.

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