Property and Casualty Insurance Reserves Estimating the liability for unpaid losses and loss adjustment expenses (“LAE”) is inherently judgmental and is influenced by factors that are subject to significant variation. Determining the liability is a complex process incorporating input from many areas of the Company including actuarial, underwriting, pricing, claims and operations management.

The process used to determine the total reserve for liabilities involves estimating the ultimate incurred losses and LAE, adjusted for amounts already paid on the claims. The incurred but not reported (“IBNR”) reserve is derived by first estimating the ultimate unpaid reserve liability and subtracting case reserves for loss and LAE.

In determining management’s best estimate of the ultimate liability, management (with the assistance of Company actuaries) considers items such as the effect of inflation on medical, hospitalization, material, repair and replacement costs, the nature and maturity of lines of insurance, general economic trends and the legal environment. In addition, historical trends adjusted for changes in underwriting standards, policy provisions, product mix and other factors are analyzed using actuarial reserve development techniques. Weighing all of the factors, the management team determines a single or “point” estimate that it records as its best estimate of the ultimate liability. Ranges of loss reserves are not developed by Company actuaries. This reserve analysis and review is completed each quarter and for almost every business within AFG’s property and casualty insurance sub-segments.

Each quarterly review includes in-depth analysis of several hundred subdivisions of the business, employing multiple actuarial techniques. For each subdivision, actuaries use informed, professional judgment to adjust these techniques as necessary to respond to specific conditions in the data or within the business.

Each method has particular strengths and weaknesses and no single estimation method is most accurate in all situations. When applied to a particular group of claims, the relative strengths and weaknesses of each method can change over time based on the facts and circumstances. Ultimately, the estimation methods chosen are those which the actuary believes produce the most reliable indication for the particular liabilities under review.

The period of time from the event triggering a claim through the settlement of the liability is referred to as the “tail”. Generally, the same actuarial methods are considered for both short-tail and long-tail lines of business because most of them work properly for both. The methods are designed to incorporate the effects of the differing length of time to settle particular claims. For nearly all lines of business, the actuaries rely heavily on the Bornhuetter-Ferguson method for more recent accident periods. As accident years mature and the underlying claim data becomes more credible, more weight is given to the Case Incurred and Paid Development methods. This transition occurs relatively quickly for short-tailed lines, and over a number of years for long-tail lines. Liability claims for long-tail lines are more susceptible to litigation and can be significantly affected by changing contract interpretation and the legal environment. Therefore, the estimation of loss reserves for these classes is more complex and subject to a higher degree of variability.

The level of detail in which data is analyzed varies among the different lines of business. Data is generally analyzed by major product or by coverage within product, using countrywide data; however, in some situations, data may be reviewed by state or region. Appropriate segmentation of the data is determined based on data credibility, homogeneity of development patterns, mix of business, and other actuarial considerations.

Within each business, results of individual methods are reviewed, supplementary statistical information is analyzed, and data from underwriting, operating and claim management are considered in deriving management’s best estimate of the ultimate liability. This estimate may be the result of one method, a weighted average of several methods, or a judgmental selection as the management team determines is appropriate.

The liability for losses and LAE for a very limited number of claims with long-term scheduled payments under certain workers’ compensation policies has been discounted at 4.5% at December 31, 2023 and 3.5% at December 31, 2022, which represents an approximation of long-term investment yields. Because of the limited amount of claims involved, the net impact of discounting did not materially impact AFG’s total liability for unpaid losses and loss adjustment expenses (net reductions from discounting of $9 million at both December 31, 2023 and 2022, respectively).


	2023		2022		2021
Balance at beginning of period	$	11,974	$	11,074	$	10,392
Less reinsurance recoverables, net of allowance	3,767		3,419		3,117
Net liability at beginning of period	8,207		7,655		7,275
Provision for losses and LAE occurring in the current year	4,256		3,914		3,436


Net decrease in the provision for claims of prior years	(223)		(285)		(279)
Total losses and LAE incurred	4,033		3,629		3,157
Payments for losses and LAE of:
Current year	(1,261)		(1,212)		(1,024)
Prior years	(2,181)		(1,870)		(1,753)
Total payments	(3,442)		(3,082)		(2,777)
Foreign currency translation and other	1		5		—
Net liability at end of period	8,799		8,207		7,655
Add back reinsurance recoverables, net of allowance	4,288		3,767		3,419
Gross unpaid losses and LAE included in the balance sheet	$	13,087	$	11,974	$	11,074

The net decrease in the provision for claims of prior years in 2023 reflects (i) lower than anticipated losses in the crop business, lower than expected claim frequency and severity across the transportation businesses and lower than anticipated claim frequency in the property and inland marine and ocean marine businesses and in the Singapore operations (within the Property and transportation sub-segment), (ii) lower than anticipated claim severity in the workers’ compensation businesses, lower than expected claim frequency in the executive liability and environmental businesses and favorable reserve development related to COVID-19 losses across several businesses (within the Specialty casualty sub-segment) and (iii) lower than anticipated claim frequency in the trade credit, financial institutions and surety businesses and lower than expected claim frequency and severity in the fidelity business (within the Specialty financial sub-segment). This favorable development was partially offset by higher than anticipated claim severity in the public sector business and higher than expected claim frequency and severity in the excess liability and general liability businesses (within the Specialty casualty sub-segment).

The net decrease in the provision for claims of prior years in 2022 reflects (i) 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 (within the Property and transportation sub-segment), (ii) 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 (within the Specialty casualty sub-segment) and (iii) lower than anticipated claim frequency in the surety, trade credit and financial institutions businesses (within the Specialty financial sub-segment). This favorable development was partially offset by (i) higher than anticipated claim severity in the general liability, umbrella and excess liability, and certain targeted markets businesses (within the Specialty casualty sub-segment) and (ii) net adverse development associated with AFG’s internal reinsurance program, primarily related to social inflation exposed business assumed from the Specialty casualty sub-segment (within Other specialty).

The net decrease in the provision for claims of prior years in 2021 reflects (i) lower than anticipated claim frequency and severity in the transportation businesses, lower than expected losses in the crop business, lower than expected claim severity in the ocean marine business and lower than expected claim frequency in the aviation business (within the Property and transportation sub-segment), (ii) lower than anticipated claim severity in the workers’ compensation businesses (within the Specialty casualty sub-segment) and (iii) lower than anticipated claim frequency in the surety and trade credit businesses and lower than expected claim frequency and severity in the financial institutions business (within the Specialty financial sub-segment). This favorable development was partially offset by (i) higher than anticipated claim

severity in the general liability and targeted markets businesses (within the Specialty casualty sub-segment) and (ii) net adverse development associated with AFG’s internal reinsurance program, primarily related to social inflation exposed business assumed from the Specialty casualty sub-segment (within Other specialty).


	2023
Unpaid losses and allocated LAE, net of reinsurance:
Specialty
Property and transportation	$	1,636
Specialty casualty	4,984
Specialty financial	328
Other specialty	580
Total Specialty (excluding foreign reserves)	7,528

Other reserves
Foreign operations	396
A&E reserves	370
Unallocated LAE	448
Other	57
Total other reserves	1,271
Total reserves, net of reinsurance	8,799

Add back reinsurance recoverables, net of allowance	4,288
Gross unpaid losses and LAE included in the balance sheet	$	13,087

The following claims development tables and associated disclosures related to short-duration insurance contracts are prepared by sub-segment within the property and casualty insurance business for the most recent 10 accident years. AFG determines its claim counts at the claimant or policy feature level depending on the particular facts and circumstances of the underlying claim. While the methodology is generally consistent within each sub-segment, there are minor differences


Property and transportation
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2023
	For the Years Ended (2014–2022 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	844	$	828	$	817	$	820	$	815	$	808	$	804	$	802	$	800	$	800	$	5	133,284
2015			818		784		779		777		777		772		768		769		769		4		135,083
2016					746		716		714		706		694		688		689		689		8		121,400
2017							889		847		843		823		816		820		820		11		140,998
2018									932		902		886		876		882		876		15		130,721
2019											1,111		1,058		1,051		1,055		1,057		26		154,248
2020													1,043		974		957		949		39		122,112
2021															1,119		1,023		1,022		69		123,416
2022																	1,393		1,316		157		136,540
2023																			1,472		432		127,664
																	Total		$	9,770


	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2014–2022 is Supplementary Information and Unaudited)
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		% (a)
2014	$	329	$	632	$	693	$	744	$	770	$	783	$	789	$	791	$	792	$	793	99.1	%
2015			359		582		667		707		736		744		750		755		761		99.0	%
2016					294		521		577		618		640		656		665		672		97.5	%
2017							379		640		696		735		755		783		794		96.8	%
2018									396		676		738		781		824		838		95.7	%
2019											527		823		904		959		998		94.4	%
2020													461		726		804		857		90.3	%
2021															449		767		867		84.8	%
2022																	587		1,018		77.4	%
2023																			562		38.2	%
																	Total		$	8,160
							Unpaid losses and LAE — years 2014 through 2023												1,610
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																26
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	1,636


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	44.7	%	31.5	%	8.3	%	5.4	%	3.5	%	2.0	%	1.0	%	0.6	%	0.5	%	0.1	%
Cumulative	44.7	%	76.2	%	84.5	%	89.9	%	93.4	%	95.4	%	96.4	%	97.0	%	97.5	%	97.6	%


Specialty casualty
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2023
	For the Years Ended (2014–2022 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	1,035	$	1,008	$	1,008	$	1,006	$	982	$	967	$	952	$	950	$	955	$	951	$	28	57,373
2015			1,081		1,043		1,041		1,042		1,024		1,021		1,015		1,007		1,002		36		58,456
2016					1,131		1,122		1,116		1,101		1,090		1,069		1,046		1,036		63		56,695
2017							1,211		1,221		1,204		1,189		1,162		1,139		1,139		110		57,386
2018									1,277		1,307		1,302		1,262		1,269		1,264		169		59,456
2019											1,308		1,311		1,322		1,280		1,284		230		59,684
2020													1,352		1,329		1,258		1,232		313		54,129
2021															1,384		1,389		1,342		497		55,962
2022																	1,475		1,503		697		56,742
2023																			1,648		1,035		53,352
																	Total		$	12,401


	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2014–2022 is Supplementary Information and Unaudited)
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		% (a)
2014	$	190	$	412	$	574	$	680	$	755	$	801	$	829	$	862	$	881	$	899	94.5	%
2015			178		411		577		702		792		844		888		913		934		93.2	%
2016					186		418		584		713		806		870		906		938		90.5	%
2017							200		422		612		755		833		902		959		84.2	%
2018									210		475		649		794		901		991		78.4	%
2019											212		455		651		795		913		71.1	%
2020													188		446		613		757		61.4	%
2021															191		438		625		46.6	%
2022																	198		507		33.7	%
2023																			248		15.0	%
																	Total		$	7,771
							Unpaid losses and LAE — years 2014 through 2023												4,630
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																354
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	4,984


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	16.4	%	20.9	%	15.4	%	11.9	%	8.4	%	5.9	%	4.0	%	3.0	%	2.0	%	1.9	%
Cumulative	16.4	%	37.3	%	52.7	%	64.6	%	73.0	%	78.9	%	82.9	%	85.9	%	87.9	%	89.8	%


Specialty financial
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2023
	For the Years Ended (2014–2022 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	146	$	157	$	156	$	153	$	147	$	142	$	137	$	136	$	135	$	134	$	—	29,471
2015			156		160		158		153		145		138		136		135		133		—		37,629
2016					179		184		187		182		174		170		173		172		1		45,185
2017							212		215		212		208		203		202		210		5		48,840
2018									212		217		219		207		201		198		6		46,805
2019											194		198		191		186		182		9		41,939
2020													231		215		202		193		15		29,732
2021															223		201		187		25		27,355
2022																	243		234		54		23,638
2023																			310		127		20,542
																	Total		$	1,953


	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2014–2022 is Supplementary Information and Unaudited)
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		% (a)
2014	$	62	$	109	$	125	$	128	$	137	$	139	$	141	$	140	$	141	$	141	105.2	%
2015			72		110		129		133		132		134		134		134		133		100.0	%
2016					88		141		158		161		163		164		171		172		100.0	%
2017							120		169		186		194		193		192		194		92.4	%
2018									112		163		187		188		192		193		97.5	%
2019											99		146		164		168		170		93.4	%
2020													100		144		159		162		83.9	%
2021															98		136		146		78.1	%
2022																	108		164		70.1	%
2023																			150		48.4	%
																	Total		$	1,625
							Unpaid losses and LAE — years 2014 through 2023												328
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																—
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	328


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	51.8	%	26.3	%	9.9	%	2.2	%	1.6	%	0.7	%	1.6	%	(0.1	%)	—	%	—	%
Cumulative	51.8	%	78.1	%	88.0	%	90.2	%	91.8	%	92.5	%	94.1	%	94.0	%	94.0	%	94.0	%


Other specialty
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2023
	For the Years Ended (2014–2022 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims (a)
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	58	$	57	$	59	$	59	$	60	$	61	$	64	$	66	$	68	$	72	$	3	—
2015			59		60		63		66		76		82		84		87		87		5		—
2016					61		61		65		71		76		77		78		77		8		—
2017							63		65		70		81		88		95		97		8		—
2018									86		90		92		94		100		111		21		—
2019											108		107		108		111		119		21		—
2020													122		117		129		126		39		—
2021															135		141		138		69		—
2022																	159		152		92		—
2023																			201		137		—
																	Total		$	1,180


	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2014–2022 is Supplementary Information and Unaudited)
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		% (b)
2014	$	13	$	21	$	30	$	36	$	43	$	50	$	53	$	54	$	56	$	60	83.3	%
2015			10		26		31		50		62		69		75		76		81		93.1	%
2016					9		19		31		47		53		60		64		66		85.7	%
2017							10		19		30		52		63		76		83		85.6	%
2018									12		23		32		44		60		77		69.4	%
2019											9		24		49		61		79		66.4	%
2020													9		21		44		66		52.4	%
2021															8		27		49		35.5	%
2022																	11		35		23.0	%
2023																			29		14.4	%
																	Total		$	625
							Unpaid losses and LAE — years 2014 through 2023												555
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																25
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	580


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	10.5	%	12.6	%	13.6	%	16.0	%	12.0	%	11.1	%	5.9	%	1.7	%	4.3	%	5.6	%
Cumulative	10.5	%	23.1	%	36.7	%	52.7	%	64.7	%	75.8	%	81.7	%	83.4	%	87.7	%	93.3	%

(a)The amounts shown in Other specialty 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. Accordingly, the liability for incurred claims and allocated LAE represents additional reserves held on claims counted in the tables provided for the other sub-segments (above).


Total Specialty Group
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2023
	For the Years Ended (2014–2022 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	2,083	$	2,050	$	2,040	$	2,038	$	2,004	$	1,978	$	1,957	$	1,954	$	1,958	$	1,957	$	36	220,128
2015			2,114		2,047		2,041		2,038		2,022		2,013		2,003		1,998		1,991		45		231,168
2016					2,117		2,083		2,082		2,060		2,034		2,004		1,986		1,974		80		223,280
2017							2,375		2,348		2,329		2,301		2,269		2,256		2,266		134		247,224
2018									2,507		2,516		2,499		2,439		2,452		2,449		211		236,982
2019											2,721		2,674		2,672		2,632		2,642		286		255,871
2020													2,748		2,635		2,546		2,500		406		205,973
2021															2,861		2,754		2,689		660		206,733
2022																	3,270		3,205		1,000		216,920
2023																			3,631		1,731		201,558
																	Total		$	25,304


	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2014–2022 is Supplementary Information and Unaudited)
	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		% (a)
2014	$	594	$	1,174	$	1,422	$	1,588	$	1,705	$	1,773	$	1,812	$	1,847	$	1,870	$	1,893	96.7	%
2015			619		1,129		1,404		1,592		1,722		1,791		1,847		1,878		1,909		95.9	%
2016					577		1,099		1,350		1,539		1,662		1,750		1,806		1,848		93.6	%
2017							709		1,250		1,524		1,736		1,844		1,953		2,030		89.6	%
2018									730		1,337		1,606		1,807		1,977		2,099		85.7	%
2019											847		1,448		1,768		1,983		2,160		81.8	%
2020													758		1,337		1,620		1,842		73.7	%
2021															746		1,368		1,687		62.7	%
2022																	904		1,724		53.8	%
2023																			989		27.2	%
																	Total		$	18,181
							Unpaid losses and LAE — years 2014 through 2023												7,123
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																405
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	7,528


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	29.7	%	25.0	%	12.2	%	8.9	%	6.2	%	4.2	%	2.8	%	1.8	%	1.4	%	1.2	%
Cumulative	29.7	%	54.7	%	66.9	%	75.8	%	82.0	%	86.2	%	89.0	%	90.8	%	92.2	%	93.4	%

Deferred Policy Acquisition Costs Included in property and casualty insurance commissions and other underwriting expenses in AFG’s Statement of Earnings is amortization of deferred policy acquisition costs of $720 million, $641 million, and $580 million in 2023, 2022 and 2021, respectively.

Statutory Information AFG’s U.S.-based insurance subsidiaries are required to file financial statements with state insurance regulatory authorities prepared on an accounting basis prescribed or permitted by such authorities (statutory basis). Net earnings and capital and surplus on a statutory basis for the insurance subsidiaries were as follows (in millions):

The National Association of Insurance Commissioners’ (“NAIC”) model law for risk-based capital (“RBC”) applies to property and casualty insurance companies. RBC formulas determine the amount of capital that an insurance company needs so that it has an acceptable expectation of not becoming financially impaired. Companies below specific trigger points or ratios are subject to regulatory action. At December 31, 2023 and 2022, the capital ratios of all AFG insurance companies substantially exceeded the RBC requirements. AFG’s insurance companies did not use any prescribed or permitted statutory accounting practices that differed from the NAIC statutory accounting practices at December 31, 2023 or 2022.

Payments of dividends by AFG’s insurance companies are subject to various state laws that limit the amount of dividends that can be paid. Under applicable restrictions, the maximum amount of dividends available to AFG in 2024 from its insurance subsidiaries without seeking regulatory approval is $944 million. Additional amounts of dividends require regulatory approval.

Holding Company Dividends AFG declared and paid common stock dividends to shareholders totaling $687 million, $1.22 billion and $2.38 billion in 2023, 2022 and 2021, respectively. Currently, there are no regulatory restrictions on AFG’s retained earnings or net earnings that materially impact its ability to pay dividends. Based on shareholders’ equity at December 31, 2023, AFG could pay dividends of approximately $1.5 billion without violating its most restrictive debt covenant. However, the payment of future dividends will be at the discretion of AFG’s Board of Directors and will be dependent on many factors including AFG’s financial condition and results of operations, the capital requirements of its insurance subsidiaries, and rating agency commitments.

Reinsurance In the normal course of business, AFG cedes reinsurance to other companies to diversify risk and limit maximum loss arising from large claims. However, AFG remains liable to its insureds regardless of whether a reinsurer is able to meet its obligations. The following table shows (in millions) (i) amounts deducted from property and casualty written and earned premiums in connection with reinsurance ceded, (ii) written and earned premiums included in income for reinsurance assumed and (iii) reinsurance recoveries, which represent ceded losses and loss adjustment expenses.


	2023		2022		2021
Direct premiums written	$	9,309	$	8,774	$	7,700
Reinsurance assumed	347		283		246
Reinsurance ceded	(2,964)		(2,851)		(2,373)
Net written premiums	$	6,692	$	6,206	$	5,573

Direct premiums earned	$	9,133	$	8,582	$	7,462
Reinsurance assumed	321		274		249
Reinsurance ceded	(2,923)		(2,771)		(2,307)
Net earned premiums	$	6,531	$	6,085	$	5,404

Reinsurance recoveries	$	2,336	$	2,065	$	1,478

AFG maintains supplemental fully collateralized reinsurance coverage up to 94% of $323 million for catastrophe losses in excess of $127 million of traditional catastrophe reinsurance through a catastrophe bond. AFG’s cost for this coverage is approximately $16 million per year. Recoveries from the catastrophe bond apply before calculating losses recoverable from this catastrophe excess of loss reinsurance.


	Recoverables from Reinsurers						Premiums Receivable
	2023		2022		2021		2023		2022		2021
Balance at January 1	$	8	$	8	$	6	$	8	$	8	$	10
Increase in allowance from acquisition of CRS	—		—		—		4		—		—
Provision for expected credit losses	2		—		2		3		—		(2)
Write-offs charged against the allowance	—		—		—		—		—		—
Balance at December 31	$	10	$	8	$	8	$	15	$	8	$	8