Insurance

12 Months Ended

Dec. 31, 2024

Insurance [Abstract]

Insurance

Insurance

Cash and securities owned by U.S.-based insurance subsidiaries, having a carrying value of approximately $1.15 billion at December 31, 2024, were on deposit as required by regulatory authorities.

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.

Some of the standard actuarial methods employed for the quarterly reserve analysis may include (but may not be limited to):

•Case Incurred Development Method

•Paid Development Method

•Bornhuetter-Ferguson Method

•Incremental Paid LAE to Paid Loss Methods

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.

Supplementary statistical information is also reviewed to determine which methods are most appropriate to use or if adjustments are needed to particular methods. Such information includes:

•Open and closed claim counts

•Average case reserves and average incurred on open claims

•Closure rates and statistics related to closed and open claim percentages

•Average closed claim severity

•Ultimate claim severity

•Reported loss ratios

•Projected ultimate loss ratios

•Loss payment patterns

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 both December 31, 2024 and December 31, 2023, 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 $8 million at December 31, 2024 and $9 million at December 31, 2023).

The following table provides an analysis of changes in the liability for losses and loss adjustment expenses over the past three years (in millions):

	2024		2023		2022
Balance at beginning of period	$	13,087	$	11,974	$	11,074
Less reinsurance recoverables, net of allowance	4,288		3,767		3,419
Net liability at beginning of period	8,799		8,207		7,655
Provision for losses and LAE occurring in the current year	4,524		4,256		3,914
Net decrease in the provision for claims of prior years	(64)		(223)		(285)
Total losses and LAE incurred	4,460		4,033		3,629
Payments for losses and LAE of:
Current year	(1,497)		(1,261)		(1,212)
Prior years	(2,537)		(2,181)		(1,870)
Total payments	(4,034)		(3,442)		(3,082)
Foreign currency translation and other	(3)		1		5
Net liability at end of period	9,222		8,799		8,207
Add back reinsurance recoverables, net of allowance	4,957		4,288		3,767
Gross unpaid losses and LAE included in the balance sheet	$	14,179	$	13,087	$	11,974

The net decrease in the provision for claims of prior years in 2024 reflects (i) 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 (within the Property and transportation sub-segment), (ii) lower than anticipated claim severity in the workers’ compensation businesses and lower than expected claim frequency and severity in the executive liability business (within the Specialty casualty sub-segment) and (iii) lower than anticipated claim frequency and severity in the financial institutions and fidelity businesses and lower than expected claim frequency in the trade credit business (within the Specialty financial sub-segment). This favorable development was partially offset by (i) higher than anticipated claim frequency and severity in the umbrella and excess liability and social services businesses and higher than expected claim severity in the public sector and general liability businesses (within the Specialty casualty sub-segment), (ii) higher than anticipated claim severity in the innovative markets and surety businesses (within the Specialty financial sub-segment) and (iii) net adverse development associated with AFG’s internal reinsurance program (within Other specialty).

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).

A reconciliation of incurred and paid claims development information to the aggregate carrying amount of the liability for unpaid losses and LAE, with separate disclosure of reinsurance recoverables on unpaid claims is shown below (in millions):

	2024
Unpaid losses and allocated LAE, net of reinsurance:
Specialty
Property and transportation	$	1,696
Specialty casualty	5,266
Specialty financial	405
Other specialty	597
Total Specialty (excluding foreign reserves)	7,964
Other reserves
Foreign operations	406
A&E reserves	359
Unallocated LAE	435
Other	58
Total other reserves	1,258
Total reserves, net of reinsurance	9,222
Add back reinsurance recoverables, net of allowance	4,957
Gross unpaid losses and LAE included in the balance sheet	$	14,179

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 between and within the sub-segments. The methods used to summarize claim counts have not changed significantly over the time periods reported in the tables below.

Property and transportation
(Dollars in Millions)
	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2024
	For the Years Ended (2015–2023 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	818	$	784	$	779	$	777	$	777	$	772	$	768	$	769	$	769	$	769	$	3	135,094
2016			746		716		714		706		694		688		689		689		686		5		121,410
2017					889		847		843		823		816		820		820		817		7		141,023
2018							932		902		886		876		882		876		878		9		130,781
2019									1,111		1,058		1,051		1,055		1,057		1,059		18		154,370
2020											1,043		974		957		949		948		22		122,246
2021													1,119		1,023		1,022		1,028		50		123,746
2022															1,393		1,316		1,313		100		137,902
2023																	1,472		1,392		178		143,664
2024																			1,592		419		156,368
																	Total		$	10,482

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2015–2023 is Supplementary Information and Unaudited)
	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024		% (a)
2015	$	359	$	582	$	667	$	707	$	736	$	744	$	750	$	755	$	761	$	762	99.1	%
2016			294		521		577		618		640		656		665		672		674		98.3	%
2017					379		640		696		735		755		783		794		804		98.4	%
2018							396		676		738		781		824		838		852		97.0	%
2019									527		823		904		959		998		1,023		96.6	%
2020											461		726		804		857		896		94.5	%
2021													449		767		867		935		91.0	%
2022															587		1,018		1,119		85.2	%
2023																	562		1,065		76.5	%
2024																			678		42.6	%
																	Total		$	8,808
							Unpaid losses and LAE — years 2015 through 2024												1,674
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																22
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	1,696

	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	45.1	%	31.3	%	8.3	%	5.5	%	3.7	%	2.2	%	1.3	%	1.0	%	0.5	%	0.1	%
Cumulative	45.1	%	76.4	%	84.7	%	90.2	%	93.9	%	96.1	%	97.4	%	98.4	%	98.9	%	99.0	%

(a)Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2024).

Specialty casualty
(Dollars in Millions)
	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2024
	For the Years Ended (2015–2023 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	1,081	$	1,043	$	1,041	$	1,042	$	1,024	$	1,021	$	1,015	$	1,007	$	1,002	$	1,019	$	45	58,641
2016			1,131		1,122		1,116		1,101		1,090		1,069		1,046		1,036		1,035		57		56,831
2017					1,211		1,221		1,204		1,189		1,162		1,139		1,139		1,149		88		57,492
2018							1,277		1,307		1,302		1,262		1,269		1,264		1,263		137		59,615
2019									1,308		1,311		1,322		1,280		1,284		1,286		178		60,028
2020											1,352		1,329		1,258		1,232		1,232		225		54,632
2021													1,384		1,389		1,342		1,319		349		56,929
2022															1,475		1,503		1,516		497		59,184
2023																	1,648		1,670		764		62,764
2024																			1,685		1,067		55,113
																	Total		$	13,174

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2015–2023 is Supplementary Information and Unaudited)
	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024		% (a)
2015	$	178	$	411	$	577	$	702	$	792	$	844	$	888	$	913	$	934	$	946	92.8	%
2016			186		418		584		713		806		870		906		938		951		91.9	%
2017					200		422		612		755		833		902		959		1,007		87.6	%
2018							210		475		649		794		901		991		1,046		82.8	%
2019									212		455		651		795		913		994		77.3	%
2020											188		446		613		757		887		72.0	%
2021													191		438		625		794		60.2	%
2022															198		507		771		50.9	%
2023																	248		596		35.7	%
2024																			267		15.8	%
																	Total		$	8,259
							Unpaid losses and LAE — years 2015 through 2024												4,915
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																351
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	5,266

	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	15.9	%	20.6	%	15.4	%	12.1	%	8.8	%	6.1	%	4.3	%	3.2	%	1.7	%	1.2	%
Cumulative	15.9	%	36.5	%	51.9	%	64.0	%	72.8	%	78.9	%	83.2	%	86.4	%	88.1	%	89.3	%

(a)Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2024).

Specialty financial
(Dollars in Millions)
	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2024
	For the Years Ended (2015–2023 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	156	$	160	$	158	$	153	$	145	$	138	$	136	$	135	$	133	$	133	$	—	37,631
2016			179		184		187		182		174		170		173		172		172		—		45,186
2017					212		215		212		208		203		202		210		210		5		48,843
2018							212		217		219		207		201		198		197		5		46,813
2019									194		198		191		186		182		178		4		41,970
2020											231		215		202		193		191		12		29,772
2021													223		201		187		179		16		27,467
2022															243		234		222		29		24,054
2023																	310		329		75		24,393
2024																			383		157		20,590
																	Total		$	2,194

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2015–2023 is Supplementary Information and Unaudited)
	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024		% (a)
2015	$	72	$	110	$	129	$	133	$	132	$	134	$	134	$	134	$	133	$	132	99.2	%
2016			88		141		158		161		163		164		171		172		172		100.0	%
2017					120		169		186		194		193		192		194		196		93.3	%
2018							112		163		187		188		192		193		193		98.0	%
2019									99		146		164		168		170		172		96.6	%
2020											100		144		159		162		167		87.4	%
2021													98		136		146		156		87.2	%
2022															108		164		187		84.2	%
2023																	150		230		69.9	%
2024																			176		46.0	%
																	Total		$	1,781
							Unpaid losses and LAE — years 2015 through 2024												413
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																(8)
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	405

	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	52.2	%	25.4	%	9.8	%	2.6	%	1.0	%	0.6	%	1.3	%	0.5	%	(0.4	%)	(0.8	%)
Cumulative	52.2	%	77.6	%	87.4	%	90.0	%	91.0	%	91.6	%	92.9	%	93.4	%	93.0	%	92.2	%

(a)Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2024).

Other specialty
(Dollars in Millions)
	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2024
	For the Years Ended (2015–2023 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims (a)
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	59	$	60	$	63	$	66	$	76	$	82	$	84	$	87	$	87	$	88	$	2	—
2016			61		61		65		71		76		77		78		77		77		6		—
2017					63		65		70		81		88		95		97		107		7		—
2018							86		90		92		94		100		111		113		14		—
2019									108		107		108		111		119		134		20		—
2020											122		117		129		126		141		29		—
2021													135		141		138		143		52		—
2022															159		152		153		72		—
2023																	201		189		104		—
2024																			165		132		—
																	Total		$	1,310

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2015–2023 is Supplementary Information and Unaudited)
	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024		% (b)
2015	$	10	$	26	$	31	$	50	$	62	$	69	$	75	$	76	$	81	$	84	95.5	%
2016			9		19		31		47		53		60		64		66		68		88.3	%
2017					10		19		30		52		63		76		83		93		86.9	%
2018							12		23		32		44		60		77		87		77.0	%
2019									9		24		49		61		79		95		70.9	%
2020											9		21		44		66		93		66.0	%
2021													8		27		49		73		51.0	%
2022															11		35		67		43.8	%
2023																	29		59		31.2	%
2024																			17		10.3	%
																	Total		$	736
							Unpaid losses and LAE — years 2015 through 2024												574
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																23
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	597

	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	9.5	%	12.7	%	13.8	%	16.4	%	13.1	%	11.2	%	6.9	%	4.4	%	4.1	%	3.4	%
Cumulative	9.5	%	22.2	%	36.0	%	52.4	%	65.5	%	76.7	%	83.6	%	88.0	%	92.1	%	95.5	%

(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).

(b)Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2024).

Total Specialty Group
(Dollars in Millions)
	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2024
	For the Years Ended (2015–2023 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	2,114	$	2,047	$	2,041	$	2,038	$	2,022	$	2,013	$	2,003	$	1,998	$	1,991	$	2,009	$	50	231,366
2016			2,117		2,083		2,082		2,060		2,034		2,004		1,986		1,974		1,970		68		223,427
2017					2,375		2,348		2,329		2,301		2,269		2,256		2,266		2,283		107		247,358
2018							2,507		2,516		2,499		2,439		2,452		2,449		2,451		165		237,209
2019									2,721		2,674		2,672		2,632		2,642		2,657		220		256,368
2020											2,748		2,635		2,546		2,500		2,512		288		206,650
2021													2,861		2,754		2,689		2,669		467		208,142
2022															3,270		3,205		3,204		698		221,140
2023																	3,631		3,580		1,121		230,821
2024																			3,825		1,775		232,071
																	Total		$	27,160

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2015–2023 is Supplementary Information and Unaudited)
	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024		% (a)
2015	$	619	$	1,129	$	1,404	$	1,592	$	1,722	$	1,791	$	1,847	$	1,878	$	1,909	$	1,924	95.8	%
2016			577		1,099		1,350		1,539		1,662		1,750		1,806		1,848		1,865		94.7	%
2017					709		1,250		1,524		1,736		1,844		1,953		2,030		2,100		92.0	%
2018							730		1,337		1,606		1,807		1,977		2,099		2,178		88.9	%
2019									847		1,448		1,768		1,983		2,160		2,284		86.0	%
2020											758		1,337		1,620		1,842		2,043		81.3	%
2021													746		1,368		1,687		1,958		73.4	%
2022															904		1,724		2,144		66.9	%
2023																	989		1,950		54.5	%
2024																			1,138		29.8	%
																	Total		$	19,584
							Unpaid losses and LAE — years 2015 through 2024												7,576
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																388
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	7,964

	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	%	24.6	%	12.2	%	9.1	%	6.5	%	4.5	%	3.1	%	2.2	%	1.2	%	0.7	%
Cumulative	29.7	%	54.3	%	66.5	%	75.6	%	82.1	%	86.6	%	89.7	%	91.9	%	93.1	%	93.8	%

(a)Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2024).

Deferred Policy Acquisition Costs   Included in commissions and other underwriting expenses in AFG’s Statement of Earnings is amortization of deferred policy acquisition costs of $766 million, $720 million, and $641 million in 2024, 2023 and 2022, 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):

	Net Earnings						Capital and Surplus
	2024		2023		2022		2024		2023
Property and casualty companies	$	974	$	1,004	$	912	$	4,614	$	4,436

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, 2024 and 2023, 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, 2024 or 2023.

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 2025 from its insurance subsidiaries without seeking regulatory approval is $1.00 billion. Additional amounts of dividends require regulatory approval.

Holding Company Dividends   AFG declared and paid common stock dividends to shareholders totaling $791 million, $687 million and $1.22 billion in 2024, 2023 and 2022, 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, 2024, AFG could pay dividends of approximately $1.62 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 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.

	2024		2023		2022
Direct premiums written	$	9,933	$	9,309	$	8,774
Reinsurance assumed	600		347		283
Reinsurance ceded	(3,394)		(2,964)		(2,851)
Net written premiums	$	7,139	$	6,692	$	6,206
Direct premiums earned	$	9,763	$	9,133	$	8,582
Reinsurance assumed	611		321		274
Reinsurance ceded	(3,338)		(2,923)		(2,771)
Net earned premiums	$	7,036	$	6,531	$	6,085
Reinsurance recoveries	$	3,040	$	2,336	$	2,065

Recoverables from Reinsurers and Premiums Receivable Progressions of the allowance for expected credit losses on recoverables from reinsurers and premiums receivable are shown below (in millions):

	Recoverables from Reinsurers						Premiums Receivable
	2024		2023		2022		2024		2023		2022
Balance at January 1	$	10	$	8	$	8	$	15	$	8	$	8
Increase in allowance from acquisition of CRS	—		—		—		—		4		—
Provision for expected credit losses	1		2		—		5		3		—
Write-offs charged against the allowance	—		—		—		(1)		—		—
Balance at December 31	$	11	$	10	$	8	$	19	$	15	$	8