Segments of Operations

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segments of Operations

Segments of Operations

AFG manages its business as two segments: Property and casualty insurance and Other, which includes holding company assets and costs.

AFG reports its property and casualty insurance business in the following Specialty sub-segments: (i) Property and transportation, which includes physical damage and liability coverage for buses and trucks and other specialty transportation niches, inland and ocean marine, agricultural-related products and other commercial property coverages, (ii) Specialty casualty, which includes primarily excess and surplus, executive and professional liability, general liability, umbrella and excess liability, specialty coverages in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance, and (iii) Specialty financial, which includes risk management insurance programs for lending and leasing institutions (including equipment leasing and collateral and lender-placed mortgage property insurance), fidelity and surety products and trade credit insurance. AFG’s reportable segments and their components were determined based primarily upon similar economic characteristics, products and services. Historically, AFG reported the results of its internal reinsurance facility (that assumes business from several of AFG’s Specialty P&C businesses) in an Other Specialty sub-segment. Beginning in 2025, to be consistent with how the Chief Operating Decision Makers (“CODMs”) currently view and evaluate AFG’s P&C sub-segments, the internal reinsurance results are

included within the same sub-segments as the ceding businesses. The CODMs believe this presentation better reflects the performance of the underlying operating businesses and enhances the financial reporting. Information from prior periods has been recast for consistent presentation. The impacts of all intercompany transactions between segments have been eliminated.

AFG’s CODMs are its Co-CEOs. The CODMs evaluate the performance of the Property and casualty insurance segment based on return on equity and underwriting profit. The CODMs use this measure to allocate resources and make capital decisions.

Sales of property and casualty insurance outside of the United States represented 4% of AFG’s revenues in both the first three months of 2025 and 2024.

The following tables (in millions) show AFG’s assets, revenues and earnings before income taxes by segment and sub-segment.

	March 31, 2025		December 31, 2024
Assets
Property and casualty insurance (*)	$	25,704	$	25,913
Other	4,590		4,923
Total assets	$	30,294	$	30,836

(*)Not allocable to sub-segments.

	Three months ended March 31,
	2025		2024
Revenues
Property and casualty insurance:
Net earned premiums:
Specialty
Property and transportation	$	500	$	520
Specialty casualty	794		783
Specialty financial	286		243
Total net earned premiums	1,580		1,546
Net investment income	170		205
Other income	3		2
Total property and casualty insurance	1,753		1,753
Other	100		139
Total revenues before realized gains	1,853		1,892
Realized gains on securities	3		14
Total revenues	$	1,856	$	1,906
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	37	$	60
Specialty casualty	20		61
Specialty financial	37		33
Other lines	—		(1)
Total underwriting (a)	94		153
Investment and other income, net (b)	152		187
Total property and casualty insurance	246		340
Other (c)	(52)		(50)
Total earnings before realized gains and income taxes	194		290
Realized gains on securities	3		14
Total earnings before income taxes	$	197	$	304

(a)Significant segment expenses, which are losses and loss adjustment expenses and commissions and other underwriting expenses, are shown in the table below by sub-segment.

(b)Includes the amortization of intangibles and other miscellaneous expenses.

(c)Includes the expenses of the managed investment entities, interest charges on borrowed money, salaries, depreciation and other general expenses.