v3.25.2
Segments of Operations
 6 Months Ended
Jun. 30, 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 property and casualty 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 Property and casualty 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 second quarter and first six 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.
June 30,
2025		December 31,
2024
Assets
Property and casualty insurance (*)$26,089 $25,913 
Other4,580 4,923 
Total assets$30,669 $30,836 
(*)Not allocable to sub-segments.
Three months ended June 30,Six months ended June 30,
2025202420252024
Revenues
Property and casualty insurance:
Net earned premiums:
Specialty
Property and transportation$576 $552 $1,076 $1,072 
Specialty casualty799 791 1,593 1,574 
Specialty financial272 242 558 485 
Total net earned premiums
1,647 1,585 3,227 3,131 
Net investment income179 189 349 394 
Other income— 2 3 4 
Total property and casualty insurance1,826 1,776 3,579 3,529 
Other96 126 196 265 
Total revenues before realized gains (losses)
1,922 1,902 3,775 3,794 
Realized gains (losses) on securities
2 (2)5 12 
Total revenues$1,924 $1,900 $3,780 $3,806 
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation$27 $40 $64 $100 
Specialty casualty49 86 69 147 
Specialty financial38 25 75 58 
Other lines(1)(1)(1)(2)
Total underwriting (a)
113 150 207 303 
Investment and other income, net (b)
160 169 312 356 
Total property and casualty insurance273 319 519 659 
Other (c)
(46)(46)(98)(96)
Total earnings before realized gains (losses) and income taxes
227 273 421 563 
Realized gains (losses) on securities
2 (2)5 12 
Total earnings before income taxes
$229 $271 $426 $575 
(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.
The following table shows the components of underwriting profit, including significant segment expenses, for the Property and casualty insurance segment (in millions):
Three months ended June 30,Six months ended June 30,
2025202420252024
Property and casualty insurance:
Specialty:
Property and transportation:
Net earned premiums
$576 $552 $1,076 $1,072 
Losses and loss adjustment expenses387 351 698 657 
Commissions and other underwriting expenses162 161 314 315 
Underwriting profit
$27 $40 $64 $100 
Specialty casualty:
Net earned premiums
$799 $791 $1,593 $1,574 
Losses and loss adjustment expenses516 483 1,052 985 
Commissions and other underwriting expenses234 222 472 442 
Underwriting profit
$49 $86 $69 $147 
Specialty financial:
Net earned premiums
$272 $242 $558 $485 
Losses and loss adjustment expenses103 102 221 200 
Commissions and other underwriting expenses131 115 262 227 
Underwriting profit
$38 $25 $75 $58 
Other lines:
Losses and loss adjustment expenses$1 $1 $1 $2 
Underwriting profit (loss)
$(1)$(1)$(1)$(2)
Total property and casualty insurance segment:
Net earned premiums
$1,647 $1,585 $3,227 $3,131 
Losses and loss adjustment expenses1,007 937 1,972 1,844 
Commissions and other underwriting expenses527 498 1,048 984 
Underwriting profit
$113 $150 $207 $303