
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized				Net Unrealized		Fair Value
					Gains		Losses
September 30, 2025
Fixed maturities:
U.S. government and government agencies	$	170	$	—	$	1	$	(1)	$	—	$	170
States, municipalities and political subdivisions	877		—		8		(32)		(24)		853
Foreign government	249		—		4		—		4		253
Residential MBS	2,388		1		37		(113)		(76)		2,311
Collateralized loan obligations	1,106		5		4		(5)		(1)		1,100
Other asset-backed securities	2,425		5		27		(44)		(17)		2,403
Corporate and other	3,373		5		86		(26)		60		3,428
Total fixed maturities	$	10,588	$	16	$	167	$	(221)	$	(54)	$	10,518

December 31, 2024
Fixed maturities:
U.S. government and government agencies	$	176	$	—	$	—	$	(3)	$	(3)	$	173
States, municipalities and political subdivisions	905		—		3		(49)		(46)		859
Foreign government	236		—		2		(1)		1		237
Residential MBS	2,122		1		22		(154)		(132)		1,989
Collateralized loan obligations	1,243		4		10		(12)		(2)		1,237
Other asset-backed securities	2,463		6		19		(69)		(50)		2,407
Corporate and other	3,542		23		42		(65)		(23)		3,496
Total fixed maturities	$	10,687	$	34	$	98	$	(353)	$	(255)	$	10,398


	September 30, 2025						December 31, 2024
	Actual Cost		Fair Value		Fair Value Over Cost		Actual Cost		Fair Value		Fair Value Over Cost
Common stocks	$	323	$	384	$	61	$	304	$	336	$	32
Perpetual preferred stocks	391		416		25		380		415		35
Total equity securities carried at fair value	$	714	$	800	$	86	$	684	$	751	$	67


					Net Investment Income
	Carrying Value				Three months ended September 30,				Nine months ended September 30,
	September 30, 2025		December 31, 2024		2025		2024		2025		2024
Real estate-related investments (*)	$	1,422	$	1,392	$	12	$	10	$	13	$	15
Private equity	870		804		13		(5)		14		26
Private debt	91		81		2		1		7		4
Total investments accounted for using the equity method	$	2,383	$	2,277	$	27	$	6	$	34	$	45

The earnings (losses) from these investments are generally reported on a quarter lag due to the timing required to obtain the necessary information from the funds. AFG regularly reviews and discusses fund performance with the fund managers to corroborate the reasonableness of the underlying reported asset values and to assess whether any events have occurred within the lag period that may materially affect the valuation of these investments.

The following table shows gross unrealized losses (dollars in millions) on available for sale fixed maturities by investment category and length of time that individual securities have been in a continuous unrealized loss position at the following balance sheet dates.


	Less Than Twelve Months						Twelve Months or More
	Unrealized Loss		Fair Value		Fair Value as % of Cost		Unrealized Loss		Fair Value		Fair Value as % of Cost
September 30, 2025
Fixed maturities:
U.S. government and government agencies	$	—	$	8	100	%	$	(1)	$	66	99	%
States, municipalities and political subdivisions	(2)		86		98	%	(30)		429		93	%
Foreign government	—		8		100	%	—		42		100	%
Residential MBS	(1)		145		99	%	(112)		935		89	%
Collateralized loan obligations	—		25		100	%	(5)		178		97	%
Other asset-backed securities	(1)		161		99	%	(43)		891		95	%
Corporate and other	(1)		121		99	%	(25)		872		97	%
Total fixed maturities	$	(5)	$	554	99	%	$	(216)	$	3,413	94	%

December 31, 2024
Fixed maturities:
U.S. government and government agencies	$	—	$	35	100	%	$	(3)	$	105	97	%
States, municipalities and political subdivisions	(5)		256		98	%	(44)		470		91	%
Foreign government	—		98		100	%	(1)		50		98	%
Residential MBS	(6)		452		99	%	(148)		916		86	%
Collateralized loan obligations	—		—		—	%	(12)		247		95	%
Other asset-backed securities	(4)		332		99	%	(65)		1,217		95	%
Corporate and other	(10)		605		98	%	(55)		1,151		95	%
Total fixed maturities	$	(25)	$	1,778	99	%	$	(328)	$	4,156	93	%

At September 30, 2025, the gross unrealized losses on fixed maturities of $221 million relate to approximately 900 securities. Investment grade securities (as determined by nationally recognized rating agencies) represented approximately 96% of the gross unrealized loss and 96% of the fair value of securities with unrealized losses.

To evaluate fixed maturities for expected credit losses (impairment), management considers whether the unrealized loss is credit-driven or a result of changes in market interest rates, the extent to which fair value is less than cost basis, historical operating, balance sheet and cash flow data from the issuer, third party research, communications with industry specialists and discussions with issuer management.

AFG analyzes its residential MBS for expected credit losses (impairment) each quarter based upon expected future cash flows. Management estimates expected future cash flows based upon its knowledge of the MBS market, cash flow projections (which reflect loan to collateral values, subordination, vintage and geographic concentration) received from independent sources, implied cash flows inherent in security ratings and analysis of historical payment data.

Management believes AFG will recover its cost basis (net of any allowance) in the securities with unrealized losses and that AFG has the ability to hold the securities until they recover in value and had no intent to sell them at September 30, 2025.


	Structured Securities (*)		Corporate and Other		Total
Balance at June 30, 2025	$	10	$	5	$	15

Provision for expected credit losses on securities with no previous allowance	—		—		—
Additions to previously recognized expected credit losses	1		—		1
Reductions due to sales or redemptions	—		—		—
Balance at September 30, 2025	$	11	$	5	$	16

Balance at June 30, 2024	$	10	$	—	$	10

Provision for expected credit losses on securities with no previous allowance	—		15		15
Additions to previously recognized expected credit losses	—		—		—
Reductions due to sales or redemptions	—		—		—
Balance at September 30, 2024	$	10	$	15	$	25

Balance at December 31, 2024	$	11	$	23	$	34

Provision for expected credit losses on securities with no previous allowance	—		3		3
Additions to previously recognized expected credit losses	—		5		5
Reductions due to sales or redemptions	—		(26)		(26)
Balance at September 30, 2025	$	11	$	5	$	16

Balance at December 31, 2023	$	9	$	3	$	12

Provision for expected credit losses on securities with no previous allowance	1		15		16
Additions to previously recognized expected credit losses	1		—		1
Reductions due to sales or redemptions	(1)		(3)		(4)
Balance at September 30, 2024	$	10	$	15	$	25

The table below sets forth the scheduled maturities of AFG’s available for sale fixed maturities as of September 30, 2025 (dollars in millions). Securities with sinking funds are reported at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers.


	Amortized		Fair Value
	Cost, net (*)		Amount		%
Maturity
One year or less	$	759	$	751	7	%
After one year through five years	2,349		2,369		23	%
After five years through ten years	1,325		1,364		13	%
After ten years	231		220		2	%
	4,664		4,704		45	%
CLOs and other ABS (average life of approximately 3 years)	3,521		3,503		33	%
Residential MBS (average life of approximately 6 years)	2,387		2,311		22	%
Total	$	10,572	$	10,518	100	%

Certain risks are inherent in fixed maturity securities, including loss upon default, price volatility in reaction to changes in interest rates, and general market factors and risks associated with reinvestment of proceeds due to prepayments or redemptions in a period of declining interest rates.


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Investment income:
Fixed maturities:
Interest and amortization	$	148	$	136	$	429	$	406
Change in fair value (*)	4		7		6		7
Equity securities:
Dividends	6		6		27		20
Change in fair value	(6)		20		(2)		45
Equity in earnings of partnerships and similar investments	27		6		34		45
Cash and cash equivalents	14		16		37		40
Other	18		15		50		40
Gross investment income	211		206		581		603
Investment expenses	(6)		(6)		(19)		(17)
Net investment income	$	205	$	200	$	562	$	586


	Three months ended September 30, 2025								Three months ended September 30, 2024
	Realized gains (losses)								Realized gains (losses)
	Before Impairments		Impairment Allowance		Total		Change in Unrealized		Before Impairments		Impairment Allowance		Total		Change in Unrealized
Fixed maturities	$	—	$	(1)	$	(1)	$	74	$	3	$	(15)	$	(12)	$	241
Equity securities	13		—		13		—		10		—		10		—
Mortgage loans and other investments	—		—		—		—		—		—		—		—
Total pretax	13		(1)		12		74		13		(15)		(2)		241
Tax effects	(3)		1		(2)		(16)		(3)		3		—		(51)
Net of tax	$	10	$	—	$	10	$	58	$	10	$	(12)	$	(2)	$	190

	Nine months ended September 30, 2025								Nine months ended September 30, 2024
	Realized gains (losses)								Realized gains (losses)
	Before Impairments		Impairment Allowance		Total		Change in Unrealized		Before Impairments		Impairment Allowance		Total		Change in Unrealized
Fixed maturities	$	(7)	$	(8)	$	(15)	$	201	$	(2)	$	(17)	$	(19)	$	237
Equity securities	32		—		32		—		29		—		29		—
Mortgage loans and other investments	—		—		—		—		—		—		—		—
Total pretax	25		(8)		17		201		27		(17)		10		237
Tax effects	(5)		2		(3)		(42)		(6)		3		(3)		(50)
Net of tax	$	20	$	(6)	$	14	$	159	$	21	$	(14)	$	7	$	187

All equity securities are carried at fair value through net earnings. AFG recorded net holding gains (losses) on equity securities during the third quarter and first nine months of 2025 and 2024 on securities that were still owned at September 30, 2025 and September 30, 2024 as follows (in millions):