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Insurance
 12 Months Ended
Dec. 31, 2025
Insurance [Abstract]  
Insurance Insurance
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 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 Method
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, 2025 and December 31, 2024, 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 both December 31, 2025 and December 31, 2024).
The following table provides an analysis of changes in the liability for losses and loss adjustment expenses over the past three years (in millions):
202520242023
Balance at beginning of period$14,179 $13,087 $11,974 
Less reinsurance recoverables, net of allowance4,957 4,288 3,767 
Net liability at beginning of period9,222 8,799 8,207 
Provision for losses and LAE occurring in the current year4,469 4,524 4,256 
Net decrease in the provision for claims of prior years
(81)(64)(223)
Total losses and LAE incurred4,388 4,460 4,033 
Payments for losses and LAE of:
Current year(1,330)(1,497)(1,261)
Prior years(2,488)(2,537)(2,181)
Total payments(3,818)(4,034)(3,442)
Foreign currency translation and other(4)(3)1 
Net liability at end of period9,788 9,222 8,799 
Add back reinsurance recoverables, net of allowance5,306 4,957 4,288 
Gross unpaid losses and LAE included in the balance sheet$15,094 $14,179 $13,087 

The net decrease in the provision for claims of prior years in 2025 reflects (i) lower than anticipated losses in the crop business, lower than expected claim severity in the aviation and ocean marine businesses and lower than anticipated claim frequency and 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 and executive liability businesses (within the Specialty casualty sub-segment) and (iii) lower than anticipated claim frequency in the financial institutions business and lower than expected claim severity in the surety, fidelity and trade credit businesses (within the Specialty financial sub-segment). This favorable development was partially offset by higher than expected claim severity in the excess and surplus, social services, excess liability, public sector and general liability businesses (within the Specialty casualty sub-segment).

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) and (ii) higher than anticipated claim severity in the innovative markets and surety businesses (within the Specialty financial sub-segment).

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).
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, the internal reinsurance results are included within the same sub-segments as the ceding businesses to align with senior management’s evolving view of the program. The overall results for AFG’s Specialty property and casualty insurance operations are not impacted by this change. Information from prior periods has been recast for consistent presentation.

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):
2025
Unpaid losses and allocated LAE, net of reinsurance:
Specialty
Property and transportation$1,847 
Specialty casualty6,177 
Specialty financial460 
Total Specialty (excluding foreign reserves)8,484 
Other reserves
Foreign operations443 
A&E reserves347 
Unallocated LAE455 
Other59 
Total other reserves1,304 
Total reserves, net of reinsurance9,788 
Add back reinsurance recoverables, net of allowance5,306 
Gross unpaid losses and LAE included in the balance sheet$15,094 

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 ReinsuranceAs of December 31, 2025
For the Years Ended (2016–2024 is Supplementary Information and Unaudited)
Total IBNR Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year2016201720182019202020212022202320242025
2016$753 $723 $720 $713 $700 $694 $695 $695 $692 $690 $70 121,425 
2017897 855 850 829 822 826 825 823 820 56 141,054 
2018942 912 897 886 891 886 888 890 52 130,840 
20191,125 1,071 1,062 1,065 1,068 1,070 1,070 59 154,461 
20201,053 983 969 962 963 964 71 122,348 
20211,130 1,034 1,033 1,038 1,034 86 123,890 
20221,409 1,335 1,329 1,313 104 138,424 
20231,502 1,408 1,397 149 145,066 
20241,614 1,558 247 175,137 
20251,462 564 135,480 
Total$11,198 
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year
For the Years Ended (2016–2024 is Supplementary Information and Unaudited)
2016201720182019202020212022202320242025% (a)
2016$295 $524 $580 $622 $645 $661 $670 $676 $679 $681 98.7%
2017381 643 699 738 760 788 799 809 811 98.9%
2018400 680 744 787 831 845 859 873 98.1%
2019529 829 911 967 1,006 1,032 1,046 97.8%
2020462 728 808 866 905 929 96.4%
2021449 770 872 941 972 94.0%
2022588 1,024 1,128 1,184 90.2%
2023564 1,070 1,176 84.2%
2024681 1,173 75.3%
2025528 36.1%
Total$9,373 
Unpaid losses and LAE — years 2016 through 2025
1,825 
Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)22 
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)$1,847 
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
(Supplementary Information and Unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Annual44.0%31.6%7.9%5.4%3.6%2.4%1.4%1.2%0.3%0.3%
Cumulative44.0%75.6%83.5%88.9%92.5%94.9%96.3%97.5%97.8%98.1%
(a)Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2025).
Specialty casualty
(Dollars in Millions)
Incurred Claims and Allocated LAE, Net of ReinsuranceAs of December 31, 2025
For the Years Ended (2016–2024 is Supplementary Information and Unaudited)
Total IBNR Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year2016201720182019202020212022202320242025
2016$1,184 $1,176 $1,175 $1,165 $1,160 $1,140 $1,118 $1,107 $1,106 $1,115 $49 56,921 
20171,264 1,277 1,267 1,263 1,243 1,227 1,231 1,250 1,260 81 57,594 
20181,352 1,386 1,382 1,345 1,359 1,364 1,365 1,365 120 59,771 
20191,401 1,404 1,419 1,380 1,391 1,408 1,397 137 60,242 
20201,463 1,436 1,374 1,344 1,357 1,368 194 54,981 
20211,507 1,518 1,469 1,451 1,426 274 57,465 
20221,617 1,635 1,652 1,678 413 60,252 
20231,818 1,841 1,853 639 64,764 
20241,826 1,828 850 64,130 
20251,924 1,291 57,463 
Total$15,214 
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year
For the Years Ended (2016–2024 is Supplementary Information and Unaudited)
2016201720182019202020212022202320242025% (a)
2016$195 $433 $611 $755 $854 $925 $965 $1,000 $1,014 $1,031 92.5%
2017208 438 638 803 890 972 1,036 1,095 1,128 89.5%
2018218 494 675 832 953 1,060 1,125 1,173 85.9%
2019219 473 693 848 984 1,079 1,166 83.5%
2020196 465 652 814 971 1,064 77.8%
2021199 462 668 861 1,013 71.0%
2022208 536 829 1,038 61.9%
2023275 650 924 49.9%
2024281 647 35.4%
2025264 13.7%
Total$9,448 
Unpaid losses and LAE — years 2016 through 2025
5,766 
Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)411 
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)$6,177 
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
(Supplementary Information and Unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Annual15.0%19.5%15.2%12.3%9.4%6.9%4.9%3.8%1.9%1.5%
Cumulative15.0%34.5%49.7%62.0%71.4%78.3%83.2%87.0%88.9%90.4%
(a)Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2025).
Specialty financial
(Dollars in Millions)
Incurred Claims and Allocated LAE, Net of ReinsuranceAs of December 31, 2025
For the Years Ended (2016–2024 is Supplementary Information and Unaudited)
Total IBNR Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year2016201720182019202020212022202320242025
2016$180 $184 $187 $182 $174 $170 $173 $172 $172 $173 $— 45,187 
2017214 216 212 209 204 203 210 210 213 6 48,850 
2018213 218 220 208 202 199 198 196 2 46,818 
2019195 199 191 187 183 179 177 3 41,979 
2020232 216 203 194 192 187 6 29,793 
2021224 202 187 180 172 8 27,502 
2022244 235 223 215 19 24,155 
2023311 331 335 74 24,686 
2024385 363 83 23,858 
2025359 154 17,220 
Total$2,390 
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year
For the Years Ended (2016–2024 is Supplementary Information and Unaudited)
2016201720182019202020212022202320242025% (a)
2016$87 $142 $159 $162 $163 $164 $171 $172 $172 $173 100.0%
2017120 169 187 195 194 193 195 196 199 93.4%
2018112 163 187 188 193 194 194 195 99.5%
201999 146 164 168 170 173 173 97.7%
2020100 144 160 162 167 174 93.0%
202198 136 147 156 162 94.2%
2022108 164 187 193 89.8%
2023150 230 249 74.3%
2024176 247 68.0%
2025166 46.2%
Total$1,931 
Unpaid losses and LAE — years 2016 through 2025
459 
Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)1 
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)$460 
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
(Supplementary Information and Unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Annual52.0%24.7%9.0%2.5%1.7%1.2%1.2%0.5%0.7%0.6%
Cumulative52.0%76.7%85.7%88.2%89.9%91.1%92.3%92.8%93.5%94.1%
(a)Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2025).
Total Specialty Group
(Dollars in Millions)
Incurred Claims and Allocated LAE, Net of ReinsuranceAs of December 31, 2025
For the Years Ended (2016–2024 is Supplementary Information and Unaudited)
Total IBNR Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year2016201720182019202020212022202320242025
2016$2,117 $2,083 $2,082 $2,060 $2,034 $2,004 $1,986 $1,974 $1,970 $1,978 $119 223,533 
20172,375 2,348 2,329 2,301 2,269 2,256 2,266 2,283 2,293 143 247,498 
20182,507 2,516 2,499 2,439 2,452 2,449 2,451 2,451 174 237,429 
20192,721 2,674 2,672 2,632 2,642 2,657 2,644 199 256,682 
20202,748 2,635 2,546 2,500 2,512 2,519 271 207,122 
20212,861 2,754 2,689 2,669 2,632 368 208,857 
20223,270 3,205 3,204 3,206 536 222,831 
20233,631 3,580 3,585 862 234,516 
20243,825 3,749 1,180 263,125 
20253,745 2,009 210,163 
Total$28,802 
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year
For the Years Ended (2016–2024 is Supplementary Information and Unaudited)
2016201720182019202020212022202320242025% (a)
2016$577 $1,099 $1,350 $1,539 $1,662 $1,750 $1,806 $1,848 $1,865 $1,885 95.3%
2017709 1,250 1,524 1,736 1,844 1,953 2,030 2,100 2,138 93.2%
2018730 1,337 1,606 1,807 1,977 2,099 2,178 2,241 91.4%
2019847 1,448 1,768 1,983 2,160 2,284 2,385 90.2%
2020758 1,337 1,620 1,842 2,043 2,167 86.0%
2021746 1,368 1,687 1,958 2,147 81.6%
2022904 1,724 2,144 2,415 75.3%
2023989 1,950 2,349 65.5%
20241,138 2,067 55.1%
2025958 25.6%
Total$20,752 
Unpaid losses and LAE — years 2016 through 2025
8,050 
Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)434 
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)$8,484 
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
(Supplementary Information and Unaudited)
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
Annual29.2%24.6%11.9%9.0%6.6%4.8%3.3%2.6%1.3%1.0%
Cumulative29.2%53.8%65.7%74.7%81.3%86.1%89.4%92.0%93.3%94.3%
(a)Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2025).
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 $775 million, $766 million, and $720 million in 2025, 2024 and 2023, 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 EarningsCapital and Surplus
 20252024202320252024
Property and casualty companies$1,052 $974 $1,004 $4,968 $4,614 

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, 2025 and 2024, 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, 2025 or 2024.

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 2026 from its insurance subsidiaries without seeking regulatory approval is $1.08 billion. Additional amounts of dividends require regulatory approval.

Cash and securities owned by U.S.-based insurance subsidiaries, having a carrying value of approximately $1.23 billion at December 31, 2025, were on deposit as required by regulatory authorities.

Holding Company Dividends   AFG declared and paid Common Stock dividends to shareholders totaling $608 million, $791 million and $687 million in 2025, 2024 and 2023, 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, 2025, AFG could pay dividends of approximately $1.80 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.
202520242023
Direct premiums written$10,342 $9,933 $9,309 
Reinsurance assumed352 600 347 
Reinsurance ceded(3,584)(3,394)(2,964)
Net written premiums$7,110 $7,139 $6,692 
Direct premiums earned$10,213 $9,763 $9,133 
Reinsurance assumed347 611 321 
Reinsurance ceded(3,514)(3,338)(2,923)
Net earned premiums$7,046 $7,036 $6,531 
Reinsurance recoveries$2,527 $3,040 $2,336 
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 ReinsurersPremiums Receivable
202520242023202520242023
Balance at January 1$11 $10 $8 $19 $15 $8 
Increase in allowance from acquisition of CRS
— — — — — 4 
Provision for expected credit losses(1)1 2 1 5 3 
Write-offs charged against the allowance— — — — (1)— 
Balance at December 31$10 $11 $10 $20 $19 $15