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Investments
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Available for sale fixed maturities at March 31, 2026 and December 31, 2025, consisted of the following (in millions):
Amortized
Cost		Allowance for Expected Credit LossesGross UnrealizedNet
Unrealized		Fair
Value
GainsLosses
March 31, 2026
Fixed maturities:
U.S. government and government agencies$150 $— $1 $(1)$— $150 
States, municipalities and political subdivisions
820 — 6 (35)(29)791 
Foreign government
236 — 1 — 1 237 
Residential MBS
3,247 2 32 (117)(85)3,160 
Collateralized loan obligations
1,185 4 2 (3)(1)1,180 
Other asset-backed securities
2,608 5 21 (49)(28)2,575 
Corporate and other
3,303 15 49 (33)16 3,304 
Total fixed maturities$11,549 $26 $112 $(238)$(126)$11,397 
December 31, 2025
Fixed maturities:
U.S. government and government agencies$160 $— $1 $— $1 $161 
States, municipalities and political subdivisions
853 — 8 (26)(18)835 
Foreign government
236 — 2 — 2 238 
Residential MBS
2,808 1 43 (103)(60)2,747 
Collateralized loan obligations
1,167 5 1 (3)(2)1,160 
Other asset-backed securities
2,539 5 29 (38)(9)2,525 
Corporate and other
3,338 10 81 (23)58 3,386 
Total fixed maturities$11,101 $21 $165 $(193)$(28)$11,052 
Equity securities which are reported at fair value with holding gains and losses recognized in net earnings, consisted of the following at March 31, 2026 and December 31, 2025 (in millions):
March 31, 2026December 31, 2025
Actual Cost
Fair Value
Fair Value Over Cost
Actual Cost
Fair Value
Fair Value Over Cost
Common stocks$341 $363 $22 $332 $365 $33 
Perpetual preferred stocks379 390 11 398 420 22 
Total equity securities carried at fair value
$720 $753 $33 $730 $785 $55 

The following table summarizes investments accounted for using the equity method, by strategy (in millions):
Net Investment Income
Carrying ValueThree months ended March 31,
March 31, 2026December 31, 202520262025
Real estate-related investments (*)$1,418 $1,431 $5 $17 
Private equity927 895 10 (6)
Private debt98 95 3 2 
Total investments accounted for using the equity method$2,443 $2,421 $18 $13 
(*)88% and 87% of the carrying value relates to underlying investments in multi-family properties as of March 31, 2026 and December 31, 2025, respectively.

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.

With respect to partnerships and similar investments, AFG had unfunded commitments of $437 million and $456 million as of March 31, 2026 and December 31, 2025, respectively.
The following table shows gross unrealized losses (dollars in millions) on available for sale fixed maturities by investment category and length of time that individual securities have been in a continuous unrealized loss position at the following balance sheet dates.
Less Than Twelve MonthsTwelve Months or More
Unrealized
Loss		Fair
Value		Fair Value as
% of Cost		Unrealized
Loss		Fair
Value		Fair Value as
% of Cost
March 31, 2026
Fixed maturities:
U.S. government and government agencies$(1)$47 98%$— $33 100%
States, municipalities and political subdivisions
(6)273 98%(29)264 90%
Foreign government— 137 100%— — —%
Residential MBS(13)1,177 99%(104)888 90%
Collateralized loan obligations— 160 100%(3)121 98%
Other asset-backed securities(10)813 99%(39)750 95%
Corporate and other(11)746 99%(22)625 97%
Total fixed maturities$(41)$3,353 99%$(197)$2,681 93%
December 31, 2025
Fixed maturities:
U.S. government and government agencies$— $15 100%$— $44 100%
States, municipalities and political subdivisions
— 47 100%(26)426 94%
Foreign government— 52 100%— 5 100%
Residential MBS(4)186 98%(99)914 90%
Collateralized loan obligations— 124 100%(3)147 98%
Other asset-backed securities(1)311 100%(37)803 96%
Corporate and other(2)174 99%(21)794 97%
Total fixed maturities$(7)$909 99%$(186)$3,133 94%

At March 31, 2026, the gross unrealized losses on fixed maturities of $238 million relate to approximately 1,100 securities. Investment grade securities (as determined by nationally recognized rating agencies) represented approximately 97% of the gross unrealized loss and 97% 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 received from independent sources (which reflect loan to collateral values, subordination, vintage and geographic concentration), 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 March 31, 2026.
A progression of the allowance for expected credit losses on available for sale fixed maturity securities is shown below (in millions):
Structured
Securities (*)		Corporate and OtherTotal
Balance at December 31, 2025$11 $10 $21 
Provision for expected credit losses on securities with no previous allowance— 5 5 
Additions to previously recognized expected credit losses
— — — 
Reductions due to sales or redemptions
— — — 
Balance at March 31, 2026$11 $15 $26 
Balance at December 31, 2024$11 $23 $34 
Provision for expected credit losses on securities with no previous allowance— 2 2 
Additions to previously recognized expected credit losses
— 5 5 
Reductions due to sales or redemptions
— — — 
Balance at March 31, 2025$11 $30 $41 
(*)Includes residential MBS, collateralized loan obligations and other asset-backed securities (“ABS”).

In the first three months of 2026 and 2025, AFG did not purchase any securities with expected credit losses.

The table below sets forth the scheduled maturities of AFG’s available for sale fixed maturities as of March 31, 2026 (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.
AmortizedFair Value
Cost, net (*)Amount%
Maturity
One year or less$694 $687 6%
After one year through five years2,125 2,123 19%
After five years through ten years1,459 1,472 13%
After ten years216 200 2%
4,494 4,482 40%
CLOs and other ABS (average life of approximately 3.5 years)
3,784 3,755 33%
Residential MBS (average life of approximately 6 years)
3,245 3,160 27%
Total$11,523 $11,397 100%
(*)Amortized cost, net of allowance for expected credit losses.

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.

There were no investments in individual issuers that exceeded 10% of shareholders’ equity at March 31, 2026 or December 31, 2025.
Net Investment Income   The following table shows investment income earned and investment expenses incurred (in millions):
Three months ended March 31,
20262025
Investment income:
Fixed maturities:
Interest and amortization$145 $140 
Change in fair value (*)
— (5)
Equity securities:
Dividends10 6 
Change in fair value
(10)— 
Equity in earnings of partnerships and similar investments
18 13 
Cash and cash equivalents
12 13 
Mortgage loans12 9 
Other7 4 
Gross investment income194 180 
Investment expenses(7)(7)
Net investment income$187 $173 
(*)The change in the fair value of fixed maturities classified as trading and derivatives embedded in convertible fixed maturities related to limited partnerships and similar investments.

Realized gains (losses) and changes in unrealized appreciation (depreciation) included in AOCI related to fixed maturity securities are summarized as follows (in millions):
Three months ended March 31, 2026Three months ended March 31, 2025
Realized gains (losses)Realized gains (losses)
Before ImpairmentsImpairment AllowanceTotalChange in UnrealizedBefore ImpairmentsImpairment AllowanceTotalChange in Unrealized
Fixed maturities$(1)$(5)$(6)$(98)$1 $(7)$(6)$76 
Equity securities(12)— (12)— 9 — 9 — 
Mortgage loans and other investments
— — — — — — — — 
Total pretax(13)(5)(18)(98)10 (7)3 76 
Tax effects2 1 3 20 (2)1 (1)(15)
Net of tax
$(11)$(4)$(15)$(78)$8 $(6)$2 $61 

All equity securities are carried at fair value through net earnings. AFG recorded net holding gains (losses) on equity securities during the first three months of 2026 and 2025 on securities that were still owned at March 31, 2026 and March 31, 2025 as follows (in millions):
Three months ended March 31,
20262025
Included in realized gains (losses)$(16)$7 
Included in net investment income(7)(1)
$(23)$6 

Gross realized gains and losses (excluding changes in impairment allowance and mark-to-market of derivatives) on available for sale fixed maturity investment transactions consisted of the following (in millions):
Three months ended March 31,
20262025
Gross gains$1 $— 
Gross losses(1)—