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American Financial (AFG) - 2025 Q2 - Quarterly Report

Part I — Financial Information This section presents the unaudited consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures for American Financial Group, Inc Item 1 — Financial Statements This section provides AFG's unaudited consolidated financial statements and detailed notes on accounting policies, segment operations, and various financial components Consolidated Balance Sheet AFG's balance sheet shows a slight asset and liability decrease, with increased equity, driven by changes in cash, fixed maturities, and insurance reserves Total Assets and Liabilities (Millions) | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | | :-------------------------------- | :----------------------- | :-------------------------- | :---------------- | | Total Assets | $30,669 | $30,836 | $(167) | | Total Liabilities | $26,153 | $26,370 | $(217) | | Total Shareholders' Equity | $4,516 | $4,466 | $50 | | Cash and cash equivalents | $1,268 | $1,406 | $(138) | | Fixed maturities, available for sale | $10,489 | $10,398 | $91 | | Unpaid losses and loss adjustment expenses | $13,834 | $14,179 | $(345) | Consolidated Statement of Earnings Net earnings decreased for both periods in 2025 due to lower investment income and higher loss expenses, despite increased earned premiums Consolidated Statement of Earnings (Millions, except EPS) | Metric | Three months ended June 30, 2025 (Millions) | Three months ended June 30, 2024 (Millions) | Six months ended June 30, 2025 (Millions) | Six months ended June 30, 2024 (Millions) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net Earned Premiums | $1,647 | $1,585 | $3,227 | $3,131 | | Net Investment Income | $184 | $188 | $357 | $386 | | Total Revenues | $1,924 | $1,900 | $3,780 | $3,806 | | Losses and Loss Adjustment Expenses | $1,007 | $937 | $1,972 | $1,849 | | Total Costs and Expenses | $1,695 | $1,629 | $3,354 | $3,231 | | Net Earnings | $174 | $209 | $328 | $451 | | Diluted EPS | $2.07 | $2.49 | $3.92 | $5.38 | Consolidated Statement of Comprehensive Income Comprehensive income increased in 2025, driven by net unrealized gains on securities, offsetting lower net earnings Consolidated Statement of Comprehensive Income (Millions) | Metric | Three months ended June 30, 2025 (Millions) | Three months ended June 30, 2024 (Millions) | Six months ended June 30, 2025 (Millions) | Six months ended June 30, 2024 (Millions) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net Earnings | $174 | $209 | $328 | $451 | | Total net unrealized gains (losses) on securities | $40 | $(12) | $101 | $(3) | | Total net unrealized gains (losses) on cash flow hedges | $2 | $2 | $5 | $(3) | | Other comprehensive income (loss), net of tax | $47 | $(16) | $108 | $(12) | | Comprehensive Income | $221 | $193 | $436 | $439 | Consolidated Statement of Changes in Equity Shareholders' equity increased due to net earnings and comprehensive income, partially offset by dividends and share repurchases Consolidated Statement of Changes in Equity (Millions) | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------------- | :----------------------- | :-------------------------- | | Total Shareholders' Equity | $4,516 | $4,466 | | Net Earnings (Six months) | $328 | $328 (from Dec 31, 2024 to June 30, 2025) | | Other Comprehensive Income (Six months) | $108 | $108 (from Dec 31, 2024 to June 30, 2025) | | Dividends Paid (Six months) | $(302) | $(302) (from Dec 31, 2024 to June 30, 2025) | | Shares Acquired and Retired (Six months) | $(97) | $(97) (from Dec 31, 2024 to June 30, 2025) | Consolidated Statement of Cash Flows Operating cash flow significantly increased in 2025, while financing cash outflow rose due to share repurchases and managed investment entity liabilities Consolidated Statement of Cash Flows (Millions) | Activity | Six months ended June 30, 2025 (Millions) | Six months ended June 30, 2024 (Millions) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | $533 | $19 | | Net cash provided by (used in) investing activities | $59 | $(6) | | Net cash used in financing activities | $(730) | $(117) | | Net Change in Cash and Cash Equivalents | $(138) | $(104) | | Cash and cash equivalents at end of period | $1,268 | $1,121 | Notes to Consolidated Financial Statements This section details AFG's accounting policies, segment reporting, investments, derivatives, debt, equity, taxes, and insurance reserves A. Accounting Policies This section outlines AFG's critical accounting policies, including fair value measurements, goodwill, and consolidation of managed investment entities - AFG consolidates variable interest entities (VIEs) like CLOs where it is the primary beneficiary, electing the fair value option for CLO assets and liabilities to enhance transparency383940 - Goodwill is not amortized but is subject to an annual impairment test, which can be qualitative if the fair value is likely to exceed the carrying amount33 - Fixed maturity securities are classified as 'available for sale' (fair value to AOCI) or 'trading' (fair value to net investment income)2224 B. Segments of Operations AFG operates in P&C insurance (Property and transportation, Specialty casualty, Specialty financial) and Other segments, with performance evaluated by return on equity and underwriting profit - AFG's Property and Casualty insurance business is segmented into Property and transportation, Specialty casualty, and Specialty financial57 - Beginning in 2025, internal reinsurance results are included within the ceding sub-segments for consistent performance evaluation by CODMs59 Segment Assets (Millions) | Segment | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Property and casualty insurance | $26,089 | $25,913 | | Other | $4,580 | $4,923 | | Total assets | $30,669 | $30,836 | Segment Revenues (Three Months Ended June 30, Millions) | Segment | 2025 | 2024 | | :-------------------------- | :--- | :--- | | Property and casualty insurance | $1,826 | $1,776 | | Other | $96 | $126 | | Total revenues | $1,924 | $1,900 | Segment Earnings Before Income Taxes (Three Months Ended June 30, Millions) | Segment | 2025 | 2024 | | :-------------------------- | :--- | :--- | | Property and casualty insurance | $273 | $319 | | Other | $(46) | $(46) | | Total earnings before income taxes | $229 | $271 | C. Fair Value Measurements AFG classifies fair value measurements into a three-level hierarchy, with Level 3 assets representing approximately 7% of total fair value assets - AFG's Level 3 assets, representing approximately 7% of total assets carried at fair value at June 30, 2025, are primarily valued using internally developed prices (85% of Level 3 assets), with the significant unobservable input being the credit spread in discounted cash flow models74 Total Assets Accounted for at Fair Value (Millions) | Level | June 30, 2025 | December 31, 2024 | | :---- | :------------ | :---------------- | | Level 1 | $1,011 | $1,023 | | Level 2 | $13,137 | $13,247 | | Level 3 | $1,062 | $1,096 | | Total | $15,210 | $15,366 | Total Liabilities Accounted for at Fair Value (Millions) | Level | June 30, 2025 | December 31, 2024 | | :---- | :------------ | :---------------- | | Level 1 | $346 | $402 | | Level 2 | $3,335 | $3,571 | | Level 3 | $12 | $12 | | Total | $3,693 | $3,985 | D. Investments AFG's investment portfolio, primarily fixed maturities, shows $270 million in gross unrealized losses, while net investment income decreased due to lower alternative investment returns Available for Sale Fixed Maturities (June 30, 2025, Millions) | Category | Amortized Cost | Allowance for Expected Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | | :-------------------------------- | :------------- | :----------------------------------- | :--------------------- | :---------------------- | :--------- | | Total fixed maturities | $10,632 | $15 | $142 | $(270) | $10,489 | - At June 30, 2025, gross unrealized losses on fixed maturities totaled $270 million across approximately 1,100 securities, with 96% being investment grade9396 - Management believes AFG will recover its cost basis and has no intent to sell these securities96 Net Investment Income (Millions) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Gross investment income | $190 | $193 | $370 | $397 | | Investment expenses | $(6) | $(5) | $(13) | $(11) | | Net investment income | $184 | $188 | $357 | $386 | E. Derivatives AFG uses derivatives, mainly interest rate swaps, for risk mitigation, reporting net gains of $14 million in Q2 2025 - AFG's interest rate swaps, designated as highly effective cash flow hedges, had a total outstanding notional amount of $768 million at June 30, 2025, down from $1.05 billion at December 31, 2024, reflecting scheduled amortization and one new swap108 Fair Value of Derivative Assets and Liabilities (Millions) | Derivative Type | June 30, 2025 (Asset) | June 30, 2025 (Liability) | December 31, 2024 (Asset) | December 31, 2024 (Liability) | | :-------------------------------- | :-------------------- | :---------------------- | :------------------------ | :------------------------ | | Interest rate swaps | $1 | $7 | $1 | $14 | | Fixed maturities with embedded derivatives | $75 | — | $81 | — | | Total return swap | $5 | — | — | $4 | | Total | $81 | $7 | $82 | $18 | Earnings (Losses) on Derivatives (Millions) | Period | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Three months ended June 30, | $14 | $(6) | | Six months ended June 30, | $4 | $(8) | F. Managed Investment Entities AFG consolidates thirteen CLOs, with maximum loss exposure limited to its $148 million investment, and formed one new CLO in 6M 2025 - AFG's maximum exposure to economic loss on the CLOs it manages is limited to its investment, which was $148 million at June 30, 2025, including $101 million in subordinate tranches and $30 million in temporary warehousing entities114 - In the first six months of 2025, AFG formed one new CLO ($406 million liabilities) and substantially liquidated another, while in 2024, two new CLOs were formed ($813 million liabilities)115 Progression of Fair Value of AFG's Investment in CLO Tranches (Millions) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Balance at beginning of period | $122 | $201 | $175 | $177 | | Purchases | $40 | $45 | $75 | $84 | | Sales | $(9) | $(81) | $(88) | $(100) | | Distributions | $(7) | $(15) | $(18) | $(25) | | CLO earnings attributable to AFG | $2 | $9 | $4 | $23 | | Balance at end of period | $148 | $159 | $148 | $159 | G. Goodwill and Other Intangibles Goodwill remained stable at $305 million, while net amortizable intangible assets slightly decreased to $193 million - Goodwill balance remained stable at $305 million in the first six months of 2025120 Amortizable Intangible Assets (Millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Amortizable intangible assets (net) | $193 | $203 | | Accumulated amortization | $69 | $59 | | Amortization of intangibles (Q2) | $5 | $4 | | Amortization of intangibles (6M) | $10 | $9 | H. Long-Term Debt Long-term debt remained stable at $1.476 billion, with no principal payments until 2030 and an undrawn $450 million credit facility Long-Term Debt (Millions) | Category | June 30, 2025 (Carrying Value) | December 31, 2024 (Carrying Value) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Direct Senior Obligations | $819 | $818 | | Direct Subordinated Obligations | $657 | $657 | | Total Long-Term Debt | $1,476 | $1,475 | - AFG has no scheduled principal payments on debt until 2030, when $253 million is due, with the remaining $1.25 billion due thereafter122 - AFG has an undrawn $450 million revolving credit facility expiring in June 2028, with interest rates ranging from 1.00% to 1.75% over a SOFR-based floating rate123 I. Shareholders' Equity Shareholders' equity improved, driven by a significant reduction in AOCI loss due to unrealized gains on securities Accumulated Other Comprehensive Income (Loss) (AOCI) Progression (Millions) | Metric | Beginning Balance (Dec 31, 2024) | Other Comprehensive Income (6M 2025) | Ending Balance (June 30, 2025) | | :-------------------------------- | :------------------------------- | :----------------------------------- | :----------------------------- | | Net unrealized gains (losses) on securities | $(202) | $101 | $(101) | | Net unrealized gains (losses) on cash flow hedges | $(10) | $5 | $(5) | | Foreign currency translation adjustments | $(30) | $2 | $(28) | | Pension and other postretirement plan adjustments | $2 | — | $2 | | Total AOCI | $(240) | $108 | $(132) | Stock-Based Compensation Expense (Millions) | Period | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Second quarter | $5 | $5 | | First six months | $9 | $9 | J. Income Taxes Income tax provision decreased in Q2 and 6M 2025, with a Q2 effective tax rate of 24% influenced by a state tax examination Provision for Income Taxes (Millions) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Earnings before income taxes (EBT) | $229 | $271 | $426 | $575 | | Income taxes at statutory rate (21%) | $48 | $57 | $89 | $121 | | Provision for income taxes | $55 | $62 | $98 | $124 | | Effective Tax Rate | 24% | 23% | 23% | 22% | - In Q2 2025, AFG recorded $7 million in net tax expense related to a pending state income tax examination from a prior subsidiary sale133 - A similar $4 million expense was recorded in Q2 2024 for an IRS settlement133 - The recently enacted One Big Beautiful Bill Act, effective 2025, is not expected to materially impact AFG's future results of operations or financial condition, despite accelerating certain tax deductions134 K. Contingencies No significant changes to previously disclosed contingencies, including insurance reserves for environmental, asbestos, and mass tort claims - No significant changes to contingencies related to insurance reserves for environmental exposures, asbestos, mass tort claims, and occupational injury/disease claims from former operations135 L. Insurance Net liability for losses increased to $9.286 billion, with a $31 million net decrease in prior year claims provision due to favorable development Changes in Liability for Losses and Loss Adjustment Expenses (Millions) | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net liability at beginning of year | $9,222 | $8,799 | | Provision for current period losses and LAE | $2,003 | $1,934 | | Net decrease in prior years claims provision | $(31) | $(85) | | Total losses and LAE incurred | $1,972 | $1,849 | | Total payments for losses and LAE | $(1,898) | $(1,958) | | Net liability at end of period | $9,286 | $8,689 | - The $31 million net decrease in prior year claims provision for 6M 2025 was driven by lower than anticipated losses in crop, aviation, agribusiness, property, inland marine, workers' compensation, financial institutions, trade credit, and surety/fidelity businesses136 - This was partially offset by higher claim severity in excess and surplus and social services136 Allowance for Expected Credit Losses (Millions) | Category | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Recoverables from Reinsurers | $9 | $10 | | Premiums Receivable | $19 | $18 | Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses AFG's financial condition, operations, and cash flows, including critical accounting policies, liquidity, investments, and segment performance Forward-Looking Statements This section cautions that forward-looking statements are subject to risks from economic conditions, market performance, regulatory changes, and natural catastrophes - Forward-looking statements are subject to risks including changes in financial, political, and economic conditions (interest/inflation rates, tariffs, currency, recessions), securities market performance, new legislation, capital availability, insurance law/regulation changes, legal environment, tax/accounting changes, natural catastrophes, cyber-attacks, and insurance loss reserve development142 Overview AFG reported decreased net earnings in Q2 and 6M 2025 due to lower underwriting profit and alternative investment income, but expects continued premium growth Net Earnings and Diluted EPS (Millions, except per share) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :---------------- | :------ | :------ | :------ | :------ | | Net Earnings | $174 | $209 | $328 | $451 | | Diluted EPS | $2.07 | $2.49 | $3.92 | $5.38 | - The decline in 2025 net earnings reflects lower underwriting profit and reduced net investment income from AFG's alternative investment portfolio, partially offset by higher average investment balances and yields on fixed maturity investments149 - Management expects continued premium growth and strong underwriting results in the P&C market, with elevated interest rates positively impacting fixed maturity investment income in 2025150 Critical Accounting Policies AFG's critical accounting policies involve significant judgment in investment valuation, insurance reserves, reinsurance recoverability, and environmental liabilities - Critical accounting policies include valuation of investments and impairment allowances, establishment of insurance reserves (especially asbestos and environmental-related), recoverability of reinsurance, and asbestos/environmental liabilities of former operations153158 Liquidity and Capital Resources AFG maintains strong liquidity and capital, with a stable debt-to-capital ratio and increased operating cash flow, supporting shareholder returns and policyholder obligations Ratios AFG's consolidated debt to total capital ratio remained stable at 24.4% at June 30, 2025 Debt to Total Capital Ratio | Metric | June 30, 2025 | December 31, 2024 | December 31, 2023 | | :-------------------------- | :------------ | :---------------- | :---------------- | | Principal amount of long-term debt | $1,498 | $1,498 | $1,498 | | Total capital | $6,146 | $6,204 | $6,075 | | Ratio of debt to total capital (including subordinated debt) | 24.4% | 24.1% | 24.7% | | Ratio of debt to total capital (excluding subordinated debt) | 13.4% | 13.3% | 13.5% | Condensed Consolidated Cash Flows Operating cash flow significantly increased to $533 million in 6M 2025, while financing cash outflow rose to $730 million due to share repurchases Condensed Consolidated Cash Flows (Millions) | Activity | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $533 | $19 | | Net cash provided by (used in) investing activities | $59 | $(6) | | Net cash used in financing activities | $(730) | $(117) | | Net change in cash and cash equivalents | $(138) | $(104) | - The $272 million increase in operating cash flows in 6M 2025 compared to 6M 2024 was primarily due to the activity of managed investment entities157 - Net cash used in financing activities increased by $613 million in 6M 2025, driven by $97 million in common stock repurchases (vs. none in 2024) and a $539 million increase in net cash used for managed investment entity liabilities161 Parent and Subsidiary Liquidity AFG's parent company maintains strong liquidity with $349 million in cash and an undrawn credit facility, supporting shareholder returns and subsidiary obligations - AFG (parent) held approximately $349 million in cash and investments at June 30, 2025, and has access to an undrawn $450 million revolving credit facility166 - In 6M 2025, AFG repurchased 782,134 shares for $97 million and paid a special cash dividend of $167 million ($2.00 per share)164 - AFG's insurance subsidiaries maintain sufficient liquidity and capital to pay claims, underwriting expenses, and dividends to the parent, with capital levels adequate to maintain business and rating agency ratings170 Investments AFG's $10.49 billion fixed maturity portfolio, 95% investment grade, is sensitive to interest rates and holds $270 million in recoverable unrealized losses - AFG's investment portfolio at June 30, 2025, included $10.49 billion in available-for-sale fixed maturities, $82 million in trading fixed maturities, $800 million in equity securities, and $2.34 billion in equity method investments171 Sensitivity of Fixed Maturity Portfolio to Interest Rate Changes (Millions) | Metric | Value | | :---------------------------------------- | :------ | | Fair value of fixed maturity portfolio | $10,571 | | Percentage impact of 100 bps increase in interest rates | (3.0%) | | Pretax impact on fair value | $(317) | - Approximately 95% of fixed maturities were rated 'investment grade' at June 30, 2025177 - Gross unrealized losses on fixed maturities totaled $270 million, with 96% of these losses on investment-grade securities177180 - Management believes these losses are recoverable and intends to hold the securities185 Uncertainties The greatest risks of material loss are the adequacy of insurance reserves and contingencies from former railroad and manufacturing operations - The greatest risks of material loss are the adequacy of insurance reserves and contingencies from former railroad and manufacturing operations186 Managed Investment Entities AFG consolidates managed CLOs, impacting financial statements by eliminating direct investments and management fees to show full CLO assets and liabilities - AFG consolidates its managed CLO entities, which are variable interest entities where AFG owns an interest189 - The 'Consol. Entries' in the financial statements eliminate AFG's investment in CLOs and related accrued interest191 Condensed Consolidating Balance Sheet Impact (June 30, 2025, Millions) | Category | Before CLO Consolidation | Managed Investment Entities | Consolidation Entries | Consolidated As Reported | | :-------------------------------- | :----------------------- | :-------------------------- | :-------------------- | :----------------------- | | Cash and investments | $16,197 | — | $(148) | $16,049 | | Assets of managed investment entities | — | $3,833 | — | $3,833 | | Liabilities of managed investment entities | — | $3,803 | $(118) | $3,685 | | Total Assets | $26,984 | $3,833 | $(148) | $30,669 | | Total Liabilities | $22,468 | $3,803 | $(118) | $26,153 | Condensed Consolidating Statement of Earnings Impact (Q2 2025, Millions) | Category | Before CLO Consolidation | Managed Investment Entities | Consolidation Entries | Consolidated As Reported | | :-------------------------------- | :----------------------- | :-------------------------- | :-------------------- | :----------------------- | | Net investment income | $186 | — | $(2) | $184 | | Income of managed investment entities: Investment income | — | $68 | — | $68 | | Income of managed investment entities: Gain (loss) on change in fair value of assets/liabilities | — | $(4) | — | $(4) | | Other income | $29 | — | $(2) | $27 | | Expenses of managed investment entities | — | $68 | $(8) | $60 | | Net Earnings | $174 | | | $174 | Results of Operations AFG's net earnings and core operating earnings declined in Q2 and 6M 2025 due to lower underwriting profit and alternative investment income General Net earnings and diluted EPS decreased in Q2 and 6M 2025, primarily due to lower underwriting profit and alternative investment income Net Earnings and Core Net Operating Earnings (Millions, except per share) | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net Earnings | $174 | $209 | $328 | $451 | | Core Net Operating Earnings | $179 | $215 | $331 | $446 | | Diluted EPS (Net Earnings) | $2.07 | $2.49 | $3.92 | $5.38 | | Diluted EPS (Core Net Operating Earnings) | $2.14 | $2.56 | $3.96 | $5.32 | - The decrease in net earnings for Q2 and 6M 2025 was primarily due to lower core net operating earnings, reflecting reduced underwriting profit and lower net investment income from AFG's alternative investment portfolio, partially offset by higher investment income outside of alternative investments204205 Results of Operations — Second Quarter Q2 2025 pretax earnings decreased 14% due to lower underwriting profit and alternative investment income, with the combined ratio rising to 93.1% P&C Segment Key Financials (Q2, Millions) | Metric | 2025 | 2024 | % Change | | :-------------------------------- | :--- | :--- | :------- | | Gross written premiums | $2,653 | $2,406 | 10% | | Net written premiums | $1,803 | $1,692 | 7% | | Net earned premiums | $1,647 | $1,585 | 4% | | Underwriting gain | $113 | $150 | (25%) | | Net investment income | $179 | $189 | (5%) | | Earnings before income taxes | $273 | $319 | (14%) | P&C Segment Combined Ratios (Q2) | Metric | 2025 | 2024 | Change | | :-------------------------------- | :--- | :--- | :----- | | Loss and LAE ratio | 61.1% | 59.1% | 2.0% | | Underwriting expense ratio | 32.0% | 31.4% | 0.6% | | Combined ratio | 93.1% | 90.5% | 2.6% | Segmented Statement of Earnings (Q2) P&C segment contributed $218 million to core net operating earnings, while the Holding Company segment incurred a $(39) million loss Core Net Operating Earnings by Segment (Q2, Millions) | Segment | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Property and Casualty Insurance | $218 | $252 | | Holding Co., other and unallocated | $(39) | $(37) | | Total Core Net Operating Earnings | $179 | $215 | Property and Casualty Insurance Segment — Results of Operations (Q2) P&C pretax earnings decreased 14% to $273 million, with underwriting profit down 25% and combined ratio up to 93.1% Gross Written Premiums (Q2) P&C gross written premiums increased 10% to $2.65 billion, driven by crop reporting and business growth, with 6% renewal rate increases Gross Written Premiums by Sub-segment (Q2, Millions) | Sub-segment | 2025 GWP | 2024 GWP | % Change | | :-------------------------- | :------- | :------- | :------- | | Property and transportation | $1,247 | $1,084 | 15% | | Specialty casualty | $1,062 | $1,023 | 4% | | Specialty financial | $344 | $299 | 15% | | Total | $2,653 | $2,406 | 10% | - Excluding the crop business, gross written premiums increased 6% in Q2 2025, reflecting new business, a good renewal rate environment, and increased exposures222 - Overall average renewal rates increased approximately 6%224 Reinsurance Premiums Ceded (Q2) Reinsurance premiums ceded increased to 32% of GWP, driven by higher cessions in crop, alternative risk transfer, and excess/M&A liability Reinsurance Premiums Ceded by Sub-segment (Q2, Millions) | Sub-segment | 2025 Ceded | % of GWP | 2024 Ceded | % of GWP | Change in % of GWP | | :-------------------------- | :--------- | :--------- | :--------- | :--------- | :------------------- | | Property and transportation | $(488) | 39% | $(394) | 36% | 3% | | Specialty casualty | $(297) | 28% | $(270) | 26% | 2% | | Specialty financial | $(65) | 19% | $(50) | 17% | 2% | | Total | $(850) | 32% | $(714) | 30% | 2% | Net Written Premiums (Q2) P&C net written premiums increased 7% to $1.80 billion, with Property and transportation and Specialty financial showing strong growth Net Written Premiums by Sub-segment (Q2, Millions) | Sub-segment | 2025 NWP | % | 2024 NWP | % | % Change | | :-------------------------- | :------- | :-- | :------- | :-- | :------- | | Property and transportation | $759 | 42% | $690 | 41% | 10% | | Specialty casualty | $765 | 42% | $753 | 44% | 2% | | Specialty financial | $279 | 16% | $249 | 15% | 12% | | Total | $1,803 | 100% | $1,692 | 100% | 7% | Net Earned Premiums (Q2) P&C net earned premiums increased 4% to $1.65 billion, with Specialty financial leading growth at 12% Net Earned Premiums by Sub-segment (Q2, Millions) | Sub-segment | 2025 NEP | % NEP | 2024 NEP | % NEP | % Change | | :-------------------------- | :------- | :------ | :------- | :------ | :------- | | Property and transportation | $576 | 35% | $552 | 35% | 4% | | Specialty casualty | $799 | 48% | $791 | 50% | 1% | | Specialty financial | $272 | 17% | $242 | 15% | 12% | | Total | $1,647 | 100% | $1,585 | 100% | 4% | Combined Ratio (Q2) The Specialty combined ratio increased to 93.1%, leading to a 25% decrease in underwriting profit, despite stable catastrophe losses Combined Ratios and Underwriting Profit by Sub-segment (Q2) | Sub-segment | 2025 Combined Ratio | 2024 Combined Ratio | Change | 2025 Underwriting Profit (Millions) | 2024 Underwriting Profit (Millions) | | :-------------------------- | :------------------ | :------------------ | :----- | :---------------------------------- | :---------------------------------- | | Property and transportation | 95.2% | 92.7% | 2.5% | $27 | $40 | | Specialty casualty | 93.9% | 89.1% | 4.8% | $49 | $86 | | Specialty financial | 86.1% | 89.7% | (3.6%) | $38 | $25 | | Total Specialty | 93.1% | 90.5% | 2.6% | $114 | $151 | - Overall catastrophe losses were $38 million (2.3 points on the combined ratio) in Q2 2025, comparable to $36 million (2.3 points) in Q2 2024230249 Losses and Loss Adjustment Expenses (Q2) The loss and LAE ratio increased to 61.1%, with favorable prior year reserve development significantly decreasing due to higher claim severity Losses and LAE Ratios (Q2) | Metric | 2025 Ratio | 2024 Ratio | Change in Ratio | | :-------------------------------- | :--------- | :--------- | :-------------- | | Current year, excluding catastrophe losses | 59.5% | 59.1% | 0.4% | | Prior accident years development | (0.7%) | (2.3%) | 1.6% | | Current year catastrophe losses | 2.3% | 2.3% | —% | | Aggregate losses and LAE ratio | 61.1% | 59.1% | 2.0% | - Net favorable prior year reserve development for Specialty P&C operations decreased by $24 million (67%) to $12 million in Q2 2025, compared to $36 million in Q2 2024243 - Specialty casualty experienced net adverse reserve development of $10 million in Q2 2025 due to higher claim severity in excess and surplus and social services businesses245 Commissions and Other Underwriting Expenses (Q2) Underwriting expenses increased 6% to $527 million, with the expense ratio rising to 32.0% due to higher IT costs and commission rates Underwriting Expenses and Ratios by Sub-segment (Q2, Millions) | Sub-segment | 2025 U/W Exp | % of NEP | 2024 U/W Exp | % of NEP | Change in % of NEP | | :-------------------------- | :----------- | :--------- | :----------- | :--------- | :------------------- | | Property and transportation | $162 | 28.0% | $161 | 29.0% | (1.0%) | | Specialty casualty | $234 | 29.4% | $222 | 28.1% | 1.3% | | Specialty financial | $131 | 48.0% | $115 | 47.6% | 0.4% | | Total | $527 | 32.0% | $498 | 31.4% | 0.6% | - Increased costs for software and other expenses related to IT security, customer experience, and data analytics initiatives contributed to higher underwriting expenses across segments252253254 Property and Casualty Net Investment Income (Q2) P&C net investment income decreased 5% to $179 million, primarily due to a 76% drop in alternative investment returns P&C Net Investment Income (Q2, Millions) | Metric | 2025 | 2024 | Change | % Change | | :-------------------------------- | :--- | :--- | :----- | :------- | | Net investment income, excluding alternative investments | $171 | $156 | $15 | 10% | | Alternative investments | $8 | $33 | $(25) | (76%) | | Total net investment income | $179 | $189 | $(10) | (5%) | - The annualized return on alternative investments was 1.2% in Q2 2025, down from 5.1% in Q2 2024, impacted by reduced fair value of multi-family investments due to new apartment supply255257 Property and Casualty Other Income and Expenses, Net (Q2) P&C net other expenses slightly decreased to $19 million, driven by lower interest expense on funds withheld P&C Other Income and Expenses, Net (Q2, Millions) | Metric | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Other income | $0 | $2 | | Amortization of intangibles | $5 | $4 | | Interest expense on funds withheld | $12 | $13 | | Other expenses | $2 | $5 | | Other income and expenses, net | $(19) | $(20) | Holding Company, Other and Unallocated — Results of Operations (Q2) This segment reported a consistent $46 million pretax loss, with decreased net investment income offset by increased other income from real estate sales Holding Company, Other and Unallocated Pretax Loss (Q2, Millions) | Metric | 2025 | 2024 | % Change | | :-------------------------------- | :--- | :--- | :------- | | Net investment income | $7 | $8 | (13%) | | Other income — P&C fees | $23 | $24 | (4%) | | Other income | $6 | $4 | 50% | | Total revenues | $36 | $36 | —% | | Costs and expenses, excluding interest charges | $63 | $63 | —% | | Interest charges on borrowed money | $19 | $19 | —% | | Loss before income taxes, excluding realized gains and losses | $(46) | $(46) | —% | - Other income increased by $3 million (300%) in Q2 2025, reflecting income from the sale of certain real estate assets264 Holding Company and Other — Net Investment Income (Q2) Net investment income for this segment decreased 13% to $7 million due to lower average investments - Net investment income for the Holding Company and Other segment decreased by $1 million (13%) to $7 million in Q2 2025, primarily due to a decrease in average investments260 Holding Company and Other — P&C Fees and Related Expenses (Q2) P&C fees collected and related expenses remained stable at $23 million and $16 million, respectively - AFG collected $23 million in P&C fees in Q2 2025 (vs. $24 million in Q2 2024) for services like underwriting, policy administration, claims, workplace safety, and premium financing261 - Related expenses were $16 million in both periods261 Holding Company and Other — Other Income (Q2) Other income for this segment increased 300% to $4 million, primarily from real estate asset sales - Excluding consolidated CLO management fees, other income for the Holding Company and Other segment increased by $3 million (300%) to $4 million in Q2 2025, driven by income from real estate asset sales264 Holding Company and Other — Other Expenses (Q2) Other expenses for this segment increased slightly by $1 million (3%) to $40 million - Other expenses for the Holding Company and Other segment increased by $1 million (3%) to $40 million in Q2 2025265 Holding Company and Other — Interest Charges on Borrowed Money (Q2) Interest charges on borrowed money remained stable at $19 million in Q2 2025 - Interest charges on borrowed money for the Holding Company and Other segment remained stable at $19 million in Q2 2025 and Q2 2024266 Realized Gains (Losses) on Securities (Q2) AFG reported $2 million in net realized gains on securities, a $4 million improvement, driven by equity securities fair value changes Realized Gains (Losses) on Securities (Q2, Millions) | Metric | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Realized gains (losses) before impairment allowances: Disposals | $(8) | $(1) | | Realized gains (losses) before impairment allowances: Change in fair value of equity securities | $10 | $(1) | | Realized gains (losses) on securities | $2 | $(2) | - The $10 million net realized gain from equity securities in Q2 2025 included gains of $10 million from manufacturing companies and $6 million from banks/financing companies, partially offset by losses in energy, media, and natural gas companies267 Consolidated Income Taxes (Q2) Consolidated income tax provision decreased 11% to $55 million in Q2 2025 - Consolidated provision for income taxes decreased by $7 million (11%) to $55 million in Q2 2025268 Results of Operations — First Six Months 6M 2025 pretax earnings decreased 21% to $519 million, with underwriting profit down 32% and combined ratio up to 93.6% P&C Segment Key Financials (6M, Millions) | Metric | 2025 | 2024 | % Change | | :-------------------------------- | :--- | :--- | :------- | | Gross written premiums | $4,944 | $4,742 | 4% | | Net written premiums | $3,414 | $3,326 | 3% | | Net earned premiums | $3,227 | $3,131 | 3% | | Underwriting gain | $207 | $303 | (32%) | | Net investment income | $349 | $394 | (11%) | | Earnings before income taxes | $519 | $659 | (21%) | P&C Segment Combined Ratios (6M) | Metric | 2025 | 2024 | Change | | :-------------------------------- | :--- | :--- | :----- | | Loss and LAE ratio | 61.1% | 58.9% | 2.2% | | Underwriting expense ratio | 32.5% | 31.4% | 1.1% | | Combined ratio | 93.6% | 90.3% | 3.3% | Segmented Statement of Earnings (6M) P&C segment contributed $411 million to core net operating earnings, while the Holding Company segment incurred an $(80) million loss Core Net Operating Earnings by Segment (6M, Millions) | Segment | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Property and Casualty Insurance | $411 | $522 | | Holding Co., other and unallocated | $(80) | $(76) | | Total Core Net Operating Earnings | $331 | $446 | Property and Casualty Insurance Segment — Results of Operations (6M) P&C pretax earnings decreased 21% to $519 million, with underwriting profit down 32% and combined ratio up to 93.6% Gross Written Premiums (6M) P&C gross written premiums increased 4% to $4.94 billion, driven by crop reporting, new business, and 6% renewal rate increases Gross Written Premiums by Sub-segment (6M, Millions) | Sub-segment | 2025 GWP | % | 2024 GWP | % | % Change | | :-------------------------- | :------- | :-- | :------- | :-- | :------- | | Property and transportation | $2,144 | 43% | $2,043 | 43% | 5% | | Specialty casualty | $2,130 | 43% | $2,120 | 45% | —% | | Specialty financial | $670 | 14% | $579 | 12% | 16% | | Total | $4,944 | 100% | $4,742 | 100% | 4% | - Overall average renewal rates increased approximately 6% in 6M 2025, with Property and transportation at 7% and Specialty casualty (excluding workers' compensation) at 9%282283286 Reinsurance Premiums Ceded (6M) Reinsurance premiums ceded increased to 31% of GWP, driven by growth in alternative risk transfer and crop business Reinsurance Premiums Ceded by Sub-segment (6M, Millions) | Sub-segment | 2025 Ceded | % of GWP | 2024 Ceded | % of GWP | Change in % of GWP | | :-------------------------- | :--------- | :--------- | :--------- | :--------- | :------------------- | | Property and transportation | $(822) | 38% | $(756) | 37% | 1% | | Specialty casualty | $(593) | 28% | $(564) | 27% | 1% | | Specialty financial | $(115) | 17% | $(96) | 17% | —% | | Total | $(1,530) | 31% | $(1,416) | 30% | 1% | Net Written Premiums (6M) P&C net written premiums increased 3% to $3.41 billion, with Specialty financial showing the strongest growth at 15% Net Written Premiums by Sub-segment (6M, Millions) | Sub-segment | 2025 NWP | % | 2024 NWP | % | % Change | | :-------------------------- | :------- | :-- | :------- | :-- | :------- | | Property and transportation | $1,322 | 39% | $1,287 | 39% | 3% | | Specialty casualty | $1,537 | 45% | $1,556 | 47% | (1%) | | Specialty financial | $555 | 16% | $483 | 14% | 15% | | Total | $3,414 | 100% | $3,326 | 100% | 3% | Net Earned Premiums (6M) P&C net earned premiums increased 3% to $3.23 billion, with Specialty financial experiencing 15% growth Net Earned Premiums by Sub-segment (6M, Millions) | Sub-segment | 2025 NEP | % NEP | 2024 NEP | % NEP | % Change | | :-------------------------- | :------- | :------ | :------- | :------ | :------- | | Property and transportation | $1,076 | 33% | $1,072 | 34% | —% | | Specialty casualty | $1,593 | 50% | $1,574 | 50% | 1% | | Specialty financial | $558 | 17% | $485 | 16% | 15% | | Total | $3,227 | 100% | $3,131 | 100% | 3% | Combined Ratio (6M) The Specialty combined ratio increased to 93.6%, resulting in a 32% decrease in underwriting profit, with catastrophe losses rising to $110 million Combined Ratios and Underwriting Profit by Sub-segment (6M) | Sub-segment | 2025 Combined Ratio | 2024 Combined Ratio | Change | 2025 Underwriting Profit (Millions) | 2024 Underwriting Profit (Millions) | | :-------------------------- | :------------------ | :------------------ | :----- | :---------------------------------- | :---------------------------------- | | Property and transportation | 94.0% | 90.6% | 3.4% | $64 | $100 | | Specialty casualty | 95.8% | 90.7% | 5.1% | $69 | $147 | | Specialty financial | 86.5% | 88.1% | (1.6%) | $75 | $58 | | Total Specialty | 93.6% | 90.2% | 3.4% | $208 | $305 | - Overall catastrophe losses increased to $110 million (3.4 points on the combined ratio) in 6M 2025, up from $71 million (2.3 points) in 6M 2024, primarily due to California wildfires and storms290307 Losses and Loss Adjustment Expenses (6M) The loss and LAE ratio increased to 61.1%, with favorable prior year reserve development significantly decreasing due to higher claim severity Losses and LAE Ratios (6M) | Metric | 2025 Ratio | 2024 Ratio | Change in Ratio | | :-------------------------------- | :--------- | :--------- | :-------------- | | Current year, excluding catastrophe losses | 58.7% | 59.3% | (0.6%) | | Prior accident years development | (1.0%) | (2.7%) | 1.7% | | Current year catastrophe losses | 3.4% | 2.3% | 1.1% | | Aggregate losses and LAE ratio | 61.1% | 58.9% | 2.2% | - Net favorable prior year reserve development for Specialty P&C operations decreased by $55 million (63%) to $32 million in 6M 2025, compared to $87 million in 6M 2024302 - Specialty casualty experienced net adverse reserve development of $22 million in 6M 2025 due to higher claim severity in excess and surplus and social services businesses304 Commissions and Other Underwriting Expenses (6M) Underwriting expenses increased 7% to $1.05 billion, with the expense ratio rising to 32.5% due to higher IT costs and commission rates Underwriting Expenses and Ratios by Sub-segment (6M, Millions) | Sub-segment | 2025 U/W Exp | % of NEP | 2024 U/W Exp | % of NEP | Change in % of NEP | | :-------------------------- | :----------- | :--------- | :----------- | :--------- | :------------------- | | Property and transportation | $314 | 29.1% | $315 | 29.4% | (0.3%) | | Specialty casualty | $472 | 29.7% | $442 | 28.1% | 1.6% | | Specialty financial | $262 | 46.9% | $227 | 46.8% | 0.1% | | Total | $1,048 | 32.5% | $984 | 31.4% | 1.1% | - Increased costs for software and other expenses related to IT security, customer experience, and data analytics initiatives contributed to higher underwriting expenses across segments310311312 Property and Casualty Net Investment Income (6M) P&C net investment income decreased 11% to $349 million, primarily due to a 78% drop in alternative investment returns P&C Net Investment Income (6M, Millions) | Metric | 2025 | 2024 | Change | % Change | | :-------------------------------- | :--- | :--- | :----- | :------- | | Net investment income, excluding alternative investments | $329 | $305 | $24 | 8% | | Alternative investments | $20 | $89 | $(69) | (78%) | | Total net investment income | $349 | $394 | $(45) | (11%) | - The annualized return on alternative investments was 1.5% in 6M 2025, down from 7.0% in 6M 2024313 Property and Casualty Other Income and Expenses, Net (6M) P&C net other expenses slightly decreased to $37 million, driven by lower interest expense on funds withheld P&C Other Income and Expenses, Net (6M, Millions) | Metric | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Other income | $3 | $4 | | Amortization of intangibles | $10 | $9 | | Interest expense on funds withheld | $23 | $25 | | Other expenses | $7 | $8 | | Other income and expenses, net | $(37) | $(38) | Holding Company, Other and Unallocated — Results of Operations (6M) This segment reported a $98 million pretax loss, a slight increase, with decreased net investment income and stable P&C fees Holding Company, Other and Unallocated Pretax Loss (6M, Millions) | Metric | 2025 | 2024 | % Change | | :-------------------------------- | :--- | :--- | :------- | | Net investment income | $12 | $15 | (20%) | | Other income — P&C fees | $48 | $60 | (20%) | | Other income | $8 | $8 | —% | | Total revenues | $68 | $83 | (18%) | | Costs and expenses, excluding interest charges | $128 | $141 | (9%) | | Interest charges on borrowed money | $38 | $38 | —% | | Loss before income taxes, excluding realized gains and losses | $(98) | $(96) | 2% | Holding Company and Other — Net Investment Income (6M) Net investment income for this segment decreased 20% to $12 million due to lower average investment balances - Net investment income for the Holding Company and Other segment decreased by $3 million (20%) to $12 million in 6M 2025, due to lower average investment balances318 Holding Company and Other — P&C Fees and Related Expenses (6M) P&C fees collected decreased to $48 million, while related expenses remained stable at $32 million - AFG collected $48 million in P&C fees in 6M 2025 (vs. $60 million in 6M 2024) for services like underwriting, policy administration, and claims319 - Related expenses were $32 million in 6M 2025 (vs. $30 million in 6M 2024)319 Holding Company and Other — Other Income (6M) Other income for this segment increased 50% to $3 million, excluding consolidated CLO management fees - Excluding consolidated CLO management fees, other income for the Holding Company and Other segment increased by $1 million (50%) to $3 million in 6M 2025322 Holding Company and Other — Other Expenses (6M) Other expenses for this segment decreased slightly by $1 million (1%) to $80 million - Other expenses for the Holding Company and Other segment decreased by $1 million (1%) to $80 million in 6M 2025323 Holding Company and Other — Interest Charges on Borrowed Money (6M) Interest charges on borrowed money remained stable at $38 million in 6M 2025 - Interest charges on borrowed money for the Holding Company and Other segment remained stable at $38 million in 6M 2025 and 6M 2024324 Realized Gains (Losses) on Securities (6M) AFG reported $5 million in net realized gains on securities, a $7 million decrease, primarily due to increased impairment allowances Realized Gains (Losses) on Securities (6M, Millions) | Metric | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Realized gains (losses) before impairment allowances: Disposals | $(8) | $(4) | | Realized gains (losses) before impairment allowances: Change in fair value of equity securities | $19 | $19 | | Realized gains (losses) before impairment allowances: Change in fair value of derivatives | $1 | $(1) | | Change in allowance for impairments on securities | $(7) | $(2) | | Realized gains (losses) on securities | $5 | $12 | - The $19 million net realized gain from equity securities in 6M 2025 included gains from manufacturing, banks/financing, and media companies325 Consolidated Income Taxes (6M) Consolidated income tax provision decreased 21% to $98 million in 6M 2025 - Consolidated provision for income taxes decreased by $26 million (21%) to $98 million in 6M 2025326 Recently Adopted Accounting Standards AFG adopted new accounting guidance in Q4 2024, requiring enhanced disclosures on segment expenses and CODM's use of performance measures - New accounting guidance adopted in Q4 2024 requires enhanced disclosures on significant segment expenses, composition of other segment expenses, and how the CODM uses segment profit/loss measures327 Accounting Standards to Be Adopted AFG is evaluating new FASB ASUs on income tax and expense disclosures, not expecting material impact on financial results - ASU 2023-09 (Income Tax Disclosures), effective after December 15, 2024, requires consistent categories and greater disaggregation of income tax information329 - AFG is evaluating its impact on disclosures329 - ASU 2024-03 (Disaggregation of Income Statement Expenses), effective after December 15, 2026, requires additional information and disaggregation of specified expense categories330 - AFG is evaluating its impact on disclosures330 - Both ASU 2023-09 and ASU 2024-03 are disclosure-only standards and are not expected to impact AFG's results of operations or financial condition329330 Item 3 — Quantitative and Qualitative Disclosure about Market Risk No material changes to market risk disclosures, with fixed maturity portfolio sensitive to interest rate changes (3.0% impact for 100 bps increase) - No material changes to market risk disclosures as of June 30, 2025331 Sensitivity of Fixed Maturity Portfolio to Interest Rate Changes (Millions) | Metric | Value | | :---------------------------------------- | :------ | | Fair value of fixed maturity portfolio | $10,571 | | Percentage impact of 100 bps increase in interest rates | (3.0%) | | Pretax impact on fair value | $(317) | Item 4 — Controls and Procedures AFG's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - AFG's disclosure controls and procedures were effective as of June 30, 2025334 - No material changes in AFG's internal control over financial reporting during Q2 2025, despite routine enhancements to information systems334335 Part II — Other Information This section covers unregistered sales of equity securities, other information, and a list of exhibits filed with the Form 10-Q Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds AFG repurchased 782,134 shares for $97 million in 6M 2025, with 4.9 million shares remaining for repurchase Issuer Purchases of Equity Securities (2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :---------------- | :----------------------------- | :--------------------------- | | First quarter | 462,398 | $123.86 | | April | 158,899 | $118.75 | | May | 94,152 | $122.04 | | June | 66,685 | $122.93 | | Total (6M) | 782,134 | $122.53 | - As of June 30, 2025, 4,946,876 shares remained available for repurchase under the plan authorized by AFG's Board of Directors in May 2021336 - AFG acquired 42,809 shares in Q1 2025 and 141 shares in June 2025 in connection with its stock incentive plans337 Item 5 — Other Information No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025 - No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025338 Item 6 — Exhibits This section lists exhibits filed with the Form 10-Q, including SOX certifications and XBRL documents - Exhibits include certifications from Co-CEOs and CFO under Sarbanes-Oxley Act Sections 302(a) and 906, and various XBRL documents (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase, and Cover Page Interactive Data File)340 Signature The report was signed by Brian S. Hertzman, Senior Vice President and CFO, on August 7, 2025 - The report was signed by Brian S. Hertzman, Senior Vice President and Chief Financial Officer, on August 7, 2025343