American Financial (US:AFG)2025-11-06 18:46Financial Performance - Net earned premiums for the three months ended September 30, 2025, were $2,013 million, a decrease of 2.0% compared to $2,055 million for the same period in 2024[9] - Net earnings for the three months ended September 30, 2025, were $215 million, an increase of 18.8% from $181 million in the same period of 2024[10] - Earnings per share for the three months ended September 30, 2025, were $2.58, up from $2.16 in the same period of 2024, marking a 19.5% increase[9] - Total revenues for Q3 2025 were $2,331 million, a slight decrease of 1.6% compared to $2,369 million in Q3 2024[63] - Total revenues for the nine months ended September 30, 2025, were $6,111 million, a decrease of 1.0% from $6,175 million in the same period of 2024[63] - Net earnings for the nine months ended September 30, 2025, were $543 million, a decrease of 14.1% compared to $632 million in 2024[16] - Earnings before income taxes (EBT) for Q3 2025 was $268 million, compared to $229 million in Q3 2024, reflecting an increase of 17%[133] Assets and Liabilities - Total assets increased to $33,834 million as of September 30, 2025, up from $30,836 million at December 31, 2024, representing a growth of 9.7%[7] - Total liabilities increased to $29,104 million as of September 30, 2025, compared to $26,370 million at December 31, 2024, indicating an increase of 10.4%[7] - Shareholders' equity rose to $4,730 million as of September 30, 2025, compared to $4,466 million at December 31, 2024, reflecting a growth of 5.9%[7] - The balance of recoverables from reinsurers was $5,565 million as of September 30, 2025, compared to $5,176 million at the end of 2024[139] - The net liability for losses and LAE at the end of Q3 2025 was $9,708 million, an increase from $9,221 million at the end of Q3 2024[136] Investment Income - Net investment income rose to $205 million for the three months ended September 30, 2025, compared to $200 million in the same period of 2024, reflecting a 2.5% increase[9] - The company reported a gross investment income of $211 million for the three months ended September 30, 2025, compared to $206 million for the same period in 2024[102] - The company reported a net investment income of $27 million for the nine months ended September 30, 2025, compared to $34 million for the same period in 2024[86] Dividends - The company declared dividends of $0.80 per share for the three months ended September 30, 2025, compared to $0.71 per share in the same period of 2024[11] - The company paid dividends of $4.40 per share in 2025, totaling $368 million, compared to $4.63 per share totaling $387 million in 2024, indicating a decrease in total dividends paid[14] Underwriting and Claims - Underwriting profit for the property and casualty insurance segment increased to $138 million in Q3 2025, up 20.0% from $115 million in Q3 2024[66] - Losses and loss adjustment expenses for the property and casualty insurance segment were $1,355 million in Q3 2025, a decrease of 5.2% from $1,430 million in Q3 2024[66] - Total losses and loss adjustment expenses (LAE) incurred for the first nine months of 2025 were $3,327 million, slightly up from $3,279 million in the same period of 2024[136] Cash Flow - The company reported a net cash provided by operating activities of $749 million for the nine months ended September 30, 2025, compared to $478 million for the same period in 2024, representing a 56.6% increase[16] - The company reported a net cash used in investing activities of $(71) million, a decrease from $116 million in 2024[16] - The net cash used in financing activities decreased to $242 million in 2025 from $497 million in 2024, indicating a reduction of 51.3%[16] Fair Value Measurements - Total assets accounted for at fair value as of September 30, 2025, amounted to $15,374 million, with Level 3 assets representing approximately 7% of this total[74] - Total liabilities accounted for at fair value as of September 30, 2025, were $3,840 million[74] - Level 3 assets experienced a balance of $1,004 million as of September 30, 2025, after accounting for various gains and losses[79] Acquisitions - In the third quarter of 2025, AFG acquired 52% of Radion Insurance Holdings, LLC for $7 million, resulting in $5 million of amortizing intangible assets and $22 million in goodwill[56] - The company recognized a $3 million realized gain from the remeasurement of its existing investment in Radion at fair value upon acquisition[56] Other Comprehensive Income - Other comprehensive income for Q3 2025 was $59 million, compared to $195 million in Q3 2024[10] - The accumulated other comprehensive income (AOCI) ending balance for the quarter ended September 30, 2025, was $(73) million, reflecting net unrealized gains and losses on securities and cash flow hedges[128]