AMERICAN FINANCIAL GROUP INC 10-Q

Financial Statements (unaudited)

ITEM 1. — FINANCIAL STATEMENTS AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (UNAUDITED) (Dollars in Millions) June 30, 2026 December 31, 2025 Assets: Cash and cash equivalents $ 1,438 $ 1,727 Investments: Fixed maturities, available for sale at fair value (amortized cost — $ 11,425 and $ 11,101 ; allowance for expected credit losses of $ 25 and $ 21 ) 11,258 11,052 Fixed maturities, trading at fair value 80 91 Equity securities, at fair value 779 785 Investments accounted for using the equity method 2,437 2,421 Mortgage loans 920 947 Real estate and other investments 157 159 Total cash and investments 17,069 17,182 Recoverables from reinsurers 5,267 5,528 Prepaid reinsurance premiums 1,375 1,089 Agents’ balances and premiums receivable 2,046 1,641 Deferred policy acquisition costs 366 333 Assets of managed investment entities 4,142 4,050 Other receivables 1,117 1,212 Other assets 1,325 1,280 Goodwill 327 327 Total assets $ 33,034 $ 32,642 Liabilities and Equity: Unpaid losses and loss adjustment expenses $ 14,842 $ 15,094 Unearned premiums 4,297 3,736 Payable to reinsurers 1,133 1,195 Liabilities of managed investment entities 3,993 3,907 Long-term debt 1,821 1,820 Other liabilities 2,127 2,070 Total liabilities 28,213 27,822 Shareholders’ equity: Common Stock, no par value — 200,000,000 shares authorized — 82,916,648 and 83,422,202 shares outstanding 83 83 Capital surplus 1,434 1,430 Retained earnings 3,446 3,357 Accumulated other comprehensive income (loss), net of tax ( 142 ) ( 50 ) Total shareholders’ equity 4,821 4,820 Total liabilities and shareholders’ equity $ 33,034 $ 32,642 2 Table of Contents AMERICAN FINANCIAL GROUP, INC. 10-Q AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED) (In Millions, Except Per Share Data) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Revenues: Net earned premiums $ 1,694 $ 1,647 $ 3,303 $ 3,227 Net investment income 221 184 408 357 Realized gains (losses) on securities 16 2 ( 2 ) 5 Income of managed investment entities: Investment income 69 68 136 144 Gain (loss) on change in fair value of assets/liabilities 1 ( 4 ) ( 19 ) ( 7 ) Other income 29 27 58 54 Total revenues 2,030 1,924 3,884 3,780 Costs and Expenses: Losses and loss adjustment expenses 1,000 1,007 1,906 1,972 Commissions and other underwriting expenses 560 534