AMERICAN FINANCIAL GROUP INCAFG

AMERICAN FINANCIAL GROUP INC Goodwill & Intangibles Disclosure

10-KFiled Feb 25, 20262 min read
Goodwill and Other Intangibles
Changes in the carrying value of goodwill are presented in the following table (in millions):
Balance at December 31, 2023 and 2024$305 
Purchase of Radion
22 
Balance at December 31, 2025
$327 

AFG recorded a goodwill impairment charge of $26 million in 2023 related to its investment in Verikai (included in the property and casualty insurance segment). The impairment indicator was slower than anticipated growth in the business supported by the Verikai technology relative to what was projected at acquisition. Management utilized the discounted cash flow method of the income approach to calculate the impairment charge. This charge and the impact of reducing the fair value of the contingent consideration related to the Verikai acquisition (see Note D — “Fair Value Measurements”) are included in realized gains (losses) on subsidiaries in AFG’s Statement of Earnings.

Included in other assets in AFG’s Balance Sheet is $189 million at December 31, 2025 and $203 million at December 31, 2024 of amortizable intangible assets related to acquisitions. These amounts are net of accumulated amortization of $75 million and $59 million, respectively. Amortization of intangibles was $20 million in both 2025 and 2024 and $15 million in 2023. In 2025, AFG wrote off $2 million of amortizable intangible assets that became obsolete in connection with certain changes in AFG’s business (included in realized gains (losses) on subsidiaries in AFG’s Statement of Earnings).

Future amortization of intangibles (weighted average amortization period of 5 years) is estimated to be $20 million per year in 2026, $22 million in 2027, $19 million in 2028, $18 million in 2029, $17 million in 2030 and $93 million thereafter.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 25, 2025
2023Feb 23, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Feb 25, 2021
2019Feb 25, 2020
2018Feb 26, 2019
2017Feb 23, 2018
2016Feb 24, 2017
2015Feb 26, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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