American Financial Group, Inc. · NYSE:AFG
American Financial — Q3 2023 Earnings Presentation
11 slides from American Financial's earnings presentation, Nov 2, 2023
Slide 1: Review of Third Quarter 2023
Review of Third Quarter 2023 November 2, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements made during this call, as well as included in this document, are not historical facts and may be considered “forward- looking statements” and are based on estimates, assumptions and projections which management believes are reasonable, but by their natur
Slide 3: 2023 Third Quarter Consolidated Results
2023 Third Quarter Consolidated Results Dollars in millions, except per share data Three Months Ended September 30, 2023 2022 P&C Insurance Segment $ 298 $ 289 Interest & other corporate expenses (41) (45) Pretax Core Operating Earnings 257 244 Related income taxes 49 52 Core Net Operating Earnings
Slide 4: 2023 Third Quarter Consolidated Results (continued)
2023 Third Quarter Consolidated Results (continued) Dollars in millions, except per share data Three Months Ended September 30, 2023 (Per Share) Core Net Operating Earnings $ 208 $ 2.45 Non-core Items After-tax net realized losses1 (19) (0.21) Special A&E charges (12) (0.15) Net Earnings $ 177 $ 2.0
Slide 5: Investments
Investments • Total carrying value of AFG’s investment portfolio at September 30, 2023 = $14.8 billion • P&C net investment income up 17% YOY in the third quarter; up 33% YOY excluding alternative investments • Third quarter 2023 annualized return of 4.2% on AFG’s $2.4 billion of alternative investm
Slide 6: AFG Investment Portfolio
AFG Investment Portfolio As of September 30, 2023 Fixed Maturities Portfolio – 93% investment grade P&C Fixed Maturities Portfolio – 96% NAIC 1 & 2 Fixed Maturities 68% Asset-backed 23% Cash and Equivalents Corporates Foreign 8% 29% Government 3% Mortgage US Loans Commercial MBS Government 4% 1% 2%
Slide 7: Strong Financial Position
Strong Financial Position Dollars in millions, except per share data Sept 30, 2023 Dec 31, 2022 Principal amount of long-term debt $ 1,498 $ 1,521 Capital Management Above target levels for all rating agencies Adjusted shareholders' equity1 4,536 4,578 Excess capital approximately $660 million a
Slide 8: Property & Casualty Results
Property & Casualty Results Three Months Ended Dollars in millions September 30, 2023 2022 Change1 Specialty Gross Written Premiums $ 3,140 $ 3,153 -% Specialty Net Written Premiums $ 2,061 $ 1,984 4% P&C Insurance Operating Earnings $ 298 $ 289 3% Specialty P&C Underwriting Profit $ 143 $ 158 (9%)
Slide 9: Specialty P&C Group
Specialty P&C Group Dollars in millions Net Written Premiums Combined Ratio Three Months Ended Three Months Ended September 30, September 30, 2023 2022 Change 2023 2022 Property & Transportation $ 905 $ 959 (6%) 94.8% 95.4% Specialty Casualty $ 829 $ 777 7% 89.4% 82.6% Specialty Casualty Excluding W
Slide 10: 2023 Outlook
2023 Outlook AFG’s 2023 core net operating earnings guidance of $10.15 - $11.15 per share, producing a core return on equity at the midpoint of approximately 20%1 Updated August Guidance1 Guidance NWP Combined NWP Combined 2022 Growth Ratio Growth Ratio Actual Specialty P&C Group Overall 6% – 8% 90%
Slide 11: Review of Third Quarter 2023
Review of Third Quarter 2023 November 2, 2023
American Financial Group — Q3 2023 Earnings Presentation on 6ix