American Financial Group, Inc. · NYSE:AFG
American Financial — Q1 2023 Earnings Presentation
13 slides from American Financial's earnings presentation, May 3, 2023
Slide 1: Review of First Quarter 2023
Review of First Quarter 2023 May 3, 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 First Quarter Consolidated Results
2023 First Quarter Consolidated Results Dollars in millions, except per share data Three Months Ended March 31, 2023 2022 P&C Insurance Segment $ 350 $ 422 Interest & other corporate expenses (42) (44) Pretax Core Operating Earnings 308 378 Related income taxes 61 75 Core Net Operating Earnings $ 24
Slide 4: 2023 First Quarter Consolidated Results (continued)
2023 First Quarter Consolidated Results (continued) Dollars in millions, except per share data Three Months Ended March 31, 2023 (Per Share) Core Net Operating Earnings $ 247 $ 2.89 Non-core Items After-tax net realized losses on securities1 (37) (0.42) Gain on retirement of debt 2 0.02 Net Earnings
Slide 5: Investments
Investments • Total carrying value of AFG’s investment portfolio at March 31, 2023 = $14.5 billion • First quarter after-tax net realized losses on securities of $37 million – includes $18 million in after-tax net realized losses to adjust equity securities that the company continued to own at March
Slide 6: AFG Investment Portfolio
AFG Investment Portfolio As of March 31, 2023 Fixed Maturities Portfolio – 93% investment grade P&C Fixed Maturities Portfolio – 96% NAIC 1 & 2 Fixed Maturities 70% Asset-backed 22% Cash and Equivalents Corporates Foreign 6% 28% Government 2% Mortgage US Loans Commercial MBS Government 4% 1% 2% Stat
Slide 7: Exposure to Banking Industry
Exposure to Banking Industry As of March 31, 2023 – Dollars in millions Investor Fair % of Inv. Supplement Value Portfolio Additional Information Page Fixed Maturities – Banking Corporate Securities $ 350 2.4% Average NAIC rating 1.6 23 Equity Securities – Banking Perpetual Preferreds 219 1.5% Avera
Slide 8: Exposure to Office Commercial Real Estate
Exposure to Office Commercial Real Estate As of March 31, 2023 – Dollars in millions Investor Fair % of Inv. Supplement Value Portfolio Additional Information Page Direct Mortgage Loans - Office $ 58 0.4% 27 Investment accounted for using equity method (Real Estate Funds/Investments) - Office 15 0.1
Slide 9: Strong Financial Position
Strong Financial Position Dollars in millions, except per share data Mar 31, 2023 Dec 31, 2022 Capital Management Principal amount of long-term debt $ 1,503 $ 1,521 1 ▪ Above target levels for all rating agencies Adjusted shareholders' equity 4,375 4,578 ▪ Excess capital approximately $1.0 billion a
Slide 10: Property & Casualty Results
Property & Casualty Results Three Months Ended Dollars in millions March 31, 2023 2022 Change1 Specialty Gross Written Premiums $ 2,155 $ 1,936 11% Specialty Net Written Premiums $ 1,519 $ 1,368 11% P&C Insurance Operating Earnings $ 350 $ 422 (17%) Specialty P&C Underwriting Profit $ 155 $ 208 (25%
Slide 11: Specialty P&C Group
Specialty P&C Group Dollars in millions Net Written Premiums Combined Ratio Three Months Ended Three Months Ended March 31, March 31, 2023 2022 Change 2023 2022 Property & Transportation $ 552 $ 501 10% 91.0% 85.8% Specialty Casualty $ 722 $ 650 11% 87.5% 80.6% Specialty Casualty Excluding Workers’
Slide 12: 2023 Outlook
2023 Outlook AFG’s 2023 core net operating earnings guidance of $11.00 - $12.00 per share, a core return on equity of more than 20% at the midpoint1 Updated February Guidance1 Guidance NWP Combined NWP Combined 2022 Growth Ratio Growth Ratio Actual Specialty P&C Group Overall 3% – 6% 87% – 89% 3% –
Slide 13: Review of First Quarter 2023
Review of First Quarter 2023 May 3, 2023
American Financial Group — Q1 2023 Earnings Presentation on 6ix