American Financial Group, Inc. · NYSE:AFG
American Financial — Q4 2023 Earnings Presentation
27 slides from American Financial's earnings presentation, Feb 7, 2024
Slide 1: Investor Supplement - Fourth Quarter 2023
American Financial Group, Inc. Investor Supplement - Fourth Quarter 2023 February 6, 2024 American Financial Group, Inc. Corporate Headquarters Great American Insurance Group Tower 301 E Fourth Street Cincinnati, OH 45202 513 579 6739
Slide 2: Table of Contents - Investor Supplement - Fourth Quarter 2023
American Financial Group, Inc. Table of Contents - Investor Supplement - Fourth Quarter 2023 4 Section Page Table of Contents - Investor Supplement - Fourth Quarter 2023.................................................................................................................... 2 Financial Hi
Slide 3: Financial Highlights
American Financial Group, Inc. Financial Highlights (in millions, except per share information) Three Months Ended Twelve Months Ended 12/31/2023 9/30/23 6/30/23 3/31/23 12/31/22 12/31/23 12/31/22 Highlights Net earnings $ 263 $ 177 $ 200 $ 212 $ 276 $ 852 $ 898 Core net operating earnings 238 208 2
Slide 4: Summary of Earnings
American Financial Group, Inc. Summary of Earnings ($ in millions) Three Months Ended Twelve Months Ended 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 12/31/23 12/31/22 Property and Casualty Insurance Underwriting profit $ 211 $ 142 $ 124 $ 154 $ 218 $ 631 $ 776 Net investment income 161 170 191 207 15
Slide 5: Earnings Per Share Summary
American Financial Group, Inc. Earnings Per Share Summary (in millions, except per share information) Three Months Ended Twelve Months Ended 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 12/31/23 12/31/22 Core net operating earnings $ 238 $ 208 $ 202 $ 247 $ 255 $ 895 $ 993 Net earnings $ 263 $ 177 $ 20
Slide 6: Property and Casualty Insurance - Summary Underwriting Results (GAAP)
American Financial Group, Inc. Property and Casualty Insurance - Summary Underwriting Results (GAAP) ($ in millions) Three Months Ended Twelve Months Ended 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 12/31/23 12/31/22 Property and Transportation $ 67 $ 42 $ 32 $ 43 $ 68 $ 184 $ 208 Specialty Casualty
Slide 7: Specialty - Underwriting Results (GAAP)
American Financial Group, Inc. Specialty - Underwriting Results (GAAP) ($ in millions) Three Months Ended Twelve Months Ended 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 12/31/23 12/31/22 Gross written premiums $ 1,992 $ 3,140 $ 2,369 $ 2,155 $ 1,845 $ 9,656 $ 9,057 Ceded reinsurance premiums (547) (1
Slide 8: Property and Transportation - Underwriting Results (GAAP)
American Financial Group, Inc. Property and Transportation - Underwriting Results (GAAP) ($ in millions) Three Months Ended Twelve Months Ended 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 12/31/23 12/31/22 Gross written premiums $ 623 $ 1,592 $ 1,059 $ 872 $ 601 $ 4,146 $ 4,060 Ceded reinsurance premi
Slide 9: Specialty Casualty - Underwriting Results (GAAP)
American Financial Group, Inc. Specialty Casualty - Underwriting Results (GAAP) ($ in millions) Three Months Ended Twelve Months Ended 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 12/31/23 12/31/22 Gross written premiums $ 1,069 $ 1,226 $ 1,012 $ 1,061 $ 1,007 $ 4,368 $ 4,115 Ceded reinsurance premiums
Slide 10: Specialty Financial - Underwriting Results (GAAP)
American Financial Group, Inc. Specialty Financial - Underwriting Results (GAAP) ($ in millions) Three Months Ended Twelve Months Ended 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 12/31/23 12/31/22 Gross written premiums $ 300 $ 322 $ 298 $ 222 $ 237 $ 1,142 $ 882 Ceded reinsurance premiums (50) (61)
Slide 11: Other Specialty - Underwriting Results (GAAP)
American Financial Group, Inc. Other Specialty - Underwriting Results (GAAP) ($ in millions) Three Months Ended Twelve Months Ended 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 12/31/23 12/31/22 Gross written premiums $ - $ - $ - $ - $ - $ - $ - Ceded reinsurance premiums 69 66 66 61 61 262 252 Net wri
Slide 12: Consolidated Balance Sheet
American Financial Group, Inc. Consolidated Balance Sheet ($ in millions) 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 9/30/22 Assets: Total cash and investments $ 15,263 $ 14,794 $ 14,489 $ 14,451 $ 14,512 $ 14,322 Recoverables from reinsurers 4,477 4,421 3,852 3,838 3,977 4,108 Prepaid reinsurance pr
Slide 13: Book Value Per Share and Price / Book Summary
American Financial Group, Inc. Book Value Per Share and Price / Book Summary (in millions, except per share information) 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 9/30/22 Shareholders' equity $ 4,258 $ 3,981 $ 3,993 $ 3,941 $ 4,052 $ 3,932 Unrealized (gains) losses related to fixed maturities 304 55
Slide 14: Capitalization
American Financial Group, Inc. Capitalization ($ in millions) 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 9/30/22 AFG senior obligations $ 823 $ 823 $ 823 $ 828 $ 846 $ 884 Borrowings drawn under credit facility - - - - - - Debt excluding subordinated debt $ 823 $ 823 $ 823 $ 828 $ 846 $ 884 AFG subor
Slide 15: Additional Supplemental Information
American Financial Group, Inc. Additional Supplemental Information ($ in millions) Three Months Ended Twelve Months Ended 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 12/31/23 12/31/22 Property and Casualty Insurance Paid Losses (GAAP) $ 938 $ 805 $ 802 $ 881 $ 914 $ 3,426 $ 3,082 12/31/2023 9/30/23 6/
Slide 16: Total Cash and Investments
American Financial Group, Inc. Total Cash and Investments ($ in millions) Carrying Value - December 31, 2023 Property and % of Casualty Parent & Consolidate Total AFG Investment Insurance Other CLOs Consolidated Portfolio Total cash and investments: Cash and cash equivalents $ 940 $ 285 $ - $ 1,225
Slide 17: Net Investment Income
American Financial Group, Inc. Net Investment Income ($ in millions) Three Months Ended Twelve Months Ended 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 12/31/23 12/31/22 Property and Casualty Insurance: Gross investment income excluding alternative investments Fixed maturities $ 131 $ 121 $ 117 $ 112
Slide 18: Alternative Investments
American Financial Group, Inc. Alternative Investments ($ in millions) Three Months Ended Twelve Months Ended 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 12/31/23 12/31/22 Property and Casualty Insurance: Net Investment Income Convertible fixed maturities MTM through investment income $ (2) $ (11) $ 8
Slide 19: Fixed Maturities - By Security Type - AFG Consolidated
American Financial Group, Inc. Fixed Maturities - By Security Type - AFG Consolidated ($ in millions ) % of Unrealized % of Investment December 31, 2023 Book Value (a) Fair Value Gain (Loss) Fair Value Portfolio US Government and government agencies $ 243 $ 236 $ (7) 2% 2% States, municipalities and
Slide 20: Appendix A: Fixed Maturities by Credit Rating & NAIC Designation
Appendix A American Financial Group, Inc. Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2023 ($ in millions) Fair Value by Type By Credit Rating (a) US Gov Munis Frgn Gov RMBS CMBS CLOs ABS Corp/Oth Total % Total Investment grade AAA $ - $ 371 $ 261 $ 1,425 $ 63 $ 1,500 $ 961 $
Slide 21: Appendix B: Fixed Maturities by Credit Rating & NAIC Designation
Appendix B American Financial Group, Inc. Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2022 ($ in millions) Fair Value by Type By Credit Rating (a) US Gov Munis Frgn Gov RMBS CMBS CLOs ABS Corp/Oth Total % Total Investment grade AAA $ 219 $ 477 $ 239 $ 1,317 $ 63 $ 1,708 $ 860
Slide 22: Appendix C: Corporate Securities by Credit Rating & NAIC Designation
Appendix C American Financial Group, Inc. Corporate Securities by Credit Rating & NAIC Designation by Industry 12/31/2023 ($ in millions) Fair Value By Industry Asset Other Basic Capital Credit Rating (a) Managers Banking Technology Insurance Consumer Financials Utilities Autos REITs Retailers Indus
Slide 23: Appendix D: Corporate Securities by Credit Rating & NAIC Designation
Appendix D American Financial Group, Inc. Corporate Securities by Credit Rating & NAIC Designation by Industry 12/31/2022 ($ in millions) Fair Value By Industry Asset Other Basic Capital Credit Rating (a) Managers Banking Financials Technology Insurance Consumer REITs Retailers Industry Media Autos
Slide 24: Appendix E: Asset-Backed Securities by Credit Rating & NAIC Designation
Appendix E American Financial Group, Inc. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type 12/31/2023 ($ in millions) Fair Value By Collateral Type Single Whole Commercial Secured Family Triple Net Credit Rating (a) Business Real Estate Financing (c) TruPS Rental Lease
Slide 25: Appendix F: Asset-Backed Securities by Credit Rating & NAIC Designation
Appendix F American Financial Group, Inc. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type 12/31/2022 ($ in millions) Fair Value By Collateral Type Single Mortgage Commercial Whole Secured Triple Net Family Servicer Consumer Credit Rating (a) Real Estate Business TruPS
Slide 26: Appendix G: Real Estate-Related Investments
Appendix G American Financial Group, Inc. Real Estate-Related Investments 12/31/2023 ($ in millions) Investments accounted for using equity method (Real Estate Funds/Investments) (a) % of Investment Type Book Value Book Value Occupancy (b) Collection Rate (c) Multi-family $ 1,205 91% 94% 97% Fund In
Slide 27: Appendix H: Real Estate-Related Investments
Appendix H American Financial Group, Inc. Real Estate-Related Investments 12/31/2022 ($ in millions) Investments accounted for using equity method (Real Estate Funds/Investments) (a) % of Investment Type Book Value Book Value Occupancy (b) Collection Rate (c) Multi-family $ 1,127 92% 95% 98% Fund In
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