American Financial Group, Inc. · NYSE:AFG
American Financial — Q3 2024 Earnings Presentation
27 slides from American Financial's earnings presentation, Nov 6, 2024
Slide 1: Investor Supplement - Third Quarter 2024
American Financial Group, Inc. Investor Supplement - Third Quarter 2024 November 5, 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 - Third Quarter 2024
American Financial Group, Inc. Table of Contents - Investor Supplement - Third Quarter 2024 3 Section Page Table of Contents - Investor Supplement - Third Quarter 2024...................................................................................................................... 2 Financial Hi
Slide 3: Financial Highlights
American Financial Group, Inc. Financial Highlights (in millions, except per share information) Three Months Ended Nine Months Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Highlights Net earnings $ 181 $ 209 $ 242 $ 263 $ 177 $ 632 $ 589 Core net operating earnings 194 215 231 238
Slide 4: Summary of Earnings
American Financial Group, Inc. Summary of Earnings ($ in millions) Three Months Ended Nine Months Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Property and Casualty Insurance Underwriting profit $ 115 $ 150 $ 153 $ 211 $ 142 $ 418 $ 420 Net investment income 195 189 205 161 170 589
Slide 5: Earnings Per Share Summary
American Financial Group, Inc. Earnings Per Share Summary (in millions, except per share information) Three Months Ended Nine Months Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Core net operating earnings $ 194 $ 215 $ 231 $ 238 $ 208 $ 640 $ 657 Net earnings $ 181 $ 209 $ 242 $ 2
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 Nine Months Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Property and Transportation $ 34 $ 39 $ 56 $ 67 $ 42 $ 129 $ 117 Specialty Casualty 76 10
Slide 7: Specialty - Underwriting Results (GAAP)
American Financial Group, Inc. Specialty - Underwriting Results (GAAP) ($ in millions) Three Months Ended Nine Months Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Gross written premiums $ 3,748 $ 2,406 $ 2,336 $ 1,992 $ 3,140 $ 8,490 $ 7,664 Ceded reinsurance premiums (1,395) (714)
Slide 8: Property and Transportation - Underwriting Results (GAAP)
American Financial Group, Inc. Property and Transportation - Underwriting Results (GAAP) ($ in millions) Three Months Ended Nine Months Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Gross written premiums $ 2,107 $ 1,084 $ 959 $ 623 $ 1,592 $ 4,150 $ 3,523 Ceded reinsurance premiums
Slide 9: Specialty Casualty - Underwriting Results (GAAP)
American Financial Group, Inc. Specialty Casualty - Underwriting Results (GAAP) ($ in millions) Three Months Ended Nine Months Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Gross written premiums $ 1,297 $ 1,023 $ 1,097 $ 1,069 $ 1,226 $ 3,417 $ 3,299 Ceded reinsurance premiums (434
Slide 10: Specialty Financial - Underwriting Results (GAAP)
American Financial Group, Inc. Specialty Financial - Underwriting Results (GAAP) ($ in millions) Three Months Ended Nine Months Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Gross written premiums $ 344 $ 299 $ 280 $ 300 $ 322 $ 923 $ 842 Ceded reinsurance premiums (60) (51) (46) (5
Slide 11: Other Specialty - Underwriting Results (GAAP)
American Financial Group, Inc. Other Specialty - Underwriting Results (GAAP) ($ in millions) Three Months Ended Nine Months Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Gross written premiums $ - $ - $ - $ - $ - $ - $ - Ceded reinsurance premiums 66 59 58 69 66 183 193 Net written
Slide 12: Consolidated Balance Sheet
American Financial Group, Inc. Consolidated Balance Sheet ($ in millions) 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 Assets: Total cash and investments $ 15,741 $ 15,261 $ 15,254 $ 15,263 $ 14,794 $ 14,489 Recoverables from reinsurers 5,217 4,157 4,510 4,477 4,421 3,852 Prepaid reinsurance pre
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) 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 Shareholders' equity $ 4,708 $ 4,384 $ 4,240 $ 4,258 $ 3,981 $ 3,993 Accumulated other comprehensive income (loss) (136) (331) (31
Slide 14: Capitalization
American Financial Group, Inc. Capitalization ($ in millions) 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 AFG senior obligations $ 823 $ 823 $ 823 $ 823 $ 823 $ 823 Borrowings drawn under credit facility - - - - - - Debt excluding subordinated debt $ 823 $ 823 $ 823 $ 823 $ 823 $ 823 AFG subord
Slide 15: Additional Supplemental Information
American Financial Group, Inc. Additional Supplemental Information ($ in millions) Three Months Ended Nine Months Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Property and Casualty Insurance Paid Losses (GAAP) $ 897 $ 969 $ 989 $ 938 $ 805 $ 2,855 $ 2,488 9/30/24 6/30/24 3/31/24 12
Slide 16: Total Cash and Investments
American Financial Group, Inc. Total Cash and Investments ($ in millions) Carrying Value - September 30, 2024 Property and % of Casualty Parent & Consolidate Total AFG Investment Insurance Other CLOs Consolidated Portfolio Total cash and investments: Cash and cash equivalents $ 1,063 $ 259 $ - $ 1,3
Slide 17: Net Investment Income
American Financial Group, Inc. Net Investment Income ($ in millions) Three Months Ended Nine Months Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Property and Casualty Insurance: Gross investment income excluding alternative investments Fixed maturities $ 134 $ 133 $ 131 $ 131 $ 121
Slide 18: Alternative Investments
American Financial Group, Inc. Alternative Investments ($ in millions) Three Months Ended Nine Months Ended 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23 Property and Casualty Insurance: Net Investment Income Fixed maturities MTM through investment income $ 8 $ 1 $ 1 $ (2) $ (11) $ 10 $ 1
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 September 30, 2024 Book Value (a) Fair Value Gain (Loss) Fair Value Portfolio US Government and government agencies $ 182 $ 180 $ (2) 2% 1% States, municipalities an
Slide 20: Fixed Maturities by Credit Rating & NAIC Designation by Type (9/30/2024)
Appendix A American Financial Group, Inc. Fixed Maturities by Credit Rating & NAIC Designation by Type 9/30/2024 ($ in millions) Fair Value by Type Credit Rating (a) US Gov Munis Frgn Gov RMBS CMBS CLOs ABS Corp/Oth Total % Total Investment grade AAA $ - $ 343 $ 269 $ 1,542 $ 43 $ 1,207 $ 892 $ 14 $
Slide 21: Fixed Maturities by Credit Rating & NAIC Designation by Type (12/31/2023)
Appendix B American Financial Group, Inc. Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2023 ($ in millions) Fair Value by Type 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 $ 23
Slide 22: Corporate Securities by Credit Rating & NAIC Designation by Industry (9/30/2024)
Appendix C American Financial Group, Inc. Corporate Securities by Credit Rating & NAIC Designation by Industry 9/30/2024 ($ in millions) Fair Value By Industry Asset Other Basic Capital Credit Rating (a) Managers Banking Technology Insurance Financials Utilities Consumer Autos REITs Industry Retaile
Slide 23: Corporate Securities by Credit Rating & NAIC Designation by Industry (12/31/2023)
Appendix D 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 24: Asset-Backed Securities by Credit Rating by Collateral Type (9/30/2024)
Appendix E American Financial Group, Inc. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type 9/30/2024 ($ in millions) Fair Value By Collateral Type Single Whole Commercial Secured Triple Net Family Credit Rating (a) Business Real Estate Financing (c) Lease Railcar TruPS
Slide 25: Asset-Backed Securities by Credit Rating by Collateral Type (12/31/2023)
Appendix F 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 26: Real Estate-Related Investments (9/30/2024)
Appendix G American Financial Group, Inc. Real Estate-Related Investments 9/30/2024 ($ 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 $ 1,214 90% 94% 97% Fund Inv
Slide 27: Real Estate-Related Investments (12/31/2023)
Appendix H 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
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