American Financial Group, Inc. · NYSE:AFG
American Financial — Q2 2023 Earnings Presentation
11 slides from American Financial's earnings presentation, Aug 3, 2023
Slide 1: Review of Second Quarter 2023
Review of Second Quarter 2023 August 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 Second Quarter Consolidated Results
2023 Second Quarter Consolidated Results Dollars in millions, except per share data Three Months Ended June 30, 2023 2022 P&C Insurance Segment $ 299 $ 345 Interest & other corporate expenses (41) (37) Pretax Core Operating Earnings 258 308 Related income taxes 56 65 Core Net Operating Earnings $ 20
Slide 4: 2023 Second Quarter Consolidated Results (continued)
2023 Second Quarter Consolidated Results (continued) Dollars in millions, except per share data Three Months Ended June 30, 2023 (Per Share) Core Net Operating Earnings $ 202 $ 2.38 Non-core Items After-tax net realized losses on securities1 (1) (0.02) Loss on retirement of debt (1) (0.02) Net Earni
Slide 5: Investments
Investments • Total carrying value of AFG’s investment portfolio at June 30, 2023 = $14.5 billion • Second quarter after-tax net realized losses on securities of $1 million – includes $2 million in after-tax net realized gains to adjust equity securities that the company continued to own at June 30,
Slide 6: AFG Investment Portfolio
AFG Investment Portfolio As of June 30, 2023 Fixed Maturities Portfolio – 93% investment grade P&C Fixed Maturities Portfolio – 96% NAIC 1 & 2 Fixed Maturities 68% Asset-backed 22% Cash and Equivalents Corporates Foreign 7% 28% Government 3% Mortgage US Commercial MBS Government Loans 1% 2% 5% State
Slide 7: Strong Financial Position
Strong Financial Position Dollars in millions, except per share data June 30, 2023 Dec 31, 2022 Capital Management Principal amount of long-term debt $ 1,498 $ 1,521 Above target levels for all rating agencies Adjusted shareholders' equity1 4,490 4,578 Excess capital approximately $700 million a
Slide 8: Property & Casualty Results
Property & Casualty Results Three Months Ended Dollars in millions June 30, 2023 2022 Change1 Specialty Gross Written Premiums $ 2,369 $ 2,123 12% Specialty Net Written Premiums $ 1,667 $ 1,516 10% P&C Insurance Operating Earnings $ 299 $ 345 (13%) Specialty P&C Underwriting Profit $ 123 $ 197 (38%)
Slide 9: Specialty P&C Group
Specialty P&C Group Dollars in millions Net Written Premiums Combined Ratio Three Months Ended Three Months Ended June 30, June 30, 2023 2022 Change 2023 2022 Property & Transportation $ 668 $ 632 6% 94.2% 92.4% Specialty Casualty $ 693 $ 646 7% 86.6% 80.1% Specialty Casualty Excluding Workers’ Comp
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 of approximately 20%1 Updated May Guidance1 Guidance NWP Combined NWP Combined 2022 Growth Ratio Growth Ratio Actual Specialty P&C Group Overall 5% – 8% 89% – 91% 3% – 6% 87%
Slide 11: Review of Second Quarter 2023
Review of Second Quarter 2023 August 3, 2023
American Financial Group — Q2 2023 Earnings Presentation on 6ix