2024 Keefe, Bruyette & Woods Insurance Conference Presentation
Investor Presentation
A History Dating Back More Than 150 Years
We are specialists in providing P&C insurance products that help businesses manage their unique financial risks and exposures.
Approximately 55% of
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Superior Underwriting |
Specialty P&C |
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Talent |
Combined Ratio |
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7.5% |
11 years |
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Points of COR outperformance |
Consecutive years |
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vs. peers over 10-year period |
under 94% |
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ended |
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Overall Specialty P&C combined ratio of 90.3% for the twelve months ended |
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Record premium production for the twelve months ended |
3 |
Top Tier Specialty Property & Casualty Insurer
Entrepreneurial Culture, Strategic Alignment of Interests
Market Leading P&C Insurance Specialist
Consistent Investment Outperformance
4
Our values form the
foundation of our business,
shape our priorities, and set our expectations for how we conduct our business, service our customers and interact with each other.
5
2024 Employee Survey Highlights
PROUD TO BE BEST IN CLASS
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92% |
I understand the results |
The organization |
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expected of me in my job. |
provides high quality |
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products and services. |
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PARTICIPATION |
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I understand how my job |
I am treated with respect |
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contributes to the |
as an individual. |
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organization's strategy |
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and goals. |
HOW WE STACK UP
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The organization supports |
I have opportunities for |
We use the different |
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me in achieving a balance |
learning and development at |
perspectives, backgrounds |
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between my work life and my |
the organization. |
and experiences that our |
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personal life. |
employees have to help |
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deliver better business |
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outcomes. |
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OUR COMPANY |
HIGH PERFORMING |
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COMPANIES* |
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- High Performing (Norm) - Average survey scores from 65 top performing organizations with over 685,000 employees (based on financial performance versus peers, and high employee engagement and enablement.)
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Source: Employee opinion survey and benchmark data is provided by our survey vendor, KoFerry. |
6 |
Strategic Alignment of Interests for Optimal Results
Significant Ownership
by Management
Unique, Incentive-Based
Programs for P&C Business
Leaders
Innovator in Risk Sharing and
Alternative Risk Transfer Programs
For Policyholders and Agents
24%
15%
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•Annual awards |
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- |
based on AY COR targets derived from |
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- |
ROE thresholds |
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paid over 2-3 years; claw back feature |
61%
Individual Institutional Family, Investors Investors Executives and
Retirement Plan
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•Long Term Incentive Comp (LTIC) Plan |
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- |
5-year measurement period based on AY |
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COR targets derived from ROE |
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- |
thresholds |
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paid out over the following 4-5 years |
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• Attract, retain and reward key operating |
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executives & officers |
Profit Sharing for Employees
- Our Profit-Sharing Plan is a key component of AFG's Total Rewards Program, rewarding eligible employees for their contributions toward overall performance
- A leader in providing risk sharing alternatives to the passenger transportation, moving & storage and trucking specialty transportation industries
- Through collaboration and specialized knowledge, we work with a variety of agency and group risk sharing programs in a wide range of industry segments in our Targeted Markets operations
- Our Strategic Comp business offers unique coverage options for workers' comp accounts that include higher retentions and specialty loss prevention - giving businesses more control over their costs, risks, and outcomes
- Innovative commission structures for distribution
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partners reward production of profitable business |
7 |
Building Long-Term Value for AFG Shareholders
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10 YEAR VIEW |
11% |
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CAGR |
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OF |
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TOTAL VALUE |
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CREATION |
Superior P&C |
Superior |
Intelligent |
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Underwriting |
Investment |
Deployment of = VALUE |
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Growth in BVPS |
Results |
Talent |
Capital |
CREATION |
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Excluding AOCI + |
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Dividends |
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2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
8
Focusing on What We Know Best
Sale of
Commercial
Lines Division
1998 2000
Start-up of
Financial
Institution
Services
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Acquired all |
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IPO of Infinity |
minority |
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Property and |
shares of Great |
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Casualty; exit |
American |
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personal auto |
Financial |
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business |
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2003 |
2005 |
2007 |
2008 |
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Acquisition of |
Acquisitions of |
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Farmer's Crop |
Strategic |
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Insurance |
Comp & |
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Alliance |
Marketform |
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IPO of National |
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Interstate |
Start-up of |
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Corporation |
Environmental |
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Division |
2010
Acquisition of
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Acquisition of |
Acquired |
Start-up of |
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remaining 49% |
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Start-up of Public |
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of NATL |
Accident & |
Acquisition of |
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shares not |
Health |
Acquisition of |
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Sector Division |
Start-up of |
owned by AFG |
Business |
Crop Risk |
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Sale of Medicare |
Aviation Division |
Start-up of |
Acquired Atlas |
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Services |
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Sale of |
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supplement & |
Acquisition of |
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Financial |
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critical illness |
Public Sector |
Specialty P&C |
paratransit |
Annuity |
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businesses |
renewal rights |
Division |
business |
Business |
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2012 |
2013 |
2014 |
2015 |
2016 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
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Start-up of |
Sale of long- |
Acquired Tank |
Sale of Neon and |
Start-up of |
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Professional |
term care |
Owner Members |
exit from Lloyd's |
Medical Stop |
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Liability Division |
business |
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market |
Loss Business |
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Start-up of Great |
(TOMIC) business |
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Acquired ABA |
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American's |
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Insurance |
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branch |
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Start-up of M&A |
(ABAIS) |
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Liability Division |
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Start-Ups |
Acquisitions |
Dispositions |
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9
Specialty P&C Insurance Operations
We are specialists in providing property and casualty insurance solutions that fulfill today's needs and tomorrow's dreams. We are a trusted partner in delivering long-term value to our customers, employees and investors.
PROPERTY &
TRANSPORTATION
Agribusiness (farm & ranch)
Commercial Automobile
Commercial Property
Crop
Equine Mortality
Inland and
SPECIALTY
CASUALTY
Cyber Risk
Excess and Surplus
Executive & Professional Liability
General Liability
M&A Liability
Medical Stop Loss
Public Entities
Targeted Programs
Umbrella and Excess Liability
Workers' Compensation
SPECIALTY
FINANCIAL
Fidelity / Crime
Lease and Loan Services
Surety
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A+ A+ A1
Superior Strong
Diversified product offerings in niche markets
Consistent, solid underwriting results
Strong market positions
Strong capitalization
Low catastrophe risk profile
The Numbers Tell Our Story 3,000
Property and casualty insurance companies in
50
Companies on the Ward's 50 List for safety, consistency and performance
4
Rated "A" (Excellent) or better by AM Best for 115 or more years
3
on both lists
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11
Attachments
Disclaimer
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