2nd Quarter 2024 Earnings Presentation
Review of
Second Quarter 2024
2024 Second Quarter Consolidated Results
Dollars in millions, except per share data
Three Months Ended
|
|
|||||||||
|
2024 |
2023 |
||||||||
|
P&C Insurance Segment |
$ |
319 |
$ |
299 |
|||||
|
Interest & other corporate expenses |
(46) |
(41) |
|||||||
|
Pretax Core Operating Earnings |
273 |
258 |
|||||||
|
Related income taxes |
58 |
56 |
|||||||
|
Core Net Operating Earnings |
$ |
215 |
$ |
202 |
|||||
|
Average number of diluted shares |
83.9 |
85.2 |
|||||||
|
Core Net Operating Earnings per Share |
$ |
2.56 |
$ |
2.38 |
|||||
|
Annualized Core Operating Retuon Equity |
18.5% |
18.2% |
3
2024 Second Quarter Consolidated Results (continued)
Dollars in millions, except per share data
|
Three Months Ended |
|||||
|
|
|||||
|
(Per Share) |
|||||
|
Core Net Operating Earnings |
|
|
|||
|
Non-core Items |
|||||
|
After-tax net realized losses on securities1 |
(2) |
(0.02) |
|||
|
Other |
(4) |
(0.05) |
|||
|
Net Earnings |
|
|
1 Included in this amount is
4
Investments
- Total carrying value of AFG's investment portfolio at
June 30, 2024 =$15.3 billion - P&C net investment income down 1% YOY; up 15% excluding alternative investments
-
- second quarter 2024 annualized retuof 5.1% on
$2.6 billion of alternative investments
- second quarter 2024 annualized retuof 5.1% on
- Second quarter after-tax net realized losses on securities of
$2 million -
- includes
$2 million in after-tax net realized losses to adjust equity securities that the company continued to own atJune 30, 2024 , to fair value through earnings
- includes
5
Investments
As of
Fixed
Maturities
67%
Fixed Maturities Portfolio - 94% investment grade P&C Fixed Maturities Portfolio - 96% NAIC 1 & 2
Investments
Accounted for by Equity Method 12%
Cash and
Equivalents
8%
Equities 7%
|
Mortgage |
||
|
Loans |
||
|
Real Estate |
||
|
5% |
||
|
and Other |
||
Asset-backed
23%
Corporates
33%
Residential MBS
16%
Collateralized
Loan
Obligations
14%
States and
Municipalities
Foreign 8%
Government
3%
Commercial MBS 2% 1%
|
1% |
|
Carrying Value - |
6 |
Strong Financial Position
Dollars in millions, except per share data
Capital Management
- Above target levels for all rating agencies
- Second quarter regular dividends =
$59 million
Long-Term Debt
- No debt maturities until 2030
- No borrowings under
$450 million credit line
Financial Strength Ratings -
A.M. Best : All companies = A+Standard & Poor's : All companies = A+- Moody's: All companies = A1
|
|
|
|
|
Principal amount of long-term debt |
|
|
|
Shareholders' equity, excluding AOCI |
4,715 |
4,577 |
|
Total capital, excluding AOCI |
|
|
|
Ratio of debt to total capital, excluding AOCI1 |
||
|
Including subordinated debt |
24.1% |
24.7% |
|
Excluding subordinated debt |
13.2% |
13.5% |
|
Common shares outstanding (millions) |
83.897 |
83.636 |
|
Book value per share: |
||
|
Book value per share |
|
|
|
Book value per share, excluding AOCI |
56.19 |
54.72 |
|
Tangible, excluding AOCI2 |
50.13 |
48.52 |
- The ratio is calculated by dividing the principal amount of AFG's long-term debt by its total capital, which includes long-term debt and shareholders' equity, excluding AOCI.
- Excludes AOCI, goodwill and intangibles.
7
Property & Casualty Results
Dollars in millions
Three Months Ended
|
2024 |
2023 |
Change1 |
|||||
|
Specialty Gross Written Premiums |
$ |
2,406 |
$ |
2,369 |
2% |
||
|
Specialty Net Written Premiums |
$ |
1,692 |
$ |
1,667 |
1% |
||
|
P&C Insurance Operating Earnings |
$ |
319 |
$ |
299 |
7% |
||
|
Specialty P&C Underwriting Profit |
$ |
151 |
$ |
123 |
23% |
||
|
Specialty P&C Combined Ratio |
90.5% |
91.9% |
(1.4%) |
||||
|
Adverse (Favorable) Impact of: |
|||||||
|
Catastrophe Losses |
2.3% |
3.5% |
(1.2%) |
||||
|
Prior |
(2.3%) |
(4.0%) |
1.7% |
1 Calculated as a percentage change for dollars and an arithmetic difference for percentages.
8
|
Dollars in millions |
Net Written Premiums |
Combined Ratio |
||||||
|
Three Months Ended |
Three Months Ended |
|||||||
|
|
|
|||||||
|
2024 |
2023 |
Change |
2024 |
2023 |
||||
|
Property & Transportation |
$ |
681 |
|
2% |
92.9% |
94.2% |
||
|
Specialty Casualty |
$ |
704 |
|
2% |
85.4% |
86.6% |
||
|
Specialty Casualty Excluding |
||||||||
|
Workers' Compensation |
$ |
444 |
|
3% |
||||
|
Specialty Financial |
$ |
248 |
|
3% |
89.7% |
95.0% |
9
10
Attachments
Disclaimer



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