2nd Quarter 2024 Earnings Presentation - Insurance News | InsuranceNewsNet

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August 7, 2024 Property and Casualty News
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2nd Quarter 2024 Earnings Presentation

U.S. Markets via PUBT

Review of

Second Quarter 2024

August 7, 2024

2024 Second Quarter Consolidated Results

Dollars in millions, except per share data

Three Months Ended

June 30,

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

June 30, 2024

(Per Share)

Core Net Operating Earnings

$ 215

$ 2.56

Non-core Items

After-tax net realized losses on securities1

(2)

(0.02)

Other

(4)

(0.05)

Net Earnings

$ 209

$ 2.49

1 Included in this amount is $2 million ($0.02 per share loss) in after-tax net losses to adjust equity securities that the Company continued to own at June 30, 2024, to fair value.

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 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 at June 30, 2024, to fair value through earnings

5

Investments

As of June 30, 2024

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%

US Government

Commercial MBS 2% 1%

1%

Carrying Value - $15.3 Billion

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 - U.S. Based P&C Insurers (where rated)

  • A.M. Best: All companies = A+
  • Standard & Poor's: All companies = A+
  • Moody's: All companies = A1

June 30, 2024

Dec 31, 2023

Principal amount of long-term debt

$ 1,498

$ 1,498

Shareholders' equity, excluding AOCI

4,715

4,577

Total capital, excluding AOCI

$ 6,213

$ 6,075

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

$ 52.25

$ 50.91

Book value per share, excluding AOCI

56.19

54.72

Tangible, excluding AOCI2

50.13

48.52

  1. 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.
  2. Excludes AOCI, goodwill and intangibles.

7

Property & Casualty Results

Dollars in millions

Three Months Ended

June 30,

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 Year Development

(2.3%)

(4.0%)

1.7%

1 Calculated as a percentage change for dollars and an arithmetic difference for percentages.

8

Specialty P&C Group

Dollars in millions

Net Written Premiums

Combined Ratio

Three Months Ended

Three Months Ended

June 30,

June 30,

2024

2023

Change

2024

2023

Property & Transportation

$

681

$ 668

2%

92.9%

94.2%

Specialty Casualty

$

704

$ 693

2%

85.4%

86.6%

Specialty Casualty Excluding

Workers' Compensation

$

444

$ 432

3%

Specialty Financial

$

248

$ 240

3%

89.7%

95.0%

9

10

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Disclaimer

American Financial Group Inc. published this content on 07 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2024 16:33:52 UTC.

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