Q3 2023 Investor Supplement

American Financial Group, Inc.

Table of Contents - Investor Supplement - Third Quarter 2023

3

Section

Page

Table of Contents - Investor Supplement - Third Quarter 2023

2

Financial Highlights

3

Summary of Earnings

4

Earnings Per Share Summary

5

Property and Casualty Insurance Segment

Property and Casualty Insurance - Summary Underwriting Results (GAAP)

6

Specialty - Underwriting Results (GAAP)

7

Property and Transportation - Underwriting Results (GAAP)

8

Specialty Casualty - Underwriting Results (GAAP)

9

Specialty Financial - Underwriting Results (GAAP)

10

Other Specialty - Underwriting Results (GAAP)

11

Consolidated Balance Sheet / Book Value / Debt

Consolidated Balance Sheet

12

Book Value Per Share and Price / Book Summary

13

Capitalization

14

Additional Supplemental Information

15

Consolidated Investment Supplement

Total Cash and Investments

16

Net Investment Income

17

Alternative Investments

18

Fixed Maturities - By Security Type - AFG Consolidated

19

Appendix

A. Fixed Maturities by Credit Rating & NAIC Designation by Type 9/30/2023

20

B. Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2022

21

C. Corporate Securities by Credit Rating & NAIC Designation by Industry 9/30/2023

22

D. Corporate Securities by Credit Rating & NAIC Designation by Industry 12/31/2022

23

E. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type 9/30/2023

24

F. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type 12/31/2022

25

G. Real Estate-Related Investments 9/30/2023

26

H. Real Estate-Related Investments 12/31/2022

27

Three Months Ended

Nine Months Ended

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

9/30/23

9/30/22

Highlights

Net earnings

$

177

$

200

$

212

$

276

$

165

$

589

$

622

Core net operating earnings

208

202

247

255

192

657

738

Total assets

30,825

29,048

28,481

28,831

29,532

30,825

29,532

Adjusted shareholders' equity (a)

4,536

4,490

4,375

4,578

4,515

4,536

4,515

Property and Casualty net written premiums

2,061

1,667

1,519

1,338

1,984

5,247

4,868

Per share data

Diluted earnings per share

$

2.09

$

2.34

$

2.49

$

3.24

$

1.93

$

6.93

$

7.29

Core net operating earnings per share

2.45

2.38

2.89

2.99

2.24

7.72

8.65

Adjusted book value per share (a)

53.90

52.90

51.37

53.73

53.03

53.90

53.03

Dividends per common share

0.63

0.63

4.63

2.63

0.56

5.89

11.68

Financial ratios

Annualized retuon equity (b)

15.7%

17.9%

18.9%

24.2%

14.7%

17.4%

17.6%

Annualized core operating retuon equity (b)

18.3%

18.2%

22.0%

22.3%

17.1%

19.4%

20.9%

Property and Casualty combined ratio - Specialty:

Loss & LAE ratio

66.7%

60.2%

57.0%

60.8%

66.4%

61.8%

59.1%

Underwriting expense ratio

25.5%

31.7%

32.2%

25.8%

24.7%

29.5%

28.3%

Combined ratio - Specialty

92.2%

91.9%

89.2%

86.6%

91.1%

91.3%

87.4%

Three Months Ended

Nine Months Ended

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

9/30/23

9/30/22

Property and Casualty Insurance

Underwriting profit

$

142

$

124

$

154

$

218

$

155

$

420

$

558

Net investment income

170

191

207

159

145

568

524

Other income (expense)

(14)

(16)

(11)

(14)

(11)

(41)

(26)

Property and Casualty Insurance operating earnings

298

299

350

363

289

947

1,056

Interest expense of parent holding companies

(19)

(19)

(19)

(20)

(19)

(57)

(65)

Other expense

(22)

(22)

(23)

(25)

(26)

(67)

(61)

Pretax core operating earnings

257

258

308

318

244

823

930

Income tax expense

49

56

61

63

52

166

192

Core net operating earnings

208

202

247

255

192

657

738

Non-core items, net of tax:

Realized gains (losses) on securities

(15)

(1)

(37)

21

(28)

(53)

(113)

Realized loss on subsidiaries

(4)

-

-

-

-

(4)

-

Special A&E charges - Former Railroad and Manufacturing operations

(12)

-

-

-

-

(12)

-

Gain (loss) on retirement of debt

-

(1)

2

-

1

1

(7)

Other non-core items

-

-

-

-

-

-

4

Net earnings

$

177

$

200

$

212

$

276

$

165

$

589

$

622

Three Months Ended

Nine Months Ended

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

9/30/23

9/30/22

Core net operating earnings

$

208

$

202

$

247

$

255

$

192

$

657

$

738

Net earnings

$

177

$

200

$

212

$

276

$

165

$

589

$

622

Average number of diluted shares

84.745

85.172

85.378

85.350

85.365

85.096

85.315

Diluted earnings per share:

Core net operating earnings per share

$

2.45

$

2.38

$

2.89

$

2.99

$

2.24

$

7.72

$

8.65

Realized gains (losses) on securities

(0.17)

(0.02)

(0.42)

0.25

(0.32)

(0.61)

(1.32)

Realized loss on subsidiaries

(0.04)

-

-

-

-

(0.04)

-

Special A&E charges - Former Railroad and Manufacturing operations

(0.15)

-

-

-

-

(0.15)

-

Gain (loss) on retirement of debt

-

(0.02)

0.02

-

0.01

0.01

(0.09)

Other non-core items

-

-

-

-

-

-

0.05

Diluted earnings per share

$

2.09

$

2.34

$

2.49

$

3.24

$

1.93

$

6.93

$

7.29

Three Months Ended

Nine Months Ended

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

9/30/23

9/30/22

Property and Transportation

$

42

$

32

$

43

$

68

$

39

$

117

$

140

Specialty Casualty

78

95

88

128

118

261

372

Specialty Financial

29

10

26

33

15

65

81

Other Specialty

(6)

(14)

(2)

(12)

(14)

(22)

(30)

Underwriting profit - Specialty

143

123

155

217

158

421

563

Other core charges, included in loss and LAE

(1)

1

(1)

1

(3)

(1)

(5)

Underwriting profit - Property and Casualty Insurance

$

142

$

124

$

154

$

218

$

155

$

420

$

558

Included in results above:

Current accident year catastrophe losses:

Catastrophe reinstatement premium

$

-

$

2

$

-

$

(13)

$

18

$

2

$

18

Catastrophe losses

56

51

31

24

33

138

64

Total current accident year catastrophe losses

$

56

$

53

$

31

$

11

$

51

$

140

$

82

Prior year loss reserve development (favorable) / adverse

$

(43)

$

(62)

$

(63)

$

(59)

$

(53)

$

(168)

$

(226)

Combined ratio:

Property and Transportation

94.8%

94.2%

91.0%

90.0%

95.4%

93.6%

92.2%

Specialty Casualty

89.4%

86.6%

87.5%

81.3%

82.6%

87.8%

81.1%

Specialty Financial

87.6%

95.0%

86.5%

83.1%

91.3%

89.6%

83.9%

Other Specialty

109.8%

122.2%

103.5%

118.1%

122.7%

111.9%

116.9%

Combined ratio - Specialty

92.2%

91.9%

89.2%

86.6%

91.1%

91.3%

87.4%

Other core charges

0.1%

(0.2%)

0.1%

(0.1%)

0.1%

0.0%

0.1%

Combined ratio

92.3%

91.7%

89.3%

86.5%

91.2%

91.3%

87.5%

P&C combined ratio excl. catastrophe losses and prior year reserve development

91.5%

92.4%

91.5%

89.3%

91.7%

91.9%

90.9%

Loss and LAE components:

Current accident year, excluding catastrophe losses

66.0%

60.7%

59.3%

63.5%

67.0%

62.4%

62.6%

Current accident year catastrophe losses

3.1%

3.5%

2.2%

0.8%

2.5%

2.9%

1.7%

Prior accident year loss reserve development

(2.3%)

(4.2%)

(4.4%)

(3.6%)

(3.0%)

(3.5%)

(5.1%)

Loss and LAE ratio

66.8%

60.0%

57.1%

60.7%

66.5%

61.8%

59.2%

Three Months Ended

Nine Months Ended

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

9/30/23

9/30/22

Gross written premiums

$

3,140

$

2,369

$

2,155

$

1,845

$

3,153

$

7,664

$

7,212

Ceded reinsurance premiums

(1,079)

(702)

(636)

(507)

(1,169)

(2,417)

(2,344)

Net written premiums

2,061

1,667

1,519

1,338

1,984

5,247

4,868

Change in unearned premiums

(206)

(160)

(82)

285

(217)

(448)

(406)

Net earned premiums

1,855

1,507

1,437

1,623

1,767

4,799

4,462

Loss and LAE

1,238

906

819

987

1,173

2,963

2,638

Underwriting expense

474

478

463

419

436

1,415

1,261

Underwriting profit

$

143

$

123

$

155

$

217

$

158

$

421

$

563

Included in results above:

Current accident year catastrophe losses:

Catastrophe reinstatement premium

$

-

$

2

$

-

$

(13)

$

18

$

2

$

18

Catastrophe losses

56

51

31

24

33

138

64

Total current accident year catastrophe losses

$

56

$

53

$

31

$

11

$

51

$

140

$

82

Prior year loss reserve development (favorable) / adverse

$

(44)

$

(61)

$

(64)

$

(58)

$

(56)

$

(169)

$

(231)

Combined ratio:

Loss and LAE ratio

66.7%

60.2%

57.0%

60.8%

66.4%

61.8%

59.1%

Underwriting expense ratio

25.5%

31.7%

32.2%

25.8%

24.7%

29.5%

28.3%

Combined ratio

92.2%

91.9%

89.2%

86.6%

91.1%

91.3%

87.4%

Specialty combined ratio excl. catastrophe losses and prior year reserve development

91.5%

92.4%

91.5%

89.3%

91.7%

91.9%

90.9%

Loss and LAE components:

Current accident year, excluding catastrophe losses

66.0%

60.7%

59.3%

63.5%

67.0%

62.4%

62.6%

Current accident year catastrophe losses

3.0%

3.5%

2.2%

0.9%

2.5%

2.9%

1.7%

Prior accident year loss reserve development

(2.3%)

(4.0%)

(4.5%)

(3.6%)

(3.1%)

(3.5%)

(5.2%)

Loss and LAE ratio

66.7%

60.2%

57.0%

60.8%

66.4%

61.8%

59.1%

Three Months Ended

Nine Months Ended

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

9/30/23

9/30/22

Gross written premiums

$

1,592

$

1,059

$

872

$

601

$

1,737

$

3,523

$

3,459

Ceded reinsurance premiums

(687)

(391)

(320)

(178)

(778)

(1,398)

(1,367)

Net written premiums

905

668

552

423

959

2,125

2,092

Change in unearned premiums

(77)

(134)

(77)

259

(102)

(288)

(287)

Net earned premiums

828

534

475

682

857

1,837

1,805

Loss and LAE

636

346

289

489

663

1,271

1,246

Underwriting expense

150

156

143

125

155

449

419

Underwriting profit

$

42

$

32

$

43

$

68

$

39

$

117

$

140

Included in results above:

Current accident year catastrophe losses:

Catastrophe reinstatement premium

$

-

$

-

$

-

$

(1)

$

4

$

-

$

4

Catastrophe losses

14

15

19

8

9

48

34

Total current accident year catastrophe losses

$

14

$

15

$

19

$

7

$

13

$

48

$

38

Prior year loss reserve development (favorable) / adverse

$

(14)

$

(21)

$

(37)

$

(13)

$

(15)

$

(72)

$

(79)

Combined ratio:

Loss and LAE ratio

76.8%

64.8%

60.9%

71.8%

77.3%

69.2%

69.0%

Underwriting expense ratio

18.0%

29.4%

30.1%

18.2%

18.1%

24.4%

23.2%

Combined ratio

94.8%

94.2%

91.0%

90.0%

95.4%

93.6%

92.2%

Combined ratio excl. catastrophe losses and prior year reserve development

94.8%

95.1%

94.8%

90.8%

95.8%

94.8%

94.6%

Loss and LAE components:

Current accident year, excluding catastrophe losses

76.8%

65.7%

64.7%

72.6%

77.7%

70.4%

71.4%

Current accident year catastrophe losses

1.7%

2.9%

4.0%

1.0%

1.4%

2.7%

2.0%

Prior accident year loss reserve development

(1.7%)

(3.8%)

(7.8%)

(1.8%)

(1.8%)

(3.9%)

(4.4%)

Loss and LAE ratio

76.8%

64.8%

60.9%

71.8%

77.3%

69.2%

69.0%

Three Months Ended

Nine Months Ended

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

9/30/23

9/30/22

Gross written premiums

$

1,226

$

1,012

$

1,061

$

1,007

$

1,184

$

3,299

$

3,108

Ceded reinsurance premiums

(397)

(319)

(339)

(352)

(407)

(1,055)

(1,035)

Net written premiums

829

693

722

655

777

2,244

2,073

Change in unearned premiums

(95)

18

(18)

31

(100)

(95)

(100)

Net earned premiums

734

711

704

686

677

2,149

1,973

Loss and LAE

463

421

417

381

374

1,301

1,072

Underwriting expense

193

195

199

177

185

587

529

Underwriting profit

$

78

$

95

$

88

$

128

$

118

$

261

$

372

Included in results above:

Current accident year catastrophe losses:

Catastrophe reinstatement premium

$

-

$

2

$

-

$

(1)

$

1

$

2

$

1

Catastrophe losses

17

6

3

8

2

26

3

Total current accident year catastrophe losses

$

17

$

8

$

3

$

7

$

3

$

28

$

4

Prior year loss reserve development (favorable) / adverse

$

(22)

$

(24)

$

(27)

$

(50)

$

(42)

$

(73)

$

(140)

Combined ratio:

Loss and LAE ratio

63.1%

59.2%

59.2%

55.4%

55.3%

60.5%

54.3%

Underwriting expense ratio

26.3%

27.4%

28.3%

25.9%

27.3%

27.3%

26.8%

Combined ratio

89.4%

86.6%

87.5%

81.3%

82.6%

87.8%

81.1%

Combined ratio excl. catastrophe losses and prior year reserve development

90.0%

89.0%

90.9%

87.5%

88.5%

90.0%

88.1%

Loss and LAE components:

Current accident year, excluding catastrophe losses

63.7%

61.6%

62.6%

61.6%

61.2%

62.7%

61.3%

Current accident year catastrophe losses

2.3%

1.0%

0.4%

1.1%

0.4%

1.2%

0.1%

Prior accident year loss reserve development

(2.9%)

(3.4%)

(3.8%)

(7.3%)

(6.3%)

(3.4%)

(7.1%)

Loss and LAE ratio

63.1%

59.2%

59.2%

55.4%

55.3%

60.5%

54.3%

Three Months Ended

Nine Months Ended

9/30/23

6/30/23

3/31/23

12/31/22

9/30/22

9/30/23

9/30/22

Gross written premiums

$

322

$

298

$

222

$

237

$

232

$

842

$

645

Ceded reinsurance premiums

(61)

(58)

(38)

(38)

(56)

(157)

(133)

Net written premiums

261

240

184

199

176

685

512

Change in unearned premiums

(29)

(45)

12

(6)

(5)

(62)

(7)

Net earned premiums

232

195

196

193

171

623

505

Loss and LAE

93

79

71

66

80

243

172

Underwriting expense

110

106

99

94

76

315

252

Underwriting profit

$

29

$

10

$

26

$

33

$

15

$

65

$

81

Included in results above:

Current accident year catastrophe losses:

Catastrophe reinstatement premium

$

-

$

-

$

-

$

(10)

$

13

$

-

$

13

Catastrophe losses

22

19

4

7

21

45

26

Total current accident year catastrophe losses

$

22

$

19

$

4

$

(3)

$

34

$

45

$

39

Prior year loss reserve development (favorable) / adverse

$

(10)

$

(11)

$

(3)

$

(8)

$

(11)

$

(24)

$

(39)

Combined ratio:

Loss and LAE ratio

39.8%