Q4 2023 Investor Supplement

American Financial Group, Inc.

Table of Contents - Investor Supplement - Fourth Quarter 2023

4

Section

Page

Table of Contents - Investor Supplement - Fourth 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 12/31/2023

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 12/31/2023

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 12/31/2023

24

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

25

G. Real Estate-Related Investments 12/31/2023

26

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

27

Three Months Ended

Twelve Months Ended

12/31/2023

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

Highlights

Net earnings

$

263

$

177

$

200

$

212

$

276

$

852

$

898

Core net operating earnings

238

208

202

247

255

895

993

Total assets

29,787

30,825

29,048

28,481

28,831

29,787

28,831

Adjusted shareholders' equity (a)

4,562

4,536

4,490

4,375

4,578

4,562

4,578

Property and Casualty net written premiums

1,445

2,061

1,667

1,519

1,338

6,692

6,206

Per share data

Diluted earnings per share

$

3.13

$

2.09

$

2.34

$

2.49

$

3.24

$

10.05

$

10.53

Core net operating earnings per share

2.84

2.45

2.38

2.89

2.99

10.56

11.63

Adjusted book value per share (a)

54.54

53.90

52.90

51.37

53.73

54.54

53.73

Dividends per common share

2.21

0.63

0.63

4.63

2.63

8.10

14.31

Financial ratios

Annualized retuon equity (b)

23.0%

15.7%

17.9%

18.9%

24.2%

18.8%

19.2%

Annualized core operating retuon equity (b)

20.9%

18.3%

18.2%

22.0%

22.3%

19.8%

21.2%

Property and Casualty combined ratio - Specialty:

Loss & LAE ratio

60.7%

66.7%

60.2%

57.0%

60.8%

61.5%

59.6%

Underwriting expense ratio

27.0%

25.5%

31.7%

32.2%

25.8%

28.8%

27.6%

Combined ratio - Specialty

87.7%

92.2%

91.9%

89.2%

86.6%

90.3%

87.2%

Three Months Ended

Twelve Months Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

Property and Casualty Insurance

Underwriting profit

$

211

$

142

$

124

$

154

$

218

$

631

$

776

Net investment income

161

170

191

207

159

729

683

Other income (expense)

(15)

(14)

(16)

(11)

(14)

(56)

(40)

Property and Casualty Insurance operating earnings

357

298

299

350

363

1,304

1,419

Interest expense of parent holding companies

(19)

(19)

(19)

(19)

(20)

(76)

(85)

Other expense

(34)

(22)

(22)

(23)

(25)

(101)

(86)

Pretax core operating earnings

304

257

258

308

318

1,127

1,248

Income tax expense

66

49

56

61

63

232

255

Core net operating earnings

238

208

202

247

255

895

993

Non-core items, net of tax:

Realized gains (losses) on securities

25

(15)

(1)

(37)

21

(28)

(92)

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

(7)

Other non-core items

-

-

-

-

-

-

4

Net earnings

$

263

$

177

$

200

$

212

$

276

$

852

$

898

Three Months Ended

Twelve Months Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

Core net operating earnings

$

238

$

208

$

202

$

247

$

255

$

895

$

993

Net earnings

$

263

$

177

$

200

$

212

$

276

$

852

$

898

Average number of diluted shares

83.817

84.745

85.172

85.378

85.350

84.774

85.324

Diluted earnings per share:

Core net operating earnings per share

$

2.84

$

2.45

$

2.38

$

2.89

$

2.99

$

10.56

$

11.63

Realized gains (losses) on securities

0.29

(0.17)

(0.02)

(0.42)

0.25

(0.33)

(1.06)

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

(0.09)

Other non-core items

-

-

-

-

-

-

0.05

Diluted earnings per share

$

3.13

$

2.09

$

2.34

$

2.49

$

3.24

$

10.05

$

10.53

Three Months Ended

Twelve Months Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

Property and Transportation

$

67

$

42

$

32

$

43

$

68

$

184

$

208

Specialty Casualty

114

78

95

88

128

375

500

Specialty Financial

45

29

10

26

33

110

114

Other Specialty

(14)

(6)

(14)

(2)

(12)

(36)

(42)

Underwriting profit - Specialty

212

143

123

155

217

633

780

Other core charges, included in loss and LAE

(1)

(1)

1

(1)

1

(2)

(4)

Underwriting profit - Property and Casualty Insurance

$

211

$

142

$

124

$

154

$

218

$

631

$

776

Included in results above:

Current accident year catastrophe losses:

Catastrophe reinstatement premium

$

1

$

-

$

2

$

-

$

(13)

$

3

$

5

Catastrophe losses

24

56

51

31

24

162

88

Total current accident year catastrophe losses

$

25

$

56

$

53

$

31

$

11

$

165

$

93

Prior year loss reserve development (favorable) / adverse

$

(56)

$

(43)

$

(62)

$

(63)

$

(59)

$

(224)

$

(285)

Combined ratio:

Property and Transportation

90.3%

94.8%

94.2%

91.0%

90.0%

92.8%

91.7%

Specialty Casualty

84.6%

89.4%

86.6%

87.5%

81.3%

87.0%

81.2%

Specialty Financial

81.3%

87.6%

95.0%

86.5%

83.1%

87.3%

83.7%

Other Specialty

118.9%

109.8%

122.2%

103.5%

118.1%

113.9%

117.1%

Combined ratio - Specialty

87.7%

92.2%

91.9%

89.2%

86.6%

90.3%

87.2%

Other core charges

0.1%

0.1%

(0.2%)

0.1%

(0.1%)

0.1%

0.1%

Combined ratio

87.8%

92.3%

91.7%

89.3%

86.5%

90.4%

87.3%

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

89.6%

91.5%

92.4%

91.5%

89.3%

91.2%

90.4%

Loss and LAE components:

Current accident year, excluding catastrophe losses

62.6%

66.0%

60.7%

59.3%

63.5%

62.4%

62.8%

Current accident year catastrophe losses

1.4%

3.1%

3.5%

2.2%

0.8%

2.6%

1.6%

Prior accident year loss reserve development

(3.2%)

(2.3%)

(4.2%)

(4.4%)

(3.6%)

(3.4%)

(4.7%)

Loss and LAE ratio

60.8%

66.8%

60.0%

57.1%

60.7%

61.6%

59.7%

Three Months Ended

Twelve Months Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

Gross written premiums

$

1,992

$

3,140

$

2,369

$

2,155

$

1,845

$

9,656

$

9,057

Ceded reinsurance premiums

(547)

(1,079)

(702)

(636)

(507)

(2,964)

(2,851)

Net written premiums

1,445

2,061

1,667

1,519

1,338

6,692

6,206

Change in unearned premiums

287

(206)

(160)

(82)

285

(161)

(121)

Net earned premiums

1,732

1,855

1,507

1,437

1,623

6,531

6,085

Loss and LAE

1,052

1,238

906

819

987

4,015

3,625

Underwriting expense

468

474

478

463

419

1,883

1,680

Underwriting profit

$

212

$

143

$

123

$

155

$

217

$

633

$

780

Included in results above:

Current accident year catastrophe losses:

Catastrophe reinstatement premium

$

1

$

-

$

2

$

-

$

(13)

$

3

$

5

Catastrophe losses

24

56

51

31

24

162

88

Total current accident year catastrophe losses

$

25

$

56

$

53

$

31

$

11

$

165

$

93

Prior year loss reserve development (favorable) / adverse

$

(57)

$

(44)

$

(61)

$

(64)

$

(58)

$

(226)

$

(289)

Combined ratio:

Loss and LAE ratio

60.7%

66.7%

60.2%

57.0%

60.8%

61.5%

59.6%

Underwriting expense ratio

27.0%

25.5%

31.7%

32.2%

25.8%

28.8%

27.6%

Combined ratio

87.7%

92.2%

91.9%

89.2%

86.6%

90.3%

87.2%

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

89.6%

91.5%

92.4%

91.5%

89.3%

91.2%

90.4%

Loss and LAE components:

Current accident year, excluding catastrophe losses

62.6%

66.0%

60.7%

59.3%

63.5%

62.4%

62.8%

Current accident year catastrophe losses

1.4%

3.0%

3.5%

2.2%

0.9%

2.5%

1.5%

Prior accident year loss reserve development

(3.3%)

(2.3%)

(4.0%)

(4.5%)

(3.6%)

(3.4%)

(4.7%)

Loss and LAE ratio

60.7%

66.7%

60.2%

57.0%

60.8%

61.5%

59.6%

Three Months Ended

Twelve Months Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

Gross written premiums

$

623

$

1,592

$

1,059

$

872

$

601

$

4,146

$

4,060

Ceded reinsurance premiums

(197)

(687)

(391)

(320)

(178)

(1,595)

(1,545)

Net written premiums

426

905

668

552

423

2,551

2,515

Change in unearned premiums

256

(77)

(134)

(77)

259

(32)

(28)

Net earned premiums

682

828

534

475

682

2,519

2,487

Loss and LAE

470

636

346

289

489

1,741

1,735

Underwriting expense

145

150

156

143

125

594

544

Underwriting profit

$

67

$

42

$

32

$

43

$

68

$

184

$

208

Included in results above:

Current accident year catastrophe losses:

Catastrophe reinstatement premium

$

2

$

-

$

-

$

-

$

(1)

$

2

$

3

Catastrophe losses

3

14

15

19

8

51

42

Total current accident year catastrophe losses

$

5

$

14

$

15

$

19

$

7

$

53

$

45

Prior year loss reserve development (favorable) / adverse

$

(12)

$

(14)

$

(21)

$

(37)

$

(13)

$

(84)

$

(92)

Combined ratio:

Loss and LAE ratio

69.0%

76.8%

64.8%

60.9%

71.8%

69.2%

69.8%

Underwriting expense ratio

21.3%

18.0%

29.4%

30.1%

18.2%

23.6%

21.9%

Combined ratio

90.3%

94.8%

94.2%

91.0%

90.0%

92.8%

91.7%

Combined ratio excl. catastrophe losses and prior year reserve development

91.5%

94.8%

95.1%

94.8%

90.8%

94.1%

93.5%

Loss and LAE components:

Current accident year, excluding catastrophe losses

70.2%

76.8%

65.7%

64.7%

72.6%

70.5%

71.6%

Current accident year catastrophe losses

0.6%

1.7%

2.9%

4.0%

1.0%

2.0%

1.9%

Prior accident year loss reserve development

(1.8%)

(1.7%)

(3.8%)

(7.8%)

(1.8%)

(3.3%)

(3.7%)

Loss and LAE ratio

69.0%

76.8%

64.8%

60.9%

71.8%

69.2%

69.8%

Three Months Ended

Twelve Months Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

Gross written premiums

$

1,069

$

1,226

$

1,012

$

1,061

$

1,007

$

4,368

$

4,115

Ceded reinsurance premiums

(369)

(397)

(319)

(339)

(352)

(1,424)

(1,387)

Net written premiums

700

829

693

722

655

2,944

2,728

Change in unearned premiums

37

(95)

18

(18)

31

(58)

(69)

Net earned premiums

737

734

711

704

686

2,886

2,659

Loss and LAE

438

463

421

417

381

1,739

1,453

Underwriting expense

185

193

195

199

177

772

706

Underwriting profit

$

114

$

78

$

95

$

88

$

128

$

375

$

500

Included in results above:

Current accident year catastrophe losses:

Catastrophe reinstatement premium

$

(1)

$

-

$

2

$

-

$

(1)

$

1

$

-

Catastrophe losses

9

17

6

3

8

35

11

Total current accident year catastrophe losses

$

8

$

17

$

8

$

3

$

7

$

36

$

11

Prior year loss reserve development (favorable) / adverse

$

(37)

$

(22)

$

(24)

$

(27)

$

(50)

$

(110)

$

(190)

Combined ratio:

Loss and LAE ratio

59.6%

63.1%

59.2%

59.2%

55.4%

60.3%

54.7%

Underwriting expense ratio

25.0%

26.3%

27.4%

28.3%

25.9%

26.7%

26.5%

Combined ratio

84.6%

89.4%

86.6%

87.5%

81.3%

87.0%

81.2%

Combined ratio excl. catastrophe losses and prior year reserve development

88.5%

90.0%

89.0%

90.9%

87.5%

89.6%

87.9%

Loss and LAE components:

Current accident year, excluding catastrophe losses

63.5%

63.7%

61.6%

62.6%

61.6%

62.9%

61.4%

Current accident year catastrophe losses

1.1%

2.3%

1.0%

0.4%

1.1%

1.2%

0.5%

Prior accident year loss reserve development

(5.0%)

(2.9%)

(3.4%)

(3.8%)

(7.3%)

(3.8%)

(7.2%)

Loss and LAE ratio

59.6%

63.1%

59.2%

59.2%

55.4%

60.3%

54.7%

Three Months Ended

Twelve Months Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

Gross written premiums

$

300

$

322

$

298

$

222

$

237

$

1,142

$

882

Ceded reinsurance premiums

(50)

(61)

(58)

(38)

(38)

(207)

(171)

Net written premiums

250

261

240

184

199

935

711

Change in unearned premiums

(6)

(29)

(45)

12

(6)

(68)

(13)

Net earned premiums

244

232

195

196

193

867

698

Loss and LAE

85

93

79

71

66

328

238

Underwriting expense

114

110

106

99

94

429

346

Underwriting profit

$

45

$

29

$

10

$

26

$

33

$

110

$

114

Included in results above:

Current accident year catastrophe losses:

Catastrophe reinstatement premium

$

-

$

-

$

-

$

-

$

(10)

$

-

$

3

Catastrophe losses

4

22

19

4

7

49

33

Total current accident year catastrophe losses

$

4

$

22

$

19

$

4

$

(3)

$

49

$

36

Prior year loss reserve development (favorable) / adverse

$

(8)

$

(10)

$

(11)

$

(3)

$

(8)

$

(32)

$

(47)

Combined ratio: