Q4 2023 Investor Supplement

American Financial Group, Inc.

Investor Supplement - Fourth Quarter 2023

February 6, 2024

American Financial Group, Inc.

Corporate Headquarters

Great American Insurance Group Tower 301 E Fourth Street

Cincinnati, OH 45202 513 579 6739

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

Page 2

American Financial Group, Inc.

Financial Highlights

(in millions, except per share information)

									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%

Excludes unrealized gains (losses) related to fixed maturity investments, a reconciliation to the GAAP measure is on page 13.
Excludes accumulated other comprehensive income.

Page 3

American Financial Group, Inc.

Summary of Earnings

($ in millions)

									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

Page 4

American Financial Group, Inc. Earnings Per Share Summary (in millions, except per share information)

									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

Page 5

American Financial Group, Inc.

Property and Casualty Insurance - Summary Underwriting Results (GAAP) ($ in millions)

									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%

Page 6

American Financial Group, Inc. Specialty - Underwriting Results (GAAP) ($ in millions)

									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%

Page 7

American Financial Group, Inc.

Property and Transportation - Underwriting Results (GAAP) ($ in millions)

									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%

Page 8

American Financial Group, Inc.

Specialty Casualty - Underwriting Results (GAAP) ($ in millions)

									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%

Page 9

American Financial Group, Inc.

Specialty Financial - Underwriting Results (GAAP) ($ in millions)

									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:
Loss and LAE ratio			34.8%					39.8%					40.9%					36.0%					33.8%					37.8%		34.1%
Underwriting expense ratio			46.5%					47.8%					54.1%					50.5%					49.3%					49.5%		49.6%
Combined ratio			81.3%					87.6%					95.0%					86.5%					83.1%					87.3%		83.7%
Combined ratio excl. catastrophe losses and prior year reserve development			82.7%					82.5%					91.1%					85.7%					85.3%					85.3%		85.6%
Loss and LAE components:
Current accident year, excluding catastrophe losses			36.2%					34.7%					37.0%					35.2%					36.0%					35.8%		36.0%
Current accident year catastrophe losses			2.0%					9.3%					9.6%					2.2%					1.9%					5.7%		4.9%
Prior accident year loss reserve development			(3.4%)				(4.2%)				(5.7%)				(1.4%)				(4.1%)						(3.7%)		(6.8%)
Loss and LAE ratio			34.8%					39.8%					40.9%					36.0%					33.8%					37.8%		34.1%

Page 10

Attachments

Disclaimer

American Financial Group Inc. published this content on 06 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 February 2024 22:09:49 UTC.