American Financial Group, Inc. (AFG) is well-positioned for growth, driven by new business opportunities, increased exposures and a good renewal rate environment, improved combined ratio, stronger underwriting profit and effective capital deployment.Growth ProjectionsThe Zacks Consensus Estimate for American Financial’s 2024 earnings per share indicates a year-over-year increase of 3.6%. The consensus estimate for revenues is pegged at $8 billion, implying a year-over-year improvement of 6.3%.The consensus ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____ to ____ Commission File No. 1-13653 AMERICAN FINANCIAL GROUP, INC. Incorporated under the Laws of Ohio IRS Employer I.D. No. 31-1544320 301 East Fourth Street, Cinc ...

American Financial Group, Inc. (NYSE:AFG) Q1 2024 Earnings Conference Call May 2, 2024 11:30 AM ET Company Participants Diane Weidner - Vice President, Investor Relations Carl Lindner - Co-Chief Executive Officer and Director Craig Lindner - Co-Chief Executive Officer and Director Brian Hertzman - Senior Vice President and Chief Financial Officer Conference Call Participants Charles Lederer - Citigroup Michael Zaremski - BMO Capital Markets Andrew Andersen - Jefferies Meyer Shields - KBW Operator Thank you ...

Core Viewpoint - American Financial Group, Inc. (AFG) reported a decline in net operating earnings per share for Q1 2024, missing estimates due to lower investment income and higher expenses [1][2] Financial Performance - AFG's total revenues reached $1.8 billion, reflecting a 5.1% year-over-year increase, but fell short of estimates by 0.2% [2] - The net investment income decreased by 8.7% year over year to $198 million, which was below the expected $226.8 million [2] - Total costs and expenses rose by 8.5% year over year to $1.6 billion, lower than the estimate of $1.7 billion [2] Segment Analysis - The Specialty P&C Insurance segment generated $1.6 billion in net written premiums, an 8% increase year over year, driven by strong performance in various sub-segments [3] - Net written premiums in the Property & Transportation Group grew by 7% to $591 million, while the Specialty Casualty Group saw a 4% increase to $751 million [3] - Specialty Financial net written premiums surged by 27% year over year, contrasting with a 5% decline in other divisions [3] Underwriting and Losses - Pre-tax core operating earnings for the P&C Insurance segment were $340 million, down 2.8% year over year [4] - The underwriting profit decreased by 0.6% to $154 million, primarily due to lower profits in the Specialty Casualty Group [4] - Catastrophe losses amounted to $34 million, compared to $31 million in the previous year [4] Financial Position - AFG's cash and investments totaled $15.2 billion, a slight decline of 0.05% from the end of 2023 [5] - Long-term debt remained flat at $1.4 billion as of March 31, 2024 [5] - The book value per share was $54.32, down 0.7% from the end of 2023, with an annualized return on equity of 21.2%, an increase of 230 basis points year over year [5] Dividend Declaration - AFG declared cash dividends of $3.21 per share in Q1 2024, which included a special dividend of $2.50 per share paid in February [6]

Financial Performance - American Financial Group reported Q1 2024 net earnings of $242 million ($2.89 per share), up from $212 million ($2.49 per share) in Q1 2023, reflecting a year-over-year increase of 14.1%[1] - Net earnings for the first quarter of 2024 were $242 million, compared to $212 million in the first quarter of 2023, reflecting an increase of 14.2%[35] - Diluted earnings per share rose to $2.89 for Q1 2024, compared to $2.49 for Q1 2023, marking a 16.1% increase[35] - Core net operating earnings for Q1 2024 were $231 million ($2.76 per share), down from $247 million ($2.89 per share) in Q1 2023, indicating a decrease of 6.5%[2] - Core net operating earnings for the first quarter of 2024 were $231 million, down from $247 million in Q1 2023, a decrease of 6.5%[41] Revenue and Premiums - For the three months ended March 31, 2024, total revenues increased to $1,906 million, up from $1,740 million in the same period of 2023, representing a growth of 9.5%[35] - Gross and net written premiums increased by 8% in Q1 2024 compared to the prior year, driven by additional crop premiums from the Crop Risk Services acquisition and favorable renewal rates[11] - Gross written premiums in the Specialty P&C operations reached $2,336 million, an 8% increase from $2,155 million in the same quarter last year[38] - The Specialty Financial Group reported a 26% increase in gross written premiums in Q1 2024, primarily driven by growth in the financial institutions business[19] Investment Performance - The annualized return on equity (ROE) for Q1 2024 was 21.2%, compared to 18.9% in Q1 2023, showing an improvement of 1.3 percentage points[1] - The annualized return on alternative investments was approximately 9.0% for Q1 2024, down from 14.2% in the prior year quarter[21] - AFG recorded net realized gains of $11 million ($0.13 per share) in Q1 2024, compared to net realized losses of $37 million ($0.42 per share) in Q1 2023[22] Operational Metrics - The Specialty P&C insurance operations achieved a combined ratio of 90.1% in Q1 2024, slightly higher than the 89.2% reported in Q1 2023[10] - The combined ratio for the Specialty Group was 90.1% for Q1 2024, slightly higher than 89.2% in Q1 2023[38] - The loss and LAE ratio for the Specialty Group was 58.6% for Q1 2024, compared to 57.0% in Q1 2023[38] Shareholder Returns and Capital Management - AFG plans to return capital to shareholders through regular and special cash dividends and opportunistic share repurchases while seeking organic growth and acquisition opportunities[9] - AFG's book value per share was $50.57 at March 31, 2024, with a growth of 5.6% when including dividends for the quarter[3] - Shareholders' equity at March 31, 2024, was $4,240 million, down from $4,258 million at December 31, 2023[35] Upcoming Events - The company will hold a conference call to discuss the first quarter results on May 2, 2024, at 11:30 a.m. (ET)[28]

American Financial Group (AFG) reported $1.88 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 5.1%. EPS of $2.76 for the same period compares to $2.89 a year ago.The reported revenue represents a surprise of -0.19% over the Zacks Consensus Estimate of $1.89 billion. With the consensus EPS estimate being $2.77, the EPS surprise was -0.36%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...

Industry Overview - The Zacks Property and Casualty Insurance industry is facing challenges such as increased catastrophe events leading to reduced underwriting profit [1] - Estimated total economic losses in 2023 were $380 billion, with insured losses at $118 million [1] - The total net underwriting loss reached $38 billion in 2023, marking a 10-year high, primarily due to weather-related losses, high inflation, and reinsurance pricing pressure [1] - The combined ratio was reported at 103.7, with catastrophe losses contributing 780 basis points, and an expected combined ratio of 100.7 for 2024 [1] - Despite these challenges, the P&C insurance industry has gained 13.5% year-to-date, outperforming the S&P 500 Composite's growth of 6.9% and the Finance sector's 2.6% rise [1] Growth Prospects - Global commercial insurance prices have risen for 25 consecutive quarters, indicating a positive pricing environment [2] - Gross premiums are projected to increase sixfold to $722 billion by 2030, with a 5.5% growth forecast for 2024 [2] Interest Rate Environment - The insurance industry is sensitive to interest rates, with the Fed making four hikes in 2023, totaling 11 since March 2022 [3] - A stable interest rate environment is beneficial for insurers, particularly long-tail insurers [3] Company Highlights Axis Capital Holdings Limited (AXS) - Market capitalization of $5.19 billion, with a focus on specialty insurance and reinsurance products [6] - Current dividend yield of 2.8%, with a payout ratio of 18 and a five-year annualized dividend growth rate of 2.26% [6] - The company repurchased shares worth $17 million in 2023 and has $100 million remaining for share repurchases through December 2024 [6] Cincinnati Financial Corporation (CINF) - Market capitalization of $18.38 billion, focusing on property casualty insurance in the U.S. [7] - Dividend yield of 2.5%, with a payout ratio of 50 and a five-year annualized dividend growth rate of 7.22% [7] - The company has a history of increasing dividends for 64 consecutive years and approved an 8% hike in January 2024 [7] CNA Financial Corporation (CNA) - Market capitalization of $11.87 billion, offering commercial P&C insurance products [8] - Current dividend yield of 4%, with a payout ratio of 36 and a five-year annualized dividend growth rate of 4.35% [8] - The company announced a special dividend of $2 per share in February 2024 [8] American Financial Group (AFG) - Market capitalization of $10.83 billion, providing specialty P&C insurance products [10] - Dividend yield of 2.2%, with a payout ratio of 27 and a five-year annualized dividend growth rate of 12.08% [10] - The company repurchased shares for $213 million in 2023 and declared a special cash dividend of $2.50 per share in February 2024 [11]

It has been about a month since the last earnings report for American Financial Group (AFG) . Shares have added about 5.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is American Financial due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. American Financial Q4 Earnin ...

American Financial Group, Inc.’s (AFG) rate increases, higher retentions in renewal business, a rise in average renewal pricing, stronger underwriting profit and improved guidance make it worth retaining in one’s portfolio.Growth ProjectionsThe Zacks Consensus Estimate for American Financial’s 2024 earnings is pegged at $11.02 per share, indicating a 4.3% increase from the year-ago reported figure on 4.2% higher revenues of $7.84 billion. The consensus estimate for 2025 earnings is pegged at $11.52 per shar ...

Core Viewpoint - American Financial Group, Inc. has elected Roger K. Newport to its Board of Directors, while Terry S. Jacobs will retire and not seek re-election at the 2024 Annual Meeting [1]. Group 1: Board Changes - Roger K. Newport has been elected as a director, bringing extensive experience from his previous role as CEO of AK Steel Holding Corporation [1][2]. - Terry S. Jacobs, a board member since 2003, will retire from the Board at the 2024 Annual Meeting, having made significant contributions during his tenure [1][3]. Group 2: Roger K. Newport's Background - Newport served as CEO of AK Steel from January 2016 until March 2020, and held various senior financial management roles at the company since 2012 [2]. - He has a Bachelor of Business Administration in Accounting from the University of Cincinnati and an MBA from Xavier University [3]. Group 3: Company Overview - American Financial Group is an insurance holding company based in Cincinnati, Ohio, primarily engaged in property and casualty insurance through Great American Insurance Group [5].