American Financial Group, Inc. (NYSE:AFG) Q1 2022 Earnings Conference Call May 5, 2022 11:30 AM ET Company Participants Diane Weidner - Vice President, Investor Relations Carl Lindner - Co-Chief Executive Officer Craig Lindner - Co-Chief Executive Officer Brian Hertzman - Chief Financial Officer Conference Call Participants Paul Newsome - Piper Sandler James Bach - KBW Rudy Miller - Miller Capital John Hanson - Private Investor Operator Good day and thank you for standing by. Welcome to the American Financi ...

American Financial Group, Inc. (NYSE:AFG) Q4 2021 Earnings Conference Call February 10, 2022 11:30 AM ET Company Participants Diane Weidner – Vice President-Investor Relations Carl Lindner III – Co-Chief Executive Officer Craig Lindner – Co-Chief Executive Officer Conference Call Participants Derek Han – KBW Mike Zaremski – Wolfe Research Operator Good day and thank you for standing by. Welcome to the American Financial Group 2021 Fourth Quarter and Full Year Results Conference Call. At this time, all parti ...

Financial Data and Key Metrics Changes - AFG reported core net operating earnings of $2.71 per share, a 96% increase year-over-year, primarily due to higher underwriting profit and increased net investment income [7][14] - Annualized core operating return on equity was nearly 18% for the third quarter [7] - Pre-tax core operating earnings in the Property and Casualty Insurance segment were 60% higher than the prior year [5][14] Business Line Data and Key Metrics Changes - Specialty Property and Casualty Insurance operations generated an underwriting profit of $169 million, a 63% increase year-over-year [14] - The Specialty Casualty Group reported an underwriting profit of $110 million, compared to $53 million last year, with a combined ratio of 82% [20] - The Specialty Financial Group reported an underwriting profit of $26 million, up from $13 million in the prior year, with a combined ratio of 84.2% [22] Market Data and Key Metrics Changes - Gross and net written premiums for the third quarter of 2021 were up 19% and 16% respectively compared to the same period last year [15] - Average renewal pricing across the entire Property and Casualty Group was up approximately 11% for the quarter, with a 13% increase excluding workers' compensation [15][16] Company Strategy and Development Direction - The company continues to focus on opportunistic growth through acquisitions and internal growth, with a strong emphasis on maintaining a disciplined approach to underwriting and pricing [12][27] - AFG's investment strategy includes a significant focus on alternative investments, particularly in real estate, which has shown strong performance [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strong market conditions for the Property and Casualty business, citing disciplined operations and lower catastrophe exposure as key factors [5][14] - The company raised its core net operating earnings guidance for 2021 to a range of $10.10 to $10.70 per share, reflecting strong performance and expectations for continued growth [25][26] Other Important Information - AFG declared a special cash dividend of $4 per share, with a total of $24 per share in special dividends declared year-to-date [12] - The company has approximately $3 billion in excess capital, providing flexibility for share repurchases and additional dividends [11][12] Q&A Session Summary Question: Should the excess capital position be reconsidered in light of debt leverage levels? - Management acknowledged that debt leverage levels are a limiting factor on the use of excess capital for share repurchases or special dividends [32] Question: Has the M&A environment changed? - Management indicated that the M&A environment remains steady, with ongoing opportunities in the $20 million to $500 million range [34] Question: What is the outlook for pricing levels in the industry? - Management noted that continued low interest rates and social inflation are influencing pricing levels, with a cautious approach being taken in the longer-tail lines [36] Question: How is employee retention and recruitment being managed? - Management reported that overall retention rates are aligned with historical trends, though recruiting talent is becoming more challenging [43] Question: What are the expectations for alternative investments in 2022? - Management expressed confidence in their positioning in multi-family investments but refrained from providing a precise prediction for returns [49]