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 June 30, 2023 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, Cinci ...

American Financial Group, Inc. (NYSE:AFG) Q2 2023 Results Conference Call August 3, 2023 11:30 AM ET Company Participants Diane Weidner - VP, IR Carl Lindner - Co-CEO Craig Lindner - Co-CEO Brian Hertzman - CFO Conference Call Participants Paul Newsome - Piper Sandler Meyer Shields - Keefe, Bruyette, & Woods Michael Zaremski - BMO Operator Good day, and thank you for standing by. Welcome to the American Financial Group 2023 Second Quarter Results Conference Call. [Operator Instructions] Please be advised th ...

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, 2023 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 2023 Earnings Conference Call May 3, 2023 11:30 AM ET Company Participants Diane Weidner - Vice President of 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 Michael Zaremski - BMO Gregory Peters - Raymond James Jing Li - KBW Operator Good day, and thank you for standing by. Welcome to the American Financial Gro ...

Review of First Quarter 2023 May 3, 2023 Forward Looking Statements Certain statements made during this call, as well as included in this document, are not historical facts and may be considered "forwardlooking statements" and are based on estimates, assumptions and projections which management believes are reasonable, but by their nature subject to risks and uncertainties. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. The reasons which could cau ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended December 31, 2022 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 | --- | --- | --- | |------------------------------------------------------------------|---------------------|----------------------- ...

Financial Data and Key Metrics Changes - AFG's core net operating earnings were $11.63 per share for the full year 2022, with a core operating return on equity of 21.2%, up from 18.6% in 2021 [9][10] - The fourth quarter 2022 core net operating earnings per share were $2.99, resulting in an annualized core return on equity of 22.3% [11] - The company returned $1.23 billion to shareholders in 2022, including over $1 billion in special dividends [10][17] Business Line Data and Key Metrics Changes - Specialty Property & Casualty businesses achieved record full year underwriting profit and pretax core operating earnings [21] - The combined ratio for the fourth quarter was 86.6%, up from 80.7% in the prior year, but excluding crop business, the ratio was comparable to the previous year [22][23] - Gross and net written premiums increased by 6% and 5%, respectively, in the fourth quarter of 2022 compared to the prior year [23] Market Data and Key Metrics Changes - The average renewal pricing across the Property and Casualty Group, excluding workers' comp, was up approximately 6% for the quarter [24] - The company expects net written premiums for 2023 to be 3% to 5% higher than the $6.2 billion reported in 2022 [36] Company Strategy and Development Direction - AFG aims to maintain adequate pricing and has achieved overall rate increases across its specialty book for 26 consecutive quarters [25] - The company is focused on capital management and returning capital to shareholders, reflecting confidence in its financial future [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted increased competition in certain specialty businesses, particularly in California workers' comp and excess liability [40] - The company expects a favorable property and casualty market in 2023, with core net operating earnings projected to be in the range of $11 to $12 per share [34] Other Important Information - AFG's investment portfolio totaled $14.5 billion, with pretax unrealized losses on fixed maturity portfolio at $630 million due to rising interest rates [11][12] - The company declared a special dividend of $4 per share payable on February 28, 2023, in addition to the regular quarterly dividend [17] Q&A Session Summary Question: Competitive environment for specialty businesses - Management acknowledged increased competition in certain areas, particularly in California workers' comp and excess liability, while noting that most other businesses remain stable [40][41] Question: Talent pool and growth - Management indicated that talent acquisition has not been a limiting factor for growth, attributing success to a strong company culture and reputation [43][44] Question: Renewal rates outlook - Management noted that the deceleration in average renewal rates is influenced by workers' comp and competitive pressures in certain lines of business [45][46] Question: Changes in loss trends - Management stated that prospective loss ratio trends have remained stable, with no significant changes noted in the transportation segment [50][51] Question: Investment portfolio outlook - Management provided insights on the expected return of 7% on alternative investments, reflecting a more normalized environment compared to previous years [52][55] Question: Adverse reserve development in specialty segment - Management explained that adverse development was primarily due to social inflation in excess liability lines, with a conservative approach to reserving [57][58] Question: Macroeconomic growth underpinning premium growth expectations - Management indicated that premium growth expectations are based on various economic factors rather than a specific GDP number, reflecting a slowing economy [60][61]

Financial Data and Key Metrics Changes - AFG reported core net operating earnings of $2.24 per share, down from $2.71 per share in Q3 2021, primarily due to lower returns in the alternative investment portfolio [9][10] - Net earnings included after-tax non-core net realized losses on securities of $28 million, or $0.32 per share, with $21 million or $0.24 per share from mark-to-market losses on equity securities [9][10] - The annualized core operating return was over 17% for the quarter, despite elevated industry catastrophe losses [6][7] Business Line Data and Key Metrics Changes - Property & Casualty net investment income decreased by 12% year-over-year, while excluding alternative investments, net investment income increased by 35% due to rising interest rates [12][13] - Specialty P&C insurance operations generated an underwriting profit of $158 million, a 7% decrease from $169 million in Q3 2021, with a combined ratio of 91.1%, up from 89 in the prior year [18][19] - The Specialty Casualty Group reported an underwriting profit of $118 million, up from $110 million in the prior year, with a combined ratio of 82.6% [26][27] Market Data and Key Metrics Changes - Gross and net written premiums increased by 19% and 15% respectively in Q3 2022 compared to the prior year, driven by new business opportunities and favorable renewal rates [20][21] - Average renewal pricing across the P&C group, excluding workers' compensation, was up about 6% for the quarter [21][32] - The Specialty Financial Group reported a 91.3% combined ratio for Q3 2022, an increase of 7.1 points over the prior year [29] Company Strategy and Development Direction - The company continues to focus on returning capital to shareholders, announcing a special cash dividend of $2 per share, in addition to the regular quarterly dividend [7][8] - AFG's investment strategy remains disciplined yet opportunistic, with a focus on high-quality medium-duration fixed maturity securities [11][14] - The company expects continued favorable conditions in the property and casualty market, with opportunities for growth from rate increases and exposure growth [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to achieve continued price increases in 2023, despite competitive pressures in certain areas [40][41] - The company anticipates that the macro environment, including social inflation and rising reinsurance costs, will create opportunities for pricing adjustments [40][42] - AFG's guidance for core net operating earnings in 2022 has been narrowed to a range of $11 to $11.75 per share, reflecting strong performance in the first nine months [33] Other Important Information - AFG's book value per share plus dividends declined by approximately 2% in Q3 2022, reflecting unrealized losses on fixed maturities due to rising interest rates [17] - The company has declared $12 per share in special dividends in 2022, maintaining a strong excess capital position [17][8] Q&A Session Summary Question: Thoughts on pricing trends in P&C for next year - Management noted that higher levels of catastrophes and increased reinsurance pricing are expected to create opportunities for price increases in 2023 [40][41] Question: Concerns about inflation's impact on Specialty Casualty business - Management is adjusting pricing based on higher prospective loss ratio trends and remains confident in the profitability of their excess and umbrella liability businesses [44][45] Question: Outlook for the workers' compensation business - Management indicated that while the overall results are strong, the California subsidiary is projected to have an accident year underwriting loss, but overall profitability is expected to remain stable [51][52] Question: Impact of crop on underwriting ratios - Management clarified that crop does not significantly impact the pricing index for the Property and Transportation segment due to its unique nature [60][61] Question: Debt repurchase penalties - Management confirmed that they could buy back debt at a discount in the open market, with most debt having a make-whole call provision [62][63] Question: Investment portfolio and interest rate trajectory - Management believes inflation has peaked and is comfortable investing in intermediate-term high-grade paper while extending the duration of the portfolio [66]