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]

Financial Performance - Net earned premiums for property and casualty insurance increased to $1,250 million for the three months ended June 30, 2021, compared to $1,184 million for the same period in 2020, representing a growth of 5.6%[10] - Total revenues for the six months ended June 30, 2021, were $3,040 million, up from $2,500 million in the same period of 2020, indicating a year-over-year increase of 21.6%[10] - Net earnings attributable to shareholders for the three months ended June 30, 2021, were $1,002 million, compared to a loss of $137 million in the same period of 2020[10] - Earnings per diluted share from continuing operations increased to $2.81 for the six months ended June 30, 2021, compared to a loss of $0.31 in the same period of 2020[10] - Net earnings for the three months ended June 30, 2021, were $1,002 million, compared to $167 million for the same period in 2020, representing a significant increase[12] - Net earnings for the six months ended June 30, 2021, were $1,421 million, compared to a net loss of $137 million for the same period in 2020[20] - Total comprehensive income for the three months ended June 30, 2021, was $225 million, down from $1,188 million in the prior year, primarily due to other comprehensive losses[12] Assets and Liabilities - Total assets decreased from $73,710 million in December 2020 to $28,780 million in June 2021, a decline of approximately 61%[7] - Total liabilities decreased from $66,921 million in December 2020 to $23,179 million in June 2021, a reduction of approximately 65%[7] - Shareholders' equity decreased from $6,789 million in December 2020 to $5,601 million in June 2021, a decline of approximately 17.5%[7] - The company’s total cash and investments increased from $13,494 million in December 2020 to $16,125 million in June 2021, an increase of approximately 19.5%[7] Investment Income - The company reported net investment income of $164 million for the three months ended June 30, 2021, compared to $88 million for the same period in 2020, reflecting an increase of 86.4%[10] - Net investment income for the three months ended June 30, 2021, was $299 million, down from $382 million for the same period in 2020, a decrease of 21.7%[56] - Net investment income for the property and casualty insurance segment was $143 million for the three months ended June 30, 2021, compared to $72 million for the same period in 2020, an increase of 98.6%[70] Cash Flow - Net cash provided by operating activities was $970 million for the six months ended June 30, 2021, down from $1,087 million in 2020[20] - Net cash provided by investing activities was $661 million in 2021, a significant improvement from $(1,296) million in 2020[20] - Net cash used in financing activities was $1.08 billion for the first six months of 2021, a decrease of $1.67 billion compared to net cash provided of $593 million in the same period of 2020[179] Shareholder Returns - Dividends paid during the period were $1,232 million, equating to $14.50 per share[15] - AFG paid a special cash dividend of $14.00 per share in June 2021, totaling approximately $1.19 billion, compared to $81 million in the first six months of 2020[180] - AFG repurchased 2,674,222 shares of its Common Stock for $306 million during the first six months of 2021, compared to $137 million in the same period of 2020[182] Discontinued Operations - AFG completed the sale of its Annuity business to MassMutual for $3.57 billion, realizing a net gain of $656 million from the transaction[53] - The Annuity business results have been reported as discontinued operations starting from Q1 2021, with prior periods adjusted accordingly[53] - Cash proceeds from the sale of the annuity business amounted to $3,537 million, with total net proceeds reaching $3,561 million after related expenses[59] Insurance Reserves and Claims - The establishment of insurance reserves, particularly for asbestos and environmental-related claims, remains a critical accounting policy for AFG[170] - The company experienced a net decrease in the provision for claims of prior years due to lower than anticipated claim frequency and severity in various business segments[151] - AFG's total unpaid losses and LAE included in the balance sheet at the end of the period was $10,498 million, compared to $10,321 million in the previous period[151] Debt and Capital Structure - Long-term debt increased from $1.96 billion at December 31, 2020, to $2.29 billion, representing a rise of 16.8%[94] - The ratio of debt to total capital, including subordinated debt, was 27.0% as of June 30, 2021, compared to 26.6% in 2020[173] - AFG has a revolving credit facility allowing borrowing up to $500 million, with no amounts borrowed as of June 30, 2021[134] Market and Economic Conditions - The company anticipates continued impacts from the COVID-19 pandemic, affecting claim frequency and business operations[168] - AFG's insurance subsidiaries maintained capital at or above levels required by ratings agencies, ensuring financial stability amid ongoing pandemic uncertainties[167] Fair Value Measurements - Approximately 5% of total assets of continuing operations carried at fair value as of June 30, 2021, were classified as Level 3 assets[84] - The total assets of continuing operations accounted for at fair value were $15.809 billion as of June 30, 2021[83] - The company reported a total unrealized gain on fixed maturities of $205 million for the three months ended June 30, 2021[118]

Financial Data and Key Metrics Changes - AFG reported core net operating earnings of $2.39 per share, a 257% increase year-over-year, driven by higher underwriting profit in Specialty Property and Casualty insurance operations and increased net investment income [7][10] - The annualized core operating return on equity for the second quarter was 14.7% [7] - Net earnings per share for Q2 2021 was $11.70, including after-tax noncore items totaling $9.31 per share [8] Business Line Data and Key Metrics Changes - The Property & Casualty Insurance segment achieved record pretax core operating earnings of $288 million, up $172 million from the prior year [10] - Specialty Property and Casualty operations generated an underwriting profit of $153 million, a 183% increase from the previous year, with a combined ratio of 87.9% [11][12] - The Property and Transportation Group reported an underwriting profit of $62 million, up from $33 million year-over-year, with a combined ratio of 86.6% [16] - Specialty Casualty Group's underwriting profit increased to $71 million from $27 million, with a combined ratio of 87% [18] - Specialty Financial Group reported an underwriting profit of $21 million, compared to a loss in the previous year, with a combined ratio of 86.4% [19] Market Data and Key Metrics Changes - Gross and net written premiums for Q2 2021 increased by 26% and 22% respectively compared to the same period in 2020 [14] - Average renewal pricing across the Property and Casualty Group was up approximately 9%, with a 12% increase excluding workers' compensation [13] - The company expects net written premiums for 2021 to be 10% to 13% higher than the $5 billion reported in 2020 [21] Company Strategy and Development Direction - The company plans to focus exclusively on the specialty P&C market following the sale of its Annuity business, which generated substantial cash and excess capital [28] - AFG aims to utilize its excess capital for opportunistic repurchases, special dividends, and growth through acquisitions and startups [30] - The company is enthusiastic about opportunities for both starting new businesses and making acquisitions over the next 12 to 24 months [43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance of the commercial auto business and projected double-digit growth in that segment [40] - The company is actively managing inflationary trends and believes it is effectively addressing potential social inflation impacts [46][49] - AFG expects to maintain significant excess capital and liquidity throughout 2021 and beyond, with no debt maturities before 2026 [30] Other Important Information - AFG completed the sale of its Annuity business for $3.5 billion, recognizing an after-tax noncore gain of $697 million [25][28] - The company declared a special one-time cash dividend of $14 per share totaling $1.2 billion, followed by an additional $2 per share special dividend [28][30] Q&A Session Summary Question: About the Property and Transportation segment's core loss ratio - Management indicated that the increase in core loss ratio is due to a return to a more normal economic environment and that guidance reflects their actuarial reviews [32][33] Question: On the strong expense ratio improvement - The improvement is attributed to strong growth in written premiums and higher ceding commissions, benefiting from fixed underwriting expenses [34][35] Question: Competitive forces in the commercial auto business - Management is pleased with the performance and growth in the commercial auto segment, indicating ongoing opportunities for price increases and strong growth [40] Question: M&A market perspective - The company sees a steady stream of acquisition opportunities and remains selective, focusing on accretive acquisitions with long-term double-digit returns [42][43] Question: Impact of CPI inflation on insurance companies - Management discussed their proactive approach to managing inflation and how they adjust loss projections based on current and prospective trends [46][49] Question: Competitive environment for workers' compensation - Management noted a reasonable competitive environment, with expectations for pricing to stabilize and potentially increase in the future [51][52] Question: Employee return from COVID-19 - The company has implemented a staged return to work, with plans for a hybrid work schedule post-Labor Day, emphasizing employee safety and flexibility [60][61]

American Financial Group, Inc. (NYSE:AFG) Q1 2021 Earnings Conference Call May 5, 2021 11:30 AM ET Company Participants Diane Weidner - Vice President, Investor Relations Carl Lindner III - Co-CEOs of American Financial Group Craig Lindner - Co-CEOs of American Financial Group Brian Hertzman - AFG's CFO Conference Call Participants Paul Newsome - Piper Sandler Greg Peters - Raymond James Kim Speck - KBW Operator Good day, and thank you for standing by. Welcome to the American Financial Group 2021 First Quar ...

____________________________________________________________________________________________ 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, 2021 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. Inco ...

________________________________________________________________________________________________________________________________________________________________________ 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, 2020 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____ ...

American Financial Group, Inc. (NYSE:AFG) Q4 2020 Earnings Conference Call February 4, 2021 11:30 AM ET Company Participants Diane Weidner - Assistant Vice President of Investor Relations Carl Lindner III - Co-President & Co-Chief Executive Officer Craig Lindner - Co-President & Co-Chief Executive Officer Brian Hertzman - Vice President & Controller Conference Call Participants Mike Zaremski - Credit Suisse Paul Newsome - Piper Sandler & Co. Gregory Peters - Raymond James & Associates, Inc. Meyer Shields - ...