Financial Performance - Net earnings for Q4 2024 were $255 million, compared to $263 million in Q4 2023, representing a decrease of 3.0%[3] - Core net operating earnings for Q4 2024 were $262 million, up from $238 million in Q4 2023, reflecting an increase of 10.1%[3] - Diluted earnings per share for Q4 2024 were $3.03, compared to $3.13 in Q4 2023, indicating a decrease of 3.2%[6] - The company reported an underwriting profit of $202 million in Q4 2024, compared to $211 million in Q4 2023, a decrease of 4.3%[5] - The underwriting profit for the Specialty segment was $204 million for the three months ended December 31, 2024, compared to $212 million for the same period in 2023, showing a slight decrease of 3.8%[8] - The combined ratio for the three months ended December 31, 2024, was 124.7%, compared to 118.9% for the same period in 2023, indicating a decline in underwriting performance[13] Premiums and Underwriting - Property and Casualty net written premiums for Q4 2024 totaled $1,460 million, an increase from $1,445 million in Q4 2023, marking a growth of 1.0%[3] - For the three months ended December 31, 2024, the net earned premiums were $1,850 million, an increase from $1,732 million for the same period in 2023, representing a growth of 6.8%[8] - The gross written premiums for the Specialty segment reached $2,043 million for the three months ended December 31, 2024, up from $1,992 million in the same period of 2023, marking an increase of 2.6%[8] - The net written premiums for the Specialty segment were $1,460 million for the three months ended December 31, 2024, an increase from $1,445 million in the same period of 2023, representing a growth of 1.0%[8] Investment Income - Net investment income for Q4 2024 was $195 million, consistent with Q3 2024, and up from $161 million in Q4 2023, reflecting a year-over-year increase of 21.1%[5] - Net investment income for the twelve months ended December 31, 2024, was $784 million, up from $729 million for the same period in 2023, representing a 7.55% increase[19] - Total gross investment income for the twelve months ended December 31, 2024, reached $806 million, an increase from $745 million in 2023, reflecting an 8.19% growth[19] Assets and Equity - Total assets as of December 31, 2024, were $30,850 million, compared to $29,787 million at the end of 2023, representing an increase of 3.6%[3] - Shareholders' equity decreased to $4,466 million as of December 31, 2024, from $4,708 million as of September 30, 2024[15] - The book value per share as of December 31, 2024, was $53.18, compared to $50.91 a year earlier, reflecting a year-over-year increase of 4.9%[15] Catastrophe Losses - The total current accident year catastrophe losses amounted to $21 million for the three months ended December 31, 2024, compared to $25 million for the same period in 2023, reflecting a decrease of 16%[8] - The total current accident year catastrophe losses for the twelve months ended December 31, 2024, were $182 million, compared to $165 million for the previous year, reflecting an increase of 10.3%[8] - The total current accident year catastrophe losses for the Specialty Casualty segment amounted to $5 million for the three months ended December 31, 2024, compared to $16 million in the previous quarter, indicating a decrease in catastrophe-related losses[10] Ratios and Performance Metrics - The annualized return on equity for Q4 2024 was 21.3%, up from 19.0% in Q4 2023, reflecting an improvement of 2.3 percentage points[3] - The Property and Casualty combined ratio for Specialty was 89.0% in Q4 2024, down from 94.3% in Q3 2024, indicating improved underwriting performance[3] - The combined ratio excluding catastrophe losses and prior year reserve development was 86.1% for the three months ended December 31, 2024, compared to 89.6% in the same period of 2023, showing improved operational efficiency[8] Investment Portfolio - The total cash and investments as of December 31, 2024, amounted to $15,852 million, a 3.85% increase from $15,263 million on December 31, 2023[18] - The average yield on fixed maturities before investment expenses for the twelve months ended December 31, 2024, was 5.02%, compared to 4.67% for the previous year, indicating a 0.35 percentage point increase[19] - The investment-grade securities constitute 94% of the total portfolio, with $9,881 million in fair value, while non-investment grade securities account for only 3%[25] Real Estate Investments - Real estate-related investments accounted for using the equity method total $1,320 million, with multi-family investments representing 91% of this value[42] - The occupancy rate for multi-family investments is 94%, with a collection rate of 97%[42] - The occupancy rate for office properties is 88%, with a collection rate of 100%[42]

Financial Performance - American Financial Group (AFG) reported revenue of $2.08 billion for the quarter ended December 2024, reflecting a year-over-year increase of 7.2% [1] - Earnings per share (EPS) for the quarter was $3.12, up from $2.84 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.01 billion by 3.46%, while the EPS fell short of the consensus estimate of $3.20 by 2.50% [1] Key Metrics - The Property and Casualty (P&C) underwriting expense ratio was 25.3%, better than the average estimate of 26.5% from five analysts [4] - The P&C loss and LAE (Loss Adjustment Expense) ratio was reported at 63.8%, compared to the average estimate of 61.4% [4] - The combined ratio for Specialty was 89%, slightly worse than the average estimate of 87.8% [4] Revenue Breakdown - P&C insurance net earned premiums were $1.85 billion, exceeding the average estimate of $1.79 billion, representing a year-over-year change of 6.8% [4] - Net investment income was reported at $194 million, surpassing the average estimate of $188.38 million, with a year-over-year increase of 22% [4] - Specialty Financial net earned premium was $279 million, compared to the average estimate of $261.83 million, marking a 14.3% increase year-over-year [4] Stock Performance - Shares of American Financial have returned +3.3% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - American Financial Group (AFG) reported quarterly earnings of $3.12 per share, missing the Zacks Consensus Estimate of $3.20 per share, but showing an increase from $2.84 per share a year ago, indicating a -2.50% earnings surprise [1] Group 1: Earnings Performance - The company posted revenues of $2.08 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.46%, compared to $1.94 billion in the same quarter last year [2] - Over the last four quarters, AFG has surpassed consensus EPS estimates just once [2] - The current consensus EPS estimate for the upcoming quarter is $2.95 on revenues of $1.97 billion, and for the current fiscal year, it is $11.65 on revenues of $8.4 billion [7] Group 2: Stock Performance and Outlook - AFG shares have lost about 0.2% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The estimate revisions trend for AFG is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The outlook for the insurance industry can significantly impact AFG's stock performance, with the Insurance - Property and Casualty sector currently in the top 36% of Zacks industries [8] Group 3: Comparative Analysis - Another company in the same industry, Donegal Group (DGICA), is expected to report quarterly earnings of $0.20 per share, reflecting a year-over-year change of +281.8%, with revenues expected to be $251.4 million, up 6% from the previous year [9][10]

Core Viewpoint - American Financial Group, Inc. (NYSE: AFG) is anticipated to report its Q4 2024 earnings next week, with expectations that results will not significantly differ from previous quarters, indicating limited short-term upside potential in its valuation [1] Company Summary - The upcoming earnings report for American Financial Group is expected to show stability, with no major changes anticipated compared to earlier quarters [1] - The current valuation of American Financial Group suggests that there is not much room for growth in the near term [1] Analyst Background - The analysis is provided by Labutes IR, a fund manager and analyst with over 18 years of experience in the financial sector, specifically in portfolio management [1]

Core Insights - Albert Anthony is a markets analyst and contributor on Seeking Alpha, covering over 200 companies and providing market commentary since 2023 [1] - He has a growing fan base of over 1,000 followers and operates a home-based fund called The Future Investor Fund [1] - In 2025, he plans to publish a book titled "The Future Investor: Growing a Diversified Portfolio" aimed at educating over 1 million people globally [1] Company Profile - Albert Anthony & Company is an independent sole proprietorship registered in Travis County, Texas [1] - The company does not provide personalized financial advice but offers general market commentary based on publicly available research [1] Educational Background - Albert Anthony has completed degrees and certificates from institutions such as Drew University, Corporate Finance Institute, Microsoft, CompTIA, and UVA Darden School of Business [1] - He is a member of the Croatian Association of Economists (HDE) as of 2024 [1] Professional Experience - His experience includes working as a management and information systems analyst at large companies, including a top 10 financial firm in the US [1] - He frequently attends business, innovation, and startup conferences across the US and Europe [1]

Core Viewpoint - American Financial Group, Inc. (AFG) is trading at a premium compared to the Zacks Property and Casualty Insurance industry, with a price-to-book value of 2.46X versus the industry average of 1.68X, indicating a strong valuation despite underperforming in the past year [1][2]. Financial Performance - AFG has a market capitalization of $11.56 billion, with an average trading volume of 0.3 million shares over the last three months [4]. - The stock closed at $137.75, trading above its 200-day simple moving average of $132.04, suggesting solid upward momentum [5]. - The trailing 12 months return on equity (ROE) for AFG is 19.9%, significantly higher than the industry average of 7.5%, reflecting efficient use of shareholders' funds [6]. Growth Factors - AFG is positioned for growth due to new business opportunities, increased exposure, and a favorable renewal rate environment, along with additional crop premiums from the Crop Risk Services acquisition [7]. - The company has maintained average renewal pricing across its entire P&C Group and aims to achieve renewal rate increases above prospective loss ratio trends [9]. Underwriting and Dividend Stability - AFG has consistently outperformed the industry average in combined ratio for over two decades, supported by its specialty niche focus, product line diversification, and underwriting discipline [10]. - The company has increased its dividend for 18 consecutive years, with a 10-year compound annual growth rate of 12.4%, indicating strong financial stability and effective capital management [11][12]. Conclusion - AFG's strategic acquisitions, new business opportunities, and improved combined ratio make it an attractive investment despite its high valuation, suggesting a hold recommendation for investors [13].

As expected, the Fed cut the interest rate by 25 basis points to a target range of 4.25-4.50%, representing a full 1% drop since September. This marks the third rate cut since September this year as the inflation rate is expected to move to its desired 2% benchmark. However, the Fed now expects inflation to be at 2.5% through next year. Though there should be more cuts next year, as the Fed wants to take the rate between 3.75% and 4% by the end of 2025, the magnitude and the number of cuts is now anyone's g ...

Shares of American Financial Group, Inc. (AFG) have rallied 24.4% year to date, outperforming the Finance sector’s return of 24.1%. It, however, underperformed the industry’s growth of 34.3% and the S&P 500 composite’s return of 26.5%.Image Source: Zacks Investment ResearchWith a market capitalization of $12.41 billion, the average volume of shares traded in the last three months was 0.3 million.American Financial closed at $147.93 on Wednesday, near its 52-week high of $150.19. This proximity underscores i ...

The Zacks Property and Casualty Insurance industry is well-poised to benefit from better pricing, prudent underwriting, increased exposure, an improving rate environment and a solid capital position. With the ongoing economic expansion, insurers remain well-poised for growth. The buoyancy in the industry is further confirmed by its Zacks Industry Rank #31, which places it in the top 12% of more than 250 Zacks industries.However, industry players continue to grapple with issues like higher catastrophe events ...

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 September 30, 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, ...