American Financial (AFG) - 2024 Q4 - Annual Results

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$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$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]