American Financial (AFG)2025-02-25 20:00Financial Performance - AFG's gross written premiums for 2024 reached 9,656 million in 2023[32] - The net written premiums for 2024 were 6,692 million in 2023, reflecting a growth of 6.7%[32] - AFG's combined ratio for 2024 was 91.2%, slightly higher than 90.4% in 2023, indicating continued underwriting profitability[32] - The statutory combined ratio averaged 90.6% from 2015 to 2024, outperforming the property and casualty commercial lines industry average of 98.3%[28] - AFG's underwriting gain for 2024 was 631 million in 2023[32] Losses and Claims - AFG's total net losses from current accident year catastrophes were 162 million in 2023[33] - AFG's loss and LAE ratio for 2024 was 63.3%, up from 61.6% in 2023, indicating an increase in claims costs[32] - Paid losses and LAE decreased to 15 million in 2023 and 14,179 million as of December 31, 2024[57] Reinsurance - AFG's reinsurance ceded amounted to 2,964 million in 2023, indicating a growth of 14.5%[55] - The company expects to continue reinsuring 50% of its crop premiums not reinsured by the Federal Crop Insurance Corporation in the private market for 2025[53] - AFG's catastrophe reinsurance coverage for U.S.-based operations includes 70 million per event primary retention[47] Investment Portfolio - AFG's investment portfolio totaled $15.85 billion as of December 31, 2024[78] - The earned yield on fixed maturities was 5.0% for 2024, compared to 4.7% in 2023 and 3.5% in 2022[80] - Total return on AFG's fixed maturities was 6.2% in 2024, outperforming the Barclays Capital U.S. Universal Bond Index, which returned 2.0%[82] - Approximately 96% of AFG's fixed maturity investments had a National Association of Insurance Commissioners designation of 1 or 2, indicating high quality[84] Employee Metrics - 94% of employees agreed that the organization provides high-quality products and services, based on the 2024 Employee Survey[68] - The voluntary turnover rate for AFG in 2024 was 7.1%, indicating positive retention trends[67] - The most recent Employee Survey in 2024 had a participation rate of 92%[68] Regulatory Compliance - AFG is subject to various federal regulations, including the Gramm-Leach-Bliley Act and the Fair Credit Reporting Act, impacting daily operations[94] - The Dodd-Frank Act established the Federal Insurance Office (FIO) to monitor the insurance industry and ensure access to affordable non-health insurance products[95] - Compliance with Solvency II and other solvency regulations is mandatory for AFG's foreign insurance subsidiaries[96] - The company must adhere to various privacy laws, including the EU and UK General Data Protection Regulation (GDPR)[96] Business Operations - The company completed the acquisition of Crop Risk Services in July 2023, maintaining its position as the fifth-ranked writer of U.S. crop insurance[20] - AFG operates 36 insurance businesses under the Great American Insurance Group, focusing on specialized commercial products[23] - The property and casualty insurance group primarily directs sales through independent agents and brokers, with a commission structure based on policy sales and profitability[62]