American Financial (AFG) Reports Q2 Earnings: What Key Metrics Have to Say

Core Insights - American Financial Group (AFG) reported $1.8 billion in revenue for Q2 2024, a year-over-year increase of 4.1% [1] - The EPS for the same period was $2.56, compared to $2.38 a year ago, with an EPS surprise of +1.19% against the consensus estimate of $2.53 [1] Revenue Performance - The reported revenue of $1.8 billion was a surprise of -10.72% compared to the Zacks Consensus Estimate of $2.02 billion [1] - P&C insurance net earned premiums were $1.59 billion, below the average estimate of $1.70 billion, but represented a +5.2% change year-over-year [5] - Net investment income was $188 million, slightly below the average estimate of $189.49 million, with a year-over-year change of -5.1% [6] - Specialty Casualty net earned premium was $739 million, compared to the average estimate of $752.57 million, reflecting a +3.9% year-over-year change [7] - Property and Transportation net earned premium was $543 million, below the average estimate of $626.71 million, with a +1.7% year-over-year change [8] - Specialty Financial net earned premium was $241 million, compared to the average estimate of $263.08 million, showing a +23.6% year-over-year change [9] - Other income (loss) was reported at $27 million, below the average estimate of $36.58 million, with an 8% year-over-year change [10] - Other Specialty net earned premium was $62 million, below the average estimate of $71.65 million, representing a -7.5% year-over-year change [11] Key Ratios - Property and Casualty Loss and LAE Ratio was 59.1%, better than the four-analyst average estimate of 60.1% [3] - Property and Transportation Underwriting Expense Ratio was 28.9%, compared to the four-analyst average estimate of 29.1% [3] - Property and Transportation Loss and LAE Ratio was 64%, better than the 66% average estimate [3] - Property and Transportation Combined Ratio was 92.6%, compared to the four-analyst average estimate of 95.1% [4] - Property and Casualty Combined Ratio - Specialty was 90.5%, better than the four-analyst average estimate of 91% [4] Stock Performance - Shares of American Financial have returned +2.1% over the past month, outperforming the Zacks S&P 500 composite's -6.7% change [11]