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Review of First Quarter 2025 May 7, 2025
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2 Forward Looking Statements Certain statements made during this call, as well as included in this document, are not historical facts and may be considered “forward-looking statements” and are based on estimates, assumptions and projections which management believes are reasonable, but by their nature subject to risks and uncertainties. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. The reasons which could cause actual results and/or financial condition to differ materially from those suggested by such forward-looking statements include, but are not limited to, those discussed or identified from time-to-time in AFG’s filings with the Securities and Exchange Commission, including the annual report on Form 10-K and the quarterly reports on Form 10-Q. We do not promise to update such forward-looking statements to reflect actual results or changes in assumptions or other factors that could affect these statements. Core net operating earnings is a non-GAAP financial measure which sets aside items that are generally not considered to be part of ongoing operations, such as net realized gains and losses and certain nonrecurring items. AFG believes that this non- GAAP measure is a useful tool for investors and analysts in analyzing ongoing operating trends of AFG.
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3 2025 First Quarter Consolidated Results Dollars in millions, except per share data Three Months Ended March 31, 2025 2024 P&C Insurance Segment $ 246 $ 340 Interest & other corporate expenses (52) (50) Pretax Core Operating Earnings 194 290 Related income taxes 42 59 Core Net Operating Earnings $ 152 $ 231 Average number of diluted shares 83.8 83.8 Core Net Operating Earnings per Share $ 1.81 $ 2.76 Annualized Core Operating Return on Equity 13.1% 20.2%
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4 2025 First Quarter Consolidated Results (continued) Three Months Ended March 31, 2025 (Per Share) Core Net Operating Earnings $ 152 $ 1.81 Non-core Items After-tax net realized gains1 2 0.03 Net Earnings $ 154 $ 1.84 1 Included in this amount is $5 million ($0.06 per share) in after-tax net gains to adjust equity securities that the Company continued to own at March 31, 2025, to fair value. Dollars in millions, except per share data
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5 Investments • Total carrying value of AFG’s investment portfolio at March 31, 2025 = $16.0 billion • P&C net investment income up 6% YOY excluding alternative investments, down 17% overall • First quarter 2025 annualized return of 1.8% on AFG’s $2.7 billion of alternative investments • First quarter after-tax net realized gains on securities of $2 million • includes $5 million in after-tax net realized gains to adjust equity securities that the company continued to own at March 31, 2025, to fair value through earnings
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6 Investments As of March 31, 2025 Real Estate and Other 1% Mortgage Loans 5% Equities 5% Cash and Equivalents 8% Investments Accounted for by Equity Method 15% Fixed Maturities 66% Fixed Maturities Portfolio – 95% investment grade P&C Fixed Maturities Portfolio – 96% NAIC 1 & 2 Corporates 33% Asset-backed 22% Residential MBS 20% Collateralized Loan Obligations 12% States and Municipalities 8%Foreign Government 3% US Government 2% Carrying Value – $16.0 Billion
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7 Strong Financial Position Dollars in millions, except per share data 1 The ratio is calculated by dividing the principal amount of AFG's long-term debt by its total capital, which includes long-term debt and shareholders’ equity, excluding AOCI. 2 Excludes AOCI, goodwill and intangibles. Mar 31, 2025 Dec 31, 2024 Principal amount of long-term debt $ 1,498 $ 1,498 Shareholders' equity, excluding AOCI 4,571 4,706 Total capital, excluding AOCI $ 6,069 $ 6,204 Ratio of debt to total capital, excluding AOCI1 Including subordinated debt 24.7% 24.1% Excluding subordinated debt 13.6% 13.3% Common shares outstanding (millions) 83.668 83.978 Book value per share: Book value per share $ 52.50 $ 53.18 Book value per share, excluding AOCI 54.63 56.03 Tangible, excluding AOCI2 48.62 49.98 Capital Management Above target levels for all rating agencies First quarter regular dividends = $67 million Paid special dividend of $2.00 per share ($167 million) in March 2025 Repurchased 462,398 shares for approximately $58 million during the first quarter Long-Term Debt No debt maturities until 2030 No borrowings under $450 million credit line Financial Strength Ratings - U.S. Based P&C Insurers (where rated) A.M. Best: All companies = A+ Standard & Poor’s: All companies = A+ Moody’s: All companies = A1
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8 Property & Casualty Results Dollars in millions Three Months Ended March 31, 2025 2024 Change1 Specialty Gross Written Premiums $ 2,291 $ 2,336 (2%) Specialty Net Written Premiums $ 1,611 $ 1,634 (1%) P&C Insurance Operating Earnings $ 246 $ 340 (28%) Specialty P&C Underwriting Profit $ 94 $ 154 (39%) Specialty P&C Combined Ratio 94.0% 90.1% 3.9% Adverse (Favorable) Impact of: Catastrophe Losses 4.5% 2.3% 2.2% Prior Year Development (1.3%) (3.3%) 2.0% 1 Calculated as a percentage change for dollars and an arithmetic difference for percentages.
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9 Specialty P&C Group Dollars in millions Net Written Premiums Combined Ratio Three Months Ended Three Months Ended March 31, March 31, 2025 2024 Change 2025 2024 Property & Transportation $ 563 $ 597 (6%) 92.5% 88.5% Specialty Casualty $ 772 $ 803 (4%) 97.6% 92.2% Specialty Casualty Excluding Workers’ Compensation $ 489 $ 513 (5%) Specialty Financial $ 276 $ 234 18% 87.0% 86.6%
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