- Net earnings per share of $2.09; includes ($0.36) per share
in after-tax non-core items
- Core net operating earnings $2.45 per share, an increase of
9% from the prior year period
- Third quarter annualized ROE of 15.7%; annualized core
operating ROE of 18.3%
- 7% overall renewal rate increase excluding workers’
compensation
- Board of Directors declares $1.50 per share special
dividend, payable November 22, 2023
- Full year 2023 core net operating earnings guidance
unchanged at $10.15 to $11.15 per share
American Financial Group, Inc. (NYSE: AFG) today reported 2023
third quarter net earnings of $177 million ($2.09 per share)
compared to $165 million ($1.93 per share) in the 2022 third
quarter. Net earnings for the 2023 third quarter included net
after-tax non-core items that reduced net income by $31 million
($0.36 per share loss). By comparison, net earnings for the 2022
third quarter included after-tax non-core items that reduced net
income by $27 million ($0.31 per share loss). Other details may be
found in the table on the following page.
Core net operating earnings were $208 million ($2.45 per share)
for the 2023 third quarter, compared to $192 million ($2.24 per
share) in the 2022 third quarter. The increase was due primarily to
higher year-over-year net investment income, which was partially
offset by lower underwriting profit in the Specialty Property and
Casualty (“P&C”) insurance operations. Additional details for
the 2023 and 2022 third quarters may be found in the table below.
Core net operating earnings for the third quarters of 2023 and 2022
generated annualized returns on equity of 18.3% and 17.1%,
respectively.
Three Months Ended September
30,
Components of
Pretax Core Operating Earnings
2023
2022
2023
2022
2023
2022
In millions, except per share amounts
Before Impact of
Alternative
Core Net Operating
Alternative Investments
Investments
Earnings, as reported
P&C Pretax Core Operating Earnings
$
273
$
253
$
25
$
36
$
298
$
289
Other expenses
(22
)
(26
)
-
-
(22
)
(26
)
Holding company interest expense
(19
)
(19
)
-
-
(19
)
(19
)
Pretax Core Operating Earnings
232
208
25
36
257
244
Related provision for income taxes
44
44
5
8
49
52
Core Net Operating Earnings
$
188
$
164
$
20
$
28
$
208
$
192
Core Operating Earnings Per Share
$
2.21
$
1.91
$
0.24
$
0.33
$
2.45
$
2.24
Weighted Avg Diluted Shares
Outstanding
84.7
85.4
84.7
85.4
84.7
85.4
AFG’s book value per share was $47.31 at September 30, 2023.
During the third quarter of 2023, AFG paid cash dividends of $0.63
per share and repurchased $86 million of its common stock at an
average price per share of $112.28. For the three months ended
September 30, 2023, AFG’s growth in book value per share plus
dividends was 1.9% and year to date, growth in book value per share
plus dividends was 11.9%. Annualized return on equity was 15.7% and
14.7% for the third quarters of 2023 and 2022, respectively.
Adjusted book value per share, which excludes unrealized gains
(losses) related to fixed maturities, was $53.90 at September 30,
2023. For the three months ended September 30, 2023, AFG’s growth
in adjusted book value per share plus dividends was 3.1%. Year to
date, growth in adjusted book value per share plus dividends was
11.3%.
AFG’s net earnings, determined in accordance with U.S. generally
accepted accounting principles (GAAP), include certain items that
may not be indicative of its ongoing core operations. The table
below identifies such items and reconciles net earnings to core net
operating earnings, a non-GAAP financial measure. AFG believes that
its core net operating earnings provides management, financial
analysts, ratings agencies, and investors with an understanding of
the results from the ongoing operations of the Company by excluding
the impact of net realized gains and losses and other items that
are not necessarily indicative of operating trends. AFG’s
management uses core net operating earnings to evaluate financial
performance against historical results because it believes this
provides a more comparable measure of its continuing business. Core
net operating earnings is also used by AFG’s management as a basis
for strategic planning and forecasting.
In millions, except per share amounts
Three months ended
September 30,
Nine months ended
September 30,
2023
2022
2023
2022
Components of net earnings:
Core operating earnings before income
taxes
$
257
$
244
$
823
$
930
Pretax non-core
items:
Realized gains (losses)
(23
)
(35
)
(71
)
(143
)
Gain (loss) on retirement of debt
-
1
1
(10
)
Special A&E charges
(15
)
-
(15
)
-
Earnings before income taxes
219
210
738
777
Provision (credit) for income taxes:
Core operating earnings
49
52
166
192
Non-core items
(7
)
(7
)
(17
)
(37
)
Total provision for income taxes
42
45
149
155
Net earnings
$
177
$
165
$
589
$
622
Net earnings:
Core net operating earnings(a)
$
208
$
192
$
657
$
738
Non-core
items:
Realized gains (losses)
(19
)
(28
)
(57
)
(113
)
Gain (loss) on retirement of debt
-
1
1
(7
)
Special A&E charges
(12
)
-
(12
)
-
Other
-
-
-
4
Net earnings
$
177
$
165
$
589
$
622
Components of earnings per share:
Core net operating earnings(a)
$
2.45
$
2.24
$
7.72
$
8.65
Non-core
Items:
Realized gains (losses)
(0.21
)
(0.32
)
(0.65
)
(1.32
)
Gain (loss) on retirement of debt
-
0.01
0.01
(0.09
)
Special A&E charges
(0.15
)
-
(0.15
)
-
Other
-
-
-
0.05
Diluted net earnings per share
$
2.09
$
1.93
$
6.93
$
7.29
Footnote (a) is contained in the
accompanying Notes to Financial Schedules at the end of this
release.
The Company also announced today that its Board of Directors has
declared a special cash dividend of $1.50 per share of American
Financial Group common stock. The dividend is payable on November
22, 2023, to shareholders of record on November 13, 2023. The
aggregate amount of this special dividend will be approximately
$126 million. This special dividend is in addition to the Company’s
regular quarterly cash dividend of $0.71 per share most recently
paid on October 25, 2023. With this special dividend, the Company
has declared $5.50 per share in special dividends in 2023.
S. Craig Lindner and Carl H. Lindner III, AFG’s Co-Chief
Executive Officers, issued this statement: “We are pleased with
AFG’s performance during the third quarter. We achieved an
annualized core operating return of over 18% in the quarter, with
strong underwriting results despite elevated catastrophe losses
during the quarter. These strong results, coupled with meaningfully
higher year-over-year investment income and effective capital
management, enable us to continue to create value for our
shareholders.
“AFG had approximately $660 million of excess capital at
September 30, 2023, which includes parent company cash and
investments of $364 million. Returning capital to shareholders in
the form of regular and special cash dividends and through
opportunistic share repurchases is an important and effective
component of our capital management strategy. In addition, our
excess capital will be deployed into AFG’s core businesses as we
identify potential for healthy, profitable organic growth, and
opportunities to expand our specialty niche businesses through
acquisitions and start-ups that meet our target return
thresholds.”
Craig and Carl Lindner continued, “Based on the results reported
in the first nine months of the year and expectations for the
remainder of the year, we continue to expect AFG’s 2023 core net
operating earnings to be in the range of $10.15 to $11.15 per
share. Our guidance reflects our updated expectations of a below
average crop year, offset by higher-than-previously expected net
investment income. At the midpoint of the range, our revised
guidance would produce a core return on equity of approximately
20%.”
AFG’s core earnings per share guidance excludes non-core items
such as realized gains and losses and other significant items that
are not able to be estimated with reasonable precision, or that may
not be indicative of ongoing operations.
Specialty Property and Casualty
Insurance Operations
The Specialty P&C insurance operations reported underwriting
profit of $143 million in the 2023 third quarter, compared to $158
million in the 2022 third quarter, a 9% decrease. A higher
frequency of lower severity convective storms throughout the 2023
period resulted in catastrophes losses of $56 million, compared to
$51 million in the prior year period, which included the impact of
Hurricane Ian. Higher year-over-year underwriting profit in our
Property and Transportation and Specialty Financial Groups was more
than offset by lower underwriting profit in our Specialty Casualty
Group.
The third quarter 2023 combined ratio was a strong 92.2%, 1.1
points higher than the 91.1% reported in the comparable prior year
period and included 3.0 points in catastrophe losses. By
comparison, catastrophe losses in the third quarter of 2022 added
2.5 points to the combined ratio. Third quarter 2023 results
benefitted from 2.3 points of favorable prior year reserve
development, compared to 3.1 points in the third quarter of
2022.
Third quarter 2023 gross written premiums were flat and net
written premiums were up 4% when compared to the third quarter of
2022, reflecting a larger percentage of crop insurance premium
written in the second quarter of 2023 (rather than the third
quarter of 2023 when compared to the 2022 period) due to the
earlier planting of corn and soybeans, as well as the impact of
lower 2023 spring commodity futures pricing and related volatility.
Excluding our crop business, gross and net written premiums grew by
7% and 10%, respectively, when compared to the prior year period.
Year-over-year growth was reported within most of our Specialty
P&C businesses as a result of a combination of new business
opportunities, increased exposures, and a good renewal rate
environment. Average renewal pricing across our P&C Group,
excluding workers’ compensation, was up approximately 7% for the
quarter, two points higher than the previous quarter. Including
workers’ compensation, renewal rates were up approximately 5%, one
point higher than renewal increases reported in the prior quarter.
We are achieving renewal rate increases in excess of prospective
loss ratio trends where we need them to meet targeted returns.
The Property and Transportation Group reported 2023 third
quarter underwriting profit of $42 million, compared to $39 million
in the third quarter of 2022. Higher underwriting profit in our
transportation, property & inland marine, and ocean marine
businesses was partially offset by lower profitability in our
agricultural businesses. Catastrophe losses in this group were $14
million in the third quarter of 2023, compared to $13 million in
the comparable 2022 period. Overall, the businesses in the Property
and Transportation Group achieved a 94.8% calendar year combined
ratio in the third quarter, an improvement of 0.6 points from the
comparable period in 2022.
Gross and net written premiums for the third quarter of 2023
were 8% and 6% lower, respectively, than the comparable 2022
period. The year-over-year decrease reflects the previously
discussed impacts of earlier planting of corn and soybeans and
spring commodity futures pricing and related volatility on premiums
in our crop insurance business. Excluding our crop business, gross
and net written premiums grew by 2% and 4%, respectively, when
compared to the 2022 third quarter. Most of the businesses in this
group reported growth in gross and net written premium during the
quarter as the result of higher rates, new business opportunities
and organic growth. Overall renewal rates in this group increased
6% on average for the third quarter of 2023, consistent with
renewal rates achieved in the second quarter of 2023.
The Specialty Casualty Group reported a 2023 third
quarter underwriting profit of $78 million, compared to $118
million in the third quarter of 2022, reflecting lower levels of
favorable prior year reserve development in our workers’
compensation businesses and lower underwriting profit in our
targeted markets businesses. Underwriting profitability in our
workers’ compensation businesses overall continues to be excellent.
Catastrophe losses for this group were $17 million and $3 million
in the third quarters of 2023 and 2022. The businesses in the
Specialty Casualty Group achieved a strong 89.4% calendar year
combined ratio overall in the third quarter, 6.8 points higher than
the exceptionally strong results achieved in the comparable prior
year period.
Third quarter 2023 gross and net written premiums increased 4%
and 7%, respectively, when compared to the same prior year period.
Factors contributing to the year-over-year growth included payroll
growth in our workers’ compensation businesses; new business
opportunities, strong policy retention and rate increases in
several of our targeted market businesses; and new business
opportunities and higher policy renewals in our excess and surplus
lines business. This growth was partially offset by lower
year-over-year premiums in our mergers & acquisitions liability
and executive liability businesses. Excluding workers’
compensation, renewal pricing for this group was up 8% in the third
quarter (up 5% including workers’ compensation), a two-point
improvement over the renewal pricing in the previous quarter.
The Specialty Financial Group reported an underwriting
profit of $29 million in the third quarter of 2023, compared to $15
million in the third quarter of 2022. The year-over-year increase
was primarily the result of lower catastrophe losses attributable
to our financial institutions business. Catastrophe losses for this
group were $22 million in the third quarter of 2023, compared to
$34 million in the prior year quarter. This group reported a
combined ratio of 87.6% for the third quarter of 2023, an
improvement of 3.7 points over the prior year period.
Third quarter 2023 gross and net written premiums in this group
were up 39% and 48%, respectively, when compared to the prior year
period. While nearly all businesses in this group reported
year-over-year growth, our financial institutions business was the
primary driver of the higher premiums. Renewal pricing in this
group was up 5% for the quarter.
Carl Lindner III stated, "I’m pleased with our third quarter
results, which included higher year-over-year operating earnings in
our P&C Segment despite the higher frequency of catastrophe
losses during the quarter. Underwriting margins continue to be
strong, and we are seeing opportunities to grow our Specialty
P&C businesses through increasing exposures, new opportunities,
and a continued favorable pricing environment. Our diversified
portfolio of Specialty P&C businesses continues to meet or
exceed targeted returns.
Mr. Lindner added, “Based on results through the first nine
months and the updated expectation of a below average crop year, we
now expect an overall 2023 calendar year combined ratio in the
range of 90% to 92%. We have increased our guidance for net written
premiums and now expect net written premiums to be 6% to 8% higher
than the $6.2 billion reported in 2022. This compares to our
previous guidance of growth in the range of 5% to 8% and will
establish a record for net written premiums for the year.”
Further details about AFG’s Specialty P&C operations may be
found in the accompanying schedules and in our Quarterly Investor
Supplement, which is posted on our website.
A&E Reserves
During the third quarter of 2023, AFG conducted an in-depth
comprehensive review of its asbestos and environmental (A&E)
exposures relating to the run-off operations of its P&C Group.
During the 2023 review, no new trends were identified, and recent
claims activity was generally consistent with our expectations
resulting from our in-depth reviews in 2022 and 2021 and our most
recent external study in 2020. As a result, and consistent with the
internal review in the third quarter of 2022, the 2023 review
resulted in no net change to the P&C Group’s A&E
reserves.
At September 30, 2023, the P&C Group’s insurance reserves
include A&E reserves of $374 million, net of reinsurance
recoverables. At September 30, 2023, the property and casualty
insurance segment’s three-year survival ratios were 22.7 times paid
losses for asbestos reserves, 18.9 times paid losses for
environmental reserves and 20.8 times paid losses for total A&E
reserves. These ratios compare favorably with industry data
compiled by S&P Global Market Intelligence as of December 31,
2022, which indicate that industry survival ratios were 8.6 times
paid losses for asbestos, 7.3 times paid losses for environmental,
and 8.3 times paid losses for total A&E reserves.
The 2023 in-depth comprehensive review also encompassed reserves
for asbestos and environmental exposures of our former railroad and
manufacturing operations. As a result of the study, AFG recorded a
special non-core A&E charge to increase its liabilities for
environmental exposures by $15 million ($12 million after-tax), due
primarily to changes in the scope and costs of investigation and an
increase in estimated remediation costs at a limited number of
sites.
Investments
Net Investment Income – For the quarter ended September
30, 2023, property and casualty net investment income was
approximately 17% higher than the comparable 2022 period. Excluding
the impact of alternative investments, net investment income in our
property and casualty insurance operations for the three months
ended September 30, 2023, increased 33% year-over-year as a result
of the impact of rising interest rates and higher balances of
invested assets. The annualized return on alternative investments
was approximately 4.2% for the 2023 third quarter compared to 7.1%
for the prior year quarter. Earnings from alternative investments
may vary from quarter to quarter based on the reported results of
the underlying investments, and generally are reported on a quarter
lag. The average annual return on alternative investments over the
five calendar years ended December 31, 2022, was approximately 14%.
Our guidance for the full year 2023 continues to assume a return of
approximately 9% on alternative investments.
Non-Core Net Realized Gains (Losses) – AFG recorded third
quarter 2023 net realized losses of $19 million ($0.21 per share
loss) after tax, which included $6 million ($0.07 per share loss)
in after-tax net losses to adjust equity securities that the
Company continued to own at September 30, 2023, to fair value. AFG
recorded net realized losses of $28 million ($0.32 per share loss)
in the comparable 2022 period.
After-tax unrealized losses related to fixed maturities were
$555 million at September 30, 2023. Our portfolio continues to be
high quality, with 93% of our fixed maturity portfolio rated
investment grade and 96% of our P&C fixed maturity portfolio
with a National Association of Insurance Commissioners’ designation
of NAIC 1 or 2, its highest two categories.
More information about the components of our investment
portfolio may be found in our Quarterly Investor Supplement, which
is posted on our website.
About American Financial Group, Inc.
American Financial Group is an insurance holding company, based
in Cincinnati, Ohio. Through the operations of Great American
Insurance Group, AFG is engaged primarily in property and casualty
insurance, focusing on specialized commercial products for
businesses. Great American Insurance Group’s roots go back to 1872
with the founding of its flagship company, Great American Insurance
Company.
Forward Looking
Statements
This press release, and any related oral statements, contains
certain statements that may be deemed to be "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934. All
statements in this press release not dealing with historical
results are forward-looking and are based on estimates,
assumptions, and projections. Examples of such forward-looking
statements include statements relating to: the Company's
expectations concerning market and other conditions and their
effect on future premiums, revenues, earnings, investment
activities and the amount and timing of share repurchases or
special dividends; recoverability of asset values; expected losses
and the adequacy of reserves for asbestos, environmental pollution
and mass tort claims; rate changes; and improved loss
experience.
Actual results and/or financial condition could differ
materially from those contained in or implied by such
forward-looking statements for a variety of reasons including, but
not limited to: the risks and uncertainties AFG describes in the
“Risk Factors” section of its most recent Annual Report on Form
10-K, as updated by its other reports filed with the Securities and
Exchange Commission; changes in financial, political and economic
conditions, including changes in interest and inflation rates,
currency fluctuations and extended economic recessions or
expansions in the U.S. and/or abroad; performance of securities
markets; new legislation or declines in credit quality or credit
ratings that could have a material impact on the valuation of
securities in AFG’s investment portfolio; the availability of
capital; changes in insurance law or regulation, including changes
in statutory accounting rules, including modifications to capital
requirements; changes in the legal environment affecting AFG or its
customers; tax law and accounting changes; levels of natural
catastrophes and severe weather, terrorist activities (including
any nuclear, biological, chemical or radiological events),
incidents of war or losses resulting from pandemics, civil unrest
and other major losses; disruption caused by cyber-attacks or other
technology breaches or failures by AFG or its business partners and
service providers, which could negatively impact AFG’s business
and/or expose AFG to litigation; development of insurance loss
reserves and establishment of other reserves, particularly with
respect to amounts associated with asbestos and environmental
claims; availability of reinsurance and ability of reinsurers to
pay their obligations; competitive pressures; the ability to obtain
adequate rates and policy terms; changes in AFG’s credit ratings or
the financial strength ratings assigned by major ratings agencies
to AFG’s operating subsidiaries; the impact of the conditions in
the international financial markets and the global economy relating
to AFG’s international operations; and effects on AFG’s reputation,
including as a result of environmental, social and governance
matters.
The forward-looking statements herein are made only as of the
date of this press release. The Company assumes no obligation to
publicly update any forward-looking statements.
Conference Call
The Company will hold a conference call to discuss 2023 third
quarter results at 11:30 a.m. (ET) tomorrow, Thursday, November 2,
2023. Simplified event registration and access provides two ways to
access the call.
Participants should register for the call here now, or any time
up to and during the time of the call, and will immediately receive
the dial-in number and a unique PIN to access the call. While you
may register at any time up to and during the time of the call, you
are encouraged to join the call 10 minutes prior to the start of
the event.
The conference call and accompanying webcast slides will also be
broadcast live over the internet. To access the event, click the
following link:
https://www.afginc.com/news-and-events/event-calendar.
Alternatively, you can choose Events from the Investor
Relations page at www.AFGinc.com.
A replay of the webcast will be available via the same link on
our website approximately two hours after the completion of the
call.
(Financial summaries follow)
This earnings release and AFG’s Quarterly
Investor Supplement are available in the Investor Relations section
of AFG’s website: www.AFGinc.com.
AMERICAN FINANCIAL GROUP,
INC., AND SUBSIDIARIES
SUMMARY OF EARNINGS AND
SELECTED BALANCE SHEET DATA
(In Millions, Except Per Share
Data)
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
Revenues
P&C insurance net earned premiums
$
1,855
$
1,767
$
4,799
$
4,462
Net investment income
168
151
583
549
Realized gains (losses) on:
Securities
(19
)
(35
)
(67
)
(143
)
Subsidiaries
(4
)
-
(4
)
-
Income of managed investment entities:
Investment income
105
75
321
175
Gain (loss) on change in fair value of
assets/liabilities
16
(5
)
12
(25
)
Other income
43
31
100
93
Total revenues
2,164
1,984
5,744
5,111
Costs and expenses
P&C insurance losses &
expenses
1,736
1,621
4,419
3,934
Interest charges on borrowed money
19
19
57
65
Expenses of managed investment
entities
105
62
303
148
Other expenses
85
72
227
187
Total costs and expenses
1,945
1,774
5,006
4,334
Earnings before income taxes
219
210
738
777
Provision for income taxes
42
45
149
155
Net earnings
$
177
$
165
$
589
$
622
Diluted earnings per common share
$
2.09
$
1.93
$
6.93
$
7.29
Average number of diluted shares
84.7
85.4
85.1
85.3
Selected Balance
Sheet Data:
September 30, 2023
December 31, 2022
Total cash and investments
$
14,794
$
14,512
Long-term debt
$
1,474
$
1,496
Shareholders’ equity(b)
$
3,981
$
4,052
Shareholders’ equity (excluding
unrealized
gains/losses related to fixed
maturities)(b)
$
4,536
$
4,578
Book value per share(b)
$
47.31
$
47.56
Book value per share (excluding
unrealized
gains/losses related to fixed
maturities)(b)
$
53.90
$
53.73
Common Shares Outstanding
84.1
85.2
Footnote (b) is contained in the
accompanying Notes to Financial Schedules at the end of this
release.
AMERICAN FINANCIAL GROUP, INC.
SPECIALTY P&C
OPERATIONS
(Dollars in Millions)
Three months ended September
30,
Pct.
Change
Nine months ended September
30,
Pct.
Change
2023
2022
2023
2022
Gross written premiums
$
3,140
$
3,153
-
%
$
7,664
$
7,212
6
%
Net written premiums
$
2,061
$
1,984
4
%
$
5,247
$
4,868
8
%
Ratios (GAAP):
Loss & LAE ratio
66.7
%
66.4
%
61.8
%
59.1
%
Underwriting expense ratio
25.5
%
24.7
%
29.5
%
28.3
%
Specialty Combined Ratio
92.2
%
91.1
%
91.3
%
87.4
%
Combined Ratio – P&C
Segment
92.3
%
91.2
%
91.3
%
87.5
%
Supplemental
Information:(c)
Gross Written Premiums:
Property & Transportation
$
1,592
$
1,737
(8
%)
$
3,523
$
3,459
2
%
Specialty Casualty
1,226
1,184
4
%
3,299
3,108
6
%
Specialty Financial
322
232
39
%
842
645
31
%
$
3,140
$
3,153
-
%
$
7,664
$
7,212
6
%
Net Written Premiums:
Property & Transportation
$
905
$
959
(6
%)
$
2,125
$
2,092
2
%
Specialty Casualty
829
777
7
%
2,244
2,073
8
%
Specialty Financial
261
176
48
%
685
512
34
%
Other
66
72
(8
%)
193
191
1
%
$
2,061
$
1,984
4
%
$
5,247
$
4,868
8
%
Combined Ratio (GAAP):
Property & Transportation
94.8
%
95.4
%
93.6
%
92.2
%
Specialty Casualty
89.4
%
82.6
%
87.8
%
81.1
%
Specialty Financial
87.6
%
91.3
%
89.6
%
83.9
%
Aggregate Specialty Group
92.2
%
91.1
%
91.3
%
87.4
%
Three months ended
September 30,
Nine months ended
September 30,
2023
2022
2023
2022
Reserve Development
(Favorable)/Adverse:
Property & Transportation
$
(14
)
$
(15
)
$
(72
)
$
(79
)
Specialty Casualty
(22
)
(42
)
(73
)
(140
)
Specialty Financial
(10
)
(11
)
(24
)
(39
)
Other Specialty
2
12
-
27
Specialty Group
(44
)
(56
)
(169
)
(231
)
Other
1
3
1
5
Total Reserve Development
$
(43
)
$
(53
)
$
(168
)
$
(226
)
Points on Combined Ratio:
Property & Transportation
(1.7
)
(1.8
)
(3.9
)
(4.4
)
Specialty Casualty
(2.9
)
(6.3
)
(3.4
)
(7.1
)
Specialty Financial
(4.2
)
(6.3
)
(3.8
)
(7.8
)
Aggregate Specialty Group
(2.3
)
(3.1
)
(3.5
)
(5.2
)
Total P&C Segment
(2.3
)
(3.0
)
(3.5
)
(5.1
)
Footnote (c) is contained in the
accompanying Notes to Financial Schedules at the end of this
release.
AMERICAN FINANCIAL GROUP,
INC.
Notes to Financial
Schedules
a) Components of core net operating
earnings (dollars in millions):
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
Core Operating
Earnings before Income Taxes:
P&C insurance segment
$
298
$
289
$
947
$
1,056
Interest and other corporate expenses
(41
)
(45
)
(124
)
(126
)
Core operating earnings before income
taxes
257
244
823
930
Related income taxes
49
52
166
192
Core net operating earnings
$
208
$
192
$
657
$
738
(b)
Shareholders’ Equity at September
30, 2023, includes $555 million ($6.59 per share) in unrealized
after-tax losses related to fixed maturities compared to $526
million ($6.17 per share) in unrealized after-tax losses related to
fixed maturities at December 31, 2022.
(c)
Supplemental Notes:
- Property & Transportation includes primarily
physical damage and liability coverage for buses and trucks and
other specialty transportation niches, inland and ocean marine,
agricultural-related products, and other commercial property
coverages.
- Specialty Casualty includes primarily excess and
surplus, general liability, executive liability, professional
liability, umbrella and excess liability, specialty coverages in
targeted markets, customized programs for small to mid-sized
businesses and workers’ compensation insurance.
- Specialty Financial includes risk management insurance
programs for lending and leasing institutions (including equipment
leasing and collateral and lender-placed mortgage property
insurance), surety and fidelity products and trade credit
insurance.
- Other includes an internal reinsurance facility.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101201163/en/
Diane P. Weidner, IRC Vice President – Investor & Media
Relations 513-369-5713 Websites:
www.AFGinc.com www.GreatAmericanInsuranceGroup.com
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