SEC Filing | American Financial Group, Inc.

AMERICAN FINANCIAL GROUP, INC.

Date: February 7, 2024

/s/ Karl J. Grafe

Karl J. Grafe

Vice President

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8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 6, 2024

AMERICAN FINANCIAL GROUP, INC.

(Exact name of registrant as specified in its charter)

Ohio

1-13653

31-1544320

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)


301 East Fourth Street, Cincinnati, OH		45202
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 513-579-2121

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	AFG	New York Stock Exchange
5.875% Subordinated Debentures due March 30, 2059	AFGB	New York Stock Exchange
5.125% Subordinated Debentures due December 15, 2059	AFGC	New York Stock Exchange
5.625% Subordinated Debentures due June 1, 2060	AFGD	New York Stock Exchange
4.5% Subordinated Debentures due September 15, 2060	AFGE	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Section 2 - Financial Information

Item 2.02

Results Of Operations And Financial Condition.

Reference is made to the press release of American Financial Group, Inc. (the “Company”) relating to the announcement of the Company’s results of operations for the fourth quarter of 2023 and the year ended December 31, 2023 and the availability of the Investor Supplement on the Company’s website. The press release was issued on February 6, 2024. A copy of the press release is furnished as Exhibit 99.1 and a copy of the Investor Supplement is furnished as Exhibit 99.2 and are incorporated herein by reference.

Section 8 - Other Events

Item 8.01

Other Events.

In the press release referenced in Item 2.02 above, the Company also announced that its Board of Directors declared a special, one-time cash dividend of $2.50 per share of Company Common Stock. The dividend is payable on February 28, 2024 to holders of record on February 16, 2024.

The information under Item 2.02 and in Exhibits 99.1 and 99.2 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 as amended (the “Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.

Section 9 - Financial Statements and Exhibits

Item 9.01

Financial Statements and Exhibits.

(a)

Financial statements of business acquired. Not applicable.

(b)

Pro forma financial information. Not applicable.

(c)

Shell company transactions. Not applicable

(d)

Exhibits.


Exhibit No.		Description

99.1		Earnings Release dated February 6, 2024, reporting American Financial Group Inc. results for the fourth quarter and full year results for the period ended December 31, 2023.

99.2		Investor Supplement - Fourth Quarter 2023

104		Cover page Interactive Date File (embedded within Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EX-99.1

Exhibit 99.1

LOGO

American Financial Group, Inc. Announces Fourth Quarter and Full Year Results and Declares Special Dividend

•

Net earnings per share of $3.13 in the fourth quarter; full year net earnings per share of $10.05

•

Core net operating earnings per share of $2.84 in the fourth quarter; full year core net operating earnings per share of $10.56

•

Full year 2023 ROE of 18.8%; 2023 core operating ROE of 19.8%

•

Specialty Property & Casualty fourth quarter calendar year combined ratio of 87.7%

•

Full year total capital returned to shareholders approximately $900 million, includes $466 million ($5.50 per share) in special dividends

•

Special cash dividend of $2.50 per share declared; payable February 28, 2024

CINCINNATI – February 6, 2024 – American Financial Group, Inc. (NYSE: AFG) today reported 2023 fourth quarter net earnings of $263 million ($3.13 per share) compared to $276 million ($3.24 per share) in the 2022 fourth quarter. Net earnings for the 2023 fourth quarter included net after-tax non-core realized gains of $25 million ($0.29 per share). By comparison, net earnings for the 2022 fourth quarter included net after-tax non-core realized gains of $21 million ($0.25 per share). Net earnings for the full year of 2023 were $10.05 per share, compared to $10.53 per share in 2022. Other details may be found in the table on the following page.

Core net operating earnings were $238 million ($2.84 per share) for the 2023 fourth quarter, compared to $255 million ($2.99 per share) in the 2022 fourth quarter. The year-over-year decrease reflects lower returns in AFG’s alternative investment portfolio. Additional details for the 2023 and 2022 fourth quarters may be found in the table below.


	Three Months Ended December 31,
Components of Pretax Core Operating Earnings	2023			2022			2023		2022		2023			2022
In millions, except per share amounts	Before Impact of Alternative Investments						Alternative Investments				Core Net Operating Earnings, as reported
P&C Pretax Core Operating Earnings	$	352		$	335		$	5	$	28	$	357		$	363
Other expenses		(34	)		(25	)		—		—		(34	)		(25	)
Holding company interest expense		(19	)		(20	)		—		—		(19	)		(20	)

Pretax Core Operating Earnings		299			290			5		28		304			318
Related provision for income taxes		65			57			1		6		66			63

Core Net Operating Earnings	$	234		$	233		$	4	$	22	$	238		$	255

Core Operating Earnings Per Share	$	2.79		$	2.73		$	0.05	$	0.26	$	2.84		$	2.99
Weighted Avg Diluted Shares Outstanding		83.8			85.3			83.8		85.3		83.8			85.3

AFG’s book value per share was $50.91 at December 31, 2023. AFG paid cash dividends of $2.21 per share during the fourth quarter – which included a $1.50 per share special dividend paid in November – and repurchased $60 million of its common stock at an average price per share of $110.23. For the three months ended December 31, 2023, AFG’s growth in book value per share plus dividends was 12.3%. For the twelve months ended December 31, 2023, AFG’s book value per share plus dividends increased by 24.1%. For the full year, share repurchases totaled $213 million. Return on equity was 18.8% and 19.2% for the full years of 2023 and 2022, respectively, and is calculated based on a five-quarter average of ending shareholders’ equity, excluding AOCI.

Page 1

Adjusted book value per share, which excludes unrealized gains (losses) related to fixed maturities, was $54.54 per share at December 31, 2023. For the three months ended December 31, 2023, AFG’s growth in adjusted book value per share plus dividends was 5.3%. For the twelve months ended December 31, 2023, AFG’s growth in adjusted book value per share plus dividends was 16.6%. Core operating return on equity was 19.8% and 21.2% for the full years of 2023 and 2022, respectively and is calculated based on a five-quarter average of ending shareholders’ equity, excluding AOCI.

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 December 31,				Twelve months ended December 31,
	2023		2022		2023			2022
Components of net earnings:
Core operating earnings before income taxes	$	304	$	318	$	1,127		$	1,248
Pretax non-core items:
Realized gains (losses)		31		27		(40	)		(116	)
Gain (loss) on retirement of debt		—		1		1			(9	)
Special A&E charges		—		—		(15	)		—

Earnings before income taxes		335		346		1,073			1,123
Provision (credit) for income taxes:
Core operating earnings		66		63		232			255
Non-core items		6		7		(11	)		(30	)

Total provision for income taxes		72		70		221			225

Net earnings	$	263	$	276	$	852		$	898

Net earnings:
Core net operating earnings^(a)	$	238	$	255	$	895		$	993
Non-core items:
Realized gains (losses)		25		21		(32	)		(92	)
Gain (loss) on retirement of debt		—		—		1			(7	)
Special A&E charges		—		—		(12	)		—
Other		—		—		—			4

Net earnings	$	263	$	276	$	852		$	898

Components of earnings per share:
Core net operating earnings^(a)	$	2.84	$	2.99	$	10.56		$	11.63
Non-core Items:
Realized gains (losses)		0.29		0.25		(0.37	)		(1.06	)
Gain (loss) on retirement of debt		—		—		0.01			(0.09	)
Special A&E Charges		—		—		(0.15	)		—
Other		—		—		—			0.05

Diluted net earnings per share	$	3.13	$	3.24	$	10.05		$	10.53

Footnote (a) is contained in the accompanying Notes to Financial Schedules at the end of this release.

Carl H. Lindner III and S. Craig Lindner, AFG’s Co-Chief Executive Officers, issued this statement: “We are very pleased with our strong performance in the 2023 fourth quarter and full year. In addition to producing an annual core operating return on equity of nearly 20%, net written premiums grew by 8% during the year. Excellent underwriting results, strong investment performance and effective capital management enable us to continue to create long-term value for our shareholders. We are thankful for our talented insurance and investment professionals, who have positioned us well as we enter 2024.”

Page 2

Messrs. Lindner continued: “AFG continued to have significant excess capital at December 31, 2023. 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 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. Over the past year, we increased our quarterly dividend by 12.7% and paid special dividends of $5.50 per share. Growth in adjusted book value plus dividends was a very strong 16.6% during 2023.”

The Company also announced today that its Board of Directors declared a special cash dividend of $2.50 per share of American Financial Group common stock. The dividend is payable on February 28, 2024, to shareholders of record on February 16, 2024. The aggregate amount of this special dividend will be approximately $210 million. This special dividend is in addition to the Company’s regular quarterly cash dividend of $0.71 per share most recently paid on January 25, 2024.

For many years, AFG has established a range of core net operating earnings per share guidance for the new year and provided various other guidance measures as part of its fourth quarter earnings release. After reviewing industry and peer practices and following a number of discussions with analysts and shareholders, we have decided that beginning in 2024, we will cease providing guidance. Our focus has always been on long-term shareholder value creation by generating strong returns on equity that grow book value per share and we believe that this change aligns with that focus.

As we continue to evaluate our disclosures going forward, for 2024 we expect that performance in line with the assumptions underlying our 2024 business plan would result in core operating earnings per share of approximately $11.00 and generate a core operating return on equity excluding AOCI of approximately 20%. These assumptions include 8% growth in net written premiums compared to 2023, a similar combined ratio to the strong result in 2023, a reinvestment rate of approximately 5.5%, and a return of approximately 6% on our $2.4 billion portfolio of alternative investments.

Specialty Property and Casualty Insurance Operations

The Specialty P&C insurance operations generated a very strong 87.7% combined ratio in the fourth quarter of 2023, 1.1 points higher than the 86.6% reported in the prior year. Fourth quarter results include 1.4 points related to catastrophe losses, compared to 0.9 points in the 2022 fourth quarter. Fourth quarter 2023 results benefited from 3.3 points of favorable prior year reserve development, compared to 3.6 points in the fourth quarter of 2022. Underwriting profit was $212 million for the 2023 fourth quarter compared to $217 million in the fourth quarter of 2022. Lower year-over-year underwriting profit in our Specialty Casualty and Property and Transportation Groups was partially offset by higher underwriting profit in our Specialty Financial Group.

Fourth quarter 2023 gross and net written premiums were both up 8% when compared to the same period in 2022. Year-over-year growth was reported within each of the Specialty P&C groups as a result of a combination of new business opportunities, increased exposures and a good renewal rate environment. Gross and net written premiums increased 7% and 8%, respectively, for the full year in 2023 and established new records for premium production for AFG.

Average renewal pricing across our P&C Group, excluding workers’ compensation, was up approximately 7% for the quarter, in line with renewal rates in the previous quarter. Including workers’ compensation, renewal rates were up approximately 6% overall, a point higher than the previous quarter. We believe we are achieving overall renewal rate increases in excess of prospective loss ratio trends to meet or exceed targeted returns.

Page 3

The Property and Transportation Group reported an underwriting profit of $67 million in the fourth quarter of 2023, compared to $68 million in the comparable prior year period. Below average underwriting profitability in our crop insurance operations was largely offset by higher year-over year underwriting profits in our property & inland marine and our non-crop agricultural businesses. Catastrophe losses in this group were $5 million in the fourth quarter of 2023, compared to $7 million in the prior year period. The businesses in the Property and Transportation Group achieved a 90.3% calendar year combined ratio overall in the fourth quarter, in line with the 90.0% achieved in the comparable period in 2022. Excluding crop, the fourth quarter calendar year combined ratio in this group improved three points year-over-year.

Fourth quarter 2023 gross and net written premiums in this group were up 4% and 1%, respectively, when compared to the 2022 fourth quarter, due primarily to slightly higher crop premium related to the CRS acquisition, which was partially offset by the timing of renewals in several of our transportation businesses. Overall renewal rates in this group increased 7% on average for the fourth quarter of 2023, a point higher than the previous quarter. Pricing for the full year for this group was up 6% overall.

The Specialty Casualty Group reported an underwriting profit of $114 million in the 2023 fourth quarter compared to $128 million in the comparable 2022 period. Higher year-over-year underwriting profits in our workers’ compensation and executive liability businesses were more than offset by lower underwriting profit in our excess and surplus lines business. Catastrophe losses for this group were $8 million and $7 million in the fourth quarters of 2023 and 2022, respectively. The businesses in the Specialty Casualty Group achieved an exceptionally strong 84.6% calendar year combined ratio overall in the fourth quarter, 3.3 points higher than the 81.3% reported in the comparable period in 2022.

Fourth quarter 2023 gross and net written premiums increased 6% and 7%, respectively, when compared to the same prior year period. New business opportunities and increased exposures in our excess & surplus lines operations and increased exposures from payroll growth in our workers’ compensation businesses led to higher year-over-year premiums, with nearly all of the businesses in this group reporting growth during the quarter. This growth was partially offset by lower premiums in our D&O businesses. Excluding workers’ compensation, renewal pricing for this group was up 7% in the fourth quarter and was up 4% overall, with both measures down about 1% from the renewal pricing in the previous quarter. Pricing for this group for the full year, excluding workers’ compensation, was up 6%, and up 4% overall.

The Specialty Financial Group reported an underwriting profit of $45 million in the fourth quarter of 2023, compared to $33 million in the fourth quarter of 2022, primarily as a result of higher underwriting profit in our financial institutions business. Catastrophe losses for this group were $4 million in the fourth quarter of 2023, compared to a favorable impact of $3 million in the fourth quarter of 2022 that resulted from adjusted reinstatement premiums related to Hurricane Ian. This group continued to achieve excellent underwriting margins and reported an outstanding 81.3% combined ratio for the fourth quarter of 2023, an improvement of 1.8 points over the prior year period.

Gross and net written premiums increased by 27% and 26%, respectively, in the 2023 fourth quarter when compared to the same 2022 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 9% in the fourth quarter, accelerating four points from the previous quarter. Renewal pricing in this group was up 5% for the full year of 2023.

Carl Lindner III stated, “Our specialty P&C businesses closed out 2023 on a strong note. Underwriting margins continue to be very good, and we are seeing opportunities to grow our Specialty P&C businesses through increasing exposures, new opportunities, and a continued favorable pricing environment. Nearly all the businesses in our diversified Specialty P&C portfolio continue to meet or exceed targeted returns, and we set new records for premium production in 2023.”

Page 4

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.

Investments

Net Investment Income – For the quarter ended December 31, 2023, property and casualty net investment income was approximately 1% 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 December 31, 2023, increased 19% 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 0.8% for the 2023 fourth quarter compared to 5.3% 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.

For the twelve months ended December 31, 2023, P&C net investment income was approximately 7% higher than the comparable 2022 period. The return on alternative investments was 7.0% for 2023 compared to 13.2% earned on P&C alternative investments in 2022. Excluding alternative investments, net investment income in our property and casualty insurance operations for 2023 increased 35% year-over-year as a result of the impact of rising interest rates and higher balances of invested assets. The average annual return on alternative investments over the five calendar years ended December 31, 2023, was approximately 13%.

Non-Core Net Realized Gains (Losses) – AFG recorded fourth quarter 2023 net realized gains of $25 million ($0.29 per share) after tax, which included $22 million ($0.26 per share) in after-tax net gains to adjust equity securities that the Company continued to own at December 31, 2023, to fair value. AFG recorded net realized gains of $21 million ($0.25 per share) after tax in the comparable 2022 period.

After-tax unrealized losses related to fixed maturities were $304 million at December 31, 2023. Our portfolio continues to be high quality, with 94% 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.

Page 5

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 fourth quarter and full year results at 11:30 a.m. (ET) tomorrow, Wednesday, February 7, 2024. There are 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.

Page 6

Contact:

Diane P. Weidner, IRC

Vice President - Investor & Media Relations

513-369-5713

Websites:

www.AFGinc.com

www.GreatAmericanInsuranceGroup.com

# # #

(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.

AFG2024-04

Page 7

AMERICAN FINANCIAL GROUP, INC., AND SUBSIDIARIES

SUMMARY OF EARNINGS AND SELECTED BALANCE SHEET DATA

(In Millions, Except Per Share Data)


	Three months ended December 31,					Twelve months ended December 31,
	2023		2022			2023			2022
Revenues
P&C insurance net earned premiums	$	1,732	$	1,623		$	6,531		$	6,085
Net investment income		159		168			742			717
Realized gains (losses)		31		27			(40	)		(116	)
Income of managed investment entities:
Investment income		100		93			421			268
Gain (loss) on change in fair value of assets/liabilities		15		(6	)		27			(31	)
Other income		46		24			146			117

Total revenues		2,083		1,929			7,827			7,040
Costs and expenses
P&C insurance losses & expenses		1,549		1,413			5,968			5,347
Interest charges on borrowed money		19		20			76			85
Expenses of managed investment entities		102		82			405			230
Other expenses		78		68			305			255

Total costs and expenses		1,748		1,583			6,754			5,917

Earnings before income taxes		335		346			1,073			1,123
Provision for income taxes		72		70			221			225

Net earnings	$	263	$	276		$	852		$	898

Diluted earnings per common share	$	3.13	$	3.24		$	10.05		$	10.53

Average number of diluted shares		83.8		85.3			84.8			85.3


Selected Balance Sheet Data:	December 31, 2023		December 31, 2022
Total cash and investments	$	15,263	$	14,512
Long-term debt	$	1,475	$	1,496
Shareholders’ equity^(b)	$	4,258	$	4,052
Shareholders’ equity (excluding unrealized gains/losses related to fixed maturities)^(b)	$	4,562	$	4,578
Book value per share^(b)	$	50.91	$	47.56
Book value per share (excluding unrealized gains/losses related to fixed maturities)^(b)	$	54.54	$	53.73
Common Shares Outstanding		83.6		85.2

Footnote (b) is contained in the accompanying Notes to Financial Schedules at the end of this release.

Page 8

AMERICAN FINANCIAL GROUP, INC.

SPECIALTY P&C OPERATIONS

(Dollars in Millions)


	Three months ended December 31,						Pct.			Twelve months ended December 31,						Pct.
	2023			2022			Change			2023			2022			Change
Gross written premiums	$	1,992		$	1,845			8	%	$	9,656		$	9,057			7	%

Net written premiums	$	1,445		$	1,338			8	%	$	6,692		$	6,206			8	%

Ratios (GAAP):
Loss & LAE ratio		60.7	%		60.8	%					61.5	%		59.6	%
Underwriting expense ratio		27.0	%		25.8	%					28.8	%		27.6	%

Specialty Combined Ratio		87.7	%		86.6	%					90.3	%		87.2	%

Combined Ratio – P&C Segment		87.8	%		86.5	%					90.4	%		87.3	%

Supplemental Information:^(c)
Gross Written Premiums:
Property & Transportation	$	623		$	601			4	%	$	4,146		$	4,060			2	%
Specialty Casualty		1,069			1,007			6	%		4,368			4,115			6	%
Specialty Financial		300			237			27	%		1,142			882			29	%

	$	1,992		$	1,845			8	%	$	9,656		$	9,057			7	%

Net Written Premiums:
Property & Transportation	$	426		$	423			1	%	$	2,551		$	2,515			1	%
Specialty Casualty		700			655			7	%		2,944			2,728			8	%
Specialty Financial		250			199			26	%		935			711			32	%
Other		69			61			13	%		262			252			4	%

	$	1,445		$	1,338			8	%	$	6,692		$	6,206			8	%

Combined Ratio (GAAP):
Property & Transportation		90.3	%		90.0	%					92.8	%		91.7	%
Specialty Casualty		84.6	%		81.3	%					87.0	%		81.2	%
Specialty Financial		81.3	%		83.1	%					87.3	%		83.7	%
Aggregate Specialty Group		87.7	%		86.6	%					90.3	%		87.2	%


	Three months ended December 31,						Twelve months ended December 31,
	2023			2022			2023			2022
Reserve Development (Favorable)/Adverse:
Property & Transportation	$	(12	)	$	(13	)	$	(84	)	$	(92	)
Specialty Casualty		(37	)		(50	)		(110	)		(190	)
Specialty Financial		(8	)		(8	)		(32	)		(47	)
Other Specialty		—			13			—			40

Specialty Group		(57	)		(58	)		(226	)		(289	)
Other		1			(1	)		2			4

Total Reserve Development	$	(56	)	$	(59	)	$	(224	)	$	(285	)

Points on Combined Ratio:
Property & Transportation		(1.8	)		(1.8	)		(3.3	)		(3.7	)
Specialty Casualty		(5.0	)		(7.3	)		(3.8	)		(7.2	)
Specialty Financial		(3.4	)		(4.1	)		(3.7	)		(6.8	)
Aggregate Specialty Group		(3.3	)		(3.6	)		(3.4	)		(4.7	)
Total P&C Segment		(3.2	)		(3.6	)		(3.4	)		(4.7	)

Footnote (c) is contained in the accompanying Notes to Financial Schedules at the end of this release.

Page 9

AMERICAN FINANCIAL GROUP, INC.

Notes to Financial Schedules

a)	Components of core net operating earnings (dollars in millions):


	Three months ended December 31,						Twelve months ended December 31,
	2023			2022			2023			2022
Core Operating Earnings before Income Taxes:
P&C insurance segment	$	357		$	363		$	1,304		$	1,419
Interest and other corporate expenses		(53	)		(45	)		(177	)		(171	)

Core operating earnings before income taxes		304			318			1,127			1,248
Related income taxes		66			63			232			255

Core net operating earnings	$	238		$	255		$	895		$	993

b)	Shareholders’ Equity at December 31, 2023, includes $304 million ($3.63 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.

Page 10

EX-99.2

Exhibit 99.2


		American Financial Group, Inc.
		Investor Supplement - Fourth Quarter 2023
		February 6, 2024
		American Financial Group, Inc.
		Corporate Headquarters
		Great American Insurance Group Tower 301 E Fourth Street
		Cincinnati, OH 45202 513 579 6739

American Financial Group, Inc.

Table of Contents - Investor Supplement - Fourth Quarter 2023


Section	Page
Table of Contents - Investor Supplement - Fourth Quarter 2023		2
Financial Highlights		3
Summary of Earnings		4
Earnings Per Share Summary		5

Property and Casualty Insurance Segment
Property and Casualty Insurance - Summary Underwriting Results (GAAP)		6
Specialty - Underwriting Results (GAAP)		7
Property and Transportation - Underwriting Results (GAAP)		8
Specialty Casualty - Underwriting Results (GAAP)		9
Specialty Financial - Underwriting Results (GAAP)		10
Other Specialty - Underwriting Results (GAAP)		11

Consolidated Balance Sheet / Book Value / Debt
Consolidated Balance Sheet		12
Book Value Per Share and Price / Book Summary		13
Capitalization		14
Additional Supplemental Information		15

Consolidated Investment Supplement
Total Cash and Investments		16
Net Investment Income		17
Alternative Investments		18
Fixed Maturities - By Security Type - AFG Consolidated		19

Appendix
A. Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2023		20
B. Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2022		21
C. Corporate Securities by Credit Rating & NAIC Designation by Industry 12/31/2023		22
D. Corporate Securities by Credit Rating & NAIC Designation by Industry 12/31/2022		23
E. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type 12/31/2023		24
F. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type 12/31/2022		25
G. Real Estate-Related Investments 12/31/2023		26
H. Real Estate-Related Investments 12/31/2022		27

Page 2

American Financial Group, Inc.

Financial Highlights

(in millions, except per share information)


	Three Months Ended															Twelve Months Ended
	12/31/2023			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
Highlights
Net earnings	$	263		$	177		$	200		$	212		$	276		$	852		$	898
Core net operating earnings		238			208			202			247			255			895			993
Total assets		29,787			30,825			29,048			28,481			28,831			29,787			28,831
Adjusted shareholders’ equity (a)		4,562			4,536			4,490			4,375			4,578			4,562			4,578
Property and Casualty net written premiums		1,445			2,061			1,667			1,519			1,338			6,692			6,206
Per share data
Diluted earnings per share	$	3.13		$	2.09		$	2.34		$	2.49		$	3.24		$	10.05		$	10.53
Core net operating earnings per share		2.84			2.45			2.38			2.89			2.99			10.56			11.63
Adjusted book value per share (a)		54.54			53.90			52.90			51.37			53.73			54.54			53.73
Dividends per common share		2.21			0.63			0.63			4.63			2.63			8.10			14.31
Financial ratios
Annualized return on equity (b)		23.0	%		15.7	%		17.9	%		18.9	%		24.2	%		18.8	%		19.2	%
Annualized core operating return on equity (b)		20.9	%		18.3	%		18.2	%		22.0	%		22.3	%		19.8	%		21.2	%
Property and Casualty combined ratio - Specialty:
Loss & LAE ratio		60.7	%		66.7	%		60.2	%		57.0	%		60.8	%		61.5	%		59.6	%
Underwriting expense ratio		27.0	%		25.5	%		31.7	%		32.2	%		25.8	%		28.8	%		27.6	%

Combined ratio - Specialty		87.7	%		92.2	%		91.9	%		89.2	%		86.6	%		90.3	%		87.2	%

(a)	Excludes unrealized gains (losses) related to fixed maturity investments, a reconciliation to the GAAP measure is on page 13.

(b)	Excludes accumulated other comprehensive income.

Page 3

American Financial Group, Inc.

Summary of Earnings

($ in millions)


	Three Months Ended															Twelve Months Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
Property and Casualty Insurance
Underwriting profit	$	211		$	142		$	124		$	154		$	218		$	631		$	776
Net investment income		161			170			191			207			159			729			683
Other income (expense)		(15	)		(14	)		(16	)		(11	)		(14	)		(56	)		(40	)

Property and Casualty Insurance operating earnings		357			298			299			350			363			1,304			1,419
Interest expense of parent holding companies		(19	)		(19	)		(19	)		(19	)		(20	)		(76	)		(85	)
Other expense		(34	)		(22	)		(22	)		(23	)		(25	)		(101	)		(86	)

Pretax core operating earnings		304			257			258			308			318			1,127			1,248
Income tax expense		66			49			56			61			63			232			255

Core net operating earnings		238			208			202			247			255			895			993
Non-core items, net of tax:
Realized gains (losses) on securities		25			(15	)		(1	)		(37	)		21			(28	)		(92	)
Realized loss on subsidiaries		—			(4	)		—			—			—			(4	)		—
Special A&E charges - Former Railroad and Manufacturing operations		—			(12	)		—			—			—			(12	)		—
Gain (loss) on retirement of debt		—			—			(1	)		2			—			1			(7	)
Other non-core items		—			—			—			—			—			—			4

Net earnings	$	263		$	177		$	200		$	212		$	276		$	852		$	898

Page 4

American Financial Group, Inc.

Earnings Per Share Summary

(in millions, except per share information)


	Three Months Ended													Twelve Months Ended
	12/31/23		9/30/23			6/30/23			3/31/23			12/31/22		12/31/23			12/31/22
Core net operating earnings	$	238	$	208		$	202		$	247		$	255	$	895		$	993

Net earnings	$	263	$	177		$	200		$	212		$	276	$	852		$	898

Average number of diluted shares		83.817		84.745			85.172			85.378			85.350		84.774			85.324
Diluted earnings per share:
Core net operating earnings per share	$	2.84	$	2.45		$	2.38		$	2.89		$	2.99	$	10.56		$	11.63
Realized gains (losses) on securities		0.29		(0.17	)		(0.02	)		(0.42	)		0.25		(0.33	)		(1.06	)
Realized loss on subsidiaries		—		(0.04	)		—			—			—		(0.04	)		—
Special A&E charges - Former Railroad and Manufacturing operations		—		(0.15	)		—			—			—		(0.15	)		—
Gain (loss) on retirement of debt		—		—			(0.02	)		0.02			—		0.01			(0.09	)
Other non-core items		—		—			—			—			—		—			0.05

Diluted earnings per share	$	3.13	$	2.09		$	2.34		$	2.49		$	3.24	$	10.05		$	10.53

Page 5

American Financial Group, Inc.

Property and Casualty Insurance - Summary Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Twelve Months Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
Property and Transportation	$	67		$	42		$	32		$	43		$	68		$	184		$	208
Specialty Casualty		114			78			95			88			128			375			500
Specialty Financial		45			29			10			26			33			110			114
Other Specialty		(14	)		(6	)		(14	)		(2	)		(12	)		(36	)		(42	)

Underwriting profit - Specialty		212			143			123			155			217			633			780
Other core charges, included in loss and LAE		(1	)		(1	)		1			(1	)		1			(2	)		(4	)

Underwriting profit - Property and Casualty Insurance	$	211		$	142		$	124		$	154		$	218		$	631		$	776

Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	1		$	—		$	2		$	—		$	(13	)	$	3		$	5
Catastrophe losses		24			56			51			31			24			162			88

Total current accident year catastrophe losses	$	25		$	56		$	53		$	31		$	11		$	165		$	93

Prior year loss reserve development (favorable) / adverse	$	(56	)	$	(43	)	$	(62	)	$	(63	)	$	(59	)	$	(224	)	$	(285	)

Combined ratio:
Property and Transportation		90.3	%		94.8	%		94.2	%		91.0	%		90.0	%		92.8	%		91.7	%
Specialty Casualty		84.6	%		89.4	%		86.6	%		87.5	%		81.3	%		87.0	%		81.2	%
Specialty Financial		81.3	%		87.6	%		95.0	%		86.5	%		83.1	%		87.3	%		83.7	%
Other Specialty		118.9	%		109.8	%		122.2	%		103.5	%		118.1	%		113.9	%		117.1	%
Combined ratio - Specialty		87.7	%		92.2	%		91.9	%		89.2	%		86.6	%		90.3	%		87.2	%
Other core charges		0.1	%		0.1	%		(0.2	%)		0.1	%		(0.1	%)		0.1	%		0.1	%

Combined ratio		87.8	%		92.3	%		91.7	%		89.3	%		86.5	%		90.4	%		87.3	%

P&C combined ratio excl. catastrophe losses and prior year reserve development		89.6	%		91.5	%		92.4	%		91.5	%		89.3	%		91.2	%		90.4	%

Loss and LAE components:
Current accident year, excluding catastrophe losses		62.6	%		66.0	%		60.7	%		59.3	%		63.5	%		62.4	%		62.8	%
Current accident year catastrophe losses		1.4	%		3.1	%		3.5	%		2.2	%		0.8	%		2.6	%		1.6	%
Prior accident year loss reserve development		(3.2	%)		(2.3	%)		(4.2	%)		(4.4	%)		(3.6	%)		(3.4	%)		(4.7	%)

Loss and LAE ratio		60.8	%		66.8	%		60.0	%		57.1	%		60.7	%		61.6	%		59.7	%

Page 6

American Financial Group, Inc.

Specialty - Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Twelve Months Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
Gross written premiums	$	1,992		$	3,140		$	2,369		$	2,155		$	1,845		$	9,656		$	9,057
Ceded reinsurance premiums		(547	)		(1,079	)		(702	)		(636	)		(507	)		(2,964	)		(2,851	)

Net written premiums		1,445			2,061			1,667			1,519			1,338			6,692			6,206
Change in unearned premiums		287			(206	)		(160	)		(82	)		285			(161	)		(121	)

Net earned premiums		1,732			1,855			1,507			1,437			1,623			6,531			6,085
Loss and LAE		1,052			1,238			906			819			987			4,015			3,625
Underwriting expense		468			474			478			463			419			1,883			1,680

Underwriting profit	$	212		$	143		$	123		$	155		$	217		$	633		$	780

Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	1		$	—		$	2		$	—		$	(13	)	$	3		$	5
Catastrophe losses		24			56			51			31			24			162			88

Total current accident year catastrophe losses	$	25		$	56		$	53		$	31		$	11		$	165		$	93

Prior year loss reserve development (favorable) / adverse	$	(57	)	$	(44	)	$	(61	)	$	(64	)	$	(58	)	$	(226	)	$	(289	)

Combined ratio:
Loss and LAE ratio		60.7	%		66.7	%		60.2	%		57.0	%		60.8	%		61.5	%		59.6	%
Underwriting expense ratio		27.0	%		25.5	%		31.7	%		32.2	%		25.8	%		28.8	%		27.6	%

Combined ratio		87.7	%		92.2	%		91.9	%		89.2	%		86.6	%		90.3	%		87.2	%

Specialty combined ratio excl. catastrophe losses and prior year reserve development		89.6	%		91.5	%		92.4	%		91.5	%		89.3	%		91.2	%		90.4	%

Loss and LAE components:
Current accident year, excluding catastrophe losses		62.6	%		66.0	%		60.7	%		59.3	%		63.5	%		62.4	%		62.8	%
Current accident year catastrophe losses		1.4	%		3.0	%		3.5	%		2.2	%		0.9	%		2.5	%		1.5	%
Prior accident year loss reserve development		(3.3	%)		(2.3	%)		(4.0	%)		(4.5	%)		(3.6	%)		(3.4	%)		(4.7	%)

Loss and LAE ratio		60.7	%		66.7	%		60.2	%		57.0	%		60.8	%		61.5	%		59.6	%

Page 7

American Financial Group, Inc.

Property and Transportation - Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Twelve Months Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
Gross written premiums	$	623		$	1,592		$	1,059		$	872		$	601		$	4,146		$	4,060
Ceded reinsurance premiums		(197	)		(687	)		(391	)		(320	)		(178	)		(1,595	)		(1,545	)

Net written premiums		426			905			668			552			423			2,551			2,515
Change in unearned premiums		256			(77	)		(134	)		(77	)		259			(32	)		(28	)

Net earned premiums		682			828			534			475			682			2,519			2,487
Loss and LAE		470			636			346			289			489			1,741			1,735
Underwriting expense		145			150			156			143			125			594			544

Underwriting profit	$	67		$	42		$	32		$	43		$	68		$	184		$	208

Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	2		$	—		$	—		$	—		$	(1	)	$	2		$	3
Catastrophe losses		3			14			15			19			8			51			42

Total current accident year catastrophe losses	$	5		$	14		$	15		$	19		$	7		$	53		$	45

Prior year loss reserve development (favorable) / adverse	$	(12	)	$	(14	)	$	(21	)	$	(37	)	$	(13	)	$	(84	)	$	(92	)

Combined ratio:
Loss and LAE ratio		69.0	%		76.8	%		64.8	%		60.9	%		71.8	%		69.2	%		69.8	%
Underwriting expense ratio		21.3	%		18.0	%		29.4	%		30.1	%		18.2	%		23.6	%		21.9	%

Combined ratio		90.3	%		94.8	%		94.2	%		91.0	%		90.0	%		92.8	%		91.7	%

Combined ratio excl. catastrophe losses and prior year reserve development		91.5	%		94.8	%		95.1	%		94.8	%		90.8	%		94.1	%		93.5	%

Loss and LAE components:
Current accident year, excluding catastrophe losses		70.2	%		76.8	%		65.7	%		64.7	%		72.6	%		70.5	%		71.6	%
Current accident year catastrophe losses		0.6	%		1.7	%		2.9	%		4.0	%		1.0	%		2.0	%		1.9	%
Prior accident year loss reserve development		(1.8	%)		(1.7	%)		(3.8	%)		(7.8	%)		(1.8	%)		(3.3	%)		(3.7	%)

Loss and LAE ratio		69.0	%		76.8	%		64.8	%		60.9	%		71.8	%		69.2	%		69.8	%

Page 8

American Financial Group, Inc.

Specialty Casualty - Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Twelve Months Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
Gross written premiums	$	1,069		$	1,226		$	1,012		$	1,061		$	1,007		$	4,368		$	4,115
Ceded reinsurance premiums		(369	)		(397	)		(319	)		(339	)		(352	)		(1,424	)		(1,387	)

Net written premiums		700			829			693			722			655			2,944			2,728
Change in unearned premiums		37			(95	)		18			(18	)		31			(58	)		(69	)

Net earned premiums		737			734			711			704			686			2,886			2,659
Loss and LAE		438			463			421			417			381			1,739			1,453
Underwriting expense		185			193			195			199			177			772			706

Underwriting profit	$	114		$	78		$	95		$	88		$	128		$	375		$	500

Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	(1	)	$	—		$	2		$	—		$	(1	)	$	1		$	—
Catastrophe losses		9			17			6			3			8			35			11

Total current accident year catastrophe losses	$	8		$	17		$	8		$	3		$	7		$	36		$	11

Prior year loss reserve development (favorable) / adverse	$	(37	)	$	(22	)	$	(24	)	$	(27	)	$	(50	)	$	(110	)	$	(190	)

Combined ratio:
Loss and LAE ratio		59.6	%		63.1	%		59.2	%		59.2	%		55.4	%		60.3	%		54.7	%
Underwriting expense ratio		25.0	%		26.3	%		27.4	%		28.3	%		25.9	%		26.7	%		26.5	%

Combined ratio		84.6	%		89.4	%		86.6	%		87.5	%		81.3	%		87.0	%		81.2	%

Combined ratio excl. catastrophe losses and prior year reserve development		88.5	%		90.0	%		89.0	%		90.9	%		87.5	%		89.6	%		87.9	%

Loss and LAE components:
Current accident year, excluding catastrophe losses		63.5	%		63.7	%		61.6	%		62.6	%		61.6	%		62.9	%		61.4	%
Current accident year catastrophe losses		1.1	%		2.3	%		1.0	%		0.4	%		1.1	%		1.2	%		0.5	%
Prior accident year loss reserve development		(5.0	%)		(2.9	%)		(3.4	%)		(3.8	%)		(7.3	%)		(3.8	%)		(7.2	%)

Loss and LAE ratio		59.6	%		63.1	%		59.2	%		59.2	%		55.4	%		60.3	%		54.7	%

Page 9

American Financial Group, Inc.

Specialty Financial - Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Twelve Months Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
Gross written premiums	$	300		$	322		$	298		$	222		$	237		$	1,142		$	882
Ceded reinsurance premiums		(50	)		(61	)		(58	)		(38	)		(38	)		(207	)		(171	)

Net written premiums		250			261			240			184			199			935			711
Change in unearned premiums		(6	)		(29	)		(45	)		12			(6	)		(68	)		(13	)

Net earned premiums		244			232			195			196			193			867			698
Loss and LAE		85			93			79			71			66			328			238
Underwriting expense		114			110			106			99			94			429			346

Underwriting profit	$	45		$	29		$	10		$	26		$	33		$	110		$	114

Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	(10	)	$	—		$	3
Catastrophe losses		4			22			19			4			7			49			33

Total current accident year catastrophe losses	$	4		$	22		$	19		$	4		$	(3	)	$	49		$	36

Prior year loss reserve development (favorable) / adverse	$	(8	)	$	(10	)	$	(11	)	$	(3	)	$	(8	)	$	(32	)	$	(47	)

Combined ratio:
Loss and LAE ratio		34.8	%		39.8	%		40.9	%		36.0	%		33.8	%		37.8	%		34.1	%
Underwriting expense ratio		46.5	%		47.8	%		54.1	%		50.5	%		49.3	%		49.5	%		49.6	%

Combined ratio		81.3	%		87.6	%		95.0	%		86.5	%		83.1	%		87.3	%		83.7	%

Combined ratio excl. catastrophe losses and prior year reserve development		82.7	%		82.5	%		91.1	%		85.7	%		85.3	%		85.3	%		85.6	%

Loss and LAE components:
Current accident year, excluding catastrophe losses		36.2	%		34.7	%		37.0	%		35.2	%		36.0	%		35.8	%		36.0	%
Current accident year catastrophe losses		2.0	%		9.3	%		9.6	%		2.2	%		1.9	%		5.7	%		4.9	%
Prior accident year loss reserve development		(3.4	%)		(4.2	%)		(5.7	%)		(1.4	%)		(4.1	%)		(3.7	%)		(6.8	%)

Loss and LAE ratio		34.8	%		39.8	%		40.9	%		36.0	%		33.8	%		37.8	%		34.1	%

Page 10

American Financial Group, Inc.

Other Specialty - Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Twelve Months Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
Gross written premiums	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Ceded reinsurance premiums		69			66			66			61			61			262			252

Net written premiums		69			66			66			61			61			262			252
Change in unearned premiums		—			(5	)		1			1			1			(3	)		(11	)

Net earned premiums		69			61			67			62			62			259			241
Loss and LAE		59			46			60			42			51			207			199
Underwriting expense		24			21			21			22			23			88			84

Underwriting profit (loss)	$	(14	)	$	(6	)	$	(14	)	$	(2	)	$	(12	)	$	(36	)	$	(42	)

Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	(1	)	$	—		$	(1	)
Catastrophe losses		8			3			11			5			1			27			2

Total current accident year catastrophe losses	$	8		$	3		$	11		$	5		$	—		$	27		$	1

Prior year loss reserve development (favorable) / adverse	$	—		$	2		$	(5	)	$	3		$	13		$	—		$	40

Combined ratio:
Loss and LAE ratio		82.8	%		76.2	%		91.1	%		69.0	%		83.3	%		80.0	%		82.4	%
Underwriting expense ratio		36.1	%		33.6	%		31.1	%		34.5	%		34.8	%		33.9	%		34.7	%

Combined ratio		118.9	%		109.8	%		122.2	%		103.5	%		118.1	%		113.9	%		117.1	%

Combined ratio excl. catastrophe losses and prior year reserve development		107.3	%		101.2	%		111.7	%		92.0	%		98.5	%		103.3	%		100.1	%

Loss and LAE components:
Current accident year, excluding catastrophe losses		71.2	%		67.6	%		80.6	%		57.5	%		63.7	%		69.4	%		65.4	%
Current accident year catastrophe losses		0.9	%		4.9	%		18.0	%		7.5	%		0.7	%		0.2	%		0.5	%
Prior accident year loss reserve development		10.7	%		3.7	%		(7.5	%)		4.0	%		18.9	%		10.4	%		16.5	%

Loss and LAE ratio		82.8	%		76.2	%		91.1	%		69.0	%		83.3	%		80.0	%		82.4	%

Page 11

American Financial Group, Inc.

Consolidated Balance Sheet

($ in millions)


	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			9/30/22
Assets:
Total cash and investments	$	15,263		$	14,794		$	14,489		$	14,451		$	14,512		$	14,322
Recoverables from reinsurers		4,477			4,421			3,852			3,838			3,977			4,108
Prepaid reinsurance premiums		961			1,223			1,112			1,021			917			1,180
Agents’ balances and premiums receivable		1,471			2,088			1,796			1,459			1,339			1,698
Deferred policy acquisition costs		309			324			316			285			288			292
Assets of managed investment entities		4,484			4,871			5,235			5,391			5,447			5,099
Other receivables		1,171			1,377			721			637			886			1,328
Other assets		1,346			1,422			1,281			1,153			1,219			1,259
Goodwill		305			305			246			246			246			246

Total assets	$	29,787		$	30,825		$	29,048		$	28,481		$	28,831		$	29,532

Liabilities and Equity:
Unpaid losses and loss adjustment expenses	$	13,087		$	12,891		$	11,925		$	11,761		$	11,974		$	12,067
Unearned premiums		3,451			3,997			3,686			3,435			3,246			3,785
Payable to reinsurers		1,186			1,398			1,038			911			1,035			1,366
Liabilities of managed investment entities		4,307			4,728			5,098			5,258			5,332			5,002
Long-term debt		1,475			1,474			1,474			1,478			1,496			1,533
Other liabilities		2,023			2,356			1,834			1,697			1,696			1,847

Total liabilities	$	25,529		$	26,844		$	25,055		$	24,540		$	24,779		$	25,600
Shareholders’ equity:
Common stock	$	84		$	84		$	85		$	85		$	85		$	85
Capital surplus		1,372			1,372			1,377			1,374			1,368			1,358
Retained earnings		3,121			3,095			3,042			2,933			3,142			3,091
Unrealized gains (losses) - fixed maturities		(287	)		(521	)		(464	)		(413	)		(497	)		(554	)
Unrealized gains (losses) - fixed maturity-related cash flow hedges		(17	)		(34	)		(33	)		(21	)		(29	)		(29	)
Other comprehensive income (loss), net of tax		(15	)		(15	)		(14	)		(17	)		(17	)		(19	)

Total shareholders’ equity		4,258			3,981			3,993			3,941			4,052			3,932

Total liabilities and equity	$	29,787		$	30,825		$	29,048		$	28,481		$	28,831		$	29,532

Page 12

American Financial Group, Inc.

Book Value Per Share and Price / Book Summary

(in millions, except per share information)


	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			9/30/22
Shareholders’ equity	$	4,258		$	3,981		$	3,993		$	3,941		$	4,052		$	3,932
Unrealized (gains) losses related to fixed maturities		304			555			497			434			526			583

Adjusted shareholders’ equity		4,562			4,536			4,490			4,375			4,578			4,515
Goodwill		(305	)		(305	)		(246	)		(246	)		(246	)		(246	)
Intangibles		(213	)		(217	)		(102	)		(105	)		(108	)		(111	)

Tangible adjusted shareholders’ equity	$	4,044		$	4,014		$	4,142		$	4,024		$	4,224		$	4,158

Common shares outstanding		83.636			84.136			84.859			85.172			85.204			85.141
Book value per share:
Book value per share	$	50.91		$	47.31		$	47.06		$	46.27		$	47.56		$	46.18
Adjusted (a)		54.54			53.90			52.90			51.37			53.73			53.03
Tangible, adjusted (b)		48.35			47.71			48.80			47.25			49.58			48.84
Market capitalization
AFG’s closing common share price	$	118.89		$	111.67		$	118.75		$	121.50		$	137.28		$	122.93
Market capitalization	$	9,943		$	9,395		$	10,077		$	10,348		$	11,697		$	10,466
Price / Adjusted book value ratio		2.18			2.07			2.24			2.37			2.56			2.32

(a)	Excludes unrealized gains (losses) related to fixed maturity investments.

(b)	Excludes unrealized gains (losses) related to fixed maturity investments, goodwill and intangibles.

Page 13

American Financial Group, Inc.

Capitalization

($ in millions)


	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			9/30/22
AFG senior obligations	$	823		$	823		$	823		$	828		$	846		$	884
Borrowings drawn under credit facility		—			—			—			—			—			—

Debt excluding subordinated debt	$	823		$	823		$	823		$	828		$	846		$	884
AFG subordinated debentures		675			675			675			675			675			675

Total principal amount of long-term debt	$	1,498		$	1,498		$	1,498		$	1,503		$	1,521		$	1,559
Shareholders’ equity		4,258			3,981			3,993			3,941			4,052			3,932
Less:
Unrealized (gains) losses related to fixed maturity investments		304			555			497			434			526			583

Total adjusted capital	$	6,060		$	6,034		$	5,988		$	5,878		$	6,099		$	6,074

Ratio of debt to total adjusted capital:
Including subordinated debt		24.7	%		24.8	%		25.0	%		25.6	%		24.9	%		25.7	%
Excluding subordinated debt		13.6	%		13.6	%		13.7	%		14.1	%		13.9	%		14.6	%

Page 14

American Financial Group, Inc.

Additional Supplemental Information

($ in millions)


	Three Months Ended										Twelve Months Ended
	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22		12/31/23		12/31/22
Property and Casualty Insurance
Paid Losses (GAAP)	$	938	$	805	$	802	$	881	$	914	$	3,426	$	3,082


	12/31/2023			9/30/23			6/30/23			3/31/23			12/31/22			9/30/22
GAAP Equity (excluding AOCI)
Property and Casualty Insurance	$	5,710		$	5,786		$	5,581		$	5,392		$	5,433		$	5,527
Parent and other subsidiaries		(1,133	)		(1,235	)		(1,077	)		(1,000	)		(838	)		(993	)

AFG GAAP Equity (excluding AOCI)	$	4,577		$	4,551		$	4,504		$	4,392		$	4,595		$	4,534

Allowable dividends without regulatory approval
Property and Casualty Insurance	$	946		$	887		$	887		$	887		$	887		$	843

Page 15

American Financial Group, Inc.

Total Cash and Investments

($ in millions)


	Carrying Value - December 31, 2023
	Property and Casualty Insurance		Parent & Other		Consolidate CLOs			Total AFG Consolidated		% of Investment Portfolio
Total cash and investments:
Cash and cash equivalents	$	940	$	285	$	—		$	1,225		8	%
Fixed maturities - Available for sale		10,225		152		—			10,377		68	%
Fixed maturities - Trading		57		—		—			57		0	%
Equity securities - Common stocks		586		—		—			586		4	%
Equity securities - Perpetual preferred		432		—		—			432		3	%
Investments accounted for using the equity method		1,812		2		—			1,814		12	%
Mortgage loans		643		—		—			643		4	%
Real estate and other investments		211		93		(175	)		129		1	%

Total cash and investments	$	14,906	$	532	$	(175	)	$	15,263		100	%


	Carrying Value - December 31, 2022
	Property and Casualty Insurance		Parent & Other		Consolidate CLOs			Total AFG Consolidated		% of Investment Portfolio
Total cash and investments:
Cash and cash equivalents	$	622	$	250	$	—		$	872		6	%
Fixed maturities - Available for sale		9,505		590		—			10,095		70	%
Fixed maturities - Trading		32		—		—			32		0	%
Equity securities - common stocks		553		—		—			553		4	%
Equity securities - perpetual preferred		457		—		—			457		3	%
Investments accounted for using the equity method		1,699		1		—			1,700		12	%
Mortgage loans		676		—		—			676		4	%
Real estate and other investments		153		89		(115	)		127		1	%

Total cash and investments	$	13,697	$	930	$	(115	)	$	14,512		100	%

Page 16

American Financial Group, Inc.

Net Investment Income

($ in millions)


	Three Months Ended															Twelve Months Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
Property and Casualty Insurance:
Gross investment income excluding alternative investments
Fixed maturities	$	131		$	121		$	117		$	112		$	107		$	481		$	358
Equity securities		7			8			8			9			13			32			35
Other investments (a)		21			19			16			13			14			69			40

Gross investment income excluding alternative investments		159			148			141			134			134			582			433
Gross investment income from alternative investments (b)		5			25			55			78			28			163			265

Total gross investment income		164			173			196			212			162			745			698
Investment expenses		(3	)		(3	)		(5	)		(5	)		(3	)		(16	)		(15	)

Total net investment income	$	161		$	170		$	191		$	207		$	159		$	729		$	683

Average cash and investments (c)	$	15,227		$	14,899		$	14,498		$	14,350		$	14,304		$	14,753		$	14,048

Average yield - fixed maturities before inv expenses (d)		4.99	%		4.68	%		4.62	%		4.40	%		4.15	%		4.67	%		3.63	%
Average yield - overall portfolio, net (d)		4.23	%		4.56	%		5.27	%		5.77	%		4.45	%		4.94	%		4.86	%
Average tax equivalent yield - overall portfolio, net (d)		4.31	%		4.63	%		5.34	%		5.83	%		4.53	%		5.01	%		4.96	%
AFG consolidated net investment income:
Property & Casualty core	$	161		$	170		$	191		$	207		$	159		$	729		$	683
Parent & other		7			10			12			11			9			40			24
Consolidate CLOs		(9	)		(12	)		(5	)		(1	)		—			(27	)		10

Total net investment income	$	159		$	168		$	198		$	217		$	168		$	742		$	717

Average cash and investments (c)	$	15,540		$	15,264		$	15,025		$	15,058		$	15,083		$	15,254		$	15,231

Average yield - overall portfolio, net (d)		4.09	%		4.40	%		5.27	%		5.76	%		4.46	%		4.86	%		4.71	%
Average yield - fixed maturities before inv expenses (d)		5.01	%		4.74	%		4.67	%		4.43	%		4.19	%		4.70	%		3.54	%

(a)	Includes income from mortgage loans, real estate, short-term investments, and cash equivalents.

(b)	Investment income on alternative investments is detailed on page 18.

(c)	Average cash and investments is the average of the beginning and ending quarter balances, or the average of the five quarters balances.

(d)	Average yield is calculated by dividing investment income for the period by the average balance.

Page 17

American Financial Group, Inc.

Alternative Investments

($ in millions)


	Three Months Ended															Twelve Months Ended
	12/31/23			9/30/23			6/30/23			3/31/23			12/31/22			12/31/23			12/31/22
Property and Casualty Insurance:
Net Investment Income
Convertible fixed maturities MTM through investment income		$ (2	)	$	(11	)	$	8		$	4		$	—		$	(1	)	$	—
Equity securities MTM through investment income (a)		1			7			14			16			7			38			8
Investments accounted for using the equity method (b)		(3	)		17			28			57			21			99			267
AFG managed CLOs (eliminated in consolidation)		9			12			5			1			—			27			(10	)

Total Property & Casualty	$	5		$	25		$	55		$	78		$	28		$	163		$	265

Investments
Convertible fixed maturities MTM through investment income	$	17		$	17		$	28		$	19		$	—		$	17		$	—
Equity securities MTM through investment income (a)		440			411			423			377			332			440			332
Investments accounted for using the equity method (b)		1,812			1,806			1,755			1,732			1,699			1,812			1,699
AFG managed CLOs (eliminated in consolidation)		175			143			136			132			115			175			115

Total Property & Casualty	$	2,444		$	2,377		$	2,342		$	2,260		$	2,146		$	2,444		$	2,146

Annualized Return - Property & Casualty		0.8	%		4.2	%		9.6	%		14.2	%		5.3	%		7.0	%		13.2	%
AFG Consolidated:
Net Investment Income
Convertible fixed maturities MTM through investment income		$ (2	)	$	(11	)	$	8		$	4		$	—		$	(1	)	$	—
Equity securities MTM through investment income (a)		1			7			14			16			7			38			8
Investments accounted for using the equity method (b)		(3	)		17			28			57			21			99			267
AFG managed CLOs (eliminated in consolidation)		9			12			5			1			—			27			(10	)

Total AFG Consolidated	$	5		$	25		$	55		$	78		$	28		$	163		$	265

Investments
Convertible fixed maturities MTM through investment income	$	17		$	17		$	28		$	19		$	—		$	17		$	—
Equity securities MTM through investment income (a)		440			411			423			377			332			440			332
Investments accounted for using the equity method (b)		1,814			1,807			1,756			1,733			1,700			1,814			1,700
AFG managed CLOs (eliminated in consolidation)		175			143			136			132			115			175			115

Total AFG Consolidated	$	2,446		$	2,378		$	2,343		$	2,261		$	2,147		$	2,446		$	2,147

Annualized Return - AFG Consolidated		0.8	%		4.2	%		9.6	%		14.2	%		5.3	%		7.0	%		13.2	%

(a)	AFG records holding gains and losses in net investment income on its portfolio of limited partnerships and similar investments that do not qualify for equity method accounting and certain other securities classified at purchase as “fair value through net investment income.”

(b)	The majority of AFG’s investments accounted for using the equity method mark their underlying assets to market through net income.

Page 18

American Financial Group, Inc.

Fixed Maturities - By Security Type - AFG Consolidated

($ in millions )


December 31, 2023	Book Value (a)		Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Investment Portfolio
US Government and government agencies	$	243	$	236	$	(7	)		2	%		2	%
States, municipalities and political subdivisions		1,014		984		(30	)		9	%		6	%
Foreign government		288		282		(6	)		3	%		2	%
Residential mortgage-backed securities		1,787		1,658		(129	)		16	%		11	%
Commercial mortgage-backed securities		75		74		(1	)		1	%		0	%
Collateralized loan obligations		1,706		1,687		(19	)		16	%		11	%
Other asset-backed securities		2,472		2,362		(110	)		23	%		15	%
Corporate and other bonds		3,212		3,151		(61	)		30	%		21	%

Total AFG consolidated	$	10,797	$	10,434	$	(363	)		100	%		68	%

Approximate duration - P&C		3.2 years
Approximate duration - P&C including cash		2.9 years
December 31, 2022	Book Value (a)		Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Investment Portfolio
US Government and government agencies	$	233	$	219	$	(14	)		2	%		2	%
States, municipalities and political subdivisions		1,234		1,186		(48	)		12	%		8	%
Foreign government		266		252		(14	)		2	%		2	%
Residential mortgage-backed securities		1,755		1,598		(157	)		16	%		11	%
Commercial mortgage-backed securities		88		85		(3	)		1	%		1	%
Collateralized loan obligations		1,987		1,921		(66	)		19	%		13	%
Other asset-backed securities		2,428		2,245		(183	)		22	%		15	%
Corporate and other bonds		2,766		2,621		(145	)		26	%		18	%

Total AFG consolidated	$	10,757	$	10,127	$	(630	)		100	%		70	%

Approximate duration - P&C		3.1 years
Approximate duration - P&C including cash		2.9 years

(a)	Book Value is amortized cost, net of allowance for expected credit losses.

Page 19

Appendix A

American Financial Group, Inc.

Fixed Maturities by Credit Rating & NAIC Designation by Type

12/31/2023

($ in millions)


	Fair Value by Type
By Credit Rating (a)	US Gov		Munis		Frgn Gov		RMBS		CMBS		CLOs		ABS		Corp/Oth		Total		% Total
Investment grade
AAA	$	—	$	371	$	261	$	1,425	$	63	$	1,500	$	961	$	23	$	4,604		44	%
AA		236		560		10		99		7		173		261		160		1,506		15	%
A		—		44		5		26		1		13		542		839		1,470		14	%
BBB		—		7		6		4		—		—		474		1,740		2,231		21	%

Subtotal - Investment grade		236		982		282		1,554		71		1,686		2,238		2,762		9,811		94	%
BB		—		—		—		2		3		—		7		195		207		2	%
B		—		—		—		4		—		—		2		67		73		1	%
CCC, CC, C		—		—		—		29		—		—		5		7		41		0	%
D		—		—		—		4		—		—		—		—		4		0	%

Subtotal - Non-Investment grade		—		—		—		39		3		—		14		269		325		3	%
Not Rated (b)		—		2		—		65		—		1		110		120		298		3	%

Total	$	236	$	984	$	282	$	1,658	$	74	$	1,687	$	2,362	$	3,151	$	10,434		100	%


	Fair Value by Type
NAIC designation	US Gov		Munis		Frgn gov		RMBS		CMBS		CLOs		ABS		Corp/Oth		Total		% Total
1	$	236	$	977	$	230	$	1,606	$	71	$	1,633	$	1,799	$	1,043	$	7,595		74	%
2		—		7		—		2		—		—		474		1,769		2,252		22	%

Subtotal		236		984		230		1,608		71		1,633		2,273		2,812		9,847		96	%
3		—		—		—		1		3		—		8		195		207		2	%
4		—		—		—		1		—		—		1		61		63		1	%
5		—		—		—		3		—		—		9		67		79		1	%
6		—		—		—		5		—		—		—		—		5		0	%

Subtotal		—		—		—		10		3		—		18		323		354		4	%
Total insurance companies	$	236	$	984	$	230	$	1,618	$	74	$	1,633	$	2,291	$	3,135	$	10,201		100	%

No NAIC designation (c)		—		—		—		—		—		1		9		11		21
Non-Insurance and Foreign Companies (d)		—		—		52		40		—		53		62		5		212

Total	$	236	$	984	$	282	$	1,658	$	74	$	1,687	$	2,362	$	3,151	$	10,434

(a)	If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a security, the rating displayed is the second lowest.

(b)	For ABS, 87% are NAIC 1 and 8% do not have a designation.

For Corp/Oth, 21% are NAIC 1, 21% NAIC 2, 46% NAIC 5 and 9% do not have a designation.

For Total, 58% are NAIC 1, 9% NAIC 2, 21% NAIC 5 and 7% do not have a designation.

(c)	Surplus notes and CLO equity tranches that are classified as other invested assets for STAT.

(d)	98% are investment grade rated.

Page 20

Appendix B

American Financial Group, Inc.

Fixed Maturities by Credit Rating & NAIC Designation by Type

12/31/2022

($ in millions)


	Fair Value by Type
By Credit Rating (a)	US Gov		Munis		Frgn Gov		RMBS		CMBS		CLOs		ABS		Corp/Oth		Total		% Total
Investment grade
AAA	$	219	$	477	$	239	$	1,317	$	63	$	1,708	$	860	$	24	$	4,907		49	%
AA		—		648		9		6		14		169		347		163		1,356		13	%
A		—		50		4		76		2		41		475		670		1,318		13	%
BBB		—		7		—		—		3		—		443		1,287		1,740		17	%

Subtotal - Investment grade		219		1,182		252		1,399		82		1,918		2,125		2,144		9,321		92	%
BB		—		—		—		8		3		—		8		200		219		2	%
B		—		—		—		8		—		—		1		51		60		1	%
CCC, CC, C		—		—		—		103		—		—		5		1		109		1	%
D		—		—		—		8		—		—		—		—		8		0	%

Subtotal - Non-Investment grade		—		—		—		127		3		—		14		252		396		4	%
Not Rated (b)		—		4		—		72		—		3		106		225		410		4	%

Total	$	219	$	1,186	$	252	$	1,598	$	85	$	1,921	$	2,245	$	2,621	$	10,127		100	%


	Fair Value by Type
NAIC designation	US Gov		Munis		Frgn gov		RMBS		CMBS		CLOs		ABS		Corp/Oth		Total		% Total
1	$	219	$	1,178	$	213	$	1,506	$	82	$	1,627	$	1,657	$	878	$	7,360		78	%
2		—		8		—		11		—		—		443		1,310		1,772		19	%

Subtotal		219		1,186		213		1,517		82		1,627		2,100		2,188		9,132		97	%
3		—		—		—		1		3		—		8		239		251		3	%
4		—		—		—		—		—		—		1		46		47		0	%
5		—		—		—		3		—		—		10		22		35		0	%
6		—		—		—		1		—		—		—		—		1		0	%

Subtotal		—		—		—		5		3		—		19		307		334		0
Total insurance companies	$	219	$	1,186	$	213	$	1,522	$	85	$	1,627	$	2,119	$	2,495	$	9,466		100	%

No NAIC designation (c)		—		—		—		—		—		3		—		20		23
Non-Insurance and Foreign Companies (d)		—		—		39		76		—		291		126		106		638
Total	$	219	$	1,186	$	252	$	1,598	$	85	$	1,921	$	2,245	$	2,621	$	10,127

(a)	If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a security, the rating displayed is the second lowest.

(b)	For ABS, 95% are NAIC 1 and 5% are NAIC 5.

For Corp/Oth, 44% are held by non-insurance companies, 11% are NAIC 1, 12% NAIC 2 and 16% NAIC 3.

For Total, 46% are NAIC 1, 7% NAIC 2, 9% NAIC 3 and 26% are held by non-insurance companies.

(c)	Surplus notes and CLO equity tranches that are classified as other invested assets for STAT.

(d)	76% are investment grade rated.

Page 21

Appendix C

American Financial Group, Inc.

Corporate Securities by Credit Rating & NAIC Designation by Industry

12/31/2023

($ in millions)


	Fair Value By Industry
Credit Rating (a)	Asset Managers		Banking		Technology		Insurance		Consumer		Other Financials		Utilities		Autos		REITs		Retailers		Basic Industry		Media		Capital Goods		Other		Total		% Total
Investment Grade
AAA	$	—	$	—	$	11	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	12	$	23		1	%
AA		5		—		18		43		39		29		5		—		—		10		—		—		—		11		160		5	%
A		33		190		57		151		44		45		86		61		47		18		11		3		35		58		839		27	%
BBB		579		210		151		41		69		101		72		79		68		51		110		45		40		124		1,740		55	%

Subtotal		617		400		237		235		152		175		163		140		115		79		121		48		75		205		2,762		88	%
BB		23		2		24		3		27		5		—		5		—		40		15		35		1		15		195		6	%
B		—		—		2		—		10		8		—		4		—		24		—		—		4		15		67		2	%
CCC, CC, C		—		—		2		—		—		—		—		—		—		—		—		—		—		5		7		0	%
D		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		0	%

Subtotal		23		2		28		3		37		13		—		9		—		64		15		35		5		35		269		8	%
Not Rated (b)		—		—		4		11		18		10		—		—		28		—		—		20		6		23		120		4	%

Total	$	640	$	402	$	269	$	249	$	207	$	198	$	163	$	149	$	143	$	143	$	136	$	103	$	86	$	263	$	3,151		100	%


	Fair Value By Industry
NAIC designation	Asset Managers		Banking		Technology		Insurance		Consumer		Other Financials		Utilities		Autos		REITs		Retailers		Basic Industry		Media		Capital Goods		Other		Total		% Total
1	$	38	$	190	$	86	$	194	$	92	$	82	$	92	$	61	$	55	$	28	$	11	$	3	$	35	$	76	$	1,043		33	%
2		579		210		151		41		75		102		71		84		81		51		110		45		40		129		1,769		57	%

Subtotal		617		400		237		235		167		184		163		145		136		79		121		48		75		205		2,812		90	%
3		23		2		23		3		32		6		—		—		—		40		14		35		2		15		195		6	%
4		—		—		1		—		4		8		—		4		—		24		—		—		4		16		61		2	%
5		—		—		8		—		4		—		—		—		7		—		1		20		5		22		67		2	%
6		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		0	%

Subtotal		23		2		32		3		40		14		—		4		7		64		15		55		11		53		323		10	%
Total insurance companies	$	640	$	402	$	269	$	238	$	207	$	198	$	163	$	149	$	143	$	143	$	136	$	103	$	86	$	258	$	3,135		100	%

No NAIC designation (c)		—		—		—		11		—		—		—		—		—		—		—		—		—		—		11
Non-Insurance and Foreign Companies		—		—		—		—		—		—		—		—		—		—		—		—		—		5		5

Total	$	640	$	402	$	269	$	249	$	207	$	198	$	163	$	149	$	143	$	143	$	136	$	103	$	86	$	263	$	3,151

(a)	If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a security, the rating displayed is the second lowest.

(b)	21% of not rated securities are NAIC 1, 21% NAIC 2, 46% NAIC 5 and 9% do not have a designation.

(c)	Surplus notes that are classified as other invested assets for STAT.

Page 22

Appendix D

American Financial Group, Inc.

Corporate Securities by Credit Rating & NAIC Designation by Industry

12/31/2022

($ in millions)


	Fair Value By Industry
Credit Rating (a)	Asset Managers		Banking		Other Financials		Technology		Insurance		Consumer		REITs		Retailers		Basic Industry		Media		Autos		Capital Goods		Energy		Other		Total		% Total
Investment Grade
AAA	$	—	$	—	$	—	$	10	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	14	$	24		1	%
AA		—		—		23		39		21		48		—		5		—		—		—		—		16		11		163		6	%
A		52		144		43		54		129		29		54		17		3		—		42		45		—		58		670		26	%
BBB		442		214		90		105		27		44		63		32		83		32		30		22		17		86		1,287		49	%

Subtotal		494		358		156		208		177		121		117		54		86		32		72		67		33		169		2,144		82	%
BB		22		—		12		23		1		22		2		49		8		34		11		1		5		10		200		7	%
B		—		—		—		3		1		26		—		—		—		—		4		4		—		13		51		2	%
CCC, CC, C		—		—		—		—		—		1		—		—		—		—		—		—		—		—		1		0	%
D		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		0	%

Subtotal		22		—		12		26		2		49		2		49		8		34		15		5		5		23		252		9	%
Not Rated (b)		1		—		120		11		16		25		12		—		2		23		—		3		1		11		225		9	%

Total	$	517	$	358	$	288	$	245	$	195	$	195	$	131	$	103	$	96	$	89	$	87	$	75	$	39	$	203	$	2,621		100	%



	Fair Value By Industry
NAIC designation	Asset Managers		Banking		Other Financials		Technology		Insurance		Consumer		REITs		Retailers		Basic Industry		Media		Autos		Capital Goods		Energy		Other		Total		% Total
1	$	52	$	144	$	79	$	103	$	150	$	88	$	54	$	22	$	3	$	—	$	42	$	45	$	16	$	80	$	878		35	%
2		443		213		91		105		29		48		75		32		83		32		30		24		17		88		1,310		53	%

Subtotal		495		357		170		208		179		136		129		54		86		32		72		69		33		168		2,188		88	%
3		22		—		12		29		2		27		2		49		10		54		11		2		6		13		239		9	%
4		—		—		—		5		—		24		—		—		—		—		4		4		—		9		46		2	%
5		—		—		—		3		—		8		—		—		—		3		—		—		—		8		22		1	%
6		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		0	%

Subtotal		22		—		12		37		2		59		2		49		10		57		15		6		6		30		307		12	%
Total insurance companies	$	517	$	357	$	182	$	245	$	181	$	195	$	131	$	103	$	96	$	89	$	87	$	75	$	39	$	198	$	2,495		100	%

No NAIC designation (c)		—		—		6		—		14		—		—		—		—		—		—		—		—		—		20
Non-Insurance and Foreign Companies		—		1		100		—		—		—		—		—		—		—		—		—		—		5		106

Total	$	517	$	358	$	288	$	245	$	195	$	195	$	131	$	103	$	96	$	89	$	87	$	75	$	39	$	203	$	2,621

(a)	If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a security, the rating displayed is the second lowest.

(b)	For Other Financials, 84% are held by non-insurance companies and 11% are NAIC 1.

For the Total, 44% are held by non-insurance companies, 11% are NAIC 1, 12% NAIC 2 and 16% NAIC 3.

(c)	Surplus notes that are classified as other invested assets for STAT.

Page 23

Appendix E

American Financial Group, Inc.

Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type

12/31/2023

($ in millions)


	Fair Value By Collateral Type
Credit Rating (a)	Whole Business		Commercial Real Estate		Secured Financing (c)		TruPS		Single Family Rental		Triple Net Lease		Railcar		Aircraft		Auto		Other		Total		% Total
Investment Grade
AAA	$	—	$	385	$	24	$	46	$	191	$	157	$	—	$	—	$	67	$	91	$	961		41	%
AA		55		6		20		140		1		2		—		5		14		18		261		11	%
A		10		—		75		16		—		24		168		54		—		195		542		23	%
BBB		366		—		1		—		—		—		6		30		—		71		474		20	%

Subtotal		431		391		120		202		192		183		174		89		81		375		2,238		95	%
BB		—		—		1		—		—		—		—		6		—		—		7		0	%
B		—		—		1		—		—		—		—		1		—		—		2		0	%
CCC, CC, C		—		—		—		—		—		—		—		5		—		—		5		0	%
D		—		—		—		—		—		—		—		—		—		—		—		0	%

Subtotal		—		—		2		—		—		—		—		12		—		—		14		0	%
Not Rated (b)		—		—		96		—		—		—		—		5		—		9		110		5	%

Total	$	431	$	391	$	218	$	202	$	192	$	183	$	174	$	106	$	81	$	384	$	2,362		100	%


	Fair Value By Collateral Type
NAIC designation	Whole Business		Commercial Real Estate ABS		Secured Financing (c)		TruPS		Single Family Rental		Triple Net Lease		Railcar		Aircraft		Auto		Other		Total		% Total
1	$	65	$	331	$	215	$	202	$	192	$	183	$	167	$	60	$	81	$	303	$	1,799		79	%
2		366		—		1		—		—		—		7		30		—		70		474		21	%

Subtotal		431		331		216		202		192		183		174		90		81		373		2,273		100	%
3		—		—		2		—		—		—		—		6		—		—		8		0	%
4		—		—		—		—		—		—		—		1		—		—		1		0	%
5		—		—		—		—		—		—		—		9		—		—		9		0	%
6		—		—		—		—		—		—		—		—		—		—		—		0	%

Subtotal		—		—		2		—		—		—		—		16		—		—		18		0	%
Total insurance companies	$	431	$	331	$	218	$	202	$	192	$	183	$	174	$	106	$	81	$	373	$	2,291		100	%

No NAIC designation		—		—		—		—		—		—		—		—		—		9		9
Non-Insurance and Foreign Companies		—		60		—		—		—		—		—		—		—		2		62

Total	$	431	$	391	$	218	$	202	$	192	$	183	$	174	$	106	$	81	$	384	$	2,362

(a)	If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a security, the rating displayed is the second lowest.

(b)	87% of not rated securities are NAIC 1 and 8% do not have a designation.

(c)	Secured Financings are privately placed funding agreements secured primarily by Single Family Rental properties and Bank Loans.

Page 24

Appendix F

American Financial Group, Inc.

Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type

12/31/2022

($ in millions)


	Fair Value By Collateral Type
Credit Rating (a)	Commercial Real Estate		Whole Business		TruPS		Secured Financing (c)		Triple Net Lease		Single Family Rental		Railcar		Aircraft		Mortgage Servicer Receivables		Consumer Loans		Auto		Other		Total		% Total
Investment Grade
AAA	$	456	$	—	$	40	$	25	$	138	$	156	$	—	$	—	$	5	$	8	$	3	$	29	$	860		38	%
AA		8		60		186		25		21		11		—		7		—		12		13		4		347		16	%
A		—		4		7		34		8		—		160		38		—		33		—		191		475		21	%
BBB		—		326		—		1		—		—		6		26		62		—		—		22		443		20	%

Subtotal		464		390		233		85		167		167		166		71		67		53		16		246		2,125		95	%
BB		—		—		—		1		—		—		—		7		—		—		—		—		8		0	%
B		—		—		—		—		—		—		—		1		—		—		—		—		1		0	%
CCC, CC, C		—		—		—		—		—		—		—		5		—		—		—		—		5		0	%
D		—		—		—		—		—		—		—		—		—		—		—		—		—		0	%

Subtotal		—		—		—		1		—		—		—		13		—		—		—		—		14		0	%
Not Rated (b)		—		—		—		95		—		—		—		5		—		—		—		6		106		5	%

Total	$	464	$	390	$	233	$	181	$	167	$	167	$	166	$	89	$	67	$	53	$	16	$	252	$	2,245		100	%


	Fair Value By Collateral Type
NAIC designation	Commercial Real Estate		Whole Business		TruPS		Secured Financing (c)		Triple Net Lease		Single Family Rental		Railcar		Aircraft		Mortgage Servicer Receivables		Consumer Loans		Auto		Other		Total		% Total
1	$	358	$	64	$	233	$	179	$	167	$	166	$	160	$	46	$	5	$	34	$	16	$	229	$	1,657		78	%
2		—		326		—		1		—		—		6		26		62		—		—		22		443		21	%

Subtotal		358		390		233		180		167		166		166		72		67		34		16		251		2,100		99	%
3		—		—		—		1		—		—		—		7		—		—		—		—		8		0	%
4		—		—		—		—		—		—		—		1		—		—		—		—		1		0	%
5		—		—		—		—		—		—		—		9		—		—		—		1		10		1	%
6		—		—		—		—		—		—		—		—		—		—		—		—		—		0	%

Subtotal		—		—		—		1		—		—		—		17		—		—		—		1		19		1	%
Total insurance companies	$	358	$	390	$	233	$	181	$	167	$	166	$	166	$	89	$	67	$	34	$	16	$	252	$	2,119		100	%

No NAIC designation		—		—		—		—		—		—		—		—		—		—		—		—		—
Non-Insurance and Foreign Companies		106		—		—		—		—		1		—		—		—		19		—		—		126

Total	$	464	$	390	$	233	$	181	$	167	$	167	$	166	$	89	$	67	$	53	$	16	$	252	$	2,245

(a)	If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a security, the rating displayed is the second lowest.

(b)	95% of not rated securities are NAIC 1 and 5% are NAIC 5.

(c)	Secured Financings are privately placed funding agreements secured by assets including Single Family Rental properties, Bank Loans, and Commercial and Residential mortgages.

Page 25

Appendix G

American Financial Group, Inc.

Real Estate-Related Investments

12/31/2023

($ in millions)

Investments accounted for using equity method (Real Estate Funds/Investments) (a)


Investment Type	Book Value		% of Book Value			Occupancy (b)			Collection Rate (c)
Multi-family	$	1,205		91	%		94	%		97	%
Fund Investments		59		5	%		—			—
QOZ Fund - Development		25		2	%		—			—
Office		16		1	%		88	%		100	%
Hospitality		10		1	%		—			—
Land Development		5		—			—			—

Total	$	1,320		100	%

Real Estate


Property Type	Book Value		% of Book Value			Debt
Resort & Marina	$	50		52	%	$	—
Marina		36		37	%		—
Office Building		9		9	%		—
Land		2		2	%		—

Total	$	97		100	%	$	—


Mortgage Loans

Property Type	Book Value		% of Book Value			Loan To Value
Multifamily	$	462		72	%		66	%
Hospitality		125		19	%		49	%
Office		56		9	%		89	%

Total	$	643		100	%		65	%

Currently, no loans are receiving interest deferral through forbearance agreements.

(a)	Total investments accounted for using the equity method is $1.8 billion, the amounts presented in this table only relate to real estate funds/investments.

(b)	Occupancy as of 12/31/23

(c)	Collections for October - December

Page 26

Appendix H

American Financial Group, Inc.

Real Estate-Related Investments

12/31/2022

($ in millions)

Investments accounted for using equity method (Real Estate Funds/Investments) (a)


			% of
Investment Type	Book Value		Book Value			Occupancy (b)			Collection Rate (c)
Multi-family	$	1,127		92	%		95	%		98	%
Fund Investments		52		4	%		—			—
QOZ Fund - Development		19		2	%		—			—
Office		15		1	%		93	%		100	%
Hospitality		9		1	%		—			—
Land Development		6		0	%		—			—
Student Housing		1		0	%		—			—

Total	$	1,229		100	%

Real Estate


			% of
Property Type	Book Value		Book Value			Debt
Resort & Marina	$	50		52	%	$	—
Marina		35		36	%		—
Office Building		10		10	%		—
Land		2		2	%		—

Total	$	97		100	%	$	—

Mortgage Loans


			% of			Loan To
Property Type	Book Value		Book Value			Value
Multifamily	$	491		73	%		67	%
Hospitality		127		19	%		52	%
Office		58		8	%		89	%

Total	$	676		100	%		66	%

Currently, no loans are receiving interest deferral through forbearance agreements.

(a)	Total investments accounted for using the equity method is $1.7 billion, the amounts presented in this table only relate to real estate funds/investments.

(b)	Occupancy as of 12/31/22

(c)	Collections for October - December

Page 27