SEC Filing | American Financial Group, Inc.

AMERICAN FINANCIAL GROUP, INC.

Date: August 3, 2023

/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): August 2, 2023

AMERICAN FINANCIAL GROUP, INC.

(Exact name of registrant as specified in its charter)


Ohio	1-13653	31-1544320
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	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 second quarter of 2023 and the availability of the Investor Supplement on the Company’s website. The press release was issued on August 2, 2023. 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.

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 August 2, 2023, reporting American Financial Group Inc. results for the quarter ended June 30, 2023.

99.2		Investor Supplement – Second 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 Second Quarter Results

•

Net earnings per share of $2.34; includes $0.04 per share loss from after-tax non-core items

•

Second quarter core net operating earnings per share of $2.38

•

Second quarter annualized ROE of 17.9%; core operating ROE of 18.2%

•

Net written premiums up 10% year-over-year; 5% renewal rate increases excluding workers’ compensation

•

Full year 2023 core net operating earnings guidance revised to $10.15 to $11.15 per share, from $11.00 to $12.00 per share estimated previously

CINCINNATI – August 2, 2023 – American Financial Group, Inc. (NYSE: AFG) today reported 2023 second quarter net earnings of $200 million ($2.34 per share) compared to $167 million ($1.96 per share) for the 2022 second quarter. Net earnings for the 2023 second quarter included after-tax non-core realized losses on securities of $1 million ($0.02 per share loss), and a $1 million loss ($0.02 per share loss) on retirement of debt. By comparison, net earnings in the 2022 second quarter included net after-tax non-core items that reduced net income by $76 million ($0.89 per share loss). Other details may be found in the table on the following page.

Core net operating earnings were $202 million ($2.38 per share) for the 2023 second quarter, compared to $243 million ($2.85 per share) in the 2022 second quarter. The year-over-year decrease was due primarily to the impact of elevated catastrophe losses and lower favorable prior year reserve development on underwriting profit in the Specialty Property and Casualty (“P&C”) insurance operations compared to the very strong second quarter of 2022. These items were partially offset by significantly higher net investment income in the 2023 second quarter. Additional details for the 2023 and 2022 second quarters may be found in the table below. Core net operating earnings for the second quarters of 2023 and 2022 generated annualized returns on equity of 18.2% and 20.7%, respectively.


	Three Months Ended June 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	$	244		$	283		$	55	$	62	$	299		$	345
Other expenses		(22	)		(14	)		—		—		(22	)		(14	)
Holding company interest expense		(19	)		(23	)		—		—		(19	)		(23	)

Pretax Core Operating Earnings		203			246			55		62		258			308
Related provision for income taxes		44			52			12		13		56			65

Core Net Operating Earnings	$	159		$	194		$	43	$	49	$	202		$	243

Core Operating Earnings Per Share	$	1.87		$	2.28		$	0.51	$	0.57	$	2.38		$	2.85
Weighted Avg Diluted Shares Outstanding		85.2			85.3			85.2		85.3		85.2			85.3

AFG’s book value per share was $47.06 at June 30, 2023. AFG paid cash dividends of $0.63 per share and repurchased $43 million of its common stock during the second quarter. For the three months ended June 30, 2023, AFG’s growth in book value per share plus dividends was 3.1% and year to date, growth in book value per share plus dividends was 10.0%. Annualized return on equity was 17.9% and 14.3% for the second quarters of 2023 and 2022, respectively.

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Book value per share, excluding unrealized gains (losses) related to fixed maturities, was $52.90 at June 30, 2023. For the three months ended June 30, 2023, AFG’s growth in adjusted book value per share plus dividends was 4.2%. Year to date, growth in adjusted book value per share plus dividends was 8.3%.

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 June 30,						Six months ended June 30,
	2023			2022			2023			2022
Components of net earnings:
Core operating earnings before income taxes	$	258		$	308		$	566		$	686
Pretax non-core items:
Realized gains (losses) on securities		(2	)		(93	)		(48	)		(108	)
Gain (loss) on retirement of debt		(1	)		(9	)		1			(11	)

Earnings before income taxes		255			206			519			567
Provision (credit) for income taxes:
Core operating earnings		56			65			117			140
Non-core items		(1	)		(26	)		(10	)		(30	)

Total provision for income taxes		55			39			107			110

Net earnings	$	200		$	167		$	412		$	457

Net earnings:
Core net operating earnings^(a)	$	202		$	243		$	449		$	546
Non-core items:
Realized gains (losses) on securities		(1	)		(73	)		(38	)		(85	)
Gain (loss) on retirement of debt		(1	)		(7	)		1			(8	)
Other		—			4			—			4

Net earnings	$	200		$	167		$	412		$	457

Components of earnings per share:
Core net operating earnings^(a)	$	2.38		$	2.85		$	5.27		$	6.41
Non-core Items:
Realized gains (losses) on securities		(0.02	)		(0.86	)		(0.45	)		(1.00	)
Gain (loss) on retirement of debt		(0.02	)		(0.08	)		0.01			(0.10	)
Other		—			0.05			—			0.05

Diluted net earnings per share	$	2.34		$	1.96		$	4.83		$	5.36

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 pleased to report an annualized core operating return greater than 18% in the second quarter alongside double-digit premium growth. The higher interest rate environment contributed to meaningfully higher year-over-year investment income, and we continue to be pleased with the performance of our alternative investment portfolio, where returns exceeded our expectations during the quarter. These results, coupled with effective capital management and our entrepreneurial, opportunistic culture and disciplined operating philosophy enable us to continue to create value for our shareholders.

“AFG had approximately $700 million of excess capital at June 30, 2023, which is net of the $235 million in cash deployed to fund the CRS acquisition on July 3, 2023, and includes parent company cash and investments of approximately $550 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.”

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Messrs. Lindner continued, “Based on the results reported in the first half of the year and expectations for the remainder of the year, we now expect AFG’s core net operating earnings in 2023 to be in the range of $10.15 to $11.15 per share, a decrease from our previous range of $11.00 to $12.00 per share. At the midpoint of the range, our revised guidance would produce a core return on equity of approximately 20%. This guidance reflects updated full year expectations for underwriting results, partially offset by an increase in expected net investment income and continues to reflect an average crop year.”

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

Second quarter 2023 gross and net written premiums were up 12% and 10%, respectively, when compared to the second quarter of 2022. Year-over-year premium 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. Average renewal pricing across our P&C Group, excluding workers’ compensation, was up approximately 5% for the quarter, and up approximately 4% overall, consistent with pricing increases achieved in the first quarter. We continued to attain renewal rate increases to achieve targeted returns, and we were successful in achieving or exceeding targeted returns in nearly all of our Specialty P&C businesses.

AFG’s Specialty P&C insurance operations reported underwriting profit of $123 million in the 2023 second quarter, compared to $197 million in the prior year period, with each of our Specialty P&C Groups producing lower year-over-year underwriting profit following the record second quarter underwriting profit reported in the 2022 period.

The second quarter 2023 combined ratio was 91.9%, 6.1 points higher than the prior year period. Second quarter 2023 results include $61 million (4.0 points on the combined ratio) of favorable prior year reserve development, compared to $86 million (6.2 points) in the comparable prior year period. Catastrophe losses impacted underwriting results by $53 million and added 3.5 points to the combined ratio in the second quarter of 2023, compared to $22 million (1.5 points) in the prior year period.

The Property and Transportation Group reported an underwriting profit of $32 million in the second quarter of 2023, compared to $39 million in the second quarter of 2022. Higher year-over-year profitability in our property and inland marine and ocean marine businesses was more than offset by lower favorable prior year reserve development in our transportation businesses. Catastrophe losses in this group were $15 million in the second quarter of 2023, compared to $19 million in the second quarter of 2022. Overall, the businesses in the Property and Transportation Group achieved a 94.2% calendar year combined ratio in the second quarter, 1.8 points higher than the comparable period in 2022.

Second quarter 2023 gross and net written premiums in this group were 10% and 6% higher, respectively, than the comparable prior year period. Factors contributing to the year-over-year growth included the impact of increased rates and exposures in our transportation businesses and earlier planting of corn and soybeans in our crop insurance business. Nearly all of the businesses in this group reported growth in gross and net written premium during the quarter. Overall renewal rates in this group increased 6% on average in the second quarter of 2023, consistent with the pricing achieved in this group for the first quarter of 2023.

The Specialty Casualty Group reported an underwriting profit of $95 million in the second quarter of 2023, compared to $130 million in the second quarter of 2022. Lower levels of favorable prior year reserve development in our workers’ compensation businesses and adverse development in our public entity business were partially offset by higher levels of favorable prior year reserve development in our executive

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liability business. Underwriting profitability in our workers’ compensation businesses overall continues to be excellent. Catastrophe losses for this group were $8 million in the second quarter of 2023 compared to less than $1 million in the prior year quarter. The businesses in the Specialty Casualty Group achieved a very strong 86.6% calendar year combined ratio overall in the second quarter of 2023, an increase of 6.5 points over the exceptionally strong 80.1% reported in the second quarter of 2022.

Second quarter 2023 gross and net written premiums both increased 7% when compared to the same prior year period. Three-fourths of the businesses in this group reported year-over-year growth. The primary factors contributing to the higher premiums included increased exposures and higher renewal rates in our excess and surplus lines business, new business opportunities, strong policy retention and rate increases in several of our targeted market businesses, and payroll growth in our workers’ compensation businesses. This growth was partially offset by lower year-over-year premiums in our executive liability business. Excluding our workers’ compensation businesses, renewal rates for this group were up approximately 6% in the second quarter; overall renewal rates in this group were up 3%.

The Specialty Financial Group reported an underwriting profit of $10 million in the second quarter of 2023, compared to $37 million in the second quarter of 2022. The decrease was primarily due to higher year-over-year catastrophe losses in our financial institutions business and lower profitability in our surety and fidelity businesses. Catastrophe losses for this group were $19 million in the second quarter of 2023 compared to $3 million in the prior year quarter. This group reported a combined ratio of 95.0% for the second quarter of 2023, 16.6 points higher than the very strong 78.4% reported in the comparable period in 2022, primarily the result of elevated catastrophe losses.

Second quarter 2023 gross and net written premiums in this group were up 40% and 36%, respectively, when compared to the prior year period. All of the businesses in this group reported growth during the quarter. Growth in our financial institutions business resulted from market opportunities and the addition of several new accounts. Renewal pricing in this group was up approximately 2% for the quarter.

Carl Lindner III stated, “I am pleased with the underwriting profitability in our Specialty P&C businesses in the second quarter of 2023, especially considering the challenges presented by the higher frequency of industry catastrophe losses during the quarter. New business opportunities, a continued favorable pricing environment and payroll growth contributed to double-digit growth in premiums during the quarter and through the first half of the year. Importantly, we continued to achieve pricing increases that enable us to meet or exceed targeted returns across our portfolio of Specialty P&C businesses.”

Mr. Lindner added, “Our underwriting results through the first six months of 2023 included elevated catastrophe losses and lower profitability in the Specialty Casualty Group, primarily due to lower favorable prior year reserve development in workers’ compensation and the impact of social inflation on selected businesses. Based on these results and our view that these trends will continue for the second half of the year, we now expect an overall 2023 calendar year combined ratio in the range of 89% to 91%, revised upward from our previous guidance of 87% to 89%. We have increased our guidance for net written premiums and now expect net written premiums to be 5% to 8% higher than the $6.2 billion reported in 2022. This compares to our previous guidance of growth in the range of 3% to 6% 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.

Investments

Net Investment Income – For the quarter ended June 30, 2023, property and casualty net investment income was approximately 22% 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 June 30, 2023 increased 45% year-over-year as a result of the impact of rising interest

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rates and higher balances of invested assets. The annualized return on alternative investments was approximately 9.6% for the 2023 second quarter compared to 12.4% 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 2023 assumes a return of approximately 9% on alternative investments.

Non-Core Net Realized Gains (Losses) – AFG recorded second quarter 2023 net realized losses on securities of $1 million ($0.02 per share loss) after tax, which included $2 million ($0.02 per share) in after-tax net gains to adjust equity securities that the Company continued to own at June 30, 2023, to fair value. By comparison, AFG recorded net realized losses on securities of $73 million ($0.86 per share) in the comparable 2022 period.

After-tax unrealized losses related to fixed maturities were $497 million at June 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

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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 second quarter results at 11:30 a.m. (ET) tomorrow, Thursday, August 3, 2023. New, 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.

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.

Page 6

AMERICAN FINANCIAL GROUP, INC.

SUMMARY OF EARNINGS AND SELECTED BALANCE SHEET DATA

(In Millions, Except Per Share Data)


	Three months ended June 30,						Six months ended June 30,
	2023			2022			2023			2022
Revenues
P&C insurance net earned premiums	$	1,507		$	1,393		$	2,944		$	2,695
Net investment income		198			168			415			398
Realized gains (losses) on securities		(2	)		(93	)		(48	)		(108	)
Income of managed investment entities:
Investment income		112			54			216			100
Gain (loss) on change in fair value of assets/liabilities		—			(15	)		(4	)		(20	)
Other income		25			32			57			62

Total revenues		1,840			1,539			3,580			3,127
Costs and expenses
P&C insurance losses & expenses		1,390			1,206			2,683			2,313
Interest charges on borrowed money		19			23			38			46
Expenses of managed investment entities		103			47			198			86
Other expenses		73			57			142			115

Total costs and expenses		1,585			1,333			3,061			2,560

Earnings before income taxes		255			206			519			567
Provision for income taxes		55			39			107			110

Net earnings	$	200		$	167		$	412		$	457

Diluted earnings per common share	$	2.34		$	1.96		$	4.83		$	5.36

Average number of diluted shares		85.2			85.3			85.3			85.3


Selected Balance Sheet Data:	June 30, 2023		December 31, 2022
Total cash and investments	$	14,489	$	14,512
Long-term debt	$	1,474	$	1,496
Shareholders’ equity^(b)	$	3,993	$	4,052
Shareholders’ equity (excluding unrealized gains/losses related to fixed maturities)^(b)	$	4,490	$	4,578
Book value per share^(b)	$	47.06	$	47.56
Book value per share (excluding unrealized gains/losses related to fixed maturities)^(b)	$	52.90	$	53.73
Common Shares Outstanding		84.9		85.2

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

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AMERICAN FINANCIAL GROUP, INC.

SPECIALTY P&C OPERATIONS

(Dollars in Millions)


	Three months ended June 30,						Pct. Change			Six months ended June 30,						Pct. Change
	2023			2022						2023			2022
Gross written premiums	$	2,369		$	2,123			12	%	$	4,524		$	4,059			11	%

Net written premiums	$	1,667		$	1,516			10	%	$	3,186		$	2,884			10	%

Ratios (GAAP):
Loss & LAE ratio		60.2	%		55.4	%					58.6	%		54.3	%
Underwriting expense ratio		31.7	%		30.4	%					32.0	%		30.6	%

Specialty Combined Ratio		91.9	%		85.8	%					90.6	%		84.9	%

Combined Ratio – P&C Segment		91.7	%		86.0	%					90.5	%		85.0	%

Supplemental Information:^(c)
Gross Written Premiums:
Property & Transportation	$	1,059		$	962			10	%	$	1,931		$	1,722			12	%
Specialty Casualty		1,012			948			7	%		2,073			1,924			8	%
Specialty Financial		298			213			40	%		520			413			26	%

	$	2,369		$	2,123			12	%	$	4,524		$	4,059			11	%

Net Written Premiums:
Property & Transportation	$	668		$	632			6	%	$	1,220		$	1,133			8	%
Specialty Casualty		693			646			7	%		1,415			1,296			9	%
Specialty Financial		240			177			36	%		424			336			26	%
Other		66			61			8	%		127			119			7	%

	$	1,667		$	1,516			10	%	$	3,186		$	2,884			10	%

Combined Ratio (GAAP):
Property & Transportation		94.2	%		92.4	%					92.6	%		89.3	%
Specialty Casualty		86.6	%		80.1	%					87.1	%		80.4	%
Specialty Financial		95.0	%		78.4	%					90.8	%		80.1	%
Aggregate Specialty Group		91.9	%		85.8	%					90.6	%		84.9	%


	Three months ended June 30,						Six months ended June 30,
	2023			2022			2023			2022
Reserve Development (Favorable)/Adverse:
Property & Transportation	$	(21	)	$	(30	)	$	(58	)	$	(64	)
Specialty Casualty		(24	)		(49	)		(51	)		(98	)
Specialty Financial		(11	)		(15	)		(14	)		(28	)
Other Specialty		(5	)		8			(2	)		15

Specialty Group		(61	)		(86	)		(125	)		(175	)
Other		(1	)		1			—			2

Total Reserve Development	$	(62	)	$	(85	)	$	(125	)	$	(173	)

Points on Combined Ratio:
Property & Transportation		(3.8	)		(6.0	)		(5.7	)		(6.8	)
Specialty Casualty		(3.4	)		(7.5	)		(3.6	)		(7.5	)
Specialty Financial		(5.7	)		(8.9	)		(3.5	)		(8.5	)
Aggregate Specialty Group		(4.0	)		(6.2	)		(4.2	)		(6.5	)
Total P&C Segment		(4.2	)		(6.1	)		(4.3	)		(6.4	)

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

Page 8

AMERICAN FINANCIAL GROUP, INC.

Notes to Financial Schedules

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


	Three months ended June 30,						Six months ended June 30,
	2023			2022			2023			2022
Core Operating Earnings before Income Taxes:
P&C insurance segment	$	299		$	345		$	649		$	767
Interest and other corporate expenses		(41	)		(37	)		(83	)		(81	)

Core operating earnings before income taxes		258			308			566			686
Related income taxes		56			65			117			140

Core net operating earnings	$	202		$	243		$	449		$	546

b)	Shareholders’ Equity at June 30, 2023 includes $497 million ($5.84 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 9

EX-99.2

Exhibit 99.2

American Financial Group, Inc.

Investor Supplement - Second Quarter 2023

August 2, 2023

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 - Second Quarter 2023


Section	Page
Table of Contents - Investor Supplement - Second 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 6/30/2023		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 6/30/2023		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 6/30/2023		24
F. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type 12/31/2022		25
G. Real Estate-Related Investments 6/30/2023		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															Six Months Ended
	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			6/30/23			6/30/22
Highlights
Net earnings	$	200		$	212		$	276		$	165		$	167		$	412		$	457
Core net operating earnings		202			247			255			192			243			449			546
Total assets		29,048			28,481			28,831			29,532			28,084			29,048			28,084
Adjusted shareholders’ equity (a)		4,490			4,375			4,578			4,515			4,401			4,490			4,401
Property and Casualty net written premiums		1,667			1,519			1,338			1,984			1,516			3,186			2,884
Per share data
Diluted earnings per share	$	2.34		$	2.49		$	3.24		$	1.93		$	1.96		$	4.83		$	5.36
Core net operating earnings per share		2.38			2.89			2.99			2.24			2.85			5.27			6.41
Adjusted book value per share (a)		52.90			51.37			53.73			53.03			51.68			52.90			51.68
Dividends per common share		0.63			4.63			2.63			0.56			8.56			5.26			11.12
Financial ratios
Annualized return on equity (b)		17.9	%		18.9	%		24.2	%		14.7	%		14.3	%		18.3	%		19.2	%
Annualized core operating return on equity (b)		18.2	%		22.0	%		22.3	%		17.1	%		20.7	%		20.0	%		23.0	%
Property and Casualty combined ratio - Specialty:
Loss & LAE ratio		60.2	%		57.0	%		60.8	%		66.4	%		55.4	%		58.6	%		54.3	%
Underwriting expense ratio		31.7	%		32.2	%		25.8	%		24.7	%		30.4	%		32.0	%		30.6	%

Combined ratio - Specialty		91.9	%		89.2	%		86.6	%		91.1	%		85.8	%		90.6	%		84.9	%

(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															Six Months Ended
	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			6/30/23			6/30/22
Property and Casualty Insurance
Underwriting profit	$	124		$	154		$	218		$	155		$	196		$	278		$	403
Net investment income		191			207			159			145			156			398			379
Other income (expense)		(16	)		(11	)		(14	)		(11	)		(7	)		(27	)		(15	)

Property and Casualty Insurance operating earnings		299			350			363			289			345			649			767
Interest expense of parent holding companies		(19	)		(19	)		(20	)		(19	)		(23	)		(38	)		(46	)
Other expense		(22	)		(23	)		(25	)		(26	)		(14	)		(45	)		(35	)

Pretax core operating earnings		258			308			318			244			308			566			686
Income tax expense		56			61			63			52			65			117			140

Core net operating earnings		202			247			255			192			243			449			546
Non-core items, net of tax:
Realized gains (losses) on securities		(1	)		(37	)		21			(28	)		(73	)		(38	)		(85	)
Gain (loss) on retirement of debt		(1	)		2			—			1			(7	)		1			(8	)
Other non-core items		—			—			—			—			4			—			4

Net earnings	$	200		$	212		$	276		$	165		$	167		$	412		$	457

Page 4

American Financial Group, Inc.

Earnings Per Share Summary

(in millions, except per share information)


	Three Months Ended														Six Months Ended
	6/30/23			3/31/23			12/31/22		9/30/22			6/30/22			6/30/23			6/30/22
Core net operating earnings	$	202		$	247		$	255	$	192		$	243		$	449		$	546

Net earnings	$	200		$	212		$	276	$	165		$	167		$	412		$	457

Average number of diluted shares		85.172			85.378			85.350		85.365			85.339			85.274			85.290
Diluted earnings per share:
Core net operating earnings per share	$	2.38		$	2.89		$	2.99	$	2.24		$	2.85		$	5.27		$	6.41
Realized gains (losses) on securities		(0.02	)		(0.42	)		0.25		(0.32	)		(0.86	)		(0.45	)		(1.00	)
Gain (loss) on retirement of debt		(0.02	)		0.02			—		0.01			(0.08	)		0.01			(0.10	)
Other non-core items		—			—			—		—			0.05			—			0.05

Diluted earnings per share	$	2.34		$	2.49		$	3.24	$	1.93		$	1.96		$	4.83		$	5.36

Page 5

American Financial Group, Inc.

Property and Casualty Insurance - Summary Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Six Months Ended
	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			6/30/23			6/30/22
Property and Transportation	$	32		$	43		$	68		$	39		$	39		$	75		$	101
Specialty Casualty		95			88			128			118			130			183			254
Specialty Financial		10			26			33			15			37			36			66
Other Specialty		(14	)		(2	)		(12	)		(14	)		(9	)		(16	)		(16	)

Underwriting profit - Specialty		123			155			217			158			197			278			405
Other core charges, included in loss and LAE		1			(1	)		1			(3	)		(1	)		—			(2	)

Underwriting profit - Property and Casualty Insurance	$	124		$	154		$	218		$	155		$	196		$	278		$	403

Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	2		$	—		$	(13	)	$	18		$	—		$	2		$	—
Catastrophe losses		51			31			24			33			22			82			31

Total current accident year catastrophe losses	$	53		$	31		$	11		$	51		$	22		$	84		$	31

Prior year loss reserve development (favorable) / adverse	$	(62	)	$	(63	)	$	(59	)	$	(53	)	$	(85	)	$	(125	)	$	(173	)

Combined ratio:
Property and Transportation		94.2	%		91.0	%		90.0	%		95.4	%		92.4	%		92.6	%		89.3	%
Specialty Casualty		86.6	%		87.5	%		81.3	%		82.6	%		80.1	%		87.1	%		80.4	%
Specialty Financial		95.0	%		86.5	%		83.1	%		91.3	%		78.4	%		90.8	%		80.1	%
Other Specialty		122.2	%		103.5	%		118.1	%		122.7	%		114.6	%		113.1	%		113.8	%
Combined ratio - Specialty		91.9	%		89.2	%		86.6	%		91.1	%		85.8	%		90.6	%		84.9	%
Other core charges		(0.2	%)		0.1	%		(0.1	%)		0.1	%		0.2	%		(0.1	%)		0.1	%

Combined ratio		91.7	%		89.3	%		86.5	%		91.2	%		86.0	%		90.5	%		85.0	%

P&C combined ratio excl. catastrophe losses and prior year reserve development		92.4	%		91.5	%		89.3	%		91.7	%		90.5	%		92.1	%		90.2	%

Loss and LAE components:
Current accident year, excluding catastrophe losses		60.7	%		59.3	%		63.5	%		67.0	%		60.1	%		60.1	%		59.6	%
Current accident year catastrophe losses		3.5	%		2.2	%		0.8	%		2.5	%		1.6	%		2.7	%		1.2	%
Prior accident year loss reserve development		(4.2	%)		(4.4	%)		(3.6	%)		(3.0	%)		(6.1	%)		(4.3	%)		(6.4	%)

Loss and LAE ratio		60.0	%		57.1	%		60.7	%		66.5	%		55.6	%		58.5	%		54.4	%

Page 6

American Financial Group, Inc.

Specialty - Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Six Months Ended
	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			6/30/23			6/30/22
Gross written premiums	$	2,369		$	2,155		$	1,845		$	3,153		$	2,123		$	4,524		$	4,059
Ceded reinsurance premiums		(702	)		(636	)		(507	)		(1,169	)		(607	)		(1,338	)		(1,175	)

Net written premiums		1,667			1,519			1,338			1,984			1,516			3,186			2,884
Change in unearned premiums		(160	)		(82	)		285			(217	)		(123	)		(242	)		(189	)

Net earned premiums		1,507			1,437			1,623			1,767			1,393			2,944			2,695
Loss and LAE		906			819			987			1,173			773			1,725			1,465
Underwriting expense		478			463			419			436			423			941			825

Underwriting profit	$	123		$	155		$	217		$	158		$	197		$	278		$	405

Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	2		$	—		$	(13	)	$	18		$	—		$	2		$	—
Catastrophe losses		51			31			24			33			22			82			31

Total current accident year catastrophe losses	$	53		$	31		$	11		$	51		$	22		$	84		$	31

Prior year loss reserve development (favorable) / adverse	$	(61	)	$	(64	)	$	(58	)	$	(56	)	$	(86	)	$	(125	)	$	(175	)

Combined ratio:
Loss and LAE ratio		60.2	%		57.0	%		60.8	%		66.4	%		55.4	%		58.6	%		54.3	%
Underwriting expense ratio		31.7	%		32.2	%		25.8	%		24.7	%		30.4	%		32.0	%		30.6	%

Combined ratio		91.9	%		89.2	%		86.6	%		91.1	%		85.8	%		90.6	%		84.9	%

Specialty combined ratio excl. catastrophe losses and prior year reserve development		92.4	%		91.5	%		89.3	%		91.7	%		90.5	%		92.1	%		90.2	%

Loss and LAE components:
Current accident year, excluding catastrophe losses		60.7	%		59.3	%		63.5	%		67.0	%		60.1	%		60.1	%		59.6	%
Current accident year catastrophe losses		3.5	%		2.2	%		0.9	%		2.5	%		1.5	%		2.7	%		1.2	%
Prior accident year loss reserve development		(4.0	%)		(4.5	%)		(3.6	%)		(3.1	%)		(6.2	%)		(4.2	%)		(6.5	%)

Loss and LAE ratio		60.2	%		57.0	%		60.8	%		66.4	%		55.4	%		58.6	%		54.3	%

Page 7

American Financial Group, Inc.

Property and Transportation - Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Six Months Ended
	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			6/30/23			6/30/22
Gross written premiums	$	1,059		$	872		$	601		$	1,737		$	962		$	1,931		$	1,722
Ceded reinsurance premiums		(391	)		(320	)		(178	)		(778	)		(330	)		(711	)		(589	)

Net written premiums		668			552			423			959			632			1,220			1,133
Change in unearned premiums		(134	)		(77	)		259			(102	)		(127	)		(211	)		(185	)

Net earned premiums		534			475			682			857			505			1,009			948
Loss and LAE		346			289			489			663			327			635			583
Underwriting expense		156			143			125			155			139			299			264

Underwriting profit	$	32		$	43		$	68		$	39		$	39		$	75		$	101

Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	(1	)	$	4		$	—		$	—		$	—
Catastrophe losses		15			19			8			9			19			34			25

Total current accident year catastrophe losses	$	15		$	19		$	7		$	13		$	19		$	34		$	25

Prior year loss reserve development (favorable) / adverse	$	(21	)	$	(37	)	$	(13	)	$	(15	)	$	(30	)	$	(58	)	$	(64	)

Combined ratio:
Loss and LAE ratio		64.8	%		60.9	%		71.8	%		77.3	%		64.7	%		62.9	%		61.4	%
Underwriting expense ratio		29.4	%		30.1	%		18.2	%		18.1	%		27.7	%		29.7	%		27.9	%

Combined ratio		94.2	%		91.0	%		90.0	%		95.4	%		92.4	%		92.6	%		89.3	%

Combined ratio excl. catastrophe losses and prior year reserve development		95.1	%		94.8	%		90.8	%		95.8	%		94.6	%		95.0	%		93.4	%

Loss and LAE components:
Current accident year, excluding catastrophe losses		65.7	%		64.7	%		72.6	%		77.7	%		66.9	%		65.3	%		65.5	%
Current accident year catastrophe losses		2.9	%		4.0	%		1.0	%		1.4	%		3.8	%		3.3	%		2.7	%
Prior accident year loss reserve development		(3.8	%)		(7.8	%)		(1.8	%)		(1.8	%)		(6.0	%)		(5.7	%)		(6.8	%)

Loss and LAE ratio		64.8	%		60.9	%		71.8	%		77.3	%		64.7	%		62.9	%		61.4	%

Page 8

American Financial Group, Inc.

Specialty Casualty - Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Six Months Ended
	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			6/30/23			6/30/22
Gross written premiums	$	1,012		$	1,061		$	1,007		$	1,184		$	948		$	2,073		$	1,924
Ceded reinsurance premiums		(319	)		(339	)		(352	)		(407	)		(302	)		(658	)		(628	)

Net written premiums		693			722			655			777			646			1,415			1,296
Change in unearned premiums		18			(18	)		31			(100	)		11			—			—

Net earned premiums		711			704			686			677			657			1,415			1,296
Loss and LAE		421			417			381			374			354			838			698
Underwriting expense		195			199			177			185			173			394			344

Underwriting profit	$	95		$	88		$	128		$	118		$	130		$	183		$	254

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

Total current accident year catastrophe losses	$	8		$	3		$	7		$	3		$	—		$	11		$	1

Prior year loss reserve development (favorable) / adverse	$	(24	)	$	(27	)	$	(50	)	$	(42	)	$	(49	)	$	(51	)	$	(98	)

Combined ratio:
Loss and LAE ratio		59.2	%		59.2	%		55.4	%		55.3	%		53.9	%		59.2	%		53.9	%
Underwriting expense ratio		27.4	%		28.3	%		25.9	%		27.3	%		26.2	%		27.9	%		26.5	%

Combined ratio		86.6	%		87.5	%		81.3	%		82.6	%		80.1	%		87.1	%		80.4	%

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

Loss and LAE components:
Current accident year, excluding catastrophe losses		61.6	%		62.6	%		61.6	%		61.2	%		61.3	%		62.1	%		61.4	%
Current accident year catastrophe losses		1.0	%		0.4	%		1.1	%		0.4	%		0.1	%		0.7	%		0.0	%
Prior accident year loss reserve development		(3.4	%)		(3.8	%)		(7.3	%)		(6.3	%)		(7.5	%)		(3.6	%)		(7.5	%)

Loss and LAE ratio		59.2	%		59.2	%		55.4	%		55.3	%		53.9	%		59.2	%		53.9	%

Page 9

American Financial Group, Inc.

Specialty Financial - Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Six Months Ended
	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			6/30/23			6/30/22
Gross written premiums	$	298		$	222		$	237		$	232		$	213		$	520		$	413
Ceded reinsurance premiums		(58	)		(38	)		(38	)		(56	)		(36	)		(96	)		(77	)

Net written premiums		240			184			199			176			177			424			336
Change in unearned premiums		(45	)		12			(6	)		(5	)		(6	)		(33	)		(2	)

Net earned premiums		195			196			193			171			171			391			334
Loss and LAE		79			71			66			80			44			150			92
Underwriting expense		106			99			94			76			90			205			176

Underwriting profit	$	10		$	26		$	33		$	15		$	37		$	36		$	66

Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	(10	)	$	13		$	—		$	—		$	—
Catastrophe losses		19			4			7			21			3			23			5

Total current accident year catastrophe losses	$	19		$	4		$	(3	)	$	34		$	3		$	23		$	5

Prior year loss reserve development (favorable) / adverse	$	(11	)	$	(3	)	$	(8	)	$	(11	)	$	(15	)	$	(14	)	$	(28	)

Combined ratio:
Loss and LAE ratio		40.9	%		36.0	%		33.8	%		47.2	%		25.7	%		38.5	%		27.5	%
Underwriting expense ratio		54.1	%		50.5	%		49.3	%		44.1	%		52.7	%		52.3	%		52.6	%

Combined ratio		95.0	%		86.5	%		83.1	%		91.3	%		78.4	%		90.8	%		80.1	%

Combined ratio excl. catastrophe losses and prior year reserve development		91.1	%		85.7	%		85.3	%		82.4	%		85.7	%		88.5	%		87.2	%

Loss and LAE components:
Current accident year, excluding catastrophe losses		37.0	%		35.2	%		36.0	%		38.3	%		33.0	%		36.2	%		34.6	%
Current accident year catastrophe losses		9.6	%		2.2	%		1.9	%		15.2	%		1.6	%		5.8	%		1.4	%
Prior accident year loss reserve development		(5.7	%)		(1.4	%)		(4.1	%)		(6.3	%)		(8.9	%)		(3.5	%)		(8.5	%)

Loss and LAE ratio		40.9	%		36.0	%		33.8	%		47.2	%		25.7	%		38.5	%		27.5	%

Page 10

American Financial Group, Inc.

Other Specialty - Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Six Months Ended
	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			6/30/23			6/30/22
Gross written premiums	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Ceded reinsurance premiums		66			61			61			72			61			127			119

Net written premiums		66			61			61			72			61			127			119
Change in unearned premiums		1			1			1			(10	)		(1	)		2			(2	)

Net earned premiums		67			62			62			62			60			129			117
Loss and LAE		60			42			51			56			48			102			92
Underwriting expense		21			22			23			20			21			43			41

Underwriting profit (loss)	$	(14	)	$	(2	)	$	(12	)	$	(14	)	$	(9	)	$	(16	)	$	(16	)

Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	(1	)	$	—		$	—		$	—		$	—
Catastrophe losses		11			5			1			1			—			16			—

Total current accident year catastrophe losses	$	11		$	5		$	—		$	1		$	—		$	16		$	—

Prior year loss reserve development (favorable) / adverse	$	(5	)	$	3		$	13		$	12		$	8		$	(2	)	$	15

Combined ratio:
Loss and LAE ratio		91.1	%		69.0	%		83.3	%		89.3	%		79.6	%		80.3	%		78.4	%
Underwriting expense ratio		31.1	%		34.5	%		34.8	%		33.4	%		35.0	%		32.8	%		35.4	%

Combined ratio		122.2	%		103.5	%		118.1	%		122.7	%		114.6	%		113.1	%		113.8	%

Combined ratio excl. catastrophe losses and prior year reserve development		111.7	%		92.0	%		98.5	%		100.7	%		101.5	%		102.1	%		100.7	%

Loss and LAE components:
Current accident year, excluding catastrophe losses		80.6	%		57.5	%		63.7	%		67.3	%		66.5	%		69.3	%		65.3	%
Current accident year catastrophe losses		18.0	%		7.5	%		0.7	%		1.1	%		0.1	%		12.9	%		0.2	%
Prior accident year loss reserve development		(7.5	%)		4.0	%		18.9	%		20.9	%		13.0	%		(1.9	%)		12.9	%

Loss and LAE ratio		91.1	%		69.0	%		83.3	%		89.3	%		79.6	%		80.3	%		78.4	%

Page 11

American Financial Group, Inc.

Consolidated Balance Sheet

($ in millions)


	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			3/31/22
Assets:
Total cash and investments	$	14,489		$	14,451		$	14,512		$	14,322		$	14,268		$	15,601
Recoverables from reinsurers		3,852			3,838			3,977			4,108			3,567			3,478
Prepaid reinsurance premiums		1,112			1,021			917			1,180			1,006			933
Agents’ balances and premiums receivable		1,796			1,459			1,339			1,698			1,623			1,391
Deferred policy acquisition costs		316			285			288			292			293			271
Assets of managed investment entities		5,235			5,391			5,447			5,099			5,218			5,231
Other receivables		721			637			886			1,328			740			645
Other assets		1,281			1,153			1,219			1,259			1,123			966
Goodwill		246			246			246			246			246			246

Total assets	$	29,048		$	28,481		$	28,831		$	29,532		$	28,084		$	28,762

Liabilities and Equity:
Unpaid losses and loss adjustment expenses	$	11,925		$	11,761		$	11,974		$	12,067		$	11,201		$	10,986
Unearned premiums		3,686			3,435			3,246			3,785			3,397			3,206
Payable to reinsurers		1,038			911			1,035			1,366			971			910
Liabilities of managed investment entities		5,098			5,258			5,332			5,002			5,133			5,112
Long-term debt		1,474			1,478			1,496			1,533			1,542			1,917
Other liabilities		1,834			1,697			1,696			1,847			1,773			1,796

Total liabilities	$	25,055		$	24,540		$	24,779		$	25,600		$	24,017		$	23,927
Shareholders’ equity:
Common stock	$	85		$	85		$	85		$	85		$	85		$	85
Capital surplus		1,377			1,374			1,368			1,358			1,351			1,340
Retained earnings		3,042			2,933			3,142			3,091			2,979			3,541
Unrealized gains (losses) - fixed maturities		(464	)		(413	)		(497	)		(554	)		(326	)		(109	)
Unrealized losses - fixed maturity-related cash flow hedges		(33	)		(21	)		(29	)		(29	)		(8	)		(4	)
Other comprehensive income (loss), net of tax		(14	)		(17	)		(17	)		(19	)		(14	)		(18	)

Total shareholders’ equity		3,993			3,941			4,052			3,932			4,067			4,835

Total liabilities and equity	$	29,048		$	28,481		$	28,831		$	29,532		$	28,084		$	28,762

Page 12

American Financial Group, Inc.

Book Value Per Share and Price / Book Summary

(in millions, except per share information)


	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			3/31/22
Shareholders’ equity	$	3,993		$	3,941		$	4,052		$	3,932		$	4,067		$	4,835
Unrealized (gains) losses related to fixed maturities		497			434			526			583			334			113

Adjusted shareholders’ equity		4,490			4,375			4,578			4,515			4,401			4,948
Goodwill		(246	)		(246	)		(246	)		(246	)		(246	)		(246	)
Intangibles		(102	)		(105	)		(108	)		(111	)		(101	)		(104	)

Tangible adjusted shareholders’ equity	$	4,142		$	4,024		$	4,224		$	4,158		$	4,054		$	4,598

Common shares outstanding		84.859			85.172			85.204			85.141			85.154			85.103
Book value per share:
Book value per share	$	47.06		$	46.27		$	47.56		$	46.18		$	47.76		$	56.81
Adjusted (a)		52.90			51.37			53.73			53.03			51.68			58.14
Tangible, adjusted (b)		48.80			47.25			49.58			48.84			47.60			54.02
Market capitalization
AFG’s closing common share price	$	118.75		$	121.50		$	137.28		$	122.93		$	138.81		$	145.62
Market capitalization	$	10,077		$	10,348		$	11,697		$	10,466		$	11,820		$	12,393
Price / Adjusted book value ratio		2.24			2.37			2.56			2.32			2.69			2.50

(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)


	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			3/31/22
AFG senior obligations	$	823		$	828		$	846		$	884		$	893		$	1,270
Borrowings drawn under credit facility		—			—			—			—			—			—

Debt excluding subordinated debt	$	823		$	828		$	846		$	884		$	893		$	1,270
AFG subordinated debentures		675			675			675			675			675			675

Total principal amount of long-term debt	$	1,498		$	1,503		$	1,521		$	1,559		$	1,568		$	1,945
Shareholders’ equity		3,993			3,941			4,052			3,932			4,067			4,835
Less:
Unrealized (gains) losses related to fixed maturity investments		497			434			526			583			334			113

Total adjusted capital	$	5,988		$	5,878		$	6,099		$	6,074		$	5,969		$	6,893

Ratio of debt to total adjusted capital:
Including subordinated debt		25.0	%		25.6	%		24.9	%		25.7	%		26.3	%		28.2	%
Excluding subordinated debt		13.7	%		14.1	%		13.9	%		14.6	%		15.0	%		18.4	%

Page 14

American Financial Group, Inc.

Additional Supplemental Information

($ in millions)


	Three Months Ended										Six Months Ended
	6/30/23		3/31/23		12/31/22		9/30/22		6/30/22		6/30/23		6/30/22
Property and Casualty Insurance
Paid Losses (GAAP)	$	802	$	881	$	914	$	776	$	678	$	1,683	$	1,392


	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			3/31/22
GAAP Equity (excluding AOCI)
Property and Casualty Insurance	$	5,581		$	5,392		$	5,433		$	5,527		$	5,399		$	5,375
Parent and other subsidiaries		(1,077	)		(1,000	)		(838	)		(993	)		(984	)		(409	)

AFG GAAP Equity (excluding AOCI)	$	4,504		$	4,392		$	4,595		$	4,534		$	4,415		$	4,966

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

Page 15

American Financial Group, Inc.

Total Cash and Investments

($ in millions)


	Carrying Value - June 30, 2023
	Property and Casualty Insurance		Parent & Other		Consolidate CLOs			Total AFG Consolidated		% of Investment Portfolio
Total cash and investments:
Cash and cash equivalents	$	785	$	203	$	—		$	988		7	%
Fixed maturities - Available for sale		9,584		301		—			9,885		68	%
Fixed maturities - Trading		38		—		—			38		0	%
Equity securities - Common stocks		617		—		—			617		4	%
Equity securities - Perpetual preferred		431		—		—			431		3	%
Investments accounted for using the equity method		1,755		1		—			1,756		12	%
Mortgage loans		645		—		—			645		5	%
Real estate and other investments		174		91		(136	)		129		1	%

Total cash and investments	$	14,029	$	596	$	(136	)	$	14,489		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															Six Months Ended
	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			6/30/23			6/30/22
Property and Casualty Insurance:
Gross investment income excluding alternative investments
Fixed maturities	$	117		$	112		$	107		$	93		$	82		$	229		$	158
Equity securities		8			9			13			8			7			17			14
Other investments (a)		16			13			14			12			9			29			14

Gross investment income excluding alternative investments		141			134			134			113			98			275			186
Gross investment income from alternative investments (b)		55			78			28			36			62			133			201

Total gross investment income		196			212			162			149			160			408			387
Investment expenses		(5	)		(5	)		(3	)		(4	)		(4	)		(10	)		(8	)

Total net investment income	$	191		$	207		$	159		$	145		$	156		$	398		$	379

Average cash and investments (c)	$	14,498		$	14,350		$	14,304		$	14,105		$	13,983		$	14,438		$	13,878

Average yield - fixed maturities before inv expenses (d)		4.62	%		4.40	%		4.15	%		3.73	%		3.33	%		4.51	%		3.29	%
Average yield - overall portfolio, net (d)		5.27	%		5.77	%		4.45	%		4.11	%		4.46	%		5.51	%		5.46	%
Average tax equivalent yield - overall portfolio, net (d)		5.34	%		5.83	%		4.53	%		4.21	%		4.56	%		5.58	%		5.56	%
AFG consolidated net investment income:
Property & Casualty core	$	191		$	207		$	159		$	145		$	156		$	398		$	379
Parent & other		12			11			9			10			—			23			5
Consolidate CLOs		(5	)		(1	)		—			(4	)		12			(6	)		14

Total net investment income	$	198		$	217		$	168		$	151		$	168		$	415		$	398

Average cash and investments (c)	$	15,025		$	15,058		$	15,083		$	14,852		$	15,210		$	15,064		$	15,331

Average yield - overall portfolio, net (d)		5.27	%		5.76	%		4.46	%		4.07	%		4.42	%		5.51	%		5.19	%
Average yield - fixed maturities before inv expenses (d)		4.67	%		4.43	%		4.19	%		3.74	%		3.17	%		4.55	%		3.14	%

(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															Six Months Ended
	6/30/23			3/31/23			12/31/22			9/30/22			6/30/22			6/30/23			6/30/22
Property and Casualty Insurance:
Net Investment Income
Convertible fixed maturities MTM through investment income	$	8		$	4		$	—		$	—		$	—		$	12		$	—
Equity securities MTM through investment income (a)		14			16			7			(5	)		(2	)		30			6
Investments accounted for using the equity method (b)		28			57			21			37			76			85			209
AFG managed CLOs (eliminated in consolidation)		5			1			—			4			(12	)		6			(14	)

Total Property & Casualty	$	55		$	78		$	28		$	36		$	62		$	133		$	201

Investments
Convertible fixed maturities MTM through investment income	$	28		$	19		$	—		$	—		$	—		$	28		$	—
Equity securities MTM through investment income (a)		423			377			332			289			276			423			276
Investments accounted for using the equity method (b)		1,755			1,732			1,699			1,661			1,626			1,755			1,626
AFG managed CLOs (eliminated in consolidation)		136			132			115			97			85			136			85

Total Property & Casualty	$	2,342		$	2,260		$	2,146		$	2,047		$	1,987		$	2,342		$	1,987

Annualized Return - Property & Casualty		9.6	%		14.2	%		5.3	%		7.1	%		12.4	%		11.8	%		20.7	%
AFG Consolidated:
Net Investment Income
Convertible fixed maturities MTM through investment income	$	8		$	4		$	—		$	—		$	—		$	12		$	—
Equity securities MTM through investment income (a)		14			16			7			(5	)		(2	)		30			6
Investments accounted for using the equity method (b)		28			57			21			37			76			85			209
AFG managed CLOs (eliminated in consolidation)		5			1			—			4			(12	)		6			(14	)

Total AFG Consolidated	$	55		$	78		$	28		$	36		$	62		$	133		$	201

Investments
Convertible fixed maturities MTM through investment income	$	28		$	19		$	—		$	—		$	—		$	28		$	—
Equity securities MTM through investment income (a)		423			377			332			289			276			423			276
Investments accounted for using the equity method (b)		1,756			1,733			1,700			1,661			1,626			1,756			1,626
AFG managed CLOs (eliminated in consolidation)		136			132			115			97			85			136			85

Total AFG Consolidated	$	2,343		$	2,261		$	2,147		$	2,047		$	1,987		$	2,343		$	1,987

Annualized Return - AFG Consolidated		9.6	%		14.2	%		5.3	%		7.1	%		12.4	%		11.8	%		20.7	%

(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)


June 30, 2023	Book Value (a)		Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Investment Portfolio
US Government and government agencies	$	241	$	229	$	(12	)		2	%		1	%
States, municipalities and political subdivisions		1,012		968		(44	)		10	%		7	%
Foreign government		276		262		(14	)		3	%		2	%
Residential mortgage-backed securities		1,708		1,546		(162	)		15	%		11	%
Commercial mortgage-backed securities		81		79		(2	)		1	%		0	%
Collateralized loan obligations		1,904		1,859		(45	)		19	%		13	%
Other asset-backed securities		2,331		2,169		(162	)		22	%		15	%
Corporate and other bonds		2,957		2,811		(146	)		28	%		19	%

Total AFG consolidated	$	10,510	$	9,923	$	(587	)		100	%		68	%

Approximate duration - P&C		3.1 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 6/30/2023

($ 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	$	229	$	373	$	244	$	1,294	$	68	$	1,638	$	838	$	22	$	4,706		47	%
AA		—		534		9		39		7		177		280		158		1,204		12	%
A		—		51		4		29		1		42		483		741		1,351		14	%
BBB		—		8		5		—		—		—		448		1,509		1,970		20	%

Subtotal - Investment grade		229		966		262		1,362		76		1,857		2,049		2,430		9,231		93	%
BB		—		—		—		7		3		—		8		214		232		2	%
B		—		—		—		8		—		—		2		61		71		1	%
CCC, CC, C		—		—		—		95		—		—		4		6		105		1	%
D		—		—		—		8		—		—		—		2		10		0	%

Subtotal - Non-Investment grade		—		—		—		118		3		—		14		283		418		4	%
Not Rated (b)		—		2		—		66		—		2		106		98		274		3	%

Total	$	229	$	968	$	262	$	1,546	$	79	$	1,859	$	2,169	$	2,811	$	9,923		100	%


	Fair Value by Type
NAIC designation	US Gov		Munis		Frgn gov		RMBS		CMBS		CLOs		ABS		Corp/Oth		Total		% Total
1	$	229	$	960	$	214	$	1,485	$	76	$	1,690	$	1,611	$	940	$	7,205		75	%
2		—		8		—		7		—		—		447		1,515		1,977		21	%

Subtotal		229		968		214		1,492		76		1,690		2,058		2,455		9,182		96	%
3		—		—		—		1		3		—		8		241		253		3	%
4		—		—		—		—		—		—		2		74		76		1	%
5		—		—		—		3		—		—		9		21		33		0	%
6		—		—		—		—		—		—		—		2		2		0	%

Subtotal		—		—		—		4		3		—		19		338		364		4	%
Total insurance companies	$	229	$	968	$	214	$	1,496	$	79	$	1,690	$	2,077	$	2,793	$	9,546		100	%

Total non-insurance (c)		—		—		48		50		—		169		92		18		377

Total	$	229	$	968	$	262	$	1,546	$	79	$	1,859	$	2,169	$	2,811	$	9,923

(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, 89% are NAIC 1 and 5% are NAIC 5.

For Corp/Oth, 23% are NAIC 1, 7% NAIC 2, 25% NAIC 3, 17% NAIC 4, 14% NAIC 5 and 14% are held by non-insurance companies.

For Total, 64% are NAIC 1, 4% NAIC 2, 9% NAIC 3, 6% NAIC 4, 7% NAIC 5 and 10% are held by non-insurance companies.

(c)	83% 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		3	%
Total insurance companies	$	219	$	1,186	$	213	$	1,522	$	85	$	1,627	$	2,119	$	2,495	$	9,466		100	%

Total non-insurance (c)		—		—		39		76		—		294		126		126		661

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, 53% 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 31% are held by non-insurance companies.

(c)	76% are investment grade rated.

Page 21

Appendix C

American Financial Group, Inc.

Corporate Securities by Credit Rating & NAIC Designation by Industry 6/30/2023

($ in millions)


	Fair Value By Industry
Credit Rating (a)	Asset Managers		Banking		Technology		Consumer		Insurance		Other Financials		Basic Industry		REITs		Retailers		Media		Utilities		Capital Goods		Autos		Other		Total		% Total
Investment Grade
AAA	$	—	$	—	$	10	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	12	$	22		1	%
AA		5		—		23		41		33		29		—		—		10		—		5		—		—		12		158		6	%
A		34		154		53		54		150		28		11		49		17		3		51		45		41		51		741		26	%
BBB		509		185		140		67		34		86		118		86		33		44		42		34		25		106		1,509		54	%

Subtotal		548		339		226		162		217		143		129		135		60		47		98		79		66		181		2,430		87	%
BB		22		1		29		24		1		12		17		—		50		34		—		2		5		17		214		8	%
B		—		—		2		37		—		—		—		—		—		—		—		4		4		14		61		2	%
CCC, CC, C		—		—		—		1		—		—		—		—		—		—		1		—		—		4		6		0	%
D		—		—		2		—		—		—		—		—		—		—		—		—		—		—		2		0	%

Subtotal		22		1		33		62		1		12		17		—		50		34		1		6		9		35		283		10	%
Not Rated (b)		—		—		4		20		14		14		1		—		—		20		—		15		—		10		98		3	%

Total	$	570	$	340	$	263	$	244	$	232	$	169	$	147	$	135	$	110	$	101	$	99	$	100	$	75	$	226	$	2,811		100	%


	Fair Value By Industry
NAIC designation	Asset Managers		Banking		Technology		Consumer		Insurance		Other Financials		Basic Industry		REITs		Retailers		Media		Utilities		Capital Goods		Autos		Other		Total		% Total
1	$	39	$	154	$	86	$	107	$	183	$	69	$	11	$	49	$	27	$	3	$	56	$	45	$	41	$	70	$	940		34	%
2		509		185		139		69		34		86		118		86		33		44		42		34		25		111		1,515		54	%

Subtotal		548		339		225		176		217		155		129		135		60		47		98		79		66		181		2,455		88	%
3		22		1		28		28		2		14		18		—		50		54		—		2		5		17		241		8	%
4		—		—		2		34		—		—		—		—		—		—		—		19		4		15		74		3	%
5		—		—		5		6		—		—		—		—		—		—		1		—		—		9		21		1	%
6		—		—		2		—		—		—		—		—		—		—		—		—		—		—		2		0	%

Subtotal		22		1		37		68		2		14		18		—		50		54		1		21		9		41		338		12	%
Total insurance companies	$	570	$	340	$	262	$	244	$	219	$	169	$	147	$	135	$	110	$	101	$	99	$	100	$	75	$	222	$	2,793		100	%

Total non-insurance		—		—		1		—		13		—		—		—		—		—		—		—		—		4		18

Total	$	570	$	340	$	263	$	244	$	232	$	169	$	147	$	135	$	110	$	101	$	99	$	100	$	75	$	226	$	2,811

(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 the Total, 23% are NAIC 1, 7% NAIC 2, 25% NAIC 3, 17% NAIC 4, 14% NAIC 5 and 14% are held by non-insurance companies.

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	%

Total non-insurance		—		1		106		—		14		—		—		—		—		—		—		—		—		5		126

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, 88% are held by non-insurance companies and 11% are NAIC 1.

For the Total, 53% are held by non-insurance companies, 11% are NAIC 1, 12% NAIC 2 and 16% NAIC 3.

Page 23

Appendix E

American Financial Group, Inc.

Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type 6/30/2023

($ in millions)


	Fair Value By Collateral Type

Credit Rating (a)	Commercial Real Estate		Whole Business		TruPS		Railcar		Single Family Rental		Triple Net Lease		Secured Financing (c)		Aircraft		Mortgage Servicer Receivables		Consumer Loans		Other		Total		% Total
Investment Grade
AAA	$	418	$	—	$	47	$	—	$	153	$	133	$	25	$	—	$	5	$	11	$	46	$	838		39	%
AA		6		60		143		—		10		20		5		6		—		11		19		280		13	%
A		—		4		16		157		—		8		31		42		—		22		203		483		22	%
BBB		—		328		—		6		—		—		1		28		59		—		26		448		21	%

Subtotal		424		392		206		163		163		161		62		76		64		44		294		2,049		95	%
BB		—		—		—		—		—		—		1		7		—		—		—		8		0	%
B		—		—		—		—		—		—		—		2		—		—		—		2		0	%
CCC, CC, C		—		—		—		—		—		—		—		4		—		—		—		4		0	%
D		—		—		—		—		—		—		—		—		—		—		—		—		0	%

Subtotal		—		—		—		—		—		—		1		13		—		—		—		14		0	%
Not Rated (b)		—		—		—		—		—		—		95		4		—		—		7		106		5	%

Total	$	424	$	392	$	206	$	163	$	163	$	161	$	158	$	93	$	64	$	44	$	301	$	2,169		100	%


	Fair Value By Collateral Type

NAIC designation	Commercial Real Estate ABS		Whole Business		TruPS		Railcar		Single Family Rental		Triple Net Lease		Secured Financing (b)		Aircraft		Mortgage Servicer Receivables		Consumer Loans		Other		Total		% Total
1	$	352	$	64	$	206	$	157	$	162	$	161	$	156	$	48	$	5	$	31	$	269	$	1,611		78	%
2		—		328		—		6		—		—		1		28		59		—		25		447		22	%

Subtotal		352		392		206		163		162		161		157		76		64		31		294		2,058		100	%
3		—		—		—		—		—		—		1		7		—		—		—		8		0	%
4		—		—		—		—		—		—		—		2		—		—		—		2		0	%
5		—		—		—		—		—		—		—		8		—		—		1		9		0	%
6		—		—		—		—		—		—		—		—		—		—		—		—		0	%

Subtotal		—		—		—		—		—		—		1		17		—		—		1		19		0	%
Total insurance companies	$	352	$	392	$	206	$	163	$	162	$	161	$	158	$	93	$	64	$	31	$	295	$	2,077		100	%

Total non-insurance		72		—		—		—		1		—		—		—		—		13		6		92

Total	$	424	$	392	$	206	$	163	$	163	$	161	$	158	$	93	$	64	$	44	$	301	$	2,169

(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)	89% of not rated securities are NAIC 1, 5% are NAIC 5.

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

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	%

Total non-insurance		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 Commerical and Residental mortgages.

Page 25

Appendix G

American Financial Group, Inc.

Real Estate-Related Investments

6/30/2023

($ 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	$	1,208		92	%		95	%		98	%
Fund Investments		56		4	%		—			—
QOZ Fund - Development		18		2	%		—			—
Office		15		1	%		90	%		100	%
Hospitality		10		1	%		—			—
Land Development		5		0	%		—			—
Student Housing		1		0	%		—			—

Total	$	1,313		100	%

Real Estate


Property Type	Book Value		% of Book Value			Debt
Resort & Marina	$	53		53	%	$	—
Marina		35		36	%		—
Office Building		9		9	%		—
Land		2		2	%		—

Total	$	99		100	%	$	—

Mortgage Loans


Property Type	Book Value		% of Book Value			Loan To Value
Multifamily	$	461		71	%		68	%
Hospitality		126		20	%		51	%
Office		58		9	%		89	%

Total	$	645		100	%		67	%

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 6/30/23

(c)	Collections for April - June

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)


Investment Type	Book Value		% of 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


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

Total	$	97		100	%	$	—

Mortgage Loans


Property Type	Book Value		% of Book Value			Loan To Value
Multifamily	$	491		73	%		67	%
Hospitality		127		19	%		52	%
Office		58		8	%		1

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