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Mar 31, 2024

AFG Q1 2024 Earnings Report

American Financial Group reported strong first quarter results, marked by growth in net written premiums and a solid combined ratio in the Specialty P&C insurance operations.

Key Takeaways

American Financial Group (AFG) reported a net income of $242 million, or $2.89 per share, for the first quarter of 2024, compared to $212 million, or $2.49 per share, for the same period in 2023. Core net operating earnings were $231 million ($2.76 per share) for the first quarter of 2024 compared to $247 million ($2.89 per share) in the 2023 first quarter. The Specialty P&C insurance operations generated a 90.1% combined ratio. AFG's book value per share was $50.57 at March 31, 2024.

Net earnings per share were $2.89, including $0.13 per share from after-tax non-core items.

Core net operating earnings per share were $2.76 for the first quarter.

The annualized return on equity was 21.2%, with a core operating ROE of 20.2%.

Specialty calendar year combined ratio was 90.1%, with 8% growth in net written premiums.

Total Revenue
$1.91B
Previous year: $1.44B
+32.6%
EPS
$2.76
Previous year: $2.89
-4.5%
Book Value per Share
$50.6
Gross Profit
$1.91B
Previous year: $1.74B
+9.5%
Cash and Equivalents
$1.09B
Previous year: $672M
+61.8%
Total Assets
$30B
Previous year: $28.5B
+5.3%

AFG

AFG

AFG Revenue by Segment

Forward Guidance

This press release contains forward-looking statements based on estimates, assumptions, and projections. Actual results could differ materially from those contained in or implied by such statements due to various risks and uncertainties.

Positive Outlook

  • Expectations concerning market conditions and their effect on future premiums.
  • Anticipated revenues and earnings.
  • Planned investment activities.
  • Potential share repurchases or special dividends.
  • Expected improvements in loss experience.

Challenges Ahead

  • Changes in financial, political, and economic conditions.
  • Performance of securities markets.
  • New legislation or declines in credit quality.
  • Changes in insurance law or regulation.
  • Levels of natural catastrophes and severe weather.

Revenue & Expenses

Visualization of income flow from segment revenue to net income