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Jun 30, 2021
AFG Q2 2021 Earnings Report
American Financial Group reported strong Q2 2021 results, driven by its Specialty P&C businesses and alternative investments.
Key Takeaways
American Financial Group, Inc. reported a net income of $1.0 billion ($11.70 per share) for the second quarter of 2021, compared to $177 million ($1.97 per share) in the second quarter of 2020. Core net operating earnings were $205 million ($2.39 per share) for the 2021 second quarter, compared to $60 million ($0.67 per share) in the 2020 second quarter. The company increased its full-year core net operating earnings guidance to $8.40-$9.20 per share.
Net earnings per share were $11.70, including $9.31 per share in after-tax non-core items.
Net earnings from continuing operations were $240 million ($2.81 per share).
Core net operating earnings were $2.39 per share, a 257% increase from the prior year period.
The company increased its full-year core net operating earnings guidance to $8.40-$9.20 per share.
Forward Guidance
AFG expects core net operating earnings in 2021 to be in the range of $8.40 to $9.20 per share. This guidance excludes earnings from discontinued annuity operations and assumes zero earnings on parent company cash. The guidance reflects a normal crop year and an annualized return of approximately 8% on alternative investments.
Positive Outlook
- Strong performance of Specialty P&C businesses.
- Strong returns produced by alternative investments.
- Disciplined operating philosophy.
- Lower catastrophe volatility than peers.
- Favorable P&C operating environment.
Challenges Ahead
- Guidance excludes earnings from discontinued annuity operations.
- Guidance assumes zero earnings on parent company cash.
- Guidance reflects a normal crop year.
- Guidance reflects an annualized return of approximately 8% on alternative investments.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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