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Jun 30, 2024
AFG Q2 2024 Earnings Report
American Financial Group reported strong Q2 2024 results with increased core net operating earnings and a solid combined ratio in its Specialty P&C operations.
Key Takeaways
American Financial Group, Inc. (AFG) reported a strong second quarter in 2024, with net earnings of $209 million, or $2.49 per share. Core net operating earnings were $215 million, or $2.56 per share, reflecting higher P&C underwriting profit. The Specialty P&C operations achieved a combined ratio of 90.5%.
Net earnings per share were $2.49, including a $0.07 per share loss from non-core items.
Core net operating earnings per share were $2.56, an 8% increase compared to the same period last year.
Annualized ROE was 18.0%, and core operating ROE was 18.5%.
The Specialty P&C calendar year combined ratio improved by 1.4 points year-over-year to 90.5%.
AFG
AFG
AFG Revenue by Segment
Revenue by Segment
P&C Insurance Net Earned Premiums Revenue
CapyFin.comNet Investment Income Revenue
CapyFin.comRealized Gains on Securities Revenue
CapyFin.comManaged Investment Entities: Investment Income Revenue
CapyFin.comManaged Investment Entities: Gains on FV Changes of Assets/Liabilities Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
AFG expects growth in net written premiums to be approximately 7% for the full year in 2024.
Positive Outlook
- Underwriting profitability was very strong in our Specialty P&C businesses in the second quarter of 2024.
- We continue to feel confident about the strength of our reserves.
- A continued favorable pricing environment enabled us to selectively grow our Specialty P&C businesses.
- New business opportunities enabled us to selectively grow our Specialty P&C businesses.
- AFG continued to have significant excess capital at June 30, 2024.
Challenges Ahead
- Timing of acreage reporting by farmers tempered growth in the second quarter.
- Underwriting actions in a few of our businesses tempered growth in the second quarter.
- Non-renewal of several large accounts partially offset growth.
- Adverse development in our excess liability business.
- A decision to pause writing of new intellectual property-related coverage in our Innovative Markets business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income