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Sep 30, 2024
AFG Q3 2024 Earnings Report
American Financial Group reported third quarter results, which included net earnings of $181 million and core net operating earnings of $194 million.
Key Takeaways
American Financial Group, Inc. reported net earnings of $181 million ($2.16 per share) for the third quarter of 2024, compared to $177 million ($2.09 per share) in the third quarter of 2023. Core net operating earnings were $194 million ($2.31 per share) for the third quarter of 2024, compared to $208 million ($2.45 per share) in the third quarter of 2023. The company's Board of Directors declared a special cash dividend of $4.00 per share.
Net earnings per share of $2.16; includes ($0.15) per share in after-tax non-core items
Core net operating earnings $2.31 per share
Third quarter annualized ROE of 15.2%; core operating ROE of 16.2%
Board of Directors declares $4.00 per share special dividend, payable November 26, 2024
AFG
AFG
AFG Revenue by Segment
Revenue by Segment
Net 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's third quarter results reflect solid underwriting profitability despite elevated catastrophe losses. P&C net investment income increased by nearly 15% year over year. The company has significant excess capital at September 30, 2024 and will deploy it into core businesses.
Positive Outlook
- AFG achieved an annualized core operating return of 16%
- Solid underwriting profitability despite elevated catastrophe losses during the quarter
- P&C net investment income increased by nearly 15% year over year
- Effective capital management enables AFG to continue to create value for shareholders
- Optimistic about an above average crop year.
Challenges Ahead
- Catastrophe losses, specifically Hurricane Helene, impacted third quarter operating earnings in P&C Segment
- Pretax losses from Hurricane Milton are estimated to be approximately $30 million and will be reflected in fourth quarter results.
- Special non-core A&E charge to increase its liabilities for environmental exposures by $14 million ($11 million after-tax)
- The Specialty Financial Group reported an underwriting profit of $22 million in the third quarter of 2024, compared to $29 million in the third quarter of 2023.
- Higher year-over-year underwriting profit in our agricultural businesses was more than offset by higher catastrophe losses
Revenue & Expenses
Visualization of income flow from segment revenue to net income