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Dec 31, 2019

AFG Q4 2019 Earnings Report

AFG reported strong core operating earnings, driven by its diversified specialty insurance businesses and in-house investment management team.

Key Takeaways

American Financial Group reported Q4 2019 net earnings attributable to shareholders of $211 million ($2.31 per share), compared to a net loss of $29 million ($0.33 per share) for Q4 2018. Core net operating earnings were $203 million ($2.22 per share) for Q4 2019, compared to $159 million ($1.75 per share) in Q4 2018. The company's full year 2020 core net operating earnings guidance is between $8.75 and $9.25 per share.

Q4 net earnings were $2.31 per share, including impacts from Neon exit charges and other non-core items.

Q4 core net operating earnings were $2.22 per share.

Full year 2019 ROE was 17.1%, and core operating ROE was 14.9%.

Full year 2020 core net operating earnings guidance is between $8.75 - $9.25 per share.

Total Revenue
$1.37B
Previous year: $1.27B
+7.9%
EPS
$2.22
Previous year: $1.75
+26.9%
Book Value per Share
$69.4
Core Operating ROE
15%
Gross Profit
$2.13B
Previous year: $1.69B
+26.0%
Cash and Equivalents
$55.3B
Previous year: $1.52B
+3547.0%
Total Assets
$70B
Previous year: $63.5B
+10.3%

AFG

AFG

AFG Revenue by Segment

Forward Guidance

AFG expects core net operating earnings in 2020 to be between $8.75 and $9.25 per share.

Positive Outlook

  • Expects core net operating earnings in 2020 to be between $8.75 and $9.25 per share.
  • AFG’s core net operating earnings excludes non-core items such as realized gains and losses.
  • Excludes annuity non-core earnings and losses.
  • Excludes other significant items that are not able to be estimated with reasonable precision.
  • Excludes items that may not be indicative of ongoing operations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income