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Dec 31, 2021
AFG Q4 2021 Earnings Report
AFG's financial performance during the fourth quarter was exceptional, with record core operating results and an annualized return on equity of 28.1%.
Key Takeaways
American Financial Group reported strong Q4 2021 results, with net earnings of $4.18 per share and core net operating earnings of $4.12 per share. The company's Specialty P&C businesses achieved record underwriting profit and the alternative investment portfolio continued to perform strongly. AFG had approximately $2.1 billion of excess capital at the end of the year.
Net earnings per share were $4.18 in the fourth quarter.
Core net operating earnings per share were $4.12 in the fourth quarter.
Full year 2021 ROE was 37.5%, and core operating ROE was 18.6%.
Parent company cash and investments totaled approximately $1.86 billion, with excess capital of $2.1 billion at December 31, 2021.
AFG
AFG
Forward Guidance
AFG expects core net operating earnings in 2022 to be in the range of $9.75 to $10.75 per share. The guidance excludes non-core items and reflects an annual return of approximately 10% on alternative investments and an average crop year.
Positive Outlook
- Market expected to remain firm throughout 2022.
- Ability to act on business opportunities.
- Achieve solid renewal rate increases.
- Expects an overall calendar year combined ratio in the range of 85% to 87%.
- Net written premiums to be up 8% to 12% when compared to the $5.6 billion reported in 2021.