Loading...
•
Dec 31, 2023
AFG Q4 2023 Earnings Report
AFG reported net earnings of $263 million, or $3.13 per share, and core net operating earnings of $238 million, or $2.84 per share, for the fourth quarter of 2023.
Key Takeaways
American Financial Group, Inc. (AFG) reported a strong performance in Q4 2023, with net earnings of $263 million ($3.13 per share) and core net operating earnings of $238 million ($2.84 per share). The Specialty P&C operations achieved a combined ratio of 87.7%. A special cash dividend of $2.50 per share was declared.
Net earnings per share were $3.13 in the fourth quarter.
Core net operating earnings per share were $2.84 in the fourth quarter.
Specialty Property & Casualty fourth quarter calendar year combined ratio was 87.7%.
A special cash dividend of $2.50 per share was declared, payable February 28, 2024.
AFG
AFG
AFG Revenue by Segment
Revenue by Segment
Net Investment Income Revenue
CapyFin.com Forward Guidance
Beginning in 2024, AFG will cease providing guidance. Performance in line with the assumptions underlying our 2024 business plan would result in core operating earnings per share of approximately $11.00 and generate a core operating return on equity excluding AOCI of approximately 20%.
Positive Outlook
- 8% growth in net written premiums compared to 2023
- A similar combined ratio to the strong result in 2023
- A reinvestment rate of approximately 5.5%
- A return of approximately 6% on our $2.4 billion portfolio of alternative investments.
- Focus on long-term shareholder value creation by generating strong returns on equity that grow book value per share
Challenges Ahead
- Ceasing to provide guidance beginning in 2024
- Changes in financial, political and economic conditions
- Performance of securities markets
- New legislation or declines in credit quality or credit ratings
- Levels of natural catastrophes and severe weather