American Financial : 2nd Quarter 2021 Earnings Presentation (printer friendly version)

Review of Second Quarter 2021 August 4, 2021

Forward Looking Statements

Certain statements made during this call, as well as included in this document, are not historical facts and may be considered "forward-looking statements" and are based on estimates, assumptions and projections which management believes are reasonable, but by their nature subject to risks and uncertainties. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements.

The reasons which could cause actual results and/or financial condition to differ materially from those suggested by such forward-looking statements include, but are not limited to, those discussed or identified from time-to-time in AFG's filings with the Securities and Exchange Commission, including the annual report on Form 10-K and the quarterly reports on Form 10-Q. We do not promise to update such forward-looking statements to reflect actual results or changes in assumptions or other factors that could affect these statements.

Core net operating earnings is a non-GAAP financial measure which sets aside items that are generally not considered to be part of ongoing operations, such as discontinued operations, net realized gains and losses, and certain nonrecurring items. AFG believes that this non-GAAP measure is a useful tool for investors and analysts in analyzing ongoing operating trends of AFG.

2

Consolidated Results

Dollars in millions, except per share data

P&C Insurance Segment

Real estate entities and other acquired from Annuity operations

Interest & other corporate expenses

Pretax Core Operating Earnings

Related income taxes

Core Net Operating Earnings

Average number of diluted shares2

Core Net Operating Earnings per Share

Annualized Core Operating Return on Equity

Three Months Ended

June 30,

2021 20201

$	288			$	116
	22				1
	(58)				(43)
	252				74
	47				14
$	205			$	60
	85.6				90.0
$	2.39			$	0.67

14.7% 4.8%

• On May 28, 2021, AFG completed the sale of its Annuity business to MassMutual. The results of AFG's Annuity operations are reported as discontinued operations beginning with the first quarter of 2021 and through the date of sale, in accordance with GAAP, which included adjusting prior period results to reflect these operations as discontinued.

• Because AFG had a net loss for the six months ended June 30, 2020, the impact of potential dilutive options (weighted

average of 0.59 million shares) was excluded from AFG's fully diluted earnings per share calculation. However, for the non-
GAAP measure of core net operating earnings, the Company believes it is most appropriate to use the fully diluted share data	3
that would have been used if AFG had net earnings for the six months ended June 30, 2020.

Consolidated Results (continued)

Dollars in millions, except per share data

				Three Months Ended
				June 30, 2021
						(Per Share)
Core Net Operating Earnings	$	205	$	2.39
Non-core Items
After-tax net realized gains on securities1				34				0.40
Other				1				0.02
Net Earnings from continuing operations		$	240	$	2.81
Discontinued annuity operations				762				8.89
Net Earnings Attributable to Shareholders	$	1,002	$	11.70

1 Included in this amount is $29 million ($0.34 per share) in after-tax net gains to adjust equity securities that

the Company continued to own at June 30, 2021, to fair value.

4

2021 Expectations

AFG's 2021 core net operating earnings guidance $8.40 to $9.20 per share,

an increase from previous guidance of $7.00 to $8.00 per share

• Excludes earnings from our discontinued annuity operations that were sold to MassMutual, which were classified as discontinued operations effective January 1, 2021.
• Assumes zero earnings on $2.2 billion in parent company cash. Accordingly, AFG's ultimate results for 2021 will be impacted by the deployment of this capital.
• The above guidance reflects a normal crop year and an annualized return of approximately 8% on alternative investments over the remaining two quarters of 2021.

5