Review of Second Quarter 2022

August 4, 2022

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

2022 Second Quarter Consolidated Results

Dollars in millions, except per share data

Three Months Ended

June 30,

2022

2021

P&C Insurance Segment

$

345

$

288

Real estate entities and other acquired from

Annuity operations

-

22

Interest & other corporate expenses

(37)

(58)

Pretax Core Operating Earnings

308

252

Related income taxes

65

47

Core Net Operating Earnings

$

243

$

205

Average number of diluted shares

85.3

85.6

Core Net Operating Earnings per Share

$

2.85

$

2.39

Annualized Core Operating Return on Equity

20.7%

14.7%

3

2022 Second Quarter Consolidated Results (continued)

Dollars in millions, except per share data

Three Months Ended

June 30, 2022

(Per Share)

Core Net Operating Earnings

$ 243

$ 2.85

Non-core Items

After-tax net realized losses on securities1

(73)

(0.86)

Loss on retirement of debt

(7)

(0.08)

Other

4

0.05

Net Earnings

$ 167

$ 1.96

1 Included in this amount is $65 million ($0.76 per share) in after-tax net losses to adjust equity securities that the Company continued to own at June 30, 2022, to fair value.

4

Investments

  • Total carrying value of AFG's investment portfolio at June 30, 2022 = $14.3 billion
  • Second quarter after-tax net realized losses on securities of $73 million
    • includes $65 million in after-tax net realized losses to adjust equity securities that the company continued to own at June 30, 2022 to fair value through earnings
  • Pretax unrealized losses on fixed maturities were $413 million at June 30, 2022
  • Second quarter 2022 annualized return of 12.4% on AFG's $2.0 billion of alternative investments

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

American Financial Group Inc. published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 15:37:10 UTC.