OPERATING DISCIPLINE

OPPORTUNISTIC MINDSET COMPELLING BUSINESS MIX

LONG-TERM SHAREHOLDER VALUE

STRONG FOUNDATION BUILT

ON CULTURE AND VALUES

FOURTH QUARTER AND FULL YEAR 2020 HIGHLIGHTS

  • • Net earnings of $8.20 per share for the full year; fourth quarter net earnings of $7.93 per share

  • • Fourth quarter earnings include $5.36 per share in realized gains on sales of securities and ($0.52) per share in other after-tax non-core items

  • • Core net operating earnings per share of $8.44 for the full year; fourth quarter core net operating earnings per share of $3.09

  • • Full year 2020 ROE of 14.0%; 2020 core operating ROE of 14.4%

Our investment philosophy is to focus on high-quality investments that maximize returns on a long-term basis, rather than focusing on short-term performance.

INVESTMENT PORTFOLIO As of December 31, 2020

$52.5 Billion

(Carrying Value)

Fixed Maturities Overview

Corporates 50%

Asset-backed 17%

States & Municipalities 13%

Collateralized Loan Obligations 11%Fixed Maturities 82%

Residential MBS 7%

Cash & Cash Equivalents 5% Investments Accounted for

Commercial MBS 2%

by Equity Method 4%

Equities 3%

Policy and Mortgage Loans 3%

Real Estate and Other 3%

Approximately 88% of our fixed maturity investments are rated investment grade, and 97% have an NAIC designation of 1 or 2, the highest two levels.

More information about our investment portfolio may be found in AFG's Investor Supplement posted onwww.AFGinc.comunder Investor Relations / Financial Information & SEC Filings.

American Financial Group, Inc.

Investor Relations

301 E. Fourth St., Cincinnati, OH 45202 513-579-6739 /www.AFGinc.com

The service marks used within this report are the property of American Financial Group, Inc. or subsidiaries, including but not limited to, the American Financial Group eagle logo and the word marks "Great American®", "Great American Insurance Group®" and the names of various products and services described within and offered by one of the members of the American Financial Group. For a complete list of all service marks owned by Great American, please visit the websitewww.AFGinc.com.

© 2020 American Financial Group, Inc. All rights reserved. 0199-3-20-AFG (02/2021)

AFG's overriding goal is to increase long-term shareholder value.

EARNINGS PER SHARE (For the year ended December 31)

$10.00

8.00

6.00

4.00

2.00

0

'16

'17

'18

'19

'20

Core Net Operating Earnings Per Share (Non-GAAP)

Diluted Net Earnings Per Share (GAAP)

AFG's Earnings per Share data for the years ended 2016-2020 is shown here. AFG believes that core net operating earnings is a useful measure for analysts and investors in considering ongoing operating trends for AFG.

ADJUSTED BOOK VALUE PER SHARE

As of December 31 (excluding appropriated retained earnings and net unrealized gains related to fixed maturity securities)

$70

$63.61 60

50

40

'15

'16

'17

'18

'19

'20

OUR BUSINESS MODEL

AFG's business model is founded on an entrepreneurial approach that allows local decision-making for underwriting, marketing, claims and policy servicing in each of its niche operations.

STRENGTH, STABILITY AND POSSIBILITIES

We are proud of our market-leading specialty property and casualty insurance and annuity businesses. In 2020, approximately 50% of the P&C Group's gross written premium was produced by top 10-ranked businesses. Our annuity business has been consistently ranked in the top 10 overall and within the top three for sales of fixed-indexed annuities through financial institutions.

$4.1 Billion

ANNUITY OPERATIONS

2020 Gross Annuity Premiums

Financial Institutions 55%

Retail 17%

Other 16%

Broker-Dealer 12%

$7.0 Billion

SPECIALTY PROPERTY AND CASUALTY INSURANCE OPERATIONS 2020 Gross Written Premiums

Specialty Casualty 49%

Property & Transportation 40%

Specialty Financial 11%

FOURTH QUARTER AND FULL YEAR 2020 & 2019 HIGHLIGHTS

Three months ended Dec 31,Twelve months ended Dec 31,Earnings

Core Net Operating Earnings

Core Net Operating Earnings Per Share Net Earnings Attributable to Shareholders Net Earnings Per Share (Diluted)

$ $ $ $

2020

2019

2020

2019

269

$

203

$

752

$

784

3.09

$

2.22

$

8.44

$

8.62

692

$

211

$

732

$

897

7.93

$

2.31

$

8.20

$

9.85

Three months ended Dec 31,Twelve months ended Dec 31,Insurance Premiums

2020

2019

2020

2019

Gross Written Premiums: Specialty P&C Net Written Premiums: Specialty P&C Gross Statutory Premiums: Annuity

  • $ 1,707

    • $ 1,749

      • $ 6,995

        • $ 7,299

  • $ 1,216

    • $ 1,313

      • $ 4,992

        • $ 5,342

  • $ 1,319

  • $ 1,139

  • $ 4,087

  • $ 4,960

Book Value Per Share Book Value Per Share

Book Value Per Share (excluding unrealized gains (losses) related to fixed maturities)

Dec 31, 2020

Dec 31, 2019

$ 78.62

$ 69.43

$ 63.61

$ 59.70

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American Financial Group Inc. published this content on 16 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 March 2021 17:21:08 UTC.