NYSE$AFG

American Financial Group Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

American Financial Group reported strong Q2 2024 results with increased core net operating earnings and a solid combined ratio in its Specialty P&C operations.

American Financial Group, Inc. (AFG) reported a strong second quarter in 2024, with net earnings of $209 million, or $2.49 per share. Core net operating earnings were $215 million, or $2.56 per share, reflecting higher P&C underwriting profit. The Specialty P&C operations achieved a combined ratio of 90.5%.

  • Net earnings per share were $2.49, including a $0.07 per share loss from non-core items.
  • Core net operating earnings per share were $2.56, an 8% increase compared to the same period last year.
  • Annualized ROE was 18.0%, and core operating ROE was 18.5%.
  • The Specialty P&C calendar year combined ratio improved by 1.4 points year-over-year to 90.5%.

Headline financials

Total Revenue

$1.9B

Previous: $1.84B+3.3%
EPS

$2.49

Previous: $2.38+4.6%
Book Value / Share

$53.18

No prior period
P&C Combined Ratio

90.5%

No prior period
Gross Written Premiums

$2.41B

No prior period
Net Written Premiums

$1.69B

No prior period
Alt Investment Return

5.1%

No prior period
Free Cash Flow

$209M

Previous: $200M+4.5%
Net Income

$209M

Previous: $200M+4.5%
Operating Income

$271M

Previous: $255M+6.3%
Gross Profit

$1.9B

Previous: $1.84B+3.3%
Cash & Equivalents

$1.12B

Previous: $988M+13.5%
Total Assets

$29.9B

Previous: $29B+3.0%

Revenue & EPS history

AFG · Revenue · Quarterly

$1.9B

Q2 2024+3.3%vs Q2 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

AFG · $1.86B total across 1 segment · Q3 2023

  • Net Earned Premiums
    $1.86B

Forward guidance

AFG expects growth in net written premiums to be approximately 7% for the full year in 2024.

Tailwinds

  • Underwriting profitability was very strong in our Specialty P&C businesses in the second quarter of 2024.
  • We continue to feel confident about the strength of our reserves.
  • A continued favorable pricing environment enabled us to selectively grow our Specialty P&C businesses.
  • New business opportunities enabled us to selectively grow our Specialty P&C businesses.
  • AFG continued to have significant excess capital at June 30, 2024.

Headwinds

  • Timing of acreage reporting by farmers tempered growth in the second quarter.
  • Underwriting actions in a few of our businesses tempered growth in the second quarter.
  • Non-renewal of several large accounts partially offset growth.
  • Adverse development in our excess liability business.
  • A decision to pause writing of new intellectual property-related coverage in our Innovative Markets business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.2%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.8%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+6.7%

Q3 2021

Best reaction

-9.0%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%-0.8%-2.6%
Q4 2025-0.7%-0.5%+0.4%
Q3 2025+2.7%+8.2%+0.8%
Q1 2025-6.3%-5.0%-3.7%
Q4 2024-6.2%-7.0%-6.5%
Q3 2024+5.5%+9.4%+13.9%
Q2 2024+0.1%+3.2%+7.8%
Q1 2024-0.1%+1.8%+1.7%
Q4 2023+3.1%+3.5%+8.4%
Q3 2023-0.5%+0.9%+6.5%
Q2 2023-7.6%-6.8%-3.6%
Q1 2023-5.8%-5.9%-8.4%
Q4 2022-5.5%-4.2%-6.9%
Q3 2022+0.3%+2.0%-2.3%
Q2 2022-3.4%-1.9%-2.3%
Q1 2022+4.8%+1.8%-1.4%
Q4 2021+2.5%+1.8%+2.2%
Q3 2021+6.7%+5.2%+0.8%
Q2 2021+2.5%+4.4%+9.7%
Q1 2021+0.9%+3.8%+11.3%
Q4 2020+3.2%+10.3%+21.4%
Q3 2020+0.5%+4.1%+25.9%
Q2 2020+1.0%+6.5%+8.5%
Q1 2020-9.0%-17.2%+1.4%
Q4 2019+1.2%+4.1%-12.2%
Q3 2019+0.9%+2.8%+7.9%
Q2 2019+3.0%+5.1%+6.1%
Q1 2019-1.0%+0.7%-5.1%
Q4 2018+1.1%-0.0%+5.7%
Q3 2018-0.1%+0.1%+2.6%
Q2 2018+0.8%+0.4%-1.2%
Q1 2018-3.9%-2.3%-2.5%
Q4 2017+6.4%-1.2%-2.1%
Q3 2017-3.4%-2.5%-0.3%
Q2 2017+3.4%+3.2%+0.4%
Q1 2017+3.7%+1.8%+3.2%
Q4 2016+5.6%+5.6%+10.4%
Q3 2016+2.0%-0.3%+11.2%
Q2 2016-1.4%+0.6%+2.9%
Q1 2016+1.6%
Q4 2015-2.1%
Q3 2015-2.5%
Q2 2015+2.2%
Q1 2015-0.5%
Q4 2014+4.7%
Q3 2014+1.0%
Q2 2014-0.5%
Q1 2014+0.5%
Q4 2013+0.9%
Q3 2013+0.9%
Q2 2013-1.0%
Q1 2013-0.6%
Q4 2012+1.0%
Q3 2012+0.3%
Q2 2012+1.0%
Q4 2008+3.6%
Q4 2009+3.6%
Q1 2012-0.2%
Q4 2011-1.0%
Q3 2011-0.8%
Q4 2010-1.0%
Q2 2011-1.0%
Q1 2010+1.2%
Q1 2011+2.0%
Q3 2010-2.9%
Q3 2009-2.9%
Q2 2010+0.4%
Q2 2009+0.4%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro