UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 2015
AMERICAN FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
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| Ohio |
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1-13653 |
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31-1544320 |
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of incorporation) |
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(Commission
File Number) |
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(IRS Employer
Identification No.) |
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| 301 East Fourth Street, Cincinnati, OH |
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45202 |
| (Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code 513-579-2121
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2 - Financial Information
Item 2.02 Results Of Operations And Financial Condition.
Reference is made to the press release of American Financial Group, Inc. (the “Company”) relating to the announcement of the
Company’s results of operations for the second quarter of 2015 and the availability of the Investor Supplement on the Company’s website. The press release was issued on August 4, 2015. A copy of the press release is attached to this
Form 8-K as Exhibit 99.1 and a copy of the Investor Supplement is attached as Exhibit 99.2 and are incorporated herein by reference.
The
information contained herein shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 as amended (the “Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be
deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.
Section 9 - Financial
Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
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(a) |
Financial statements of business acquired. Not applicable. |
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(b) |
Pro forma financial information. Not applicable. |
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(c) |
Shell company transactions. Not applicable |
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| Exhibit No. |
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Description |
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| 99.1 |
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Earnings Release dated August 4, 2015, reporting American Financial Group Inc. results for the quarter ended June 30, 2015. |
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| 99.2 |
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Investor Supplement – Second Quarter 2015 |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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AMERICAN FINANCIAL GROUP, INC. |
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| Date: August 5, 2015 |
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By: |
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/s/ Karl J. Grafe |
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Karl J. Grafe |
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Vice President |
3
Exhibit 99.1
American Financial Group, Inc. Announces Record Second Quarter Results
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Net earnings per share of $1.57; includes $0.29 per share gain on sale of hotel property |
| • |
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Record second quarter core net operating earnings $1.28 per share, up 20% from the comparable 2014 period |
| • |
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Adjusted book value $49.63 per share at June 30, 2015 |
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Full year 2015 core net operating earnings guidance increased to $5.25 - $5.55 per share |
Cincinnati, Ohio – August 4, 2015 – American Financial Group, Inc. (NYSE: AFG) today reported 2015 second quarter net earnings attributable to
shareholders of $141 million ($1.57 per share) compared to $106 million ($1.15 per share) for the 2014 second quarter. As previously announced, AFG’s 2015 second quarter results include an after-tax gain of $26 million ($0.29 per share) related
to the sale of a real estate investment. Comparatively, net earnings in the 2014 second quarter included after-tax net realized gains on securities of $7 million ($0.08 per share). Book value per share excluding unrealized gains on fixed maturities,
increased by $1.08 to $49.63 per share during the second quarter of 2015. Annualized return on equity was 13.4% and 10.3% for the second quarters of 2015 and 2014, respectively.
Core net operating earnings were $115 million ($1.28 per share) for the 2015 second quarter, compared to $99 million ($1.07 per share) in the 2014 second
quarter. Higher underwriting profit and net investment income in our Specialty Property and Casualty (“P&C”) insurance operations and higher operating earnings in our Annuity and Run-off Long-Term Care and Life Segments contributed to
these results. Core net operating earnings for the second quarters of 2015 and 2014 generated annualized core returns on equity of 10.9% and 9.6%, respectively.
During the second quarter of 2015, AFG repurchased approximately 740,000 shares of common stock for $47 million (average price per share of $63.91).
AFG’s net earnings attributable to shareholders, determined in accordance with U.S. generally accepted accounting principles (“GAAP”), include
certain items that may not be indicative of its ongoing core operations. The following table identifies such items and reconciles net earnings attributable to shareholders to core net operating earnings, a non-GAAP financial measure that AFG
believes is a useful tool for investors and analysts in analyzing ongoing operating trends.
Page 1
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| In millions, except per share amounts |
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Three months ended
June 30, |
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Six months ended
June 30, |
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2015 |
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2014 |
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2015 |
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2014 |
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| Components of net earnings attributable to shareholders: |
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| Core net operating earnings(a) |
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$ |
115 |
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$ |
99 |
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$ |
227 |
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$ |
190 |
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| Non-Core Items: |
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| Realized gains (losses) on securities |
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— |
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7 |
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12 |
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19 |
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| Realized gain on sale of hotel property |
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26 |
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— |
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26 |
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— |
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| Loss on sale of subsidiaries |
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— |
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— |
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(105 |
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— |
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| Net earnings attributable to shareholders |
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$ |
141 |
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$ |
106 |
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$ |
160 |
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$ |
209 |
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| Components of Earnings Per Share: |
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| Core net operating earnings(a) |
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$ |
1.28 |
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$ |
1.07 |
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$ |
2.54 |
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$ |
2.07 |
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| Non-Core Items: |
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| Realized gains (losses) on securities |
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— |
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0.08 |
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0.14 |
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0.21 |
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| Realized gain on sale of hotel property |
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0.29 |
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— |
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0.29 |
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— |
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| Loss on sale of subsidiaries |
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— |
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— |
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(1.18 |
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— |
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| Diluted Earnings Per Share |
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$ |
1.57 |
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$ |
1.15 |
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$ |
1.79 |
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$ |
2.28 |
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Footnote (a) is contained in the accompanying Notes to Financial Schedules at the end of this release.
Carl H. Lindner III and S. Craig Lindner, AFG’s Co-Chief Executive Officers, issued this statement: “Strong results in our Specialty P&C and
Annuity businesses produced record core net operating earnings per share for the second quarter of 2015 that were 20% higher year-over-year. The gain recognized on the sale of the Le Pavillon Hotel added $0.29 per share to our net earnings, and
serves as an example of our opportunistic approach in managing our real estate portfolio.
“At June 30, 2015, AFG had approximately $870 million
of excess capital (including parent company cash of approximately $215 million). In addition, the pending sale of our run-off long-term care insurance business is expected to generate approximately $110 million in excess capital. Our excess capital
will be deployed into AFG’s core businesses as we identify potential for healthy, profitable organic growth, and opportunities to expand our specialty niche businesses through acquisitions and start-ups that meet our target return thresholds.
We will also make opportunistic share repurchases when it makes sense to do so and return capital to shareholders through dividends.
“Based on
results for the first six months of 2015, we now estimate AFG’s core net operating earnings in 2015 to be between $5.25 and $5.55 per share, up from the range of $5.10 to $5.50 previously presented. Pending further information on the crop
growing season, our outlook for the Specialty P&C Group is unchanged, while changes in the interest rate environment and actions we have taken in the Annuity Group lead us to increase our 2015 outlook for core pretax annuity operating earnings.
Our core earnings per share guidance excludes non-core items such as the loss on the sale of AFG’s run-off long-term care insurance business, other realized gains and losses as well as other significant items that may not be indicative of
ongoing operations.”
Specialty Property and Casualty Insurance Operations
The Specialty P&C insurance operations generated an underwriting profit of $51 million in the 2015 second quarter, compared to $29 million in the second
quarter of 2014, a result of improved year-over-year underwriting results in each of our Specialty P&C Groups. The second quarter 2015 combined ratio of 94.9% includes 1.1 points of favorable prior year reserve development, compared to 1.4
points of adverse reserve development in the comparable prior year period. Second quarter results in 2015 include 1.0 point in catastrophe losses compared to 1.1 points in the 2014 second quarter.
Gross and net written premiums were up 2% and 3%, respectively, for the second quarter of 2015, when compared to the second quarter of 2014.
Page 2
Further details about AFG’s Specialty P&C operations may be found in the accompanying schedules and in
our Quarterly Investor Supplement, which is posted on our website.
The Property and Transportation Group reported an underwriting loss of $13
million in the second quarter of 2015, compared to an underwriting loss of $18 million in the second quarter of 2014. Improved year-over-year underwriting results in our National Interstate subsidiary were partially offset by lower profitability and
adverse reserve development in our property and inland marine, ocean marine and other transportation businesses. Catastrophe losses were $7 million for this group during the second quarter of 2015 and $8 million in the comparable prior year period.
Gross and net written premiums for the second quarter of 2015 were 2% and 3% higher, respectively, than the comparable 2014 period. Higher premiums in
our transportation and agricultural businesses were partially offset by lower premiums in our property and inland marine businesses. Pricing in this group was up approximately 5% on average for the quarter, and includes a 7% increase in National
Interstate’s renewal rates.
The Specialty Casualty Group reported an underwriting profit of $37 million in the second quarter of 2015,
compared to $30 million in the second quarter of 2014. Higher underwriting profitability in our workers’ compensation and excess and surplus businesses was partially offset by lower underwriting profits in our executive liability business and
higher adverse development in Mid-Continent’s general liability business.
Gross and net written premiums for the second quarter of 2015 were both up
1% when compared to the second quarter of 2014. The majority of businesses in this group reported growth, particularly our excess and surplus businesses. This growth was partially offset by lower premiums in our general liability business, primarily
the result of re-underwriting efforts within the Florida homebuilders market and the slowdown within the energy sector, as well as lower premiums in our international business, where we continue to focus on improving underwriting results. Pricing in
this group was down approximately 1% on average for the quarter, due primarily to lower pricing in our workers’ compensation businesses. Excluding workers’ compensation, pricing in this group was up 1%.
The Specialty Financial Group reported underwriting profit of $24 million in the second quarter of 2015, compared to $15 million in the second quarter
of 2014. Higher underwriting profits in our fidelity and crime, surety and trade credit businesses were the drivers of the improved results. Every business in this group achieved excellent underwriting margins during the quarter, producing an
overall calendar year combined operating ratio of 81% for the second quarter of 2015.
Gross and net written premiums for the second quarter of 2015 were
up 7% and 13%, respectively, when compared to the same 2014 period, primarily the result of higher premiums in our financial institutions business. Pricing in this group was flat for the quarter.
Carl Lindner III stated: “I’m very pleased with the results in our Specialty P&C businesses during the second quarter, with total P&C
operating income up nearly 25% year-over-year. Our Specialty Financial Group reported double digit growth and excellent underwriting margins. Despite competitive market conditions in some of our casualty businesses, results in our Specialty Casualty
Group were very strong. I’m disappointed, however, with the underwriting loss reported by our Property and Transportation Group. We continue to make progress with pricing and remain committed to our culture of underwriting discipline to
strengthen the underwriting profitability of this group overall. Our Specialty P&C Group achieved an average overall renewal rate increase of approximately 1% for the quarter.
“Based on results during the first six months of the year, we continue to expect an overall 2015 calendar year combined ratio in the 92% to 94% range and
estimate net written premium growth to be between 4% and 8%.”
Page 3
Annuity Segment
In connection with AFG’s Annuity Segment results shown below, Craig Lindner stated, “Our results reflect disciplined pricing and our strategy of
growing our business when we can achieve desired long-term returns. Based on the results through the first six months of 2015, assuming no significant change in interest rates or the stock market from our expectations, we now estimate full year 2015
core pretax annuity operating earnings to be in the range of $330 million to $345 million, an increase from the range of $310 million to $340 million previously estimated. Significant changes in market interest rates and/or the stock market, as
compared to our expectations, could lead to significant positive or negative impacts on the Annuity Segment’s results. In addition, based on recent results, we now expect that premiums for the full year of 2015 will be in line with the $3.7
billion achieved for the full year in 2014.”
AFG’s annuity operations contributed $88 million in core pretax operating earnings in the second
quarter of 2015 compared to $84 million in the second quarter of 2014, an increase of 5%. Earnings before the impact of fair value accounting on fixed-indexed annuities (FIAs) declined by 18%, as detailed in the table below:
Components of Core Annuity Operating Earnings Before Income Taxes
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| In millions |
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Three months ended
June 30, |
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Pct.
Change |
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Six months ended
June 30, |
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Pct.
Change |
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2015 |
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2014 |
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2015 |
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2014 |
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| Annuity earnings before fair value accounting for FIAs |
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$ |
77 |
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$ |
94 |
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(18 |
%) |
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$ |
169 |
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$ |
182 |
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(7 |
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| Impact of Fair Value Accounting for FIAs |
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11 |
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(10 |
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nm |
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(6 |
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(25 |
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nm |
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| Core Pretax Annuity Operating Earnings |
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$ |
88 |
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$ |
84 |
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5 |
% |
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$ |
163 |
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$ |
157 |
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4 |
% |
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Annuity Earnings Before Fair Value Accounting for FIAs
AFG’s 2015 earnings continued to benefit from growth in annuity assets. AFG’s quarterly average annuity investments and reserves grew approximately
12% year-over-year; however, the impact of this growth was offset by the runoff of higher yielding investments, an adjustment in the current quarter affecting fixed-indexed annuities with guaranteed lifetime withdrawal benefits, and higher
general and administrative expenses.
Impact of Fair Value Accounting for FIAs
Variances from expectations of certain items (such as projected interest rates, option costs and surrenders), as well as changes in the stock market, have an
impact on the accounting for FIAs; these accounting adjustments are recognized through AFG’s reported core earnings.
In the second quarter of 2015,
interest rates rose significantly, resulting in a large favorable impact on earnings; this favorable result was partially offset by the impact of a stock market decrease during the quarter. Conversely, in the second quarter of 2014, interest rates
generally decreased, versus AFG’s assumption that they would rise; this difference had a negative impact on AFG’s 2014 second quarter earnings. These impacts are included within the “Impact of Fair Value Accounting for FIAs”
amounts shown in the table above.
Annuity Premiums
The Annuity Segment reported statutory premiums of $899 million in the second quarter of 2015. While this amount was 5% lower than sales in the comparable
prior year period, it represents an 11% increase in sales over the first quarter of 2015.
More information about premiums and the results of operations
for our Annuity Segment may be found in the accompanying schedules and in our Quarterly Investor Supplement, which is posted on our website.
Page 4
Run-off Long-Term Care and Life Segment
AFG’s Run-off Long-term Care and Life Segment reported core pretax operating earnings of $4 million in the second quarter of 2015 compared to a core
pretax operating loss of $2 million in the comparable prior year period, reflecting the favorable impact of rate increases, higher investment income and lower persistency compared to the same period last year.
As previously announced, AFG reached a definitive agreement to sell the legal entities containing all of its run-off long-term care insurance business to HC2
Holdings, Inc. for an initial payment of $7 million in cash and HC2 securities, subject to adjustment based on certain items, including operating results through the closing date. In addition, AFG may also receive up to $13 million of additional
proceeds from HC2 in the future based on the release of certain statutory liabilities of the legal entities sold by AFG. In accordance with GAAP, AFG recorded its estimated non-core, after-tax loss on the sale of $105 million in its results for the
first quarter of 2015.
The legal entities involved in the transaction, United Teacher Associates Insurance Company and Continental General Insurance
Company, contain all of AFG’s long-term care insurance reserves. The transaction is expected to close in the second half of 2015, subject to customary conditions, including receipt of required regulatory approvals.
Investments
AFG recorded second quarter 2015 net
realized losses on securities of less than $1 million after tax and after deferred acquisition costs (DAC), compared to net realized gains of $7 million reported in the comparable 2014 period. Unrealized gains on fixed maturities were $457 million
after tax and after DAC at June 30, 2015, a decrease of $147 million since year end. Our portfolio continues to be high quality, with 87% of our fixed maturity portfolio rated investment grade and 97% with a National Association of Insurance
Commissioners’ designation of NAIC 1or 2, its highest two categories.
For the six months ended June 30, 2015, P&C net investment income was
approximately 13% higher than the comparable 2014 period, reflecting the investment of cash received in connection with the Summit acquisition.
Second
quarter 2015 results also include an after-tax non-core net realized gain of $26 million on the sale of Le Pavillon Hotel.
More information about the
components of our investment portfolio may be found in our Quarterly Investor Supplement, which is posted on our website.
About American Financial
Group, Inc.
American Financial Group is an insurance holding company, based in Cincinnati, Ohio with assets over $45 billion. Through the
operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of fixed and fixed-indexed annuities in the retail, financial
institutions and education markets. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.
Page 5
Forward Looking Statements
This press release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this press release not dealing with historical results are forward-looking and are based on estimates, assumptions and projections. Examples of
such forward-looking statements include statements relating to: the Company’s expectations concerning market and other conditions and their effect on future premiums, revenues, earnings and investment activities; recoverability of asset values;
expected losses and the adequacy of reserves for long-term care, asbestos, environmental pollution and mass tort claims; rate changes; and improved loss experience.
Actual results and/or financial condition could differ materially from those contained in or implied by such forward-looking statements for a variety of
reasons including but not limited to: changes in financial, political and economic conditions, including changes in interest and inflation rates, currency fluctuations and extended economic recessions or expansions in the U.S. and/or abroad;
performance of securities markets; AFG’s ability to estimate accurately the likelihood, magnitude and timing of any losses in connection with investments in the non-agency residential mortgage market; new legislation or declines in credit
quality or credit ratings that could have a material impact on the valuation of securities in AFG’s investment portfolio; the availability of capital; the possibility that the pending sale of AFG’s run-off long-term care business is not
consummated; regulatory actions (including changes in statutory accounting rules); changes in the legal environment affecting AFG or its customers; tax law and accounting changes; levels of natural catastrophes and severe weather, terrorist
activities (including any nuclear, biological, chemical or radiological events), incidents of war or losses resulting from civil unrest and other major losses; development of insurance loss reserves and establishment of other reserves, particularly
with respect to amounts associated with asbestos and environmental claims and AFG’s run-off long-term care business; availability of reinsurance and ability of reinsurers to pay their obligations; trends in persistency, mortality and morbidity;
competitive pressures, including those in the annuity distribution channels, the ability to obtain adequate rates and policy terms; changes in AFG’s credit ratings or the financial strength ratings assigned by major ratings agencies to our
operating subsidiaries; and other factors identified in our filings with the Securities and Exchange Commission.
The forward-looking statements herein
are made only as of the date of this press release. The Company assumes no obligation to publicly update any forward-looking statements.
Conference
Call
The Company will hold a conference call to discuss 2015 second quarter results at 11:30 a.m. (ET) tomorrow, Wednesday, August 5, 2015.
Toll-free telephone access will be available by dialing 1-877-459-8719 (international dial-in 424-276-6843). The conference ID for the live call is 78269027. Please dial in five to ten minutes prior to the scheduled start time of the call.
A replay will be available two hours following the completion of the call and will remain available until 11:59 p.m. (ET) on August 12, 2015. To listen
to the replay, dial 1-855-859-2056 (international dial-in 404-537-3406) and provide the conference ID 78269027.
The conference call and accompanying
webcast slides will also be broadcast live over the Internet. To listen to the call via the Internet, go to the Investor Relations page on AFG’s website, www.AFGinc.com, and follow the instructions at the Webcasts and
Presentations link.
Page 6
The archived webcast will be available immediately after the call via the same link on the Investor Relations
page until August 12, 2015 at 11:59 p.m. (ET). An archived audio MP3 file will be available within 24 hours of the call.
Contact:
Diane P. Weidner
Asst. Vice President – Investor Relations
(513) 369-5713
Websites:
www.AFGinc.com
www.GreatAmericanInsuranceGroup.com
# # #
(Financial summaries follow)
This earnings release and AFG’s Quarterly Investor Supplement are available in the Investor Relations section of AFG’s website:
www.AFGinc.com.
AFG15-13
Page 7
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
SUMMARY OF EARNINGS AND SELECTED BALANCE SHEET DATA
(In Millions, Except Per Share Data)
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Three months ended
June 30, |
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Six months ended
June 30, |
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2015 |
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2014 |
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2015 |
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2014 |
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| Revenues |
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| P&C insurance net earned premiums |
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$ |
985 |
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$ |
931 |
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$ |
1,931 |
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$ |
1,685 |
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| Life, accident & health net earned premiums |
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27 |
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27 |
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52 |
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55 |
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| Net investment income |
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404 |
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379 |
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792 |
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740 |
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| Realized gains (losses) on: |
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| Securities |
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(1 |
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12 |
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18 |
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31 |
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| Subsidiaries |
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— |
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— |
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(162 |
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— |
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| Income (loss) of managed investment entities: |
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| Investment income |
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38 |
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27 |
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72 |
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55 |
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| Gain (loss) on change in fair value of assets/liabilities |
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(2 |
) |
|
|
(10 |
) |
|
|
(5 |
) |
|
|
(10 |
) |
| Other income |
|
|
90 |
|
|
|
26 |
|
|
|
137 |
|
|
|
47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
1,541 |
|
|
|
1,392 |
|
|
|
2,835 |
|
|
|
2,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| P&C insurance losses & expenses |
|
|
939 |
|
|
|
902 |
|
|
|
1,828 |
|
|
|
1,598 |
|
| Annuity, life, accident & health benefits & expenses |
|
|
248 |
|
|
|
246 |
|
|
|
502 |
|
|
|
492 |
|
| Interest charges on borrowed money |
|
|
19 |
|
|
|
17 |
|
|
|
39 |
|
|
|
35 |
|
| Expenses of managed investment entities |
|
|
28 |
|
|
|
21 |
|
|
|
52 |
|
|
|
41 |
|
| Other expenses |
|
|
81 |
|
|
|
76 |
|
|
|
158 |
|
|
|
146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total costs and expenses |
|
|
1,315 |
|
|
|
1,262 |
|
|
|
2,579 |
|
|
|
2,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings before income taxes |
|
|
226 |
|
|
|
130 |
|
|
|
256 |
|
|
|
291 |
|
| Provision for income taxes(b) |
|
|
77 |
|
|
|
47 |
|
|
|
82 |
|
|
|
101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings including noncontrolling interests |
|
|
149 |
|
|
|
83 |
|
|
|
174 |
|
|
|
190 |
|
| Less: Net earnings (loss) attributable to noncontrolling interests |
|
|
8 |
|
|
|
(23 |
) |
|
|
14 |
|
|
|
(19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings attributable to shareholders |
|
$ |
141 |
|
|
$ |
106 |
|
|
$ |
160 |
|
|
$ |
209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted Earnings per Common Share |
|
$ |
1.57 |
|
|
$ |
1.15 |
|
|
$ |
1.79 |
|
|
$ |
2.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average number of diluted shares |
|
|
89.5 |
|
|
|
91.6 |
|
|
|
89.4 |
|
|
|
91.6 |
|
|
|
|
|
|
|
|
|
|
| |
|
June 30,
2015 |
|
|
December 31,
2014 |
|
| Selected Balance Sheet Data: |
|
|
|
|
|
|
|
|
| Total cash and investments |
|
$ |
37,644 |
|
|
$ |
36,210 |
|
| Long-term debt |
|
$ |
1,024 |
|
|
$ |
1,061 |
|
| Shareholders’ equity(c) |
|
$ |
4,802 |
|
|
$ |
4,879 |
|
| Shareholders’ equity (excluding appropriated retained earnings and unrealized gains/losses on fixed maturities)(c) |
|
$ |
4,345 |
|
|
$ |
4,277 |
|
| Book Value Per Share: |
|
|
|
|
|
|
|
|
| Excluding appropriated retained earnings |
|
$ |
54.86 |
|
|
$ |
55.65 |
|
| Excluding appropriated retained earnings and unrealized gains/losses on fixed maturities |
|
$ |
49.63 |
|
|
$ |
48.76 |
|
| Common Shares Outstanding |
|
|
87.5 |
|
|
|
87.7 |
|
Footnotes (b) and (c) are contained in the accompanying Notes to Financial Schedules at the end of this release.
Page 8
AMERICAN FINANCIAL GROUP, INC.
SPECIALTY P&C OPERATIONS
(Dollars in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended
June 30, |
|
|
Pct.
Change |
|
|
Six months ended
June 30, |
|
|
Pct.
Change |
|
| |
|
2015 |
|
|
2014 |
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
| Gross written premiums |
|
$ |
1,318 |
|
|
$ |
1,291 |
|
|
|
2 |
% |
|
$ |
2,514 |
|
|
$ |
2,315 |
|
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net written premiums |
|
$ |
1,026 |
|
|
$ |
998 |
|
|
|
3 |
% |
|
$ |
1,952 |
|
|
$ |
1,753 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios (GAAP): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss & LAE ratio |
|
|
61.0 |
% |
|
|
64.6 |
% |
|
|
|
|
|
|
60.9 |
% |
|
|
61.1 |
% |
|
|
|
|
| Underwriting expense ratio |
|
|
33.9 |
% |
|
|
32.3 |
% |
|
|
|
|
|
|
33.3 |
% |
|
|
33.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined Ratio |
|
|
94.9 |
% |
|
|
96.9 |
% |
|
|
|
|
|
|
94.2 |
% |
|
|
94.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Supplemental Information:(d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross Written Premiums: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property & Transportation |
|
$ |
500 |
|
|
$ |
489 |
|
|
|
2 |
% |
|
$ |
876 |
|
|
$ |
865 |
|
|
|
1 |
% |
| Specialty Casualty |
|
|
661 |
|
|
|
655 |
|
|
|
1 |
% |
|
|
1,344 |
|
|
|
1,162 |
|
|
|
16 |
% |
| Specialty Financial |
|
|
157 |
|
|
|
147 |
|
|
|
7 |
% |
|
|
294 |
|
|
|
288 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,318 |
|
|
$ |
1,291 |
|
|
|
2 |
% |
|
$ |
2,514 |
|
|
$ |
2,315 |
|
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Written Premiums: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property & Transportation |
|
$ |
362 |
|
|
$ |
353 |
|
|
|
3 |
% |
|
$ |
650 |
|
|
$ |
637 |
|
|
|
2 |
% |
| Specialty Casualty |
|
|
503 |
|
|
|
499 |
|
|
|
1 |
% |
|
|
1,004 |
|
|
|
830 |
|
|
|
21 |
% |
| Specialty Financial |
|
|
136 |
|
|
|
120 |
|
|
|
13 |
% |
|
|
251 |
|
|
|
236 |
|
|
|
6 |
% |
| Other |
|
|
25 |
|
|
|
26 |
|
|
|
(4 |
%) |
|
|
47 |
|
|
|
50 |
|
|
|
(6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,026 |
|
|
$ |
998 |
|
|
|
3 |
% |
|
$ |
1,952 |
|
|
$ |
1,753 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined Ratio (GAAP): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property & Transportation |
|
|
104.0 |
% |
|
|
105.5 |
% |
|
|
|
|
|
|
101.0 |
% |
|
|
102.0 |
% |
|
|
|
|
| Specialty Casualty |
|
|
92.7 |
% |
|
|
93.6 |
% |
|
|
|
|
|
|
93.4 |
% |
|
|
91.2 |
% |
|
|
|
|
| Specialty Financial |
|
|
81.0 |
% |
|
|
87.6 |
% |
|
|
|
|
|
|
81.4 |
% |
|
|
89.3 |
% |
|
|
|
|
| Aggregate Specialty Group |
|
|
94.9 |
% |
|
|
96.9 |
% |
|
|
|
|
|
|
94.2 |
% |
|
|
94.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended
June 30, |
|
|
Six months ended
June 30, |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Reserve Development (Favorable)/Adverse: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property & Transportation |
|
$ |
6 |
|
|
$ |
22 |
|
|
$ |
9 |
|
|
$ |
18 |
|
| Specialty Casualty |
|
|
(7 |
) |
|
|
(4 |
) |
|
|
(7 |
) |
|
|
(28 |
) |
| Specialty Financial |
|
|
(8 |
) |
|
|
(2 |
) |
|
|
(17 |
) |
|
|
(3 |
) |
| Other |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(11 |
) |
|
$ |
14 |
|
|
$ |
(18 |
) |
|
$ |
(18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Points on Combined Ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property & Transportation |
|
|
1.7 |
|
|
|
6.6 |
|
|
|
1.4 |
|
|
|
2.9 |
|
| Specialty Casualty |
|
|
(1.4 |
) |
|
|
(0.8 |
) |
|
|
(0.8 |
) |
|
|
(3.6 |
) |
| Specialty Financial |
|
|
(6.2 |
) |
|
|
(1.8 |
) |
|
|
(6.7 |
) |
|
|
(1.2 |
) |
| Aggregate Specialty Group |
|
|
(1.1 |
) |
|
|
1.4 |
|
|
|
(1.0 |
) |
|
|
(1.1 |
) |
Footnote (d) is contained in the accompanying Notes to Financial Schedules at the end of this release
Page 9
AMERICAN FINANCIAL GROUP, INC.
ANNUITY SEGMENT
(Dollars
in Millions)
Components of Statutory Premiums
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended
June 30, |
|
|
Pct.
Change |
|
|
Six months ended
June 30, |
|
|
Pct.
Change |
|
| |
|
2015 |
|
|
2014 |
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
| Annuity Premiums: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financial Institutions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Single Premium |
|
$ |
417 |
|
|
$ |
459 |
|
|
|
(9 |
%) |
|
$ |
811 |
|
|
$ |
939 |
|
|
|
(14 |
%) |
| Retail Single Premium |
|
|
422 |
|
|
|
428 |
|
|
|
(1 |
%) |
|
|
783 |
|
|
|
853 |
|
|
|
(8 |
%) |
| Education Market |
|
|
49 |
|
|
|
49 |
|
|
|
— |
|
|
|
96 |
|
|
|
99 |
|
|
|
(3 |
%) |
| Variable Annuities |
|
|
11 |
|
|
|
13 |
|
|
|
(15 |
%) |
|
|
22 |
|
|
|
25 |
|
|
|
(12 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Annuity Premiums |
|
$ |
899 |
|
|
$ |
949 |
|
|
|
(5 |
%) |
|
$ |
1,712 |
|
|
$ |
1,916 |
|
|
|
(11 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Components of Core Operating Earnings Before Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended
June 30, |
|
|
Pct.
Change |
|
|
Six months ended
June 30, |
|
|
Pct.
Change |
|
| |
|
2015 |
|
|
2014 |
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income |
|
$ |
306 |
|
|
$ |
289 |
|
|
|
6 |
% |
|
$ |
598 |
|
|
$ |
564 |
|
|
|
6 |
% |
| Other income |
|
|
22 |
|
|
|
19 |
|
|
|
16 |
% |
|
|
46 |
|
|
|
37 |
|
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
328 |
|
|
|
308 |
|
|
|
6 |
% |
|
|
644 |
|
|
|
601 |
|
|
|
7 |
% |
| Costs and Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Annuity benefits |
|
|
151 |
|
|
|
166 |
|
|
|
(9 |
%) |
|
|
335 |
|
|
|
334 |
|
|
|
— |
|
| Acquisition expenses |
|
|
60 |
|
|
|
37 |
|
|
|
62 |
% |
|
|
94 |
|
|
|
68 |
|
|
|
38 |
% |
| Other expenses |
|
|
29 |
|
|
|
21 |
|
|
|
38 |
% |
|
|
52 |
|
|
|
42 |
|
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total costs and expenses |
|
|
240 |
|
|
|
224 |
|
|
|
7 |
% |
|
|
481 |
|
|
|
444 |
|
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core operating earnings before income taxes |
|
$ |
88 |
|
|
$ |
84 |
|
|
|
5 |
% |
|
$ |
163 |
|
|
$ |
157 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Supplemental Fixed Annuity Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended
June 30, |
|
|
Pct.
Change |
|
|
Six months ended
June 30, |
|
|
Pct.
Change |
|
| |
|
2015 |
|
|
2014 |
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
| Core Operating Earnings Before impact of fair value accounting on FIAs |
|
$ |
77 |
|
|
$ |
94 |
|
|
|
(18 |
%) |
|
$ |
169 |
|
|
$ |
182 |
|
|
|
(7 |
%) |
| Impact of Fair Value Accounting |
|
|
11 |
|
|
|
(10 |
) |
|
|
nm |
|
|
|
(6 |
) |
|
|
(25 |
) |
|
|
nm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core operating earnings before income taxes |
|
$ |
88 |
|
|
$ |
84 |
|
|
|
5 |
% |
|
$ |
163 |
|
|
$ |
157 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Fixed Annuity Reserves* |
|
$ |
24,474 |
|
|
$ |
21,829 |
|
|
|
12 |
% |
|
$ |
24,113 |
|
|
$ |
21,448 |
|
|
|
12 |
% |
| Net Interest Spread* |
|
|
2.77 |
% |
|
|
2.92 |
% |
|
|
|
|
|
|
2.72 |
% |
|
|
2.87 |
% |
|
|
|
|
| Net Spread Earned Before Impact of Fair Value Accounting* |
|
|
1.21 |
% |
|
|
1.64 |
% |
|
|
|
|
|
|
1.35 |
% |
|
|
1.61 |
% |
|
|
|
|
| Net Spread Earned After Impact of Fair Value Accounting* |
|
|
1.39 |
% |
|
|
1.46 |
% |
|
|
|
|
|
|
1.30 |
% |
|
|
1.38 |
% |
|
|
|
|
| * |
Excludes fixed annuity portion of variable annuity business. |
Page 10
AMERICAN FINANCIAL GROUP, INC.
Notes to Financial Schedules
| a) |
Components of core net operating earnings (in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended
June 30, |
|
|
Six months ended
June 30, |
|
| |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Core Operating Earnings before Income Taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| P&C Insurance Segment
Annuity Segment |
|
$
|
121
88 |
|
|
$
|
97
84 |
|
|
$
|
250
163 |
|
|
$
|
205
157 |
|
| Run-off Long-term Care and Life Segment |
|
|
4 |
|
|
|
(2 |
) |
|
|
8 |
|
|
|
(4 |
) |
| Interest and other corporate expenses |
|
|
(39 |
) |
|
|
(37 |
) |
|
|
(80 |
) |
|
|
(78 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core operating earnings before income taxes |
|
|
174 |
|
|
|
142 |
|
|
|
341 |
|
|
|
280 |
|
| Related income taxes |
|
|
59 |
|
|
|
43 |
|
|
|
114 |
|
|
|
90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core net operating earnings |
|
$ |
115 |
|
|
$ |
99 |
|
|
$ |
227 |
|
|
$ |
190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| b) |
Earnings before income taxes includes $18 million in non-deductible losses attributable to noncontrolling interests related to managed investment entities in both the second quarter and first six months of 2014.
|
| c) |
Shareholders’ Equity at June 30, 2015 includes $457 million ($5.23 per share) in unrealized after-tax gains on fixed maturities. Shareholder’s Equity at December 31, 2014 includes $604 million ($6.89
per share) in unrealized after-tax gains on fixed maturities and ($2) million ($0.03 per share) of retained earnings appropriated to managed investment entities. |
| |
• |
|
Property & Transportation includes primarily physical damage and liability coverage for buses, trucks and recreational vehicles, inland and ocean marine, agricultural-related products and other property
coverages. |
| |
• |
|
Specialty Casualty includes primarily excess and surplus, general liability, executive liability, professional liability, umbrella and excess liability, specialty coverages in targeted markets, customized
programs for small to mid-sized businesses and workers’ compensation insurance. |
| |
• |
|
Specialty Financial includes risk management insurance programs for leasing and financing institutions (including collateral and lender-placed mortgage property insurance), surety and fidelity products and trade
credit insurance. |
| |
• |
|
Other includes an internal reinsurance facility. |
Page 11
Exhibit 99.2
|
|
|
|
|
American Financial Group, Inc. |
| |
Investor Supplement - Second Quarter 2015 |
| |
August 4, 2015 |
| |
American Financial Group, Inc. |
| |
Corporate Headquarters |
| |
Great American Insurance Group Tower |
| |
301 E Fourth Street |
| |
Cincinnati, OH 45202 |
| |
513 579 6739 |
|
|
|
| American Financial Group, Inc. Table of Contents - Investor Supplement - Second Quarter 2015 |
|
|
|
|
|
|
|
| Section |
|
Page |
|
| Table of Contents - Investor Supplement - Second Quarter 2015 |
|
|
2 |
|
| Financial Highlights |
|
|
3 |
|
| Summary of Earnings |
|
|
4 |
|
| Earnings Per Share Summary |
|
|
5 |
|
|
|
| Property and Casualty Insurance Segment |
|
|
|
|
| Property and Casualty Insurance - Summary Underwriting Results (GAAP) |
|
|
6 |
|
| Specialty - Underwriting Results (GAAP) |
|
|
7 |
|
| Property and Transportation - Underwriting Results (GAAP) |
|
|
8 |
|
| Specialty Casualty - Underwriting Results (GAAP) |
|
|
9 |
|
| Specialty Financial - Underwriting Results (GAAP) |
|
|
10 |
|
| Other Specialty - Underwriting Results (GAAP) |
|
|
11 |
|
|
|
| Annuity Segment |
|
|
|
|
| Annuity Earnings (GAAP) |
|
|
12 |
|
| Detail of Annuity Benefits Expense (GAAP) |
|
|
13 |
|
| Net Spread on Fixed Annuities (GAAP) |
|
|
14 |
|
| Annuity Premiums (Statutory) |
|
|
15 |
|
| Fixed Annuity Benefits Accumulated (GAAP) |
|
|
16 |
|
|
|
| Consolidated Balance Sheet / Book Value / Debt |
|
|
|
|
| Consolidated Balance Sheet |
|
|
17 |
|
| Book Value Per Share and Price / Book Summary |
|
|
18 |
|
| Capitalization |
|
|
19 |
|
| Additional Supplemental Information |
|
|
20 |
|
|
|
| Consolidated Investment Supplement |
|
|
|
|
| Total Cash and Investments and Quarterly Net Investment Income |
|
|
21 |
|
| Fixed Maturities - By Security Type - AFG Consolidated |
|
|
22 |
|
| Fixed Maturities - By Security Type Portfolio |
|
|
23 |
|
| Fixed Maturities - Credit Rating and NAIC Designation |
|
|
24 |
|
| Mortgage-Backed Securities - AFG Consolidated |
|
|
25 |
|
| Mortgage-Backed Securities Portfolio |
|
|
26 |
|
| Mortgage-Backed Securities - Credit Rating and NAIC Designation |
|
|
27 |
|
2
|
|
|
| American Financial Group, Inc.
Financial Highlights (in millions, except per share
information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core net operating earnings |
|
$ |
115 |
|
|
$ |
112 |
|
|
$ |
122 |
|
|
$ |
127 |
|
|
$ |
99 |
|
|
$ |
227 |
|
|
$ |
190 |
|
| Net earnings |
|
|
141 |
|
|
|
19 |
|
|
|
127 |
|
|
|
116 |
|
|
|
106 |
|
|
|
160 |
|
|
|
209 |
|
| Total assets |
|
|
49,424 |
|
|
|
48,307 |
|
|
|
47,535 |
|
|
|
46,552 |
|
|
|
45,355 |
|
|
|
49,424 |
|
|
|
45,355 |
|
| Adjusted shareholders’ equity (a) |
|
|
4,345 |
|
|
|
4,267 |
|
|
|
4,277 |
|
|
|
4,300 |
|
|
|
4,298 |
|
|
|
4,345 |
|
|
|
4,298 |
|
| Property and Casualty net written premiums |
|
|
1,026 |
|
|
|
926 |
|
|
|
1,025 |
|
|
|
1,242 |
|
|
|
998 |
|
|
|
1,952 |
|
|
|
1,753 |
|
| Annuity statutory premiums |
|
|
899 |
|
|
|
813 |
|
|
|
971 |
|
|
|
809 |
|
|
|
949 |
|
|
|
1,712 |
|
|
|
1,916 |
|
| Per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core net operating earnings per share |
|
$ |
1.28 |
|
|
$ |
1.25 |
|
|
$ |
1.35 |
|
|
$ |
1.40 |
|
|
$ |
1.07 |
|
|
$ |
2.54 |
|
|
$ |
2.07 |
|
| Diluted earnings per share |
|
|
1.57 |
|
|
|
0.21 |
|
|
|
1.41 |
|
|
|
1.28 |
|
|
|
1.15 |
|
|
|
1.79 |
|
|
|
2.28 |
|
| Adjusted book value per share (a) |
|
|
49.63 |
|
|
|
48.55 |
|
|
|
48.76 |
|
|
|
48.59 |
|
|
|
47.95 |
|
|
|
49.63 |
|
|
|
47.95 |
|
| Cash dividends per common share |
|
|
0.250 |
|
|
|
0.250 |
|
|
|
1.250 |
|
|
|
0.220 |
|
|
|
0.220 |
|
|
|
0.500 |
|
|
|
0.440 |
|
| Financial ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Annualized core operating return on equity (b) |
|
|
10.9 |
% |
|
|
10.8 |
% |
|
|
11.7 |
% |
|
|
12.3 |
% |
|
|
9.6 |
% |
|
|
10.9 |
% |
|
|
9.3 |
% |
| Annualized return on equity (b) |
|
|
13.4 |
% |
|
|
1.8 |
% |
|
|
12.1 |
% |
|
|
11.1 |
% |
|
|
10.3 |
% |
|
|
7.6 |
% |
|
|
10.3 |
% |
| Property and Casualty combined ratio - Specialty: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss & LAE ratio |
|
|
61.0 |
% |
|
|
60.8 |
% |
|
|
64.0 |
% |
|
|
67.1 |
% |
|
|
64.6 |
% |
|
|
60.9 |
% |
|
|
61.1 |
% |
| Underwriting expense ratio |
|
|
33.9 |
% |
|
|
32.8 |
% |
|
|
28.6 |
% |
|
|
26.7 |
% |
|
|
32.3 |
% |
|
|
33.3 |
% |
|
|
33.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio - Specialty |
|
|
94.9 |
% |
|
|
93.6 |
% |
|
|
92.6 |
% |
|
|
93.8 |
% |
|
|
96.9 |
% |
|
|
94.2 |
% |
|
|
94.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net spread on fixed annuities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest spread |
|
|
2.77 |
% |
|
|
2.67 |
% |
|
|
2.64 |
% |
|
|
2.77 |
% |
|
|
2.92 |
% |
|
|
2.72 |
% |
|
|
2.87 |
% |
| Net spread earned: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before impact of fair value accounting |
|
|
1.21 |
% |
|
|
1.49 |
% |
|
|
1.54 |
% |
|
|
1.50 |
% |
|
|
1.64 |
% |
|
|
1.35 |
% |
|
|
1.61 |
% |
| Impact of fair value accounting (c) |
|
|
0.18 |
% |
|
|
(0.28 |
%) |
|
|
(0.14 |
%) |
|
|
(0.02 |
%) |
|
|
(0.18 |
%) |
|
|
(0.05 |
%) |
|
|
(0.23 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| After impact of fair value accounting |
|
|
1.39 |
% |
|
|
1.21 |
% |
|
|
1.40 |
% |
|
|
1.48 |
% |
|
|
1.46 |
% |
|
|
1.30 |
% |
|
|
1.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
Excludes appropriated retained earnings and unrealized gains related to fixed maturity investments. |
| (b) |
Excludes appropriated retained earnings and accumulated other comprehensive income. |
| (c) |
Change in fair value of derivatives offset by the estimated related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs. |
3
|
|
|
| American Financial Group, Inc.
Summary of Earnings ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Property and Casualty Insurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underwriting profit |
|
$ |
50 |
|
|
$ |
60 |
|
|
$ |
79 |
|
|
$ |
70 |
|
|
$ |
29 |
|
|
$ |
110 |
|
|
$ |
87 |
|
| Net investment income |
|
|
83 |
|
|
|
79 |
|
|
|
75 |
|
|
|
76 |
|
|
|
76 |
|
|
|
162 |
|
|
|
143 |
|
| Other expense |
|
|
(12 |
) |
|
|
(10 |
) |
|
|
(13 |
) |
|
|
(16 |
) |
|
|
(8 |
) |
|
|
(22 |
) |
|
|
(25 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property and Casualty Insurance operating earnings |
|
|
121 |
|
|
|
129 |
|
|
|
141 |
|
|
|
130 |
|
|
|
97 |
|
|
|
250 |
|
|
|
205 |
|
| Annuity earnings |
|
|
88 |
|
|
|
75 |
|
|
|
85 |
|
|
|
86 |
|
|
|
84 |
|
|
|
163 |
|
|
|
157 |
|
| Run-off Long-Term Care and Life (losses)/earnings |
|
|
4 |
|
|
|
4 |
|
|
|
(7 |
) |
|
|
1 |
|
|
|
(2 |
) |
|
|
8 |
|
|
|
(4 |
) |
| Interest expense of parent holding companies |
|
|
(19 |
) |
|
|
(19 |
) |
|
|
(19 |
) |
|
|
(17 |
) |
|
|
(16 |
) |
|
|
(38 |
) |
|
|
(33 |
) |
| Other expense |
|
|
(20 |
) |
|
|
(22 |
) |
|
|
(16 |
) |
|
|
(13 |
) |
|
|
(21 |
) |
|
|
(42 |
) |
|
|
(45 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pre-tax core operating earnings |
|
|
174 |
|
|
|
167 |
|
|
|
184 |
|
|
|
187 |
|
|
|
142 |
|
|
|
341 |
|
|
|
280 |
|
| Income tax expense |
|
|
59 |
|
|
|
55 |
|
|
|
62 |
|
|
|
60 |
|
|
|
43 |
|
|
|
114 |
|
|
|
90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core net operating earnings |
|
|
115 |
|
|
|
112 |
|
|
|
122 |
|
|
|
127 |
|
|
|
99 |
|
|
|
227 |
|
|
|
190 |
|
| Non-core items, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Realized gains on securities |
|
|
— |
|
|
|
12 |
|
|
|
5 |
|
|
|
8 |
|
|
|
7 |
|
|
|
12 |
|
|
|
19 |
|
| Realized gain on sale of hotel property |
|
|
26 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26 |
|
|
|
— |
|
| Loss on sale of subsidiaries |
|
|
— |
|
|
|
(105 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(105 |
) |
|
|
— |
|
| Significant A&E charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property and Casualty Insurance run-off operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Former Railroad and Manufacturing operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings |
|
$ |
141 |
|
|
$ |
19 |
|
|
$ |
127 |
|
|
$ |
116 |
|
|
$ |
106 |
|
|
$ |
160 |
|
|
$ |
209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
| American Financial Group, Inc.
Earnings Per Share Summary (in millions, except per share
information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Core net operating earnings |
|
$ |
115 |
|
|
$ |
112 |
|
|
$ |
122 |
|
|
$ |
127 |
|
|
$ |
99 |
|
|
$ |
227 |
|
|
$ |
190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings |
|
$ |
141 |
|
|
$ |
19 |
|
|
$ |
127 |
|
|
$ |
116 |
|
|
$ |
106 |
|
|
$ |
160 |
|
|
$ |
209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average number of diluted shares |
|
|
89.503 |
|
|
|
89.377 |
|
|
|
89.772 |
|
|
|
90.873 |
|
|
|
91.593 |
|
|
|
89.440 |
|
|
|
91.607 |
|
| Diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core net operating earnings per share |
|
$ |
1.28 |
|
|
$ |
1.25 |
|
|
$ |
1.35 |
|
|
$ |
1.40 |
|
|
$ |
1.07 |
|
|
$ |
2.54 |
|
|
$ |
2.07 |
|
| Realized gains on securities |
|
|
— |
|
|
|
0.14 |
|
|
|
0.06 |
|
|
|
0.09 |
|
|
|
0.08 |
|
|
|
0.14 |
|
|
|
0.21 |
|
| Realized gain on sale of hotel property |
|
|
0.29 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.29 |
|
|
|
— |
|
| Loss on sale of subsidiaries |
|
|
— |
|
|
|
(1.18 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.18 |
) |
|
|
— |
|
| Significant A&E charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property and Casualty Insurance run-off operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.17 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Former Railroad and Manufacturing operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.04 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share |
|
$ |
1.57 |
|
|
$ |
0.21 |
|
|
$ |
1.41 |
|
|
$ |
1.28 |
|
|
$ |
1.15 |
|
|
$ |
1.79 |
|
|
$ |
2.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
| American Financial Group, Inc. Property and Casualty Insurance - Summary Underwriting Results (GAAP) ($ in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Property and Transportation |
|
$ |
(13 |
) |
|
$ |
7 |
|
|
$ |
22 |
|
|
$ |
11 |
|
|
$ |
(18 |
) |
|
$ |
(6 |
) |
|
$ |
(12 |
) |
| Specialty Casualty |
|
|
37 |
|
|
|
28 |
|
|
|
36 |
|
|
|
32 |
|
|
|
30 |
|
|
|
65 |
|
|
|
68 |
|
| Specialty Financial |
|
|
24 |
|
|
|
22 |
|
|
|
18 |
|
|
|
21 |
|
|
|
15 |
|
|
|
46 |
|
|
|
25 |
|
| Other Specialty |
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
|
|
6 |
|
|
|
2 |
|
|
|
6 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underwriting profit - Specialty |
|
|
51 |
|
|
|
60 |
|
|
|
79 |
|
|
|
70 |
|
|
|
29 |
|
|
|
111 |
|
|
|
88 |
|
| Other core charges, included in loss and LAE |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underwriting profit - Core |
|
|
50 |
|
|
|
60 |
|
|
|
79 |
|
|
|
70 |
|
|
|
29 |
|
|
|
110 |
|
|
|
87 |
|
| Special A&E charges, included in loss and LAE |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(24 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underwriting profit - Property and Casualty Insurance |
|
$ |
50 |
|
|
$ |
60 |
|
|
$ |
79 |
|
|
$ |
46 |
|
|
$ |
29 |
|
|
$ |
110 |
|
|
$ |
87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Included in results above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current accident year catastrophe losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Catastrophe reinstatement premium |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Catastrophe loss |
|
|
10 |
|
|
|
6 |
|
|
|
3 |
|
|
|
3 |
|
|
|
10 |
|
|
|
16 |
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current accident year catastrophe losses |
|
$ |
10 |
|
|
$ |
6 |
|
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
10 |
|
|
$ |
16 |
|
|
$ |
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Prior year loss reserve development (favorable) / adverse |
|
$ |
(10 |
) |
|
$ |
(7 |
) |
|
$ |
10 |
|
|
$ |
13 |
|
|
$ |
14 |
|
|
$ |
(17 |
) |
|
$ |
(17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property and Transportation |
|
|
104.0 |
% |
|
|
97.7 |
% |
|
|
94.6 |
% |
|
|
97.8 |
% |
|
|
105.5 |
% |
|
|
101.0 |
% |
|
|
102.0 |
% |
| Specialty Casualty |
|
|
92.7 |
% |
|
|
94.2 |
% |
|
|
92.9 |
% |
|
|
93.3 |
% |
|
|
93.6 |
% |
|
|
93.4 |
% |
|
|
91.2 |
% |
| Specialty Financial |
|
|
81.0 |
% |
|
|
81.7 |
% |
|
|
85.6 |
% |
|
|
81.6 |
% |
|
|
87.6 |
% |
|
|
81.4 |
% |
|
|
89.3 |
% |
| Other Specialty |
|
|
88.0 |
% |
|
|
89.3 |
% |
|
|
86.9 |
% |
|
|
78.0 |
% |
|
|
89.0 |
% |
|
|
88.6 |
% |
|
|
84.6 |
% |
| Combined ratio - Specialty |
|
|
94.9 |
% |
|
|
93.6 |
% |
|
|
92.6 |
% |
|
|
93.8 |
% |
|
|
96.9 |
% |
|
|
94.2 |
% |
|
|
94.7 |
% |
| Other core charges |
|
|
0.0 |
% |
|
|
0.1 |
% |
|
|
0.0 |
% |
|
|
0.1 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
| Special A&E charges |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
2.1 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio |
|
|
94.9 |
% |
|
|
93.7 |
% |
|
|
92.6 |
% |
|
|
96.0 |
% |
|
|
96.9 |
% |
|
|
94.2 |
% |
|
|
94.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio excl. catastrophe and prior year development |
|
|
95.0 |
% |
|
|
93.8 |
% |
|
|
91.4 |
% |
|
|
94.5 |
% |
|
|
94.4 |
% |
|
|
94.4 |
% |
|
|
94.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE components - property and casualty insurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current accident year, excluding catastrophe loss |
|
|
61.1 |
% |
|
|
61.0 |
% |
|
|
62.8 |
% |
|
|
67.8 |
% |
|
|
62.1 |
% |
|
|
61.1 |
% |
|
|
60.9 |
% |
| Prior accident year loss reserve development |
|
|
(1.1 |
%) |
|
|
(0.7 |
%) |
|
|
1.0 |
% |
|
|
1.2 |
% |
|
|
1.4 |
% |
|
|
(1.0 |
%) |
|
|
(1.0 |
%) |
| Current accident year catastrophe loss |
|
|
1.0 |
% |
|
|
0.6 |
% |
|
|
0.2 |
% |
|
|
0.3 |
% |
|
|
1.1 |
% |
|
|
0.8 |
% |
|
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE ratio |
|
|
61.0 |
% |
|
|
60.9 |
% |
|
|
64.0 |
% |
|
|
69.3 |
% |
|
|
64.6 |
% |
|
|
60.9 |
% |
|
|
61.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
|
|
|
| American Financial Group, Inc.
Specialty - Underwriting Results (GAAP) ($ in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Gross written premiums |
|
$ |
1,318 |
|
|
$ |
1,196 |
|
|
$ |
1,303 |
|
|
$ |
1,859 |
|
|
$ |
1,291 |
|
|
$ |
2,514 |
|
|
$ |
2,315 |
|
| Ceded reinsurance premiums |
|
|
(292 |
) |
|
|
(270 |
) |
|
|
(278 |
) |
|
|
(617 |
) |
|
|
(293 |
) |
|
|
(562 |
) |
|
|
(562 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net written premiums |
|
|
1,026 |
|
|
|
926 |
|
|
|
1,025 |
|
|
|
1,242 |
|
|
|
998 |
|
|
|
1,952 |
|
|
|
1,753 |
|
| Change in unearned premiums |
|
|
(41 |
) |
|
|
20 |
|
|
|
36 |
|
|
|
(110 |
) |
|
|
(67 |
) |
|
|
(21 |
) |
|
|
(68 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earned premiums |
|
|
985 |
|
|
|
946 |
|
|
|
1,061 |
|
|
|
1,132 |
|
|
|
931 |
|
|
|
1,931 |
|
|
|
1,685 |
|
| Loss and LAE |
|
|
600 |
|
|
|
576 |
|
|
|
679 |
|
|
|
760 |
|
|
|
602 |
|
|
|
1,176 |
|
|
|
1,030 |
|
| Underwriting expense |
|
|
334 |
|
|
|
310 |
|
|
|
303 |
|
|
|
302 |
|
|
|
300 |
|
|
|
644 |
|
|
|
567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underwriting profit |
|
$ |
51 |
|
|
$ |
60 |
|
|
$ |
79 |
|
|
$ |
70 |
|
|
$ |
29 |
|
|
$ |
111 |
|
|
$ |
88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Included in results above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current accident year catastrophe losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Catastrophe reinstatement premium |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Catastrophe loss |
|
|
10 |
|
|
|
6 |
|
|
|
3 |
|
|
|
3 |
|
|
|
10 |
|
|
|
16 |
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current accident year catastrophe losses |
|
$ |
10 |
|
|
$ |
6 |
|
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
10 |
|
|
$ |
16 |
|
|
$ |
22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Prior year loss reserve development (favorable) / adverse |
|
$ |
(11 |
) |
|
$ |
(7 |
) |
|
$ |
10 |
|
|
$ |
(11 |
) |
|
$ |
14 |
|
|
$ |
(18 |
) |
|
$ |
(18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE ratio |
|
|
61.0 |
% |
|
|
60.8 |
% |
|
|
64.0 |
% |
|
|
67.1 |
% |
|
|
64.6 |
% |
|
|
60.9 |
% |
|
|
61.1 |
% |
| Underwriting expense ratio |
|
|
33.9 |
% |
|
|
32.8 |
% |
|
|
28.6 |
% |
|
|
26.7 |
% |
|
|
32.3 |
% |
|
|
33.3 |
% |
|
|
33.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio |
|
|
94.9 |
% |
|
|
93.6 |
% |
|
|
92.6 |
% |
|
|
93.8 |
% |
|
|
96.9 |
% |
|
|
94.2 |
% |
|
|
94.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio excl. catastrophe and prior year development |
|
|
95.0 |
% |
|
|
93.8 |
% |
|
|
91.4 |
% |
|
|
94.5 |
% |
|
|
94.4 |
% |
|
|
94.4 |
% |
|
|
94.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current accident year, excluding catastrophe loss |
|
|
61.1 |
% |
|
|
61.0 |
% |
|
|
62.8 |
% |
|
|
67.8 |
% |
|
|
62.1 |
% |
|
|
61.1 |
% |
|
|
60.9 |
% |
| Prior accident year loss reserve development |
|
|
(1.1 |
%) |
|
|
(0.8 |
%) |
|
|
1.0 |
% |
|
|
(1.0 |
%) |
|
|
1.4 |
% |
|
|
(1.0 |
%) |
|
|
(1.1 |
%) |
| Current accident year catastrophe loss |
|
|
1.0 |
% |
|
|
0.6 |
% |
|
|
0.2 |
% |
|
|
0.3 |
% |
|
|
1.1 |
% |
|
|
0.8 |
% |
|
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE ratio |
|
|
61.0 |
% |
|
|
60.8 |
% |
|
|
64.0 |
% |
|
|
67.1 |
% |
|
|
64.6 |
% |
|
|
60.9 |
% |
|
|
61.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
| American Financial Group, Inc.
Property and Transportation - Underwriting Results (GAAP)
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Gross written premiums |
|
$ |
500 |
|
|
$ |
376 |
|
|
$ |
482 |
|
|
$ |
995 |
|
|
$ |
489 |
|
|
$ |
876 |
|
|
$ |
865 |
|
| Ceded reinsurance premiums |
|
|
(138 |
) |
|
|
(88 |
) |
|
|
(109 |
) |
|
|
(439 |
) |
|
|
(136 |
) |
|
|
(226 |
) |
|
|
(228 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net written premiums |
|
|
362 |
|
|
|
288 |
|
|
|
373 |
|
|
|
556 |
|
|
|
353 |
|
|
|
650 |
|
|
|
637 |
|
| Change in unearned premiums |
|
|
(35 |
) |
|
|
25 |
|
|
|
42 |
|
|
|
(52 |
) |
|
|
(29 |
) |
|
|
(10 |
) |
|
|
(12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earned premiums |
|
|
327 |
|
|
|
313 |
|
|
|
415 |
|
|
|
504 |
|
|
|
324 |
|
|
|
640 |
|
|
|
625 |
|
| Loss and LAE |
|
|
240 |
|
|
|
211 |
|
|
|
299 |
|
|
|
407 |
|
|
|
248 |
|
|
|
451 |
|
|
|
449 |
|
| Underwriting expense |
|
|
100 |
|
|
|
95 |
|
|
|
94 |
|
|
|
86 |
|
|
|
94 |
|
|
|
195 |
|
|
|
188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underwriting profit (loss) |
|
$ |
(13 |
) |
|
$ |
7 |
|
|
$ |
22 |
|
|
$ |
11 |
|
|
$ |
(18 |
) |
|
$ |
(6 |
) |
|
$ |
(12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Included in results above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current accident year catastrophe losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Catastrophe reinstatement premium |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Catastrophe loss |
|
|
7 |
|
|
|
4 |
|
|
|
2 |
|
|
|
1 |
|
|
|
8 |
|
|
|
11 |
|
|
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current accident year catastrophe losses |
|
$ |
7 |
|
|
$ |
4 |
|
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
8 |
|
|
$ |
11 |
|
|
$ |
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Prior year loss reserve development (favorable) / adverse |
|
$ |
6 |
|
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
(5 |
) |
|
$ |
22 |
|
|
$ |
9 |
|
|
$ |
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE ratio |
|
|
73.2 |
% |
|
|
67.5 |
% |
|
|
72.2 |
% |
|
|
80.7 |
% |
|
|
76.4 |
% |
|
|
70.5 |
% |
|
|
71.9 |
% |
| Underwriting expense ratio |
|
|
30.8 |
% |
|
|
30.2 |
% |
|
|
22.4 |
% |
|
|
17.1 |
% |
|
|
29.1 |
% |
|
|
30.5 |
% |
|
|
30.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio |
|
|
104.0 |
% |
|
|
97.7 |
% |
|
|
94.6 |
% |
|
|
97.8 |
% |
|
|
105.5 |
% |
|
|
101.0 |
% |
|
|
102.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio excl. catastrophe and prior year development |
|
|
100.2 |
% |
|
|
95.4 |
% |
|
|
93.7 |
% |
|
|
98.5 |
% |
|
|
96.2 |
% |
|
|
97.9 |
% |
|
|
96.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current accident year, excluding catastrophe loss |
|
|
69.4 |
% |
|
|
65.2 |
% |
|
|
71.3 |
% |
|
|
81.4 |
% |
|
|
67.1 |
% |
|
|
67.4 |
% |
|
|
66.3 |
% |
| Prior accident year loss reserve development |
|
|
1.7 |
% |
|
|
1.1 |
% |
|
|
0.6 |
% |
|
|
(0.9 |
%) |
|
|
6.6 |
% |
|
|
1.4 |
% |
|
|
2.9 |
% |
| Current accident year catastrophe loss |
|
|
2.1 |
% |
|
|
1.2 |
% |
|
|
0.3 |
% |
|
|
0.2 |
% |
|
|
2.7 |
% |
|
|
1.7 |
% |
|
|
2.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE ratio |
|
|
73.2 |
% |
|
|
67.5 |
% |
|
|
72.2 |
% |
|
|
80.7 |
% |
|
|
76.4 |
% |
|
|
70.5 |
% |
|
|
71.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
| American Financial Group, Inc.
Specialty Casualty - Underwriting Results (GAAP) ($ in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Gross written premiums |
|
$ |
661 |
|
|
$ |
683 |
|
|
$ |
660 |
|
|
$ |
707 |
|
|
$ |
655 |
|
|
$ |
1,344 |
|
|
$ |
1,162 |
|
| Ceded reinsurance premiums |
|
|
(158 |
) |
|
|
(182 |
) |
|
|
(162 |
) |
|
|
(171 |
) |
|
|
(156 |
) |
|
|
(340 |
) |
|
|
(332 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net written premiums |
|
|
503 |
|
|
|
501 |
|
|
|
498 |
|
|
|
536 |
|
|
|
499 |
|
|
|
1,004 |
|
|
|
830 |
|
| Change in unearned premiums |
|
|
— |
|
|
|
(11 |
) |
|
|
1 |
|
|
|
(50 |
) |
|
|
(32 |
) |
|
|
(11 |
) |
|
|
(50 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earned premiums |
|
|
503 |
|
|
|
490 |
|
|
|
499 |
|
|
|
486 |
|
|
|
467 |
|
|
|
993 |
|
|
|
780 |
|
| Loss and LAE |
|
|
311 |
|
|
|
316 |
|
|
|
325 |
|
|
|
310 |
|
|
|
300 |
|
|
|
627 |
|
|
|
472 |
|
| Underwriting expense |
|
|
155 |
|
|
|
146 |
|
|
|
138 |
|
|
|
144 |
|
|
|
137 |
|
|
|
301 |
|
|
|
240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underwriting profit |
|
$ |
37 |
|
|
$ |
28 |
|
|
$ |
36 |
|
|
$ |
32 |
|
|
$ |
30 |
|
|
$ |
65 |
|
|
$ |
68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Included in results above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current accident year catastrophe losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Catastrophe reinstatement premium |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Catastrophe loss |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current accident year catastrophe losses |
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Prior year loss reserve development (favorable) / adverse |
|
$ |
(7 |
) |
|
$ |
— |
|
|
$ |
14 |
|
|
$ |
7 |
|
|
$ |
(4 |
) |
|
$ |
(7 |
) |
|
$ |
(28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE ratio |
|
|
61.9 |
% |
|
|
64.4 |
% |
|
|
65.1 |
% |
|
|
63.7 |
% |
|
|
64.3 |
% |
|
|
63.1 |
% |
|
|
60.5 |
% |
| Underwriting expense ratio |
|
|
30.8 |
% |
|
|
29.8 |
% |
|
|
27.8 |
% |
|
|
29.6 |
% |
|
|
29.3 |
% |
|
|
30.3 |
% |
|
|
30.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio |
|
|
92.7 |
% |
|
|
94.2 |
% |
|
|
92.9 |
% |
|
|
93.3 |
% |
|
|
93.6 |
% |
|
|
93.4 |
% |
|
|
91.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio excl. catastrophe and prior year development |
|
|
94.0 |
% |
|
|
93.9 |
% |
|
|
89.9 |
% |
|
|
91.6 |
% |
|
|
94.3 |
% |
|
|
94.0 |
% |
|
|
94.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current accident year, excluding catastrophe loss |
|
|
63.2 |
% |
|
|
64.1 |
% |
|
|
62.1 |
% |
|
|
62.0 |
% |
|
|
65.0 |
% |
|
|
63.7 |
% |
|
|
63.9 |
% |
| Prior accident year loss reserve development |
|
|
(1.4 |
%) |
|
|
0.0 |
% |
|
|
2.9 |
% |
|
|
1.3 |
% |
|
|
(0.8 |
%) |
|
|
(0.8 |
%) |
|
|
(3.6 |
%) |
| Current accident year catastrophe loss |
|
|
0.1 |
% |
|
|
0.3 |
% |
|
|
0.1 |
% |
|
|
0.4 |
% |
|
|
0.1 |
% |
|
|
0.2 |
% |
|
|
0.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE ratio |
|
|
61.9 |
% |
|
|
64.4 |
% |
|
|
65.1 |
% |
|
|
63.7 |
% |
|
|
64.3 |
% |
|
|
63.1 |
% |
|
|
60.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9
|
|
|
| American Financial Group, Inc.
Specialty Financial - Underwriting Results (GAAP) ($ in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Gross written premiums |
|
$ |
157 |
|
|
$ |
137 |
|
|
$ |
160 |
|
|
$ |
157 |
|
|
$ |
147 |
|
|
$ |
294 |
|
|
$ |
288 |
|
| Ceded reinsurance premiums |
|
|
(21 |
) |
|
|
(22 |
) |
|
|
(29 |
) |
|
|
(36 |
) |
|
|
(27 |
) |
|
|
(43 |
) |
|
|
(52 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net written premiums |
|
|
136 |
|
|
|
115 |
|
|
|
131 |
|
|
|
121 |
|
|
|
120 |
|
|
|
251 |
|
|
|
236 |
|
| Change in unearned premiums |
|
|
(7 |
) |
|
|
5 |
|
|
|
(10 |
) |
|
|
(6 |
) |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earned premiums |
|
|
129 |
|
|
|
120 |
|
|
|
121 |
|
|
|
115 |
|
|
|
116 |
|
|
|
249 |
|
|
|
233 |
|
| Loss and LAE |
|
|
36 |
|
|
|
36 |
|
|
|
42 |
|
|
|
32 |
|
|
|
40 |
|
|
|
72 |
|
|
|
85 |
|
| Underwriting expense |
|
|
69 |
|
|
|
62 |
|
|
|
61 |
|
|
|
62 |
|
|
|
61 |
|
|
|
131 |
|
|
|
123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underwriting profit |
|
$ |
24 |
|
|
$ |
22 |
|
|
$ |
18 |
|
|
$ |
21 |
|
|
$ |
15 |
|
|
$ |
46 |
|
|
$ |
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Included in results above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current accident year catastrophe losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Catastrophe reinstatement premium |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Catastrophe loss |
|
|
2 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
3 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current accident year catastrophe losses |
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
3 |
|
|
$ |
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Prior year loss reserve development (favorable) / adverse |
|
$ |
(8 |
) |
|
$ |
(9 |
) |
|
$ |
(4 |
) |
|
$ |
(10 |
) |
|
$ |
(2 |
) |
|
$ |
(17 |
) |
|
$ |
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE ratio |
|
|
27.7 |
% |
|
|
30.4 |
% |
|
|
34.5 |
% |
|
|
27.7 |
% |
|
|
35.3 |
% |
|
|
29.0 |
% |
|
|
36.6 |
% |
| Underwriting expense ratio |
|
|
53.3 |
% |
|
|
51.3 |
% |
|
|
51.1 |
% |
|
|
53.9 |
% |
|
|
52.3 |
% |
|
|
52.4 |
% |
|
|
52.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio |
|
|
81.0 |
% |
|
|
81.7 |
% |
|
|
85.6 |
% |
|
|
81.6 |
% |
|
|
87.6 |
% |
|
|
81.4 |
% |
|
|
89.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio excl. catastrophe and prior year development |
|
|
85.2 |
% |
|
|
88.5 |
% |
|
|
88.8 |
% |
|
|
90.3 |
% |
|
|
88.6 |
% |
|
|
86.8 |
% |
|
|
89.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current accident year, excluding catastrophe loss |
|
|
31.9 |
% |
|
|
37.2 |
% |
|
|
37.7 |
% |
|
|
36.4 |
% |
|
|
36.3 |
% |
|
|
34.4 |
% |
|
|
36.7 |
% |
| Prior accident year loss reserve development |
|
|
(6.2 |
%) |
|
|
(7.3 |
%) |
|
|
(3.3 |
%) |
|
|
(9.0 |
%) |
|
|
(1.8 |
%) |
|
|
(6.7 |
%) |
|
|
(1.2 |
%) |
| Current accident year catastrophe loss |
|
|
2.0 |
% |
|
|
0.5 |
% |
|
|
0.1 |
% |
|
|
0.3 |
% |
|
|
0.8 |
% |
|
|
1.3 |
% |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE ratio |
|
|
27.7 |
% |
|
|
30.4 |
% |
|
|
34.5 |
% |
|
|
27.7 |
% |
|
|
35.3 |
% |
|
|
29.0 |
% |
|
|
36.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
|
| American Financial Group, Inc. Other
Specialty - Underwriting Results (GAAP) ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Gross written premiums |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Ceded reinsurance premiums |
|
|
25 |
|
|
|
22 |
|
|
|
22 |
|
|
|
29 |
|
|
|
26 |
|
|
|
47 |
|
|
|
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net written premiums |
|
|
25 |
|
|
|
22 |
|
|
|
23 |
|
|
|
29 |
|
|
|
26 |
|
|
|
47 |
|
|
|
50 |
|
| Change in unearned premiums |
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
|
2 |
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earned premiums |
|
|
26 |
|
|
|
23 |
|
|
|
26 |
|
|
|
27 |
|
|
|
24 |
|
|
|
49 |
|
|
|
47 |
|
| Loss and LAE |
|
|
13 |
|
|
|
13 |
|
|
|
13 |
|
|
|
11 |
|
|
|
14 |
|
|
|
26 |
|
|
|
24 |
|
| Underwriting expense |
|
|
10 |
|
|
|
7 |
|
|
|
10 |
|
|
|
10 |
|
|
|
8 |
|
|
|
17 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underwriting profit |
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
6 |
|
|
$ |
2 |
|
|
$ |
6 |
|
|
$ |
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Included in results above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current accident year catastrophe losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Catastrophe reinstatement premium |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Catastrophe loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total current accident year catastrophe losses |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Prior year loss reserve development (favorable) / adverse |
|
$ |
(2 |
) |
|
$ |
(1 |
) |
|
$ |
(3 |
) |
|
$ |
(3 |
) |
|
$ |
(2 |
) |
|
$ |
(3 |
) |
|
$ |
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss and LAE ratio |
|
|
52.4 |
% |
|
|
54.4 |
% |
|
|
49.6 |
% |
|
|
43.4 |
% |
|
|
53.2 |
% |
|
|
53.4 |
% |
|
|
49.6 |
% |
| Underwriting expense ratio |
|
|
35.6 |
% |
|
|
34.9 |
% |
|
|
37.3 |
% |
|
|
34.6 |
% |
|
|
35.8 |
% |
|
|
35.2 |
% |
|
|
35.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio |
|
|
88.0 |
% |
|
|
89.3 |
% |
|
|
86.9 |
% |
|
|
78.0 |
% |
|
|
89.0 |
% |
|
|
88.6 |
% |
|
|
84.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Combined ratio excl. catastrophe and prior year development |
|
|
93.2 |
% |
|
|
96.6 |
% |
|
|
97.4 |
% |
|
|
85.6 |
% |
|
|
97.1 |
% |
|
|
94.8 |
% |
|
|
94.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
|
|
|
| American Financial Group, Inc.
Annuity Earnings (GAAP) ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Net investment income |
|
$ |
306 |
|
|
$ |
292 |
|
|
$ |
285 |
|
|
$ |
287 |
|
|
$ |
289 |
|
|
$ |
598 |
|
|
$ |
564 |
|
| Guaranteed withdrawal benefit fees |
|
|
10 |
|
|
|
10 |
|
|
|
9 |
|
|
|
9 |
|
|
|
8 |
|
|
|
20 |
|
|
|
16 |
|
| Policy charges and other miscellaneous income |
|
|
12 |
|
|
|
14 |
|
|
|
12 |
|
|
|
11 |
|
|
|
11 |
|
|
|
26 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
328 |
|
|
|
316 |
|
|
|
306 |
|
|
|
307 |
|
|
|
308 |
|
|
|
644 |
|
|
|
601 |
|
| Annuity benefits expense |
|
|
151 |
|
|
|
184 |
|
|
|
157 |
|
|
|
157 |
|
|
|
166 |
|
|
|
335 |
|
|
|
334 |
|
| Acquisition expenses |
|
|
60 |
|
|
|
34 |
|
|
|
47 |
|
|
|
41 |
|
|
|
37 |
|
|
|
94 |
|
|
|
68 |
|
| Other expenses |
|
|
29 |
|
|
|
23 |
|
|
|
17 |
|
|
|
23 |
|
|
|
21 |
|
|
|
52 |
|
|
|
42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total costs and expenses |
|
|
240 |
|
|
|
241 |
|
|
|
221 |
|
|
|
221 |
|
|
|
224 |
|
|
|
481 |
|
|
|
444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core Annuity earnings before income taxes |
|
$ |
88 |
|
|
$ |
75 |
|
|
$ |
85 |
|
|
$ |
86 |
|
|
$ |
84 |
|
|
$ |
163 |
|
|
$ |
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Detail of core Annuity earnings before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core earnings before income taxes and impact of fair value accounting |
|
$ |
77 |
|
|
$ |
92 |
|
|
$ |
93 |
|
|
$ |
87 |
|
|
$ |
94 |
|
|
$ |
169 |
|
|
$ |
182 |
|
| Impact of fair value accounting (a) |
|
|
11 |
|
|
|
(17 |
) |
|
|
(8 |
) |
|
|
(1 |
) |
|
|
(10 |
) |
|
|
(6 |
) |
|
|
(25 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core Annuity earnings before income taxes |
|
$ |
88 |
|
|
$ |
75 |
|
|
$ |
85 |
|
|
$ |
86 |
|
|
$ |
84 |
|
|
$ |
163 |
|
|
$ |
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
Change in fair value of derivatives offset by the estimated related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs. |
12
|
|
|
| American Financial Group, Inc. Detail
of Annuity Benefits Expense (GAAP) ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Detail of annuity benefits expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest credited - fixed |
|
$ |
131 |
|
|
$ |
128 |
|
|
$ |
127 |
|
|
$ |
126 |
|
|
$ |
123 |
|
|
$ |
259 |
|
|
$ |
244 |
|
| Interest credited - fixed component of variable annuities |
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
|
3 |
|
| Change in expected death and annuitization reserve |
|
|
5 |
|
|
|
4 |
|
|
|
4 |
|
|
|
5 |
|
|
|
5 |
|
|
|
9 |
|
|
|
9 |
|
| Amortization of sales inducements |
|
|
7 |
|
|
|
7 |
|
|
|
6 |
|
|
|
7 |
|
|
|
6 |
|
|
|
14 |
|
|
|
13 |
|
| Guaranteed withdrawal benefit reserve |
|
|
16 |
|
|
|
12 |
|
|
|
11 |
|
|
|
12 |
|
|
|
10 |
|
|
|
28 |
|
|
|
18 |
|
| Change in other benefit reserves |
|
|
12 |
|
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
|
|
5 |
|
|
|
14 |
|
|
|
8 |
|
| Unlockings (a) |
|
|
— |
|
|
|
— |
|
|
|
(11 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal before impact of fair value accounting |
|
|
173 |
|
|
|
154 |
|
|
|
139 |
|
|
|
155 |
|
|
|
151 |
|
|
|
327 |
|
|
|
295 |
|
| Embedded derivative mark-to-market (b) |
|
|
(19 |
) |
|
|
50 |
|
|
|
87 |
|
|
|
21 |
|
|
|
78 |
|
|
|
31 |
|
|
|
132 |
|
| Equity option mark-to-market |
|
|
(3 |
) |
|
|
(20 |
) |
|
|
(69 |
) |
|
|
(19 |
) |
|
|
(63 |
) |
|
|
(23 |
) |
|
|
(93 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal impact of fair value accounting |
|
|
(22 |
) |
|
|
30 |
|
|
|
18 |
|
|
|
2 |
|
|
|
15 |
|
|
|
8 |
|
|
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total annuity benefits expense |
|
$ |
151 |
|
|
$ |
184 |
|
|
$ |
157 |
|
|
$ |
157 |
|
|
$ |
166 |
|
|
$ |
335 |
|
|
$ |
334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
Includes unlockings for fixed indexed annuity embedded derivative reserves, sales inducement asset and other reserves. Does not include unlocking charge of $10mm in the 4th quarter of 2014 for deferred policy
acquisition costs and unearned revenue reserves. These unlockings are included in acquisition expenses. In total AFG recorded an unlocking expense reduction of $1mm in the 4th quarter of 2014. |
| (b) |
Excludes unlocking impact of ($58) million in the 4th quarter of 2014. |
13
|
|
|
| American Financial Group, Inc. Net
Spread on Fixed Annuities (GAAP) ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Average fixed annuity investments (at amortized cost) |
|
$ |
24,711 |
|
|
$ |
23,943 |
|
|
$ |
23,334 |
|
|
$ |
22,730 |
|
|
$ |
22,098 |
|
|
$ |
24,327 |
|
|
$ |
21,750 |
|
| Average annuity benefits accumulated |
|
|
24,474 |
|
|
|
23,752 |
|
|
|
23,104 |
|
|
|
22,475 |
|
|
|
21,829 |
|
|
|
24,113 |
|
|
|
21,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in excess of annuity benefits accumulated |
|
$ |
237 |
|
|
$ |
191 |
|
|
$ |
230 |
|
|
$ |
255 |
|
|
$ |
269 |
|
|
$ |
214 |
|
|
$ |
302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As % of average annuity benefits accumulated (except as noted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (as % of investments) |
|
|
4.91 |
% |
|
|
4.83 |
% |
|
|
4.85 |
% |
|
|
5.01 |
% |
|
|
5.18 |
% |
|
|
4.87 |
% |
|
|
5.14 |
% |
| Interest credited |
|
|
(2.14 |
%) |
|
|
(2.16 |
%) |
|
|
(2.21 |
%) |
|
|
(2.24 |
%) |
|
|
(2.26 |
%) |
|
|
(2.15 |
%) |
|
|
(2.27 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest spread on fixed annuities |
|
|
2.77 |
% |
|
|
2.67 |
% |
|
|
2.64 |
% |
|
|
2.77 |
% |
|
|
2.92 |
% |
|
|
2.72 |
% |
|
|
2.87 |
% |
| Policy charges and other miscellaneous income |
|
|
0.13 |
% |
|
|
0.20 |
% |
|
|
0.14 |
% |
|
|
0.14 |
% |
|
|
0.14 |
% |
|
|
0.16 |
% |
|
|
0.14 |
% |
| Other annuity benefit expenses, net |
|
|
(0.49 |
%) |
|
|
(0.25 |
%) |
|
|
(0.20 |
%) |
|
|
(0.33 |
%) |
|
|
(0.33 |
%) |
|
|
(0.37 |
%) |
|
|
(0.29 |
%) |
| Acquisition expenses |
|
|
(0.94 |
%) |
|
|
(0.55 |
%) |
|
|
(0.61 |
%) |
|
|
(0.69 |
%) |
|
|
(0.64 |
%) |
|
|
(0.75 |
%) |
|
|
(0.60 |
%) |
| Other expenses |
|
|
(0.43 |
%) |
|
|
(0.36 |
%) |
|
|
(0.28 |
%) |
|
|
(0.37 |
%) |
|
|
(0.36 |
%) |
|
|
(0.39 |
%) |
|
|
(0.37 |
%) |
| Change in fair value of derivatives |
|
|
0.35 |
% |
|
|
(0.50 |
%) |
|
|
(0.31 |
%) |
|
|
(0.04 |
%) |
|
|
(0.27 |
%) |
|
|
(0.07 |
%) |
|
|
(0.37 |
%) |
| Unlockings |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.02 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net spread earned on fixed annuities - core |
|
|
1.39 |
% |
|
|
1.21 |
% |
|
|
1.40 |
% |
|
|
1.48 |
% |
|
|
1.46 |
% |
|
|
1.30 |
% |
|
|
1.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average annuity benefits accumulated |
|
$ |
24,474 |
|
|
$ |
23,752 |
|
|
$ |
23,104 |
|
|
$ |
22,475 |
|
|
$ |
21,829 |
|
|
$ |
24,113 |
|
|
$ |
21,448 |
|
| Net spread earned on fixed annuities |
|
|
1.39 |
% |
|
|
1.21 |
% |
|
|
1.40 |
% |
|
|
1.48 |
% |
|
|
1.46 |
% |
|
|
1.30 |
% |
|
|
1.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings on fixed annuity benefits accumulated |
|
$ |
85 |
|
|
$ |
72 |
|
|
$ |
81 |
|
|
$ |
83 |
|
|
$ |
80 |
|
|
$ |
157 |
|
|
$ |
148 |
|
| Investments in excess of annuity benefits accumulated |
|
$ |
237 |
|
|
$ |
191 |
|
|
$ |
230 |
|
|
$ |
255 |
|
|
$ |
269 |
|
|
$ |
214 |
|
|
$ |
302 |
|
| Net investment income (as % of investments) |
|
|
4.91 |
% |
|
|
4.83 |
% |
|
|
4.85 |
% |
|
|
5.01 |
% |
|
|
5.18 |
% |
|
|
4.87 |
% |
|
|
5.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings on investments in excess of annuity benefits accumulated |
|
$ |
3 |
|
|
$ |
2 |
|
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
5 |
|
|
$ |
8 |
|
| Variable annuity earnings |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings before income taxes - core |
|
$ |
88 |
|
|
$ |
75 |
|
|
$ |
85 |
|
|
$ |
86 |
|
|
$ |
84 |
|
|
$ |
163 |
|
|
$ |
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Detail of net spread earned on fixed annuities - core |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net spread earned core - before impact of fair value accounting |
|
|
1.21 |
% |
|
|
1.49 |
% |
|
|
1.54 |
% |
|
|
1.50 |
% |
|
|
1.64 |
% |
|
|
1.35 |
% |
|
|
1.61 |
% |
| Impact of fair value accounting (a) |
|
|
0.18 |
% |
|
|
(0.28 |
%) |
|
|
(0.14 |
%) |
|
|
(0.02 |
%) |
|
|
(0.18 |
%) |
|
|
(0.05 |
%) |
|
|
(0.23 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net spread earned core - after impact of fair value accounting |
|
|
1.39 |
% |
|
|
1.21 |
% |
|
|
1.40 |
% |
|
|
1.48 |
% |
|
|
1.46 |
% |
|
|
1.30 |
% |
|
|
1.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
Change in fair value of derivatives offset by the estimated related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs. |
14
|
|
|
| American Financial Group Annuity
Premiums (Statutory) ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six months ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Retail single premium annuities - indexed |
|
$ |
404 |
|
|
$ |
349 |
|
|
$ |
405 |
|
|
$ |
339 |
|
|
$ |
403 |
|
|
$ |
753 |
|
|
$ |
789 |
|
| Retail single premium annuities - fixed |
|
|
18 |
|
|
|
12 |
|
|
|
19 |
|
|
|
18 |
|
|
|
25 |
|
|
|
30 |
|
|
|
64 |
|
| Financial institutions single premium annuities - indexed |
|
|
369 |
|
|
|
356 |
|
|
|
426 |
|
|
|
333 |
|
|
|
364 |
|
|
|
725 |
|
|
|
730 |
|
| Financial institutions single premium annuities - fixed |
|
|
48 |
|
|
|
38 |
|
|
|
61 |
|
|
|
62 |
|
|
|
95 |
|
|
|
86 |
|
|
|
209 |
|
| Education market - fixed and indexed annuities |
|
|
49 |
|
|
|
47 |
|
|
|
49 |
|
|
|
46 |
|
|
|
49 |
|
|
|
96 |
|
|
|
99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal fixed annuity premiums |
|
|
888 |
|
|
|
802 |
|
|
|
960 |
|
|
|
798 |
|
|
|
936 |
|
|
|
1,690 |
|
|
|
1,891 |
|
| Variable annuities |
|
|
11 |
|
|
|
11 |
|
|
|
11 |
|
|
|
11 |
|
|
|
13 |
|
|
|
22 |
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total annuity premiums |
|
$ |
899 |
|
|
$ |
813 |
|
|
$ |
971 |
|
|
$ |
809 |
|
|
$ |
949 |
|
|
$ |
1,712 |
|
|
$ |
1,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15
|
|
|
| American Financial Group, Inc. Fixed
Annuity Benefits Accumulated (GAAP) ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Beginning fixed annuity reserves |
|
$ |
24,042 |
|
|
$ |
23,462 |
|
|
$ |
22,745 |
|
|
$ |
22,205 |
|
|
$ |
21,453 |
|
|
$ |
23,462 |
|
|
$ |
20,679 |
|
| Premiums |
|
|
888 |
|
|
|
802 |
|
|
|
960 |
|
|
|
798 |
|
|
|
936 |
|
|
|
1,690 |
|
|
|
1,891 |
|
| Federal Home Loan Bank advances |
|
|
300 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
300 |
|
|
|
— |
|
| Surrenders, benefits and other withdrawals |
|
|
(471 |
) |
|
|
(420 |
) |
|
|
(464 |
) |
|
|
(426 |
) |
|
|
(408 |
) |
|
|
(891 |
) |
|
|
(783 |
) |
| Interest and other annuity benefit expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest credited |
|
|
131 |
|
|
|
128 |
|
|
|
127 |
|
|
|
126 |
|
|
|
123 |
|
|
|
259 |
|
|
|
244 |
|
| Embedded derivative mark-to-market |
|
|
(19 |
) |
|
|
50 |
|
|
|
87 |
|
|
|
21 |
|
|
|
78 |
|
|
|
31 |
|
|
|
132 |
|
| Change in other benefit reserves |
|
|
35 |
|
|
|
20 |
|
|
|
18 |
|
|
|
21 |
|
|
|
23 |
|
|
|
55 |
|
|
|
42 |
|
| Unlockings |
|
|
— |
|
|
|
— |
|
|
|
(11 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending fixed annuity reserves |
|
$ |
24,906 |
|
|
$ |
24,042 |
|
|
$ |
23,462 |
|
|
$ |
22,745 |
|
|
$ |
22,205 |
|
|
$ |
24,906 |
|
|
$ |
22,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation to annuity benefits accumulated: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ending fixed annuity reserves |
|
$ |
24,906 |
|
|
$ |
24,042 |
|
|
$ |
23,462 |
|
|
$ |
22,745 |
|
|
$ |
22,205 |
|
|
$ |
24,906 |
|
|
$ |
22,205 |
|
| Impact of unrealized investment gains on reserves |
|
|
107 |
|
|
|
179 |
|
|
|
111 |
|
|
|
107 |
|
|
|
117 |
|
|
|
107 |
|
|
|
117 |
|
| Fixed component of variable annuities |
|
|
190 |
|
|
|
190 |
|
|
|
191 |
|
|
|
192 |
|
|
|
194 |
|
|
|
190 |
|
|
|
194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Annuity benefits accumulated per balance sheet |
|
$ |
25,203 |
|
|
$ |
24,411 |
|
|
$ |
23,764 |
|
|
$ |
23,044 |
|
|
$ |
22,516 |
|
|
$ |
25,203 |
|
|
$ |
22,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Annualized surrenders and other withdrawals as a % of beginning reserves |
|
|
7.8 |
% |
|
|
7.2 |
% |
|
|
8.2 |
% |
|
|
7.7 |
% |
|
|
7.6 |
% |
|
|
7.6 |
% |
|
|
7.6 |
% |
16
|
|
|
| American Financial Group, Inc.
Consolidated Balance Sheet ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
03/31/14 |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cash and investments |
|
$ |
37,644 |
|
|
$ |
37,384 |
|
|
$ |
36,210 |
|
|
$ |
35,151 |
|
|
$ |
34,843 |
|
|
$ |
32,727 |
|
| Recoverables from reinsurers |
|
|
3,075 |
|
|
|
3,046 |
|
|
|
3,238 |
|
|
|
3,134 |
|
|
|
3,107 |
|
|
|
2,969 |
|
| Prepaid reinsurance premiums |
|
|
499 |
|
|
|
475 |
|
|
|
469 |
|
|
|
587 |
|
|
|
489 |
|
|
|
438 |
|
| Agents’ balances and premiums receivable |
|
|
959 |
|
|
|
864 |
|
|
|
889 |
|
|
|
901 |
|
|
|
902 |
|
|
|
735 |
|
| Deferred policy acquisition costs |
|
|
965 |
|
|
|
756 |
|
|
|
821 |
|
|
|
858 |
|
|
|
806 |
|
|
|
890 |
|
| Assets of managed investment entities |
|
|
3,629 |
|
|
|
3,279 |
|
|
|
3,108 |
|
|
|
2,946 |
|
|
|
2,799 |
|
|
|
2,723 |
|
| Other receivables |
|
|
660 |
|
|
|
641 |
|
|
|
910 |
|
|
|
1,140 |
|
|
|
527 |
|
|
|
524 |
|
| Variable annuity assets (separate accounts) |
|
|
655 |
|
|
|
667 |
|
|
|
662 |
|
|
|
649 |
|
|
|
681 |
|
|
|
666 |
|
| Other assets |
|
|
1,137 |
|
|
|
994 |
|
|
|
1,027 |
|
|
|
985 |
|
|
|
1,001 |
|
|
|
913 |
|
| Goodwill |
|
|
201 |
|
|
|
201 |
|
|
|
201 |
|
|
|
201 |
|
|
|
200 |
|
|
|
185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
49,424 |
|
|
$ |
48,307 |
|
|
$ |
47,535 |
|
|
$ |
46,552 |
|
|
$ |
45,355 |
|
|
$ |
42,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unpaid losses and loss adjustment expenses |
|
$ |
7,744 |
|
|
$ |
7,636 |
|
|
$ |
7,872 |
|
|
$ |
7,645 |
|
|
$ |
7,370 |
|
|
$ |
6,134 |
|
| Unearned premiums |
|
|
2,004 |
|
|
|
1,936 |
|
|
|
1,956 |
|
|
|
2,114 |
|
|
|
1,911 |
|
|
|
1,788 |
|
| Annuity benefits accumulated |
|
|
25,203 |
|
|
|
24,411 |
|
|
|
23,764 |
|
|
|
23,044 |
|
|
|
22,516 |
|
|
|
21,744 |
|
| Life, accident and health reserves |
|
|
2,156 |
|
|
|
2,195 |
|
|
|
2,175 |
|
|
|
2,098 |
|
|
|
2,082 |
|
|
|
2,039 |
|
| Payable to reinsurers |
|
|
511 |
|
|
|
494 |
|
|
|
645 |
|
|
|
673 |
|
|
|
445 |
|
|
|
400 |
|
| Liabilities of managed investment entities |
|
|
3,309 |
|
|
|
2,952 |
|
|
|
2,819 |
|
|
|
2,625 |
|
|
|
2,499 |
|
|
|
2,413 |
|
| Long-term debt |
|
|
1,024 |
|
|
|
1,061 |
|
|
|
1,061 |
|
|
|
1,062 |
|
|
|
912 |
|
|
|
913 |
|
| Variable annuity liabilities (separate accounts) |
|
|
655 |
|
|
|
667 |
|
|
|
662 |
|
|
|
649 |
|
|
|
681 |
|
|
|
666 |
|
| Other liabilities |
|
|
1,834 |
|
|
|
1,855 |
|
|
|
1,527 |
|
|
|
1,564 |
|
|
|
1,781 |
|
|
|
1,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
$ |
44,440 |
|
|
$ |
43,207 |
|
|
$ |
42,481 |
|
|
$ |
41,474 |
|
|
$ |
40,197 |
|
|
$ |
37,797 |
|
| Shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock |
|
$ |
88 |
|
|
$ |
88 |
|
|
$ |
88 |
|
|
$ |
88 |
|
|
$ |
90 |
|
|
$ |
90 |
|
| Capital surplus |
|
|
1,183 |
|
|
|
1,173 |
|
|
|
1,152 |
|
|
|
1,150 |
|
|
|
1,152 |
|
|
|
1,138 |
|
| Appropriated retained earnings |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
2 |
|
|
|
31 |
|
|
|
49 |
|
| Unappropriated retained earnings |
|
|
2,968 |
|
|
|
2,886 |
|
|
|
2,914 |
|
|
|
2,946 |
|
|
|
2,913 |
|
|
|
2,842 |
|
| Unrealized gains - fixed maturities |
|
|
457 |
|
|
|
656 |
|
|
|
604 |
|
|
|
602 |
|
|
|
656 |
|
|
|
556 |
|
| Unrealized gains - equities |
|
|
130 |
|
|
|
143 |
|
|
|
139 |
|
|
|
124 |
|
|
|
149 |
|
|
|
129 |
|
| Other comprehensive income, net of tax |
|
|
(24 |
) |
|
|
(23 |
) |
|
|
(16 |
) |
|
|
(8 |
) |
|
|
(6 |
) |
|
|
(8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total shareholders’ equity |
|
|
4,802 |
|
|
|
4,923 |
|
|
|
4,879 |
|
|
|
4,904 |
|
|
|
4,985 |
|
|
|
4,796 |
|
| Noncontrolling interests |
|
|
182 |
|
|
|
177 |
|
|
|
175 |
|
|
|
174 |
|
|
|
173 |
|
|
|
177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and equity |
|
$ |
49,424 |
|
|
$ |
48,307 |
|
|
$ |
47,535 |
|
|
$ |
46,552 |
|
|
$ |
45,355 |
|
|
$ |
42,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17
|
|
|
| American Financial Group, Inc. Book
Value Per Share and Price / Book Summary (in millions, except per share information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
03/31/14 |
|
| Shareholders’ equity |
|
$ |
4,802 |
|
|
$ |
4,923 |
|
|
$ |
4,879 |
|
|
$ |
4,904 |
|
|
$ |
4,985 |
|
|
$ |
4,796 |
|
| Appropriated retained earnings |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
(31 |
) |
|
|
(49 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders’ equity, excluding appropriated retained earnings |
|
|
4,802 |
|
|
|
4,923 |
|
|
|
4,881 |
|
|
|
4,902 |
|
|
|
4,954 |
|
|
|
4,747 |
|
| Unrealized (gains) on fixed maturities |
|
|
(457 |
) |
|
|
(656 |
) |
|
|
(604 |
) |
|
|
(602 |
) |
|
|
(656 |
) |
|
|
(556 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted shareholders’ equity |
|
|
4,345 |
|
|
|
4,267 |
|
|
|
4,277 |
|
|
|
4,300 |
|
|
|
4,298 |
|
|
|
4,191 |
|
| Goodwill |
|
|
(201 |
) |
|
|
(201 |
) |
|
|
(201 |
) |
|
|
(201 |
) |
|
|
(200 |
) |
|
|
(185 |
) |
| Intangibles |
|
|
(53 |
) |
|
|
(55 |
) |
|
|
(57 |
) |
|
|
(63 |
) |
|
|
(66 |
) |
|
|
(27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible adjusted shareholders’ equity |
|
$ |
4,091 |
|
|
$ |
4,011 |
|
|
$ |
4,019 |
|
|
$ |
4,036 |
|
|
$ |
4,032 |
|
|
$ |
3,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares outstanding |
|
|
87.540 |
|
|
|
87.886 |
|
|
|
87.709 |
|
|
|
88.491 |
|
|
|
89.618 |
|
|
|
89.589 |
|
| Book value per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Excluding appropriated retained earnings (a) |
|
$ |
54.86 |
|
|
$ |
56.01 |
|
|
$ |
55.65 |
|
|
$ |
55.39 |
|
|
$ |
55.27 |
|
|
$ |
52.99 |
|
| Adjusted (b) |
|
|
49.63 |
|
|
|
48.55 |
|
|
|
48.76 |
|
|
|
48.59 |
|
|
|
47.95 |
|
|
|
46.79 |
|
| Tangible, adjusted (c) |
|
|
46.73 |
|
|
|
45.63 |
|
|
|
45.82 |
|
|
|
45.61 |
|
|
|
44.99 |
|
|
|
44.42 |
|
| Market capitalization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AFG’s closing common share price |
|
$ |
65.04 |
|
|
$ |
64.15 |
|
|
$ |
60.72 |
|
|
$ |
57.89 |
|
|
$ |
59.56 |
|
|
$ |
57.71 |
|
| Market capitalization |
|
$ |
5,694 |
|
|
$ |
5,638 |
|
|
$ |
5,326 |
|
|
$ |
5,123 |
|
|
$ |
5,338 |
|
|
$ |
5,170 |
|
| Price / Adjusted book value ratio |
|
|
1.31 |
|
|
|
1.32 |
|
|
|
1.25 |
|
|
|
1.19 |
|
|
|
1.24 |
|
|
|
1.23 |
|
| (a) |
Excludes appropriated retained earnings. |
| (b) |
Excludes appropriated retained earnings and unrealized gains related to fixed maturity investments. |
| (c) |
Excludes appropriated retained earnings, unrealized gains related to fixed maturity investments, goodwill and intangibles. |
18
|
|
|
| American Financial Group, Inc.
Capitalization ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
03/31/14 |
|
| AFG senior obligations |
|
$ |
840 |
|
|
$ |
840 |
|
|
$ |
840 |
|
|
$ |
840 |
|
|
$ |
840 |
|
|
$ |
840 |
|
| Borrowings drawn under credit facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Obligations of subsidiaries - other |
|
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debt excluding subordinated debt & debt secured by real estate |
|
$ |
852 |
|
|
$ |
852 |
|
|
$ |
852 |
|
|
$ |
852 |
|
|
$ |
852 |
|
|
$ |
852 |
|
| AFG subordinated debentures |
|
|
150 |
|
|
|
150 |
|
|
|
150 |
|
|
|
150 |
|
|
|
— |
|
|
|
— |
|
| Obligations of subsidiaries - secured by real estate |
|
|
22 |
|
|
|
59 |
|
|
|
59 |
|
|
|
60 |
|
|
|
60 |
|
|
|
61 |
|
| Payable to subsidiary trusts - subordinated |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Long-term debt |
|
$ |
1,024 |
|
|
$ |
1,061 |
|
|
$ |
1,061 |
|
|
$ |
1,062 |
|
|
$ |
912 |
|
|
$ |
913 |
|
| Shareholders’ equity |
|
|
4,802 |
|
|
|
4,923 |
|
|
|
4,879 |
|
|
|
4,904 |
|
|
|
4,985 |
|
|
|
4,796 |
|
| Noncontrolling interests |
|
|
182 |
|
|
|
177 |
|
|
|
175 |
|
|
|
174 |
|
|
|
173 |
|
|
|
177 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Appropriated retained earnings |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
(31 |
) |
|
|
(49 |
) |
| Unrealized gains related to fixed maturity investments |
|
|
(457 |
) |
|
|
(656 |
) |
|
|
(604 |
) |
|
|
(602 |
) |
|
|
(656 |
) |
|
|
(556 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total adjusted capital |
|
$ |
5,551 |
|
|
$ |
5,505 |
|
|
$ |
5,513 |
|
|
$ |
5,536 |
|
|
$ |
5,383 |
|
|
$ |
5,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Obligations of subsidiaries - secured by real estate |
|
|
(22 |
) |
|
|
(59 |
) |
|
|
(59 |
) |
|
|
(60 |
) |
|
|
(60 |
) |
|
|
(61 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total adjusted capital excluding obligations secured by real estate |
|
$ |
5,529 |
|
|
$ |
5,446 |
|
|
$ |
5,454 |
|
|
$ |
5,476 |
|
|
$ |
5,323 |
|
|
$ |
5,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratio of debt to total adjusted capital: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Including subordinated debt & debt secured by real estate |
|
|
18.4 |
% |
|
|
19.3 |
% |
|
|
19.2 |
% |
|
|
19.2 |
% |
|
|
16.9 |
% |
|
|
17.3 |
% |
| Excluding subordinated debt & debt secured by real estate |
|
|
15.4 |
% |
|
|
15.6 |
% |
|
|
15.6 |
% |
|
|
15.6 |
% |
|
|
16.0 |
% |
|
|
16.3 |
% |
19
|
|
|
| American Financial Group, Inc.
Additional Supplemental Information ($ in
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six months ended |
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
06/30/15 |
|
|
06/30/14 |
|
| Property and Casualty Insurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Paid Losses (GAAP) |
|
$ |
526 |
|
|
$ |
617 |
|
|
$ |
562 |
|
|
$ |
528 |
|
|
$ |
530 |
|
|
$ |
1,143 |
|
|
$ |
1,040 |
|
|
|
|
|
|
|
|
|
| |
|
06/30/15 |
|
|
03/31/15 |
|
|
12/31/14 |
|
|
09/30/14 |
|
|
06/30/14 |
|
|
03/31/14 |
|
|
|
|
| Statutory Surplus |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property and Casualty Insurance |
|
$ |
2,399 |
|
|
$ |
2,340 |
|
|
$ |
2,286 |
|
|
$ |
2,206 |
|
|
$ |
2,227 |
|
|
$ |
1,981 |
|
|
|
|
|
| AFG’s principal annuity subsidiaries (total adjusted capital) |
|
$ |
1,911 |
|
|
$ |
1,861 |
|
|
$ |
1,822 |
|
|
$ |
1,818 |
|
|
$ |
1,751 |
|
|
$ |
1,688 |
|
|
|
|
|
| Allowable dividends without regulatory approval |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property and Casualty Insurance |
|
$ |
315 |
|
|
$ |
315 |
|
|
$ |
315 |
|
|
$ |
335 |
|
|
$ |
335 |
|
|
$ |
335 |
|
|
|
|
|
| Annuity and Run-off |
|
|
358 |
|
|
|
358 |
|
|
|
358 |
|
|
|
275 |
|
|
|
275 |
|
|
|
275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
673 |
|
|
$ |
673 |
|
|
$ |
673 |
|
|
$ |
610 |
|
|
$ |
610 |
|
|
$ |
610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
|
|
|
| American Financial Group, Inc. Total
Cash and Investments and Quarterly Net Investment Income June 30, 2015
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Carrying Value |
|
| |
|
Property and
Casualty
Insurance |
|
|
Annuity and
Run-off* |
|
|
Other |
|
|
Consolidate
CLOs |
|
|
Total AFG
Consolidated |
|
|
% of
Investment
Portfolio |
|
| Total cash and investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
730 |
|
|
$ |
236 |
|
|
$ |
250 |
|
|
$ |
— |
|
|
$ |
1,216 |
|
|
|
3 |
% |
| Fixed maturities - Available for sale |
|
|
6,643 |
|
|
|
25,603 |
|
|
|
14 |
|
|
|
— |
|
|
|
32,260 |
|
|
|
86 |
% |
| Fixed maturities - Trading |
|
|
156 |
|
|
|
123 |
|
|
|
— |
|
|
|
— |
|
|
|
279 |
|
|
|
1 |
% |
| Equity securities |
|
|
1,156 |
|
|
|
503 |
|
|
|
45 |
|
|
|
— |
|
|
|
1,704 |
|
|
|
4 |
% |
| Policy loans |
|
|
— |
|
|
|
223 |
|
|
|
— |
|
|
|
— |
|
|
|
223 |
|
|
|
1 |
% |
| Mortgage loans |
|
|
215 |
|
|
|
839 |
|
|
|
— |
|
|
|
— |
|
|
|
1,054 |
|
|
|
3 |
% |
| Real estate and other investments |
|
|
419 |
|
|
|
790 |
|
|
|
18 |
|
|
|
(319 |
) |
|
|
908 |
|
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cash and investments |
|
$ |
9,319 |
|
|
$ |
28,317 |
|
|
$ |
327 |
|
|
$ |
(319 |
) |
|
$ |
37,644 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
Total cash and investments in Annuity and Run-off segment includes $1.37 billion in cash and investments held by AFG’s two long-term care insurance subsidiaries, which are being sold. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Property and
Casualty
Insurance |
|
|
Annuity and
Run-off |
|
|
Other |
|
|
Consolidate
CLOs |
|
|
Total AFG
Consolidated |
|
| Total quarterly net investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed maturities - Available for sale |
|
$ |
62 |
|
|
$ |
297 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
359 |
|
| Fixed maturities - Trading |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
| Equity securities |
|
|
12 |
|
|
|
6 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
17 |
|
| Equity in investees |
|
|
3 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
| Other investments |
|
|
8 |
|
|
|
23 |
|
|
|
— |
|
|
|
(5 |
) |
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross investment income |
|
|
85 |
|
|
|
329 |
|
|
|
(1 |
) |
|
|
(5 |
) |
|
|
408 |
|
| Investment expenses |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net investment income |
|
$ |
83 |
|
|
$ |
327 |
|
|
$ |
(1 |
) |
|
$ |
(5 |
) |
|
$ |
404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Equity Securities |
|
| |
|
Cost |
|
|
Fair
Value |
|
|
Unrealized
Gain (Loss) |
|
| Annuity and Run-off |
|
$ |
456 |
|
|
$ |
503 |
|
|
$ |
47 |
|
| Property and Casualty Insurance |
|
|
1,000 |
|
|
|
1,156 |
|
|
|
156 |
|
| Other |
|
|
45 |
|
|
|
45 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total AFG consolidated |
|
$ |
1,501 |
|
|
$ |
1,704 |
|
|
$ |
203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21
|
|
|
| American Financial Group, Inc. Fixed
Maturities - By Security Type - AFG Consolidated June 30, 2015
($ in millions ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Amortized
Cost |
|
|
Fair Value |
|
|
Unrealized
Gain (Loss) |
|
|
% of
Fair Value |
|
|
% of
Investment
Portfolio |
|
| US Government and government agencies |
|
$ |
371 |
|
|
$ |
376 |
|
|
$ |
5 |
|
|
|
1 |
% |
|
|
1 |
% |
| States, municipalities and political subdivisions |
|
|
6,899 |
|
|
|
7,110 |
|
|
|
211 |
|
|
|
22 |
% |
|
|
19 |
% |
| Foreign government |
|
|
262 |
|
|
|
272 |
|
|
|
10 |
|
|
|
1 |
% |
|
|
1 |
% |
| Residential mortgage-backed securities |
|
|
3,762 |
|
|
|
4,120 |
|
|
|
358 |
|
|
|
13 |
% |
|
|
11 |
% |
| Commercial mortgage-backed securities |
|
|
2,207 |
|
|
|
2,326 |
|
|
|
119 |
|
|
|
7 |
% |
|
|
6 |
% |
| Asset-backed securities |
|
|
4,356 |
|
|
|
4,384 |
|
|
|
28 |
|
|
|
13 |
% |
|
|
12 |
% |
| Corporate bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Manufacturing |
|
|
2,501 |
|
|
|
2,600 |
|
|
|
99 |
|
|
|
8 |
% |
|
|
7 |
% |
| Banks, lending and credit institutions |
|
|
3,038 |
|
|
|
3,129 |
|
|
|
91 |
|
|
|
10 |
% |
|
|
8 |
% |
| Gas and electric services |
|
|
1,330 |
|
|
|
1,424 |
|
|
|
94 |
|
|
|
4 |
% |
|
|
4 |
% |
| Insurance and insurance related |
|
|
979 |
|
|
|
1,029 |
|
|
|
50 |
|
|
|
3 |
% |
|
|
3 |
% |
| Other corporate |
|
|
5,579 |
|
|
|
5,769 |
|
|
|
190 |
|
|
|
18 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total AFG consolidated |
|
$ |
31,284 |
|
|
$ |
32,539 |
|
|
$ |
1,255 |
|
|
|
100 |
% |
|
|
87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Annuity and Run-off |
|
$ |
24,642 |
|
|
$ |
25,726 |
|
|
|
1,084 |
|
|
|
79 |
% |
|
|
69 |
% |
| Property and Casualty Insurance |
|
|
6,639 |
|
|
|
6,799 |
|
|
|
160 |
|
|
|
21 |
% |
|
|
18 |
% |
| Other |
|
|
3 |
|
|
|
14 |
|
|
|
11 |
|
|
|
0 |
% |
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total AFG consolidated |
|
$ |
31,284 |
|
|
$ |
32,539 |
|
|
$ |
1,255 |
|
|
|
100 |
% |
|
|
87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Annualized yield on available for sale fixed maturities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Excluding investment expense (a) |
|
|
4.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net of investment expense (a) |
|
|
4.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Approximate average life and duration: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Approximate average life |
|
|
6.5 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Approximate duration |
|
|
5 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
Annualized yield is calculated by dividing investment income for the quarter by the average cost over the quarter. |
Average cost is the average of the beginning and ending quarter asset balances.
22
|
|
|
| American Financial Group, Inc. Fixed
Maturities - By Security Type Portfolio June 30, 2015
($ in millions ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Amortized
Cost |
|
|
Fair Value |
|
|
Unrealized
Gain (Loss) |
|
|
% of
Fair Value |
|
| Annuity and Run-off: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| US Government and government agencies |
|
$ |
83 |
|
|
$ |
84 |
|
|
$ |
1 |
|
|
|
0 |
% |
| States, municipalities and political subdivisions |
|
|
4,140 |
|
|
|
4,287 |
|
|
|
147 |
|
|
|
17 |
% |
| Foreign government |
|
|
17 |
|
|
|
20 |
|
|
|
3 |
|
|
|
0 |
% |
| Residential mortgage-backed securities |
|
|
2,807 |
|
|
|
3,100 |
|
|
|
293 |
|
|
|
12 |
% |
| Commercial mortgage-backed securities |
|
|
1,986 |
|
|
|
2,098 |
|
|
|
112 |
|
|
|
8 |
% |
| Asset-backed securities |
|
|
3,092 |
|
|
|
3,116 |
|
|
|
24 |
|
|
|
12 |
% |
| Corporate debt |
|
|
12,517 |
|
|
|
13,021 |
|
|
|
504 |
|
|
|
51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Annuity and Run-off |
|
$ |
24,642 |
|
|
$ |
25,726 |
|
|
$ |
1,084 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Annualized yield on available for sale fixed maturities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Excluding investment expense (a) |
|
|
4.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Net of investment expense (a) |
|
|
4.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Approximate average life and duration: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Approximate average life |
|
|
7 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Approximate duration |
|
|
5 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Amortized
Cost |
|
|
Fair Value |
|
|
Unrealized
Gain (Loss) |
|
|
% of Fair
Value |
|
| Property and Casualty Insurance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| US Government and government agencies |
|
$ |
286 |
|
|
$ |
290 |
|
|
$ |
4 |
|
|
|
4 |
% |
| States, municipalities and political subdivisions |
|
|
2,759 |
|
|
|
2,823 |
|
|
|
64 |
|
|
|
41 |
% |
| Foreign government |
|
|
245 |
|
|
|
252 |
|
|
|
7 |
|
|
|
4 |
% |
| Residential mortgage-backed securities |
|
|
954 |
|
|
|
1,008 |
|
|
|
54 |
|
|
|
15 |
% |
| Commercial mortgage-backed securities |
|
|
221 |
|
|
|
228 |
|
|
|
7 |
|
|
|
3 |
% |
| Asset-backed securities |
|
|
1,264 |
|
|
|
1,268 |
|
|
|
4 |
|
|
|
19 |
% |
| Corporate debt |
|
|
910 |
|
|
|
930 |
|
|
|
20 |
|
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property and Casualty Insurance |
|
$ |
6,639 |
|
|
$ |
6,799 |
|
|
$ |
160 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Annualized yield on available for sale fixed maturities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Excluding investment expense (a) |
|
|
3.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Net of investment expense (a) |
|
|
3.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Tax equivalent, net of investment expense (b) |
|
|
4.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Approximate average life and duration: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Approximate average life |
|
|
5 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Approximate duration |
|
|
3.5 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
Annualized yield is calculated by dividing investment income for the quarter by the average cost over the quarter. Average cost is the average of the beginning and ending quarter asset balances. |
| (b) |
Adjusts the yield on tax-exempt bonds to the fully taxable equivalent yield. |
23
|
|
|
| American Financial Group, Inc. Fixed
Maturities - Credit Rating and NAIC Designation June 30, 2015
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
GAAP Data |
|
| By Credit Rating |
|
Amortized
Cost |
|
|
Fair Value |
|
|
Unrealized
Gain (Loss) |
|
|
% of
Fair Value |
|
| Investment grade |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AAA |
|
$ |
6,637 |
|
|
$ |
6,814 |
|
|
$ |
177 |
|
|
|
21 |
% |
| AA |
|
|
6,636 |
|
|
|
6,819 |
|
|
|
183 |
|
|
|
21 |
% |
| A |
|
|
8,016 |
|
|
|
8,345 |
|
|
|
329 |
|
|
|
26 |
% |
| BBB |
|
|
6,121 |
|
|
|
6,361 |
|
|
|
240 |
|
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal - Investment grade |
|
|
27,410 |
|
|
|
28,339 |
|
|
|
929 |
|
|
|
87 |
% |
| BB |
|
|
816 |
|
|
|
844 |
|
|
|
28 |
|
|
|
3 |
% |
| B |
|
|
415 |
|
|
|
422 |
|
|
|
7 |
|
|
|
1 |
% |
| Other |
|
|
2,643 |
|
|
|
2,934 |
|
|
|
291 |
|
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
31,284 |
|
|
$ |
32,539 |
|
|
$ |
1,255 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a
security, the rating displayed is the second lowest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Statutory Data |
|
| By NAIC Designation |
|
Carrying
Value |
|
|
% of Carrying
Value |
|
|
Amortized
Cost |
|
|
Fair Value |
|
|
Unrealized
Gain (Loss) |
|
| NAIC 1 |
|
$ |
23,882 |
|
|
|
77 |
% |
|
$ |
23,882 |
|
|
$ |
24,884 |
|
|
$ |
1,002 |
|
| NAIC 2 |
|
|
6,219 |
|
|
|
20 |
% |
|
|
6,219 |
|
|
|
6,450 |
|
|
|
231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,101 |
|
|
|
97 |
% |
|
|
30,101 |
|
|
|
31,334 |
|
|
|
1,233 |
|
| NAIC 3 |
|
|
656 |
|
|
|
2 |
% |
|
|
657 |
|
|
|
677 |
|
|
|
20 |
|
| NAIC 4 |
|
|
158 |
|
|
|
1 |
% |
|
|
159 |
|
|
|
160 |
|
|
|
1 |
|
| NAIC 5 |
|
|
61 |
|
|
|
0 |
% |
|
|
63 |
|
|
|
72 |
|
|
|
9 |
|
| NAIC 6 |
|
|
37 |
|
|
|
0 |
% |
|
|
40 |
|
|
|
54 |
|
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
31,013 |
|
|
|
100 |
% |
|
$ |
31,020 |
|
|
$ |
32,297 |
|
|
$ |
1,277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24
|
|
|
| American Financial Group, Inc.
Mortgage-Backed Securities - AFG Consolidated
June 30, 2015 ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| By Asset Type |
|
Amortized
Cost |
|
|
Fair Value |
|
|
Unrealized
Gain (Loss) |
|
|
% of
Fair Value |
|
|
% of
Investment
Portfolio |
|
| Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Agency |
|
$ |
310 |
|
|
$ |
319 |
|
|
$ |
9 |
|
|
|
5 |
% |
|
|
1 |
% |
| Prime (Non-Agency) |
|
|
1,743 |
|
|
|
1,930 |
|
|
|
187 |
|
|
|
30 |
% |
|
|
5 |
% |
| Alt-A |
|
|
886 |
|
|
|
985 |
|
|
|
99 |
|
|
|
15 |
% |
|
|
3 |
% |
| Subprime |
|
|
823 |
|
|
|
886 |
|
|
|
63 |
|
|
|
14 |
% |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal - Residential |
|
|
3,762 |
|
|
|
4,120 |
|
|
|
358 |
|
|
|
64 |
% |
|
|
11 |
% |
| Commercial |
|
|
2,207 |
|
|
|
2,326 |
|
|
|
119 |
|
|
|
36 |
% |
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total AFG consolidated |
|
$ |
5,969 |
|
|
$ |
6,446 |
|
|
$ |
477 |
|
|
|
100 |
% |
|
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Annuity and Run-off |
|
$ |
4,793 |
|
|
$ |
5,198 |
|
|
$ |
405 |
|
|
|
81 |
% |
|
|
14 |
% |
| Property and Casualty Insurance |
|
|
1,175 |
|
|
|
1,236 |
|
|
|
61 |
|
|
|
19 |
% |
|
|
3 |
% |
| Other |
|
|
1 |
|
|
|
12 |
|
|
|
11 |
|
|
|
0 |
% |
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total AFG consolidated |
|
$ |
5,969 |
|
|
$ |
6,446 |
|
|
$ |
477 |
|
|
|
100 |
% |
|
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| • |
|
Substantially all of AFG’s MBS securities are either senior tranches of securitizations or collateralized by senior tranches of securitizations. |
| • |
|
The average amortized cost as a percent of par is—Prime 83%; Alt-A 78%; Subprime 86%; CMBS 99%. |
| • |
|
The average FICO score of our residential MBS securities is—Prime 740; Alt-A 712; Subprime 638. |
| • |
|
99.7% of our Commercial MBS portfolio is investment-grade rated (84% AAA) and the average subordination for this group of assets is 39%. |
| • |
|
The approximate average life by collateral type is—Residential 5.0 years; Commercial 3.5 years. |
25
|
|
|
| American Financial Group, Inc.
Mortgage-Backed Securities Portfolio June 30,
2015 ($ in millions) |
|
|
Annuity and Run-off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
% of |
|
| By Asset Type |
|
Amortized
Cost |
|
|
Fair Value |
|
|
Unrealized
Gain (Loss) |
|
|
% of
Fair Value |
|
|
Investment
Portfolio |
|
| Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Agency |
|
$ |
140 |
|
|
$ |
146 |
|
|
$ |
6 |
|
|
|
3 |
% |
|
|
1 |
% |
| Prime (Non-Agency) |
|
|
1,506 |
|
|
|
1,667 |
|
|
|
161 |
|
|
|
32 |
% |
|
|
6 |
% |
| Alt-A |
|
|
649 |
|
|
|
728 |
|
|
|
79 |
|
|
|
14 |
% |
|
|
3 |
% |
| Subprime |
|
|
512 |
|
|
|
559 |
|
|
|
47 |
|
|
|
11 |
% |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal - Residential |
|
|
2,807 |
|
|
|
3,100 |
|
|
|
293 |
|
|
|
60 |
% |
|
|
12 |
% |
| Commercial |
|
|
1,986 |
|
|
|
2,098 |
|
|
|
112 |
|
|
|
40 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Annuity and Run-off |
|
$ |
4,793 |
|
|
$ |
5,198 |
|
|
$ |
405 |
|
|
|
100 |
% |
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property and Casualty Insurance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
% of |
|
| By Asset Type |
|
Amortized
Cost |
|
|
Fair Value |
|
|
Unrealized
Gain (Loss) |
|
|
% of
Fair Value |
|
|
Investment
Portfolio |
|
| Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Agency |
|
$ |
170 |
|
|
$ |
173 |
|
|
$ |
3 |
|
|
|
14 |
% |
|
|
2 |
% |
| Prime (Non-Agency) |
|
|
236 |
|
|
|
251 |
|
|
|
15 |
|
|
|
20 |
% |
|
|
3 |
% |
| Alt-A |
|
|
237 |
|
|
|
257 |
|
|
|
20 |
|
|
|
21 |
% |
|
|
3 |
% |
| Subprime |
|
|
311 |
|
|
|
327 |
|
|
|
16 |
|
|
|
27 |
% |
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal - Residential |
|
|
954 |
|
|
|
1,008 |
|
|
|
54 |
|
|
|
82 |
% |
|
|
12 |
% |
| Commercial |
|
|
221 |
|
|
|
228 |
|
|
|
7 |
|
|
|
18 |
% |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Property and Casualty Insurance |
|
$ |
1,175 |
|
|
$ |
1,236 |
|
|
$ |
61 |
|
|
|
100 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26
|
|
|
| American Financial Group, Inc.
Mortgage-Backed Securities - Credit Rating and NAIC Designation
June 30, 2015 ($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
GAAP data |
|
| |
|
Amortized |
|
|
|
|
|
Unrealized |
|
|
% of |
|
| By Credit Rating |
|
Cost |
|
|
Fair Value |
|
|
Gain (Loss) |
|
|
Fair Value |
|
| Investment grade |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AAA |
|
$ |
2,613 |
|
|
$ |
2,738 |
|
|
$ |
125 |
|
|
|
42 |
% |
| AA |
|
|
304 |
|
|
|
316 |
|
|
|
12 |
|
|
|
5 |
% |
| A |
|
|
421 |
|
|
|
444 |
|
|
|
23 |
|
|
|
7 |
% |
| BBB |
|
|
218 |
|
|
|
236 |
|
|
|
18 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal - investment grade |
|
|
3,556 |
|
|
|
3,734 |
|
|
|
178 |
|
|
|
58 |
% |
| BB |
|
|
296 |
|
|
|
307 |
|
|
|
11 |
|
|
|
5 |
% |
| B |
|
|
355 |
|
|
|
364 |
|
|
|
9 |
|
|
|
5 |
% |
| Other |
|
|
1,762 |
|
|
|
2,041 |
|
|
|
279 |
|
|
|
32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
5,969 |
|
|
$ |
6,446 |
|
|
$ |
477 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a
security, the rating displayed is the second lowest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Statutory data |
|
| By NAIC
Designation |
|
Carrying
Value |
|
|
% of Carrying
Value |
|
|
Amortized
Cost |
|
|
Fair Value |
|
|
Unrealized
Gain (Loss) |
|
| NAIC 1 |
|
$ |
5,693 |
|
|
|
97 |
% |
|
$ |
5,694 |
|
|
$ |
6,194 |
|
|
$ |
500 |
|
| NAIC 2 |
|
|
62 |
|
|
|
1 |
% |
|
|
62 |
|
|
|
63 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,755 |
|
|
|
98 |
% |
|
|
5,756 |
|
|
|
6,257 |
|
|
|
501 |
|
| NAIC 3 |
|
|
51 |
|
|
|
1 |
% |
|
|
51 |
|
|
|
52 |
|
|
|
1 |
|
| NAIC 4 |
|
|
59 |
|
|
|
1 |
% |
|
|
59 |
|
|
|
63 |
|
|
|
4 |
|
| NAIC 5 |
|
|
21 |
|
|
|
0 |
% |
|
|
21 |
|
|
|
32 |
|
|
|
11 |
|
| NAIC 6 |
|
|
2 |
|
|
|
0 |
% |
|
|
3 |
|
|
|
17 |
|
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
5,888 |
|
|
|
100 |
% |
|
$ |
5,890 |
|
|
$ |
6,421 |
|
|
$ |
531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27
American Financial (NYSE:AFG)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
American Financial (NYSE:AFG)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024
