- Net earnings of $9.85 per share for the full year; fourth
quarter net earnings of $2.31 per share
- Fourth quarter earnings include ($0.64) per share related to
Neon exit charges and $0.73 per share in other after-tax non-core
items
- Core net operating earnings per share of $8.62 for the full
year; fourth quarter core net operating earnings per share of
$2.22
- Full year 2019 ROE of 17.1%; 2019 core operating ROE of
14.9%
- Full year 2020 core net operating earnings guidance between
$8.75 - $9.25 per share
American Financial Group, Inc. (NYSE: AFG) today reported 2019
fourth quarter net earnings attributable to shareholders of $211
million ($2.31 per share) compared to a net loss of $29 million
($0.33 per share) for the 2018 fourth quarter. Net earnings for the
2019 fourth quarter include after-tax non-core items aggregating $8
million ($0.09 per share), comprised of $58 million ($0.64 per
share) related to costs associated with plans to exit the Lloyd’s
of London insurance market in 2020 (as announced previously), $51
million ($0.56 per share) in non-core net realized gains on
securities, after-tax annuity non-core earnings of $19 million
($0.21 per share), and a loss on the early retirement of debt of $4
million ($0.04 per share). Comparatively, net earnings in the 2018
fourth quarter were adversely impacted by $188 million ($2.08 per
share) in non-core after-tax net realized losses on securities. Net
earnings attributable to shareholders for the year were $9.85 per
share, compared to $5.85 per share in 2018. Other details may be
found in the table below. Book value per share was $69.43 per share
at December 31, 2019. AFG paid cash dividends of $2.25 per share
during the quarter, which included a $1.80 per share special
dividend. Return on equity was 17.1% and 10.9% for 2019 and 2018,
respectively.
Core net operating earnings were $203 million ($2.22 per share)
for the 2019 fourth quarter, compared to $159 million ($1.75 per
share) in the 2018 fourth quarter. Higher core operating earnings
in our Annuity Segment were partially offset by lower core
operating earnings in our Property and Casualty (“P&C”)
insurance operations. In connection with AFG’s new definition of
annuity core operating earnings, AFG’s core net operating earnings
for the fourth quarter of 2019 exclude the impact of items that are
not necessarily indicative of operating trends, and include an
expense for the amortization of FIA option costs, which AFG
believes better reflects the cost of funds for FIAs and AFG’s
evaluation of the financial performance of its Annuity business.
Book value per share, excluding unrealized gains related to fixed
maturities, was $59.70 per share at December 31, 2019. For the
twelve months ended December 31, 2019, AFG’s growth in adjusted
book value per share plus dividends was 17.8%. Core operating
return on equity was 14.9% and 15.6% for 2019 and 2018,
respectively.
Beginning with the second quarter of 2019, AFG changed the way
it defines annuity core operating earnings to exclude the impact of
items that are not necessarily indicative of operating trends. Core
net operating earnings for periods prior to the change have not
been adjusted, however results for the three and twelve month
periods ended December 31, 2019 are reconciled to historically
reported Annuity Segment core operating earnings on page 5 of this
release. As a result, reported core net operating earnings for
periods beginning with the second quarter of 2019 are not directly
comparable to prior year periods.
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 table below identifies such items and
reconciles net earnings attributable to shareholders to core net
operating earnings, a non-GAAP financial measure. AFG believes that
its core net operating earnings provides management, financial
analysts, ratings agencies and investors with an understanding of
the results from the ongoing operations of the Company by excluding
the impact of net realized gains and losses, annuity non-core
earnings and losses, and special items that are not necessarily
indicative of operating trends. AFG’s management uses core net
operating earnings to evaluate financial performance against
historical results because it believes this provides a more
comparable measure of its continuing business. Core net operating
earnings is also used by AFG’s management as a basis for strategic
planning and forecasting.
In millions, except per share amounts
Three months ended December
31,
Twelve months ended December
31,
2019
2018
2019
2018
Components of net earnings (loss)
attributable to shareholders:
Core operating earnings before income
taxes
$
251
$
199
$
967
$
932
Pretax non-core
items:
Realized gains (losses) on securities
65
(238
)
287
(266
)
Annuity non-core earnings (losses)
24
-
(36
)
-
Special A&E charges
-
-
(29
)
(27
)
Neon exited lines charge
(76
)
-
(76
)
-
Loss on early retirement of debt
(5
)
-
(5
)
-
Earnings (loss) before income taxes
259
(39
)
1,108
639
Provision (credit) for income taxes:
Core operating earnings
50
46
193
184
Non-core items
18
(50
)
46
(62
)
Total provision (credit) for income
taxes
68
(4
)
239
122
Net earnings (loss), including
noncontrolling interests
191
(35
)
869
517
Less net earnings (losses) attributable to
noncontrolling interests:
Core operating earnings (losses)
(2
)
(6
)
(10
)
(13
)
Non-core items
(18
)
-
(18
)
-
Total net earnings (losses) attributable
to noncontrolling interests
(20
)
(6
)
(28
)
(13
)
Net earnings (loss) attributable to
shareholders
$
211
$
(29
)
$
897
$
530
Net earnings (loss):
Core net operating earnings(a)
$
203
$
159
$
784
$
761
Realized gains (losses) on securities
51
(188
)
227
(210
)
Annuity non-core earnings (losses)
19
-
(29
)
-
Special A&E charges
-
-
(23
)
(21
)
Neon exited lines charge
(58
)
-
(58
)
-
Loss on early retirement of debt
(4
)
-
(4
)
-
Net earnings (loss) attributable to
shareholders
$
211
$
(29
)
$
897
$
530
Components of Earnings (Loss) Per
Share:
Core net operating earnings(a,
b)
$
2.22
$
1.75
$
8.62
$
8.40
Non-core
Items:
Realized gains (losses) on securities
0.56
(2.08
)
2.47
(2.31
)
Annuity non-core earnings (losses)
0.21
-
(0.31
)
-
Special A&E charges
-
-
(0.25
)
(0.24
)
Neon exited lines charge
(0.64
)
-
(0.64
)
-
Loss on early retirement of debt
(0.04
)
-
(0.04
)
-
Diluted Earnings (Loss) Per
Share
$
2.31
$
(0.33
)
$
9.85
$
5.85
Footnotes (a) and (b) are 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, commented: “We are very pleased with AFG’s
continued strong core operating earnings, which generated an
impressive core operating return on equity of 15% in 2019. We
believe these results demonstrate the strength of our portfolio of
diversified specialty insurance businesses, and the value of our
in-house investment management team, American Money Management.
“AFG had approximately $1.1 billion of excess capital (including
parent company cash of approximately $165 million) at December 31,
2019. 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. In addition, returning capital to shareholders in the
form of regular and special cash dividends and opportunistic share
repurchases is also an important and effective component of our
capital management strategy. Over the past year, we increased our
quarterly dividend by 12.5% and paid special dividends of $3.30 per
share.
“We expect AFG’s core net operating earnings in 2020 to be
between $8.75 and $9.25 per share. Our core earnings per share
guidance excludes non-core items such as realized gains and losses,
annuity non-core earnings and losses, and other significant items
that are not able to be estimated with reasonable precision, or
that may not be indicative of ongoing operations.”
Specialty Property and Casualty
Insurance Operations
Pretax core operating earnings in AFG’s P&C Insurance
Segment were $199 million in the fourth quarter of 2019, compared
to $214 million in the prior year period, a decrease of $15
million, or 7%. Lower underwriting profits were partially offset by
higher year-over-year P&C net investment income.
The Specialty P&C insurance operations generated an
underwriting profit of $89 million for the 2019 fourth quarter
compared to $102 million in the fourth quarter of 2018. Lower
underwriting profitability in our Property and Transportation
Group, primarily due to lower year-over-year earnings in our crop
operations, was partially offset by higher year-over-year
underwriting profits in our Specialty Casualty and Specialty
Financial Groups.
The fourth quarter 2019 combined ratio of 93.5% increased 1.5
points year-over-year and includes 3.8 points of favorable prior
year reserve development, compared to 4.7 points of favorable prior
year reserve development in the 2018 fourth quarter. Catastrophe
losses added 1.0 point to the combined ratio in the 2019 fourth
quarter, compared to 3.0 points in the comparable prior year
period. Pretax catastrophe losses, net of reinsurance and inclusive
of reinstatement premiums, were $15 million and $38 million in the
fourth quarters of 2019 and 2018, respectively.
Gross and net written premiums were up 8% and 9%, respectively,
in the 2019 fourth quarter compared to the same period in 2018.
Growth in our Specialty Casualty and Specialty Financial Groups was
partially offset by lower premiums in our Property and
Transportation Group. Average renewal pricing across our entire
P&C Group was up approximately 5% for the quarter. Excluding
our workers’ compensation business, renewal pricing was up
approximately 7%. Pricing in our Specialty P&C group overall is
the highest we have achieved in over five years, meeting or
exceeding our expectations in each of our Specialty P&C
sub-segments.
Further details about AFG’s Specialty P&C operations may be
found in the accompanying schedules.
The Property and Transportation Group reported an
underwriting loss of $2 million in the fourth quarter of 2019,
compared to an underwriting profit of $64 million in the comparable
prior year period. Record levels of prevented planting claims in
our crop operations were the driver of the lower underwriting
results in this group during the quarter. Catastrophe losses for
this group were $7 million in the fourth quarter of 2019. By
comparison, catastrophe losses had a favorable impact of $2 million
in the 2018 fourth quarter.
Fourth quarter 2019 gross written premiums in this group were
down by 4% and net written premiums were flat year-over-year.
Higher premiums in our property and inland marine and ocean marine
businesses were more than offset by lower premiums in our
transportation businesses (primarily due to the timing of the
renewal of a large commercial auto account) and lower
year-over-year premiums related to our winter wheat and rainfall
index products in our crop operations. For the full year, gross and
net written premiums in this group grew by 4% and 7%, respectively.
Overall renewal rates in this group increased nearly 5% on average
in the 2019 fourth quarter and 4% overall for the full year.
The Specialty Casualty Group reported an underwriting
profit of $69 million in the 2019 fourth quarter compared to $22
million in the comparable 2018 period, largely due to a reduction
in the core underwriting loss at Neon, resulting primarily from
lower year-over-year catastrophe losses. See “Neon Exited Lines
Charge” below for information about AFG’s plans to exit the Lloyd’s
of London insurance market in 2020. Underwriting profitability in
our workers’ compensation business continues to be very strong;
these businesses reported higher year-over-year underwriting
profit, primarily as a result of higher favorable prior year
reserve development. The businesses in this group achieved a very
strong 89.7% calendar year combined ratio overall in the fourth
quarter. Catastrophe losses for this group were $6 million and $28
million in the fourth quarters of 2019 and 2018, respectively.
Catastrophe losses in both periods were primarily attributable to
Neon.
Gross and net written premiums increased 19% and 15%,
respectively, for the fourth quarter of 2019 when compared to the
same prior year period. Growth in our surplus lines and excess
liability businesses, primarily the result of new business
opportunities, rate increases and higher retentions on renewal
business, were primary drivers of the higher premiums. In addition,
higher premiums reported by Neon, premium growth in our executive
liability business and the addition of ABA Insurance Services
contributed to the higher year-over-year premiums. Renewal pricing
for this group was up 6% in the fourth quarter, and was up
approximately 3% overall for the year. Excluding our workers’
compensation businesses, renewal rates in this group were up
approximately 11% in the fourth quarter and 8% for the year.
Renewal rates in our Specialty Casualty Group overall and when
adjusted to exclude the impact of workers’ compensation are the
highest we have seen in more than five years.
The Specialty Financial Group reported an underwriting
profit of $32 million in the fourth quarter of 2019, compared to
$20 million in the fourth quarter of 2018. Higher year-over-year
underwriting profits in our financial institutions, surety and
trade credit businesses contributed to these results. Nearly all
businesses in this group continued to achieve excellent
underwriting margins. Catastrophe losses for this group were $2
million in the fourth quarter of 2019, compared to $10 million in
the 2018 fourth quarter.
Gross and net written premiums increased by 4% and 10%,
respectively, in the 2019 fourth quarter when compared to the same
2018 period due to modest growth across all businesses in the
group. Fourth quarter 2019 net written premiums were favorably
impacted by the cancellation of business that was largely ceded.
Renewal pricing in this group was up 2% during the fourth quarter
and 1% for the full year of 2019.
Carl Lindner III stated: “I am extremely pleased with the strong
underwriting margins produced by our Specialty P&C group during
the quarter, particularly in the wake of a challenging crop year.
We continue to see momentum in our renewal pricing, with nearly one
third of our non-workers’ compensation businesses achieving double
digit rate increases during the quarter. Looking forward to 2020,
we are forecasting an overall calendar year combined ratio in the
range of 92% to 94%, and we expect net written premiums to be down
1% to 5% when compared to the $5.3 billion reported in 2019,
primarily due to the run-off of Neon. Excluding the impact of Neon,
we expect growth in net written premiums in the range of 3% to 7%
in 2020.”
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.
Annuity Segment
Annuity Operating Earnings – For all periods presented,
the table below reflects core operating earnings under AFG’s new
definition. For periods prior to the second quarter of 2019, “new”
core operating earnings are reconciled to previously reported
operating results.
In millions
Three months ended
December 31,
Twelve months ended
December 31,
2019
2018
2019
2018
Pretax Annuity
Core Operating Earnings:
Pretax earnings before certain items
below
$
157
$
139
$
598
$
557
Investments marked to market through core
operating earnings, net of DAC
20
16
100
104
Amortization of option costs, net of
DAC
(73
)
(69
)
(289
)
(252
)
Pretax Annuity core operating earnings
– new method
104
86
409
409
Other amounts previously reported as
operating, net*
n/a
(66
)
(11
)
(48
)
Pretax Annuity core operating earnings, as
reported
$
104
$
20
$
398
$
361
Year over year growth in quarterly average
invested assets
9
%
12
%
11
%
10
%
Annualized yield on investments marked to
market through core operating earnings
7.7
%
7.1
%
9.7
%
12.4
%
* “Other” primarily reflects (i) the impact of fair value
accounting, (ii) the impact of changes in the stock market on the
liability for guaranteed benefits and deferred acquisition costs
(DAC), and (iii) unlocking.
Pretax earnings before certain items increased primarily as a
result of the growth in AFG’s annuity business. In addition, the
fourth quarter of 2019 included an unusually high amount of
investment income that is not expected to recur.
Earnings from investments marked to market through core
operating earnings vary from quarter to quarter based on the
reported results of the underlying investments. Higher amortization
of option costs reflects growth in AFG’s annuity business, as well
as higher costs of options.
Annuity Premiums – AFG’s Annuity Segment reported
statutory premiums of $1.14 billion in the fourth quarter of 2019,
compared to $1.48 billion in the fourth quarter of 2018, a decrease
of 23%. Higher sales of traditional fixed annuities in the
financial institutions channel and higher pension risk transfer
premiums were more than offset by lower sales of fixed-indexed
annuities (FIAs) in all channels.
In response to the continued drop in market interest rates in
2019, AFG implemented numerous crediting rate decreases in order to
maintain appropriate returns on its annuity sales, which impacted
premium volume.
Craig Lindner stated, “The Annuity Segment continued to perform
well in the fourth quarter of 2019, earning a core operating return
on equity in excess of 12%. While 2019 premiums fell short of the
record level reported in 2018, business written in 2019 contributed
to growth in average annuity investments and reserves of
approximately 11%. We are well positioned to continue to profitably
grow our business and capitalize on our consumer-centric
model.”
2020 Annuity Core Operating Earnings Guidance – For 2020,
AFG expects:
- Statutory Annuity premiums to be between $4.5 billion and $5.2
billion, compared to $5.0 billion reported in 2019
- Year-over-year average annuity asset and reserve growth of 7%
to 9%, and
- Pretax Annuity core operating earnings in the range of $395
million to $425 million, compared to $398 million reported in
2019.
This guidance reflects: (i) an assumed annualized return of 10%
on investments required to be marked to market through operating
earnings, similar to the return earned in 2019 and (ii) the impact
of lower interest rates including the impact of lower short term
rates, which will have a negative impact on the Annuity Segment’s
approximately $4 billion net investment in cash and floating rate
securities.
Annuity Non-Core Earnings – In the fourth quarter of
2019, AFG reported after-tax Annuity non-core earnings of $19
million or ($0.21 per share); this amount reflects the favorable
impact of the fourth quarter increase in the S&P 500 on fair
value accounting for FIAs.
More information about premiums and the results of operations
for our Annuity Segment may be found in AFG’s Quarterly Investor
Supplement.
Investments
AFG recorded fourth quarter 2019 net realized gains on
securities of $51 million ($0.56 per share) after tax and after
deferred acquisition costs (DAC), which included $43 million ($0.48
per share) in after-tax, after-DAC net gains to adjust equity
securities that the Company continued to own, to fair value. By
comparison, AFG recorded net realized losses on securities of $188
million ($2.08 per share) in the comparable 2018 period.
Unrealized gains on fixed maturities were $862 million after tax
and after DAC at December 31, 2019, an increase of $779 million
since year-end 2018. Our portfolio continues to be high quality,
with 91% of our fixed maturity portfolio rated investment grade and
98% with a National Association of Insurance Commissioners’
designation of NAIC 1 or 2, its highest two categories.
For the twelve months ended December 31, 2019, P&C net
investment income was approximately 8% higher than the comparable
2018 period.
More information about the components of our investment
portfolio may be found in our Quarterly Investor Supplement, which
is posted on our website.
Neon Exited Lines Charge
On January 6, 2020, AFG announced its plans to exit the Lloyd’s
of London insurance market and actions it had initiated to place
its Lloyd’s subsidiaries including its Lloyd’s Managing Agency,
Neon Underwriting Ltd., into run-off. The exit from this business
will allow AFG to reallocate capital to its other insurance
businesses and opportunities that have the potential to earn
targeted returns on investment. Neon and its predecessor,
Marketform, have failed to achieve AFG’s profitability objectives
since AFG’s purchase of Marketform in 2008. As a result of this
decision, AFG recognized a non-core after-tax charge of $58 million
($0.64 per share) in the fourth quarter of 2019 for Neon reserve
strengthening and expenses related to exit costs associated with
the run-off of this business. Beginning with the first quarter of
2020, the run-off of Neon will be reported as non-core.
Loss on Early Retirement of
Debt
In November 2019, AFG announced the offering of $200 million
aggregate principal amount of 5.125% Subordinated Debentures due
December 2059. A portion of the proceeds was used to fund the early
redemption of its $150 million 6-1/4% Subordinated Debentures due
September 2054. The redemption resulted in after-tax non-core
expenses in the fourth quarter of 2019 of approximately $4 million
($0.04 per share).
About American Financial Group, Inc.
American Financial Group is an insurance holding company, based
in Cincinnati, Ohio with assets of $70 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
traditional fixed, fixed-indexed and variable-indexed annuities in
the retail, financial institutions, broker-dealer and registered
investment advisor markets. Great American Insurance Group’s roots
go back to 1872 with the founding of its flagship company, Great
American Insurance Company.
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, investment
activities and the amount and timing of share repurchases;
recoverability of asset values; expected losses and the adequacy of
reserves for 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, including the cost of equity index options; 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; changes in
insurance law or regulation, including changes in statutory
accounting rules and changes in regulation of the Lloyd’s market,
including modifications to capital requirements; changes in costs
associated with the exit from the Lloyd’s market and the run-off of
AFG’s Lloyd’s-based insurer, Neon; 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; disruption caused by
cyber-attacks or other technology breaches or failures by AFG or
its business partners and service providers, which could negatively
impact AFG’s business and/or expose AFG to litigation; development
of insurance loss reserves and establishment of other reserves,
particularly with respect to amounts associated with asbestos and
environmental claims; availability of reinsurance and ability of
reinsurers to pay their obligations; trends in persistency and
mortality; competitive pressures; 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
AFG’s operating subsidiaries; the impact of the conditions in the
international financial markets and the global economy relating to
AFG’s international operations; and other factors identified in
AFG’s 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 2019 fourth
quarter and full year results at 11:30 am (ET) tomorrow, Tuesday,
February 4, 2020. Toll-free telephone access will be available by
dialing 877-459-8719 (international dial-in 424-276-6843). The
conference ID for the live call is 9996079. Please dial in five to
ten minutes prior to the scheduled start time of the call.
A replay will be available approximately two hours following the
completion of the call and will remain available until 11:59 pm
(ET) on February 11, 2020. To listen to the replay, dial
1-855-859-2056 (international dial-in 404-537-3406) and provide the
conference ID 9996079.
The conference call and accompanying webcast slides will also be
broadcast live over the Internet. To access the event, click on the
following link:
https://www.AFGinc.com/news-and-events/event-calendar.
Alternatively, you can choose Events from the Investor
Relations page at www.AFGinc.com.
An archived webcast will be available immediately after the call
via the same link on our website until February 11, 2020 at 11:59
p.m. (ET). An archived audio MP3 file will be available within 24
hours of the call.
(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.
AMERICAN FINANCIAL GROUP, INC.
AND SUBSIDIARIES
SUMMARY OF EARNINGS AND
SELECTED BALANCE SHEET DATA
(In Millions, Except Per Share
Data)
Three months ended December
31,
Twelve months ended December
31,
2019
2018
2019
2018
Revenues
P&C insurance net earned premiums
$
1,370
$
1,270
$
5,185
$
4,865
Life, accident & health net earned
premiums
5
6
22
24
Net investment income
593
542
2,303
2,094
Realized gains (losses) on securities
65
(238
)
287
(266
)
Income of managed investment entities:
Investment income
63
68
269
255
Gain (loss) on change in fair value of
assets/liabilities
(14
)
(11
)
(30
)
(21
)
Other income
48
53
201
199
Total revenues
2,130
1,690
8,237
7,150
Costs and expenses
P&C insurance losses &
expenses
1,362
1,175
4,996
4,586
Annuity, life, accident & health
benefits & expenses
333
400
1,440
1,299
Interest charges on borrowed money
18
16
68
62
Expenses of managed investment
entities
52
57
220
211
Other expenses
106
81
405
353
Total costs and expenses
1,871
1,729
7,129
6,511
Earnings (loss) before income taxes
259
(39
)
1,108
639
Provision (credit) for income taxes
68
(4
)
239
122
Net earnings (losses) including
noncontrolling interests
191
(35
)
869
517
Less: Net earnings (loss) attributable to
noncontrolling interests
(20
)
(6
)
(28
)
(13
)
Net earnings (loss) attributable to
shareholders
$
211
$
(29
)
$
897
$
530
Diluted earnings (loss) per Common
Share
$
2.31
$
(0.33
)
$
9.85
$
5.85
Average number of diluted shares
91.3
89.3
91.0
90.6
December 31,
December 31,
Selected Balance
Sheet Data:
2019
2018
Total cash and investments
$
55,252
$
48,498
Long-term debt
$
1,473
$
1,302
Shareholders’ equity(c)
$
6,269
$
4,970
Shareholders’ equity (excluding unrealized
gains/losses related to fixed maturities)(c)
$
5,390
$
4,898
Book value per share
$
69.43
$
55.66
Book value per share (excluding unrealized
gains/losses related to fixed maturities)(c)
$
59.70
$
54.86
Common Shares Outstanding
90.3
89.3
Footnote (c) is contained in the accompanying Notes to Financial
Schedules at the end of this release.
AMERICAN FINANCIAL GROUP,
INC.
SPECIALTY P&C
OPERATIONS
(Dollars in Millions)
Three months ended December
31,
Pct. Change
Twelve months ended December
31,
Pct. Change
2019
2018
2019
2018
Gross written premiums
$
1,749
$
1,613
8
%
$
7,299
$
6,840
7
%
Net written premiums
$
1,313
$
1,208
9
%
$
5,342
$
5,023
6
%
Ratios (GAAP):
Loss & LAE ratio
63.2
%
62.7
%
61.5
%
61.3
%
Underwriting expense ratio
30.3
%
29.3
%
32.2
%
32.1
%
Specialty Combined Ratio
93.5
%
92.0
%
93.7
%
93.4
%
Combined Ratio – P&C
Segment
99.1
%
92.0
%
95.8
%
93.8
%
Supplemental Information:(d)
Gross Written Premiums:
Property & Transportation
$
628
$
651
(4
%)
$
2,759
$
2,645
4
%
Specialty Casualty
929
778
19
%
3,768
3,445
9
%
Specialty Financial
192
184
4
%
772
750
3
%
$
1,749
$
1,613
8
%
$
7,299
$
6,840
7
%
Net Written Premiums:
Property & Transportation
$
449
$
448
-
%
$
1,876
$
1,754
7
%
Specialty Casualty
669
581
15
%
2,701
2,509
8
%
Specialty Financial
156
142
10
%
617
602
2
%
Other
39
37
5
%
148
158
(6
%)
$
1,313
$
1,208
9
%
$
5,342
$
5,023
6
%
Combined Ratio (GAAP):
Property & Transportation
100.4
%
86.5
%
95.7
%
93.1
%
Specialty Casualty
89.7
%
96.5
%
93.3
%
94.2
%
Specialty Financial
79.6
%
85.5
%
85.0
%
88.9
%
Aggregate Specialty Group
93.5
%
92.0
%
93.7
%
93.4
%
Three months ended
December 31,
Twelve months ended
December 31,
2019
2018
2019
2018
Reserve Development
(Favorable)/Adverse:
Property & Transportation
$
(18
)
$
(7
)
$
(67
)
$
(50
)
Specialty Casualty
(25
)
(52
)
(88
)
(139
)
Specialty Financial
(14
)
(7
)
(38
)
(26
)
Other Specialty
4
5
6
3
Specialty Group Excluding A&E and
Neon Charge
(53
)
(61
)
(187
)
(212
)
Special A&E Reserve Charge – P&C
Run-off
-
-
18
18
Neon Exited Lines Charge and Other
8
-
26
2
Total Reserve Development
$
(45
)
$
(61
)
$
(143
)
$
(192
)
Points on Combined Ratio:
Property & Transportation
(3.5
)
(1.5
)
(3.6
)
(2.8
)
Specialty Casualty
(3.8
)
(8.5
)
(3.4
)
(5.8
)
Specialty Financial
(9.2
)
(5.2
)
(6.3
)
(4.4
)
Aggregate Specialty Group
(3.8
)
(4.7
)
(3.7
)
(4.4
)
Total P&C Segment
(0.4
)
(4.7
)
(2.2
)
(4.0
)
Footnote (d) is contained in the accompanying Notes to Financial
Schedules at the end of this release.
AMERICAN FINANCIAL GROUP,
INC.
ANNUITY SEGMENT
(Dollars in Millions)
Components of
Statutory Premiums
Three months ended
December 31,
Pct.
Change
Twelve months ended
December 31,
Pct.
Change
2019
2018
2019
2018
Annuity
Premiums:
Financial Institutions
$
629
$
597
5
%
$
2,766
$
2,268
22
%
Retail
195
419
(53
%)
1,063
1,505
(29
%)
Broker-Dealer
116
339
(66
%)
689
1,285
(46
%)
Pension Risk Transfer
158
75
111
%
257
132
95
%
Education Market
36
46
(22
%)
164
192
(15
%)
Variable Annuities
5
6
(17
%)
21
25
(16
%)
Total Annuity Premiums
$
1,139
$
1,482
(23
%)
$
4,960
$
5,407
(8
%)
Components of
Annuity Earnings Before Income Taxes
Three months ended December
31,
Pct. Change
Twelve months ended December
31,
Pct. Change
2019
2018
2019
2018
Revenues:
Net investment income
$
458
$
419
9
%
$
1,792
$
1,638
9
%
Other income
26
27
(4
%)
108
107
1
%
Total revenues
484
446
9
%
1,900
1,745
9
%
Costs and Expenses:
Annuity benefits
251
334
(25
%)
1,151
998
15
%
Acquisition expenses
71
56
27
%
248
255
(3
%)
Other expenses
34
36
(6
%)
139
131
6
%
Total costs and expenses
356
426
(16
%)
1,538
1,384
11
%
Annuity earnings before income taxes
$
128
$
20
540
%
$
362
$
361
-
%
Supplemental
Annuity Information
Three months ended
December 31,
Twelve months ended
December 31,
2019
2018
2019
2018
Core net interest spread on fixed
annuities – new method
1.98
%
1.94
%
2.01
%
2.14
%
Core net spread earned on fixed annuities
– new method
1.07
%
0.98
%
1.08
%
1.20
%
* Excludes fixed annuity portion of variable annuity
business.
Further details may be found in our Quarterly Investor
Supplement, which is posted on our website.
AMERICAN FINANCIAL GROUP, INC. Notes to
Financial Schedules
a) Components of core net operating earnings (in millions):
Three months ended
December 31,
Twelve months ended
December 31,
2019
2018
2019
2018
Core Operating
Earnings before Income Taxes:
P&C insurance segment
$ 199
$ 214
$ 753
$ 740
Annuity segment, new method
104
86
409
409
Annuity results previously reported as
operating earnings
-
(66
)
(11
)
(48
)
Interest and other corporate expenses*
(50
)
(29
)
(174
)
(156
)
Core operating earnings before income
taxes
253
205
977
945
Related income taxes
50
46
193
184
Core net operating earnings
$ 203
$ 159
$ 784
$ 761
* Other Corporate Expenses includes income and expenses
associated with AFG‘s run-off businesses.
b) Because AFG had a net loss for the fourth quarter of 2018,
the impact of potential dilutive options (weighted average of 1.4
million shares) was excluded from AFG’s fully diluted earnings per
share calculation. However, for the non-GAAP measure of core net
operating earnings, the Company believes it is most appropriate to
use the fully diluted share data that would have been used if AFG
had net earnings for the fourth quarter.
c) Shareholders’ Equity at December 31, 2019 includes $862
million ($9.54 per share) in unrealized after-tax gains on fixed
maturities and $17 million ($0.19 per share) in unrealized
after-tax losses on fixed maturity-related cash flow hedges.
Shareholders’ Equity at December 31, 2018 includes $83 million
($0.93 per share) in unrealized after-tax gains on fixed maturities
and $11 million ($0.13 per share) in unrealized after-tax losses on
fixed maturity-related cash flow hedges.
d) Supplemental Notes:
- Property & Transportation includes primarily
physical damage and liability coverage for buses and trucks, inland
and ocean marine, agricultural-related products and other
commercial 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 lending and leasing institutions (including equipment
leasing and collateral and lender-placed mortgage property
insurance), surety and fidelity products and trade credit
insurance.
- Other includes an internal reinsurance facility.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200203005795/en/
Diane P. Weidner, IRC Asst. Vice President - Investor &
Media Relations 513-369-5713 Websites: www.AFGinc.com
www.GreatAmericanInsuranceGroup.com
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