For the twelve months ended December 31, 2024, P&C net investment income was approximately
8% higher than the comparable 2023 period due primarily to the impact of rising interest rates and higher balances of invested assets. The return on alternative investments was 6.1% for 2024 compared to 7.0% earned on P&C alternative
investments in 2023. The average annual return on alternative investments over the five calendar years ended December 31, 2024, was approximately 12%.
Non-Core Net Realized Gains (Losses) – AFG recorded fourth quarter 2024 net realized losses of
$7 million ($0.09 per share) after tax, which included less than $1 million ($0.01 per share) in after-tax net losses to adjust equity securities that the Company continued to own at
December 31, 2024, to fair value. AFG recorded net realized gains of $25 million ($0.29 per share) after tax in the comparable 2023 period.
After-tax unrealized losses related to fixed maturities were $212 million at December 31, 2024. Our portfolio continues to be high quality, with 94% of our fixed maturity portfolio rated investment grade
and 96% of our P&C fixed maturity portfolio with a National Association of Insurance Commissioners’ designation of NAIC 1 or 2, its highest two categories.
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. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for
businesses. 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,
and any related oral statements, 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 or special dividends; 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: the risks and uncertainties AFG describes in the “Risk Factors” section of its most recent Annual Report on Form 10-K, as updated by its other reports filed
with the Securities and Exchange Commission; 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; 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,
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