Q1 2024 American Financial Group Inc Earnings Call Transcript
Key Points
- AFG reported a strong financial performance with an annualized first quarter operating return on equity of 20%.
- Net written premiums grew by 8% year-over-year, indicating robust business growth.
- AFG's investment portfolio benefited from higher interest rates, with fixed maturity securities yielding approximately 6%, favorably comparing to the previous year's 5%.
- The Specialty Property & Casualty Insurance businesses generated a strong 90.1% combined ratio, reflecting effective underwriting and risk management.
- AFG returned $269 million to shareholders through dividends, highlighting its commitment to shareholder returns.
- AFG's alternative investment portfolio returned lower compared to the previous year, primarily due to underperformance in investments tied to multifamily housing.
- Property & Casualty net investment income was approximately 1% lower than the comparable 2023 period.
- The company continues to face headwinds from increased supply and leveling out of rental rates in its multifamily housing investments.
- There were mentions of increased severity in excess liability and social services businesses, impacting profitability.
- AFG's Specialty Casualty Group saw a higher combined ratio of 89.8 compared to 87.5 in the previous year, indicating increased claims or costs.
Thank you for standing by, and welcome to American Financial Group's First Quarter 2024 Earnings Conference Call. (Operator Instructions)
I would now like to hand the call over to Diane Weidner, Vice President, Investor Relations. Please go ahead.
Thank you. Good morning, and welcome to American Financial Group's First Quarter 2024 Earnings Results Conference Call. We released our 2024 first quarter results yesterday afternoon. Our press release, investor supplement and webcast presentation are posted on AFG's website under the Investor Relations section. These materials will be referenced during portions of today's call. .
I'm joined this morning by Carl Lindner III and Craig Lindner, Co-CEOs of American Financial Group; and Brian Hertzman, AFG's CFO.
Before I turn the discussion over to Carl, I would like to draw your attention to the notes on Slide 2 of our webcast. Some of the matters to be discussed today are forward-looking. These forward
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
