Q2 2024 American Financial Group Inc Earnings Call Transcript
Key Points
- American Financial Group Inc (AFG) reported an annualized second quarter core operating return on equity of 18.5%.
- Underwriting margins in their specialty property and casualty insurance businesses were strong, with a combined ratio of 90.5%, an improvement from the previous year.
- Property and Casualty net investment income, excluding alternative investments, increased by 15% year-over-year.
- The company returned $59 million to shareholders through regular quarterly dividends and expects significant excess capital generation for potential special dividends or share repurchases.
- AFG's specialty financial group achieved an 89.7% combined ratio, showing a significant improvement from the previous year.
- Property and Casualty net investment income was approximately 1% lower than the comparable 2023 period.
- The alternative investment portfolio saw lower returns, with an annualized return of 5.1% compared to 9.6% in the prior year quarter.
- Second quarter gross and net written premiums were only up 2% and 1% respectively, indicating slower growth.
- The company faced adverse development in selected casualty businesses, particularly in the excess liability line.
- AFG had to take proactive measures to manage exposures in social inflation-exposed businesses, which tempered overall premium growth.
Good day, and thank you for standing by. Welcome to the 2024 second-quarter American Financial Group earning results call. (Operator Instructions)
Please be advised that today's conference is being recorded. I would now like to hand conference over to your first speaker today, Diane Weidner, Vice President, Investor Relations. Please go ahead.
Thank you. Good morning, and welcome to American Financial Group's second-quarter 2024 earnings results conference call. We released our 2024 second 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
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