Q3 2024 American Financial Group Inc Earnings Call Transcript
Key Points
- American Financial Group Inc (AFG) reported an annualized third-quarter core operating return on equity of 16%, showcasing strong financial performance.
- The company's property and casualty net investment income increased by 15% year over year, driven by higher interest rates and increased balances of invested assets.
- AFG declared a special dividend of $4 per share, amounting to approximately $335 million, in addition to its regular quarterly cash dividend, reflecting strong shareholder returns.
- The specialty property and casualty insurance business achieved a 94.3% combined ratio, indicating solid underwriting performance despite elevated catastrophe losses.
- AFG's specialty casualty group reported a strong 90% calendar year combined ratio, with excellent underwriting profitability in workers' compensation and executive liability businesses.
- Higher year-over-year catastrophe losses, primarily from Hurricane Helene, impacted AFG's financial results.
- The company experienced lower favorable prior year reserve development in its property and casualty insurance operations.
- AFG's specialty financial group reported a 91.9% combined ratio, with cat losses contributing significantly to the third quarter results.
- The property and transportation group faced higher catastrophe losses, which offset higher underwriting profit in agricultural businesses.
- AFG noted some adverse development in social inflation-exposed casualty businesses, impacting overall favorable reserve development.
Good day and thank you for standing by. Welcome to the American Financial Group third-quarter 2024 conference call (Operator Instructions). Please be advised that today's conference call is being recorded.
I would now like to hand the conference over to your first speaker, Diane Weidner, Vice President of Investor Relations. Please go ahead.
Thank you. Good morning, and welcome to American Financial Group's third-quarter 2024 earnings results conference call. We released our 2024 third 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
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