Specialty Property and
Casualty Insurance
Investor Presentation
March 21, 2024
Forward Looking Statements
Certain statements made during this presentation, as well as included in this document, are not historical facts and may be considered "forward-looking statements" and are based on estimates, assumptions and projections which management believes are reasonable but by their nature subject to risks and uncertainties. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward- looking statements.
The reasons which could cause actual results and/or financial condition to differ materially from those suggested by such forward-looking statements include but are not limited to those discussed or identified from time-to-time in AFG's filings with the Securities and Exchange Commission, including the annual report on Form 10-K and the quarterly reports on Form 10-Q. We do not promise to update such forward-looking statements to reflect actual results or changes in assumptions or other factors that could affect these statements.
Core net operating earnings is a non-GAAP financial measure which sets aside items that are generally not considered to be part of ongoing operations, such as net realized gains and losses, as well as other significant items that are not able to be estimated with reasonable precision, or that may not be indicative of ongoing operations. AFG believes that this non-GAAP measure is a useful tool for investors and analysts in analyzing ongoing operating trends of AFG.
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A History Dating Back More Than 150 Years
We are specialists in providing P&C insurance products that help businesses manage their unique financial risks and exposures.
Approximately 55% of Specialty P&C Group gross written premium is produced by businesses with "top 10" market rankings
Superior Underwriting | Specialty P&C |
Talent | Combined Ratio |
7.5% | 11 years |
Points of COR outperformance | Consecutive years |
vs. peers over 10-year period | under 94% |
ended 12/31/2023 |
Overall Specialty P&C combined ratio of 90.3% for the twelve months ended December 31, 2023
Record premium production for the twelve months ended December 31, 2023 | 3 |
Top Tier Specialty Property & Casualty Insurer
Entrepreneurial Culture, Strategic Alignment of Interests
Market Leading P&C Insurance Specialist
Consistent Investment Outperformance
Superior Capital Management and Strong Balance Sheet
4
Our values form the
foundation of our business,
shape our priorities, and set our expectations for how we conduct our business, service our customers and interact with each other.
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Strategic Alignment of Interests for Optimal Results
Significant Ownership
by Management
15%
25%
60%
Individual Institutional Family, Investors Investors Executives and
Retirement Plan
Unique, Incentive-Based
Programs for P&C Business
Leaders
- Annual awards
- based on AY COR targets derived from ROE thresholds
- paid over 2-3 years; claw back feature
- Long Term Incentive Comp (LTIC) Plan
- 5-yearmeasurement period based on AY COR targets derived from ROE thresholds
- paid out over the following 4-5 years
- Attract, retain and reward key operating executives & officers
Profit Sharing for Employees
- Our Profit-Sharing Plan is a key component of AFG's Total Rewards Program, rewarding eligible employees for their contributions toward overall performance
Innovator in Risk Sharing and
Alternative Risk Transfer Programs
For Policyholders and Agents
- A leader in providing risk sharing alternatives to the passenger transportation, moving & storage and trucking specialty transportation industries
- Through collaboration and specialized knowledge, we work with a variety of agency and group risk sharing programs in a wide range of industry segments in our Targeted Markets operations
- Our Strategic Comp business offers unique coverage options for workers' comp accounts that include higher retentions and specialty loss prevention - giving businesses more control over their costs, risks, and outcomes
- Innovative commission structures for distribution
partners reward production of profitable business | 6 |
Building Long-Term Value for AFG Shareholders
10 YEAR VIEW
OF
TOTAL VALUE
CREATION
Growth in Adjusted BVPS + Dividends
11%
CAGR
Superior P&C | Superior | Intelligent |
Underwriting | Investment | Deployment of |
Results | Talent | Capital |
- VALUE CREATION
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
Adjusted Book Value excludes unrealized gains and losses related to fixed maturities.
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Focusing on What We Know Best
Sale of
Commercial
Lines Division
1998 2000
Start-up of
Financial
Institution
Services
Acquired all | ||||||
IPO of Infinity | minority | |||||
Property and | shares of Great | |||||
Casualty; exit | American | |||||
personal auto | Financial | |||||
business | Resources, Inc. | |||||
2003 | 2005 | 2007 | 2008 | |||
Acquisition of | Acquisitions of | |||||
Farmer's Crop | Strategic | |||||
Insurance | Comp & | |||||
Alliance | Marketform | |||||
IPO of National | Group Ltd. | |||||
Interstate | Start-up of | |||||
Corporation | Environmental | |||||
Division |
2010
Acquisition of Vanliner
Acquisition of | Acquired | Start-up of | |||||||||||||
Summit Holding | remaining 49% | ||||||||||||||
Start-up of Public | Southeast, Inc. | of NATL | Accident & | Acquisition of | |||||||||||
shares not | Health | Acquisition of | |||||||||||||
Sector Division | Start-up of | owned by AFG | Business | Crop Risk | |||||||||||
Sale of Medicare | Aviation Division | Start-up of | Acquired Atlas | Verikai, Inc. | Services | ||||||||||
Sale of | |||||||||||||||
supplement & | Acquisition of | El Aguila | Financial | ||||||||||||
critical illness | Public Sector | Specialty P&C | paratransit | Annuity | |||||||||||
businesses | renewal rights | Division | business | Business | |||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |||||
Start-up of | Sale of long- | Acquired Tank | Sale of Neon and | Start-up of | |||||||||||
Professional | term care | Owner Members | exit from Lloyd's | Medical Stop | |||||||||||
Liability Division | business | Insurance Company | market | Loss Business | |||||||||||
Start-up of Great | (TOMIC) business | ||||||||||||||
Acquired ABA | |||||||||||||||
American's | |||||||||||||||
Singapore | Insurance | ||||||||||||||
branch | Services Inc. | ||||||||||||||
Start-up of M&A | (ABAIS) | ||||||||||||||
Liability Division |
Start-Ups | Acquisitions | Dispositions | ||||
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We are specialists in providing property and casualty insurance solutions that fulfill today's needs and tomorrow's dreams. We are a trusted partner in delivering long- term value to our customers, employees and investors.
Specialty P&C Insurance Operations
PROPERTY & | SPECIALTY | SPECIALTY |
TRANSPORTATION | CASUALTY | FINANCIAL |
Agribusiness (farm & ranch) | Cyber Risk | Fidelity / Crime |
Commercial Automobile | Excess and Surplus | Financial Institution Services |
Commercial Property | Executive & Professional Liability | Lease and Loan Services |
Crop | General Liability | Surety |
Equine Mortality | M&A Liability | Trade Credit |
Inland and Ocean Marine | Medical Stop Loss | |
Public Entities | ||
Targeted Programs | ||
Umbrella and Excess Liability | ||
Workers' Compensation |
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Great American Insurance Company's Ratings
A+ A+ A1
Superior Strong
Diversified product offerings in niche markets
Consistent, solid underwriting results
Strong market positions
Strong capitalization
Low catastrophe risk profile
The Numbers Tell Our Story 3,000
Property and casualty insurance companies in the United States
50
Companies on the Ward's 50 List for safety, consistency and performance
4
Rated "A" (Excellent) or better by AM Best for 115 or more years
3
on both lists
1
Great American Insurance Company is 1 of the three
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Disclaimer
American Financial Group Inc. published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 11:53:04 UTC.