Core Insights - Albert Anthony is a markets analyst and contributor on Seeking Alpha, covering over 200 companies and providing market commentary since 2023 [1] - He has a growing fan base of over 1,000 followers and operates a home-based fund called The Future Investor Fund [1] - In 2025, he plans to publish a book titled "The Future Investor: Growing a Diversified Portfolio" aimed at educating over 1 million people globally [1] Company Profile - Albert Anthony & Company is an independent sole proprietorship registered in Travis County, Texas [1] - The company does not provide personalized financial advice but offers general market commentary based on publicly available research [1] Educational Background - Albert Anthony has completed degrees and certificates from institutions such as Drew University, Corporate Finance Institute, Microsoft, CompTIA, and UVA Darden School of Business [1] - He is a member of the Croatian Association of Economists (HDE) as of 2024 [1] Professional Experience - His experience includes working as a management and information systems analyst at large companies, including a top 10 financial firm in the US [1] - He frequently attends business, innovation, and startup conferences across the US and Europe [1]

Core Viewpoint - American Financial Group, Inc. (AFG) is trading at a premium compared to the Zacks Property and Casualty Insurance industry, with a price-to-book value of 2.46X versus the industry average of 1.68X, indicating a strong valuation despite underperforming in the past year [1][2]. Financial Performance - AFG has a market capitalization of $11.56 billion, with an average trading volume of 0.3 million shares over the last three months [4]. - The stock closed at $137.75, trading above its 200-day simple moving average of $132.04, suggesting solid upward momentum [5]. - The trailing 12 months return on equity (ROE) for AFG is 19.9%, significantly higher than the industry average of 7.5%, reflecting efficient use of shareholders' funds [6]. Growth Factors - AFG is positioned for growth due to new business opportunities, increased exposure, and a favorable renewal rate environment, along with additional crop premiums from the Crop Risk Services acquisition [7]. - The company has maintained average renewal pricing across its entire P&C Group and aims to achieve renewal rate increases above prospective loss ratio trends [9]. Underwriting and Dividend Stability - AFG has consistently outperformed the industry average in combined ratio for over two decades, supported by its specialty niche focus, product line diversification, and underwriting discipline [10]. - The company has increased its dividend for 18 consecutive years, with a 10-year compound annual growth rate of 12.4%, indicating strong financial stability and effective capital management [11][12]. Conclusion - AFG's strategic acquisitions, new business opportunities, and improved combined ratio make it an attractive investment despite its high valuation, suggesting a hold recommendation for investors [13].

As expected, the Fed cut the interest rate by 25 basis points to a target range of 4.25-4.50%, representing a full 1% drop since September. This marks the third rate cut since September this year as the inflation rate is expected to move to its desired 2% benchmark. However, the Fed now expects inflation to be at 2.5% through next year. Though there should be more cuts next year, as the Fed wants to take the rate between 3.75% and 4% by the end of 2025, the magnitude and the number of cuts is now anyone's g ...

Shares of American Financial Group, Inc. (AFG) have rallied 24.4% year to date, outperforming the Finance sector’s return of 24.1%. It, however, underperformed the industry’s growth of 34.3% and the S&P 500 composite’s return of 26.5%.Image Source: Zacks Investment ResearchWith a market capitalization of $12.41 billion, the average volume of shares traded in the last three months was 0.3 million.American Financial closed at $147.93 on Wednesday, near its 52-week high of $150.19. This proximity underscores i ...

The Zacks Property and Casualty Insurance industry is well-poised to benefit from better pricing, prudent underwriting, increased exposure, an improving rate environment and a solid capital position. With the ongoing economic expansion, insurers remain well-poised for growth. The buoyancy in the industry is further confirmed by its Zacks Industry Rank #31, which places it in the top 12% of more than 250 Zacks industries.However, industry players continue to grapple with issues like higher catastrophe events ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____ to ____ Commission File No. 1-13653 AMERICAN FINANCIAL GROUP, INC. Incorporated under the Laws of Ohio IRS Employer I.D. No. 31-1544320 301 East Fourth Street, ...

Core Viewpoint - American Financial Group (NYSE: AFG) has experienced a moderate performance over the past year, with a gain of approximately 19%, although recent concerns regarding catastrophe losses due to a late hurricane season have led to a pullback in shares [1]. Company Performance - The shares of American Financial Group have gained about 19% over the past year [1]. - Recent weeks have seen a pullback in shares due to concerns about potential catastrophe losses [1]. Market Context - The late hurricane season has raised concerns that may impact the company's stock performance [1].

Financial Data and Key Metrics Changes - The company reported core net operating earnings of $2.31 per share for Q3 2024, with an annualized core operating return on equity of 16% [4][3] - Property and Casualty net investment income increased by approximately 15% year-over-year, driven by rising interest rates and higher balances of invested assets [5][4] - The company returned $59 million to shareholders through regular dividends and declared a special dividend of $4 per share, totaling approximately $335 million [6][4] Business Line Data and Key Metrics Changes - The Specialty Property and Casualty Insurance business had a combined ratio of 94.3% in Q3 2024, up 2.1 points from the previous year, with catastrophe losses contributing 4.4 points [7][8] - Gross and net written premiums increased by 19% and 14% respectively compared to Q3 2023, primarily due to the Crop Risk Services acquisition [8][9] - The Property and Transportation Group achieved a combined ratio of 96.5%, with gross and net written premiums up 32% and 26% respectively [9][10] Market Data and Key Metrics Changes - Average renewal pricing across the Property and Casualty Group increased by approximately 8% in Q3 2024, continuing a trend of 33 consecutive quarters of renewal rate increases [8][9] - The Specialty Casualty Group reported a combined ratio of 90% for Q3 2024, with gross and net written premiums increasing by 6% and 4% respectively [11][12] Company Strategy and Development Direction - The company aims to continue generating significant excess capital, providing opportunities for acquisitions, special dividends, or share repurchases [6][4] - The management expressed optimism regarding the prospects of attractive returns from alternative investments, expecting annual returns averaging 10% or better [5][4] Management Comments on Operating Environment and Future Outlook - Management acknowledged elevated catastrophe losses from Hurricane Helene but maintained a positive outlook on the overall business plan and profitability for the remainder of 2024 [30][4] - The company is confident in its ability to manage social inflation risks and has adjusted terms and conditions in response to market conditions [15][4] Other Important Information - The company has declared a total of $50 per share in special dividends since the beginning of 2021, including $6.50 per share in 2024 [6][4] - The management highlighted the importance of learning from each catastrophe event to improve risk management strategies [26][4] Q&A Session Summary Question: On the loss ratio and IBNR adjustments - The management indicated that reserve positions are assessed quarterly, and adjustments are made based on new information, particularly in social inflation exposure businesses [15][4] Question: On alternative investment returns - Management expressed confidence in returning to 10% plus returns in alternative investments, particularly in multifamily properties, as new supply is expected to be absorbed [19][4] Question: On competitive pricing environment - The company reported strong pricing increases in commercial auto liability and social inflation exposed lines, with continued favorable pricing trends [21][4] Question: On adverse development in social inflation lines - Management confirmed that while there was some adverse development, overall results in casualty businesses remain strong with good ROEs [22][4] Question: On commercial auto liability and reserve adjustments - Management clarified that adverse development was not a significant driver in the transportation segment [25][4]

Core Viewpoint - American Financial Group, Inc. (AFG) reported a decline in net operating earnings per share for Q3 2024, missing estimates due to increased catastrophe losses and lower favorable reserve developments, despite higher investment income [1]. Financial Performance - Net operating earnings per share were $2.31, missing the Zacks Consensus Estimate by 7.9% and decreasing 5.7% year over year [1]. - Total revenues reached $2.2 billion, reflecting a 10.4% year-over-year increase, driven by higher P&C insurance net earned premiums and net investment income, surpassing the Zacks Consensus Estimate by 10.7% [3]. - Net investment income rose 19% year over year to $200 million, exceeding both internal estimates and the Zacks Consensus Estimate [3]. Cost and Expenses - Total costs and expenses increased by 10% year over year to $2.1 billion, attributed to higher P&C insurance losses and other expenses, which was above the internal estimate of $1.9 billion [4]. Segment Performance - The Specialty P&C Insurance segment reported $2.3 billion in net written premiums, a 14% increase year over year, aided by the Crop Risk Services acquisition [5]. - Net written premiums in the Property & Transportation Group surged 26% year over year to $1.1 billion, exceeding the estimate of $934.5 million [6]. - The Specialty Casualty Group saw a 4% year-over-year increase in net written premiums to $863 million, which was slightly below the estimate [6]. - The Specialty Financial segment's net written premiums increased by 9% year over year to $284 million, also falling short of estimates [7]. Catastrophe Losses - Catastrophe losses amounted to $90 million in the quarter, significantly higher than the $56 million loss in the previous year, primarily due to Hurricane Helene [8]. Underwriting Profit - The underwriting profit for the Specialty P&C Insurance segment decreased by 18.2% year over year to $117 million, which was lower than the estimate of $163.8 million [7]. - The combined ratio deteriorated by 210 basis points year over year to 94.3% in the segment [10]. Financial Position - As of September 30, 2024, total cash and investments stood at $15.7 billion, a 3.1% increase from the end of 2023, but below the estimate of $16.3 billion [10]. - The book value per share, excluding accumulated other comprehensive income, was $57.71, reflecting a 5.5% increase from the end of 2023 [11]. - The annualized return on equity for the third quarter was 15.2%, down 50 basis points year over year [11]. Capital Deployment - AFG declared a special cash dividend of $4.00 per share, totaling approximately $335 million, to be paid on November 26, 2024 [12].

Press Release For Immediate Release American Financial Group, Inc. Announces Third Quarter Results and Declares Special Dividend • Net earnings per share of $2.16; includes ($0.15) per share in after-tax non-core items • Core net operating earnings $2.31 per share • Third quarter annualized ROE of 15.2%; core operating ROE of 16.2% • Overall average renewal rate increases excluding workers' compensation of 8% • Board of Directors declares $4.00 per share special dividend, payable November 26, 2024 CINCINNAT ...