American Financial (AFG) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

Core Viewpoint - American Financial Group (AFG) reported a revenue increase of 10.4% year-over-year for Q3 2024, reaching $2.28 billion, which exceeded analyst expectations by 10.69% [1]. Financial Performance - Earnings per share (EPS) for the quarter was $2.31, down from $2.45 in the same quarter last year, representing a surprise of -7.97% compared to the consensus estimate of $2.51 [1]. - The Property and Casualty - Loss and LAE Ratio was reported at 69.6%, higher than the estimated 65% [3]. - The Property and Transportation - Underwriting Expense Ratio was 17.2%, better than the average estimate of 18.4% [3]. - The Property and Transportation - Loss and LAE Ratio was 79.3%, exceeding the estimated 76.4% [3]. - The Property and Casualty - Combined Ratio - Specialty was 94.3%, compared to the average estimate of 91.6% [3]. - The Property and Transportation - Combined Ratio was 96.5%, above the estimated 94.8% [3]. Revenue Breakdown - P&C insurance net earned premiums were $2.06 billion, surpassing the five-analyst average estimate of $1.82 billion, with a year-over-year increase of 10.8% [3]. - Net investment income reached $200 million, exceeding the average estimate of $182.94 million, reflecting a year-over-year growth of 19.1% [3]. - Specialty Casualty net earned premium was $744 million, slightly below the three-analyst average estimate of $769.97 million, with a year-over-year change of 1.4% [3]. - Property and Transportation net earned premium was $981 million, significantly higher than the estimated $719.32 million, marking an 18.5% year-over-year increase [3]. - Specialty Financial net earned premium was $269 million, above the average estimate of $244.02 million, with a year-over-year increase of 16% [3]. - Other income (loss) was reported at $26 million, below the two-analyst average estimate of $42.52 million, showing a year-over-year decline of 39.5% [3]. - Other Specialty net earned premium was $61 million, slightly below the estimated $63.50 million, with no year-over-year change [3]. Stock Performance - Over the past month, shares of American Financial have decreased by 6.1%, compared to a 0.5% decline in the Zacks S&P 500 composite [4]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4].