Certain statements made during this call, 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 discontinued operations, net realized gains and losses, and certain nonrecurring items. AFG believes that this non-GAAP measure is a useful tool for investors and analysts in analyzing ongoing operating trends of AFG.
2
2022 Second Quarter Consolidated Results
Dollars in millions, except per share data
Three Months Ended
June 30,
2022
2021
P&C Insurance Segment
$
345
$
288
Real estate entities and other acquired from
Annuity operations
-
22
Interest & other corporate expenses
(37)
(58)
Pretax Core Operating Earnings
308
252
Related income taxes
65
47
Core Net Operating Earnings
$
243
$
205
Average number of diluted shares
85.3
85.6
Core Net Operating Earnings per Share
$
2.85
$
2.39
Annualized Core Operating Return on Equity
20.7%
14.7%
3
2022 Second Quarter Consolidated Results (continued)
Dollars in millions, except per share data
Three Months Ended
June 30, 2022
(Per Share)
Core Net Operating Earnings
$ 243
$ 2.85
Non-core Items
After-tax net realized losses on securities1
(73)
(0.86)
Loss on retirement of debt
(7)
(0.08)
Other
4
0.05
Net Earnings
$ 167
$ 1.96
1 Included in this amount is $65 million ($0.76 per share) in after-tax net losses to adjust equity securities that the Company continued to own at June 30, 2022, to fair value.
4
Investments
Total carrying value of AFG's investment portfolio at June 30, 2022 = $14.3 billion
Second quarter after-tax net realized losses on securities of $73 million
includes $65 million in after-tax net realized losses to adjust equity securities that the company continued to own at June 30, 2022 to fair value through earnings
Pretax unrealized losses on fixed maturities were $413 million at June 30, 2022
Second quarter 2022 annualized return of 12.4% on AFG's $2.0 billion of alternative investments
5
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American Financial Group Inc. published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 15:37:10 UTC.
American Financial Group, Inc. is an insurance holding company. The Company is engaged in property and casualty insurance, focusing on specialized commercial products for businesses. The Company operates through two segments: Property and casualty insurance and Other. Property and casualty insurance business includes specialty sub-segments: Property and transportation, which includes physical damage and liability coverage for buses and trucks and other specialty transportation niches, inland and ocean marine, agricultural-related products and other commercial property coverages; Specialty casualty, which includes primarily excess and surplus, executive and professional liability, general liability, umbrella and excess liability, and Specialty financial, which includes risk management insurance programs for lending and leasing institutions (including equipment leasing and collateral and lender-placed mortgage property insurance), fidelity and surety products and trade credit insurance.