American Financial Group, Inc. Announces First Quarter Results

Rhea-AI Summary

American Financial Group reported Q1 2021 net earnings of $419 million ($4.84 per share), a significant rebound from a $301 million loss in Q1 2020. The results reflect $213 million in after-tax non-core items. AFG's discontinued annuity operations contributed $152 million ($1.76 per share) to earnings. Core net operating earnings rose to $206 million ($2.38 per share) from $125 million in Q1 2020. The company's book value per share reached $78.53 with an impressive 29.9% annualized return on equity.

Positive

• Net earnings of $419 million in Q1 2021, a turnaround from a $301 million loss in Q1 2020.
• Core net operating earnings increased to $206 million, up from $125 million year-over-year.
• Annualized return on equity of 29.9% for Q1 2021, compared to (23.1%) in Q1 2020.
• Book value per share improved to $78.53.

Negative

• Lower other property and casualty net investment income due to decreased short-term interest rates.

American Financial Group, Inc. (NYSE: AFG) today reported 2021 first quarter net earnings attributable to shareholders of $419 million ($4.84 per share) compared to a net loss of $301 million ($3.34 per share loss) for the 2020 first quarter. Net earnings for the 2021 first quarter include after-tax non-core items totaling $213 million ($2.46 per share). As previously announced, the results of AFG’s Annuity operations are reported as discontinued operations beginning with the first quarter of 2021, in accordance with generally accepted accounting principles (GAAP), which included adjusting prior period results to reflect these operations as discontinued. AFG’s first quarter 2021 results included $152 million ($1.76 per share) in earnings from discontinued annuity operations and $61 million ($0.70 per share) in after-tax non-core net realized gains on securities. By comparison, the net loss attributable to shareholders in the 2020 first quarter included $426 million ($4.70 per share loss) in adverse after-tax non-core items. Other details may be found in the table on the following page. AFG’s book value per share was $78.53 as of March 31, 2021. Annualized return on equity was 29.9% and (23.1%) for the first quarters of 2021 and 2020, respectively.

Core net operating earnings were $206 million ($2.38 per share) for the 2021 first quarter, compared to $125 million ($1.36 per share) in the 2020 first quarter. The year-over-year increase was the result of substantially higher underwriting profit in the Specialty Property and Casualty (“P&C”) insurance operations and significantly higher P&C net investment income. Improved results from AFG’s $1.5 billion of alternative investments that are marked to market through core operating earnings were partially offset by lower other property and casualty net investment income, primarily due to lower short-term interest rates. Additional details for the 2021 and 2020 first quarters may be found in the table below. Core net operating earnings for the first quarters of 2021 and 2020 generated annualized returns on equity of 14.7% and 9.6%, respectively.

		Three Months Ended March 31,
Components of Pretax Core Operating Earnings		2021				2020(a)				2021			2020(a)				2021				2020(a)
In millions, except per share amounts		Before Impact of								Alternative Investments							Core Net Operating
		Alternative Investments								Investments, net of DAC							Earnings, as reported
P&C Pretax Core Operating Earnings		$	211			$	178			$	77		$	3			$	288			$	181
Real estate entities and other to be acquired from
Annuity operations			(1	)			-				29			6				28				6
Other expenses			(34	)			(17	)			-			-				(34	)			(17	)
Holding company interest expense			(24	)			(17	)			-			-				(24	)			(17	)
Pretax Core Operating Earnings			152				144				106			9				258				153
Related provision for income taxes			30				26				22			2				52				28
Core Net Operating Earnings		$	122			$	118			$	84		$	7			$	206			$	125
Core Operating Earnings Per Share		$	1.41			$	1.28			$	0.97		$	0.08			$	2.38			$	1.36
Weighted Avg Diluted Shares Outstanding			86.6				91.1				86.6			91.1				86.6		{ "@context": "https://schema.org", "@type": "FAQPage", "name": "American Financial Group, Inc. Announces First Quarter Results FAQs", "mainEntity": [ { "@type": "Question", "name": "What were American Financial Group's earnings for Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "American Financial Group reported net earnings of $419 million ($4.84 per share) for Q1 2021." } }, { "@type": "Question", "name": "How did AFG perform in Q1 2020 compared to Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "In Q1 2020, AFG experienced a net loss of $301 million ($3.34 per share), contrasting sharply with the profit in Q1 2021." } }, { "@type": "Question", "name": "What is AFG's core net operating earnings for Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Core net operating earnings for Q1 2021 amounted to $206 million ($2.38 per share)." } }, { "@type": "Question", "name": "What is AFG's annualized return on equity for Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "The annualized return on equity for AFG in Q1 2021 was 29.9%." } }, { "@type": "Question", "name": "What contributed to AFG's earnings in Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "AFG's earnings in Q1 2021 were bolstered by $152 million from discontinued annuity operations and higher underwriting profits." } } ] } FAQ What were American Financial Group's earnings for Q1 2021? American Financial Group reported net earnings of $419 million ($4.84 per share) for Q1 2021. How did AFG perform in Q1 2020 compared to Q1 2021? In Q1 2020, AFG experienced a net loss of $301 million ($3.34 per share), contrasting sharply with the profit in Q1 2021. What is AFG's core net operating earnings for Q1 2021? Core net operating earnings for Q1 2021 amounted to $206 million ($2.38 per share). What is AFG's annualized return on equity for Q1 2021? The annualized return on equity for AFG in Q1 2021 was 29.9%. What contributed to AFG's earnings in Q1 2021? AFG's earnings in Q1 2021 were bolstered by $152 million from discontinued annuity operations and higher underwriting profits. American Finl Group Inc Ohio NYSE:AFG AFG Rankings #628 Ranked by Market Cap #2151 Ranked by Dividends AFG Latest News Apr 1, 2025 American Financial Group, Inc. Declares Quarterly Dividend Mar 31, 2025 American Financial Group, Inc. Announces Agreements to Sell Charleston Harbor Resort & Marina Mar 11, 2025 Matthew J. Stevens Promoted to Vice President of American Financial Group Feb 28, 2025 American Financial Group, Inc. Announces Special Dividend and Share Repurchases Feb 24, 2025 American Financial Group, Inc. Management to Participate in the 2025 Association of Insurance and Financial Analysts (AIFA) Conference AFG Stock Data Market Cap 11.08B Float 69.18M Insiders Ownership 17.69% Institutions Ownership 65.61% Short Percent 1.5% Industry Insurance - Property & Casualty Sector Fire, Marine & Casualty Insurance Website Link Country United States City CINCINNATI Explore About Rhea-AI Sitemap Legal Terms of Use Cookie Notice Privacy Policy Links RSS feed Discord Server Facebook Reddit © 2020-2025 StockTitan.net Login Please enter your login and password Email address Password Forgot password? LOGIN Close Don't have an account? Sign Up! Forgot Password Please enter your email address Email address RECOVER Close Sign Up To create a free account, please fill out the form below. Username Email address Password I accept the user agreement Sign me up for the newsletter CREATE ACCOUNT Close Already have an account? Login