American Financial (AFG) Reports Q3 2024 Net Income of $181 Million

By Bobby Samwell • Wednesday, November 06 10:32 • Permanent Link

American Financial Group, Inc. (NYSE: AFG) has reported a net income of $181 million ($2.16 per share) for the third quarter of 2024, compared to $177 million ($2.09 per share) in the same period in 2023. The net earnings for the third quarter of 2024 included net after-tax non-core items that reduced net income by $13 million ($0.15 per share loss), while the third quarter of 2023 included net after-tax non-core items that reduced net income by $31 million ($0.36 per share loss).

Core net operating earnings for the third quarter of 2024 were $194 million ($2.31 per share), down from $208 million ($2.45 per share) in the third quarter of 2023. The decrease was primarily due to higher year-over-year catastrophe losses related to Hurricane Helene and lower favorable prior year reserve development in the specialty property and casualty insurance operations, partially offset by higher investment income.

The annualized return on equity was 15.2% for the third quarter of 2024, compared to 15.7% for the same period in 2023. Core operating return on equity was 16.2% for the third quarter of 2024, down from 18.3% in the third quarter of 2023.

The board of directors declared a special cash dividend of $4.00 per share of American Financial Group common stock, payable on November 26, 2024, to shareholders of record on November 15, 2024. This special dividend is in addition to the company’s regular quarterly cash dividend of $0.80 per share.

The specialty property and casualty insurance operations reported an underwriting profit of $117 million in the third quarter of 2024, down from $143 million in the same period in 2023. Catastrophe losses were $90 million in the third quarter of 2024, primarily due to Hurricane Helene, compared to $56 million in the third quarter of 2023. The combined ratio was 94.3% in the third quarter of 2024, higher than the 92.2% reported in the same period in 2023, and included 4.4 points in catastrophe losses.

Overall, the company's growth in book value per share plus dividends was 8.7% for the three months ended September 30, 2024, and 19.3% for the nine months ended September 30, 2024. Excluding accumulated other comprehensive income, the growth in book value per share plus dividends was 4.0% for the three months ended September 30, 2024, and 13.9% for the nine months ended September 30, 2024.

Today the company's shares have moved 4.5% to a price of $133.21. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.