American Financial (AFG) Reports $10.57 Earnings per Share for 2024

By Tamara Parker • Wednesday, February 05 10:26 • Permanent Link

American Financial Group, Inc. has announced its fourth quarter and full year results, revealing a net earnings per share of $3.03 in the fourth quarter and full year net earnings per share of $10.57. The overall average renewal rate increases, excluding workers’ compensation, were reported at 8%.

In the fourth quarter of 2024, the net earnings were $255 million ($3.03 per share) compared to $263 million ($3.13 per share) in the same period in 2023. The full-year net earnings for 2024 were $10.57 per share, compared to $10.05 per share in 2023. The return on equity (ROE) for the full year of 2024 was 19.0%, compared to 18.8% in 2023.

Core net operating earnings were $262 million ($3.12 per share) for the 2024 fourth quarter, compared to $238 million ($2.84 per share) in the 2023 fourth quarter. This reflects a year-over-year increase due to higher property and casualty (P&C) net investment income, including improved returns on alternative investments, partially offset by lower P&C underwriting profit.

The company also reported that the specialty property and casualty insurance operations generated a strong 89.0% combined ratio in the fourth quarter of 2024, while the property and transportation group reported an underwriting profit of $82 million, and the specialty casualty group reported an underwriting profit of $82 million.

In terms of capital management, the total capital returned to shareholders was approximately $791 million for the full year, which included $545 million ($6.50 per share) in special dividends. The company's book value per share, excluding accumulated other comprehensive income, was $56.03 at December 31, 2024, representing a 5.4% growth for the year.

Looking ahead to 2025, the company expects core operating earnings per share of approximately $10.50 and a very strong core operating return on equity, excluding accumulated other comprehensive income, of approximately 18%.

Following these announcements, the company's shares moved -5.2%, and are now trading at a price of $128.88. If you want to know more, read the company's complete 8-K report 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.