Equibles

8-K

AMERICAN FINANCIAL GROUP INC (AFG)

8-K 2020-10-29 For: 2020-10-28
View Original
Added on April 04, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 28, 2020

AMERICAN FINANCIAL GROUP, INC.

(Exact name of registrant as specified in its charter)

Ohio 1-13653 31-1544320
(State or other jurisdiction<br> <br>of incorporation) (Commission<br> <br>File Number) (IRS Employer<br> <br>Identification No.)
301 East Fourth Street, Cincinnati, OH 45202
--- ---
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code 513-579-2121

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
--- ---
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
--- ---
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
--- ---

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading<br> <br>Symbol(s) Name of each exchange<br> <br>on which registered
Common Stock AFG New York Stock Exchange
6% Subordinated Debentures due November 15, 2055 AFGH New York Stock Exchange
5.875% Subordinated Debentures due March 30, 2059 AFGB New York Stock Exchange
5.125% Subordinated Debentures due December 15, 2059 AFGC New York Stock Exchange
5.625% Subordinated Debentures due June 1, 2060 AFGD New York Stock Exchange
4.5% Subordinated Debentures due September 15, 2060 AFGE New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Section 2 - Financial Information

Item 2.02 Results Of Operations And Financial Condition.

Reference is made to the press release of American Financial Group, Inc. (the “Company”) relating to the announcement of the Company’s results of operations for the third quarter of 2020 and the availability of the Investor Supplement on the Company’s website. The press release was issued on October 28, 2020. A copy of the press release is attached to this Form 8-K as Exhibit 99.1 and a copy of the Investor Supplement is attached as Exhibit 99.2 and are incorporated herein by reference.

The information contained herein shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 as amended (the “Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.
(a) Financial statements of business acquired. Not applicable.
--- ---
(b) Pro forma financial information. Not applicable.
--- ---
(c) Shell company transactions. Not applicable
--- ---
(d) Exhibits
--- ---
Exhibit<br>No. Description
--- ---
99.1 Earnings Release dated October 28, 2020, reporting American Financial Group Inc. results for the quarter ended September 30, 2020.
99.2 Investor Supplement – Third Quarter 2020
104 Cover page Interactive Date File (embedded within Inline XBRL document)

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

AMERICAN FINANCIAL GROUP, INC.
Date: October 29, 2020
By: /s/ Karl J. Grafe
Karl J. Grafe
Vice President

3

EX-99.1

Exhibit 99.1

Press Release<br><br><br><br> <br>For Immediate Release

American Financial Group, Inc. Announces Third Quarter Results

• Net earnings per share of $1.86; includes ($0.59) per share inafter-tax non-core items
• Core net operating earnings of $2.45 per share; includes $0.61 per share in earnings from alternativeinvestments
--- ---
• Third quarter annualized ROE of 12.9%; annualized core operating ROE of 17.1%<br>
--- ---
• Share repurchases of $96 million during the quarter (average price of$66.01 per share)
--- ---
• Parent company cash of $577 million and excess capital of$1 billion at September 30, 2020
--- ---
• P&C renewal pricing up 13% overall; highest in 15 years
--- ---
• Full year 2020 core net operating earnings guidance excluding the impact of alternative investments$7.00 - $7.50 per share, an increase from our previous guidance of $6.60 - $7.40 per share
--- ---

CINCINNATI – October 28, 2020 – American Financial Group, Inc. (NYSE: AFG) today reported 2020 third quarter net earnings attributable to shareholders of $164 million ($1.86 per share) compared to $147 million ($1.62 per share) for the 2019 third quarter. Net earnings for the 2020 third quarter included net unfavorable after-tax non-core items aggregating $53 million ($0.59 per share loss). These items included after-tax charges of $54 million ($0.61 per share) to strengthen the Company’s asbestos and environmental (“A&E”) reserves, a negative impact of $34 million ($0.38 per share) for annuity non-core items – primarily the result of unlocking of actuarial assumptions, non-core after-tax realized gains on securities of $35 million ($0.40 per share) and $3 million ($0.03 per share) in net favorable items related to Neon Exited Lines. Comparatively, net earnings in the 2019 third quarter included net unfavorable after-tax non-core items of $58 million ($0.63 per share loss). Other details may be found in the table below. Book value per share was $72.65 per share at September 30, 2020. Annualized return on equity was 12.9% and 11.0% for the third quarters of 2020 and 2019, respectively.

Core net operating earnings were $217 million ($2.45 per share) for the 2020 third quarter, compared to $205 million ($2.25 per share) in the 2019 third quarter. Core net operating earnings for the third quarters of 2020 and 2019 generated annualized returns on equity of 17.1% and 15.3%, respectively. The year-over-year increase was primarily the result of higher underwriting profit in the Specialty Property and Casualty (“P&C”) insurance operations and higher earnings from the Company’s $2.3 billion of alternative investments that are marked to market through core operating earnings. These items were partially offset by lower other property and casualty net investment income. The COVID-19 pandemic has had widespread financial and economic impacts, which adversely impacted returns on AFG’s alternative investments during the first six months of 2020. Excluding the impact of alternative investments, AFG’s third quarter 2020 core net operating earnings decreased $3 million year-over-year. Additional details may be found in the table below.

Page 1

Three Months Ended September 30,
Components of Pretax Core Operating Earnings 2020 2019 2020 2019 2020 2019
Dollars in millions, except per share amounts Before Impact of<br>Alternative Investments Alternative<br>Investments, net of DAC Core Net Operating<br>Earnings, as reported
P&C Pretax Core Operating Earnings $ 177 $ 169 $ 28 $ 25 $ 205 $ 194
Annuity Pretax Core Operating Earnings 81 75 40 25 121 100
Other Expenses (28 ) (22 ) — — (28 ) (22 )
Holding Company Interest Expense (24 ) (17 ) — — (24 ) (17 )
Pretax Core Operating Earnings 206 205 68 50 274 255
Related Income Taxes 43 39 14 11 57 50
Core Net Operating Earnings $ 163 **** $ 166 **** $ 54 $ 39 $ 217 **** $ 205 ****
Core Net Operating Earnings Per Share $ 1.84 $ 1.82 $ 0.61 $ 0.43 $ 2.45 $ 2.25
Weighted Avg Diluted Shares Outstanding 88.5 91.1 88.5 91.1 88.5 91.1

Book value per share, excluding unrealized gains related to fixed maturities, was $58.29 per share at September 30, 2020. In the 2020 third quarter, AFG repurchased 1.45 million shares of its common stock at an average price of $66.01 per share, for a total of approximately $96 million.

Beginning with the second quarter of 2019, AFG changed the way it defines annuity core operating earnings to exclude the impact of items that are not necessarily indicative of operating trends. Core net operating earnings for periods prior to the change have not been adjusted, however results for the nine month period ended September 30, 2019 are reconciled to historically reported Annuity Segment core operating earnings on page 6 of this release. Beginning prospectively with the first quarter of 2020, AFG’s core net operating earnings for its property and casualty insurance segment exclude the run-off operations of Neon (“Neon Exited Lines”). The Neon Exited Lines impact is highlighted in the table below.

AFG’s net earnings attributable to shareholders, determined in accordance with U.S. generally accepted accounting principles (GAAP), include certain items that may not be indicative of its ongoing core operations. The table below identifies such items and reconciles net earnings attributable to shareholders to core net operating earnings, a non-GAAP financial measure. AFG believes that its core net operating earnings provides management, financial analysts, ratings agencies and investors with an understanding of the results from the ongoing operations of the Company by excluding the impact of net realized gains and losses, annuity non-core earnings and losses, and special items that are not necessarily indicative of operating trends. AFG’s management uses core net operating earnings to evaluate financial performance against historical results because it believes this provides a more comparable measure of its continuing business. Core net operating earnings is also used by AFG’s management as a basis for strategic planning and forecasting.

Page 2

Dollars in millions, except per share amounts Three months ended<br>September 30, Nine months ended<br>September 30,
2020 2019 2020 2019
Components of net earnings attributable to shareholders:
Core operating earnings before income taxes $ 274 $ 251 $ 600 $ 716
Pretax non-core items:
Realized gains (losses) on securities 45 (18 ) (302 ) 222
Annuity non-core earnings (losses) (43 ) (27 ) (140 ) (60 )
Special A&E charges**^(b)^** (68 ) (29 ) (68 ) (29 )
Neon Exited Lines (70 ) — (122 ) —
Other (4 ) — (4 ) —
Earnings (loss) before income taxes 134 177 (36 ) 849
Provision (benefit) for income taxes:
Core operating earnings 57 50 117 143
Non-core items (87 ) (16 ) (180 ) 28
Total provision (benefit) for income taxes (30 ) 34 (63 ) 171
Net earnings, including noncontrolling interests 164 143 27 678
Less net earnings (losses) attributable to noncontrolling interests:
Core operating earnings (losses) — (4 ) — (8 )
Non-core items — — (13 ) —
Total net earnings (losses) attributable to noncontrolling interests — (4 ) (13 ) (8 )
Net earnings attributable to shareholders $ 164 **** $ 147 **** $ 40 **** $ 686 ****
Net earnings:
Core net operating<br>earnings**^(a)^** $ 217 $ 205 $ 483 $ 581
Realized gains (losses) on securities 35 (14 ) (239 ) 176
Annuity non-core earnings (losses) (34 ) (21 ) (111 ) (48 )
Special A&E charges**^(b)^** (54 ) (23 ) (54 ) (23 )
Neon Exited Lines 3 — (36 ) —
Other (3 ) — (3 ) —
Net earnings attributable to shareholders $ 164 **** $ 147 **** $ 40 **** $ 686 ****
Components of Earnings Per Share:
Core net operatingearnings^(a)^ $ 2.45 **** $ 2.25 **** $ 5.37 **** $ 6.39 ****
Non-core Items:
Realized gains (losses) on securities 0.40 (0.15 ) (2.64 ) 1.93
Annuity non-core earnings (losses) (0.38 ) (0.23 ) (1.23 ) (0.52 )
Special A&E charges**^(b)^** (0.61 ) (0.25 ) (0.61 ) (0.25 )
Neon Exited Lines 0.03 — (0.41 ) —
Other (0.03 ) — (0.03 ) —
Diluted Earnings Per Share $ 1.86 **** $ 1.62 **** $ 0.45 **** $ 7.55 ****

Footnotes (a) and (b) are contained in the accompanying Notes to Financial Schedules at the end ofthis release.

Carl H. Lindner III and S. Craig Lindner, AFG’s Co-Chief Executive Officers, issued this statement: “Results in our core operating businesses were excellent during the third quarter, producing an annualized core operating ROE in excess of 17%. We are especially pleased with the recovery in and performance of our alternative investments, which are marked to market through core earnings. Our liquidity and excess capital afford us the flexibility to effectively address and respond to the uncertainties introduced by COVID-19, and we believe our results demonstrate the value of our disciplined operating philosophy and portfolio of diversified specialty insurance businesses.

“AFG had approximately $1 billion of excess capital at September 30, 2020. This number included parent company cash of approximately $600 million. As illustrated in the table below, taking into account the $375 to $400 million in additional excess capital created by our recently announced annuity block reinsurance agreement and adjusting for the November redemption of our 6% Subordinated Debentures due 2055, AFG’s excess capital on a pro forma basis at September 30, 2020 would be approximately $1.2 billion. Our insurance subsidiaries are projected to have capital in excess of the levels expected by ratings agencies in order to maintain their current ratings.”

Page 3

Dollars in millions Parent Cash Excess Capital
September 30, 2020 Actual $ 577 $ 1,043
Pro Forma Impacts:
Block Reinsurance Agreement and GALIC dividend* $ 200 $ 375
Debt Redemption (150 ) (192 )
September 30, 2020 Pro Forma $ 627 $ 1,226
* Dividend to be paid by GALIC to AFG parent on November 2, 2020.
--- ---

AFG has provided full year 2020 core net operating earnings per share guidance excluding earnings or losses from alternative investments (marked-to-market through core operating earnings), due to the uncertainty of the implications of COVID-19 and the resulting volatility in the financial markets, particularly in the first six months of 2020. AFG now expects its 2020 core net operating earnings per share excluding alternative investments to be in the range of $7.00 to $7.50 per share, an increase from our previous guidance of $6.60 to $7.40 per share. For comparison, AFG’s 2019 full year core operating earnings per share excluding alternative investments were $7.11. In addition to excluding earnings on alternative investments where indicated, our 2020 core earnings per share expectations and guidance excludes non-core items such as realized gains and losses, annuity non-core earnings and losses, and other significant items that are not able to be estimated with reasonable precision, or that may not be indicative of ongoing operations. Furthermore, the above guidance reflects the impacts of (i) the continued negative impact of low interest rates (ii) a decline in property and casualty premiums as indicated in our detailed guidance, (iii) renewal rate actions taken on annuity policies near or after the end of their surrender charge period, and (iv) our current estimates of the impact of COVID-19 on AFG’s results of operations.

Specialty Property and Casualty Insurance Operations

Pretax core operating earnings in AFG’s P&C Insurance Segment were $205 million in the third quarter of 2020, compared to $194 million in the prior year period, an increase of $11 million, or 6%. Higher year-over-year P&C underwriting profit and higher earnings from alternative investments were partially offset by lower other P&C net investment income, primarily the result of higher average cash balances and lower interest rates.

The Specialty P&C insurance operations generated an underwriting profit of $104 million in the 2020 third quarter, compared to $88 million in the third quarter of 2019. Higher year-over-year underwriting profits in our Specialty Casualty and Property and Transportation Groups were partially offset by lower underwriting profits in our Specialty Financial Group. The third quarter 2020 combined ratio of 92.1% was 1.9 points lower than the 94.0% reported in the comparable prior year period, and includes 2.7 points in catastrophe losses. By comparison, catastrophe losses in the third quarter of 2019 added 1.6 points. Third quarter 2020 results included 3.7 points of favorable prior year reserve development, compared to 3.1 points in the comparable prior year period.

AFG did not record any additional reserve charges for COVID-19 in the third quarter. Given the uncertainties surrounding the ultimate number or scope of claims relating to the pandemic, approximately 82% of AFG’s COVID-19 related reserves from the $95 million in charges recorded in the first half of 2020 are held as incurred but not reported (IBNR). These reserves represent the Company’s current best estimate of losses from the pandemic and related economic disruption.

Page 4

Gross written and net written premiums were down 5% and 8%, respectively, for the third quarter of 2020, when compared to the same period in 2019, primarily as the result of the run-off of Neon. Excluding the impact of the Neon run-off, gross and net written premiums decreased 1% and 3%, respectively, year-over-year.

Average renewal pricing across our entire P&C Group was up approximately 13% for the quarter. Excluding our workers’ compensation business, renewal pricing was up approximately 16%. Both measures reflect further improvement from renewal rate increases achieved in the first half of 2020. Renewal pricing is the highest we have achieved in more than fifteen years in each of our Specialty P&C sub-segments and in our Specialty P&C Group overall.

Further details about AFG’s Specialty P&C operations may be found in the accompanying schedules.

The Property and Transportation Group reported 2020 third quarter underwriting profit of $47 million, compared to $38 million in the third quarter of 2019. Higher underwriting profitability in our non-crop agricultural and ocean marine businesses and improved results in our aviation business and Singapore Branch were partially offset by lower year-over-year underwriting profits in our transportation and property & inland marine businesses. Catastrophe losses for this group were $18 million in the third quarter of 2020, compared to $8 million in the comparable prior year period.

Gross and net written premiums for the third quarter of 2020 were 5% and 4% lower, respectively, than the comparable 2019 period. The decrease was largely the result of lower year-over-year crop premiums resulting from delayed premium reporting in 2019 due to late planting of corn and soybean crops. Excluding the impact of crop insurance, third quarter 2020 gross written premiums increased 1% and net written premiums decreased 2% when compared to the 2019 third quarter. Lower premiums in our transportation business, due primarily to the return of premiums and reduced exposures as a result of COVID-19, were tempered by growth and new business opportunities in our property & inland marine and ocean marine businesses. Overall renewal rates in this group increased 6% on average for the third quarter of 2020 with continued strong renewal rate momentum.

The Specialty Casualty Group reported a 2020 third quarter underwriting profit of $53 million, compared to $23 million in the third quarter of 2019. Higher year-over year underwriting profits in our excess and surplus and excess liability businesses and the impact of underwriting losses at Neon in the third quarter of 2019 were partially offset by higher adverse development in our general liability business and lower underwriting profits in our targeted markets and workers’ compensation businesses. Underwriting profitability in our workers’ compensation business overall continues to be very strong. Catastrophe losses for this group were $8 million and $10 million in the third quarters of 2020 and 2019, respectively.

Gross and net written premiums decreased 5% and 14%, respectively, for the third quarter of 2020 when compared to the same prior year period, primarily due to the run-off of Neon. Excluding the impact of Neon, gross written premiums increased 6% and net written premiums decreased by 1% in the third quarter of 2020 when compared to the same period in 2019. The COVID-19 pandemic has resulted in reduced exposures in our workers’ compensation businesses, which when coupled with renewal rate decreases, also were significant contributors to the lower year-over-year premiums. Gross and net written premiums in this group grew by 13% and 5%, respectively, when excluding both Neon and workers’ compensation. Significant renewal rate increases, coupled with new business opportunities in our excess and surplus, excess liability and executive liability businesses contributed to this growth. Renewal pricing for this group was up 17% in the third quarter. Excluding our workers’ compensation businesses, renewal rates in this group were up approximately 25%. Renewal rates in our Specialty Casualty Group are an improvement from renewal rate increases achieved in the first half of 2020.

Page 5

The Specialty Financial Group reported an underwriting profit of $13 million in the third quarter of 2020, compared to $26 million in the third quarter of 2019. Higher catastrophe losses in our financial institutions business were the primary driver of the decrease. Catastrophe losses for this group were $13 million and $3 million in the third quarters of 2020 and 2019, respectively.

Gross and net written premiums for the third quarter of 2020 were 11% and 8% lower, respectively, when compared to the same 2019 period. Lower premiums resulted primarily from the impact of various state regulations regarding moratoria on policy cancelations and the placement of forced coverage in our financial institutions business, heightened risk selection that has reduced new business in our trade credit business and COVID-related economic impacts on our surety business. These decreases were partially offset by year-over-year growth in our fidelity and crime business. Renewal pricing in this group was up approximately 7% for the quarter and is an improvement from renewal rate increases achieved in the first half of 2020.

Carl Lindner III stated, “I’m very pleased with the excellent underwriting results produced by our Specialty P&C Group during the quarter, especially with higher frequency of catastrophe losses across the industry and continued uncertainty from the COVID-19 pandemic. We achieved broad-based pricing increases in the quarter, with exceptionally strong renewal pricing in our longer-tailed liability businesses. Based on our results through the nine months of the year and our current expectations of the impact of COVID-19, we now expect P&C pretax core operating earnings, excluding the impact of alternative investments, in the range of $650 million to $690 million, an increase from our previous guidance of $615 million to $675 million. We continue to expect an overall 2020 calendar year combined ratio in the range of 92% to 94%. We expect net written premiums to be down 5% to 9% when compared to the $5.3 billion reported in 2019, due primarily to the run-off of Neon. Excluding the impact of Neon, net written premiums are estimated to be 1% lower to 3% higher than the premiums reported in 2019.”

Further details about AFG’s Specialty P&C operations may be found in the accompanying schedules and in our Quarterly Investor Supplement, which is posted on our website.

Annuity Segment

Annuity Core Operating Earnings – The table below reflects annuity core operating earnings under AFG’s definition utilized beginning in the second quarter of 2019. Annuity core operating earnings for the first nine months of 2019 are reconciled to previously reported annuity operating results.

Dollars in millions Three months ended<br>September 30, Nine months ended<br>September 30,
2020 2019 2020 2019
Components of Pretax Annuity Core Operating Earnings:
Pretax core operating earnings before alternative investments $ 81 $ 75 $ 244 $ 225
Amounts previously reported as core operating, net — — — (11 )
Pretax Annuity core operating earnings before alternative investments 81 75 244 214
Alternative Investments, net of DAC 40 25 (14 ) 80
Pretax Annuity Core Operating Earnings, as reported $ 121 **** $ 100 **** $ 230 **** $ 294 ****
Year over year growth in quarterly average invested assets 6 % 11 % 7 % 11 %
Alternative investments – change in market value during the period<br>(before DAC<br>impact) 3.4 % 2.4 % 0.2 % 7.9 %

Page 6

Third quarter 2020 pretax annuity core operating earnings before earnings or losses from alternative investments increased 8% year-over-year, reflecting growth in annuity assets, higher one-time investment income, the impact of a strong stock market, lower expenses and a reduction in cost of funds due to renewal rate actions by the company. These favorable items, which include items that may not necessarily recur, were offset by a decline in overall investment yields.

Earnings from alternative investments that are marked to market through core operating earnings vary from period to period based on the reported results of the underlying investments, and are generally reported on a quarter lag. The COVID-19 pandemic has had widespread financial and economic implications, which adversely impacted returns on the Annuity Segment’s $1.4 billion of alternative investments during the first six months of 2020.

Craig Lindner stated, “AFG’s Annuity Segment achieved an operating return on equity of nearly 15% in the third quarter of 2020, compared to 12% in the comparable quarter last year. We believe that the Annuity Segment’s third quarter increases in comparable returns and core operating earnings (both before and after the impact of alternative investments) demonstrate the strong fundamentals of our business. We were pleased that returns on alternative investments in the third quarter of 2020 increased sharply from the previous quarters. The average annual return on these investments over the past five calendar years was nearly 10% and the annualized return in the third quarter of 2020 was nearly 14%. This return was exceptionally high, however, and we expect a lower return on these investments in the fourth quarter.”

Annuity Premiums – AFG’s Annuity Segment reported gross statutory premiums of $871 million ($703 million, net of reinsurance) in the third quarter of 2020, compared to $1.08 billion gross and net premiums in the third quarter of 2019, a decrease of 19%. Annuity sales were lower in all channels in the 2020 third quarter as a result of factors related to the COVID-19 pandemic that have significantly impacted our access to distribution partners, as well as their access to current and prospective clients.

Craig Lindner commented, “Although gross annuity premiums in the third quarter of 2020 were down from the comparable period in 2019, I am extremely pleased that sales in the third quarter of 2020 were up more than 25% from the previous quarter. Furthermore, our sales in the Financial Institutions channel for the month of September 2020 exceeded comparable monthly sales in 2019. We are clearly seeing positive momentum in premiums, and as a result, we are raising our premium guidance; our current best estimate is that 2020 gross annuity premiums will be between $3.7 billion and $4.0 billion, and will result in growth in average assets and reserves of 5% to 7% in 2020. This growth also reflects higher persistency in 2020 compared to 2019, which we attribute, in large part, to the low interest rate environment.”

2020 Annuity Core Operating Earnings Guidance, Excluding Alternative Investments – Pretax Annuity core operating earnings for the full year of 2020, excluding earnings from alternative investments, are expected to be in the range of $310 million to $325 million, an increase over our most recent guidance of $300 million to $320 million. By comparison, annuity core operating earnings excluding alternative investments were $298 million in 2019.

This guidance reflects (i) the continued negative impact of low short-term interest rates on the Annuity Segment’s approximately $5 billion net investment in cash and floating rate securities, and (ii) the favorable impact of more aggressive renewal rate actions taken by AFG on annuity policies near or after the end of their surrender charge period. We estimate our current renewal rate strategy will, once fully implemented and depending on surrender activity, result in annualized crediting rate savings of $40 to $60 million (before DAC), which is the equivalent of reducing our overall cost of funds by 10 to 15 basis points. Some of these savings have already been reflected in our reported results, and our guidance reflects expected additional savings. Guidance also assumes that the stock market and longer-term interest rates remain relatively flat over the balance of 2020.

Page 7

While AFG expects continued positive returns on its alternative investments in the fourth quarter of 2020, it is difficult to forecast the returns on these investments due to ongoing volatility.

Craig Lindner added, “The results of AFG’s Annuity Segment, and our guidance, demonstrate our strong business fundamentals, our pricing discipline and the success of our operating model. Following the reinsurance treaty, we have the ability to lower the crediting rates on $26 billion of annuity reserves by an average of 108 basis points, giving us a great deal of flexibility in helping us manage returns on our inforce business. Importantly, our business continues to have a very strong balance sheet, with unrealized gains on our annuity bond portfolio of $2.7 billion at September 30, 2020 and capital comfortably in excess of the amounts indicated by rating agencies to maintain our ratings. The previously announced block reinsurance transaction will further increase the amount of excess capital in both the Annuity Segment and in AFG.”

Annuity Ratings Upgradeto A+ – Earlier today A.M. Best announced that it upgraded the Financial Strength Ratings of our key annuity subsidiaries, Great American Life Insurance Company (GALIC) and its wholly owned subsidiary, Annuity Investors Life Insurance Company (AILIC), to A+ (Superior) from A (Excellent). A.M. Best has indicated that these A+ ratings reflect the quality of GALIC and AILIC’s balance sheets, strong operating performance, appropriate enterprise risk management and strong risk-adjusted capital position.

Annuity Non-Core Loss – In the third quarter of 2020, AFG reported an after-tax annuity non-core loss of $34 million ($0.38 per share loss), which primarily reflects the unfavorable impact of an unlocking adjustment discussed below.

AFG performed its annual detailed review (unlocking) of the actuarial assumptions underlying its annuity operations in the third quarter of 2020; this review resulted in a net after-tax unlocking charge of $36 million ($0.41 per share loss). The primary driver of this charge was a decrease in the assumed ultimate 10-year US Treasury rate. AFG is now assuming that the 10-year US Treasury rate will increase over ten years to 2.75%, down from our previous assumption of 3.50%.

This lower interest rate assumption resulted in (i) a negative impact related to lower expected future investment income (ii) a negative impact related to changes in assumed persistency outside the surrender period on policies without guaranteed withdrawal benefits, and (iii) a positive impact related to lower expected costs for FIA renewal options resulting from anticipated renewal rate actions.

Annuity Block Reinsurance Agreement – As previously announced, AFG’s Annuity subsidiary, Great American Life Insurance Company (“GALIC”) entered into a reinsurance agreement with Commonwealth Annuity and Life Insurance Company (“Commonwealth”), a subsidiary of Global Atlantic Financial Group Limited in October 2020. Under the terms of the agreement, GALIC ceded approximately $5.7 billion (statutory basis) of inforce traditional fixed and indexed annuities, representing approximately 15% of its inforce business, and transferred related investments to Commonwealth.

This transaction is expected to free up between $300 million and $325 million of GALIC’s statutory capital and result in higher core operating earnings and returns in both the Annuity Segment and AFG.

More information about premiums and the results of operations for our Annuity Segment may be found in AFG’s Quarterly Investor Supplement.

Page 8

A&E Reserves

During the third quarter of 2020, AFG conducted an external study of its asbestos and environmental exposures relating to the run-off operations of its P&C Group and its exposures related to former railroad and manufacturing operations and sites. The study resulted in non-core after-tax special charges of $54 million ($68 million pretax) to increase AFG’s A&E reserves.

The P&C Group’s asbestos reserves were increased by $26 million (net of reinsurance) and its environmental reserves were increased by $21 million (net of reinsurance). At September 30, 2020, the P&C Group’s insurance reserves include A&E reserves of $428 million, net of reinsurance recoverables. At September 30, 2020, the property and casualty insurance segment’s three-year survival ratios were 21.3 times paid losses for asbestos reserves, 19.6 times paid losses for environmental reserves and 20.5 times paid losses for total A&E reserves. These ratios compare favorably with industry data compiled by A.M. Best as of December 31, 2019, which indicate that industry survival ratios were 7.9 for asbestos, 8.5 for environmental, and 8.1 for total A&E reserves.

In addition, the 2020 external study encompassed reserves for asbestos and environmental exposures of our former railroad and manufacturing operations. As a result of the study, AFG increased its reserve for environmental exposures by $21 million, due primarily to movements across several sites that reflect changes in the scope and costs of investigation, remediation and ongoing operation and maintenance costs.

Investments

AFG recorded third quarter 2020 net realized gains on securities of $35 million ($0.40 per share) after tax and after deferred acquisition costs (DAC), which included $17 million ($0.19 per share) in after-tax, after-DAC net gains to adjust equity securities that the Company continued to own, to fair value. By comparison, AFG recorded net realized losses on securities of $14 million ($0.15 per share) in the comparable 2019 period.

Unrealized gains on fixed maturities were $1.21 billion after tax and after DAC at September 30, 2020, an increase of $350 million since year end. Our portfolio continues to be high quality, with 90% of our fixed maturity portfolio rated investment grade and 97% with a National Association of Insurance Commissioners’ designation of NAIC 1 or 2, its highest two categories.

For the nine months ended September 30, 2020, P&C net investment income was approximately 20% lower than the comparable 2019 period. Excluding the impact of alternative investments, P&C net investment income was 11% lower year-over-year, reflecting lower market interest rates and lower dividend income.

More information about the components of our investment portfolio may be found in our Quarterly Investor Supplement, which is posted on our website.

Neon Exited Lines

As announced on September 28, 2020, AFG reached a definitive agreement to sell GAI Holding Bermuda and its subsidiaries, comprising the legal entities that own its Lloyd’s of London insurer, Neon, to RiverStone Holdings Limited (“RiverStone”). The transaction is expected to close in the fourth quarter of 2020, subject to customary conditions, including receipt of required regulatory approvals.

Page 9

AFG recorded $70 million in non-core losses related to the runoff of this business in the third quarter of 2020, which, in accordance with generally accepted accounting principles, included an estimated $30 million expected loss on the sale of the business. In conjunction with the sale, AFG recognized a tax benefit of $73 million, resulting in a net favorable $3 million ($0.03 per share) non-core, after-tax impact from Neon Exited Lines in the third quarter of 2020.

About American Financial Group, Inc.

American Financial Group is an insurance holding company, based in Cincinnati, Ohio with assets of approximately $70 billion as of September 30, 2020. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of traditional fixed and indexed annuities in the retail, financial institutions, broker-dealer, and registered investment advisor markets. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.

Forward Looking Statements

This press release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this press release not dealing with historical results are forward-looking and are based on estimates, assumptions and projections. Examples of such forward-looking statements include statements relating to: the Company’s expectations concerning market and other conditions and their effect on future premiums, revenues, earnings, investment activities and the amount and timing of share repurchases; recoverability of asset values; expected losses and the adequacy of reserves for asbestos, environmental pollution and mass tort claims; rate changes; and improved loss experience.

Actual results and/or financial condition could differ materially from those contained in or implied by such forward-looking statements for a variety of reasons including, but not limited to: changes in financial, political and economic conditions, including changes in interest and inflation rates, currency fluctuations and extended economic recessions or expansions in the U.S. and/or abroad; performance of securities markets, including the cost of equity index options; new legislation or declines in credit quality or credit ratings that could have a material impact on the valuation of securities in AFG’s investment portfolio; the availability of capital; changes in insurance law or regulation, including changes in statutory accounting rules and changes in regulation of the Lloyd’s market, including modifications to capital requirements; changes in costs associated with the exit from the Lloyd’s market and the run-off of AFG’s Lloyd’s-based insurer, Neon; the effects of the COVID-19 outbreak, including the effects on the international and national economy and credit markets, legislative or regulatory developments affecting the insurance industry, quarantines or other travel or health-related restrictions; changes in the legal environment affecting AFG or its customers; tax law and accounting changes; levels of natural catastrophes and severe weather, terrorist activities (including any nuclear, biological, chemical or radiological events), incidents of war or losses resulting from pandemics, civil unrest and other major losses; disruption caused by cyber-attacks or other technology breaches or failures by AFG or its business partners and service providers, which could negatively impact AFG’s business and/or expose AFG to litigation; development of insurance loss reserves and establishment of other reserves, particularly with respect to amounts associated with asbestos and environmental claims; availability of reinsurance and ability of reinsurers to pay their obligations; trends in persistency and mortality; competitive pressures; the ability to obtain adequate rates and policy terms; changes in AFG’s credit ratings or the financial strength ratings assigned by major ratings agencies to AFG’s operating subsidiaries; the impact of the conditions in the international financial markets and the global economy relating to AFG’s international operations; and other factors identified in AFG’s filings with the Securities and Exchange Commission.

Page 10

The forward-looking statements herein are made only as of the date of this press release. The Company assumes no obligation to publicly update any forward-looking statements.

Conference Call

The Company will hold a conference call to discuss 2020 third quarter results at 11:30 a.m. (ET) tomorrow, Thursday, October 29, 2020. Toll-free telephone access will be available by dialing 1-877-459-8719 (international dial-in 424-276-6843). The conference ID for the live call is 9486816. Please dial in five to ten minutes prior to the scheduled start time of the call.

A replay will be available two hours following the completion of the call and will remain available until 11:59 p.m. (ET) on November 5, 2020. To listen to the replay, dial 1-855-859-2056 (international dial-in 404-537-3406) and provide the conference ID 9486816.

The conference call and accompanying webcast slides will also be broadcast live over the Internet. To access the event, click the following link: https://www.afginc.com/news-and-events/event-calendar. Alternatively, you can choose Events from the Investor Relations page at www.AFGinc.com.

An archived webcast will be available immediately after the call via the same link on our website until November 5, 2020 at 11:59 p.m. (ET).

Contact:

Diane P. Weidner, IRC

Vice President – Investor & Media Relations

(513) 369-5713

Websites:

www.AFGinc.com

www.GreatAmericanInsuranceGroup.com

#

(Financial summaries follow)

This earnings release and AFG’s Quarterly Investor Supplement are available in the Investor Relations section of AFG’s website: www.AFGinc.com.

AFG2020-28

Page 11

AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES

SUMMARY OF EARNINGS AND SELECTED BALANCE SHEET DATA

(Dollars in Millions, Except Per Share Data)

Three months ended<br>September 30, Nine months ended<br>September 30,
2020 2019 2020 2019
Revenues
P&C insurance net earned premiums $ 1,381 $ 1,442 $ 3,774 $ 3,815
Net investment income 572 588 1,584 1,710
Realized gains (losses) on:
Securities 45 (18 ) (302 ) 222
Subsidiaries (30 ) — (30 ) —
Income of managed investment entities:
Investment income 46 67 154 206
Gain (loss) on change in fair value of assets/liabilities 1 (14 ) (47 ) (16 )
Other income 45 58 153 170
Total revenues 2,060 2,123 5,286 6,107
Costs and expenses
P&C insurance losses & expenses 1,369 1,394 3,676 3,634
Annuity and supplemental insurance benefits & expenses 375 370 1,155 1,081
Interest charges on borrowed money 24 17 64 50
Expenses of managed investment entities 31 54 117 168
Other expenses 127 111 310 325
Total costs and expenses 1,926 1,946 5,322 5,258
Earnings (loss) before income taxes 134 177 (36 ) 849
Provision (benefit) for income taxes (30 ) 34 (63 ) 171
Net earnings, including noncontrolling interests 164 143 27 678
Less: Net earnings (loss) attributable to noncontrolling interests — (4 ) (13 ) (8 )
Net earnings attributable to shareholders $ 164 $ 147 $ 40 $ 686
Diluted Earnings per Common Share $ 1.86 $ 1.62 $ 0.45 $ 7.55
Average number of diluted shares 88.5 91.1 89.9 90.9
Selected Balance Sheet Data: September 30,<br>2020 December 31,<br>2019
--- --- --- --- ---
Total cash and investments $ 58,087 $ 55,252
Long-term debt $ 2,108 $ 1,473
Shareholders’ equity^(c)^ $ 6,340 $ 6,269
Shareholders’ equity (excluding unrealized gains/losses related to fixed maturities)^(c)^ $ 5,087 $ 5,390
Book value per share $ 72.65 $ 69.43
Book value per share (excluding unrealized gains/losses related to fixed maturities) $ 58.29 $ 59.70
Common Shares Outstanding 87.3 90.3

Footnote (c) is contained in the accompanying Notes to Financial Schedules at the end of this release.

Page 12

AMERICAN FINANCIAL GROUP, INC.

SPECIALTY P&C OPERATIONS

(Dollars in Millions)

Three months ended<br>September 30, Pct.<br>Change Nine months ended<br>September 30, Pct.<br>Change
2020 2019 2020 2019
Gross written premiums $ 2,223 $ 2,351 (5 %) $ 5,288 $ 5,550 (5 %)
Net written premiums $ 1,488 $ 1,618 (8 %) $ 3,776 $ 4,029 (6 %)
Ratios (GAAP):
Loss & LAE ratio 63.8 % 63.1 % 61.8 % 60.9 %
Underwriting expense ratio 28.3 % 30.9 % 31.4 % 32.9 %
Specialty Combined Ratio 92.1 % 94.0 % 93.2 % 93.8 %
Combined Ratio – P&C Segment 98.8 % 96.3 % 97.0 % 94.7 %
SupplementalInformation:^(d)^
Gross Written Premiums:
Property & Transportation $ 1,061 $ 1,113 (5 %) $ 2,166 $ 2,131 2 %
Specialty Casualty 978 1,031 (5 %) 2,579 2,839 (9 %)
Specialty Financial 184 207 (11 %) 543 580 (6 %)
$ 2,223 $ 2,351 (5 %) $ 5,288 $ 5,550 (5 %)
Net Written Premiums:
Property & Transportation $ 635 $ 661 (4 %) $ 1,447 $ 1,427 1 %
Specialty Casualty 642 744 (14 %) 1,739 2,032 (14 %)
Specialty Financial 153 167 (8 %) 441 461 (4 %)
Other 58 46 26 % 149 109 37 %
$ 1,488 $ 1,618 (8 %) $ 3,776 $ 4,029 (6 %)
Combined Ratio (GAAP):
Property & Transportation 91.9 % 93.5 % 92.1 % 93.8 %
Specialty Casualty 90.7 % 96.5 % 92.1 % 94.5 %
Specialty Financial 91.6 % 83.7 % 93.5 % 86.8 %
Aggregate Specialty Group 92.1 % 94.0 % 93.2 % 93.8 %
Three months ended<br>September 30, Nine months ended<br>September 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2020 2019 2020 2019
Reserve Development (Favorable)/Adverse:
Property & Transportation $ (26 ) $ (17 ) $ (78 ) $ (49 )
Specialty Casualty (16 ) (19 ) (91 ) (63 )
Specialty Financial (9 ) (9 ) (22 ) (24 )
Other Specialty 3 (1 ) 10 2
Specialty Group (48 ) (46 ) (181 ) (134 )
Special A&E Reserve Charge – P&C<br>Run-off 47 18 47 18
Other 1 16 15 18
Total Reserve Development $ — $ (12 ) $ (119 ) $ (98 )
Points on Combined Ratio:
Property & Transportation (4.5 ) (2.8 ) (5.8 ) (3.7 )
Specialty Casualty (2.9 ) (2.9 ) (5.5 ) (3.2 )
Specialty Financial (5.7 ) (5.5 ) (4.8 ) (5.3 )
Aggregate Specialty Group (3.7 ) (3.1 ) (5.0 ) (3.5 )
Total P&C Segment — (0.8 ) (3.1 ) (2.6 )

Footnote (d) is contained in the accompanying Notes to Financial Schedules at the end of this release.

Page 13

AMERICAN FINANCIAL GROUP, INC.

ANNUITY SEGMENT

(Dollarsin Millions)

Components of Gross Statutory Premiums

Three months ended<br>September 30, Pct.<br>Change Nine months ended<br>September 30, Pct.<br>Change
2020 2019 2020 2019
Gross Annuity Premiums:
Financial Institutions $ 473 $ 627 (25 %) $ 1,540 $ 2,137 (28 %)
Retail 151 228 (34 %) 517 868 (40 %)
Broker-Dealer 112 143 (22 %) 369 573 (36 %)
Pension Risk Transfer 99 39 154 % 225 99 127 %
Education Market 33 35 (6 %) 104 128 (19 %)
Variable Annuities 3 5 (40 %) 13 16 (19 %)
Total Gross Annuity Premiums $ 871 $ 1,077 (19 %) $ 2,768 $ 3,821 (28 %)

Components of Pretax Annuity Core Operating Earnings

Three months ended<br>September 30, Pct.<br>Change Nine months ended<br>September 30, Pct.<br>Change
2020 2019 2020 2019
Revenues:
Net investment income $ 418 $ 421 (1 %) $ 1,267 $ 1,247 2 %
Other income 35 31 13 % 100 89 12 %
Total revenues 453 452 — 1,367 1,336 2 %
Costs and Expenses:
Annuity benefits 282 280 1 % 843 822 3 %
Acquisition expenses 58 62 (6 %) 180 184 (2 %)
Other expenses 32 35 (9 %) 100 105 (5 %)
Total costs and expenses 372 377 (1 %) 1,123 1,111 1 %
Annuity core operating earnings before items below 81 75 8 % 244 225 8 %
Amounts previously reported as core — — nm — (11 ) nm
Alternative investments
Marked to market, net of DAC 40 25 nm (14 ) 80 nm
Pretax Annuity Core Operating Earnings $ 121 $ 100 21 % $ 230 $ 294 (22 %)

Supplemental Annuity Information

Three months ended<br>September 30, Nine months ended<br>September 30,
2020 2019 2020 2019
Core net interest spread before alternative investments 1.51 % 1.65 % 1.57 % 1.68 %
Net Interest Spread 1.96 % 1.93 % 1.58 % 1.99 %
Net spread earned before alternative investments 0.80 % 0.80 % 0.81 % 0.79 %
Net spread earned 1.19 % 1.06 % 0.76 % 1.08 %
* Excludes fixed annuity portion of variable annuity business.
--- ---

Further details may be found in our Quarterly Investor Supplement, which is posted on our website.

Page 14

AMERICAN FINANCIAL GROUP, INC.

Notes to Financial Schedules

a) Components of core net operating earnings (dollars in millions):
Three months ended<br>September 30, Nine months ended<br>September 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2020 2019 2020 2019
Core Operating Earnings before Income Taxes:
P&C insurance segment $ 205 $ 194 $ 502 $ 554
Annuity segment 121 100 230 305
Annuity results previously reported as operating earnings — — — (11 )
Interest and other corporate expenses (52 ) (39 ) (132 ) (124 )
Core operating earnings before income taxes 274 255 600 724
Related income taxes 57 50 117 143
Core net operating earnings $ 217 $ 205 $ 483 $ 581
b) Reflects the following effects of special A&E charges during the third quarter and first nine months of<br>2020 and 2019 (dollars in millions, except per share amounts):
--- ---
Pretax After-tax EPS
--- --- --- --- --- --- --- --- --- --- --- --- ---
A&E Charges: 2020 2019 2020 2019 2020 2019
P&C insurance run-off operations
Asbestos $ 26 $ 3 $ 21 $ 2
Environmental 21 15 16 12
$ 47 $ 18 $ 37 $ 14 $ 0.42 $ 0.15
Former railroad & manufacturing operations
Asbestos $ — $ 3 $ — $ 2
Environmental 21 8 17 7
$ 21 $ 11 $ 17 $ 9 $ 0.19 $ 0.10
Total A&E $ 68 $ 29 $ 54 $ 23 $ 0.61 $ 0.25
c) Shareholders’ Equity at September 30, 2020 includes $1.21 billion ($13.88 per share) in<br>unrealized after-tax gains on fixed maturities and $41 million ($0.48 per share) in unrealized after-tax gains on fixed maturity-related cash flow hedges.<br>Shareholders’ Equity at December 31, 2019 includes $862 million ($9.54 per share) in unrealized after-tax, after DAC gains on fixed maturities and $17 million ($0.19 per share) in<br>unrealized after-tax, after DAC gains on fixed maturity-related cash flow hedges.
--- ---
d) Supplemental Notes:
--- ---
• Property & Transportation includes primarily physical damage and liability<br>coverage for buses and trucks, inland and ocean marine, agricultural-related products and other commercial property coverages.
--- ---
• Specialty Casualty includes primarily excess and surplus, general liability, executive liability,<br>professional liability, umbrella and excess liability, specialty coverages in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance.<br>
--- ---
• Specialty Financial includes risk management insurance programs for lending and leasing institutions<br>(including equipment leasing and collateral and lender-placed mortgage property insurance), surety and fidelity products and trade credit insurance.
--- ---
• Other includes an internal reinsurance facility.
--- ---

Page 15

EX-99.2

Exhibit 99.2

American Financial Group, Inc.
Investor Supplement - Third Quarter 2020
October 28, 2020
American Financial Group, Inc.<br><br><br>Corporate Headquarters<br> <br>Great American Insurance Group<br>Tower<br> <br>301 E Fourth Street<br> <br>Cincinnati, OH 45202<br><br><br>513 579 6739
American Financial Group, Inc.<br><br><br>Table of Contents - Investor Supplement - Third Quarter 2020
---
Section Page
--- ---
Table of Contents - Investor Supplement - Third Quarter 2020 2
Financial Highlights 3
Summary of Earnings 4
Earnings Per Share Summary 5
Property and Casualty Insurance Segment
Property and Casualty Insurance - Summary Underwriting Results (GAAP) 6
Specialty - Underwriting Results (GAAP) 7
Property and Transportation - Underwriting Results (GAAP) 8
Specialty Casualty - Underwriting Results (GAAP) 9
Specialty Financial - Underwriting Results (GAAP) 10
Other Specialty - Underwriting Results (GAAP) 11
Annuity Segment
Annuity Earnings 12a
Annuity Earnings - Alternative View 12b
Detail of Annuity Benefits Expense 13
Core Net Spread on Fixed Annuities 14
Statutory Annuity Premiums 15
Fixed Annuity Benefits Accumulated (GAAP) 16
Guaranteed Minimum Interest Rate Analysis 17
Annuity Non-Core Earnings (Losses) 18
Reconciliation from Core to GAAP Annuity Pretax Earnings 19
Consolidated Balance Sheet / Book Value / Debt
Consolidated Balance Sheet 20
Book Value Per Share and Price / Book Summary 21
Capitalization 22
Additional Supplemental Information 23
Consolidated Investment Supplement
Total Cash and Investments 24
Net Investment Income 25
Insurance Companies’ Alternative Investments 26
Fixed Maturities - By Security Type - AFG Consolidated 27
Fixed Maturities - By Security Type Portfolio 28
Fixed Maturities - Credit Rating 29
Mortgage-Backed Securities - AFG Consolidated 30
Mortgage-Backed Securities Portfolio 31
Appendix
--- --- ---
A. Components of Core Operating Earnings As Reported 32
B. Fixed Maturities by Credit Rating & NAIC Designation by Type 9/30/2020 33
C. Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2019 34
D. Corporate Securities by Credit Rating & NAIC Designation by Industry 9/30/2020 35
E. Corporate Securities by Credit Rating & NAIC Designation by Industry 12/31/2019 36
F. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br>9/30/2020 37
G. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br>12/31/2019 38
H. Real Estate-Related Investments 9/30/2020 39
I. Real Estate-Related Investments 12/31/2019 40

Page 2

American Financial Group, Inc.<br><br><br>Financial Highlights<br> <br>(in millions, except per share<br>information)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Highlights
Net earnings (loss) $ 164 $ 177 $ (301 ) $ 211 $ 147 $ 40 $ 686
Core net operating earnings 217 95 171 203 205 483 581
Core net operating earnings before alternative investments marked to market 163 139 178 173 166 480 474
Total assets 73,110 70,867 67,643 70,130 69,067 73,110 69,067
Adjusted shareholders’ equity (a) 5,087 5,049 4,987 5,390 5,376 5,087 5,376
Property and Casualty net written premiums 1,488 1,123 1,165 1,313 1,618 3,776 4,029
Gross Annuity statutory premiums 871 687 1,210 1,139 1,077 2,768 3,821
Net Annuity statutory premiums 703 609 1,210 1,139 1,077 2,522 3,821
Per share data
Diluted earnings (loss) per share $ 1.86 $ 1.97 $ (3.34 ) $ 2.31 $ 1.62 $ 0.45 $ 7.55
Core net operating earnings per share 2.45 1.05 1.88 2.22 2.25 5.37 6.39
Core net operating earnings per share before alternative investments marked to market 1.84 1.53 1.96 1.90 1.82 5.34 5.21
Adjusted book value per share (a) 58.29 56.95 55.52 59.70 59.65 58.29 59.65
Cash dividends per common share 0.4500 0.4500 0.4500 2.2500 0.4000 1.3500 2.7000
Financial ratios
Annualized return on equity (b) 12.9 % 14.1 % (23.1 %) 15.6 % 11.0 % 1.0 % 17.6 %
Annualized core operating return on equity (b) 17.1 % 7.5 % 13.2 % 15.0 % 15.3 % 12.5 % 14.9 %
Property and Casualty combined ratio - Specialty:
Loss & LAE ratio 63.8 % 62.6 % 58.5 % 63.2 % 63.1 % 61.8 % 60.9 %
Underwriting expense ratio 28.3 % 32.6 % 33.7 % 30.3 % 30.9 % 31.4 % 32.9 %
Combined ratio - Specialty 92.1 % 95.2 % 92.2 % 93.5 % 94.0 % 93.2 % 93.8 %
Net interest spread on fixed annuities - before alternative investments marked to market 1.51 % 1.60 % 1.59 % 1.71 % 1.65 % 1.57 % 1.68 %
Alternative investments marked to market 0.45 % (0.36 %) (0.06 %) 0.23 % 0.28 % 0.01 % 0.31 %
Net interest spread on fixed annuities - including alternative investments marked to<br>market 1.96 % 1.24 % 1.53 % 1.94 % 1.93 % 1.58 % 1.99 %
Net spread earned on fixed annuities:
Core operating - before alternative investments marked to market 0.80 % 0.80 % 0.81 % 0.87 % 0.80 % 0.81 % 0.79 %
Alternative investments marked to market, net of DAC 0.39 % (0.41 %) (0.12 %) 0.20 % 0.26 % (0.05 %) 0.29 %
Core operating 1.19 % 0.39 % 0.69 % 1.07 % 1.06 % 0.76 % 1.08 %
(a) Excludes unrealized gains related to fixed maturity investments, a reconciliation to the GAAP measure is on<br>page 21.
--- ---
(b) Excludes accumulated other comprehensive income.
--- ---

Page 3

American Financial Group, Inc.<br><br><br>Summary of Earnings<br> <br>($ in millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Property and Casualty Insurance
Underwriting profit $ 103 $ 52 $ 88 $ 88 $ 72 $ 243 $ 218
Net investment income 111 72 99 120 124 282 352
Other expense (9 ) (8 ) (6 ) (9 ) (2 ) (23 ) (16 )
Property and Casualty Insurance operating earnings 205 116 181 199 194 502 554
Annuity operating earnings 121 42 67 104 100 230 294
Interest expense of parent holding companies (24 ) (23 ) (17 ) (18 ) (17 ) (64 ) (50 )
Other expense (28 ) (20 ) (20 ) (32 ) (22 ) (68 ) (74 )
Pretax core operating earnings 274 115 211 253 255 600 724
Income tax expense 57 20 40 50 50 117 143
Core net operating earnings 217 95 171 203 205 483 581
Non-core items, net of tax:
Realized gains (losses) on securities 35 161 (435 ) 51 (14 ) (239 ) 176
Annuity non-core earnings (losses) (34 ) (47 ) (30 ) 19 (21 ) (111 ) (48 )
Special A&E charges:
Property and Casualty Insurance run-off operations (37 ) — — — (14 ) (37 ) (14 )
Former Railroad and Manufacturing operations (17 ) — — — (9 ) (17 ) (9 )
Neon exited lines 3 (32 ) (7 ) (58 ) — (36 ) —
Other non-core items (3 ) — — (4 ) — (3 ) —
Net earnings (loss) $ 164 $ 177 $ (301 ) $ 211 $ 147 $ 40 $ 686

Page 4

American Financial Group, Inc.<br><br><br>Earnings Per Share Summary<br> <br>(in millions, except per share<br>information)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Core net operating earnings $ 217 $ 95 $ 171 $ 203 $ 205 $ 483 $ 581
Net earnings (loss) $ 164 $ 177 $ (301 ) $ 211 $ 147 $ 40 $ 686
Average number of diluted shares - core 88.546 89.997 91.138 91.274 91.137 89.889 90.940
Average number of diluted shares - net 88.546 89.997 90.295 91.274 91.137 89.889 90.940
Diluted earnings per share:
Core net operating earnings per share $ 2.45 $ 1.05 $ 1.88 $ 2.22 $ 2.25 $ 5.37 $ 6.39
Realized gains (losses) on securities 0.40 1.80 (4.81 ) 0.56 (0.15 ) (2.64 ) 1.93
Annuity non-core earnings (losses) (0.38 ) (0.52 ) (0.34 ) 0.21 (0.23 ) (1.23 ) (0.52 )
Special A&E charges:
Property and Casualty Insurance run-off operations (0.42 ) — — — (0.15 ) (0.42 ) (0.15 )
Former Railroad and Manufacturing operations (0.19 ) — — — (0.10 ) (0.19 ) (0.10 )
Neon exited lines 0.03 (0.36 ) (0.07 ) (0.64 ) — (0.41 ) —
Other non-core items (0.03 ) — — (0.04 ) — (0.03 ) —
Diluted earnings (loss) per share $ 1.86 $ 1.97 $ (3.34 ) $ 2.31 $ 1.62 $ 0.45 $ 7.55

Page 5

American Financial Group, Inc.<br><br><br>Property and Casualty Insurance — Summary Underwriting Results (GAAP)<br><br><br>($ in millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Property and Transportation $ 47 $ 33 $ 27 $ (2 ) $ 38 $ 107 $ 81
Specialty Casualty 53 27 52 69 23 132 106
Specialty Financial 13 — 17 32 26 30 60
Other Specialty (9 ) (6 ) (7 ) (10 ) 1 (22 ) (11 )
Underwriting profit — Specialty **** 104 **** **** 54 **** **** 89 **** **** 89 **** **** 88 **** **** 247 **** **** 236 ****
Other core charges, included in loss and LAE (1 ) (2 ) (1 ) (1 ) (16 ) (4 ) (18 )
Underwriting profit — Core 103 52 88 88 72 243 218
Special A&E charges, included in loss and LAE (47 ) — — — (18 ) (47 ) (18 )
Neon exited lines (a) (38 ) (43 ) (1 ) (76 ) — (82 ) —
Underwriting profit (loss) —Property and Casualty Insurance $ 18 $ 9 $ 87 $ 12 $ 54 $ 114 $ 200
Included in results above:
COVID-19 related losses $ — $ 105 $ 10 $ — $ — $ 115 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ 5 $ — $ — $ 1 $ — $ 5 $ —
Catastrophe loss 52 26 9 14 22 87 46
Total current accident year catastrophe losses $ 57 $ 26 $ 9 $ 15 $ 22 $ 92 $ 46
Prior year loss reserve development (favorable) / adverse $ — $ (77 ) $ (42 ) $ (45 ) $ (12 ) $ (119 ) $ (98 )
Combined ratio:
Property and Transportation 91.9 % 91.7 % 92.9 % 100.4 % 93.5 % 92.1 % 93.8 %
Specialty Casualty 90.7 % 94.9 % 90.7 % 89.7 % 96.5 % 92.1 % 94.5 %
Specialty Financial 91.6 % 100.4 % 89.1 % 79.6 % 83.7 % 93.5 % 86.8 %
Other Specialty 115.6 % 114.2 % 117.7 % 122.5 % 98.5 % 115.7 % 110.2 %
Combined ratio — Specialty 92.1 % 95.2 % 92.2 % 93.5 % 94.0 % 93.2 % 93.8 %
Other core charges 0.1 % 0.2 % 0.1 % 0.1 % 1.1 % 0.1 % 0.5 %
Neon exited lines charge 3.1 % 3.8 % 0.5 % 5.5 % 0.0 % 2.4 % 0.0 %
Special A&E charges 3.5 % 0.0 % 0.0 % 0.0 % 1.2 % 1.3 % 0.4 %
Combined ratio 98.8 % 99.2 % 92.8 % 99.1 % 96.3 % 97.0 % 94.7 %
P&C combined ratio excl. COVID-19 related losses,<br><br><br>catastrophe losses, and prior year loss reserve development 95.0 % 94.8 % 94.6 % 101.4 % 95.5 % 94.8 % 96.1 %
Loss and LAE components — property and casualty insurance
Current accident year, excluding COVID-19 related and<br>catastrophe losses 66.0 % 60.7 % 60.3 % 68.9 % 64.6 % 62.5 % 63.2 %
COVID-19 related losses 0.0 % 8.8 % 0.8 % 0.0 % 0.0 % 3.0 % 0.0 %
Current accident year catastrophe losses 3.8 % 2.1 % 0.8 % 1.0 % 1.6 % 2.3 % 1.2 %
Prior accident year loss reserve development 0.0 % (6.5 %) (3.4 %) (3.3 %) (0.8 %) (3.1 %) (2.6 %)
Loss and LAE ratio 69.8 % 65.1 % 58.5 % 66.6 % 65.4 % 64.7 % 61.8 %
(a) AFG recorded $70 million in non-core losses related to the runoff of Neon in the third quarter of 2020, which<br>included an estimated $30 million expected loss on the sale of the business. In conjunction with the sale, AFG recognized a tax benefit of $73 million, resulting in a net favorable $3 million ($0.03 per share) non-core, after-tax impact from Neon<br>exited lines in the third quarter of 2020.
--- ---

Page 6

American Financial Group, Inc.<br><br><br>Specialty — Underwriting Results (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Gross written premiums $ 2,223 $ 1,539 $ 1,526 $ 1,749 $ 2,351 $ 5,288 $ 5,550
Ceded reinsurance premiums (735 ) (416 ) (361 ) (436 ) (733 ) (1,512 ) (1,521 )
Net written premiums 1,488 1,123 1,165 1,313 1,618 3,776 4,029
Change in unearned premiums (149 ) — (27 ) 57 (176 ) (176 ) (214 )
Net earned premiums 1,339 1,123 1,138 1,370 1,442 3,600 3,815
Loss and LAE 855 703 666 865 910 2,224 2,323
Underwriting expense 380 366 383 416 444 1,129 1,256
Underwriting profit $ 104 $ 54 $ 89 $ 89 $ 88 $ 247 $ 236
Included in results above:
COVID-19 related losses $ — $ 85 $ 10 $ — $ — $ 95 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ 5 $ — $ — $ 1 $ — $ 5 $ —
Catastrophe loss 36 26 9 14 22 71 46
Total current accident year catastrophe losses $ 41 $ 26 $ 9 $ 15 $ 22 $ 76 $ 46
Prior year loss reserve development (favorable) / adverse $ (48 ) $ (85 ) $ (48 ) $ (53 ) $ (46 ) $ (181 ) $ (134 )
Combined ratio:
Loss and LAE ratio 63.8 % 62.6 % 58.5 % 63.2 % 63.1 % 61.8 % 60.9 %
Underwriting expense ratio 28.3 % 32.6 % 33.7 % 30.3 % 30.9 % 31.4 % 32.9 %
Combined ratio 92.1 % 95.2 % 92.2 % 93.5 % 94.0 % 93.2 % 93.8 %
Specialty combined ratio excl. COVID-19 related losses, catastrophe losses, and prior year loss<br>reserve development 93.1 % 92.9 % 94.7 % 96.3 % 95.5 % 93.6 % 96.1 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and catastrophe losses 64.8 % 60.3 % 61.0 % 66.0 % 64.6 % 62.2 % 63.2 %
COVID-19 related losses 0.0 % 7.6 % 0.9 % 0.0 % 0.0 % 2.6 % 0.0 %
Current accident year catastrophe losses 2.7 % 2.3 % 0.8 % 1.0 % 1.6 % 2.0 % 1.2 %
Prior accident year loss reserve development (3.7 %) (7.6 %) (4.2 %) (3.8 %) (3.1 %) (5.0 %) (3.5 %)
Loss and LAE ratio 63.8 % 62.6 % 58.5 % 63.2 % 63.1 % 61.8 % 60.9 %

Page 7

American Financial Group, Inc.<br><br><br>Property and Transportation — Underwriting Results (GAAP)<br><br><br>($ in millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Gross written premiums $ 1,061 $ 611 $ 494 $ 628 $ 1,113 $ 2,166 $ 2,131
Ceded reinsurance premiums (426 ) (185 ) (108 ) (179 ) (452 ) (719 ) (704 )
Net written premiums 635 426 386 449 661 1,447 1,427
Change in unearned premiums (61 ) (36 ) — 56 (78 ) (97 ) (104 )
Net earned premiums 574 390 386 505 583 1,350 1,323
Loss and LAE 403 239 237 392 421 879 905
Underwriting expense 124 118 122 115 124 364 337
Underwriting profit $ 47 $ 33 $ 27 $ (2 ) $ 38 $ 107 $ 81
Included in results above:
COVID-19 related losses $ 1 $ 3 $ 3 $ — $ — $ 7 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ — $ — $ — $ — $ —
Catastrophe loss 18 15 8 7 8 41 25
Total current accident year catastrophe losses $ 18 $ 15 $ 8 $ 7 $ 8 $ 41 $ 25
Prior year loss reserve development (favorable) / adverse $ (26 ) $ (28 ) $ (24 ) $ (18 ) $ (17 ) $ (78 ) $ (49 )
Combined ratio:
Loss and LAE ratio 70.1 % 61.3 % 61.4 % 77.8 % 72.1 % 65.1 % 68.3 %
Underwriting expense ratio 21.8 % 30.4 % 31.5 % 22.6 % 21.4 % 27.0 % 25.5 %
Combined ratio 91.9 % 91.7 % 92.9 % 100.4 % 93.5 % 92.1 % 93.8 %
Combined ratio excl. COVID-19 related losses, catastrophe losses, and prior year loss reserve<br>development 93.2 % 94.3 % 96.2 % 102.5 % 94.9 % 94.4 % 95.6 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and catastrophe losses 71.4 % 63.9 % 64.7 % 79.9 % 73.5 % 67.4 % 70.1 %
COVID-19 related losses 0.1 % 0.8 % 0.6 % 0.0 % 0.0 % 0.5 % 0.0 %
Current accident year catastrophe losses 3.1 % 3.8 % 2.2 % 1.4 % 1.4 % 3.0 % 1.9 %
Prior accident year loss reserve development (4.5 %) (7.2 %) (6.1 %) (3.5 %) (2.8 %) (5.8 %) (3.7 %)
Loss and LAE ratio 70.1 % 61.3 % 61.4 % 77.8 % 72.1 % 65.1 % 68.3 %

Page 8

American Financial Group, Inc.<br><br><br>Specialty Casualty — Underwriting Results (GAAP)<br> <br>($<br>in millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Gross written premiums $ 978 $ 752 $ 849 $ 929 $ 1,031 $ 2,579 $ 2,839
Ceded reinsurance premiums (336 ) (241 ) (263 ) (260 ) (287 ) (840 ) (807 )
Net written premiums 642 511 586 669 744 1,739 2,032
Change in unearned premiums (82 ) 36 (30 ) 7 (86 ) (76 ) (111 )
Net earned premiums 560 547 556 676 658 1,663 1,921
Loss and LAE 352 367 340 402 416 1,059 1,184
Underwriting expense 155 153 164 205 219 472 631
Underwriting profit $ 53 $ 27 $ 52 $ 69 $ 23 $ 132 $ 106
Included in results above:
COVID-19 related losses (1 ) $ 52 $ 7 $ — $ — $ 58 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ 5 $ — $ — $ 1 $ — $ 5 $ —
Catastrophe loss 3 6 — 5 10 9 12
Total current accident year catastrophe losses $ 8 $ 6 $ — $ 6 $ 10 $ 14 $ 12
Prior year loss reserve development (favorable) / adverse $ (16 ) $ (51 ) $ (24 ) $ (25 ) $ (19 ) $ (91 ) $ (63 )
Combined ratio:
Loss and LAE ratio 62.9 % 67.1 % 61.1 % 59.4 % 63.1 % 63.7 % 61.6 %
Underwriting expense ratio 27.8 % 27.8 % 29.6 % 30.3 % 33.4 % 28.4 % 32.9 %
Combined ratio 90.7 % 94.9 % 90.7 % 89.7 % 96.5 % 92.1 % 94.5 %
Combined ratio excl. COVID-19 related losses, catastrophe losses, and prior year loss reserve<br>development 92.9 % 93.8 % 93.6 % 92.7 % 97.8 % 93.5 % 97.1 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and catastrophe losses 65.1 % 66.0 % 64.0 % 62.4 % 64.4 % 65.1 % 64.2 %
COVID-19 related losses (0.1 %) 9.5 % 1.3 % 0.0 % 0.0 % 3.5 % 0.0 %
Current accident year catastrophe losses 0.8 % 0.9 % 0.0 % 0.8 % 1.6 % 0.6 % 0.6 %
Prior accident year loss reserve development (2.9 %) (9.3 %) (4.2 %) (3.8 %) (2.9 %) (5.5 %) (3.2 %)
Loss and LAE ratio 62.9 % 67.1 % 61.1 % 59.4 % 63.1 % 63.7 % 61.6 %

Page 9

American Financial Group, Inc.<br><br><br>Specialty Financial — Underwriting Results (GAAP)<br> <br>($<br>in millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Gross written premiums $ 184 $ 176 $ 183 $ 192 $ 207 $ 543 $ 580
Ceded reinsurance premiums (31 ) (37 ) (34 ) (36 ) (40 ) (102 ) (119 )
Net written premiums 153 139 149 156 167 441 461
Change in unearned premiums 2 5 7 (4 ) (6 ) 14 (3 )
Net earned premiums 155 144 156 152 161 455 458
Loss and LAE 62 65 59 40 47 186 152
Underwriting expense 80 79 80 80 88 239 246
Underwriting profit $ 13 $ — $ 17 $ 32 $ 26 $ 30 $ 60
Included in results above:
COVID-19 related losses $ (1 ) $ 30 $ — $ — $ — $ 29 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ — $ — $ — $ — $ —
Catastrophe loss 13 5 1 2 3 19 8
Total current accident year catastrophe losses $ 13 $ 5 $ 1 $ 2 $ 3 $ 19 $ 8
Prior year loss reserve development (favorable) / adverse $ (9 ) $ (11 ) $ (2 ) $ (14 ) $ (9 ) $ (22 ) $ (24 )
Combined ratio:
Loss and LAE ratio 39.9 % 44.9 % 38.0 % 26.1 % 29.7 % 40.8 % 33.3 %
Underwriting expense ratio 51.7 % 55.5 % 51.1 % 53.5 % 54.0 % 52.7 % 53.5 %
Combined ratio 91.6 % 100.4 % 89.1 % 79.6 % 83.7 % 93.5 % 86.8 %
Combined ratio excl. COVID-19 related losses, catastrophe losses, and prior year loss reserve<br>development 89.5 % 83.7 % 89.5 % 87.7 % 87.2 % 87.6 % 90.3 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and catastrophe losses 37.8 % 28.2 % 38.4 % 34.2 % 33.2 % 34.9 % 36.8 %
COVID-19 related losses (0.8 %) 21.1 % 0.1 % 0.0 % 0.0 % 6.4 % 0.0 %
Current accident year catastrophe losses 8.6 % 3.6 % 0.6 % 1.1 % 2.0 % 4.3 % 1.8 %
Prior accident year loss reserve development (5.7 %) (8.0 %) (1.1 %) (9.2 %) (5.5 %) (4.8 %) (5.3 %)
Loss and LAE ratio 39.9 % 44.9 % 38.0 % 26.1 % 29.7 % 40.8 % 33.3 %

Page 10

American Financial Group, Inc.<br><br><br>Other Specialty - Underwriting Results (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Gross written premiums $ — $ — $ — $ — $ — $ — $ —
Ceded reinsurance premiums 58 47 44 39 46 149 109
Net written premiums 58 47 44 39 46 149 109
Change in unearned premiums (8 ) (5 ) (4 ) (2 ) (6 ) (17 ) 4
Net earned premiums 50 42 40 37 40 132 113
Loss and LAE 38 32 30 31 26 100 82
Underwriting expense 21 16 17 16 13 54 42
Underwriting profit (loss) $ (9 ) $ (6 ) $ (7 ) $ (10 ) $ 1 $ (22 ) $ (11 )
Included in results above:
COVID-19 related losses $ 1 $ — $ — $ — $ — $ 1 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ — $ — $ — $ — $ —
Catastrophe loss 2 — — — 1 2 1
Total current accident year catastrophe losses $ 2 $ — $ — $ — $ 1 $ 2 $ 1
Prior year loss reserve development (favorable) / adverse $ 3 $ 5 $ 2 $ 4 $ (1 ) $ 10 $ 2
Combined ratio:
Loss and LAE ratio 78.6 % 76.9 % 73.9 % 83.5 % 64.0 % 76.6 % 72.7 %
Underwriting expense ratio 37.0 % 37.3 % 43.8 % 39.0 % 34.5 % 39.1 % 37.5 %
Combined ratio 115.6 % 114.2 % 117.7 % 122.5 % 98.5 % 115.7 % 110.2 %
Combined ratio excl. COVID-19 related losses, catastrophe losses, and prior year loss reserve<br>development 107.8 % 100.3 % 113.4 % 113.4 % 99.0 % 107.0 % 107.3 %

Page 11

American Financial Group, Inc.<br><br><br>Annuity Earnings<br> <br>($ in millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Net investment income $ 418 $ 421 $ 428 $ 435 $ 421 $ 1,267 $ 1,247
Alternative investments marked to market through core operating earnings 46 (37 ) (6 ) 23 27 3 87
Guaranteed withdrawal benefit fees 18 17 17 17 17 52 50
Policy charges and other miscellaneous income (a) 17 13 18 13 14 48 39
Total revenues 499 414 457 488 479 1,370 1,423
Annuity benefits (a) 282 274 287 285 280 843 822
Acquisition expenses 64 62 71 65 64 197 191
Other expenses 32 36 32 34 35 100 105
Total costs and expenses 378 372 390 384 379 1,140 1,118
Pretax Annuity core operating earnings $ 121 $ 42 $ 67 $ 104 $ 100 $ 230 $ 305
Other amounts previously reported as core operating, net (b) n/a n/a n/a n/a n/a n/a (11 )
Pretax Annuity core operating earnings - as reported $ 121 $ 42 $ 67 $ 104 $ 100 $ 230 $ 294
Components of Pretax Annuity Core Operating Earnings
Pretax annuity core operating earnings before items below $ 81 $ 84 $ 79 $ 84 $ 75 $ 244 $ 225
Other amounts previously reported as core operating, net (b) n/a n/a n/a n/a n/a n/a (11 )
Pretax annuity core operating earnings before alternative investments marked to market 81 84 79 84 75 244 214
Alternative investments marked to market, net of DAC 40 (42 ) (12 ) 20 25 (14 ) 80
Pretax Annuity core operating earnings - as reported $ 121 $ 42 $ 67 $ 104 $ 100 $ 230 $ 294
(a) Gains received on options in excess of index credits to policyholder are recorded through annuity benefits for<br>GAAP. For the investor supplement presentation, these gains are shown in policy charges and other miscellaneous income.
--- ---
(b) “Other” primarily reflects (1) the impact of fair value accounting, (2) the impact of changes in the<br>stock market on the liability for guaranteed benefits and DAC, and (3) unlocking.
--- ---

Page 12a

American Financial Group, Inc.<br><br><br>Annuity Earnings - Alternative View<br> <br>($ in<br>millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Net investment income (excluding alternative investments marked to market) $ 416 $ 418 $ 426 $ 433 $ 419 $ 1,260 $ 1,240
Guaranteed withdrawal benefit fees 18 17 17 17 17 52 50
Policy charges and other miscellaneous income (a) 14 12 15 10 11 41 31
Total revenues 448 447 458 460 447 1,353 1,321
Annuity benefits (a) 281 273 285 284 278 839 817
Acquisition expenses (excluding alternative investments marked to market) 57 57 61 61 60 175 179
Other expenses 31 35 32 33 34 98 103
Total costs and expenses 369 365 378 378 372 1,112 1,099
Pretax Annuity core operating earnings (excluding variable annuity earnings and alternative investments marked to market) 79 82 80 82 75 241 222
Variable annuity earnings 2 2 (1 ) 2 — 3 3
Pretax Annuity core operating earnings (excluding alternative investments marked tomarket) 81 84 79 84 75 244 225
Alternative investments marked to market, net of DAC 40 (42 ) (12 ) 20 25 (14 ) 80
Pretax annuity core operating earnings 121 42 67 104 100 230 305
Other amounts previously reported as core operating, net (b) n/a n/a n/a n/a n/a n/a (11 )
Pretax Annuity core operating earnings - as reported $ 121 $ 42 $ 67 $ 104 $ 100 $ 230 $ 294
(a) Gains received on options in excess of index credits to policyholder are recorded through annuity benefits for<br>GAAP. For the investor supplement presentation, these gains are shown in policy charges and other miscellaneous income.
--- ---
(b) “Other” primarily reflects (1) the impact of fair value accounting, (2) the impact of changes in the<br>stock market on the liability for guaranteed benefits and DAC, and (3) unlocking.
--- ---

Page 12b

American Financial Group, Inc.<br><br><br>Detail of Annuity Benefits Expense<br> <br>($ in<br>millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Detail of annuity benefits expense:
Cost of funds:
Amortization of options (a) $ 148 $ 148 $ 150 $ 150 $ 149 $ 446 $ 436
Traditional fixed annuities 64 64 63 62 62 191 182
Fixed component of fixed-indexed annuities 26 26 25 25 24 77 69
Immediate annuities 5 6 6 6 6 17 18
Pension risk transfer 5 4 4 3 2 13 4
Federal Home Loan Bank 1 3 5 6 7 9 21
Total cost of funds 249 251 253 252 250 753 730
Guaranteed withdrawal benefit reserve 26 17 25 24 21 68 60
Amortization of sales inducements 2 2 2 3 3 6 11
Change in expected death and annuitization reserve and other 5 4 7 6 6 16 21
Total other annuity benefits 33 23 34 33 30 90 92
Total annuity benefits expense $ 282 $ 274 $ 287 $ 285 $ 280 $ 843 $ 822
(a)   Amortization of options, net of DAC and reserve offsets:
Amortization of options $ 148 $ 148 $ 150 $ 150 $ 149 $ 446 $ 436
DAC and reserve offsets (76 ) (77 ) (77 ) (77 ) (74 ) (230 ) (220 )
Amortization of options, net of DAC and reserve offsets $ 72 $ 71 $ 73 $ 73 $ 75 $ 216 $ 216

Page 13

American Financial Group, Inc.<br><br><br>Core Net Spread on Fixed Annuities<br> <br>($ in<br>millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Average fixed annuity investments (at amortized cost) (a) $ 40,859 $ 40,570 $ 40,073 $ 39,316 $ 38,650 $ 40,501 $ 37,849
Average annuity benefits accumulated 41,158 40,601 40,139 39,615 38,946 40,633 38,075
Annuity benefits accumulated in excess of investments (a) $ (299 ) $ (31 ) $ (66 ) $ (299 ) $ (296 ) $ (132 ) $ (226 )
As % of average annuity benefits accumulated (except as noted)
Net investment income (excluding alternative investments marked to market) (as % of<br>investments) 4.07 % 4.13 % 4.25 % 4.40 % 4.34 % 4.15 % 4.37 %
Cost of funds (2.42 %) (2.47 %) (2.52 %) (2.54 %) (2.57 %) (2.47 %) (2.56 %)
Other annuity benefits, net of guaranteed withdrawal benefit fees (0.14 %) (0.06 %) (0.14 %) (0.15 %) (0.12 %) (0.11 %) (0.13 %)
Core net interest spread on fixed annuities 1.51 % 1.60 % 1.59 % 1.71 % 1.65 % 1.57 % 1.68 %
Policy charges and other miscellaneous income 0.14 % 0.11 % 0.15 % 0.11 % 0.12 % 0.13 % 0.11 %
Acquisition expenses (excluding alternative investments marked to market) (0.55 %) (0.56 %) (0.61 %) (0.62 %) (0.63 %) (0.57 %) (0.64 %)
Other expenses (0.30 %) (0.35 %) (0.32 %) (0.33 %) (0.34 %) (0.32 %) (0.36 %)
Core net spread earned on fixed annuities (excluding alternative investments marked tomarket) 0.80 % 0.80 % 0.81 % 0.87 % 0.80 % 0.81 % 0.79 %
Alternative investments marked to market, net of DAC 0.39 % (0.41 %) (0.12 %) 0.20 % 0.26 % (0.05 %) 0.29 %
Core net spread earned on fixed annuities 1.19 % 0.39 % 0.69 % 1.07 % 1.06 % 0.76 % 1.08 %
Net spread earned on items previously reported as core operating n/a n/a n/a n/a n/a n/a (0.04 %)
Core net spread earned on fixed annuities - as reported 1.19 % 0.39 % 0.69 % 1.07 % 1.06 % 0.76 % 1.04 %
Average annuity benefits accumulated $ 41,158 $ 40,601 $ 40,139 $ 39,615 $ 38,946 $ 40,633 $ 38,075
Net spread earned on fixed annuities (excluding alternative investments marked to market) -<br>core 0.80 % 0.80 % 0.81 % 0.87 % 0.80 % 0.81 % 0.79 %
Earnings on fixed annuity benefits accumulated - core $ 82 $ 82 $ 81 $ 85 $ 78 $ 245 $ 229
Annuity benefits accumulated in excess of investments $ (299 ) $ (31 ) $ (66 ) $ (299 ) $ (296 ) $ (132 ) $ (226 )
Net investment income (excluding alternative investments marked to market) (as % of<br>investments) 4.07 % 4.13 % 4.25 % 4.40 % 4.34 % 4.15 % 4.37 %
Earnings/(loss) on annuity benefits accumulated in excess of investments $ (3 ) $ — $ (1 ) $ (3 ) $ (3 ) $ (4 ) $ (7 )
Variable annuity earnings 2 2 (1 ) 2 — 3 3
Pretax Annuity core operating earnings (excluding alternative investments marked tomarket) 81 84 79 84 75 244 225
Alternative investments marked to market, net of DAC 40 (42 ) (12 ) 20 25 (14 ) 80
Pretax Annuity core operating earnings 121 42 67 104 100 230 305
Other amounts previously reported as core operating, net n/a n/a n/a n/a n/a n/a (11 )
Pretax Annuity core operating earnings - as reported $ 121 $ 42 $ 67 $ 104 $ 100 $ 230 $ 294
(a) Excludes non-investment assets such as deferred acquisition costs, FIA options, accrued investment income and<br>company owned life insurance.
--- ---

Page 14

American Financial Group, Inc.<br><br><br>Statutory Annuity Premiums<br> <br>($ in millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Financial institutions single premium annuities - indexed $ 332 $ 258 $ 424 $ 359 $ 325 $ 1,014 $ 1,178
Financial institutions single premium annuities - fixed 141 98 287 270 302 526 959
Retail single premium annuities - indexed 134 138 172 170 198 444 773
Retail single premium annuities - fixed 17 31 25 25 30 73 95
Broker dealer single premium annuities - indexed 109 100 138 107 134 347 550
Broker dealer single premium annuities - fixed 3 2 17 9 9 22 23
Pension risk transfer (PRT) 99 23 103 158 39 225 99
Education market - fixed and indexed annuities 33 32 39 36 35 104 128
Subtotal fixed annuity premiums **** 868 **** **** 682 **** **** 1,205 **** 1,134 **** 1,072 **** 2,755 **** **** 3,805
Variable annuities 3 5 5 5 5 13 16
Total gross annuity premiums $ 871 **** $ 687 **** $ 1,210 $ 1,139 $ 1,077 $ 2,768 **** $ 3,821
Less: Reinsurance (168 ) (78 ) — — — (246 ) —
Total net annuity premiums $ 703 **** $ 609 **** $ 1,210 $ 1,139 $ 1,077 $ 2,522 **** $ 3,821
Summary by Distribution Channel:
Financial institutions $ 473 $ 356 $ 711 $ 629 $ 627 $ 1,540 $ 2,137
Retail 151 169 197 195 228 517 868
Broker dealer 112 102 155 116 143 369 573
Other 135 60 147 199 79 342 243
Total gross annuity premiums $ 871 **** $ 687 **** $ 1,210 $ 1,139 $ 1,077 $ 2,768 **** $ 3,821
Less: Reinsurance (168 ) (78 ) — — — (246 ) —
Total net annuity premiums $ 703 **** $ 609 **** $ 1,210 $ 1,139 $ 1,077 $ 2,522 **** $ 3,821
Summary by Product Type:
Total indexed $ 591 $ 512 $ 753 $ 655 $ 675 $ 1,856 $ 2,572
Total fixed 277 170 452 479 397 899 1,233
Variable 3 5 5 5 5 13 16
Total gross annuity premiums $ 871 **** $ 687 **** $ 1,210 $ 1,139 $ 1,077 $ 2,768 **** $ 3,821
Less: Reinsurance (168 ) (78 ) — — — (246 ) —
Total net annuity premiums $ 703 **** $ 609 **** $ 1,210 $ 1,139 $ 1,077 $ 2,522 **** $ 3,821

Page 15

American Financial Group, Inc.<br><br><br>Fixed Annuity Benefits Accumulated (GAAP)<br><br><br>($ in millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Beginning fixed annuity reserves $ 40,942 $ 40,260 $ 40,018 $ 39,212 $ 38,680 $ 40,018 $ 36,431
Premiums 868 682 1,205 1,134 1,072 2,755 3,805
Federal Home Loan Bank (“FHLB”) advances (paydowns) — (40 ) 200 — — 160 —
Surrenders, benefits and other withdrawals (844 ) (768 ) (794 ) (829 ) (808 ) (2,406 ) (2,431 )
Interest and other annuity benefit expenses:
Cost of funds 249 251 253 252 250 753 730
Embedded derivative marked to market 245 601 (647 ) 276 111 199 824
Unlockings (73 ) — — — (75 ) (73 ) (75 )
Other (13 ) (44 ) 25 (27 ) (18 ) (32 ) (72 )
Ending fixed annuity reserves $ 41,374 **** $ 40,942 **** $ 40,260 **** $ 40,018 **** $ 39,212 **** $ 41,374 **** $ 39,212 ****
Reconciliation to annuity benefits accumulated:
Ending fixed annuity reserves $ 41,374 $ 40,942 $ 40,260 $ 40,018 $ 39,212 $ 41,374 $ 39,212
Impact of unrealized investment gains on reserves 394 285 38 225 269 394 269
Fixed component of variable annuities 164 165 165 163 170 164 170
Annuity benefits accumulated per balance sheet $ 41,932 **** $ 41,392 **** $ 40,463 **** $ 40,406 **** $ 39,651 **** $ 41,932 **** $ 39,651 ****
Annualized surrenders and other withdrawals as a % of beginning reserves 8.3 % 7.6 % 7.9 % 8.5 % 8.4 % 8.0 % 8.9 %
Rider reserves included in ending fixed annuity reserves above $ 801 **** $ 680 **** $ 690 **** $ 625 **** $ 611 **** $ 801 **** $ 611 ****
Embedded Derivative liability included in ending fixed annuity reserves above $ 3,657 **** $ 3,675 **** $ 3,099 **** $ 3,730 **** $ 3,469 **** $ 3,657 **** $ 3,469 ****

Page 16

American Financial Group, Inc.<br><br><br>Guaranteed Minimum Interest Rate (“GMIR”) Analysis<br><br><br>($ in millions)
GMIR (a) Pro Forma<br>9/30/20 (e) 9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 6/30/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
1 - 1.99% 85 % 85 % 85 % 84 % 84 % 84 % 83 %
2 - 2.99% 3 % 3 % 3 % 3 % 3 % 3 % 4 %
3 - 3.99% 7 % 6 % 6 % 7 % 7 % 7 % 7 %
4.00% and above 5 % 6 % 6 % 6 % 6 % 6 % 6 %
Annuity Benefits Accumulated $ 41,932 $ 41,932 $ 41,392 $ 40,463 $ 40,406 $ 39,651 $ 39,044
Traditional Fixed and FIA Surrender Value (b) (c) $ 25,853 $ 31,853 $ 31,619 $ 30,934 $ 30,921 $ 30,292 $ 29,891
Ability to Lower Average Crediting Rates by (b) (d) 1.08 % 1.10 % 1.14 % 1.18 % 1.19 % 1.20 % 1.20 %
Pretax earnings impact of crediting guaranteed minimums (b) (assumes net DAC impact over time =<br>$0) $ 280 $ 350 $ 360 $ 365 $ 368 $ 363 $ 359
(a) Excludes Federal Home Loan Bank (“FHLB”) advances, immediate reserves and certain other reserves.<br>
--- ---
(b) Excludes Annuities with Guaranteed Withdrawal Benefits, FHLB advances, immediate reserves and certain other<br>reserves.
--- ---
(c) FIA and VIA Surrender Value include Host + Embedded Derivatives + Fixed Account values.
--- ---
(d) Weighted Average Crediting Rate less GMIR
--- ---
(e) Projected results if Block Reinsurance transaction took effect on 9/30/20
--- ---

Page 17

American Financial Group, Inc.<br><br><br>Annuity Non-Core Earnings (Losses)<br> <br>($ in<br>millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Annuity Non-Core Earnings (Losses):
Stock market impact on:
Liability for guaranteed benefits (a) $ 14 $ 22 $ (33 ) $ 12 $ 2 $ 3 $ 22
DAC and sales inducements (b) 3 7 (10 ) 4 1 — 7
Fair Value (FV) accounting 2 9 (21 ) 8 1 (10 ) 15
Subtotal impact of changes in stock market 19 38 (64 ) 24 4 (7 ) 44
Impact of changes in interest rates on FV accounting (17 ) (100 ) 29 (4 ) (30 ) (88 ) (113
Other FIA items 1 3 (3 ) 4 — 1 (1
Unlockings (46 ) — — — (1 ) (46 ) (1
Annuity Non-Core Earnings (Losses) $ (43 ) $ (59 ) $ (38 ) $ 24 **** $ (27 ) $ (140 ) $ (71
Q1 Core = (11)
Reported as Non-core Non-core Non-core Non-core Non-core Non-core Q2/Q3 Non-core =(60)
Annuity Non-Core Earnings (Losses), net of taxes $ (34 ) $ (47 ) $ (30 ) $ 19 **** $ (21 ) $ (111 ) $ 48
Annuity Non-Core Net Spread Earned:
Stock market impact on:
Liability for guaranteed benefits (a) 0.14 % 0.22 % (0.33 %) 0.12 % 0.02 % 0.01 % 0.08
DAC and sales inducements (b) 0.03 % 0.07 % (0.10 %) 0.04 % 0.01 % 0.00 % 0.02
Fair Value (FV) accounting 0.02 % 0.09 % (0.21 %) 0.08 % 0.01 % (0.03 %) 0.05
Subtotal impact of changes in stock market 0.19 % 0.38 % (0.64 %) 0.24 % 0.04 % (0.02 %) 0.15
Impact of changes in interest rates on FV accounting (0.16 %) (0.99 %) 0.29 % (0.04 %) (0.31 %) (0.29 %) (0.40
Other FIA items 0.01 % 0.03 % (0.03 %) 0.04 % 0.00 % 0.00 % 0.00
Unlockings (0.45 %) 0.00 % 0.00 % 0.00 % (0.01 %) (0.15 %) 0.00
Non-core net spread earned on fixed annuities **** (0.41 %) **** (0.58 %) **** (0.38 %) **** 0.24 % **** (0.28 %) **** (0.46 %) **** (0.25
Q1 Core = (.04%)
Reported as Non-core Non-core Non-core Non-core Non-core Non-core Q2/Q3 Non-core =(.21%)

All values are in US Dollars.

(a) Reflects the impact of changes in the stock market on AFG’s liability for fixed-indexed annuities with<br>guaranteed benefits. Increases in the stock market will generally have a favorable earnings impact; decreases in the stock market will generally have an unfavorable impact.
(b) Reflects the impact of changes in the stock market on the current and projected lifetime profitability of<br>AFG’s annuity business. Increases in the stock market will generally have a favorable earnings impact; decreases in the stock market will generally have an unfavorable impact.
--- ---
S&P 500 3,363 3,100 2,585 3,231 2,977 3,363 2,977
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Average 5 and 15 year Corp A2 rates 1.83 % 1.95 % 3.01 2.74 % 2.71 % 1.83 % 2.71 %
Non-core earnings sensitivities:
Incremental +/- 1% change in S&P 500 ~ +/- 0mm to2mm
Incremental +/- 10bps change in interest rates<br>(Assumes parallel shift in rates (primarilyCorporate A2 rates)) ~ +/-6mm to 8mm

All values are in US Dollars.

Page 18

American Financial Group, Inc.<br><br><br>Reconciliation from Core to GAAP Annuity Pretax Earnings<br><br><br>($ in millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Annuity Earnings
Core annuity operating earnings - as reported (see page 12a) $ 121 $ 42 $ 67 $ 104 $ 100 $ 230 $ 294
Annuity non-core earnings (losses) (43 ) (59 ) (38 ) 24 (27 ) (140 ) (60 )
Earnings before income taxes - GAAP $ 78 $ (17 ) $ 29 $ 128 $ 73 $ 90 $ 234
Policy Charges and Other Miscellaneous Income
Policy charges and other miscellaneous income (see page 12a) $ 17 $ 13 $ 18 $ 13 $ 14 $ 48 $ 39
Annuity non-core policy charges and other miscellaneous income (5 ) — — — 1 (5 ) 1
Policy Charges and Other Miscellaneous Income - GAAP $ 12 $ 13 $ 18 $ 13 $ 15 $ 43 $ 40
Annuity Benefit Expense
Annuity benefits expense (see page 13) $ 282 $ 274 $ 287 $ 285 $ 280 $ 843 $ 822
Annuity non-core annuity benefits (69 ) 157 (3 ) (30 ) (26 ) 85 86
Annuity Benefit Expense - GAAP $ 213 $ 431 $ 284 $ 255 $ 254 $ 928 $ 908
Acquisition Expenses
Acquisition expenses (see page 12a) $ 64 $ 62 $ 71 $ 65 $ 64 $ 197 $ 191
Annuity non-core acquisition expenses 107 (98 ) 41 6 54 50 (14 )
Acquisition Expenses - GAAP $ 171 $ (36 ) $ 112 $ 71 $ 118 $ 247 $ 177
Net Spread on Fixed Annuities
Core net spread earned on fixed annuities - as reported (see page 14) 1.19 % 0.39 % 0.69 % 1.07 % 1.06 % 0.76 % 1.04 %
Non-core net spread earned on fixed annuities (0.41 %) (0.58 %) (0.38 %) 0.24 % (0.28 %) (0.46 %) (0.21 %)
Net Spread on Fixed Annuities 0.78 % (0.19 %) 0.31 % 1.31 % 0.78 % 0.30 % 0.83 %

Page 19

American Financial Group, Inc.<br><br><br>Consolidated Balance Sheet<br> <br>($ in millions)
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 6/30/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Assets:
Total cash and investments $ 58,087 $ 56,741 $ 53,221 $ 55,252 $ 54,207 $ 52,907
Recoverables from reinsurers 3,819 3,476 3,387 3,415 3,261 3,150
Prepaid reinsurance premiums 862 733 708 678 781 651
Agents’ balances and premiums receivable 1,384 1,366 1,302 1,335 1,403 1,398
Deferred policy acquisition costs 497 818 1,573 1,037 964 1,203
Assets of managed investment entities 4,717 4,393 4,026 4,736 4,702 4,781
Other receivables 1,185 880 981 975 1,187 999
Variable annuity assets (separate accounts) 603 577 497 628 601 616
Other assets 1,749 1,676 1,741 1,867 1,754 1,785
Goodwill 207 207 207 207 207 207
Total assets $ 73,110 $ 70,867 $ 67,643 $ 70,130 $ 69,067 $ 67,697
Liabilities and Equity:
Unpaid losses and loss adjustment expenses $ 10,754 $ 10,321 $ 10,106 $ 10,232 $ 9,847 $ 9,577
Unearned premiums 3,015 2,778 2,808 2,830 2,986 2,683
Annuity benefits accumulated 41,932 41,392 40,463 40,406 39,651 39,044
Life, accident and health reserves 609 606 607 612 613 619
Payable to reinsurers 977 746 779 814 867 755
Liabilities of managed investment entities 4,541 4,236 3,865 4,571 4,523 4,590
Long-term debt 2,108 1,912 1,473 1,473 1,423 1,423
Variable annuity liabilities (separate accounts) 603 577 497 628 601 616
Other liabilities 2,231 2,173 1,998 2,295 2,235 2,300
Total liabilities $ 66,770 $ 64,741 $ 62,596 $ 63,861 $ 62,746 $ 61,607
Shareholders’ equity:
Common stock $ 87 $ 89 $ 90 $ 90 $ 90 $ 90
Capital surplus 1,283 1,299 1,309 1,307 1,292 1,277
Retained earnings 3,737 3,685 3,616 4,009 4,022 3,914
Unrealized gains — fixed maturities 1,212 1,030 16 862 920 812
Unrealized gains (losses) — fixed maturity-related cash flow hedges 41 47 44 17 25 18
Other comprehensive income, net of tax (20 ) (24 ) (28 ) (16 ) (28 ) (21 )
Total shareholders’ equity 6,340 6,126 5,047 6,269 6,321 6,090
Noncontrolling interests — — — — — —
Total liabilities and equity $ 73,110 $ 70,867 $ 67,643 $ 70,130 $ 69,067 $ 67,697

Page 20

American Financial Group, Inc.<br><br><br>Book Value Per Share and Price / Book Summary<br> <br>(in<br>millions, except per share information)
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 6/30/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Shareholders’ equity $ 6,340 $ 6,126 $ 5,047 $ 6,269 $ 6,321 $ 6,090
Unrealized (gains) related to fixed maturities (1,253 ) (1,077 ) (60 ) (879 ) (945 ) (830 )
Adjusted shareholders’ equity 5,087 5,049 4,987 5,390 5,376 5,260
Goodwill (207 ) (207 ) (207 ) (207 ) (207 ) (207 )
Intangibles (34 ) (37 ) (40 ) (43 ) (45 ) (48 )
Tangible adjusted shareholders’ equity $ 4,846 $ 4,805 $ 4,740 $ 5,140 $ 5,124 $ 5,005
Common shares outstanding 87.267 88.659 89.827 90.304 90.127 89.918
Book value per share:
Book value per share $ 72.65 $ 69.10 $ 56.18 $ 69.43 $ 70.14 $ 67.72
Adjusted (a) 58.29 56.95 55.52 59.70 59.65 58.49
Tangible, adjusted (b) 55.53 54.20 52.77 56.93 56.84 55.65
Market capitalization
AFG’s closing common share price $ 66.98 $ 63.46 $ 70.08 $ 109.65 $ 107.85 $ 102.47
Market capitalization $ 5,845 $ 5,626 $ 6,295 $ 9,902 $ 9,720 $ 9,214
Price / Adjusted book value ratio 1.15 1.11 1.26 1.84 1.81 1.75
(a) Excludes unrealized gains related to fixed maturity investments.
--- ---
(b) Excludes unrealized gains related to fixed maturity investments, goodwill and intangibles.<br>
--- ---

Page 21

American Financial Group, Inc.<br><br><br>Capitalization<br> <br>($ in millions)
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 6/30/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
AFG senior obligations $ 1,318 $ 1,318 $ 1,018 $ 1,018 $ 1,018 $ 1,018
Borrowings drawn under credit facility — — — — — —
Debt excluding subordinated debt $ 1,318 $ 1,318 $ 1,018 $ 1,018 $ 1,018 $ 1,018
AFG subordinated debentures 825 625 475 475 425 425
Total principal amount of long-term debt $ 2,143 $ 1,943 $ 1,493 $ 1,493 $ 1,443 $ 1,443
Shareholders’ equity 6,340 6,126 5,047 6,269 6,321 6,090
Noncontrolling interests (including redeemable NCI) — — — — — —
Less:
Unrealized (gains) related to fixed maturity investments (1,253 ) (1,077 ) (60 ) (879 ) (945 ) (830 )
Total adjusted capital $ 7,230 $ 6,992 $ 6,480 $ 6,883 $ 6,819 $ 6,703
Ratio of debt to total adjusted capital:
Including subordinated debt 29.6 % 27.8 % 23.0 % 21.7 % 21.2 % 21.5 %
Excluding subordinated debt 18.2 % 18.9 % 15.7 % 14.8 % 14.9 % 15.2 %

Page 22

American Financial Group, Inc.<br><br><br>Additional Supplemental Information<br> <br>($ in<br>millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Property and Casualty Insurance
Paid Losses (GAAP) $ 646 $ 601 $ 751 $ 727 $ 769 $ 1,998 $ 2,139
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 6/30/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
GAAP Equity (excluding AOCI)
Property and Casualty Insurance $ 4,154 $ 3,945 $ 3,800 $ 4,043 $ 4,094 $ 3,959
Annuity 2,659 2,579 2,512 2,715 2,613 2,612
Parent and other subsidiaries (1,706 ) (1,451 ) (1,297 ) (1,352 ) (1,303 ) (1,290 )
AFG GAAP Equity (excluding AOCI) $ 5,107 $ 5,073 $ 5,015 $ 5,406 $ 5,404 $ 5,281
Allowable dividends without regulatory approval
Property and Casualty Insurance $ 565 $ 565 $ 565 $ 565 $ 529 $ 529
Annuity and Run-off 287 287 287 287 768 768
Total $ 852 $ 852 $ 852 $ 852 $ 1,297 $ 1,297

Page 23

American Financial Group, Inc.<br><br><br>Total Cash and Investments<br> <br>($ in millions)
Carrying Value - September 30, 2020
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Property and<br>Casualty<br>Insurance Annuity and<br>Run-off Parent and<br>Other Non-<br>Insurance Consolidate<br>CLOs Total AFG<br>Consolidated % of<br>Investment<br>Portfolio
Total cash and investments:
Cash and cash equivalents $ 1,692 $ 1,462 $ 593 $ — $ 3,747 7 %
Fixed maturities — Available for sale 8,761 39,424 8 — 48,193 83 %
Fixed maturities — Trading 47 45 — — 92 0 %
Equity securities — common stocks 410 401 63 — 874 2 %
Equity securities — perpetual preferred 377 355 — — 732 1 %
Investments accounted for using the equity method 778 1,063 — — 1,841 3 %
Mortgage loans 325 1,157 — — 1,482 3 %
Policy loans — 154 — — 154 0 %
Equity index call options — 697 — — 697 1 %
Real estate and other investments 117 281 52 (175 ) 275 0 %
Total cash and investments $ 12,507 $ 45,039 $ 716 $ (175 ) $ 58,087 100 %
Carrying Value - December 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Property and<br>Casualty<br>Insurance Annuity and<br>Run-off Parent and<br>Other Non-<br>Insurance Consolidate<br>CLOs Total AFG<br>Consolidated % of<br>Investment<br>Portfolio
Total cash and investments:
Cash and cash equivalents $ 1,387 $ 746 $ 181 $ — $ 2,314 4 %
Fixed maturities — Available for sale 8,596 37,899 10 — 46,505 84 %
Fixed maturities — Trading 59 54 — — 113 0 %
Equity securities — common stocks 664 553 66 — 1,283 3 %
Equity securities — perpetual preferred 397 257 — — 654 1 %
Investments accounted for using the equity method 703 985 — — 1,688 3 %
Mortgage loans 262 1,067 — — 1,329 2 %
Policy loans — 164 — — 164 0 %
Equity index call options — 924 — — 924 2 %
Real estate and other investments 122 265 55 (164 ) 278 1 %
Total cash and investments $ 12,190 $ 42,914 $ 312 $ (164 ) $ 55,252 100 %

Page 24

American Financial Group, Inc.<br> <br>NetInvestment Income<br> <br>($ in millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Property and Casualty Insurance:
Gross Investment Income
Fixed maturities - Available for sale $ 72 $ 75 $ 81 $ 79 $ 75 $ 228 $ 231
Fixed maturities - Trading — — 1 — 1 1 3
Equity securities - dividends 8 8 10 11 12 26 38
Equity securities - MTM (3 ) 2 3 (1 ) 7 2 10
Equity in investees 27 (15 ) 11 21 20 23 43
AFG managed CLOs 4 — (11 ) (2 ) (2 ) (7 ) 3
Other investments (a) 5 3 6 13 12 14 29
Gross investment income 113 73 101 121 125 287 357
Investment expenses (2 ) (1 ) (2 ) (1 ) (1 ) (5 ) (5 )
Total net investment income $ 111 $ 72 $ 99 $ 120 $ 124 $ 282 $ 352
Average cash and investments (b) $ 11,764 $ 11,454 $ 11,457 $ 11,744 $ 11,387 $ 11,611 $ 11,192
Average yield (c) 3.77 % 2.51 % 3.46 % 4.09 % 4.36 % 3.24 % 4.19 %
Fixed Annuity
Gross Investment Income
Fixed maturities - Available for sale $ 394 $ 402 $ 403 $ 406 $ 393 $ 1,199 $ 1,168
Equity securities - dividends 7 8 7 8 9 22 26
Equity securities - MTM (2 ) — 5 4 7 3 13
Equity in investees 39 (39 ) 14 24 23 14 66
AFG managed CLOs 9 2 (25 ) (5 ) (3 ) (14 ) 8
Other investments (a) 19 14 19 23 21 52 58
Gross investment income 466 387 423 460 450 1,276 1,339
Investment expenses (4 ) (5 ) (3 ) (4 ) (4 ) (12 ) (12 )
Total net investment income $ 462 $ 382 $ 420 $ 456 $ 446 $ 1,264 $ 1,327
Average cash and investments (b) $ 40,859 $ 40,570 $ 40,073 $ 39,316 $ 38,650 $ 40,501 $ 37,849
Average yield (c) 4.52 % 3.77 % 4.19 % 4.63 % 4.62 % 4.16 % 4.68 %
AFG consolidated net investment income:
Property & Casualty core $ 111 $ 72 $ 99 $ 120 $ 124 $ 282 $ 352
Neon exited lines non-core 1 — (6 ) — — (5 ) —
Annuity:
Fixed Annuity 462 382 420 456 446 1,264 1,327
Variable Annuity 2 2 2 2 2 6 7
Parent & other 9 14 (7 ) 8 11 16 35
Consolidate CLOs (13 ) (2 ) 36 7 5 21 (11 )
Total net investment income $ 572 $ 468 $ 544 $ 593 $ 588 $ 1,584 $ 1,710
(a) Includes income from mortgage loans, real estate, policy loans, short-term investments, and cash equivalents.<br>
--- ---
(b) Average cash and investments is the average of the beginning and ending quarter balances, or the average of the<br>five quarters balances.
--- ---
(c) Average yield is calculated by dividing investment income for the quarter by the average cash and investment<br>balance over the quarter.
--- ---

Page 25

American Financial Group, Inc.<br><br><br>Insurance Companies' Alternative Investments<br> <br>($ in<br>millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Property and Casualty Insurance:
Net Investment Income
Equity securities MTM through investment income (a) $ (3 ) $ 2 $ 3 $ (1 ) $ 7 $ 2 $ 10
Investments accounted for using the equity method (b) 27 (15 ) 11 21 20 23 43
AFG managed CLOs (eliminated in consolidation) 4 — (11 ) (2 ) (2 ) (7 ) 3
Total Property & Casualty $ 28 **** $ (13 ) $ 3 **** $ 18 **** $ 25 **** $ 18 **** $ 56 ****
Investments
Equity securities MTM through investment income (a) $ 109 $ 95 $ 86 $ 71 $ 63 $ 109 $ 63
Investments accounted for using the equity method (b) 778 755 736 703 625 778 625
AFG managed CLOs (eliminated in consolidation) 46 39 40 48 53 46 53
Total Property & Casualty $ 933 **** $ 889 **** $ 862 **** $ 822 **** $ 741 **** $ 933 **** $ 741 ****
Annualized Yield - Property & Casualty **** 12.3 % **** (5.9 %) **** 1.4 % **** 9.2 % **** 13.7 % **** 2.7 % **** 10.8 %
Fixed Annuity:
Net Investment Income
Equity securities MTM through investment income (a) $ (2 ) $ — $ 5 $ 4 $ 7 $ 3 $ 13
Investments accounted for using the equity method (b) 39 (39 ) 14 24 23 14 66
AFG managed CLOs (eliminated in consolidation) 9 2 (25 ) (5 ) (3 ) (14 ) 8
Total Fixed Annuity $ 46 **** $ (37 ) $ (6 ) $ 23 **** $ 27 **** $ 3 **** $ 87 ****
Investments
Equity securities MTM through investment income (a) $ 186 $ 168 $ 160 $ 142 $ 120 $ 186 $ 120
Investments accounted for using the equity method (b) 1,063 1,026 1,027 985 910 1,063 910
AFG managed CLOs (eliminated in consolidation) 129 118 120 116 125 129 125
Total Fixed Annuity $ 1,378 **** $ 1,312 **** $ 1,307 **** $ 1,243 **** $ 1,155 **** $ 1,378 **** $ 1,155 ****
Annualized Yield - Fixed Annuity **** 13.7 % **** (11.3 %) **** (1.9 %) **** 7.7 % **** 9.5 % **** 0.3 % **** 10.5 %
Combined:
Net Investment Income
Equity securities MTM through investment income (a) $ (5 ) $ 2 $ 8 $ 3 $ 14 $ 5 $ 23
Investments accounted for using the equity method (b) 66 (54 ) 25 45 43 37 109
AFG managed CLOs (eliminated in consolidation) 13 2 (36 ) (7 ) (5 ) (21 ) 11
Total Combined $ 74 **** $ (50 ) $ (3 ) $ 41 **** $ 52 **** $ 21 **** $ 143 ****
Investments
Equity securities MTM through investment income (a) $ 295 $ 263 $ 246 $ 213 $ 183 $ 295 $ 183
Investments accounted for using the equity method (b) 1,841 1,781 1,763 1,688 1,535 1,841 1,535
AFG managed CLOs (eliminated in consolidation) 175 157 160 164 178 175 178
Total Combined $ 2,311 **** $ 2,201 **** $ 2,169 **** $ 2,065 **** $ 1,896 **** $ 2,311 **** $ 1,896 ****
Annualized Yield - Combined **** 13.1 % **** (9.2 %) **** (0.6 %) **** 8.3 % **** 11.1 % **** 1.3 % **** 10.6 %
(a) AFG carries the small portion of its equity securities previously classified as "trading" and investments in<br>limited partnerships and similar investments that aren't accounted for using the equity method at fair value through net investment income.
--- ---
(b) The majority of AFG's investments accounted for using the equity method mark their underlying assets to market<br>through net income.
--- ---

Page 26

American Financial Group, Inc.<br><br><br>Fixed Maturities - By Security Type - AFG Consolidated<br> <br>($<br>in millions)
September 30, 2020 Book Value (b) Fair Value Unrealized<br>Gain (Loss) % of<br>Fair Value % of<br>Investment<br>Portfolio
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
US Government and government agencies $ 213 $ 226 $ 13 0 % 0 %
States, municipalities and political subdivisions 6,167 6,739 572 14 % 12 %
Foreign government 225 233 8 0 % 0 %
Residential mortgage-backed securities 2,880 3,138 258 7 % 5 %
Commercial mortgage-backed securities 814 856 42 2 % 2 %
Collateralized loan obligations 4,623 4,607 (16 ) 10 % 8 %
Other asset-backed securities 7,389 7,419 30 15 % 13 %
Corporate and other bonds 23,024 25,067 2,043 52 % 43 %
Total AFG consolidated $ 45,335 $ 48,285 $ 2,950 100 % 83 %
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a) 4.16 %
Net of investment expense (a) 4.12 %
Approximate average life and duration:
Approximate average life 5.5 years
Approximate duration 4 years
December 31, 2019 Book Value Fair Value Unrealized<br>Gain (Loss) % of<br>Fair Value % of<br>Investment<br>Portfolio
US Government and government agencies $ 203 $ 213 $ 10 1 % 0 %
States, municipalities and political subdivisions 6,628 6,987 359 15 % 12 %
Foreign government 209 211 2 0 % 0 %
Residential mortgage-backed securities 2,901 3,161 260 7 % 6 %
Commercial mortgage-backed securities 896 927 31 2 % 2 %
Collateralized loan obligations 4,307 4,280 (27 ) 9 % 8 %
Other asset-backed securities 6,992 7,128 136 15 % 13 %
Corporate and other bonds 22,501 23,711 1,210 51 % 43 %
Total AFG consolidated $ 44,637 $ 46,618 $ 1,981 100 % 84 %
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a) 4.48 %
Net of investment expense (a) 4.44 %
Approximate average life and duration:
Approximate average life 5.5 years
Approximate duration 4 years
(a) Annualized yield is calculated by dividing investment income for the quarter by the average cost over the<br>quarter. Average cost is the average of the beginning and ending quarter asset balances.
--- ---
(b) Book Value is amortized cost, net of allowance for expected credit losses.
--- ---

Page 27

American Financial Group, Inc.<br><br><br>Fixed Maturities - By Security Type Portfolio<br> <br>($ in<br>millions)
September 30, 2020 December 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Property and Casualty Insurance: Book Value FairValue Unrealized<br>Gain (Loss) % of<br>Fair Value Book Value FairValue Unrealized<br>Gain (Loss) % of<br>Fair Value
US Government and government agencies $ 174 $ 181 $ 7 2 % $ 165 $ 167 $ 2 2 %
States, municipalities and political subdivisions 2,312 2,426 114 27 % 2,524 2,614 90 30 %
Foreign government 194 198 4 2 % 178 177 (1 ) 2 %
Residential mortgage-backed securities 889 943 54 11 % 990 1,051 61 12 %
Commercial mortgage-backed securities 85 88 3 1 % 89 92 3 1 %
Collateralized loan obligations 960 954 (6 ) 11 % 906 901 (5 ) 11 %
Other asset-backed securities 1,906 1,910 4 22 % 1,727 1,741 14 20 %
Corporate and other bonds 2,034 2,108 74 24 % 1,861 1,912 51 22 %
Property and Casualty Insurance $ 8,554 $ 8,808 $ 254 100 % $ 8,440 $ 8,655 $ 215 100 %
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a) 3.40 % 3.94 %
Net of investment expense (a) 3.34 % 3.90 %
Tax equivalent, net of investment expense (b) 3.49 % 4.05 %
Approximate average life and duration:
Approximate average life 4 years 4.5 years
Approximate duration 3 years 3 years
September 30, 2020 December 31, 2019
Annuity and Run-off: Book Value FairValue Unrealized<br>Gain (Loss) % of<br>Fair Value Book Value FairValue Unrealized<br>Gain (Loss) % of<br>Fair Value
US Government and government agencies $ 39 $ 45 $ 6 0 % $ 38 $ 46 $ 8 0 %
States, municipalities and political subdivisions 3,855 4,313 458 11 % 4,104 4,373 269 12 %
Foreign government 31 35 4 0 % 31 34 3 0 %
Residential mortgage-backed securities 1,990 2,187 197 6 % 1,909 2,100 191 6 %
Commercial mortgage-backed securities 729 768 39 2 % 807 835 28 2 %
Collateralized loan obligations 3,663 3,653 (10 ) 9 % 3,401 3,379 (22 ) 9 %
Other asset-backed securities 5,483 5,509 26 14 % 5,265 5,387 122 14 %
Corporate and other bonds 20,990 22,959 1,969 58 % 20,640 21,799 1,159 57 %
Total Annuity and Run-off $ 36,780 $ 39,469 $ 2,689 100 % $ 36,195 $ 37,953 $ 1,758 100 %
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a) 4.33 % 4.59 %
Net of investment expense (a) 4.29 % 4.55 %
Approximate average life and duration:
Approximate average life 6 years 6 years
Approximate duration 4.5 years 4.5 years
(a) Annualized yield is calculated by dividing investment income for the quarter by the average cost over the<br>quarter. Average cost is the average of the beginning and ending quarter asset balances.
--- ---
(b) Adjusts the yield on tax-exempt bonds to the fully taxable equivalent yield.
--- ---

Page 28

American Financial Group, Inc.<br><br><br>Fixed Matu<br> <br>rities - Credit Rating<br><br><br>($ in millions)
September 30, 2020
--- --- --- --- --- --- --- --- --- --- ---
By Credit Rating (a) Book V.alue Fair Value Unrealized<br>Gain (Loss) % of<br>Fair Value
Investment grade
AAA $ 9,539 $ 9,819 $ 280 20 %
AA 7,836 8,299 463 17 %
A 9,431 10,227 796 21 %
BBB 14,074 15,292 1,218 32 %
Subtotal — Investment grade 40,880 43,637 2,757 90 %
BB 832 813 (19 ) 2 %
B 291 291 — 1 %
Other (b) 3,332 3,544 212 7 %
Subtotal — Non-Investment grade 4,455 4,648 193 10 %
Total $ 45,335 $ 48,285 $ 2,950 100 %
97% of the fixed maturity portfolio is NAIC designated 1 or 2.
--- ---
December 31, 2019
--- --- --- --- --- --- --- --- --- --- ---
By Credit Rating (a) Book Value Fair Value Unrealized<br>Gain (Loss) % of<br>Fair Value
Investment grade
AAA $ 8,854 $ 9,010 $ 156 19 %
AA 8,615 8,957 342 19 %
A 10,456 10,983 527 24 %
BBB 12,759 13,465 706 29 %
Subtotal — Investment grade 40,684 42,415 1,731 91 %
BB 714 724 10 2 %
B 186 183 (3 ) 0 %
Other (b) 3,053 3,296 243 7 %
Subtotal — Non-Investment grade 3,953 4,203 250 9 %
Total $ 44,637 $ 46,618 $ 1,981 100 %
98% of the fixed maturity portfolio is NAIC designated 1 or 2.
--- ---
(a) If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies<br>rate a security, the rating displayed is the second lowest.
--- ---
(b) See pages 33 and 34 for more information.
--- ---

Page 29

American Financial Group, Inc.<br><br><br>Mortgage-Backed Securities - AFG Consolidated<br> <br>($ in<br>millions)
September 30, 2020 Book Value Fair Value Unrealized<br>Gain (Loss) % of<br>Fair Value % of<br>Investment<br>Portfolio
--- --- --- --- --- --- --- --- --- --- --- --- ---
Residential
Agency $ 485 $ 492 $ 7 12 % 1 %
Prime (Non-Agency) 1,301 1,412 111 36 % 2 %
Alt-A 811 920 109 23 % 2 %
Subprime 283 314 31 8 % 1 %
Commercial 814 856 42 21 % 1 %
Total AFG consolidated $ 3,694 $ 3,994 $ 300 100 % 7 %
- Substantially all of AFG’s MBS securities are either senior tranches of securitizations or collateralized by<br>senior tranches of securitizations.
--- ---
- The average amortized cost as a percent of par is - Prime 88%; Alt-A 81%; Subprime 82%; CMBS 99%.<br>
--- ---
- The average FICO score of our residential MBS securities is - Prime 746; Alt-A 692; Subprime 631.<br>
--- ---
- 93% of our Commercial MBS portfolio is investment-grade rated (81% AAA) and the average subordination for this<br>group of assets is 37%.
--- ---
- The approximate average life by collateral type is - Residential 4 years; Commercial 3 years.<br>
--- ---
December 31, 2019 Book Value Fair Value Unrealized<br>Gain (Loss) % of<br>Fair Value % of<br>Investment<br>Portfolio
--- --- --- --- --- --- --- --- --- --- --- --- ---
Residential
Agency $ 549 $ 552 $ 3 13 % 1 %
Prime (Non-Agency) 1,157 1,264 107 31 % 2 %
Alt-A 897 1,015 118 25 % 2 %
Subprime 298 330 32 8 % 1 %
Commercial 896 927 31 23 % 2 %
Total AFG consolidated $ 3,797 $ 4,088 $ 291 100 % 8 %

Page 30

American Financial Group, Inc.<br><br><br>Mortgage-Backed Securities Portfolio<br> <br>($ in<br>millions)
Property and Casualty Insurance: September 30, 2020
--- --- --- --- --- --- --- --- --- --- --- --- ---
By Asset Type Book Value Fair Value Unrealized<br>Gain (Loss) % of<br>Fair Value % of Inv<br>Portfolio
Residential
Agency $ 247 $ 251 $ 4 24 % 2 %
Prime (Non-Agency) 307 321 14 31 % 2 %
Alt-A 226 252 26 24 % 2 %
Subprime 109 119 10 12 % 1 %
Commercial 85 88 3 9 % 1 %
Total $ 974 $ 1,031 $ 57 **** 100 % **** 8 %
December 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- ---
By Asset Type Book Value Fair Value Unrealized<br>Gain (Loss) % of<br>Fair Value % of Inv<br>Portfolio
Residential
Agency $ 315 $ 317 $ 2 28 % 3 %
Prime (Non-Agency) 279 292 13 26 % 2 %
Alt-A 265 299 34 26 % 2 %
Subprime 131 143 12 12 % 1 %
Commercial 89 92 3 8 % 1 %
Total $ 1,079 $ 1,143 $ 64 **** 100 % **** 9 %
Annuity and Run-off: September 30, 2020
--- --- --- --- --- --- --- --- --- --- --- --- ---
By Asset Type Book Value Fair Value Unrealized<br>Gain (Loss) % of<br>Fair Value % of Inv<br>Portfolio
Residential
Agency $ 238 $ 241 $ 3 8 % 1 %
Prime (Non-Agency) 993 1,083 90 37 % 2 %
Alt-A 585 668 83 23 % 2 %
Subprime 174 195 21 6 % 0 %
Commercial 729 768 39 26 % 2 %
Total $ 2,719 $ 2,955 $ 236 **** 100 % **** 7 %
December 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- ---
By Asset Type Book Value Fair` Value Unrealized<br>Gain (Loss) % of<br>Fair Value % of Inv<br>Portfolio
Residential
Agency $ 234 $ 235 $ 1 8 % 1 %
Prime (Non-Agency) 876 962 86 33 % 2 %
Alt-A 632 716 84 25 % 2 %
Subprime 167 187 20 6 % 0 %
Commercial 807 835 28 28 % 2 %
Total $ 2,716 $ 2,935 $ 219 **** 100 % **** 7 %

Page 31

Appendix A<br><br><br>American Financial Group, Inc.<br> <br>Components of CoreOperating Earnings As Reported )<br> <br>($ in millions)
Three Months Ended Nine Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/20 6/30/20 3/31/20 12/31/19 9/30/19 9/30/20 9/30/19
Core operating earnings before alternative investments marked to market
Property and Casualty Insurance core operating earnings before alternative investments marked to<br>market $ 177 $ 129 $ 178 $ 181 $ 169 $ 484 $ 498
Annuity Pretax core operating earnings before alternative investments marked to market 81 84 79 84 75 244 214
Interest expense of parent holding companies (24 ) (23 ) (17 ) (18 ) (17 ) (64 ) (50 )
Other expense (28 ) (20 ) (20 ) (32 ) (22 ) (68 ) (74 )
Pre-tax core operating earnings before alternative investments marked to market 206 170 220 215 205 596 588
Income tax expense 43 31 42 42 39 116 114
Core net operating earnings before alternative investments marked to market $ 163 $ 139 $ 178 $ 173 $ 166 $ 480 $ 474
Alternative investments marked to market through core operating earnings, net ofDAC
Property and Casualty Insurance alternative investments marked to market $ 28 $ (13 ) $ 3 $ 18 $ 25 $ 18 $ 56
Annuity alternative investments marked to market, net of DAC 40 (42 ) (12 ) 20 25 (14 ) 80
Core pre-tax alternative investments marked to market, net of DAC 68 (55 ) (9 ) 38 50 4 136
Income tax expense 14 (11 ) (2 ) 8 11 1 29
Alternative investments marked to market through core operating earnings, net ofDAC $ 54 $ (44 ) $ (7 ) $ 30 $ 39 $ 3 $ 107
Core operating earnings as reported
Property and Casualty Insurance operating earnings $ 205 $ 116 $ 181 $ 199 $ 194 $ 502 $ 554
Annuity operating earnings 121 42 67 104 100 230 294
Interest expense of parent holding companies (24 ) (23 ) (17 ) (18 ) (17 ) (64 ) (50 )
Other expense (28 ) (20 ) (20 ) (32 ) (22 ) (68 ) (74 )
Pre-tax core operating earnings as reported 274 115 211 253 255 600 724
Income tax expense 57 20 40 50 50 117 143
Core net operating earnings as reported $ 217 $ 95 $ 171 $ 203 $ 205 $ 483 $ 581
Average number of diluted shares 88.546 89.997 91.138 91.274 91.137 89.889 90.940
Diluted core net operating earnings per share:
Core net operating earnings before alternative investments marked to market pershare $ 1.84 $ 1.53 $ 1.96 $ 1.90 $ 1.82 $ 5.34 $ 5.21
Core alternative investments marked to market through core operating earnings, net of DAC per<br>share 0.61 (0.48 ) (0.08 ) 0.32 0.43 0.03 1.18
Core net operating earnings as reported per share $ 2.45 $ 1.05 $ 1.88 $ 2.22 $ 2.25 $ 5.37 $ 6.39

Page 32

Appendix B<br><br><br>American Financial Group, Inc.<br> <br>Fixed Maturities byCredit Rating & NAIC Designation by Type<br> <br>9/30/2020<br><br><br>($ in millions)
Fair Value by Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
By Credit Rating (a) US Gov Munis Frgn Gov RMBS CMBS CLOs ABS Corp/Oth Total % Total
Investment grade
AAA $ 216 $ 1,967 $ 180 $ 1,231 $ 697 $ 3,385 $ 1,982 $ 161 $ 9,819 20 %
AA 10 4,224 36 131 19 960 1,930 989 8,299 17 %
A — 391 1 316 6 202 1,611 7,700 10,227 21 %
BBB — 93 3 69 74 48 954 14,051 15,292 32 %
Subtotal - Investment grade 226 6,675 220 1,747 796 4,595 6,477 22,901 43,637 90 %
BB — 9 — 61 32 — 11 700 813 2 %
B — — — 106 — — 28 157 291 1 %
CCC, CC, C — — — 501 5 — 3 37 546 1 %
D — — — 176 — — — 1 177 0 %
Subtotal - Non-Investment grade — 9 — 844 37 — 42 895 1,827 4 %
Not Rated (b) — 55 13 547 23 12 900 1,271 2,821 6 %
Total $ 226 $ 6,739 $ 233 $ 3,138 $ 856 $ 4,607 $ 7,419 $ 25,067 $ 48,285 100 %
Fair Value by type
NAIC designation US Gov Munis Frgn gov RMBS CMBS CLOs ABS Corp/Oth Total % Total
1 $ 209 $ 6,636 $ 195 $ 3,033 $ 808 $ 4,546 $ 6,460 $ 9,815 $ 31,702 68 %
2 — 93 — 36 14 48 901 14,205 15,297 29 %
Subtotal 209 6,729 195 3,069 822 4,594 7,361 24,020 46,999 97 %
3 — 9 — 23 31 — 18 735 816 2 %
4 — — — 11 — — 28 217 256 1 %
5 — — — 20 3 12 3 77 115 0 %
6 16 — — 5 — — 5 10 36 0 %
Subtotal 16 9 — 59 34 12 54 1,039 1,223 3 %
No designation (c) 1 1 38 10 — 1 4 8 63 0 %
Total $ 226 $ 6,739 $ 233 $ 3,138 $ 856 $ 4,607 $ 7,419 $ 25,067 $ 48,285 100 %
(a) If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies<br>rate a security, the rating displayed is the second lowest.
--- ---
(b) For ABS, 99% are NAIC 1.
--- ---

For Corp/Oth, 83% are NAIC 1, 7% NAIC 2, 5% NAIC 3, 3% NAIC 4, 2% NAIC 5.

For Total, 90% are NAIC 1, 3% NAIC 2, 3% NAIC 3, 1% NAIC 4, 2% NAIC 5.

(c) Primarily relates to securities held by non-insurance companies.

Page 33

Appendix C<br><br><br>American Financial Group, Inc.<br> <br>Fixed Maturities byCredit Rating & NAIC Designation by Type<br> <br>12/31/2019<br><br><br>($ in millions)
Fair Value by Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
By Credit Rating (a) US Gov Munis Frgn Gov RMBS CMBS CLOs ABS Corp/Oth Total % Total
Investment grade
AAA $ 204 $ 2,086 $ 134 $ 1,184 $ 773 $ 2,921 $ 1,529 $ 179 $ 9,010 19 %
AA 9 4,325 52 131 20 1,074 1,779 1,567 8,957 19 %
A — 418 8 250 16 241 1,983 8,067 10,983 24 %
BBB — 95 3 115 78 27 742 12,405 13,465 29 %
Subtotal - Investment grade 213 6,924 197 1,680 887 4,263 6,033 22,218 42,415 91 %
BB — 9 — 74 32 — 13 596 724 2 %
B — — 1 97 5 — 4 76 183 0 %
CCC, CC, C — — — 544 3 — 4 42 593 1 %
D — — — 185 — — — 1 186 0 %
Subtotal - Non-Investment grade — 9 1 900 40 — 21 715 1,686 3 %
Not Rated (b) — 54 13 581 — 17 1,074 778 2,517 6 %
Total $ 213 $ 6,987 $ 211 $ 3,161 $ 927 $ 4,280 $ 7,128 $ 23,711 $ 46,618 100 %
Fair Value by Type
NAIC designation US Gov Munis Frgn gov RMBS CMBS CLOs ABS Corp/Oth Total % Total
1 $ 191 $ 6,875 $ 172 $ 3,030 $ 883 $ 4,232 $ 6,308 $ 10,310 $ 32,001 69 %
2 — 95 — 29 9 26 770 12,518 13,447 29 %
Subtotal 191 6,970 172 3,059 892 4,258 7,078 22,828 45,448 98 %
3 — 9 — 29 32 — 13 601 684 2 %
4 — — — 16 — — 4 146 166 0 %
5 — — — 21 3 18 4 92 138 0 %
6 15 — — 5 — — 15 5 40 0 %
Subtotal 15 9 — 71 35 18 36 844 1,028 2 %
No designation (c) 7 8 39 31 — 4 14 39 142 0 %
Total $ 213 $ 6,987 $ 211 $ 3,161 $ 927 $ 4,280 $ 7,128 $ 23,711 $ 46,618 100 %
(a) If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies<br>rate a security, the rating displayed is the second lowest.
--- ---
(b) 87% are NAIC 1, 4% NAIC 2, 2% NAIC 3, 3% NAIC 4, 3% NAIC 5 and 1% NAIC 6.
--- ---
(c) Primarily relates to securities held by non-insurance companies.
--- ---

Page 34

Appendix D<br><br><br>American Financial Group, Inc.<br> <br>Corporate Securities byCredit Rating & NAIC Designation by Industry<br> <br>9/30/2020<br><br><br>($ in millions)
Fair Value By Industry
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
CreditRating(a) Banking Insurance OtherFinancials Technology AssetManagers Energy Healthcare Consumer REITs Utilities CapitalGoods BasicIndustry Media Autos Communications Retailers Restaurants,Hospitality& Leisure Aviation Other Total %Total
Investment<br>Grade
AAA $ — $ — $ — $ 26 $ — $ — $ 21 $ 32 $ — $ — $ — $ — $ — $ — $ 80 $ — $ — $ — $ 2 $ 161 1 %
AA 87 130 99 113 78 179 91 110 — — 1 — — — — 23 18 — 60 989 4 %
A 2,030 1,059 358 529 757 210 357 259 315 538 378 43 213 140 162 82 14 78 178 7,700 30 %
BBB 3,387 1,172 795 1,027 775 1,005 893 570 657 384 448 659 423 500 334 274 224 178 346 14,051 56 %
Subtotal 5,504 2,361 1,252 1,695 1,610 1,394 1,362 971 972 922 827 702 636 640 576 379 256 256 586 22,901 91 %
BB 41 23 30 67 10 142 56 69 36 9 31 30 3 45 3 52 36 16 1 700 3 %
B — 1 — 5 — 13 14 16 84 — — 9 — 1 — 1 8 5 — 157 1 %
CCC, CC, C — — — 9 — 3 2 4 — — — 4 — — — 5 10 — — 37 0 %
D — — — — — — — — — — — — — — — — 1 — — 1 0 %
Subtotal 41 24 30 81 10 158 72 89 120 9 31 43 3 46 3 58 55 21 1 895 4 %
Not<br>Rated<br>(b) 15 13 960 27 — 6 29 75 32 — 5 10 52 — — 24 10 — 13 1,271 5 %
Total $ 5,560 $ 2,398 $ 2,242 $ 1,803 $ 1,620 $ 1,558 $ 1,463 $ 1,135 $ 1,124 $ 931 $ 863 $ 755 $ 691 $ 686 $ 579 $ 461 $ 321 $ 277 $ 600 $ 25,067 100 %
Fair Value By Industry
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAICdesignation Banking Insurance OtherFinancials Technology AssetManagers Energy Healthcare Consumer REITs Utilities CapitalGoods BasicIndustry Media Autos Communications Retailers Restaurants,Hospitality& Leisure Aviation Other Total %Total
1 $ 2,144 $ 1,196 $ 1,369 $ 684 $ 804 $ 366 $ 489 $ 434 $ 315 $ 538 $ 379 $ 44 $ 212 $ 140 $ 242 $ 128 $ 32 $ 78 $ 221 $ 9,815 39 %
2 3,370 1,177 815 1,031 806 1,028 889 583 657 384 453 667 466 500 334 274 223 178 370 14,205 57 %
Subtotal 5,514 2,373 2,184 1,715 1,610 1,394 1,378 1,017 972 922 832 711 678 640 576 402 255 256 591 24,020 96 %
3 46 14 29 62 10 142 54 74 68 9 30 29 4 46 3 52 46 16 1 735 3 %
4 — 10 28 7 — 13 30 21 84 — — 10 — — — 1 8 5 — 217 1 %
5 — 1 — 18 — 3 1 23 — — 1 5 9 — — 6 10 — — 77 0 %
6 — — 1 1 — 6 — — — — — — — — — — 2 — — 10 0 %
Subtotal 46 25 58 88 10 164 85 118 152 9 31 44 13 46 3 59 66 21 1 1,039 4 %
No<br>designation<br>(c) — — — — — — — — — — — — — — — — — — 8 8 0 %
Total $ 5,560 $ 2,398 $ 2,242 $ 1,803 $ 1,620 $ 1,558 $ 1,463 $ 1,135 $ 1,124 $ 931 $ 863 $ 755 $ 691 $ 686 $ 579 $ 461 $ 321 $ 277 $ 600 $ 25,067 100 %
(a) If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies<br>rate a security, the rating displayed is the second lowest.
--- ---
(b) For Other Financials, 96% are NAIC 1 and 97% are NAIC 1 or 2.
--- ---

For the Total, 83% are NAIC 1, 7% NAIC 2, 5% NAIC 3, 3% NAIC 4, 2% NAIC 5.

(c) Primarily relates to securities held by non-insurance companies.

Page 35

Appendix E<br> <br>American FinancialGroup, Inc.<br> <br>Corporate Securities by Credit Rating & NAIC Designation by Industry<br><br><br>12/31/2019<br> <br>($ in millions)
Fair Value By Industry
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
CreditRating(a) Banking Insurance OtherFinancials Technology AssetManagers Energy Healthcare Consumer REITs Utilities CapitalGoods BasicIndustry Media Autos Communications Retailers Restaurants,Hospitality& Leisure Aviation Other Total %Total
Investment Grade
AAA $ — $ — $ — $ 48 $ — $ — $ 20 $ 29 $ — $ — $ — $ — $ — $ — $ 78 $ — $ — $ — $ 4 $ 179 1 %
AA 219 308 72 146 205 204 98 114 — — 1 — — 35 — 22 20 46 77 1,567 7 %
A 2,482 921 326 471 775 260 425 258 352 450 333 44 112 278 176 89 18 166 131 8,067 34 %
BBB 2,691 1,034 656 862 576 1,199 753 673 845 291 424 556 454 334 264 209 206 133 245 12,405 52 %
Subtotal 5,392 2,263 1,054 1,527 1,556 1,663 1,296 1,074 1,197 741 758 600 566 647 518 320 244 345 457 22,218 94 %
BB 3 15 29 75 17 102 50 89 75 19 11 46 3 4 4 — 44 10 — 596 3 %
B — 1 — 4 — — 18 22 — — — 16 5 — — — 10 — — 76 0 %
CCC, CC, C — — 1 9 — 1 — 2 — — — — — — — 12 17 — — 42 0 %
D — — — — — 1 — — — — — — — — — — — — — 1 0 %
Subtotal 3 16 30 88 17 104 68 113 75 19 11 62 8 4 4 12 71 10 — 715 3 %
Not Rated (b) 33 14 486 1 7 2 34 97 20 — 5 8 50 — 2 13 4 — 2 778 3 %
Total $ 5,428 $ 2,293 $ 1,570 $ 1,616 $ 1,580 $ 1,769 $ 1,398 $ 1,284 $ 1,292 $ 760 $ 774 $ 670 $ 624 $ 651 $ 524 $ 345 $ 319 $ 355 $ 459 $ 23,711 100 %
Fair Value By Industry
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAICdesignation Banking Insurance OtherFinancials Technology AssetManagers Energy Healthcare Consumer REITs Utilities CapitalGoods BasicIndustry Media Autos Communications Retailers Restaurants,Hospitality& Leisure Aviation Other Total %Total
1 $ 2,712 $ 1,235 $ 842 $ 663 $ 950 $ 440 $ 562 $ 448 $ 349 $ 449 $ 330 $ 64 $ 112 $ 348 $ 253 $ 124 $ 22 $ 213 $ 194 $ 10,310 43 %
2 2,712 1,031 675 862 606 1,222 767 688 859 291 428 552 454 298 263 209 224 129 248 12,518 53 %
Subtotal 5,424 2,266 1,517 1,525 1,556 1,662 1,329 1,136 1,208 740 758 616 566 646 516 333 246 342 442 22,828 96 %
3 3 15 28 66 17 103 50 98 84 19 10 38 3 4 4 — 46 13 — 601 3 %
4 — 11 13 6 — — 16 27 — — — 16 47 — — — 10 — — 146 1 %
5 — — 11 16 7 1 2 17 — — 1 — 7 — 2 11 17 — — 92 0 %
6 — — — 1 — 3 — — — — — — — — — 1 — — — 5 0 %
Subtotal 3 26 52 89 24 107 68 142 84 19 11 54 57 4 6 12 73 13 — 844 4 %
No designation (c) 1 1 1 2 — — 1 6 — 1 5 — 1 1 2 — — — 17 39 0 %
Total $ 5,428 $ 2,293 $ 1,570 $ 1,616 $ 1,580 $ 1,769 $ 1,398 $ 1,284 $ 1,292 $ 760 $ 774 $ 670 $ 624 $ 651 $ 524 $ 345 $ 319 $ 355 $ 459 $ 23,711 100 %
(a) If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies<br>rate a security, the rating displayed is the second lowest.
--- ---
(b) 74% are NAIC 1, 9% NAIC 2, 3% NAIC 3, 8% NAIC 4, 6% NAIC 5.
--- ---
(c) Primarily relates to securities held by non-insurance companies.
--- ---

Page 36

Appendix F<br> <br>American Financial Group,Inc.<br> <br>Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br><br><br>9/30/2020<br> <br>($ in millions)
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Credit Rating (a) SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate Single FamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Life Ins/StructuredSettlements Other Total %Total
Investment Grade
AAA $ — $ — $ — $ — $ 870 $ 467 $ — $ 74 $ 61 $ 159 $ 351 $ 1,982 27 %
AA 301 1,036 148 — 33 119 — — 92 — 201 1,930 26 %
A 78 348 22 597 — 11 192 — 30 1 332 1,611 22 %
BBB 10 43 577 12 — — 132 114 — 2 64 954 13 %
Subtotal 389 1,427 747 609 903 597 324 188 183 162 948 6,477 88 %
BB — 1 — — — — 5 — — 5 — 11 0 %
B — — — — — — 24 — — — 4 28 0 %
CCC, CC, C — — — — — — — — — 3 — 3 0 %
D — — — — — — — — — — — — 0 %
Subtotal — 1 — — — — 29 — — 8 4 42 0 %
Not Rated (b) 891 — — — — — 9 — — — — 900 12 %
Total $ 1,280 $ 1,428 $ 747 $ 609 $ 903 $ 597 $ 362 $ 188 $ 183 $ 170 $ 952 $ 7,419 100 %
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAIC designation SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate Single FamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Life Ins/StructuredSettlements Other Total %Total
1 $ 1,270 $ 1,384 $ 170 $ 597 $ 903 $ 597 $ 191 $ 121 $ 183 $ 160 $ 884 $ 6,460 87 %
2 10 43 577 12 — — 125 67 — 2 65 901 12 %
Subtotal 1,280 1,427 747 609 903 597 316 188 183 162 949 7,361 99 %
3 — 1 — — — — 12 — — 5 — 18 0 %
4 — — — — — — 25 — — — 3 28 1 %
5 — — — — — — — — — 3 — 3 0 %
6 — — — — — — 5 — — — — 5 0 %
Subtotal — 1 — — — — 42 — — 8 3 54 1 %
No designation (d) — — — — — — 4 — — — — 4 0 %
Total $ 1,280 $ 1,428 $ 747 $ 609 $ 903 $ 597 $ 362 $ 188 $ 183 $ 170 $ 952 $ 7,419 100 %
(a) If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies<br>rate a security, the rating displayed is the second lowest.
--- ---
(b) 99% of not rated securities are NAIC 1.
--- ---
(c) Secured Financings are privately placed funding agreements secured by assets including Single Family Rental<br>properties, Bank Loans, Bank Trust Preferreds, Commercial and Residential Mortgages.
--- ---
(d) Primarily relates to securities held by non-insurance companies.
--- ---

Page 37

Appendix G<br> <br>American FinancialGroup, Inc.<br> <br>Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br><br><br>12/31/2019<br> <br>($ in millions)
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Credit Rating (a) SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate Single FamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Life Ins/StructuredSettlements Other Total %Total
Investment Grade
AAA $ — $ — $ — $ — $ 460 $ 367 $ — $ 167 $ 64 $ 157 $ 314 $ 1,529 22 %
AA 311 990 92 — 52 106 — 34 110 — 84 1,779 25 %
A 78 326 22 602 — 11 442 — 17 3 482 1,983 28 %
BBB 10 53 599 — — — — 38 — 1 41 742 10 %
Subtotal 399 1,369 713 602 512 484 442 239 191 161 921 6,033 85 %
BB — 1 — — — — 7 — — 5 — 13 0 %
B — — — — — — — — — — 4 4 0 %
CCC, CC, C — — — — — — — — — 3 1 4 0 %
D — — — — — — — — — — — — 0 %
Subtotal — 1 — — — — 7 — — 8 5 21 0 %
Not Rated (b) 1,060 — — — — — 14 — — — — 1,074 15 %
Total $ 1,459 $ 1,370 $ 713 $ 602 $ 512 $ 484 $ 463 $ 239 $ 191 $ 169 $ 926 $ 7,128 100 %
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAIC designation SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate Single FamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Life Ins/StructuredSettlements Other Total %Total
1 $ 1,421 $ 1,314 $ 114 $ 601 $ 511 $ 482 $ 442 $ 201 $ 189 $ 159 $ 874 $ 6,308 89 %
2 38 53 599 — — — — 38 — 2 40 770 11 %
Subtotal 1,459 1,367 713 601 511 482 442 239 189 161 914 7,078 100 %
3 — 1 — — — — 7 — — 5 — 13 0 %
4 — — — — — — — — — — 4 4 0 %
5 — — — — — — — — — 3 1 4 0 %
6 — — — — — — 14 — — — 1 15 0 %
Subtotal — 1 — — — — 21 — — 8 6 36 0 %
No designation (d) — 2 — 1 1 2 — — 2 — 6 14 0 %
Total $ 1,459 $ 1,370 $ 713 $ 602 $ 512 $ 484 $ 463 $ 239 $ 191 $ 169 $ 926 $ 7,128 100 %
(a) If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies<br>rate a security, the rating displayed is the second lowest.
--- ---
(b) 99% of not rated securities are NAIC 1 or 2.
--- ---
(c) Secured Financings are privately placed funding agreements secured by assets including Single Family Rental<br>properties, Bank Loans, Bank Trust Preferreds, Commercial and Residential Mortgages.
--- ---
(d) Primarily relates to securities held by non-insurance companies.
--- ---

Page 38

Appendix H<br> <br>American FinancialGroup, Inc.<br> <br>Real Estate-Related Investments<br><br><br>9/30/2020<br> <br>($ in millions)

Investments accounted for using equity method (Real Estate Funds/Investments) (a)

Investment Type Book Value % of<br>Book Value Occupancy(b) Collection Rate (c)
Multi-family $ 760 80 % 96 % 98 %
Fund Investments 96 10 % — —
Student Housing 28 3 % 77 % 94 %
Land - Development 20 2 % — —
QOZ Fund - Development 16 2 % — —
Office 15 2 % 88 % 100 %
Hospitality 12 1 % — —
Total $ 947 **** 100 %

Real Estate

Property Type Book Value % of<br>Book Value Debt
Marinas $ 62 38 % $ —
Resort & Marina 56 34 % —
Hotel 23 14 % —
Office Building 18 11 % —
Land 5 3 % —
Total $ 164 **** 100 % $ —

Mortgage Loans

Property Type Book Value % of<br>Book Value Loan To<br>Value (d)
Hospitality 616 42 % 55 %
Multifamily 547 37 % 64 %
Office 250 17 % 64 %
Retail 46 3 % 50 %
Other 22 1 % 58 %
Total $ 1,481 **** 100 % **** 60 %

Currently, mortgage loans totaling $124 million are under forbearance agreements.

(a) Total investments accounted for using the equity method is $1.84 billion, the amounts presented in this table<br>only relate to real estate funds/investments.
(b) Occupancy as of 9/30/20
--- ---
(c) Collections for July - September
--- ---
(d) Based on most recent property appraisals, the vast majority of which are prior to March 2020.<br>
--- ---

Page 39

Appendix I<br> <br>American FinancialGroup, Inc.<br> <br>Real Estate-Related Investments<br><br><br>12/31/2019<br> <br>($ in millions)

Investments accounted for using equity method (Real Estate Funds/Investments) (a)

Investment Type Book Value % of<br>Book Value Occupancy (b) Collection Rate (c)
Multi-family $ 589 77 % 96 % 99 %
Fund Investments 100 13 %
Student Housing 30 4 % 94 % 98 %
Land - Development 20 2 %
QOZ Fund - Development 16 2 %
Office 14 2 % 90 % 100 %
Total $ 769 **** 100 %

Real Estate

Property Type Book Value % of<br>Book Value Debt
Marinas $ 63 37 % $ —
Resort & Marina 59 35 % —
Hotel 22 13 % —
Office Building 20 12 % —
Land 5 3 % —
Total $ 169 **** 100 % $ —

Mortgage Loans

Property Type Book Value % of<br>Book Value Loan To<br>Value
Hospitality 575 43 % 56 %
Multifamily 392 30 % 62 %
Office 253 19 % 65 %
Retail 61 4 % 59 %
Other 48 4 % 50 %
Total $ 1,329 **** 100 % **** 59 %
(a) Total investments accounted for using the equity method is $1.69 billion, the amounts presented in this table<br>only relate to real estate funds/investments.
--- ---
(b) Occupancy as of 12/31/19
--- ---
(c) Collections for October - December
--- ---

Page 40

Report a Problem

Category
Description
Email (optional, for follow-up)