Equibles

8-K

AMERICAN FINANCIAL GROUP INC (AFG)

8-K 2021-05-05 For: 2021-05-04
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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): May 4, 2021

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
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(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)
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☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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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
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 first quarter of 2021 and the availability of the Investor Supplement on the Company’s website. The press release was issued on May 4, 2021. 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. Both 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.
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(b) Pro forma financial information. Not applicable.
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(c) Shell company transactions. Not applicable
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(d) Exhibits
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Exhibit<br>No. Description
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99.1 Earnings Release dated May 4, 2021, reporting American Financial Group Inc. results for the quarter ended March 31, 2021.
99.2 Investor Supplement – First Quarter 2021
104 Cover page Interactive Date File (embedded within Inline XBRL document)

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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: May 5, 2021 By: /s/ Karl J. Grafe
Karl J. Grafe
Vice President

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EX-99.1

Exhibit 99.1

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

American Financial Group, Inc. Announces First Quarter Results

• Net earnings per share of $4.84; includes $2.46 earnings per share fromafter-tax non-core items
• Net earnings from continuing operations of $267 million ($3.08 pershare)
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• Core net operating earnings of $2.38 per share, a 75% increase from the prior year period<br>
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• First quarter annualized ROE of 29.9%; core operating ROE of 14.7%
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• Parent company cash of approximately $200 million; excess capital of$1.2 billion at March 31, 2021
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• Full year 2021 core net operating earnings guidance increased to $7.00 - $8.00 per share, from previousguidance of $6.25 to $7.25 per share
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CINCINNATI – May 4, 2021 – American Financial Group, Inc. (NYSE: AFG) today reported 2021 first quarter net earnings attributable to shareholders of $419 million ($4.84 per share) compared to a net loss of $301 million ($3.34 per share loss) for the 2020 first quarter. Net earnings for the 2021 first quarter include after-tax non-core items totaling $213 million ($2.46 per share). As previously announced, the results of AFG’s Annuity operations are reported as discontinued operations beginning with the first quarter of 2021, in accordance with generally accepted accounting principles (GAAP), which included adjusting prior period results to reflect these operations as discontinued. AFG’s first quarter 2021 results included $152 million ($1.76 per share) in earnings from discontinued annuity operations and $61 million ($0.70 per share) in after-tax non-core net realized gains on securities. By comparison, the net loss attributable to shareholders in the 2020 first quarter included $426 million ($4.70 per share loss) in adverse after-tax non-core items. Other details may be found in the table on the following page. AFG’s book value per share was $78.53 as of March 31, 2021. Annualized return on equity was 29.9% and (23.1%) for the first quarters of 2021 and 2020, respectively.

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

Three Months Ended March 31,
Components of Pretax Core Operating Earnings 2021 2020^(a)^ 2021 2020^(a)^ 2021 2020^(a)^
In millions, except per share amounts Before Alternative<br>Impact of Investments Alternative Investments<br>Investments, net of DAC Core Net Operating<br>Earnings, as reported
P&C Pretax Core Operating Earnings $ 211 $ 178 $ 77 $ 3 $ 288 $ 181
Real estate entities and other to be acquired from
Annuity operations (1 ) — 29 6 28 6
Other expenses (34 ) (17 ) — — (34 ) (17 )
Holding company interest expense (24 ) (17 ) — — (24 ) (17 )
Pretax Core Operating Earnings 152 144 106 9 258 153
Related provision for income taxes 30 26 22 2 52 28
Core Net Operating Earnings $ 122 **** $ 118 **** $ 84 $ 7 $ 206 **** $ 125 ****
Core Operating Earnings Per Share $ 1.41 $ 1.28 $ 0.97 $ 0.08 $ 2.38 $ 1.36
Weighted Avg Diluted Shares Outstanding 86.6 91.1 86.6 91.1 86.6 91.1

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

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Book value per share, excluding unrealized gains related to fixed maturities, was $66.89 per share at March 31, 2021, compared to $63.61 at the end of 2020, a 5.2% increase. In the 2021 first quarter, AFG repurchased 1.76 million shares of its common stock at an average price of $108.98 per share, for a total of approximately $192 million.

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 discontinued operations, net realized gains 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.

In millions, except per share amounts Three months ended<br>March 31,
2021 2020^(a)^
Components of net earnings (loss) attributable to shareholders:
Core operating earnings before income taxes $ 258 $ 153
Pretax non-core items:
Realized gains (losses) on securities 77 (328 )
Neon exited lines**^(b)^** — (10 )
Earnings (loss) before income taxes 335 (185 )
Provision (credit) for income taxes:
Core operating earnings 52 28
Non-core items 16 (69 )
Total provision (credit) for income taxes 68 (41 )
Net earnings (loss) from continuing operations including noncontrolling interests 267 (144 )
Discontinued annuity operations 152 (160 )
Less: Net earnings (losses) attributable to noncontrolling interests:
Non-core items — (3 )
Net earnings (loss) attributable to shareholders $ 419 $ (301 )
Net earnings (loss):
Core net operating<br>earnings**^(c)^** $ 206 $ 125
Non-core items:
Realized gains (losses) on securities 61 (259 )
Neon exited lines**^(b)^** — (7 )
Net earnings (loss) from continuing operations 267 (141 )
Discontinued annuity operations 152 (160 )
Net earnings (loss) attributable to shareholders $ 419 $ (301 )
Components of earnings (loss) per<br>share:^(d)^
Core net operating<br>earnings**^(c)^** $ 2.38 $ 1.36
Non-core items:
Realized gains (losses) on securities 0.70 (2.86 )
Neon exited lines**^(b)^** — (0.07 )
Diluted net earnings (loss) per share from continuing operations $ 3.08 (1.57 )
Discontinued annuity operations 1.76 (1.77 )
Diluted net earnings (loss) per share $ 4.84 $ (3.34 )

Footnotes (a), (b), (c) and (d) are contained in the accompanying Notes to Financial Schedules at theend of this release.

S. Craig Lindner and Carl H. Lindner III, AFG’s Co-Chief Executive Officers, issued this statement: “We are extremely proud of AFG’s first quarter 2021 results, especially in the wake of elevated industry catastrophe levels resulting from severe winter storms, a continued low interest rate environment and the impact of the pandemic. We are hopeful that the vaccine rollout will help to facilitate a full re-opening of our economy in the near future, and are acting on growth opportunities across our Specialty P&C portfolio of businesses. We are especially pleased with the performance of our alternative investments, which are marked to market through core earnings. These results, combined with our disciplined operating philosophy, lower catastrophe volatility than our peers, and a portfolio of diversified specialty insurance businesses helped us achieve an annualized core return on equity of nearly 15% in the quarter.

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“AFG had approximately $1.2 billion of excess capital (including parent company cash of approximately $200 million) at March 31, 2021. The sale of our Annuity business to Massachusetts Mutual Life Insurance Company (MassMutual) is expected to close in the second quarter and will significantly enhance AFG’s cash and excess capital. Returning capital to shareholders in the form of regular and special cash dividends and through opportunistic share repurchases is an important and effective component of our capital management strategy. In addition, our excess capital will be deployed into AFG’s core businesses as we identify potential for healthy, profitable organic growth, and opportunities to expand our specialty niche businesses through acquisitions and start-ups that meet our target return thresholds.

“Based on the strong results reported in the first quarter, we now expect AFG’s core net operating earnings in 2021 to be in the range of $7.00 to $8.00, an increase from our previous range of $6.25 to $7.25 per share. This guidance range excludes earnings from our discontinued annuity operations that will be sold to MassMutual, and continues to assume zero earnings on parent company cash, including the expected $3.4 billion in net cash proceeds (net of directly owned real estate assets to be acquired by AFG Parent) from the sale of the annuity operations as we continue to evaluate options for the deployment of excess capital. Our core earnings per share guidance excludes non-core items such as results of discontinued operations, realized gains 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 a normal crop year and an annualized return of approximately 8% on alternative investments that are marked to market through core earnings over the remaining three quarters of 2021.”

Specialty Property and Casualty Insurance Operations

Pretax core operating earnings in AFG’s P&C Insurance Segment were a record $288 million in the first quarter of 2021, compared to $181 million in the prior year period, an increase of 59%. Significantly higher earnings from alternative investments and substantially higher year-over-year P&C underwriting profit were partially offset by lower other P&C net investment income, primarily the result of lower interest rates.

The Specialty P&C insurance operations generated an underwriting profit of $134 million in the 2021 first quarter, compared to $89 million in the first quarter of 2020. While each of our Specialty P&C Groups produced higher year-over-year underwriting profit, the increase was primarily due to higher underwriting profitability in our Property and Transportation Group.

The first quarter 2021 combined ratio was a very strong 88.5%, improving 3.7 points from the prior year period. First quarter 2021 results include $59 million (5.2 points) of favorable prior year reserve development, compared to $48 million (4.2 points) in the comparable prior year period. Catastrophe losses, net of reinsurance and including reinstatement premiums were $31 million in the first quarter of 2021, primarily the result of winter storms in Texas. By comparison, catastrophe losses were $9 million in the prior year period.

AFG recorded an additional $9 million in reserve charges related to COVID-19 in the first quarter of 2021 – primarily related to its workers’ compensation businesses – and released approximately $6 million of accident year 2020 COVID-19 reserves based on loss experience. Given the uncertainties surrounding the ultimate number and scope of claims relating to the pandemic, approximately 69% of the $98 million in COVID-19 related reserves are held as incurred but not reported (IBNR) at March 31, 2021.

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Gross and net written premiums were up 6% and 3%, respectively, in the 2021 first quarter compared to the prior year quarter, with healthy year-over-year growth reported within each of the Specialty P&C groups. Excluding workers’ compensation, gross and net written premiums grew 9% and 7% respectively, year over year. Average renewal pricing across our entire P&C Group was up approximately 12% for the quarter. Excluding our workers’ compensation business, renewal pricing was up approximately 16%. With the exception of workers’ compensation, we are continuing to achieve strong renewal rate increases in the vast majority of our businesses.

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

The Property and Transportation Group reported an underwriting profit of $56 million in the first quarter of 2021 compared to $27 million in the first quarter of 2020. Higher underwriting profit in our transportation, property & inland marine and crop businesses were the drivers of the year-over-year increase. Catastrophe losses in this group, net of reinsurance and inclusive of reinstatement premiums, were $22 million in the first quarter of 2021, primarily the result of winter storms in Texas. Catastrophe losses were $8 million in the comparable 2020 period.

First quarter 2021 gross and net written premiums in this group were 5% and 4% higher, respectively, than the comparable prior year period, with growth reported by nearly all the businesses in this group. The growth came primarily from our agricultural, property & inland marine and aviation businesses, primarily as a result of higher renewal rates. Overall renewal rates in this group increased 7% in the first quarter of 2021.

The Specialty CasualtyGroup reported an underwriting profit of $56 million in the first quarter of 2021 compared to $52 million in the comparable 2020 period. Higher profitability in our excess and surplus lines and excess liability businesses was partially offset by lower underwriting profit in our workers’ compensation businesses, primarily the result of lower year-over-year prior period favorable reserve development. Underwriting profitability in our workers’ compensation businesses overall continues to be excellent. The businesses in the Specialty Casualty Group achieved a very strong 90.2% calendar year combined ratio overall in the first quarter. Catastrophe losses for this group were approximately $2 million in the first quarter of 2021 and less than $1 million in the comparable prior year period.

First quarter 2021 gross written premiums increased 6%, and net written premiums were flat when compared to the same prior year period. Excluding workers’ compensation, gross and net written premiums grew by 13% and 8%, respectively year-over-year. With the exception of workers’ compensation, nearly all the businesses in this group achieved strong renewal pricing and reported premium growth during the first quarter. Significant renewal rate increases and strong renewal retention contributed to higher premiums in our excess liability businesses, which have higher cessions than other businesses in this group. Our executive liability and mergers and acquisitions liability businesses also contributed meaningfully to the year-over-year growth. These increases were partially offset by lower year-over-year premiums in our workers’ compensation businesses, which were primarily the result of lower renewal rates and decreased exposure bases. Renewal pricing for this group was up 15% in the first quarter. Excluding our workers’ compensation businesses, renewal rates in this group were up approximately 25%.

The Specialty FinancialGroup reported an underwriting profit of $25 million in the first quarter of 2021, compared to $17 million in the comparable 2020 period. Higher year-over-year underwriting profitability in our financial institutions business was the primary driver of the increase. This group continued to achieve excellent underwriting margins, and reported an 84.1% combined ratio for the first quarter of 2021. Catastrophe losses for this group, net of reinsurance and inclusive of reinstatement premiums, were $6 million in the first quarter of 2021, compared to $1 million in the prior year quarter.

First quarter 2021 gross and net written premiums in this group were up 5% and 8%, respectively, when compared to the prior year period. New business opportunities, coupled with growth in accounts within our lender services businesses with higher retentions contributed to the increase in the quarter. Renewal pricing in this group was up approximately 8% for the quarter.

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Carl Lindner III stated, “Operating earnings in our P&C Segment set a new record in the 2021 first quarter. Our Specialty P&C Group performed exceptionally well, with excellent underwriting margins, healthy year-over-year growth in net written premiums and very strong renewal pricing, especially in our longer-tailed liability lines of business. Based on results through the first three months, we continue to expect an overall 2021 calendar year combined ratio in the range of 89% to 91% and we now expect net written premiums to be 7% to 10% higher than the $5.0 billion reported in 2020, which is an increase from the range of +5% to +9% estimated previously. We expect the market to remain firm throughout 2021, allowing us to achieve solid renewal rate increases.”

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.

Investments

P&C Net Investment Income – For the three months ended March 31, 2021, P&C net investment income was approximately 61% higher than the comparable 2020 period, and included significantly higher earnings from alternative investments marked to market through core operating earnings. Earnings from alternative investments may vary from quarter to quarter based on the reported results of the underlying investments, and generally are reported on a quarter lag. The annualized yield on alternative investments held in the P&C portfolio in the first quarter of 2021 was 29.8%. The cumulative return on these investments over the past five calendar years was nearly 10%. Excluding the impact of alternative investments, P&C net investment income decreased 15% year-over-year, reflecting lower market interest rates.

Non-Core Net Realized Gains (Losses) – AFG recorded first quarter 2021 net realized gains on securities of $61 million ($0.70 per share) after tax, which included $53 million ($0.61 per share) in after-tax net gains to adjust equity securities that the Company continued to own at March 31, 2021, to fair value. By comparison, AFG recorded net realized losses on securities of $259 million ($2.86 per share loss) in the comparable 2020 period. Prior period results have been adjusted to reflect the reclassification of AFG’s annuity operations to discontinued operations. See the table below under “Discontinued Annuity Operations” for additional information.

Unrealized gains on fixed maturities were $963 million after tax and after deferred acquisition costs (DAC) at March 31, 2021, a decrease of $292 million since year end 2020. This includes $774 million after tax and after DAC related to assets held by our discontinued annuity operations. Our portfolio continues to be high quality, with 87% of our fixed maturity portfolio rated investment grade and 98% with a National Association of Insurance Commissioners’ designation of NAIC 1 or 2, its highest two categories.

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

Sale of AFG’s Annuity Businesses to MassMutual

On January 27, 2021, AFG announced that it entered into a definitive agreement to sell its Annuity business to MassMutual for $3.5 billion in cash, subject to final closing adjustments to the extent that GAAP shareholders’ equity excluding accumulated other comprehensive income (AOCI) of the entities sold varies from $2.8 billion. GAAP shareholders’ equity (excluding AOCI) of the entities to be sold was $3.0 billion at March 31, 2021. Under the terms of the agreement, MassMutual will acquire Great American Life Insurance Company (“GALIC”) and its two insurance subsidiaries, Annuity Investors Life Insurance Company and Manhattan National Life Insurance Company. The sale is expected to close in the second quarter of 2021. At March 31, 2021, GALIC and its subsidiaries had approximately $43 billion of traditional fixed and indexed annuity reserves (included in liabilities of discontinued annuity operations).

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Discontinued Annuity Operations

Beginning with the first quarter of 2021, AFG reports the results of its Annuity operations as discontinued operations, in accordance with generally accepted accounting principles (GAAP), which included adjusting prior period results to reflect these operations as discontinued. A reconciliation of amounts as previously presented to amounts reported as Discontinued Annuity Operations for the three month periods ended March 31, 2021 and March 31, 2020 appears below:

In millions Three months ended<br>March 31,
2021 2020^(a)^
Pretax Annuity earnings historically reported as core operating $ 166 $ 67
Amounts previously reported outside of annuity core earnings:
Impact of fair value accounting for FIAs and reinsurance accounting 22 (38 )
Realized gains (losses) 81 (223 )
Run-off life and long-term care — (3 )
Pretax Earnings of Businesses to be Sold to MassMutual $ 269 **** $ (197 )
Less earnings on assets to be retained by AFG included in continuing operations* (28 ) (6 )
Total Pretax Results from Discontinued Annuity Operations 241 (203 )
Less: related provision for taxes (credit) 89 (43 )
Net Earnings (Loss) from Discontinued Annuity Operations $ 152 **** $ (160 )

*Primarily earnings from the real estate entities to be acquired from the Annuity operations prior to closing of the sale.

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

AFG recorded $41 million in tax liabilities triggered by the pending sale of the Annuity operations in the first quarter of 2021. AFG expects to recognize an after-tax gain on the sale of $680 million to $700 million ($7.85 to $8.10 per AFG share) upon closing. Prior to completion of the transaction, AFG’s P&C Group will acquire approximately $460 million in real estate-related partnerships from GALIC and AFG parent will acquire approximately $100 million in directly owned real estate from GALIC.

About American Financial Group, Inc.

American Financial Group is an insurance holding company, based in Cincinnati, Ohio. 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 fixed-indexed annuities in the retail, financial institutions, broker-dealer, and registered investment advisor markets. On January 27, 2021, AFG announced that it entered into a definitive agreement to sell its annuity business to Massachusetts Mutual Life Insurance Company. The sale is expected to close in the second quarter of 2021. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.

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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: that AFG may be unable to complete the proposed sale of its annuity business because, among other reasons, conditions to the closing of the proposed transaction may not be satisfied or waived, uncertainty as to the timing of completion of the proposed transaction, or failure to realize the anticipated benefits from the proposed transaction; 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, including modifications to capital requirements; 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.

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 2021 first quarter results at 11:30 a.m. (ET) tomorrow, Wednesday, May 5, 2021. 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 7973701. Please dial in five to ten minutes prior to the scheduled start time of the call.

A replay will be available approximately two hours following the completion of the call and will remain available until 11:59 p.m. (ET) on May 12, 2021. To listen to the replay, dial 1-855-859-2056 (international dial-in 404-537-3406) and provide the conference ID 7973701.

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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 May 12, 2021 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.

AFG2021-11

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AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES

SUMMARY OF EARNINGS (LOSS) AND SELECTED BALANCE SHEET DATA

(In Millions, Except Per Share Data)

Three months ended<br>March 31,
2021 2020^(a)^
Revenues
P&C insurance net earned premiums $ 1,173 $ 1,209
Net investment income 188 104
Realized gains (losses) on securities 77 (328 )
Income of managed investment entities:
Investment income 46 59
Gain (loss) on change in fair value of assets/liabilities 2 (13 )
Other income 23 24
Total revenues 1,509 1,055
Costs and expenses
P&C insurance losses & expenses 1,047 1,127
Interest charges on borrowed money 24 17
Expenses of managed investment entities 39 53
Other expenses 64 43
Total costs and expenses 1,174 1,240
Earnings (loss) from continuing operations before income taxes 335 (185 )
Provision (credit) for income taxes 68 (41 )
Net earnings (loss) from continuing operations, including noncontrolling interests 267 (144 )
Net earnings (loss) from discontinued operations, including noncontrolling interests 152 (160 )
Net earnings (loss) including controlling interests 419 (304 )
Less: Net earnings (loss) from continuing operations attributable to noncontrolling<br>interests — (3 )
Net earnings (loss) attributable to shareholders $ 419 $ (301 )
Earnings (loss) attributable to shareholders per diluted common share:
Continuing operations $ 3.08 $ (1.57 )
Discontinued operations 1.76 (1.77 )
Diluted earnings (loss) attributable to shareholders $ 4.84 $ (3.34 )
Average number of diluted shares 86.6 90.3
Selected Balance Sheet Data: March 31,<br>2021 December 31,<br>2020^(a)^
--- --- --- --- ---
Total cash and investments $ 13,900 $ 13,494
Long-term debt $ 1,963 $ 1,963
Shareholders’ equity**^(e)^** $ 6,685 $ 6,789
Shareholders’ equity (excluding unrealized gains/losses related to fixed maturities)^(e)^ $ 5,695 $ 5,493
Book value per share $ 78.53 $ 78.62
Book value per share (excluding unrealized gains/losses related to fixed maturities) $ 66.89 $ 63.61
Common Shares Outstanding 85.1 86.3

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

AMERICAN FINANCIAL GROUP, INC.

SPECIALTY P&C OPERATIONS

(Dollars in Millions)

Three months<br>ended March 31, Change
2021 2020
Gross written premiums $ 1,616 $ 1,526 6 %
Net written premiums $ 1,205 $ 1,165 3 %
Ratios (GAAP):
Loss & LAE ratio 56.8 % 58.5 %
Underwriting expense ratio 31.7 % 33.7 %
Specialty Combined Ratio 88.5 % 92.2 %
Combined Ratio – P&C Segment 88.6 % 92.8 %
SupplementalInformation:^(f)^
Gross Written Premiums:
Property & Transportation $ 520 $ 494 5 %
Specialty Casualty 904 849 6 %
Specialty Financial 192 183 5 %
$ 1,616 $ 1,526 6 %
Net Written Premiums:
Property & Transportation $ 403 $ 386 4 %
Specialty Casualty 588 586 - %
Specialty Financial 161 149 8 %
Other 53 44 20 %
$ 1,205 $ 1,165 3 %
Combined Ratio (GAAP):
Property & Transportation 85.6 % 92.9 %
Specialty Casualty 90.2 % 90.7 %
Specialty Financial 84.1 % 89.1 %
Aggregate Specialty Group 88.5 % 92.2 %
Three months ended<br>March 31,
--- --- --- --- --- --- ---
2021 2020
Reserve Development (Favorable) / Adverse:
Property & Transportation $ (43 ) $ (24 )
Specialty Casualty (9 ) (24 )
Specialty Financial (8 ) (2 )
Other Specialty 1 2
$ (59 ) $ (48 )
Points on Combined Ratio:
Property & Transportation (11.1 ) (6.1 )
Specialty Casualty (1.7 ) (4.2 )
Specialty Financial (5.4 ) (1.1 )
Aggregate Specialty Group (5.2 ) (4.2 )
Total P&C Segment (5.1 ) (3.4 )

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

Page 10

AMERICAN FINANCIAL GROUP, INC.

Notes to Financial Schedules

a) On January 27, 2021 AFG announced that it entered into a definitive agreement to sell its Annuity<br>business to MassMutual. The results of AFG’s Annuity operations are reported as discontinued operations beginning with the first quarter of 2021, in accordance with generally accepted accounting principles (GAAP), which included adjusting prior<br>period results to reflect these operations as discontinued.
b) In January 2020, AFG announced its plans to exit the Lloyd’s of London insurance market and actions it<br>had initiated to place its Lloyd’s subsidiaries including its Lloyd’s Managing Agency, Neon Underwriting Ltd., into run-off. AFG recognized after-tax non-core net expenses of $7 million ($0.07 per share) in the first quarter of 2020 related to the run-off of this business. AFG sold the legal entities that owned its<br>Lloyd’s of London insurer, Neon, to RiverStone Holdings Limited in a transaction that closed in the fourth quarter of 2020.
--- ---
c) Components of core net operating earnings (in millions):
--- ---
Three months ended<br>March 31,
--- --- --- --- --- --- ---
2021 2020^(a)^
Core Operating Earnings before Income Taxes:
P&C insurance segment $ 288 $ 181
Real-estate entities and other to be acquired from
Annuity operations 28 6
Interest & other corporate expenses (58 ) (34 )
Core operating earnings before income taxes 258 153
Related income taxes 52 28
Core net operating earnings $ 206 $ 125
d) Because AFG had a net loss for the first quarter of 2020, the impact of potential dilutive options (weighted<br>average of 0.84 million shares) was excluded from AFG’s fully diluted earnings per share calculation. However, for the non-GAAP measure of core net operating earnings, the Company believes it is most<br>appropriate to use the fully diluted share data that would have been used if AFG had net earnings for the first quarter.
--- ---
e) Shareholders’ Equity at March 31, 2021 includes $963 million ($11.32 per share) in unrealized<br>after-tax, after-DAC gains on fixed maturities and $27 million ($0.32 per share) in unrealized after-tax, after DAC gains on<br>fixed maturity-related cash flow hedges. Shareholders’ Equity at December 31, 2020 includes $1.3 billion ($14.54 per share) in unrealized after-tax,<br>after-DAC gains on fixed maturities and $41 million ($0.47 per share) in unrealized after-tax, after-DAC gains on fixed<br>maturity-related cash flow hedges.
--- ---
f) 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 Finan cial includes risk management insurance programs for lending and leasing<br>institutions (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 11

EX-99.2

Exhibit 99.2

American Financial Group, Inc.
Investor Supplement - First Quarter 2021
May 4, 2021
American Financial Group, Inc.
Corporate Headquarters
Great American Insurance Group Tower
301 E Fourth Street
Cincinnati, OH 45202
513 579 6739
American Financial Group, Inc.<br><br><br>Table of Contents - Investor Supplement - First Quarter 2021
---
Section Page
--- ---
Table of Contents - Investor Supplement - First Quarter 2021 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
Discontinued Annuity Operations 12
Consolidated Balance Sheet / Book Value / Debt
Consolidated Balance Sheet 13
Book Value Per Share and Price / Book Summary 14
Capitalization 15
Additional Supplemental Information 16
Consolidated Investment Supplement
Total Cash and Investments 17
Net Investment Income From Continuing Operations 18
Alternative Investments - Continuing Operations 19
Fixed Maturities - By Security Type - AFG Consolidated 20
Appendix
--- --- ---
A. Fixed Maturities by Credit Rating & NAIC Designation by Type 3/31/2021 21
B. Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2020 22
C. Corporate Securities by Credit Rating & NAIC Designation by Industry 3/31/2021 23
D. Corporate Securities by Credit Rating & NAIC Designation by Industry 12/31/2020 24
E. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br>3/31/2021 25
F. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br>12/31/2020 26
G. Real Estate-Related Investments 3/31/2021 27
H. Real Estate-Related Investments 12/31/2020 28

Page 2

American Financial Group, Inc.<br><br><br>Financial Highlights<br> <br>(in millions, except per share<br>information)
Three Months Ended Twelve Months End
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19
Highlights
Net earnings (loss) $ 419 $ 692 $ 164 $ 177 $ (301 ) $ 732 $ 897
Net earnings (loss) from continuing operations 267 265 88 113 (141 ) 325 519
Core net operating earnings 206 175 121 60 125 481 482
Total assets 74,197 73,710 73,234 70,985 67,786 73,710 70,246
Adjusted shareholders’ equity (a) 5,695 5,493 5,087 5,049 4,987 5,493 5,390
Property and Casualty net written premiums 1,205 1,216 1,488 1,123 1,165 4,992 5,342
Per share data
Diluted earnings (loss) per share $ 4.84 $ 7.93 $ 1.86 $ 1.97 $ (3.34 ) $ 8.20 $ 9.85
Diluted earnings (loss) per share from continuing operations 3.08 3.03 1.00 1.26 (1.57 ) 3.63 5.70
Core net operating earnings per share 2.38 2.01 1.38 0.67 1.36 5.40 5.29
Adjusted book value per share (a) 66.89 63.61 58.29 56.95 55.52 63.61 59.70
Cash dividends per common share 0.5000 2.5000 0.4500 0.4500 0.4500 3.8500 4.9500
Financial ratios
Annualized return on equity (b) 29.9 % 52.1 % 12.9 % 14.1 % (23.1 %) 14.0 % 17.1 %
Annualized core operating return on equity (b) 14.7 % 13.2 % 9.6 % 4.8 % 9.6 % 9.2 % 9.2 %
Property and Casualty combined ratio - Specialty:
Loss & LAE ratio 56.8 % 58.6 % 63.8 % 62.6 % 58.5 % 60.9 % 61.5 %
Underwriting expense ratio 31.7 % 27.6 % 28.3 % 32.6 % 33.7 % 30.4 % 32.2 %
Combined ratio - Specialty 88.5 % 86.2 % 92.1 % 95.2 % 92.2 % 91.3 % 93.7 %
(a) Excludes unrealized gains related to fixed maturity investments, a reconciliation to the GAAP measure is on<br>page 14.
--- ---
(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 Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19
Property and Casualty Insurance
Underwriting profit $ 134 $ 163 $ 103 $ 52 $ 88 $ 406 $ 306
Net investment income 159 122 111 72 99 404 472
Other expense (5 ) (11 ) (9 ) (8 ) (6 ) (34 ) (25 )
Property and Casualty Insurance operating earnings 288 274 205 116 181 776 753
Real estate entities and other to be acquired from Annuity 28 9 3 1 6 19 21
Interest expense of parent holding companies (24 ) (24 ) (24 ) (23 ) (17 ) (88 ) (68 )
Other expense (34 ) (32 ) (29 ) (20 ) (17 ) (98 ) (107 )
Pretax core operating earnings 258 227 155 74 153 609 599
Income tax expense 52 52 34 14 28 128 117
Core net operating earnings **** 206 **** **** 175 **** **** 121 **** **** 60 **** **** 125 **** **** 481 **** **** 482 ****
Non-core items, net of tax:
Realized gains (losses) on securities 61 97 18 85 (259 ) (59 ) 122
Special A&E charges:
Property and Casualty Insurance run-off<br>operations — — (37 ) — — (37 ) (14 )
Former Railroad and Manufacturing operations — — (17 ) — — (17 ) (9 )
Neon exited lines — (3 ) 3 (32 ) (7 ) (39 ) (58 )
Other non-core items — (4 ) — — — (4 ) (4 )
Net earnings (loss) from continuing operations $ 267 **** $ 265 **** $ 88 **** $ 113 **** $ (141 ) $ 325 **** $ 519 ****
Discontinued Annuity operations 152 427 76 64 (160 ) 407 378
Net earnings (loss) $ 419 **** $ 692 **** $ 164 **** $ 177 **** $ (301 ) $ 732 **** $ 897 ****

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 Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19
Core net operating earnings $ 206 $ 175 **** $ 121 **** $ 60 **** $ 125 **** $ 481 **** $ 482 ****
Net earnings (loss) from continuing operations $ 267 $ 265 **** $ 88 **** $ 113 **** $ (141 ) $ 325 **** $ 519 ****
Net earnings (loss) $ 419 $ 692 **** $ 164 **** $ 177 **** $ (301 ) $ 732 **** $ 897 ****
Average number of diluted shares - core 86.577 87.156 88.546 89.997 91.138 89.202 91.024
Average number of diluted shares - net **** 86.577 **** 87.156 **** **** 88.546 **** **** 89.997 **** **** 90.295 **** **** 89.202 **** **** 91.024 ****
Diluted earnings per share:
Core net operating earnings per share $ 2.38 $ 2.01 **** $ 1.38 **** $ 0.67 **** $ 1.36 **** $ 5.40 **** $ 5.29 ****
Realized gains (losses) on securities 0.70 1.10 0.20 0.95 (2.86 ) (0.67 ) 1.34
Special A&E charges:
Property and Casualty Insurance run-off<br>operations — — (0.42 ) — — (0.42 ) (0.15 )
Former Railroad and Manufacturing operations — — (0.19 ) — — (0.19 ) (0.10 )
Neon exited lines — (0.04 ) 0.03 (0.36 ) (0.07 ) (0.45 ) (0.64 )
Other non-core items — (0.04 ) — — — (0.04 ) (0.04 )
Diluted earnings (loss) per share, continuing operations $ 3.08 $ 3.03 **** $ 1.00 **** $ 1.26 **** $ (1.57 ) $ 3.63 **** $ 5.70 ****
Discontinued Annuity operations 1.76 4.90 0.86 0.71 (1.77 ) 4.57 4.15
Diluted earnings (loss) per share $ 4.84 $ 7.93 **** $ 1.86 **** $ 1.97 **** $ (3.34 ) $ 8.20 **** $ 9.85 ****

Page 5

American Financial Group, Inc.<br> <br>Property and Casualty Insurance - Summary Underwriting Results (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19
Property and Transportation $ 56 $ 74 $ 47 $ 33 $ 27 $ 181 $ 79
Specialty Casualty 56 91 53 27 52 223 175
Specialty Financial 25 20 13 — 17 50 92
Other Specialty (3 ) (6 ) (9 ) (6 ) (7 ) (28 ) (21 )
Underwriting profit - Specialty **** 134 **** **** 179 **** **** 104 **** **** 54 **** **** 89 **** **** 426 **** **** 325 ****
Other core charges, included in loss and LAE — (16 ) (1 ) (2 ) (1 ) (20 ) (19 )
Underwriting profit - Core **** 134 **** **** 163 **** **** 103 **** **** 52 **** **** 88 **** **** 406 **** **** 306 ****
Special A&E charges, included in loss and LAE — — (47 ) — — (47 ) (18 )
Neon exited lines (a) — (53 ) (38 ) (43 ) (1 ) (135 ) (76 )
Underwriting profit (loss) - Property and Casualty Insurance $ 134 **** $ 110 **** $ 18 **** $ 9 **** $ 87 **** $ 224 **** $ 212 ****
Included in results above:
COVID-19 related losses $ 9 $ — $ — $ 105 $ 10 $ 115 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ 11 $ (3 ) $ 5 $ — $ — $ 2 $ 1
Catastrophe loss 20 41 52 26 9 128 60
Total current accident year catastrophe losses $ 31 $ 38 $ 57 $ 26 $ 9 $ 130 $ 61
Prior year loss reserve development (favorable) / adverse $ (59 ) $ (8 ) $ — $ (77 ) $ (42 ) $ (127 ) $ (143 )
Combined ratio:
Property and Transportation 85.6 % 85.8 % 91.9 % 91.7 % 92.9 % 90.4 % 95.7 %
Specialty Casualty 90.2 % 84.0 % 90.7 % 94.9 % 90.7 % 90.0 % 93.3 %
Specialty Financial 84.1 % 86.8 % 91.6 % 100.4 % 89.1 % 91.8 % 85.0 %
Other Specialty 104.6 % 116.9 % 115.6 % 114.2 % 117.7 % 116.1 % 113.3 %
Combined ratio — Specialty **** 88.5 % **** 86.2 % **** 92.1 % **** 95.2 % **** 92.2 % **** 91.3 % **** 93.7 %
Other core charges 0.1 % 1.2 % 0.1 % 0.2 % 0.1 % 0.5 % 0.4 %
Neon exited lines charge 0.0 % 4.2 % 3.1 % 3.8 % 0.5 % 2.7 % 1.4 %
Special A&E charges 0.0 % 0.0 % 3.5 % 0.0 % 0.0 % 1.0 % 0.3 %
Combined ratio **** 88.6 % **** 91.6 % **** 98.8 % **** 99.2 % **** 92.8 % **** 95.5 % **** 95.8 %
P&C combined ratio excl. COVID-19 related losses,<br>catastrophe losses, and prior year loss reserve development 91.2 % 89.1 % 95.0 % 94.8 % 94.6 % 93.3 % 97.4 %
Loss and LAE components — property and casualty insurance
Current accident year, excluding COVID-19 related and<br>catastrophe losses 59.5 % 60.1 % 66.0 % 60.7 % 60.3 % 61.9 % 64.6 %
COVID-19 related losses 0.8 % 0.0 % 0.0 % 8.8 % 0.8 % 2.2 % 0.0 %
Current accident year catastrophe losses 1.7 % 3.1 % 3.8 % 2.1 % 0.8 % 2.5 % 1.2 %
Prior accident year loss reserve development (5.1 %) (0.6 %) 0.0 % (6.5 %) (3.4 %) (2.5 %) (2.8 %)
Loss and LAE ratio **** 56.9 % **** 62.6 % **** 69.8 % **** 65.1 % **** 58.5 % **** 64.1 % **** 63.0 %
(a) In the fourth quarter of 2020, AFG recorded $55 million in<br>non-core losses from Neon’s operations and a $1 million reduction in the estimated tax benefit related to the sale of Neon, partially offset by a $53 million favorable adjustment to the<br>estimated loss on sale recorded in Q3.
--- ---

Page 6

American Financial Group, Inc.<br><br><br>Specialty - Underwriting Results (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19
Gross written premiums $ 1,616 $ 1,707 $ 2,223 $ 1,539 $ 1,526 $ 6,995 $ 7,299
Ceded reinsurance premiums (411 ) (491 ) (735 ) (416 ) (361 ) (2,003 ) (1,957 )
Net written premiums 1,205 1,216 1,488 1,123 1,165 4,992 5,342
Change in unearned premiums (32 ) 83 (149 ) — (27 ) (93 ) (157 )
Net earned premiums 1,173 1,299 1,339 1,123 1,138 4,899 5,185
Loss and LAE 667 762 855 703 666 2,986 3,188
Underwriting expense 372 358 380 366 383 1,487 1,672
Underwriting profit $ 134 **** $ 179 **** $ 104 **** $ 54 **** $ 89 **** $ 426 **** $ 325 ****
Included in results above:
COVID-19 related losses $ 9 $ — $ — $ 85 $ 10 $ 95 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ 11 $ (3 ) $ 5 $ — $ — $ 2 $ 1
Catastrophe loss 20 20 36 26 9 91 60
Total current accident year catastrophe losses $ 31 $ 17 $ 41 $ 26 $ 9 $ 93 $ 61
Prior year loss reserve development (favorable) / adverse $ (59 ) $ (32 ) $ (48 ) $ (85 ) $ (48 ) $ (213 ) $ (187 )
Combined ratio:
Loss and LAE ratio 56.8 % 58.6 % 63.8 % 62.6 % 58.5 % 60.9 % 61.5 %
Underwriting expense ratio 31.7 % 27.6 % 28.3 % 32.6 % 33.7 % 30.4 % 32.2 %
Combined ratio **** 88.5 % **** 86.2 % **** 92.1 % **** 95.2 % **** 92.2 % **** 91.3 % **** 93.7 %
Specialty combined ratio excl. COVID-19 related losses,<br>catastrophe losses, and prior year loss reserve development 91.2 % 87.1 % 93.1 % 92.9 % 94.7 % 91.9 % 96.2 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and<br>catastrophe losses 59.5 % 59.5 % 64.8 % 60.3 % 61.0 % 61.5 % 64.0 %
COVID-19 related losses 0.8 % 0.0 % 0.0 % 7.6 % 0.9 % 1.9 % 0.0 %
Current accident year catastrophe losses 1.7 % 1.5 % 2.7 % 2.3 % 0.8 % 1.9 % 1.2 %
Prior accident year loss reserve development (5.2 %) (2.4 %) (3.7 %) (7.6 %) (4.2 %) (4.4 %) (3.7 %)
Loss and LAE ratio **** 56.8 % **** 58.6 % **** 63.8 % **** 62.6 % **** 58.5 % **** 60.9 % **** 61.5 %

Page 7

American Financial Group, Inc.<br><br><br>Property and Transportation - Underwriting Results (GAAP)<br><br><br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19
Gross written premiums $ 520 $ 647 $ 1,061 $ 611 $ 494 $ 2,813 $ 2,759
Ceded reinsurance premiums (117 ) (207 ) (426 ) (185 ) (108 ) (926 ) (883 )
Net written premiums 403 440 635 426 386 1,887 1,876
Change in unearned premiums (9 ) 81 (61 ) (36 ) — (16 ) (48 )
Net earned premiums 394 521 574 390 386 1,871 1,828
Loss and LAE 221 329 403 239 237 1,208 1,297
Underwriting expense 117 118 124 118 122 482 452
Underwriting profit $ 56 **** $ 74 **** $ 47 **** $ 33 **** $ 27 **** $ 181 **** $ 79 ****
Included in results above:
COVID-19 related losses $ — $ — $ 1 $ 3 $ 3 $ 7 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ 8 $ — $ — $ — $ — $ — $ —
Catastrophe loss 14 6 18 15 8 47 32
Total current accident year catastrophe losses $ 22 $ 6 $ 18 $ 15 $ 8 $ 47 $ 32
Prior year loss reserve development (favorable) / adverse $ (43 ) $ (29 ) $ (26 ) $ (28 ) $ (24 ) $ (107 ) $ (67 )
Combined ratio:
Loss and LAE ratio 56.0 % 63.3 % 70.1 % 61.3 % 61.4 % 64.6 % 71.0 %
Underwriting expense ratio 29.6 % 22.5 % 21.8 % 30.4 % 31.5 % 25.8 % 24.7 %
Combined ratio **** 85.6 % **** 85.8 % **** 91.9 % **** 91.7 % **** 92.9 % **** 90.4 % **** 95.7 %
Combined ratio excl. COVID-19 related losses, catastrophe<br>losses, and prior year loss reserve development 93.0 % 90.0 % 93.2 % 94.3 % 96.2 % 93.2 % 97.5 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and<br>catastrophe losses 63.4 % 67.5 % 71.4 % 63.9 % 64.7 % 67.4 % 72.8 %
COVID-19 related losses 0.1 % 0.2 % 0.1 % 0.8 % 0.6 % 0.4 % 0.0 %
Current accident year catastrophe losses 3.6 % 1.2 % 3.1 % 3.8 % 2.2 % 2.5 % 1.8 %
Prior accident year loss reserve development (11.1 %) (5.6 %) (4.5 %) (7.2 %) (6.1 %) (5.7 %) (3.6 %)
Loss and LAE ratio **** 56.0 % **** 63.3 % **** 70.1 % **** 61.3 % **** 61.4 % **** 64.6 % **** 71.0 %

Page 8

American Financial Group, Inc.<br><br><br>Specialty Casualty - Underwriting Results (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19
Gross written premiums $ 904 $ 865 $ 978 $ 752 $ 849 $ 3,444 $ 3,768
Ceded reinsurance premiums (316 ) (300 ) (336 ) (241 ) (263 ) (1,140 ) (1,067 )
Net written premiums 588 565 642 511 586 2,304 2,701
Change in unearned premiums (17 ) 7 (82 ) 36 (30 ) (69 ) (104 )
Net earned premiums 571 572 560 547 556 2,235 2,597
Loss and LAE 361 337 352 367 340 1,396 1,586
Underwriting expense 154 144 155 153 164 616 836
Underwriting profit $ 56 **** $ 91 **** $ 53 **** $ 27 **** $ 52 **** $ 223 **** $ 175 ****
Included in results above:
COVID-19 related losses 7 2 (1 ) $ 52 $ 7 $ 60 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ 1 $ (3 ) $ 5 $ — $ — $ 2 $ 1
Catastrophe loss 1 5 3 6 — 14 17
Total current accident year catastrophe losses $ 2 $ 2 $ 8 $ 6 $ — $ 16 $ 18
Prior year loss reserve development (favorable) / adverse $ (9 ) $ (6 ) $ (16 ) $ (51 ) $ (24 ) $ (97 ) $ (88 )
Combined ratio:
Loss and LAE ratio 63.1 % 59.0 % 62.9 % 67.1 % 61.1 % 62.5 % 61.1 %
Underwriting expense ratio 27.1 % 25.0 % 27.8 % 27.8 % 29.6 % 27.5 % 32.2 %
Combined ratio **** 90.2 % **** 84.0 % **** 90.7 % **** 94.9 % **** 90.7 % **** 90.0 % **** 93.3 %
Combined ratio excl. COVID-19 related losses, catastrophe<br>losses, and prior year loss reserve development 90.4 % 84.0 % 92.9 % 93.8 % 93.6 % 91.0 % 96.0 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and<br>catastrophe losses 63.3 % 59.0 % 65.1 % 66.0 % 64.0 % 63.5 % 63.8 %
COVID-19 related losses 1.2 % 0.3 % (0.1 %) 9.5 % 1.3 % 2.7 % 0.0 %
Current accident year catastrophe losses 0.3 % 0.8 % 0.8 % 0.9 % 0.0 % 0.6 % 0.7 %
Prior accident year loss reserve development (1.7 %) (1.1 %) (2.9 %) (9.3 %) (4.2 %) (4.3 %) (3.4 %)
Loss and LAE ratio **** 63.1 % **** 59.0 % **** 62.9 % **** 67.1 % **** 61.1 % **** 62.5 % **** 61.1 %

Page 9

American Financial Group, Inc.<br><br><br>Specialty Financial - Underwriting Results (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19
Gross written premiums $ 192 $ 195 $ 184 $ 176 $ 183 $ 738 $ 772
Ceded reinsurance premiums (31 ) (32 ) (31 ) (37 ) (34 ) (134 ) (155 )
Net written premiums 161 163 153 139 149 604 617
Change in unearned premiums (4 ) (5 ) 2 5 7 9 (7 )
Net earned premiums 157 158 155 144 156 613 610
Loss and LAE 53 56 62 65 59 242 192
Underwriting expense 79 82 80 79 80 321 326
Underwriting profit $ 25 **** $ 20 **** $ 13 **** $ — **** $ 17 **** $ 50 **** $ 92 ****
Included in results above:
COVID-19 related losses $ 2 $ (3 ) $ (1 ) $ 30 $ — $ 26 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ 2 $ — $ — $ — $ — $ — $ —
Catastrophe loss 4 7 13 5 1 26 10
Total current accident year catastrophe losses $ 6 $ 7 $ 13 $ 5 $ 1 $ 26 $ 10
Prior year loss reserve development (favorable) / adverse $ (8 ) $ (6 ) $ (9 ) $ (11 ) $ (2 ) $ (28 ) $ (38 )
Combined ratio:
Loss and LAE ratio 33.8 % 35.6 % 39.9 % 44.9 % 38.0 % 39.5 % 31.5 %
Underwriting expense ratio 50.3 % 51.2 % 51.7 % 55.5 % 51.1 % 52.3 % 53.5 %
Combined ratio **** 84.1 % **** 86.8 % **** 91.6 % **** 100.4 % **** 89.1 % **** 91.8 % **** 85.0 %
Combined ratio excl. COVID-19 related losses, catastrophe<br>losses, and prior year loss reserve development 85.9 % 87.7 % 89.5 % 83.7 % 89.5 % 87.7 % 89.7 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and<br>catastrophe losses 35.6 % 36.5 % 37.8 % 28.2 % 38.4 % 35.4 % 36.2 %
COVID-19 related losses 1.5 % (1.8 %) (0.8 %) 21.1 % 0.1 % 4.3 % 0.0 %
Current accident year catastrophe losses 2.1 % 4.5 % 8.6 % 3.6 % 0.6 % 4.3 % 1.6 %
Prior accident year loss reserve development (5.4 %) (3.6 %) (5.7 %) (8.0 %) (1.1 %) (4.5 %) (6.3 %)
Loss and LAE ratio **** 33.8 % **** 35.6 % **** 39.9 % **** 44.9 % **** 38.0 % **** 39.5 % **** 31.5 %

Page 10

American Financial Group, Inc.<br> <br>OtherSpecialty - Underwriting Results (GAAP)<br> <br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19
Gross written premiums $ — $ — $ — $ — $ — $ — $ —
Ceded reinsurance premiums 53 48 58 47 44 197 148
Net written premiums 53 48 58 47 44 197 148
Change in unearned premiums (2 ) — (8 ) (5 ) (4 ) (17 ) 2
Net earned premiums 51 48 50 42 40 180 150
Loss and LAE 32 40 38 32 30 140 113
Underwriting expense 22 14 21 16 17 68 58
Underwriting profit (loss) $ (3 ) $ (6 ) $ (9 ) $ (6 ) $ (7 ) $ (28 ) $ (21 )
Included in results above:
COVID-19 related losses $ — $ 1 $ 1 $ — $ — $ 2 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ — $ — $ — $ — $ —
Catastrophe loss 1 2 2 — — 4 1
Total current accident year catastrophe losses $ 1 $ 2 $ 2 $ — $ — $ 4 $ 1
Prior year loss reserve development (favorable) / adverse $ 1 $ 9 $ 3 $ 5 $ 2 $ 19 $ 6
Combined ratio:
Loss and LAE ratio 62.3 % 80.2 % 78.6 % 76.9 % 73.9 % 77.6 % 75.4 %
Underwriting expense ratio 42.3 % 36.7 % 37.0 % 37.3 % 43.8 % 38.5 % 37.9 %
Combined ratio **** 104.6 % **** 116.9 % **** 115.6 % **** 114.2 % **** 117.7 % **** 116.1 % **** 113.3 %
Combined ratio excl. COVID-19 related losses, catastrophe<br>losses, and prior year loss reserve development 100.2 % 92.5 % 107.8 % 100.3 % 113.4 % 103.1 % 108.9 %

Page 11

American Financial Group, Inc.<br><br><br>Discontinued Annuity Operations<br> <br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19
Pretax Annuity earnings historically reported as core operating:
Net investment income (a) $ 366 $ 368 $ 418 $ 421 $ 428 $ 1,635 $ 1,682
Alternative investments MTM to be retained by Annuity 76 42 37 (46 ) (18 ) 15 77
Alternative investments MTM to be retained by AFG 29 19 9 9 12 49 33
Guaranteed withdrawal benefit fees 17 17 18 17 17 69 67
Policy charges and other miscellaneous income 14 19 17 13 18 67 52
Total revenues 502 465 499 414 457 1,835 1,911
Annuity benefits (a) 238 242 282 274 287 1,085 1,107
Acquisition expenses 66 68 64 62 71 265 256
Other expenses (a) 32 26 32 36 32 126 139
Total costs and expenses 336 336 378 372 390 1,476 1,502
Pretax Annuity earnings historically reported as core operating earnings $ 166 **** $ 129 **** $ 121 **** $ 42 **** $ 67 **** $ 359 **** $ 409 ****
Impact of fair vaule, reinsurance accounting & unlocking $ 22 $ (48 ) $ (43 ) $ (59 ) $ (38 ) $ (188 ) $ (47 )
Realized gains (losses) 81 470 22 96 (223 ) 365 132
Run-off life and long-term care — (2 ) (3 ) — (3 ) (8 ) 1
Pretax earnings of businesses to be sold to Mass Mutual $ 269 $ 549 $ 97 $ 79 $ (197 ) $ 528 $ 495
Less amounts included in continuing operations (28 ) (9 ) (3 ) (1 ) (6 ) (19 ) (21 )
Pretax results from discontinued operations $ 241 $ 540 $ 94 $ 78 $ (203 ) $ 509 $ 474
Taxes (89 ) (113 ) (18 ) (14 ) 43 (102 ) (96 )
Net earnings from discontinued operations $ 152 **** $ 427 **** $ 76 **** $ 64 **** $ (160 ) $ 407 **** $ 378 ****
(a) The decreases in Net Investment Income, Annuity Benefits, and Other Expenses beginning in Q4 2020 reflect the<br>impact of the Annuity Segment’s October 2020 block reinsurance transaction.
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Page 12

American Financial Group, Inc.<br><br><br>Consolidated Balance Sheet<br> <br>($ in millions)
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Assets:
Total cash and investments $ 13,900 $ 13,494 $ 13,685 $ 13,216 $ 12,346 $ 12,886
Recoverables from reinsurers 3,231 3,288 3,324 3,132 3,116 3,134
Prepaid reinsurance premiums 755 768 862 733 708 678
Agents’ balances and premiums receivable 1,209 1,229 1,382 1,363 1,299 1,333
Deferred policy acquisition costs 244 244 269 296 310 322
Assets of managed investment entities 5,102 4,971 4,717 4,393 4,026 4,736
Other receivables 576 678 854 539 525 630
Assets of discontinued annuity operations 48,139 47,885 46,947 46,183 44,250 45,433
Other assets 865 977 1,018 954 1,030 918
Goodwill 176 176 176 176 176 176
Total assets $ 74,197 **** $ 73,710 **** $ 73,234 **** $ 70,985 **** $ 67,786 **** $ 70,246 ****
Liabilities and Equity:
Unpaid losses and loss adjustment expenses $ 10,384 $ 10,392 $ 10,754 $ 10,321 $ 10,106 $ 10,232
Unearned premiums 2,821 2,803 3,015 2,778 2,808 2,830
Payable to reinsurers 753 807 977 746 779 814
Liabilities of managed investment entities 5,045 4,914 4,666 4,355 4,009 4,687
Long-term debt 1,963 1,963 2,108 1,912 1,473 1,473
Other liabilities 1,653 1,584 1,650 1,597 1,498 1,537
Liabilities of discontinued annuity operations 44,893 44,458 43,724 43,150 42,066 42,404
Total liabilities $ 67,512 **** $ 66,921 **** $ 66,894 **** $ 64,859 **** $ 62,739 **** $ 63,977 ****
Shareholders’ equity:
Common stock $ 85 $ 86 $ 87 $ 89 $ 90 $ 90
Capital surplus 1,279 1,281 1,283 1,299 1,309 1,307
Retained earnings 4,354 4,149 3,737 3,685 3,616 4,009
Unrealized gains - fixed maturities 963 1,255 1,212 1,030 16 862
Unrealized gains (losses) - fixed maturity-related cash flow hedges 27 41 41 47 44 17
Other comprehensive income, net of tax (23 ) (23 ) (20 ) (24 ) (28 ) (16 )
Total shareholders’ equity **** 6,685 **** **** 6,789 **** **** 6,340 **** **** 6,126 **** **** 5,047 **** **** 6,269 ****
Total liabilities and equity $ 74,197 **** $ 73,710 **** $ 73,234 **** $ 70,985 **** $ 67,786 **** $ 70,246 ****

Page 13

American Financial Group, Inc.<br> <br>BookValue Per Share and Price / Book Summary<br> <br>(in millions, except per share information)
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Shareholders’ equity $ 6,685 **** $ 6,789 **** $ 6,340 **** $ 6,126 **** $ 5,047 **** $ 6,269 ****
Unrealized (gains) related to fixed maturities (990 ) (1,296 ) (1,253 ) (1,077 ) (60 ) (879 )
Adjusted shareholders’ equity **** 5,695 **** **** 5,493 **** **** 5,087 **** **** 5,049 **** **** 4,987 **** **** 5,390 ****
Goodwill from continuing and discontinued operations (207 ) (207 ) (207 ) (207 ) (207 ) (207 )
Intangibles (31 ) (34 ) (34 ) (37 ) (40 ) (43 )
Tangible adjusted shareholders’ equity $ 5,457 **** $ 5,252 **** $ 4,846 **** $ 4,805 **** $ 4,740 **** $ 5,140 ****
Common shares outstanding 85.126 86.345 87.267 88.659 89.827 90.304
Book value per share:
Book value per share $ 78.53 **** $ 78.62 **** $ 72.65 **** $ 69.10 **** $ 56.18 **** $ 69.43 ****
Adjusted (a) **** 66.89 **** **** 63.61 **** **** 58.29 **** **** 56.95 **** **** 55.52 **** **** 59.70 ****
Tangible, adjusted (b) **** 64.10 **** **** 60.82 **** **** 55.53 **** **** 54.20 **** **** 52.77 **** **** 56.93 ****
Market capitalization
AFG’s closing common share price $ 114.10 $ 87.62 $ 66.98 $ 63.46 $ 70.08 $ 109.65
Market capitalization $ 9,713 $ 7,566 $ 5,845 $ 5,626 $ 6,295 $ 9,902
Price / Adjusted book value ratio 1.71 1.38 1.15 1.11 1.26 1.84
(a) Excludes unrealized gains related to fixed maturity investments.
--- ---
(b) Excludes unrealized gains related to fixed maturity investments, goodwill and intangibles.<br>
--- ---

Page 14

American Financial Group, Inc.<br><br><br>Capitalization<br> <br>($ in millions)
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
AFG senior obligations $ 1,318 $ 1,318 $ 1,318 $ 1,318 $ 1,018 $ 1,018
Borrowings drawn under credit facility — — — — — —
Debt excluding subordinated debt $ 1,318 **** $ 1,318 **** $ 1,318 **** $ 1,318 **** $ 1,018 **** $ 1,018 ****
AFG subordinated debentures 675 675 825 625 475 475
Total principal amount of long-term debt $ 1,993 **** $ 1,993 **** $ 2,143 **** $ 1,943 **** $ 1,493 **** $ 1,493 ****
Shareholders’ equity 6,685 6,789 6,340 6,126 5,047 6,269
Noncontrolling interests (including redeemable NCI) — — — — — —
Less:
Unrealized (gains) related to fixed maturity investments (990 ) (1,296 ) (1,253 ) (1,077 ) (60 ) (879 )
Total adjusted capital $ 7,688 **** $ 7,486 **** $ 7,230 **** $ 6,992 **** $ 6,480 **** $ 6,883 ****
Ratio of debt to total adjusted capital:
Including subordinated debt **** 25.9 % **** 26.6 % **** 29.6 % **** 27.8 % **** 23.0 % **** 21.7 %
Excluding subordinated debt **** 17.1 % **** 17.6 % **** 18.2 % **** 18.9 % **** 15.7 % **** 14.8 %

Page 15

American Financial Group, Inc.<br><br><br>Additional Supplemental Information<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19
Property and Casualty Insurance
Paid Losses (GAAP) $ 674 $ 758 $ 646 $ 601 $ 751 $ 2,756 $ 2,866
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
GAAP Equity (excluding AOCI)
Property and Casualty Insurance $ 4,571 $ 4,458 $ 4,154 $ 3,945 $ 3,800 $ 4,043
Annuity 3,012 2,893 2,659 2,579 2,512 2,715
Parent and other subsidiaries (1,865 ) (1,835 ) (1,706 ) (1,451 ) (1,297 ) (1,352 )
AFG GAAP Equity (excluding AOCI) $ 5,718 $ 5,516 $ 5,107 $ 5,073 $ 5,015 $ 5,406
Allowable dividends without regulatory approval
Property and Casualty Insurance $ 416 $ 416 $ 565 $ 565 $ 565 $ 565
Annuity and Run-off 289 289 287 287 287 287
Total $ 705 **** $ 705 **** $ 852 **** $ 852 **** $ 852 **** $ 852 ****

Page 16

American Financial Group, Inc.<br> <br>TotalCash and Investments<br> <br>($ in millions)
Carrying Value - March 31, 2021
--- --- --- --- --- --- --- --- --- --- --- --- ---
Property andCasualtyInsurance Parent andOther Non-Insurance(a) ConsolidateCLOs Total AFGConsolidated % ofInvestmentPortfolio
Total cash and investments:
Cash and cash equivalents $ 1,454 $ 237 $ — $ 1,691 12 %
Fixed maturities — Available for sale 9,282 7 — 9,289 67 %
Fixed maturities — Trading 26 — — 26 0 %
Equity securities — common stocks 461 75 — 536 4 %
Equity securities — perpetual preferred 408 — — 408 3 %
Investments accounted for using the equity method 861 463 — 1,324 9 %
Mortgage loans 408 — — 408 3 %
Real estate and other investments 124 151 (57 ) 218 2 %
Total cash and investments $ 13,024 $ 933 $ (57 ) $ 13,900 **** 100 %
Carrying Value - December 31, 2020
--- --- --- --- --- --- --- --- --- --- --- --- ---
Property andCasualtyInsurance Parent andOther Non-Insurance(a) ConsolidateCLOs Total AFGConsolidated % ofInvestmentPortfolio
Total cash and investments:
Cash and cash equivalents $ 1,408 $ 257 $ — $ 1,665 12 %
Fixed maturities — Available for sale 9,076 8 — 9,084 67 %
Fixed maturities — Trading 24 — — 24 0 %
Equity securities — common stocks 438 72 — 510 4 %
Equity securities — perpetual preferred 379 — — 379 3 %
Investments accounted for using the equity method 806 429 — 1,235 9 %
Mortgage loans 377 — — 377 3 %
Real estate and other investments 125 151 (56 ) 220 2 %
Total cash and investments $ 12,633 $ 917 $ (56 ) $ 13,494 **** 100 %
(a) On January 27, 2021, AFG entered into a definitive agreement to sell its annuity subsidiaries to Mass<br>Mutual (which includes the run-off life and long term care business). As part of the sale of the annuity business, AFG will acquire approximately $460 million in real estate-related partnerships and<br>approximately $100 million in directly owned real estate from GALIC.
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Page 17

American Financial Group, Inc.<br> <br>NetInvestment Income From Continuing Operations<br> <br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19
Property and Casualty Insurance:
Gross Investment Income
Fixed maturities - Available for sale $ 72 $ 71 $ 72 $ 75 $ 81 $ 299 $ 310
Fixed maturities - Trading — — — — 1 1 3
Equity securities - dividends 8 7 8 8 10 33 49
Equity securities - MTM 23 8 (3 ) 2 3 10 9
Equity in investees 49 27 27 (15 ) 11 50 64
AFG managed CLOs 5 6 4 — (11 ) (1 ) 1
Other investments (a) 4 4 5 3 6 18 42
Gross investment income **** 161 **** **** 123 **** **** 113 **** **** 73 **** **** 101 **** **** 410 **** **** 478 ****
Investment expenses (2 ) (1 ) (2 ) (1 ) (2 ) (6 ) (6 )
Total net investment income $ 159 **** $ 122 **** $ 111 **** $ 72 **** $ 99 **** $ 404 **** $ 472 ****
Average cash and investments (b) $ 12,573 **** $ 12,135 **** $ 11,764 **** $ 11,454 **** $ 11,457 **** $ 11,760 **** $ 11,348 ****
Average yield (c) **** 5.06 % **** 4.02 % **** 3.77 % **** 2.51 % **** 3.46 % **** 3.44 % **** 4.16 %
AFG consolidated net investment income:
Property & Casualty core $ 159 $ 122 $ 111 $ 72 $ 99 $ 404 $ 472
Neon exited lines non-core — — 1 — (6 ) (5 ) —
Equity in Investees (d) 29 19 9 9 12 49 33
Other Investments (d) — 1 1 (2 ) — — 4
Parent & other 5 11 4 9 (12 ) 12 24
Consolidate CLOs (5 ) (6 ) (4 ) — 11 1 (1 )
Total net investment income $ 188 **** $ 147 **** $ 122 **** $ 88 **** $ 104 **** $ 461 **** $ 532 ****
(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.
--- ---
(d) On January 27, 2021, AFG entered into a definitive agreement to sell its annuity subsidiaries to Mass<br>Mutual (which includes the run-off life and long term care business). As part of the sale of the annuity business, AFG will retain approximately $460 million in real estate-related partnerships and<br>approximately $100 million in directly owned real estate from GALIC. Investment income from these assets to be retained are included in continuting operations.
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Page 18

American Financial Group, Inc.<br><br><br>Alternative Investments - Continuing Operations<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19
Property and Casualty Insurance:
Net Investment Income
Equity securities MTM through investment income (a) $ 23 $ 8 $ (3 ) $ 2 $ 3 $ 10 $ 9
Investments accounted for using the equity method (b) 49 27 27 (15 ) 11 50 64
AFG managed CLOs (eliminated in consolidation) 5 6 4 — (11 ) (1 ) 1
Total Property & Casualty $ 77 **** $ 41 **** $ 28 **** $ (13 ) $ 3 **** $ 59 **** $ 74 ****
Investments
Equity securities MTM through investment income (a) $ 159 $ 129 $ 109 $ 95 $ 86 $ 129 $ 71
Investments accounted for using the equity method (b) 861 806 778 755 736 806 703
AFG managed CLOs (eliminated in consolidation) 57 57 46 39 40 57 48
Total Property & Casualty $ 1,077 **** $ 992 **** $ 933 **** $ 889 **** $ 862 **** $ 992 **** $ 822 ****
Annualized Yield - Property & Casualty **** 29.8 % **** 17.0 % **** 12.3 % **** (5.9 %) **** 1.4 % **** 6.6 % **** 10.3 %
Continuing Operations (c):
Net Investment Income
Equity securities MTM through investment income (a) $ 23 $ 8 $ (3 ) $ 2 $ 3 $ 10 $ 9
Investments accounted for using the equity method (b) 78 46 36 (6 ) 23 99 97
AFG managed CLOs (eliminated in consolidation) 5 6 4 — (11 ) (1 ) 1
Total Continuing operations $ 106 **** $ 60 **** $ 37 **** $ (4 ) $ 15 **** $ 108 **** $ 107 ****
Investments
Equity securities MTM through investment income (a) $ 159 $ 129 $ 109 $ 95 $ 86 $ 129 $ 71
Investments accounted for using the equity method (b) 1,324 1,235 1,194 1,150 1,095 1,235 1,028
AFG managed CLOs (eliminated in consolidation) 57 57 46 39 40 57 48
Total Continuing operations $ 1,540 **** $ 1,421 **** $ 1,349 **** $ 1,284 **** $ 1,221 **** $ 1,421 **** $ 1,147 ****
Annualized Yield - Continuing operations **** 28.6 % **** 17.3 % **** 11.2 % **** (1.3 %) **** 5.1 % **** 8.4 % **** 10.7 %
(a) AFG carries the small portion of its equity securities previously classified as “trading” and<br>investments in 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<br>market through net income.
--- ---
(c) On January 27, 2021, AFG entered into a definitive agreement to sell its annuity subsidiaries to Mass<br>Mutual (which includes the run-off life and long term care business). As part of the sale of the annuity business, AFG will retain approximately $460 million in real estate-related partnerships and<br>approximately $100 million in directly owned real estate from GALIC. Investment income from these assets to be retained are included in continuting operations.
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Page 19

American Financial Group, Inc.<br> <br>FixedMaturities - By Security Type - AFG Consolidated<br> <br>($ in millions)
March 31, 2021 (a) Book Value (d) Fair Value UnrealizedGain (Loss) % ofFair Value % ofInvestmentPortfolio
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
US Government and government agencies $ 212 $ 215 $ 3 2 % 2 %
States, municipalities and political subdivisions 2,076 2,167 91 24 % 16 %
Foreign government 211 213 2 2 % 2 %
Residential mortgage-backed securities 796 847 51 9 % 6 %
Commercial mortgage-backed securities 106 109 3 1 % 1 %
Collateralized loan obligations 1,130 1,131 1 12 % 8 %
Other asset-backed securities 2,170 2,188 18 24 % 16 %
Corporate and other bonds 2,374 2,445 71 26 % 18 %
Total AFG consolidated $ 9,075 **** $ 9,315 $ 240 **** 100 % **** 69 %
Annualized yield on available for sale fixed maturities: ****
Excluding investment expense (b) 3.23 %
Net of investment expense (b) 3.16 %
Tax equivalent, net of investment expense (c) 3.34 %
Approximate average life and duration:
Approximate average life 4 years
Approximate duration 3 years
December 31, 2020 (a) Book Value (d) Fair Value UnrealizedGain (Loss) % ofFair Value % ofInvestmentPortfolio
US Government and government agencies $ 192 $ 198 $ 6 2 % 1 %
States, municipalities and political subdivisions 2,196 2,312 116 25 % 17 %
Foreign government 193 197 4 2 % 1 %
Residential mortgage-backed securities 859 915 56 10 % 7 %
Commercial mortgage-backed securities 89 92 3 1 % 1 %
Collateralized loan obligations 1,062 1,062 — 12 % 8 %
Other asset-backed securities 2,033 2,047 14 23 % 15 %
Corporate and other bonds 2,200 2,285 85 25 % 17 %
Total AFG consolidated $ 8,824 **** $ 9,108 $ 284 **** 100 % **** 67 %
Annualized yield on available for sale fixed maturities: ****
Excluding investment expense (b) 3.32 %
Net of investment expense (b) 3.26 %
Tax equivalent, net of investment expense (c) 3.40 %
Approximate average life and duration:
Approximate average life 4 years
Approximate duration 3 years
(a) Excludes $34.79 billion at March 31, 2021 and $34.17 billion at December 31, 2020 in fair<br>value related to fixed maturities that are held in assets of discontinued annuity operations.
--- ---
(b) 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.
--- ---
(c) Adjusts the yield on tax-exempt bonds to the fully taxable equivalent<br>yield.
--- ---
(d) Book Value is amortized cost, net of allowance for expected credit losses.     <br>
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Page 20

Appendix A<br><br><br>American Financial Group, Inc.<br> <br>Fixed Maturities byCredit Rating & NAIC Designation by Type<br> <br>3/31/2021<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 $ 215 $ 859 $ 200 $ 448 $ 79 $ 895 $ 940 $ 46 $ 3,682 40 %
AA — 1,201 — 18 10 166 420 170 1,985 21 %
A — 86 — 29 1 60 414 639 1,229 13 %
BBB — 9 3 9 12 9 221 978 1,241 13 %
Subtotal - Investment grade 215 2,155 203 504 102 1,130 1,995 1,833 8,137 87 %
BB — — — 9 7 — 2 120 138 2 %
B — — — 23 — — 10 28 61 1 %
CCC, CC, C — — — 162 — — — 9 171 2 %
D — — — 32 — — — — 32 0 %
Subtotal - Non-Investment grade — — — 226 7 — 12 157 402 5 %
Not Rated (b) — 12 10 117 — 1 181 455 776 8 %
Total $ 215 $ 2,167 $ 213 $ 847 $ 109 $ 1,131 $ 2,188 $ 2,445 $ 9,315 **** 100 %
Fair Value by type
NAIC designation US Gov Munis Frgn gov RMBS CMBS CLOs ABS Corp/Oth Total % Total
1 $ 215 $ 2,157 $ 190 $ 818 $ 100 $ 1,120 $ 1,952 $ 1,249 $ 7,801 84 %
2 — 9 — 3 2 9 221 1,008 1,252 14 %
Subtotal 215 2,166 190 821 102 1,129 2,173 2,257 9,053 98 %
3 — — — 4 7 — 2 119 132 1 %
4 — — — 3 — — 10 41 54 1 %
5 — — — 10 — 1 2 22 35 0 %
6 — — — 1 — — — 2 3 0 %
Subtotal — — — 18 7 1 14 184 224 2 %
No designation (c) — 1 23 8 — 1 1 4 38 0 %
Total $ 215 $ 2,167 $ 213 $ 847 $ 109 $ 1,131 $ 2,188 $ 2,445 $ 9,315 **** 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, 98% are NAIC 1.
--- ---

For Corp/Oth, 87% are NAIC 1, 6% NAIC 2, 2% NAIC 3, 2% NAIC 4, 3% NAIC 5.

For Total, 89% are NAIC 1, 4% NAIC 2, 2% NAIC 3, 2% NAIC 4, 3% NAIC 5.

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

Page 21

Appendix B<br><br><br>American Financial Group, Inc.<br> <br>Fixed Maturities byCredit Rating & NAIC Designation by Type<br> <br>12/31/2020<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 $ 198 $ 922 $ 179 $ 492 $ 62 $ 801 $ 889 $ 41 $ 3,584 39 %
AA — 1,271 — 20 8 179 407 163 2,048 22 %
A — 97 — 31 1 72 330 620 1,151 13 %
BBB — 9 2 10 14 9 208 887 1,139 13 %
Subtotal - Investment grade 198 2,299 181 553 85 1,061 1,834 1,711 7,922 87 %
BB — — — 10 6 — 2 95 113 1 %
B — — — 24 — — 10 30 64 1 %
CCC, CC, C — — — 170 1 — — 13 184 2 %
D — — — 38 — — — — 38 0 %
Subtotal - Non-Investment grade — — — 242 7 — 12 138 399 4 %
Not Rated (b) — 13 16 120 — 1 201 436 787 9 %
Total $ 198 $ 2,312 $ 197 $ 915 $ 92 $ 1,062 $ 2,047 $ 2,285 $ 9,108 **** 100 %
Fair Value by type
NAIC designation US Gov Munis Frgn gov RMBS CMBS CLOs ABS Corp/Oth Total % Total
1 $ 198 $ 2,302 $ 176 $ 883 $ 83 $ 1,051 $ 1,823 $ 1,203 $ 7,719 85 %
2 — 9 — 2 2 9 208 907 1,137 12 %
Subtotal 198 2,311 176 885 85 1,060 2,031 2,110 8,856 97 %
3 — — — 7 7 — 2 95 111 1 %
4 — — — 2 — — 10 49 61 1 %
5 — — — 10 — 1 2 28 41 1 %
6 — — — 2 — — — 1 3 0 %
Subtotal — — — 21 7 1 14 173 216 3 %
No designation (c) — 1 21 9 — 1 2 2 36 0 %
Total $ 198 $ 2,312 $ 197 $ 915 $ 92 $ 1,062 $ 2,047 $ 2,285 $ 9,108 **** 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, 98% are NAIC 1.
--- ---

For Corp/Oth, 87% are NAIC 1, 4% NAIC 2, 2% NAIC 3, 4% NAIC 4, 3% NAIC 5.

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

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

Page 22

Appendix C<br> <br>American Financial Group,Inc.<br> <br>Corporate Securities by Credit Rating & NAIC Designation by Industry<br><br><br>3/31/2021<br> <br>($ in millions)
Fair Value By Industry
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
CreditRating(a) Banking OtherFinancials Insurance AssetManagers Technology Energy Healthcare Consumer REITs CapitalGoods Utilities BasicIndustry Media Autos Communications Retailers Aviation Restaurants,Hospitality &Leisure Other Total %Total
Investment Grade
AAA $ — $ — $ — $ — $ 10 $ — $ 10 $ 11 $ — $ — $ — $ — $ — $ — $ 13 $ — $ — $ — $ 2 $ 46 2 %
AA 28 7 35 — 28 37 12 5 15 — — — — — — — — — 3 170 7 %
A 120 44 115 69 24 23 22 49 21 62 26 1 — 28 26 — 4 — 5 639 26 %
BBB 172 85 20 241 79 32 42 36 34 13 6 18 3 117 36 1 16 6 21 978 40 %
Subtotal 320 136 170 310 141 92 86 101 70 75 32 19 3 145 75 1 20 6 31 1,833 75 %
BB — 6 6 — 20 12 9 35 — 5 — 4 — 12 1 7 2 1 — 120 5 %
B — — — — 2 — 3 4 14 — — — — 4 — — 1 — — 28 1 %
CCC, CC, C — — — — 2 — — 2 — — — — — — — — — 5 — 9 0 %
D — — — — — — — — — — — — — — — — — — — — 0 %
Subtotal — 6 6 — 24 12 12 41 14 5 — 4 — 16 1 7 3 6 — 157 6 %
Not Rated (b) — 375 9 22 2 — 2 12 13 1 — — 17 — — — — 1 1 455 19 %
Total $ 320 $ 517 $ 185 $ 332 $ 167 $ 104 $ 100 $ 154 $ 97 $ 81 $ 32 $ 23 $ 20 $ 161 $ 76 $ 8 $ 23 $ 13 $ 32 $ 2,445 **** 100 %
Fair Value By Industry
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAICdesignation Banking OtherFinancials Insurance AssetManagers Technology Energy Healthcare Consumer REITs CapitalGoods Utilities BasicIndustry Media Autos Communications Retailers Aviation Restaurants,Hospitality &Leisure Other Total %Total
1 $ 148 $ 419 $ 158 $ 68 $ 66 $ 60 $ 46 $ 67 $ 36 $ 63 $ 26 $ 1 $ 13 $ 27 $ 39 $ — $ 4 $ — $ 8 $ 1,249 51 %
2 172 91 22 264 79 32 41 36 34 14 5 18 4 117 36 1 16 6 20 1,008 41 %
Subtotal 320 510 180 332 145 92 87 103 70 77 31 19 17 144 75 1 20 6 28 2,257 92 %
3 — 6 4 — 15 12 8 35 6 4 1 4 — 12 1 7 2 2 — 119 5 %
4 — — — — 2 — 4 8 21 — — — — 5 — — 1 — — 41 2 %
5 — — 1 — 5 — 1 7 — — — — 3 — — — — 5 — 22 1 %
6 — 1 — — — — — 1 — — — — — — — — — — — 2 0 %
Subtotal — 7 5 — 22 12 13 51 27 4 1 4 3 17 1 7 3 7 — 184 8 %
No designation (c) — — — — — — — — — — — — — — — — — — 4 4 0 %
Total $ 320 $ 517 $ 185 $ 332 $ 167 $ 104 $ 100 $ 154 $ 97 $ 81 $ 32 $ 23 $ 20 $ 161 $ 76 $ 8 $ 23 $ 13 $ 32 $ 2,445 **** 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, 98% are NAIC 1.
--- ---

For the Total, 87% are NAIC 1, 6% NAIC 2, 2% NAIC 3, 2% NAIC 4, 3% NAIC 5.

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

Page 23

Appendix D<br><br><br>American Financial Group, Inc.<br> <br>Corporate Securities byCredit Rating & NAIC Designation by Industry<br> <br>12/31/2020<br><br><br>($ in millions)
Fair Value By Industry
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
CreditRating(a) Banking OtherFinancials Insurance AssetManagers Technology Energy Healthcare Consumer REITs CapitalGoods Utilities BasicIndustry Media Autos Communications Retailers Aviation Restaurants,Hospitality &Leisure Other Total %Total
Investment Grade
AAA $ — $ — $ — $ — $ 16 $ — $ 10 $ — $ — $ — $ — $ — $ — $ — $ 13 $ — $ — $ — $ 2 $ 41 2 %
AA 28 12 35 8 23 37 12 5 — — — — — — — — — — 3 163 7 %
A 121 39 96 53 24 25 22 50 36 63 27 1 — 28 26 — 4 — 5 620 27 %
BBB 190 65 21 147 81 33 45 36 23 13 5 19 4 119 37 1 16 6 26 887 39 %
Subtotal 339 116 152 208 144 95 89 91 59 76 32 20 4 147 76 1 20 6 36 1,711 75 %
BB — 9 6 — 16 13 4 21 — 4 1 4 — 11 1 2 1 2 — 95 4 %
B — — — — 2 3 3 3 15 — — 1 — — — 2 1 — — 30 1 %
CCC, CC, C — — — — 2 — 1 2 — — — 2 — — — 1 — 5 — 13 1 %
D — — — — — — — — — — — — — — — — — — — — 0 %
Subtotal — 9 6 — 20 16 8 26 15 4 1 7 — 11 1 5 2 7 — 138 6 %
Not Rated (b) — 385 8 — 3 — — 7 13 2 — — 16 — — — — 2 — 436 19 %
Total $ 339 $ 510 $ 166 $ 208 $ 167 $ 111 $ 97 $ 124 $ 87 $ 82 $ 33 $ 27 $ 20 $ 158 $ 77 $ 6 $ 22 $ 15 $ 36 $ 2,285 **** 100 %
Fair Value By Industry
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAICdesignation Banking OtherFinancials Insurance AssetManagers Technology Energy Healthcare Consumer REITs CapitalGoods Utilities BasicIndustry Media Autos Communications Retailers Aviation Restaurants,Hospitality &Leisure Other Total %Total
1 $ 149 $ 432 $ 131 $ 62 $ 63 $ 62 $ 45 $ 55 $ 35 $ 63 $ 27 $ 1 $ — $ 28 $ 39 $ — $ 4 $ — $ 7 $ 1,203 53 %
2 190 69 22 146 81 33 45 36 24 14 5 19 17 119 37 1 16 6 27 907 40 %
Subtotal 339 501 153 208 144 95 90 91 59 77 32 20 17 147 76 1 20 6 34 2,110 93 %
3 — 9 4 — 14 13 3 20 5 4 1 4 — 11 1 2 1 3 — 95 4 %
4 — — 8 — 2 3 4 5 23 — — 1 — — — 2 1 — — 49 2 %
5 — — 1 — 6 — — 8 — 1 — 2 3 — — 1 — 6 — 28 1 %
6 — — — — 1 — — — — — — — — — — — — — — 1 0 %
Subtotal — 9 13 — 23 16 7 33 28 5 1 7 3 11 1 5 2 9 — 173 7 %
No designation (c) — — — — — — — — — — — — — — — — — — 2 2 0 %
Total $ 339 $ 510 $ 166 $ 208 $ 167 $ 111 $ 97 $ 124 $ 87 $ 82 $ 33 $ 27 $ 20 $ 158 $ 77 $ 6 $ 22 $ 15 $ 36 $ 2,285 **** 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 Other Financials, 99% are NAIC 1.
--- ---

For the Total, 87% are NAIC 1, 4% NAIC 2, 2% NAIC 3, 4% NAIC 4, 3% NAIC 5.

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

Page 24

Appendix E<br> <br>American Financial Group,Inc.<br> <br>Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br><br><br>3/31/2021<br> <br>($ in millions)
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Credit Rating (a) SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate SingleFamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Other Total %Total
Investment Grade
AAA $ — $ — $ — $ — $ 485 $ 128 $ — $ 39 $ 56 $ 232 $ 940 43 %
AA 64 171 40 — 12 39 — — 42 52 420 19 %
A 47 35 4 153 — 6 40 — 40 89 414 19 %
BBB 2 — 138 — — — 32 46 — 3 221 10 %
Subtotal 113 206 182 153 497 173 72 85 138 376 1,995 91 %
BB — — — — — — 2 — — — 2 0 %
B 1 — — — — — 8 — — 1 10 1 %
CCC, CC, C — — — — — — — — — — — 0 %
D — — — — — — — — — — — 0 %
Subtotal 1 — — — — — 10 — — 1 12 1 %
Not Rated (b) 146 — — — — — 3 — — 32 181 8 %
Total $ 260 $ 206 $ 182 $ 153 $ 497 $ 173 $ 85 $ 85 $ 138 $ 409 $ 2,188 **** 100 %
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAIC designation SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate SingleFamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Other Total %Total
1 $ 257 $ 206 $ 44 $ 153 $ 497 $ 173 $ 40 $ 39 $ 138 $ 405 $ 1,952 89 %
2 2 — 138 — — — 32 46 — 3 221 10 %
Subtotal 259 206 182 153 497 173 72 85 138 408 2,173 99 %
3 — — — — — — 2 — — — 2 0 %
4 1 — — — — — 8 — — 1 10 1 %
5 — — — — — — 2 — — — 2 0 %
6 — — — — — — — — — — — 0 %
Subtotal 1 — — — — — 12 — — 1 14 1 %
No designation (d) — — — — — — 1 — — — 1 0 %
Total $ 260 $ 206 $ 182 $ 153 $ 497 $ 173 $ 85 $ 85 $ 138 $ 409 $ 2,188 **** 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) 98% 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.<br>
--- ---

Page 25

Appendix F<br> <br>American Financial Group,Inc.<br> <br>Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br><br><br>12/31/2020<br> <br>($ in millions)
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Credit Rating (a) SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate SingleFamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Other Total %Total
Investment Grade
AAA $ — $ — $ — $ — $ 427 $ 151 $ — $ 39 $ 53 $ 219 $ 889 43 %
AA 61 173 41 — 6 46 — — 33 47 407 20 %
A 13 36 4 140 — 5 38 — 22 72 330 16 %
BBB — — 134 — — — 30 40 — 4 208 10 %
Subtotal 74 209 179 140 433 202 68 79 108 342 1,834 89 %
BB — — — — — — 2 — — — 2 0 %
B 2 — — — — — 7 — — 1 10 1 %
CCC, CC, C — — — — — — — — — — — 0 %
D — — — — — — — — — — — 0 %
Subtotal 2 — — — — — 9 — — 1 12 1 %
Not Rated (b) 167 — — — — — 3 — — 31 201 10 %
Total $ 243 $ 209 $ 179 $ 140 $ 433 $ 202 $ 80 $ 79 $ 108 $ 374 $ 2,047 **** 100 %
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAIC designation SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate SingleFamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Other Total %Total
1 $ 241 $ 209 $ 46 $ 140 $ 433 $ 201 $ 37 $ 40 $ 108 $ 368 $ 1,823 89 %
2 1 — 133 — — — 31 39 — 4 208 10 %
Subtotal 242 209 179 140 433 201 68 79 108 372 2,031 99 %
3 — — — — — — 2 — — — 2 0 %
4 1 — — — — — 7 — — 2 10 1 %
5 — — — — — — 2 — — — 2 0 %
6 — — — — — — — — — — — 0 %
Subtotal 1 — — — — — 11 — — 2 14 1 %
No designation (d) — — — — — 1 1 — — — 2 0 %
Total $ 243 $ 209 $ 179 $ 140 $ 433 $ 202 $ 80 $ 79 $ 108 $ 374 $ 2,047 **** 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) 98% 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.<br>
--- ---

Page 26

Appendix G<br> <br>American Financial Group,Inc.<br> <br>Real Estate-Related Investments<br><br><br>3/31/2021<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) CollectionRate (c)
Multi-family $ 863 88 % 96 % 98 %
Fund Investments 38 4 % — —
Student Housing 25 2 % 94 % 98 %
QOZ Fund - Development 19 2 % — —
Land Development 17 2 % — —
Office 15 1 % 81 % 100 %
Hospitality 8 1 % — —
Total $ 985 **** 100 %

Real Estate

Property Type BookValue % ofBookValue Debt
Marina $ 63 39 % $ —
Resort & Marina 55 34 % —
Hotel 23 14 % —
Office Building 17 10 % —
Land 5 3 % —
Total $ 163 **** 100 % $ —

Mortgage Loans

Property Type Book Value % ofBook Value Loan ToValue (d)
Multifamily 169 41 % 66 %
Hospitality 160 39 % 56 %
Office 73 18 % 72 %
Retail 6 2 % 57 %
Other — 0 % —
Total $ 408 **** 100 % **** 63 %

Currently, no loans are receiving interest deferral through forbearance agreements.

(a) Total investments accounted for using the equity method is $1.3 billion, the amounts presented in this<br>table only relate to real estate funds/investments.
(b) Occupancy as of 3/31/21
--- ---
(c) Collections for January - March
--- ---
(d) Based on most recent property appraisals, the vast majority of which are prior to March 2020.<br>
--- ---

Page 27

Appendix H<br> <br>American Financial Group,Inc.<br> <br>Real Estate-Related Investments<br><br><br>12/31/2020<br> <br>($ in millions)

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

Investment Type Book Value % ofBook Value Occupancy(b) Collection Rate(c)
Multi-family $ 793 87 % 96 % 98 %
Fund Investments 38 4 % — —
Student Housing 28 3 % 94 % 98 %
Land - Development 17 2 % — —
QOZ Fund - Development 16 2 % — —
Office 15 1 % 90 % 100 %
Hospitality 8 1 % — —
Total $ 915 **** 100 %

Real Estate

Property Type BookValue % ofBookValue Debt
Marina $ 63 39 % $ —
Resort & Marina 56 34 % —
Hotel 23 14 % —
Office Building 17 10 % —
Land 4 3 % —
Total $ 163 **** 100 % $ —

Mortgage Loans

Property Type Book Value % ofBook Value Loan ToValue
Hospitality 160 42 % 56 %
Multi-family 138 37 % 68 %
Office 73 19 % 72 %
Retail 6 2 % 57 %
Other — 0 % —
Total $ 377 **** 100 % **** 64 %

Currently, no loans are receiving interest deferral through forbearance agreements.

(a) Total investments accounted for using the equity method is $1.2 billion, the amounts presented in this<br>table only relate to real estate funds/investments.
(b) Occupancy as of 12/31/20
--- ---
(c) Collections for October - December
--- ---
(d) Based on most recent property appraisals, the vast majority of which are prior to March 2020.<br>
--- ---

Page 28

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