Equibles

8-K

AMERICAN FINANCIAL GROUP INC (AFG)

8-K 2020-08-05 For: 2020-08-04
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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): August 4, 2020

AMERICAN FINANCIAL GROUP, INC.

(Exact name of registrant as specified in its charter)

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

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

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

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 second quarter of 2020 and the availability of the Investor Supplement on the Company’s website. The press release was issued on August 4, 2020. A copy of the press release is attached to this Form 8-K as Exhibit 99.1 and a copy of the Investor Supplement is attached as Exhibit 99.2 and are incorporated herein by reference.

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

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.
(a) Financial statements of business acquired. Not applicable.
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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 August 4, 2020, reporting American Financial Group Inc. results for the quarter ended June 30, 2020.
99.2 Investor Supplement – Second Quarter 2020
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: August 5, 2020
By: /s/ Karl J. Grafe
Karl J. Grafe
Vice President

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EX-99.1

Exhibit 99.1

LOGO

American Financial Group, Inc. Announces Second Quarter Results

• Net earnings per share of $1.97; includes $0.92 per share in after-taxnon-core items
• Core net operating earnings before impact of alternative investments, $1.53 per share; includes $0.75 pershare in COVID-19 related losses
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• Core net operating earnings of $1.05 per share; includes $0.48 per share loss from alternative investments and$0.75 per share in COVID-19 related losses
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• Overall Specialty P&C renewal rates up 13%, excluding workers’ compensation
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• Parent company cash of $500 million and excess capital of $850 million at June 30, 2020
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• Full year 2020 core net operating earnings guidance excluding the impact of alternative investments$6.60—$7.40 per share, an increase from our previous guidance of $6.45 to $7.25 per share
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CINCINNATI – August 4, 2020 – American Financial Group, Inc. (NYSE: AFG) today reported 2020 second quarter net earnings attributable to shareholders of $177 million ($1.97 per share), compared to $210 million ($2.31 per share) in the 2019 second quarter. Net earnings for the 2020 second quarter included net favorable after-tax non-core items aggregating $82 million ($0.92 per share). These items included $161 million ($1.80 per share) in non-core after-tax net realized gains on securities, partially offset by after-tax annuity non-core losses of $47 million ($0.52 per share loss), and $32 million ($0.36 per share loss) for costs associated with the runoff of Neon, our Lloyd’s-based insurer. By comparison, net earnings in the 2019 second quarter included $18 million ($0.19 per share) in net favorable after-tax non-core items. Other details may be found in the table on the following page. AFG’s book value per share was $69.10 at June 30, 2020. Annualized return on equity was 14.1% and 16.0% for the second quarters of 2020 and 2019, respectively.

Core net operating earnings were $95 million ($1.05 per share) for the 2020 second quarter, compared to $192 million ($2.12 per share) in the 2019 second quarter. Core net operating earnings for the second quarters of 2020 and 2019 generated annualized returns on equity of 7.5% and 14.7%, respectively. The year-over-year decrease was the result of negative adjustments to the Company’s $2.2 billion of alternative investments that are marked to market through core operating earnings. The COVID-19 pandemic has had widespread financial and economic impacts, which adversely affected returns on alternative investments. Excluding the impact of alternative investments, AFG’s second quarter 2020 core net operating earnings decreased $12 million ($0.13 per share) year-over-year. Additional details may be found in the table below.

Three Months Ended June 30,
Components of Pretax Core Operating Earnings 2020 2019 2020 2019 2020 2019
In millions, except per share amounts Before Impact of<br>Alternative Investments Alternative<br>Investments, net of DAC Core Net Operating<br>Earnings, as reported
P&C Pretax Core Operating Earnings $ 129 $ 152 $ (13 ) $ 23 $ 116 $ 175
Annuity Pretax Core Operating Earnings 84 75 (42 ) 29 42 104
Other Expenses (20 ) (25 ) — — (20 ) (25 )
Holding Company Interest Expense (23 ) (17 ) — — (23 ) (17 )
Pretax Core Operating Earnings 170 185 (55 ) 52 115 237
Related Income Taxes 31 34 (11 ) 11 20 45
Core Net Operating Earnings (Loss) $ 139 **** $ 151 **** $ (44 ) $ 41 $ 95 **** $ 192 ****
Core Net Operating Earnings (Loss) Per Share $ 1.53 $ 1.66 ($ 0.48 ) $ 0.46 $ 1.05 $ 2.12
Weighted Avg Diluted Shares Outstanding 90.0 91.0 90.0 91.0 90.0 91.0

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P&C core operating earnings for the second quarter of 2020 also included $85 million ($0.75 per share) in COVID-19 related losses.

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

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

In millions, except per share amounts Three months ended<br>June 30, Six months ended<br>June 30,
2020 2019 2020 2019
Components of net earnings (loss) attributable to shareholders:
Core operating earnings before income taxes $ 115 $ 236 $ 326 $ 465
Pretax non-core items:
Realized gains (losses) on securities 204 56 (347 ) 240
Annuity non-core earnings (losses) (59 ) (33 ) (97 ) (33 )
Neon exited lines (42 ) — (52 ) —
Earnings (loss) before income taxes 218 259 (170 ) 672
Provision (credit) for income taxes:
Core operating earnings 20 45 60 93
Non-core items 31 5 (93 ) 44
Total provision (credit) for income taxes 51 50 (33 ) 137
Net earnings (loss), including noncontrolling interests 167 209 (137 ) 535
Less net earnings (loss) attributable to noncontrolling interests:
Core operating earnings (loss) — (1 ) — (4 )
Non-core items (10 ) — (13 ) —
Total net earnings (loss) attributable to noncontrolling interests (10 ) (1 ) (13 ) (4 )
Net earnings (loss) attributable to shareholders $ 177 **** $ 210 **** $ (124 ) $ 539 ****
Net earnings (loss):
Core net operating<br>earnings**^(a)^** $ 95 $ 192 $ 266 $ 376
Non-core items:
Realized gains (losses) on securities 161 45 (274 ) 190
Annuity non-core earnings (losses) (47 ) (27 ) (77 ) (27 )
Neon exited lines (32 ) — (39 ) —
Net earnings (loss) attributable to shareholders $ 177 **** $ 210 **** $ (124 ) $ 539 ****
Components of Earnings (Loss) Per<br>Share**^(b)^**:
Core net operatingearnings^(a)^ $ 1.05 **** $ 2.12 **** $ 2.94 **** $ 4.14 ****
Non-core Items:
Realized gains (losses) on securities 1.80 0.48 (3.03 ) 2.09
Annuity non-core earnings (losses) (0.52 ) (0.29 ) (0.86 ) (0.29 )
Neon exited lines (0.36 ) — (0.43 ) —
Diluted Earnings (Loss) Per Share $ 1.97 **** $ 2.31 **** $ (1.38 ) $ 5.94 ****

Footnotes (a) and (b) are 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 $56.95 per share at June 30, 2020. In the 2020 second quarter, AFG repurchased 1.2 million shares of its common stock at an average price of $63.71 per share, for a total of approximately $76 million.

S. Craig Lindner and Carl H. Lindner III, AFG’s Co-Chief Executive Officers, commented: “Our thoughts and prayers remain with those affected by the COVID-19 pandemic. We are thankful to those serving and caring for others, including healthcare professionals, first responders, military and other essential workers. The safety of our employees remains our top priority. We are proud of the resiliency, flexibility and commitment they have demonstrated as they continue to provide the secure, trusted service and support on which our agents and policyholders rely.

“We are very pleased with the performance of our core operating businesses and the results in our investment operations in the second quarter. Our liquidity and excess capital afford us the flexibility to effectively address and respond to the uncertainties introduced by COVID-19, and we believe our results demonstrate the value of our disciplined operating philosophy and portfolio of diversified specialty insurance businesses.

“AFG had approximately $850 million of excess capital at June 30, 2020. This number included parent company cash of approximately $500 million. We expect to continue to have significant excess capital and liquidity throughout 2020 and beyond. Specifically, our insurance subsidiaries are projected to have capital in excess of the levels expected by ratings agencies in order to maintain their current ratings, we have no near-term debt maturities and we maintain a $500 million undrawn credit facility.”

AFG has provided full year 2020 core net operating earnings per share guidance excluding earnings or losses from alternative investments (marked-to-market through core operating earnings), due to the uncertainty of the implications of COVID-19 and the resulting volatility in the financial markets. AFG now expects its 2020 core net operating earnings per share excluding alternative investments to be in the range of $6.60 to $7.40 per share, an increase from our previous guidance of $6.45 to $7.25 per share. For comparison, AFG’s 2019 full year core operating earnings per share excluding alternative investments were $7.11. In addition to excluding earnings on alternative investments where indicated, our 2020 core earnings per share expectations and guidance excludes non-core items such as realized gains and losses, annuity non-core earnings and losses, and other significant items that are not able to be estimated with reasonable precision, or that may not be indicative of ongoing operations. Furthermore, the above guidance reflects the impacts of (i) the continued negative impact of low interest rates (ii) a decline in property and casualty premiums as indicated in our detailed guidance, (iii) renewal rate actions taken on annuity policies near or after the end of their surrender charge period, and (iv) our current estimates of the impact of COVID-19 on AFG’s results of operations.

Specialty Property and Casualty Insurance Operations

Pretax core operating earnings in AFG’s P&C Insurance Segment were $116 million in the second quarter of 2020, compared to $175 million in the prior year period, a decrease of $59 million (34%). Lower year-over-year P&C net investment income, due primarily to the impact of alternative investments, was the driver of the lower earnings. Absent the impact of alternative investments, second quarter 2020 pretax core operating earnings in AFG’s P&C Insurance Segment decreased $23 million (15%) compared to the prior year period reflecting the impact of higher cash balances and lower interest rates on investment income and slightly lower underwriting profit.

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The Specialty P&C insurance operations generated an underwriting profit of $54 million in the 2020 second quarter, compared to $60 million in the 2019 second quarter. Second quarter 2020 underwriting results included $85 million in COVID-19 related losses. In the first quarter of 2020, the Company reported $10 million in COVID-19 related losses. Given the uncertainties surrounding the ultimate number or scope of claims relating to the pandemic, these charges, approximately 90% of which establish reserves for claims that have been incurred but not reported (IBNR), represent the Company’s current best estimate of losses from the pandemic and related economic disruption. Approximately 70% of AFG’s COVID-19 related losses were reported in our workers’ compensation, executive liability and trade credit businesses, with the remainder spread across a number of other businesses.

Higher underwriting profitability in our Property and Transportation Group was more than offset by lower underwriting profits in our Specialty Casualty and Specialty Financial Groups. The second quarter 2020 combined ratio of 95.2% was 0.2 points higher than the prior year period. Results in the second quarter of 2020 include 7.6 points of favorable prior year reserve development, compared to 3.4 points in the 2019 second quarter. In addition to the 7.6 points of negative impact of COVID-19 on the combined ratio for the second quarter of 2020, catastrophe losses added 2.3 points, compared to 0.9 points in the comparable prior year period. Catastrophe losses in the second quarter of 2020 included $4 million (0.4 points on the combined ratio) attributable to civil unrest losses.

Second quarter 2020 gross and net written premiums were down 8% and 11%, respectively, when compared to the second quarter of 2019, primarily as the result of the run-off of Neon. Excluding the impact of the Neon runoff, gross written premiums were up 2% and net written premiums decreased 1% year-over-year.

Average renewal pricing across our entire P&C Group was up approximately 9% for the quarter. Excluding our workers’ compensation business, renewal pricing was up approximately 13%. Both measures reflect an improvement from renewal rate increases achieved in the first quarter of 2020. Renewal pricing is the highest we have achieved in more than fifteen years in each of our Specialty P&C sub-segments and in our Specialty P&C Group overall.

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

The Property and Transportation Group reported an underwriting profit of $33 million in the second quarter of 2020, compared to $4 million in the second quarter of 2019. These results were primarily the result of higher favorable prior period reserve development in our transportation businesses. COVID-19 related losses were $3 million in this group in the second quarter, and catastrophe losses added another $15 million. By comparison, catastrophe losses were $8 million in the 2019 second quarter.

Second quarter 2020 gross and net written premiums in this group increased 6% and 1%, respectively, when compared to the second quarter of 2019, which was impacted by delayed acreage reporting from insureds as a result of excess moisture and late planting of corn and soybean crops. Excluding crop insurance, 2020 gross and net written premiums in this group decreased by 3% and 5%, respectively, when compared to the 2019 second quarter. Decreases in premiums due to return of premiums and reduced exposures as a result of COVID-19 were tempered by new business opportunities in our transportation, property and inland marine and ocean marine businesses. Overall renewal rates in this group increased 7% on average for the second quarter of 2020, an improvement from renewal rate increases achieved in the first quarter of 2020.

The Specialty Casualty Group reported an underwriting profit of $27 million in the second quarter of 2020, compared to $47 million in the second quarter of 2019. COVID-19 related losses were $52 million in the second quarter of 2020, primarily in our workers’ compensation and executive liability businesses. These losses, in addition to lower year-over year underwriting profits in our alternative markets and social services businesses, were partially offset by higher favorable prior year reserve development, primarily in

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our workers’ compensation business, higher profitability in our excess and surplus and excess liability businesses, and the impact of underwriting losses at Neon in the second quarter of 2019. Catastrophe losses for this group were $6 million in the second quarter of 2020, compared to $1 million in the 2019 second quarter.

Gross and net written premiums decreased 16% and 23%, respectively, for the second quarter of 2020 when compared to the same prior year period, primarily due to the run-off of Neon. Excluding the impact of Neon, gross written premiums increased 2% and net written premiums decreased by 5% in the second quarter of 2020 when compared to the same period in 2019. The COVID-19 pandemic has resulted in reduced exposures in our workers’ compensation businesses, which when coupled with renewal rate decreases, also were significant contributors to the lower year-over-year premiums. Gross and net written premiums in this group grew by 9% and 2%, respectively, when excluding both Neon and workers’ compensation. Significant renewal rate increases, coupled with new business opportunities in our excess and surplus and excess liability businesses contributed to this growth. Renewal pricing for this group was up 12% in the second quarter. Excluding our workers’ compensation businesses, renewal rates in this group were up approximately 21%. Renewal rates in our Specialty Casualty Group overall and renewal rates adjusted to exclude the impact of workers’ compensation are an improvement from renewal rate increases achieved in the first quarter of 2020.

The Specialty Financial Group reported an underwriting loss of less than $1 million in the second quarter of 2020, compared to an underwriting profit of $21 million in the second quarter of 2019. Results in the 2020 second quarter period included COVID-19 related losses of $30 million primarily related to trade credit insurance. Catastrophe losses for this group were $5 million in the second quarter of 2020, and $3 million in the comparable 2019 period.

Gross and net written premiums for the second quarter of 2020 were both down 7%, when compared to the same 2019 period. Lower premiums resulted from the impact of various state regulations regarding moratoria on policy cancelations and the placement of forced coverage in our financial institutions business. Renewal pricing in this group was up approximately 6% for the quarter and is an improvement from renewal rate increases achieved in the first quarter of 2020.

Carl Lindner III stated, “Despite the headwinds and uncertainty associated with loss exposures resulting from COVID-19, our overall Specialty P&C Group underwriting margins were excellent and we are achieving exceptionally strong renewal pricing that is exceeding our objectives. Based on our results through the first six months of the year and our current expectations of the impact of COVID-19, we now expect P&C pretax core operating earnings, excluding the impact of alternative investments, in the range of $615 million to $675 million. We continue to expect an overall 2020 calendar year combined ratio in the range of 92% to 94%. We expect net written premiums to be down 5% to 11% when compared to the $5.3 billion reported in 2019, due primarily to the run-off of Neon. Excluding the impact of Neon, net written premiums are estimated to be 2% higher to 4% lower than the premiums reported in 2019.”

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

Annuity Segment

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

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In millions Three months ended<br>June 30, Six months ended<br>June 30,
Components of Pretax Annuity Core Operating Earnings: 2020 2019 2020 2019
Pretax core operating earnings before alternative investments $ 84 $ 75 $ 163 $ 150
Amounts previously reported as core operating, net — — — (11 )
Pretax Annuity core operating earnings before alternative investments 84 75 163 139
Alternative Investments, net of DAC (42 ) 29 (54 ) 55
Pretax Annuity Core Operating Earnings, as reported $ 42 **** $ 104 **** $ 109 **** $ 194 ****
Year over year growth in quarterly average invested assets 7 % 12 % 8 % 12 %
Alternative investments – change in market value during the period (2.8 %) 2.8 % (3.3 %) 5.5 %

Second quarter 2020 pretax annuity core operating earnings before earnings or losses from alternative investments increased 12% year-over-year, reflecting growth in annuity assets, higher than expected persistency, lower than expected expenses related to guaranteed benefits, a strong stock market and a reduction in cost of funds. These favorable items, which include items that may not necessarily recur, were partially offset by a decline in investment returns.

Craig Lindner stated, “We believe that the Annuity Segment’s 12% increase in comparable core operating earnings in the second quarter (before the impact of alternative investments) demonstrates the strong fundamentals of our business. Although the Annuity Segment’s return on its $1.3 billion of alternative investments was negative in the second quarter and first six months of 2020, the average annual return on these investments over the past five calendar years was nearly 10%.”

Annuity Premiums – AFG’s Annuity Segment reported gross statutory premiums of $687 million in the second quarter of 2020, compared to $1.35 billion in the second quarter of 2019, a decrease of 49%. Annuity sales were lower in all channels in the 2020 second quarter as a result of stay-at-home orders and other factors related to the COVID-19 pandemic that significantly impacted our access to distribution partners, as well as their access to current and prospective clients.

Craig Lindner commented, “As we noted when we announced our first quarter results, we anticipated a significant impact on annuity sales in the second quarter; this trend has continued into the third quarter. Despite this slowdown in sales, AFG’s average annuity investments grew more than 7% over the comparable prior year quarter, and average annuity reserves grew more than 6%. Our current best estimate is that 2020 gross annuity premiums will be between $3.4 billion and $3.9 billion, and result in growth in average investments and reserves of 5% to 7% in 2020. This growth also reflects higher persistency in 2020 compared to 2019, which we attribute, in large part, to the low interest rate environment.”

2020 Annuity Core Operating Earnings Guidance, Excluding Alternative Investments – While AFG continues to expect an attractive return on its alternative investments over the long term, due to ongoing volatility and uncertainty, it is difficult to forecast the returns on alternative investments for the Annuity Segment for the remainder of 2020. Pretax Annuity core operating earnings, excluding earnings from alternative investments, are expected to be in the range of $300 million to $320 million, an increase from our most recent guidance of $280 million to $310 million. By comparison, annuity core operating earnings excluding alternative investments was $298 million in 2019.

This guidance reflects (i) the continued negative impact of low short-term interest rates on the Annuity Segment’s approximately $4.9 billion net investment in cash and floating rate securities, and (ii) the favorable impact of more aggressive renewal rate actions taken by AFG on annuity policies near or after the end of their surrender charge period. We estimate our current renewal rate strategy will, once fully implemented and depending on surrender activity, result in annualized crediting rate savings of $35 to $50 million, which is the equivalent of reducing our overall cost of funds by 8 to 12 basis points. The guidance also assumes that the stock market and longer-term interest rates remain relatively flat.

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Craig Lindner added, “The results in AFG’s Annuity Segment demonstrate our strong business fundamentals, pricing discipline and the success of our operating model. We have the ability to lower the crediting rates on $32 billion of annuity reserves by an average of 114 basis points, giving us a great deal of flexibility in helping us manage returns on our inforce business. Importantly, our business continues to have a strong capital position, enabling us to navigate the effects of the pandemic.

Annuity Non-Core Loss – In the second quarter of 2020, AFG reported an after-tax annuity non-core loss of $47 million ($0.52 per share loss), which reflects the unfavorable impact of lower than expected interest rates on fair value accounting for FIAs.

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

Investments

AFG recorded second quarter 2020 net realized gains on securities of $161 million ($1.80 per share) after tax and after deferred acquisition costs (DAC), which included $124 million ($1.38 per share) in after-tax, after-DAC net gains to adjust equity securities that the Company continued to own, to fair value. By comparison, AFG recorded net realized gains on securities of $45 million ($0.48 per share) in the comparable 2019 period.

Unrealized gains on fixed maturities were $1.0 billion after tax and after DAC at June 30, 2020, an increase of $168 million since year end. Our portfolio continues to be high quality, with 91% of our fixed maturity portfolio rated investment grade and 97% with a National Association of Insurance Commissioners’ designation of NAIC 1 or 2, its highest two categories.

For the six months ended June 30, 2020, P&C net investment income was approximately 25% lower than the comparable 2019 period. Excluding the impact of alternative investments, P&C net investment income was 8% lower year-over-year, reflecting higher average cash balances and lower market interest rates.

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

Neon Exited Lines

On January 6, 2020, AFG publicly announced its plans to exit the Lloyd’s of London insurance market and actions it had initiated to place its Lloyd’s subsidiaries including its Lloyd’s Managing Agency, Neon Underwriting Ltd., into run-off. The exit from this business will allow AFG to reallocate capital to its other insurance businesses and opportunities that have the potential to earn targeted returns on investment. AFG recognized non-core after-tax net expenses of $32 million ($0.36 per share) in the second quarter of 2020 related to the run-off of this business, which were primarily attributable to the impact of COVID-19 related losses.

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About American Financial Group, Inc.

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

Forward Looking Statements

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

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

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.

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Conference Call

The Company will hold a conference call to discuss 2020 second quarter results at 11:30 a.m. (ET) tomorrow, Wednesday, August 5, 2020. Toll-free telephone access will be available by dialing 1-877-459-8719 (international dial-in 424-276-6843). The conference ID for the live call is 2986141. Please dial in five to ten minutes prior to the scheduled start time of the call.

A replay will be available two hours following the completion of the call and will remain available until 11:59 p.m. (ET) on August 12, 2020. To listen to the replay, dial 1-855-859-2056 (international dial-in 404-537-3406) and provide the conference ID 2986141.

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 August 12, 2020 at 11:59 p.m. (ET).

Contact:

Diane P. Weidner, IRC

Vice President – Investor & Media Relations

513-369-5713

Websites:

www.AFGinc.com

www.GreatAmericanInsuranceGroup.com

#

(Financial summaries follow)

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

AFG2020-17

Page 9

AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES

SUMMARY OF EARNINGS AND SELECTED BALANCE SHEET DATA

(In Millions, Except Per Share Data)

Three months ended<br>June 30, Six months ended<br>June 30,
2020 2019 2020 2019
Revenues
P&C insurance net earned premiums $ 1,184 $ 1,200 $ 2,393 $ 2,373
Net investment income 468 580 1,012 1,122
Realized gains (losses) on securities 204 56 (347 ) 240
Income (loss) of managed investment entities:
Investment income 49 70 108 139
Loss on change in fair value of assets/liabilities (5 ) (2 ) (48 ) (2 )
Other income 51 56 108 112
Total revenues 1,951 1,960 3,226 3,984
Costs and expenses
P&C insurance losses & expenses 1,180 1,149 2,307 2,240
Annuity and supplemental insurance benefits & expenses 391 372 780 711
Interest charges on borrowed money 23 17 40 33
Expenses of managed investment entities 38 59 86 114
Other expenses 101 104 183 214
Total costs and expenses 1,733 1,701 3,396 3,312
Earnings (loss) before income taxes 218 259 (170 ) 672
Provision (credit) for income taxes 51 50 (33 ) 137
Net earnings (loss) including noncontrolling interests 167 209 (137 ) 535
Less: Net loss attributable to noncontrolling interests (10 ) (1 ) (13 ) (4 )
Net earnings (loss) attributable to shareholders $ 177 $ 210 $ (124 ) $ 539
Diluted Earnings (Loss) per Common Share $ 1.97 $ 2.31 $ (1.38 ) $ 5.94
Average number of diluted shares 90.0 91.0 90.0 90.8
Selected Balance Sheet Data: June 30,<br>2020 December 31,<br>2019
--- --- --- --- ---
Total cash and investments $ 56,741 $ 55,252
Long-term debt $ 1,912 $ 1,473
Shareholders’ equity**^(c)^** $ 6,126 $ 6,269
Shareholders’ equity (excluding unrealized gains/losses related to fixed maturities)^(c)^ $ 5,049 $ 5,390
Book value per share $ 69.10 $ 69.43
Book value per share (excluding unrealized gains/losses related to fixed maturities) $ 56.95 $ 59.70
Common Shares Outstanding 88.7 90.3

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

Page 10

AMERICAN FINANCIAL GROUP, INC.

SPECIALTY P&C OPERATIONS

(Dollars in Millions)

Three months<br>ended<br>June 30, Pct.<br>Change Six months ended<br>June 30, Pct.<br>Change
2020 2019 2020 2019
Gross written premiums $ 1,539 $ 1,664 (8 %) $ 3,065 $ 3,199 (4 %)
Net written premiums $ 1,123 $ 1,264 (11 %) $ 2,288 $ 2,411 (5 %)
Ratios (GAAP):
Loss & LAE ratio 62.6 % 60.2 % 60.5 % 59.6 %
Underwriting expense ratio 32.6 % 34.8 % 33.2 % 34.2 %
Specialty Combined Ratio 95.2 % 95.0 % 93.7 % 93.8 %
Combined Ratio – P&C Segment 99.2 % 95.1 % 96.0 % 93.9 %
SupplementalInformation:^(d)^
Gross Written Premiums:
Property & Transportation $ 611 $ 579 6 % $ 1,105 $ 1,018 9 %
Specialty Casualty 752 896 (16 %) 1,601 1,808 (11 %)
Specialty Financial 176 189 (7 %) 359 373 (4 %)
$ 1,539 $ 1,664 (8 %) $ 3,065 $ 3,199 (4 %)
Net Written Premiums:
Property & Transportation $ 426 $ 422 1 % $ 812 $ 766 6 %
Specialty Casualty 511 662 (23 %) 1,097 1,288 (15 %)
Specialty Financial 139 149 (7 %) 288 294 (2 %)
Other 47 31 52 % 91 63 44 %
$ 1,123 $ 1,264 (11 %) $ 2,288 $ 2,411 (5 %)
Combined Ratio (GAAP):
Property & Transportation 91.7 % 99.1 % 92.3 % 94.2 %
Specialty Casualty 94.9 % 92.5 % 92.8 % 93.4 %
Specialty Financial 100.4 % 85.6 % 94.4 % 88.6 %
Aggregate Specialty Group 95.2 % 95.0 % 93.7 % 93.8 %
Three months ended<br>June 30, Six months ended<br>June 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2020 2019 2020 2019
Reserve Development (Favorable)/Adverse:
Property & Transportation $ (28 ) $ (6 ) $ (52 ) $ (32 )
Specialty Casualty (51 ) (31 ) (75 ) (44 )
Specialty Financial (11 ) (9 ) (13 ) (15 )
Other Specialty 5 4 7 3
Total Specialty Reserve Development $ (85 ) $ (42 ) $ (133 ) $ (88 )
Points on Combined Ratio:
Property & Transportation (7.2 ) (1.6 ) (6.7 ) (4.4 )
Specialty Casualty (9.3 ) (4.7 ) (6.7 ) (3.5 )
Specialty Financial (8.0 ) (5.9 ) (4.5 ) (5.1 )
Aggregate Specialty Group (7.6 ) (3.4 ) (5.8 ) (3.7 )
Total P&C Segment (6.5 ) (3.3 ) (5.0 ) (3.6 )

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

Page 11

AMERICAN FINANCIAL GROUP, INC.

ANNUITY SEGMENT

(Dollarsin Millions)

Components of Gross Statutory Premiums

Three months ended<br>June 30, Pct.<br>Change Six months ended<br>June 30, Pct.<br>Change
2020 2019 2020 2019
Gross Annuity Premiums:
Financial Institutions $ 356 $ 742 (52 %) $ 1,067 $ 1,510 (29 %)
Retail 169 310 (45 %) 366 640 (43 %)
Broker-Dealer 102 197 (48 %) 257 430 (40 %)
Pension Risk Transfer 23 50 (54 %) 126 60 110 %
Education Market 32 44 (27 %) 71 93 (24 %)
Variable Annuities 5 6 (17 %) 10 11 (9 %)
Total Gross Annuity Premiums $ 687 $ 1,349 (49 %) $ 1,897 $ 2,744 (31 %)

Components of Pretax Annuity Core Operating Earnings

Three months ended<br>June 30, Pct.<br>Change Six months ended<br>June 30, Pct.<br>Change
2020 2019 2020 2019
Revenues:
Net investment income $ 421 $ 420 - % $ 849 $ 826 3 %
Other income 30 30 - % 65 58 12 %
Total revenues 451 450 - % 914 884 3 %
Costs and Expenses:
Annuity benefits 274 275 - % 561 542 4 %
Acquisition expenses 57 65 (12 %) 122 122 - %
Other expenses 36 35 3 % 68 70 (3 %)
Total costs and expenses 367 375 (2 %) 751 734 2 %
Annuity core operating earnings before items below $ 84 $ 75 12 % $ 163 $ 150 9 %
Amounts previously reported as core — — nm — (11 ) nm
Alternative investments marked to market, net of DAC (42 ) 29 nm (54 ) 55 nm
Pretax Annuity Core Operating Earnings $ 42 $ 104 (60 %) $ 109 $ 194 (44 %)

Supplemental Annuity Information*

Three months ended<br>June 30, Six months ended<br>June 30,
2020 2019 2020 2019
Net interest spread before alternative investments 1.60 % 1.72 % 1.59 % 1.71 %
Net interest spread 1.24 % 2.05 % 1.38 % 2.03 %
Net spread earned before alternative Investments 0.80 % 0.80 % 0.81 % 0.81 %
Net spread earned 0.39 % 1.11 % 0.54 % 1.10 %
* Excludes fixed annuity portion of variable annuity business.
--- ---

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

Page 12

AMERICAN FINANCIAL GROUP, INC.

Notes to Financial Schedules

a) Components of core net operating earnings (in millions):
Three months ended<br>June 30, Six months ended<br>June 30,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2020 2019 2020 2019
Core Operating Earnings before Income Taxes:
P&C insurance segment $ 116 $ 175 $ 297 $ 360
Annuity segment 42 104 109 205
Annuity results previously reported as operating earnings — — — (11 )
Interest and other corporate expenses (43 ) (42 ) (80 ) (85 )
Core operating earnings before income taxes 115 237 326 469
Related income taxes 20 45 60 93
Core net operating earnings $ 95 $ 192 $ 266 $ 376
b) Because AFG had a net loss for the six months ended June 30, 2020, the impact of potential dilutive<br>options (weighted average of 0.59 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<br>believes it is most appropriate to use the fully diluted share data that would have been used if AFG had net earnings for the six months ended June 30, 2020.
--- ---
c) Shareholders’ Equity at June 30, 2020 includes $1.0 billion ($11.62 per share) in unrealized after-tax, after DAC gains on fixed maturities and $47 million ($0.53 per share) in unrealized after-tax, after DAC gains on fixed maturity-related cash flow<br>hedges. Shareholders’ Equity at December 31, 2019 includes $862 million ($9.54 per share) in unrealized after-tax, after DAC gains on fixed maturities and $17 million ($0.19 per share) in<br>unrealized after-tax, after DAC gains on fixed maturity-related cash flow hedges.
--- ---
d) Supplemental Notes:
--- ---
• Property & Transportation includes primarily physical damage and liability coverage<br>for buses and trucks, inland and ocean marine, agricultural-related products and other commercial property coverages.
--- ---
• Specialty Casualty includes primarily excess and surplus, general liability, executive liability,<br>professional liability, umbrella and excess liability, specialty coverages in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance.<br>
--- ---
• Specialty Financial includes risk management insurance programs for lending and leasing institutions<br>(including equipment leasing and collateral and lender-placed mortgage property insurance), surety and fidelity products and trade credit insurance.
--- ---
• Other includes an internal reinsurance facility.
--- ---

Page 13

EX-99.2

Exhibit 99.2

American Financial Group, Inc.<br><br><br><br> <br>Investor Supplement - Second Quarter2020<br> <br><br> <br>August 4, 2020<br><br><br><br> <br>American Financial Group, Inc.<br><br><br>Corporate Headquarters<br><br><br>Great American Insurance Group Tower<br><br><br>301 E Fourth Street<br><br><br>Cincinnati, OH 45202<br><br><br>513 579 6739
American Financial Group, Inc.<br><br><br>Table of Contents—Investor Supplement—Second Quarter 2020
---
Section Page
--- --- ---
Table of Contents—Investor Supplement—Second Quarter 2020 2
Financial Highlights 3
Summary of Earnings 4
Earnings Per Share Summary 5
Property and Casualty Insurance Segment
Property and Casualty Insurance—Summary Underwriting Results (GAAP) 6
Specialty—Underwriting Results (GAAP) 7
Property and Transportation—Underwriting Results (GAAP) 8
Specialty Casualty—Underwriting Results (GAAP) 9
Specialty Financial—Underwriting Results (GAAP) 10
Other Specialty—Underwriting Results (GAAP) 11
Annuity Segment
Annuity Earnings 12a
Annuity Earnings—Alternative View 12b
Detail of Annuity Benefits Expense 13
Core Net Spread on Fixed Annuities 14
Statutory Annuity Premiums 15
Fixed Annuity Benefits Accumulated (GAAP) 16
Guaranteed Minimum Interest Rate Analysis 17
Annuity Non—Core Earnings (Losses) 18
Reconciliation from Core to GAAP Annuity Pretax Earnings 19
Consolidated Balance Sheet / Book Value / Debt
Consolidated Balance Sheet 20
Book Value Per Share and Price / Book Summary 21
Capitalization 22
Additional Supplemental Information 23
Consolidated Investment Supplement
Total Cash and Investments 24
Net Investment Income 25
Insurance Companies’ Alternative Investments 26
Fixed Maturities—By Security Type—AFG Consolidated 27
Fixed Maturities—By Security Type Portfolio 28
Fixed Maturities—Credit Rating 29
Mortgage—Backed Securities—AFG Consolidated 30
Mortgage—Backed Securities Portfolio 31
Appendix
A. Components of Core Operating Earnings As Reported 32
B. Fixed Maturities by Credit Rating & NAIC Designation by Type 6/30/2020 33
C. Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2019 34
D. Corporate Securities by Credit Rating & NAIC Designation by Industry<br>6/30/2020 35
E. Corporate Securities by Credit Rating & NAIC Designation by Industry<br>12/31/2019 36
F. Asset—Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br>6/30/2020 37
G. Asset—Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br>12/31/2019 38
H. Real Estate Exposure 6/30/2020 39
I. Real Estate Exposure 12/31/2019 40

Page 2

American Financial Group, Inc.<br><br><br>Financial Highlights<br> <br>(in millions, except per share<br>information)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Highlights
Net earnings (loss) $ 177 $ (301 ) $ 211 $ 147 $ 210 $ (124 ) $ 539
Core net operating earnings 95 171 203 205 192 266 376
Total assets 70,867 67,643 70,130 69,067 67,697 70,867 67,697
Adjusted shareholders’ equity (a) 5,049 4,987 5,390 5,376 5,260 5,049 5,260
Property and Casualty net written premiums 1,123 1,165 1,313 1,618 1,264 2,288 2,411
Gross Annuity statutory premiums 687 1,210 1,139 1,077 1,349 1,897 2,744
Net Annuity statutory premiums 609 1,210 1,139 1,077 1,349 1,819 2,744
Per share data
Diluted earnings (loss) per share $ 1.97 $ (3.34 ) $ 2.31 $ 1.62 $ 2.31 $ (1.38 ) $ 5.94
Core net operating earnings per share 1.05 1.88 2.22 2.25 2.12 2.94 4.14
Adjusted book value per share (a) 56.95 55.52 59.70 59.65 58.49 56.95 58.49
Cash dividends per common share 0.4500 0.4500 2.2500 0.4000 1.9000 0.9000 2.3000
Financial ratios
Annualized return on equity (b) 14.1 % (23.1 %) 15.6 % 11.0 % 16.0 % (4.8 %) 21.0 %
Annualized core operating return on equity (b) 7.5 % 13.2 % 15.0 % 15.3 % 14.7 % 10.3 % 14.6 %
Property and Casualty combined ratio—Specialty:
Loss & LAE ratio 62.6 % 58.5 % 63.2 % 63.1 % 60.2 % 60.5 % 59.6 %
Underwriting expense ratio 32.6 % 33.7 % 30.3 % 30.9 % 34.8 % 33.2 % 34.2 %
Combined ratio—Specialty 95.2 % 92.2 % 93.5 % 94.0 % 95.0 % 93.7 % 93.8 %
Net interest spread on fixed annuities - before alternative investments marked to market 1.60 % 1.59 % 1.71 % 1.65 % 1.72 % 1.59 % 1.71 %
Alternative investments marked to market (0.36 %) (0.06 %) 0.23 % 0.28 % 0.33 % (0.21 %) 0.32 %
Net interest spread on fixed annuities—including alternative investments marked to<br>market 1.24 % 1.53 % 1.94 % 1.93 % 2.05 % 1.38 % 2.03 %
Net spread earned on fixed annuities:
Core operating—before alternative investments marked to market 0.80 % 0.81 % 0.87 % 0.80 % 0.80 % 0.81 % 0.81 %
Alternative investments marked to market, net of DAC (0.41 %) (0.12 %) 0.20 % 0.26 % 0.31 % (0.27 %) 0.29 %
Core operating 0.39 % 0.69 % 1.07 % 1.06 % 1.11 % 0.54 % 1.10 %
(a) Excludes unrealized gains related to fixed maturity investments, a reconciliation to the GAAP measure is on<br>page 21.
--- ---
(b) Excludes accumulated other comprehensive income.
--- ---

Page 3

American Financial Group, Inc.<br><br><br>Summary of Earnings<br> <br>($ in millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Property and Casualty Insurance
Underwriting profit $ 52 $ 88 $ 88 $ 72 $ 59 $ 140 $ 146
Net investment income 72 99 120 124 124 171 228
Other expense (8 ) (6 ) (9 ) (2 ) (8 ) (14 ) (14 )
Property and Casualty Insurance operating earnings 116 181 199 194 175 297 360
Annuity operating earnings 42 67 104 100 104 109 194
Interest expense of parent holding companies (23 ) (17 ) (18 ) (17 ) (17 ) (40 ) (33 )
Other expense (20 ) (20 ) (32 ) (22 ) (25 ) (40 ) (52 )
Pretax core operating earnings 115 211 253 255 237 326 469
Income tax expense 20 40 50 50 45 60 93
Core net operating earnings **** 95 **** **** 171 **** **** 203 **** **** 205 **** **** 192 **** **** 266 **** **** 376 ****
Non-core items, net of tax:
Realized gains (losses) on securities 161 (435 ) 51 (14 ) 45 (274 ) 190
Annuity non-core earnings (losses) (47 ) (30 ) 19 (21 ) (27 ) (77 ) (27 )
Special A&E charges:
Property and Casualty Insurance run-off<br>operations — — — (14 ) — — —
Former Railroad and Manufacturing operations — — — (9 ) — — —
Neon exited lines (32 ) (7 ) (58 ) — — (39 ) —
Other non-core items — — (4 ) — — — —
Net earnings (loss) $ 177 **** $ (301 ) $ 211 **** $ 147 **** $ 210 **** $ (124 ) $ 539 ****

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 Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Core net operating earnings $ 95 **** $ 171 **** $ 203 **** $ 205 **** $ 192 **** $ 266 **** $ 376 ****
Net earnings (loss) $ 177 **** $ (301 ) $ 211 **** $ 147 **** $ 210 **** $ (124 ) $ 539 ****
Average number of diluted shares—core 89.997 91.138 91.274 91.137 90.981 90.567 90.839
Average number of diluted shares—net 89.997 90.295 91.274 91.137 90.981 89.980 90.839
Diluted earnings per share:
Core net operating earnings per share $ 1.05 **** $ 1.88 **** $ 2.22 **** $ 2.25 **** $ 2.12 **** $ 2.94 **** $ 4.14 ****
Realized gains (losses) on securities 1.80 (4.81 ) 0.56 (0.15 ) 0.48 (3.03 ) 2.09
Annuity non-core earnings (losses) (0.52 ) (0.34 ) 0.21 (0.23 ) (0.29 ) (0.86 ) (0.29 )
Special A&E charges:
Property and Casualty Insurance run-off<br>operations — — — (0.15 ) — — —
Former Railroad and Manufacturing operations — — — (0.10 ) — — —
Neon exited lines (0.36 ) (0.07 ) (0.64 ) — — (0.43 ) —
Other non-core items — — (0.04 ) — — — —
Diluted earnings (loss) per share $ 1.97 **** $ (3.34 ) $ 2.31 **** $ 1.62 **** $ 2.31 **** $ (1.38 ) $ 5.94 ****

Page 5

American Financial Group, Inc.<br><br><br>Property and Casualty Insurance—Summary Underwriting Results (GAAP)<br><br><br>($ in millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Property and Transportation $ 33 $ 27 $ (2 ) $ 38 $ 4 $ 60 $ 43
Specialty Casualty 27 52 69 23 47 79 83
Specialty Financial — 17 32 26 21 17 34
Other Specialty (6 ) (7 ) (10 ) 1 (12 ) (13 ) (12 )
Underwriting profit—Specialty **** 54 **** **** 89 **** **** 89 **** **** 88 **** **** 60 **** **** 143 **** **** 148 ****
Other core charges, included in loss and LAE (2 ) (1 ) (1 ) (16 ) (1 ) (3 ) (2 )
Underwriting profit—Core **** 52 **** **** 88 **** **** 88 **** **** 72 **** **** 59 **** **** 140 **** **** 146 ****
Special A&E charges, included in loss and LAE — — — (18 ) — — —
Neon exited lines (43 ) (1 ) (76 ) — — (44 ) —
Underwriting profit (loss)—Property and Casualty Insurance $ 9 **** $ 87 **** $ 12 **** $ 54 **** $ 59 **** $ 96 **** $ 146 ****
Included in results above:
COVID-19 related losses $ 105 $ 10 $ — $ — $ — $ 115 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ 1 $ — $ — $ — $ —
Catastrophe loss 26 9 14 22 12 35 24
Total current accident year catastrophe losses $ 26 $ 9 $ 15 $ 22 $ 12 $ 35 $ 24
Prior year loss reserve development (favorable) / adverse $ (77) $ (42 ) $ (45 ) $ (12 ) $ (41 ) $ (119 ) $ (86 )
Combined ratio:
Property and Transportation 91.7 % 92.9 % 100.4 % 93.5 % 99.1 % 92.3 % 94.2 %
Specialty Casualty 94.9 % 90.7 % 89.7 % 96.5 % 92.5 % 92.8 % 93.4 %
Specialty Financial 100.4 % 89.1 % 79.6 % 83.7 % 85.6 % 94.4 % 88.6 %
Other Specialty 114.2 % 117.7 % 122.5 % 98.5 % 135.1 % 115.8 % 116.7 %
Combined ratio—Specialty **** 95.2 % **** 92.2 % **** 93.5 % **** 94.0 % **** 95.0 % **** 93.7 % **** 93.8 %
Other core charges 0.2 % 0.1 % 0.1 % 1.1 % 0.1 % 0.1 % 0.1 %
Neon exited lines charge 3.8 % 0.5 % 5.5 % 0.0 % 0.0 % 2.2 % 0.0 %
Special A&E charges 0.0 % 0.0 % 0.0 % 1.2 % 0.0 % 0.0 % 0.0 %
Combined ratio **** 99.2 % **** 92.8 % **** 99.1 % **** 96.3 % **** 95.1 % **** 96.0 % **** 93.9 %
P&C combined ratio excl. COVID-19 related losses,<br>catastrophe losses, and prior year loss reserve development 94.8 % 94.6 % 101.4 % 95.6 % 97.6 % 94.7 % 96.5 %
Loss and LAE components—property and casualty insurance
Current accident year, excluding COVID-19 related and<br>catastrophe losses 60.7 % 60.3 % 66.0 % 64.6 % 62.7 % 60.5 % 62.3 %
COVID-19 related losses 8.8 % 0.8 % 0.0 % 0.0 % 0.0 % 4.8 % 0.0 %
Current accident year catastrophe losses 2.1 % 0.8 % 1.0 % 1.6 % 0.9 % 1.5 % 1.0 %
Prior accident year loss reserve development (6.5 %) (3.4 %) (0.4 %) (0.8 %) (3.3 %) (5.0 %) (3.6 %)
Loss and LAE ratio **** 65.1 % **** 58.5 % **** 66.6 % **** 65.4 % **** 60.3 % **** 61.8 % **** 59.7 %

Page 6

American Financial Group, Inc.<br><br><br>Specialty—Underwriting Results (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Gross written premiums $ 1,539 $ 1,526 $ 1,749 $ 2,351 $ 1,664 $ 3,065 $ 3,199
Ceded reinsurance premiums (416 ) (361 ) (436 ) (733 ) (400 ) (777 ) (788 )
Net written premiums 1,123 1,165 1,313 1,618 1,264 2,288 2,411
Change in unearned premiums — (27 ) 57 (176 ) (64 ) (27 ) (38 )
Net earned premiums 1,123 1,138 1,370 1,442 1,200 2,261 2,373
Loss and LAE 703 666 865 910 722 1,369 1,413
Underwriting expense 366 383 416 444 418 749 812
Underwriting profit $ 54 **** $ 89 **** $ 89 **** $ 88 **** $ 60 **** $ 143 **** $ 148 ****
Included in results above:
COVID-19 related losses $ 85 $ 10 $ — $ — $ — $ 95 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ 1 $ — $ — $ — $ —
Catastrophe loss 26 9 14 22 12 35 24
Total current accident year catastrophe losses $ 26 $ 9 $ 15 $ 22 $ 12 $ 35 $ 24
Prior year loss reserve development (favorable) / adverse $ (85 ) $ (48 ) $ (53 ) $ (46 ) $ (42 ) $ (133 ) $ (88 )
Combined ratio:
Loss and LAE ratio 62.6 % 58.5 % 63.2 % 63.1 % 60.2 % 60.5 % 59.6 %
Underwriting expense ratio 32.6 % 33.7 % 30.3 % 30.9 % 34.8 % 33.2 % 34.2 %
Combined ratio **** 95.2 % **** 92.2 % **** 93.5 % **** 94.0 % **** 95.0 % **** 93.7 % **** 93.8 %
Specialty combined ratio excl. COVID-19 related losses,<br>catastrophe losses, and prior year loss reserve development 92.9 % 94.7 % 96.3 % 95.5 % 97.5 % 93.8 % 96.5 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and<br>catastrophe losses 60.3 % 61.0 % 66.0 % 64.6 % 62.7 % 60.6 % 62.3 %
COVID-19 related losses 7.6 % 0.9 % 0.0 % 0.0 % 0.0 % 4.2 % 0.0 %
Current accident year catastrophe losses 2.3 % 0.8 % 1.0 % 1.6 % 0.9 % 1.5 % 1.0 %
Prior accident year loss reserve development (7.6 %) (4.2 %) (3.8 %) (3.1 %) (3.4 %) (5.8 %) (3.7 %)
Loss and LAE ratio **** 62.6 % **** 58.5 % **** 63.2 % **** 63.1 % **** 60.2 % **** 60.5 % **** 59.6 %

Page 7

American Financial Group, Inc.<br><br><br>Property and Transportation—Underwriting Results (GAAP)<br><br><br>($ in millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Gross written premiums $ 611 $ 494 $ 628 $ 1,113 $ 579 $ 1,105 $ 1,018
Ceded reinsurance premiums (185 ) (108 ) (179 ) (452 ) (157 ) (293 ) (252 )
Net written premiums 426 386 449 661 422 812 766
Change in unearned premiums (36 ) — 56 (78 ) (43 ) (36 ) (26 )
Net earned premiums 390 386 505 583 379 776 740
Loss and LAE 239 237 392 421 259 476 484
Underwriting expense 118 122 115 124 116 240 213
Underwriting profit $ 33 **** $ 27 **** $ (2 ) $ 38 **** $ 4 **** $ 60 **** $ 43 ****
Included in results above:
COVID-19 related losses $ 3 $ 3 $ — $ — $ — $ 6 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ — $ — $ — $ — $ —
Catastrophe loss 15 8 7 8 8 23 17
Total current accident year catastrophe losses $ 15 $ 8 $ 7 $ 8 $ 8 $ 23 $ 17
Prior year loss reserve development (favorable) / adverse $ (28) $ (24 ) $ (18 ) $ (17 ) $ (6 ) $ (52 ) $ (32 )
Combined ratio:
Loss and LAE ratio 61.3 % 61.4 % 77.8 % 72.1 % 68.4 % 61.4 % 65.4 %
Underwriting expense ratio 30.4 % 31.5 % 22.6 % 21.4 % 30.7 % 30.9 % 28.8 %
Combined ratio **** 91.7 % **** 92.9 % **** 100.4 % **** 93.5 % **** 99.1 % **** 92.3 % **** 94.2 %
Combined ratio excl. COVID-19 related losses, catastrophe<br>losses, and prior year loss reserve development 94.3 % 96.2 % 102.5 % 94.9 % 98.7 % 95.3 % 96.3 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and<br>catastrophe losses 63.9 % 64.7 % 79.9 % 73.5 % 68.0 % 64.4 % 67.5 %
COVID-19 related losses 0.8 % 0.6 % 0.0 % 0.0 % 0.0 % 0.7 % 0.0 %
Current accident year catastrophe losses 3.8 % 2.2 % 1.4 % 1.4 % 2.0 % 3.0 % 2.3 %
Prior accident year loss reserve development (7.2 %) (6.1 %) (3.5 %) (2.8 %) (1.6 %) (6.7 %) (4.4 %)
Loss and LAE ratio **** 61.3 % **** 61.4 % **** 77.8 % **** 72.1 % **** 68.4 % **** 61.4 % **** 65.4 %

Page 8

American Financial Group, Inc.<br><br><br>Specialty Casualty—Underwriting Results (GAAP)<br><br><br>($ in millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Gross written premiums $ 752 $ 849 $ 929 $ 1,031 $ 896 $ 1,601 $ 1,808
Ceded reinsurance premiums (241 ) (263 ) (260 ) (287 ) (234 ) (504 ) (520 )
Net written premiums 511 586 669 744 662 1,097 1,288
Change in unearned premiums 36 (30 ) 7 (86 ) (28 ) 6 (25 )
Net earned premiums 547 556 676 658 634 1,103 1,263
Loss and LAE 367 340 402 416 380 707 768
Underwriting expense 153 164 205 219 207 317 412
Underwriting profit $ 27 **** $ 52 **** $ 69 **** $ 23 **** $ 47 **** $ 79 **** $ 83 ****
Included in results above:
COVID-19 related losses $ 52 $ 7 $ — $ — $ — $ 59 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ 1 $ — $ — $ — $ —
Catastrophe loss 6 — 5 10 1 6 2
Total current accident year catastrophe losses $ 6 $ — $ 6 $ 10 $ 1 $ 6 $ 2
Prior year loss reserve development (favorable) / adverse $ (51) $ (24 ) $ (25 ) $ (19 ) $ (31 ) $ (75 ) $ (44 )
Combined ratio:
Loss and LAE ratio 67.1 % 61.1 % 59.4 % 63.1 % 60.0 % 64.1 % 60.8 %
Underwriting expense ratio 27.8 % 29.6 % 30.3 % 33.4 % 32.5 % 28.7 % 32.6 %
Combined ratio **** 94.9 % **** 90.7 % **** 89.7 % **** 96.5 % **** 92.5 % **** 92.8 % **** 93.4 %
Combined ratio excl. COVID-19 related losses, catastrophe<br>losses, and prior year loss reserve development 93.8 % 93.6 % 92.7 % 97.8 % 97.1 % 93.7 % 96.8 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and<br>catastrophe losses 66.0 % 64.0 % 62.4 % 64.4 % 64.6 % 65.0 % 64.2 %
COVID-19 related losses 9.5 % 1.3 % 0.0 % 0.0 % 0.0 % 5.3 % 0.0 %
Current accident year catastrophe losses 0.9 % 0.0 % 0.8 % 1.6 % 0.1 % 0.5 % 0.1 %
Prior accident year loss reserve development (9.3 %) (4.2 %) (3.8 %) (2.9 %) (4.7 %) (6.7 %) (3.5 %)
Loss and LAE ratio **** 67.1 % **** 61.1 % **** 59.4 % **** 63.1 % **** 60.0 % **** 64.1 % **** 60.8 %

Page 9

American Financial Group, Inc.<br><br><br>Specialty Financial—Underwriting Results (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Gross written premiums $ 176 $ 183 $ 192 $ 207 $ 189 $ 359 $ 373
Ceded reinsurance premiums (37 ) (34 ) (36 ) (40 ) (40 ) (71 ) (79 )
Net written premiums 139 149 156 167 149 288 294
Change in unearned premiums 5 7 (4 ) (6 ) 2 12 3
Net earned premiums 144 156 152 161 151 300 297
Loss and LAE 65 59 40 47 49 124 105
Underwriting expense 79 80 80 88 81 159 158
Underwriting profit $ — **** $ 17 **** $ 32 **** $ 26 **** $ 21 **** $ 17 **** $ 34 ****
Included in results above:
COVID-19 related losses $ 30 $ — $ — $ — $ — $ 30 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ — $ — $ — $ — $ —
Catastrophe loss 5 1 2 3 3 6 5
Total current accident year catastrophe losses $ 5 $ 1 $ 2 $ 3 $ 3 $ 6 $ 5
Prior year loss reserve development (favorable) / adverse $ (11 ) $ (2 ) $ (14 ) $ (9 ) $ (9 ) $ (13 ) $ (15 )
Combined ratio:
Loss and LAE ratio 44.9 % 38.0 % 26.1 % 29.7 % 32.3 % 41.2 % 35.3 %
Underwriting expense ratio 55.5 % 51.1 % 53.5 % 54.0 % 53.3 % 53.2 % 53.3 %
Combined ratio **** 100.4 % **** 89.1 % **** 79.6 % **** 83.7 % **** 85.6 % **** 94.4 % **** 88.6 %
Combined ratio excl. COVID-19 related losses, catastrophe<br>losses, and prior year loss reserve development 83.7 % 89.5 % 87.7 % 87.2 % 89.7 % 86.7 % 92.1 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and<br>catastrophe losses 28.2 % 38.4 % 34.2 % 33.2 % 36.4 % 33.5 % 38.8 %
COVID-19 related losses 21.1 % 0.1 % 0.0 % 0.0 % 0.0 % 10.2 % 0.0 %
Current accident year catastrophe losses 3.6 % 0.6 % 1.1 % 2.0 % 1.8 % 2.0 % 1.6 %
Prior accident year loss reserve development (8.0 %) (1.1 %) (9.2 %) (5.5 %) (5.9 %) (4.5 %) (5.1 %)
Loss and LAE ratio **** 44.9 % **** 38.0 % **** 26.1 % **** 29.7 % **** 32.3 % **** 41.2 % **** 35.3 %

Page 10

American Financial Group, Inc.<br> <br>OtherSpecialty—Underwriting Results (GAAP)<br> <br>($ in millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Gross written premiums $ — $ — $ — $ — $ — $ — $ —
Ceded reinsurance premiums 47 44 39 46 31 91 63
Net written premiums 47 44 39 46 31 91 63
Change in unearned premiums (5 ) (4 ) (2 ) (6 ) 5 (9 ) 10
Net earned premiums 42 40 37 40 36 82 73
Loss and LAE 32 30 31 26 34 62 56
Underwriting expense 16 17 16 13 14 33 29
Underwriting profit (loss) $ (6 ) $ (7 ) $ (10 ) $ 1 **** $ (12 ) $ (13 ) $ (12 )
Included in results above:
COVID-19 related losses $ — $ — $ — $ — $ — $ — $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ — $ — $ — $ — $ —
Catastrophe loss — — — 1 — — —
Total current accident year catastrophe losses $ — $ — $ — $ 1 $ — $ — $ —
Prior year loss reserve development (favorable) / adverse $ 5 $ 2 $ 4 $ (1 ) $ 4 $ 7 $ 3
Combined ratio:
Loss and LAE ratio 76.9 % 73.9 % 83.5 % 64.0 % 96.0 % 75.4 % 77.6 %
Underwriting expense ratio 37.3 % 43.8 % 39.0 % 34.5 % 39.1 % 40.4 % 39.1 %
Combined ratio **** 114.2 % **** 117.7 % **** 122.5 % **** 98.5 % **** 135.1 % **** 115.8 % **** 116.7 %
Combined ratio excl. COVID-19 related losses, catastrophe<br>losses, and prior year loss reserve development 100.3 % 113.4 % 113.4 % 99.0 % 123.4 % 106.6 % 111.9 %

Page 11

American Financial Group, Inc.<br><br><br>Annuity Earnings<br> <br>($ in millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Net investment income $ 421 $ 428 $ 435 $ 421 $ 420 $ 849 $ 826
Alternative investments marked to market through core operating earnings (37 ) (6 ) 23 27 31 (43 ) 60
Guaranteed withdrawal benefit fees 17 17 17 17 17 34 33
Policy charges and other miscellaneous income (a) 13 18 13 14 13 31 25
Total revenues 414 457 488 479 481 871 944
Annuity benefits (a) 274 287 285 280 275 561 542
Acquisition expenses 62 71 65 64 67 133 127
Other expenses 36 32 34 35 35 68 70
Total costs and expenses 372 390 384 379 377 762 739
Pretax Annuity core operating earnings $ 42 **** $ 67 **** $ 104 $ 100 $ 104 $ 109 **** $ 205 ****
Other amounts previously reported as core operating, net (b) n/a n/a n/a n/a n/a n/a (11 )
Pretax Annuity core operating earnings—as reported $ 42 **** $ 67 **** $ 104 $ 100 $ 104 $ 109 **** $ 194 ****
Components of Pretax Annuity Core Operating Earnings
Pretax annuity core operating earnings before items below $ 84 $ 79 $ 84 $ 75 $ 75 $ 163 $ 150
Other amounts previously reported as core operating, net (b) n/a n/a n/a n/a n/a n/a (11 )
Pretax annuity core operating earnings before alternative investments marked to market 84 79 84 75 75 163 139
Alternative investments marked to market, net of DAC (42 ) (12 ) 20 25 29 (54 ) 55
Pretax Annuity core operating earnings—as reported $ 42 **** $ 67 **** $ 104 $ 100 $ 104 $ 109 **** $ 194 ****
(a) Gains received on options in excess of index credits to policyholder are recorded through annuity benefits for<br>GAAP. For the investor supplement presentation, these gains are shown in policy charges and other miscellaneous income.
--- ---
(b) “Other” primarily reflects (1) the impact of fair value accounting, (2) the impact of<br>changes in the stock market on the liability for guaranteed benefits and DAC, and (3) unlocking.
--- ---

Page 12a

American Financial Group, Inc.<br><br><br>Annuity Earnings—Alternative View<br> <br>($ in<br>millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Net investment income (excluding alternative investments marked to market) $ 421 $ 428 $ 435 $ 421 $ 420 $ 849 $ 826
Guaranteed withdrawal benefit fees 17 17 17 17 17 34 33
Policy charges and other miscellaneous income (a) 13 18 13 14 13 31 25
Total revenues 451 463 465 452 450 914 884
Annuity benefits (a) 274 287 285 280 275 561 542
Acquisition expenses (excluding alternative investments marked to market) 57 65 62 62 65 122 122
Other expenses 36 32 34 35 35 68 70
Total costs and expenses 367 384 381 377 375 751 734
Pretax Annuity core operating earnings (excluding alternative investments marked tomarket) **** 84 **** **** 79 **** **** 84 **** 75 **** 75 **** 163 **** **** 150 ****
Other amounts previously reported as core operating, net (b) n/a n/a n/a n/a n/a n/a (11 )
Pretax annuity core operating earnings before alternative marked to marketinvestments **** 84 **** **** 79 **** **** 84 **** 75 **** 75 **** 163 **** **** 139 ****
Alternative investments marked to market, net of DAC (42 ) (12 ) 20 25 29 (54 ) 55
Pretax Annuity core operating earnings—as reported $ 42 $ 67 **** $ 104 $ 100 $ 104 $ 109 **** $ 194 ****
(a) Gains received on options in excess of index credits to policyholder are recorded through annuity benefits for<br>GAAP. For the investor supplement presentation, these gains are shown in policy charges and other miscellaneous income.
--- ---
(b) “Other” primarily reflects (1) the impact of fair value accounting, (2) the impact of<br>changes in the stock market on the liability for guaranteed benefits and DAC, and (3) unlocking.
--- ---

Page 12b

American Financial Group, Inc.<br><br><br>Detail of Annuity Benefits Expense<br> <br>($ in<br>millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Detail of annuity benefits expense:
Cost of funds:
Amortization of options (a) $ 148 $ 150 $ 150 $ 149 $ 146 $ 298 $ 287
Traditional fixed annuities 64 63 62 62 61 127 120
Fixed component of fixed-indexed annuities 26 25 25 24 23 51 45
Immediate annuities 6 6 6 6 6 12 12
Pension risk transfer 4 4 3 2 1 8 2
Federal Home Loan Bank 3 5 6 7 7 8 14
Total cost of funds 251 253 252 250 244 504 480
Guaranteed withdrawal benefit reserve 17 25 24 21 20 42 39
Amortization of sales inducements 2 2 3 3 4 4 8
Change in expected death and annuitization reserve and other 4 7 6 6 7 11 15
Total other annuity benefits 23 34 33 30 31 57 62
Total annuity benefits expense $ 274 **** $ 287 **** $ 285 **** $ 280 **** $ 275 **** $ 561 **** $ 542 ****
(a)   Amortizaton of options, net of DAC and reserve offsets:
Amortization of options $ 148 $ 150 $ 150 $ 149 $ 146 $ 298 $ 287
DAC and reserve offsets (77 ) (77 ) (77 ) (74 ) (74 ) (154 ) (146 )
Amortization of options, net of DAC and reserve offsets $ 71 $ 73 $ 73 $ 75 $ 72 $ 144 $ 141

Page 13

American Financial Group, Inc.<br><br><br>Core Net Spread on Fixed Annuities<br> <br>($ in<br>millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Average fixed annuity investments (at amortized cost) (a) $ 40,570 $ 40,073 $ 39,316 $ 38,650 $ 37,907 $ 40,322 $ 37,449
Average annuity benefits accumulated 40,601 40,139 39,615 38,946 38,202 40,370 37,640
Annuity benefits accumulated in excess of investments (a) $ (31 ) $ (66 ) $ (299 ) $ (296 ) $ (295 ) $ (48 ) $ (191 )
As % of average annuity benefits accumulated (except as noted)
Net investment income (excluding alternative investments marked to market) (as % of<br>investments) 4.13 % 4.25 % 4.40 % 4.34 % 4.40 % 4.19 % 4.39 %
Cost of funds (2.47 %) (2.52 %) (2.54 %) (2.57 %) (2.55 %) (2.50 %) (2.55 %)
Other annuity benefits, net of guaranteed withdrawal benefit fees (0.06 %) (0.14 %) (0.15 %) (0.12 %) (0.13 %) (0.10 %) (0.13 %)
Core net interest spread on fixed annuities **** 1.60 % **** 1.59 % **** 1.71 % **** 1.65 % **** 1.72 % **** 1.59 % **** 1.71 %
Policy charges and other miscellaneous income 0.11 % 0.15 % 0.11 % 0.12 % 0.11 % 0.13 % 0.10 %
Acquisition expenses (excluding alternative investments marked to market) (0.56 %) (0.61 %) (0.62 %) (0.63 %) (0.66 %) (0.58 %) (0.63 %)
Other expenses (0.35 %) (0.32 %) (0.33 %) (0.34 %) (0.37 %) (0.33 %) (0.37 %)
Core net spread earned on fixed annuities (excluding alternative investments marked tomarket) **** 0.80 % **** 0.81 % **** 0.87 % **** 0.80 % **** 0.80 % **** 0.81 % **** 0.81 %
Alternative investments marked to market, net of DAC **** (0.41 %) **** (0.12 %) **** 0.20 % **** 0.26 % **** 0.31 % **** (0.27 %) **** 0.29 %
Core net spread earned on fixed annuities **** 0.39 % **** 0.69 % **** 1.07 % **** 1.06 % **** 1.11 % **** 0.54 % **** 1.10 %
Net spread earned on items previously reported as core operating **** n/a **** **** n/a **** **** n/a **** **** n/a **** **** n/a **** **** n/a **** **** (0.06 %)
Core net spread earned on fixed annuities—as reported **** 0.39 % **** 0.69 % **** 1.07 % **** 1.06 % **** 1.11 % **** 0.54 % **** 1.04 %
Average annuity benefits accumulated $ 40,601 $ 40,139 $ 39,615 $ 38,946 $ 38,202 $ 40,370 $ 37,640
Net spread earned on fixed annuities (excluding alternative investments marked to<br>market)—core 0.80 % 0.81 % 0.87 % 0.80 % 0.80 % 0.81 % 0.81 %
Earnings on fixed annuity benefits accumulated—core $ 82 **** $ 81 **** $ 85 **** $ 78 **** $ 77 **** $ 163 **** $ 151 ****
Annuity benefits accumulated in excess of investments $ (31 ) $ (66 ) $ (299 ) $ (296 ) $ (295 ) $ (48 ) $ (191 )
Net investment income (excluding alternative investments marked to market) (as % of<br>investments) 4.13 % 4.25 % 4.40 % 4.34 % 4.40 % 4.19 % 4.39 %
Earnings/(loss) on annuity benefits accumulated in excess of investments $ — $ (1 ) $ (3 ) $ (3 ) $ (3 ) $ (1 ) $ (4 )
Variable annuity earnings **** 2 **** **** (1 ) **** 2 **** **** — **** **** 1 **** **** 1 **** **** 3 ****
Pretax Annuity core operating earnings (excluding alternative investments marked tomarket) **** 84 **** **** 79 **** **** 84 **** **** 75 **** **** 75 **** **** 163 **** **** 150 ****
Alternative investments marked to market, net of DAC **** (42 ) **** (12 ) **** 20 **** **** 25 **** **** 29 **** **** (54 ) **** 55 ****
Pretax Annuity core operating earnings **** 42 **** **** 67 **** **** 104 **** **** 100 **** **** 104 **** **** 109 **** **** 205 ****
Other amounts previously reported as core operating, net **** n/a **** **** n/a **** **** n/a **** **** n/a **** **** n/a **** **** n/a **** **** (11 )
Pretax Annuity core operating earnings—as reported $ 42 **** $ 67 **** $ 104 **** $ 100 **** $ 104 **** $ 109 **** $ 194 ****
(a) Excludes non-investment assets such as deferred acquisition costs, FIA<br>options, accrued investment income and company owned life insurance.
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Page 14

American Financial Group, Inc.<br><br><br>Statutory Annuity Premiums<br> <br>($ in millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Financial institutions single premium annuities—indexed $ 258 $ 424 $ 359 $ 325 $ 429 $ 682 $ 853
Financial institutions single premium annuities—fixed 98 287 270 302 313 385 657
Retail single premium annuities—indexed 138 172 170 198 274 310 575
Retail single premium annuities—fixed 31 25 25 30 36 56 65
Broker dealer single premium annuities—indexed 100 138 107 134 189 238 416
Broker dealer single premium annuities—fixed 2 17 9 9 8 19 14
Pension risk transfer (PRT) 23 103 158 39 50 126 60
Education market—fixed and indexed annuities 32 39 36 35 44 71 93
Subtotal fixed annuity premiums **** 682 **** **** 1,205 **** 1,134 **** 1,072 **** 1,343 **** 1,887 **** **** 2,733
Variable annuities 5 5 5 5 6 10 11
Total gross annuity premiums $ 687 **** $ 1,210 $ 1,139 $ 1,077 $ 1,349 $ 1,897 **** $ 2,744
Less: Reinsurance (78 ) — — — — (78 ) —
Total net annuity premiums $ 609 **** $ 1,210 $ 1,139 $ 1,077 $ 1,349 $ 1,819 **** $ 2,744
Summary by Distribution Channel:
Financial institutions $ 356 $ 711 $ 629 $ 627 $ 742 $ 1,067 $ 1,510
Retail 169 197 195 228 310 366 640
Broker dealer 102 155 116 143 197 257 430
Other 60 147 199 79 100 207 164
Total gross annuity premiums $ 687 **** $ 1,210 $ 1,139 $ 1,077 $ 1,349 $ 1,897 **** $ 2,744
Less: Reinsurance (78 ) — — — — (78 ) —
Total net annuity premiums $ 609 **** $ 1,210 $ 1,139 $ 1,077 $ 1,349 $ 1,819 **** $ 2,744
Summary by Product Type:
Total indexed $ 512 $ 753 $ 655 $ 675 $ 917 $ 1,265 $ 1,897
Total fixed 170 452 479 397 426 622 836
Variable 5 5 5 5 6 10 11
Total gross annuity premiums $ 687 **** $ 1,210 $ 1,139 $ 1,077 $ 1,349 $ 1,897 **** $ 2,744
Less: Reinsurance (78 ) — — — — (78 ) —
Total net annuity premiums $ 609 **** $ 1,210 $ 1,139 $ 1,077 $ 1,349 $ 1,819 **** $ 2,744

Page 15

American Financial Group, Inc.<br> <br>FixedAnnuity Benefits Accumulated (GAAP)<br> <br>($ in millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Beginning fixed annuity reserves $ 40,260 $ 40,018 $ 39,212 $ 38,680 $ 37,724 $ 40,018 $ 36,431
Premiums 682 1,205 1,134 1,072 1,343 1,887 2,733
Federal Home Loan Bank (“FHLB”) advances (paydowns) (40 ) 200 — — — 160 —
Surrenders, benefits and other withdrawals (768 ) (794 ) (829 ) (808 ) (862 ) (1,562 ) (1,623 )
Interest and other annuity benefit expenses:
Cost of funds 251 253 252 250 244 504 480
Embedded derivative marked to market 601 (647 ) 276 111 251 (46 ) 713
Unlockings — — — (75 ) — — —
Other (44 ) 25 (27 ) (18 ) (20 ) (19 ) (54 )
Ending fixed annuity reserves $ 40,942 **** $ 40,260 **** $ 40,018 **** $ 39,212 **** $ 38,680 **** $ 40,942 **** $ 38,680 ****
Reconciliation to annuity benefits accumulated:
Ending fixed annuity reserves $ 40,942 $ 40,260 $ 40,018 $ 39,212 $ 38,680 $ 40,942 $ 38,680
Impact of unrealized investment gains on reserves 285 38 225 269 192 285 192
Fixed component of variable annuities 165 165 163 170 172 165 172
Annuity benefits accumulated per balance sheet $ 41,392 **** $ 40,463 **** $ 40,406 **** $ 39,651 **** $ 39,044 **** $ 41,392 **** $ 39,044 ****
Annualized surrenders and other withdrawals as a % of beginning reserves 7.6 % 7.9 % 8.5 % 8.4 % 9.1 % 7.8 % 8.9 %
Rider reserves included in ending fixed annuity reserves above $ 680 **** $ 690 **** $ 625 **** $ 611 **** $ 491 **** $ 680 **** $ 491 ****
Embedded Derivative liability included in ending fixed annuity reserves above $ 3,675 **** $ 3,099 **** $ 3,730 **** $ 3,469 **** $ 3,541 **** $ 3,675 **** $ 3,541 ****

Page 16

American Financial Group, Inc.<br><br><br>Guaranteed Minimum Interest Rate (“GMIR”) Analysis<br><br><br>($ in millions)
GMIR (a) 3/31/20 12/31/19 9/30/19 6/30/19 3/31/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
1 - 1.99% 85 % 84 % 84 % 84 % 83 % 82 %
2 - 2.99% 3 % 3 % 3 % 3 % 4 % 4 %
3 - 3.99% 6 % 7 % 7 % 7 % 7 % 8 %
4.00% and above 6 % 6 % 6 % 6 % 6 % 6 %
Annuity Benefits Accumulated 41,392 $ 40,463 $ 40,406 $ 39,651 $ 39,044 $ 38,006
Traditional Fixed and FIA Surrender Value (b) (c) 31,619 $ 30,934 $ 30,921 $ 30,292 $ 29,891 $ 29,163
Ability to Lower Average Crediting Rates by (b) (d) 1.14 % 1.18 % 1.19 % 1.20 % 1.20 % 1.20 %
Pretax earnings impact of crediting guaranteed minimums (b) 360 $ 365 $ 368 $ 363 $ 359 $ 350
(assumes net DAC impact over time = 0)

All values are in US Dollars.

(a) Excludes Federal Home Loan Bank (“FHLB”) advances, immediate reserves and certain other reserves.<br>
(b) Excludes Annuities with Guaranteed Withdrawal Benefits, FHLB advances, immediate reserves and certain other<br>reserves.
--- ---
(c) FIA and VIA Surrender Value include Host + Embedded Derivatives + Fixed Account values.
--- ---
(d) Weighted Average Crediting Rate less GMIR
--- ---

Page 17

American Financial Group, Inc.<br><br><br>Annuity Non-Core Earnings (Losses)<br><br><br>($ in millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Annuity Non-Core Earnings (Losses):
Stock market impact on:
Liability for guaranteed benefits (a) $ 22 $ (33 ) $ 12 $ 2 $ 6 $ (11 $ 20
DAC and sales inducements (b) 7 (10 ) 4 1 1 (3 6
Fair Value (FV) accounting 9 (21 ) 8 1 — (12 14
Subtotal impact of changes in stock market 38 (64 ) 24 4 7 (26 40
Impact of changes in interest rates on FV accounting (100 ) 29 (4 ) (30 (38 ) (71 (83 )
Other FIA items 3 (3 ) 4 — (2 ) — (1 )
Unlockings — — — (1 — — —
Annuity Non-Core Earnings (Losses) $ (59 ) $ (38 ) $ 24 **** $ (27 $ (33 ) $ (97 $ (44 )
Reported as Non-core Non-core Non-core Non-core Non-core Q1 Core = (11) Non-core Q2Non-core = (33)
Annuity Non-Core Earnings (Losses), net oftaxes $ (47 ) $ (30 ) $ 19 **** $ (21 $ (27 ) $ (77 $ (27 )
Annuity Non-Core Net Spread Earned:
Stock market impact on:
Liability for guaranteed benefits (a) 0.22 % (0.33 %) 0.12 % 0.02 0.06 % (0.06 0.11 %
DAC and sales inducements (b) 0.07 % (0.10 %) 0.04 % 0.01 0.01 % (0.01 0.03 %
Fair Value (FV) accounting 0.09 % (0.21 %) 0.08 % 0.01 0.00 % (0.06 0.07 %
Subtotal impact of changes in stock market 0.38 % (0.64 %) 0.24 % 0.04 0.07 % (0.13 0.21 %
Impact of changes in interest rates on FV accounting (0.99 %) 0.29 % (0.04 %) (0.31 (0.40 %) (0.35 (0.44 %)
Other FIA items 0.03 % (0.03 %) 0.04 % 0.00 (0.02 %) 0.00 (0.01 %)
Unlockings 0.00 % 0.00 % 0.00 % (0.01 0.00 % 0.00 0.00 %
Non-core net spread earned on fixedannuities **** (0.58 %) **** (0.38 %) **** 0.24 % **** (0.28 **** (0.35 %) **** (0.48 **** (0.24 %)
Reported as Non-core Non-core Non-core Non-core Non-core Q1 Core = (.06%) Non-core Q2 Non-core = (.18%)
(a)   Reflects the impact of changes in the stock market on AFG’s liability for fixed-indexed<br>annuities with guaranteed benefits. Increases in the stock market will generally have a favorable earnings impact; decreases in the stock market will generally have an unfavorable impact.<br><br><br>(b)   Reflects the impact of changes in the stock market on the current and projected lifetime<br>profitability of AFG’s annuity business. Increases in the stock market will generally have a favorable earnings impact; decreases in the stock market will generally have an unfavorable impact.
S&P 500 3,100 2,585 3,231 2,977 2,942 3,100 2,942
Average 5 and 15 year Corp A2 rates 1.95 % 3.01 % 2.74 % 2.71 2.97 % 1.95 2.97 %
Non-core earnings sensitivities:
Incremental +/- 1% change in S&P 500 ~+/-$ 2mm to 3mm
Incremental +/- 10bps change in interest rates ~+/-$ 6mm to 8mm
(Assumes parallel shift in rates (primarily Corporate A2 rates))

All values are in US Dollars.

Page 18

American Financial Group, Inc.<br><br><br>Reconciliation from Core to GAAP Annuity Pretax Earnings<br><br><br>($ in millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Annuity Earnings
Core annuity operating earnings—as reported (see page 12a) $ 42 $ 67 $ 104 $ 100 $ 104 $ 109 $ 194
Annuity non-core earnings (losses) (59 ) (38 ) 24 (27 ) (33 ) (97 ) (33 )
Earnings before income taxes—GAAP $ (17 ) $ 29 $ 128 $ 73 $ 71 $ 12 $ 161
Policy Charges and Other Miscellaneous Income
Policy charges and other miscellaneous income (see page 12a) $ 13 $ 18 $ 13 $ 14 $ 13 $ 31 $ 25
Annuity non-core policy charges and other miscellaneous<br>income — — — 1 — — —
Policy Charges and Other Miscellaneous Income—GAAP $ 13 $ 18 $ 13 $ 15 $ 13 $ 31 $ 25
Annuity Benefit Expense
Annuity benefits expense (see page 13) $ 274 $ 287 $ 285 $ 280 $ 275 $ 561 $ 542
Annuity non-core annuity benefits 157 (3 ) (30 ) (26 ) 67 154 112
Annuity Benefit Expense—GAAP $ 431 $ 284 $ 255 $ 254 $ 342 $ 715 $ 654
Acquisition Expenses
Acquisition expenses (see page 12a) $ 62 $ 71 $ 65 $ 64 $ 67 $ 133 $ 127
Annuity non-core acquisition expenses (98 ) 41 6 54 (34 ) (57 ) (68 )
Acquisition Expenses—GAAP $ (36 ) $ 112 $ 71 $ 118 $ 33 $ 76 $ 59
Net Spread on Fixed Annuities
Core net spread earned on fixed annuities - as reported (see page 14) 0.39 % 0.69 % 1.07 % 1.06 % 1.11 % 0.54 % 1.04 %
Non-core net spread earned on fixed annuities (0.58 %) (0.38 %) 0.24 % (0.28 %) (0.35 %) (0.48 %) (0.18 %)
Net Spread on Fixed Annuities (0.19 %) 0.31 % 1.31 % 0.78 % 0.76 % 0.06 % 0.86 %

Page 19

American Financial Group, Inc.<br><br><br>Consolidated Balance Sheet<br> <br>($ in millions)
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 3/31/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Assets:
Total cash and investments $ 56,741 $ 53,221 $ 55,252 $ 54,207 $ 52,907 $ 51,040
Recoverables from reinsurers 3,476 3,387 3,415 3,261 3,150 3,258
Prepaid reinsurance premiums 733 708 678 781 651 636
Agents’ balances and premiums receivable 1,366 1,302 1,335 1,403 1,398 1,283
Deferred policy acquisition costs 818 1,573 1,037 964 1,203 1,447
Assets of managed investment entities 4,393 4,026 4,736 4,702 4,781 4,786
Other receivables 880 981 975 1,187 999 1,011
Variable annuity assets (separate accounts) 577 497 628 601 616 610
Other assets 1,676 1,741 1,867 1,754 1,785 1,854
Goodwill 207 207 207 207 207 207
Total assets $ 70,867 **** $ 67,643 **** $ 70,130 **** $ 69,067 **** $ 67,697 **** $ 66,132 ****
Liabilities and Equity:
Unpaid losses and loss adjustment expenses $ 10,321 $ 10,106 $ 10,232 $ 9,847 $ 9,577 $ 9,623
Unearned premiums 2,778 2,808 2,830 2,986 2,683 2,605
Annuity benefits accumulated 41,392 40,463 40,406 39,651 39,044 38,006
Life, accident and health reserves 606 607 612 613 619 632
Payable to reinsurers 746 779 814 867 755 730
Liabilities of managed investment entities 4,236 3,865 4,571 4,523 4,590 4,593
Long-term debt 1,912 1,473 1,473 1,423 1,423 1,423
Variable annuity liabilities (separate accounts) 577 497 628 601 616 610
Other liabilities 2,173 1,998 2,295 2,235 2,300 2,245
Total liabilities $ 64,741 **** $ 62,596 **** $ 63,861 **** $ 62,746 **** $ 61,607 **** $ 60,467 ****
Shareholders’ equity:
Common stock $ 89 $ 90 $ 90 $ 90 $ 90 $ 90
Capital surplus 1,299 1,309 1,307 1,292 1,277 1,256
Retained earnings 3,685 3,616 4,009 4,022 3,914 3,875
Unrealized gains—fixed maturities 1,030 16 862 920 812 464
Unrealized gains (losses)—fixed maturity-related cash flow hedges 47 44 17 25 18 —
Other comprehensive income, net of tax (24 ) (28 ) (16 ) (28 ) (21 ) (20 )
Total shareholders’ equity **** 6,126 **** **** 5,047 **** **** 6,269 **** **** 6,321 **** **** 6,090 **** **** 5,665 ****
Noncontrolling interests **** — **** **** — **** **** — **** **** — **** **** — **** **** — ****
Total liabilities and equity $ 70,867 **** $ 67,643 **** $ 70,130 **** $ 69,067 **** $ 67,697 **** $ 66,132 ****

Page 20

American Financial Group, Inc.<br><br><br>Book Value Per Share and Price / Book Summary<br> <br>(in<br>millions, except per share information)
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 3/31/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Shareholders’ equity $ 6,126 **** $ 5,047 **** $ 6,269 **** $ 6,321 **** $ 6,090 **** $ 5,665 ****
Unrealized (gains) related to fixed maturities (1,077 ) (60 ) (879 ) (945 ) (830 ) (464 )
Adjusted shareholders’ equity **** 5,049 **** **** 4,987 **** **** 5,390 **** **** 5,376 **** **** 5,260 **** **** 5,201 ****
Goodwill (207 ) (207 ) (207 ) (207 ) (207 ) (207 )
Intangibles (37 ) (40 ) (43 ) (45 ) (48 ) (51 )
Tangible adjusted shareholders’ equity $ 4,805 **** $ 4,740 **** $ 5,140 **** $ 5,124 **** $ 5,005 **** $ 4,943 ****
Common shares outstanding 88.659 89.827 90.304 90.127 89.918 89.638
Book value per share:
Book value per share $ 69.10 **** $ 56.18 **** $ 69.43 **** $ 70.14 **** $ 67.72 **** $ 63.20 ****
Adjusted (a) **** 56.95 **** **** 55.52 **** **** 59.70 **** **** 59.65 **** **** 58.49 **** **** 58.02 ****
Tangible, adjusted (b) **** 54.20 **** **** 52.77 **** **** 56.93 **** **** 56.84 **** **** 55.65 **** **** 55.14 ****
Market capitalization
AFG’s closing common share price $ 63.46 $ 70.08 $ 109.65 $ 107.85 $ 102.47 $ 96.21
Market capitalization $ 5,626 $ 6,295 $ 9,902 $ 9,720 $ 9,214 $ 8,624
Price / Adjusted book value ratio 1.11 1.26 1.84 1.81 1.75 1.66
(a) Excludes unrealized gains related to fixed maturity investments.
--- ---
(b) Excludes unrealized gains related to fixed maturity investments, goodwill and intangibles.<br>
--- ---

Page 21

American Financial Group, Inc.<br><br><br>Capitalization<br> <br>($ in millions)
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 3/31/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
AFG senior obligations $ 1,318 $ 1,018 $ 1,018 $ 1,018 $ 1,018 $ 1,018
Borrowings drawn under credit facility — — — — — —
Debt excluding subordinated debt $ 1,318 **** $ 1,018 **** $ 1,018 **** $ 1,018 **** $ 1,018 **** $ 1,018 ****
AFG subordinated debentures 625 475 475 425 425 425
Total principal amount of long-term debt $ 1,943 **** $ 1,493 **** $ 1,493 **** $ 1,443 **** $ 1,443 **** $ 1,443 ****
Shareholders’ equity 6,126 5,047 6,269 6,321 6,090 5,665
Noncontrolling interests (including redeemable NCI) — — — — — —
Less:
Unrealized (gains) related to fixed maturity investments (1,077 ) (60 ) (879 ) (945 ) (830 ) (464 )
Total adjusted capital $ 6,992 **** $ 6,480 **** $ 6,883 **** $ 6,819 **** $ 6,703 **** $ 6,644 ****
Ratio of debt to total adjusted capital:
Including subordinated debt **** 27.8 % **** 23.0 % **** 21.7 % **** 21.2 % **** 21.5 % **** 21.7 %
Excluding subordinated debt **** 18.9 % **** 15.7 % **** 14.8 % **** 14.9 % **** 15.2 % **** 15.3 %

Page 22

American Financial Group, Inc.<br><br><br>Additional Supplemental Information<br> <br>($ in<br>millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Property and Casualty Insurance
Paid Losses (GAAP) $ 601 $ 751 $ 727 $ 769 $ 666 $ 1,352 $ 1,370
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 3/31/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
GAAP Equity (excluding AOCI)
Property and Casualty Insurance $ 3,945 $ 3,800 $ 4,043 $ 4,094 $ 3,959 $ 3,868
Annuity 2,579 2,512 2,715 2,613 2,612 2,553
Parent and other subsidiaries (1,451 ) (1,297 ) (1,352 ) (1,303 ) (1,290 ) (1,200 )
AFG GAAP Equity (excluding AOCI) $ 5,073 $ 5,015 $ 5,406 $ 5,404 $ 5,281 $ 5,221
Allowable dividends without regulatory approval
Property and Casualty Insurance $ 565 $ 565 $ 565 $ 529 $ 529 $ 529
Annuity and Run-off 287 287 287 768 768 768
Total $ 852 **** $ 852 **** $ 852 **** $ 1,297 **** $ 1,297 **** $ 1,297 ****

Page 23

American Financial Group, Inc.<br> <br>TotalCash and Investments<br> <br>($ in millions)
Carrying Value—June 30, 2020
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Property andCasualtyInsurance Annuity andRun-off Parent andOther Non-Insurance ConsolidateCLOs Total AFGConsolidated % ofInvestmentPortfolio
Total cash and investments:
Cash and cash equivalents $ 1,445 $ 743 $ 510 $ — $ 2,698 5 %
Fixed maturities—Available for sale 8,631 39,406 9 — 48,046 85 %
Fixed maturities—Trading 50 47 — — 97 0 %
Equity securities—common stocks 424 400 61 — 885 2 %
Equity securities—perpetual preferred 379 338 — — 717 1 %
Investments accounted for using the equity method 755 1,026 — — 1,781 3 %
Mortgage loans 328 1,147 — — 1,475 3 %
Policy loans — 158 — — 158 0 %
Equity index call options — 605 — — 605 1 %
Real estate and other investments 113 271 52 (157 ) 279 0 %
Total cash and investments $ 12,125 $ 44,141 $ 632 $ (157 ) $ 56,741 **** 100 %
Carrying Value—December 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Property andCasualtyInsurance Annuity andRun-off Parent andOther Non-Insurance ConsolidateCLOs Total AFGConsolidated % ofInvestmentPortfolio
Total cash and investments:
Cash and cash equivalents $ 1,387 $ 746 $ 181 $ — $ 2,314 4 %
Fixed maturities—Available for sale 8,596 37,899 10 — 46,505 84 %
Fixed maturities—Trading 59 54 — — 113 0 %
Equity securities—common stocks 664 553 66 — 1,283 3 %
Equity securities—perpetual preferred 397 257 — — 654 1 %
Investments accounted for using the equity method 703 985 — — 1,688 3 %
Mortgage loans 262 1,067 — — 1,329 2 %
Policy loans — 164 — — 164 0 %
Equity index call options — 924 — — 924 2 %
Real estate and other investments 122 265 55 (164 ) 278 1 %
Total cash and investments $ 12,190 $ 42,914 $ 312 $ (164 ) $ 55,252 **** 100 %

Page 24

American Financial Group, Inc.<br> <br>NetInvestment Income<br> <br>($ in millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Property and Casualty Insurance:
Gross Investment Income
Fixed maturities—Available for sale $ 75 $ 81 $ 79 $ 75 $ 79 $ 156 $ 156
Fixed maturities—Trading — 1 — 1 1 1 2
Equity securities—dividends 8 10 11 12 13 18 26
Equity securities—MTM 2 3 (1 ) 7 1 5 3
Equity in investees (15 ) 11 21 20 20 (4 ) 23
AFG managed CLOs — (11 ) (2 ) (2 ) 2 (11 ) 5
Other investments (a) 3 6 13 12 10 9 17
Gross investment income **** 73 **** **** 101 **** **** 121 **** **** 125 **** **** 126 **** **** 174 **** **** 232 ****
Investment expenses (1 ) (2 ) (1 ) (1 ) (2 ) (3 ) (4 )
Total net investment income $ 72 **** $ 99 **** $ 120 **** $ 124 **** $ 124 **** $ 171 **** $ 228 ****
Average cash and investments (b) $ 11,454 **** $ 11,457 **** $ 11,744 **** $ 11,387 **** $ 11,193 **** $ 11,509 **** $ 11,084 ****
Average yield (c) **** 2.51 % **** 3.46 % **** 4.09 % **** 4.36 % **** 4.43 % **** 2.97 % **** 4.11 %
Fixed Annuity
Gross Investment Income
Fixed maturities—Available for sale $ 402 $ 403 $ 406 $ 393 $ 391 $ 805 $ 775
Equity securities—dividends 8 7 8 9 8 15 17
Equity securities—MTM — 5 4 7 3 5 6
Equity in investees (39 ) 14 24 23 25 (25 ) 43
AFG managed CLOs 2 (25 ) (5 ) (3 ) 3 (23 ) 11
Other investments (a) 14 19 23 21 22 33 37
Gross investment income **** 387 **** **** 423 **** **** 460 **** **** 450 **** **** 452 **** **** 810 **** **** 889 ****
Investment expenses (5 ) (3 ) (4 ) (4 ) (4 ) (8 ) (8 )
Total net investment income $ 382 **** $ 420 **** $ 456 **** $ 446 **** $ 448 **** $ 802 **** $ 881 ****
Average cash and investments (b) $ 40,570 **** $ 40,073 **** $ 39,316 **** $ 38,650 **** $ 37,907 **** $ 40,322 **** $ 37,449 ****
Average yield (c) **** 3.77 % **** 4.19 % **** 4.63 % **** 4.62 % **** 4.73 % **** 3.98 % **** 4.71 %
AFG consolidated net investment income:
Property & Casualty core $ 72 $ 99 $ 120 $ 124 $ 124 $ 171 $ 228
Neon exited lines non-core — (6 ) — — — (6 ) —
Annuity:
Fixed Annuity 382 420 456 446 448 802 881
Variable Annuity 2 2 2 2 3 4 5
Parent & other 14 (7 ) 8 11 10 7 24
Consolidate CLOs (2 ) 36 7 5 (5 ) 34 (16 )
Total net investment income $ 468 **** $ 544 **** $ 593 **** $ 588 **** $ 580 **** $ 1,012 **** $ 1,122 ****
(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.
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Page 25

American Financial Group, Inc.<br><br><br>Insurance Companies’ Alternative Investments<br><br><br>($ in millions)
Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Property and Casualty Insurance:
Net Investment Income
Equity securities MTM through investment income (a) $ 2 $ 3 $ (1 ) $ 7 $ 1 $ 5 $ 3
Investments accounted for using the equity method (b) (15 ) 11 21 20 20 (4 ) 23
AFG managed CLOs (eliminated in consolidation) — (11 ) (2 ) (2 ) 2 (11 ) 5
Total Property & Casualty $ (13) **** $ 3 **** $ 18 **** $ 25 **** $ 23 **** $ (10 ) $ 31 ****
Investments
Equity securities MTM through investment income (a) $ 95 $ 86 $ 71 $ 63 $ 44 $ 95 $ 44
Investments accounted for using the equity method (b) 755 736 703 625 614 755 614
AFG managed CLOs (eliminated in consolidation) 39 40 48 53 56 39 56
Total Property & Casualty $ 889 **** $ 862 **** $ 822 **** $ 741 **** $ 714 **** $ 889 **** $ 714 ****
Annualized Yield—Property & Casualty **** (5.9 %) **** 1.4 % **** 9.2 % **** 13.7 % **** 13.3 % **** (2.3 %) **** 9.1 %
Fixed Annuity:
Net Investment Income
Equity securities MTM through investment income (a) $ — $ 5 $ 4 $ 7 $ 3 $ 5 $ 6
Investments accounted for using the equity method (b) (39 ) 14 24 23 25 (25 ) 43
AFG managed CLOs (eliminated in consolidation) 2 (25 ) (5 ) (3 ) 3 (23 ) 11
Total Fixed Annuity $ (37) **** $ (6 ) $ 23 **** $ 27 **** $ 31 **** $ (43 ) $ 60 ****
Investments
Equity securities MTM through investment income (a) $ 168 $ 160 $ 142 $ 120 $ 101 $ 168 $ 101
Investments accounted for using the equity method (b) 1,026 1,027 985 910 892 1,026 892
AFG managed CLOs (eliminated in consolidation) 118 120 116 125 135 118 135
Total Fixed Annuity $ 1,312 **** $ 1,307 **** $ 1,243 **** $ 1,155 **** $ 1,128 **** $ 1,312 **** $ 1,128 ****
Annualized Yield—Fixed Annuity **** (11.3 %) **** (1.9 %) **** 7.7 % **** 9.5 % **** 11.2 % **** (6.7 %) **** 11.1 %
Combined:
Net Investment Income
Equity securities MTM through investment income (a) $ 2 $ 8 $ 3 $ 14 $ 4 $ 10 $ 9
Investments accounted for using the equity method (b) (54 ) 25 45 43 45 (29 ) 66
AFG managed CLOs (eliminated in consolidation) 2 (36 ) (7 ) (5 ) 5 (34 ) 16
Total Combined (including Parent) $ (50) **** $ (3 ) $ 41 **** $ 52 **** $ 54 **** $ (53 ) $ 91 ****
Investments
Equity securities MTM through investment income (a) $ 263 $ 246 $ 213 $ 183 $ 145 $ 263 $ 145
Investments accounted for using the equity method (b) 1,781 1,763 1,688 1,535 1,506 1,781 1,506
AFG managed CLOs (eliminated in consolidation) 157 160 164 178 191 157 191
Total Combined (including Parent) $ 2,201 **** $ 2,169 **** $ 2,065 **** $ 1,896 **** $ 1,842 **** $ 2,201 **** $ 1,842 ****
Annualized Yield—Combined **** (9.2 %) **** (0.6 %) **** 8.3 % **** 11.1 % **** 12.0 % **** (4.9 %) **** 10.3 %
(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.
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Page 26

American Financial Group, Inc.<br> <br>FixedMaturities—By Security Type—AFG Consolidated<br> <br>($ in millions )
June 30, 2020 Book Value(b) FairValue UnrealizedGain(Loss) % ofFairValue % ofInvestmentPortfolio
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
US Government and government agencies $ 199 $ 213 $ 14 0 % 0 %
States, municipalities and political subdivisions 6,391 6,969 578 14 % 12 %
Foreign government 210 218 8 1 % 0 %
Residential mortgage-backed securities 2,996 3,223 227 7 % 6 %
Commercial mortgage-backed securities 852 889 37 2 % 2 %
Collateralized loan obligations 4,605 4,507 (98 ) 9 % 8 %
Other asset-backed securities 7,386 7,315 (71 ) 15 % 13 %
Corporate and other bonds 23,067 24,809 1,742 52 % 44 %
Total AFG consolidated $ 45,706 **** $ 48,143 $ 2,437 **** **** 100 % **** 85 %
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a) 4.21 %
Net of investment expense (a) 4.16 %
Approximate average life and duration:
Approximate average life 5.5 years
Approximate duration 4 years
December 31, 2019 Book Value FairValue UnrealizedGain(Loss) % ofFairValue % ofInvestmentPortfolio
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
US Government and government agencies $ 203 $ 213 $ 10 1 % 0 %
States, municipalities and political subdivisions 6,628 6,987 359 15 % 12 %
Foreign government 209 211 2 0 % 0 %
Residential mortgage-backed securities 2,901 3,161 260 7 % 6 %
Commercial mortgage-backed securities 896 927 31 2 % 2 %
Collateralized loan obligations 4,307 4,280 (27 ) 9 % 8 %
Other asset-backed securities 6,992 7,128 136 15 % 13 %
Corporate and other bonds 22,501 23,711 1,210 51 % 43 %
Total AFG consolidated $ 44,637 **** $ 46,618 $ 1,981 **** **** 100 % **** 84 %
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a) 4.48 %
Net of investment expense (a) 4.44 %
Approximate average life and duration:
Approximate average life 5.5 years
Approximate duration 4 years
(a) Annualized yield is calculated by dividing investment income for the quarter by the average cost over the<br>quarter. Average cost is the average of the beginning and ending quarter asset balances.
--- ---
(b) Book Value is amortized cost, net of allowance for expected credit losses.
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Page 27

American Financial Group, Inc.<br> <br>FixedMaturities—By Security Type Portfolio<br> <br>($ in millions )
June 30, 2020 December 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Property and Casualty Insurance: BookValue FairValue UnrealizedGain(Loss) % ofFairValue Book Value FairValue UnrealizedGain(Loss) % ofFairValue
US Government and government agencies $ 161 $ 168 $ 7 2 % $ 165 $ 167 $ 2 2 %
States, municipalities and political subdivisions 2,418 2,536 118 29 % 2,524 2,614 90 30 %
Foreign government 179 183 4 2 % 178 177 (1 ) 2 %
Residential mortgage-backed securities 936 984 48 11 % 990 1,051 61 12 %
Commercial mortgage-backed securities 86 88 2 1 % 89 92 3 1 %
Collateralized loan obligations 935 913 (22 ) 11 % 906 901 (5 ) 11 %
Other asset-backed securities 1,828 1,810 (18 ) 21 % 1,727 1,741 14 20 %
Corporate and other bonds 1,943 1,999 56 23 % 1,861 1,912 51 22 %
Property and Casualty Insurance $ 8,486 **** $ 8,681 $ 195 **** **** 100 % $ 8,440 **** $ 8,655 $ 215 **** **** 100 %
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a) 3.53 % 3.94 %
Net of investment expense (a) 3.46 % 3.90 %
Tax equivalent, net of investment expense (b) 3.61 % 4.05 %
Approximate average life and duration:
Approximate average life 4 years 4.5 years
Approximate duration 3 years 3 years
June 30, 2020 December 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Annuity and Run-off: Book Value FairValue UnrealizedGain(Loss) % ofFairValue Book Value FairValue UnrealizedGain(Loss) % ofFairValue
US Government and government agencies $ 38 $ 45 $ 7 0 % $ 38 $ 46 $ 8 0 %
States, municipalities and political subdivisions 3,973 4,433 460 11 % 4,104 4,373 269 12 %
Foreign government 31 35 4 0 % 31 34 3 0 %
Residential mortgage-backed securities 2,058 2,230 172 6 % 1,909 2,100 191 6 %
Commercial mortgage-backed securities 766 801 35 2 % 807 835 28 2 %
Collateralized loan obligations 3,670 3,594 (76 ) 9 % 3,401 3,379 (22 ) 9 %
Other asset-backed securities 5,558 5,505 (53 ) 14 % 5,265 5,387 122 14 %
Corporate and other bonds 21,124 22,810 1,686 58 % 20,640 21,799 1,159 57 %
Total Annuity and Run-off $ 37,218 **** $ 39,453 $ 2,235 **** **** 100 % $ 36,195 **** $ 37,953 $ 1,758 **** **** 100 %
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a) 4.37 % 4.59 %
Net of investment expense (a) 4.32 % 4.55 %
Approximate average life and duration:
Approximate average life 5.5 years 6 years
Approximate duration 4 years 4.5 years
(a) Annualized yield is calculated by dividing investment income for the quarter by the average cost over the<br>quarter. Average cost is the average of the beginning and ending quarter asset balances.
--- ---
(b) Adjusts the yield on tax-exempt bonds to the fully taxable equivalent<br>yield.
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Page 28

American Financial Group, Inc.<br> <br>FixedMaturities - Credit Rating<br> <br>($ in millions)
June 30, 2020
--- --- --- --- --- --- --- --- --- --- ---
By Credit Rating (a) Book Value Fair Value UnrealizedGain (Loss) % ofFair Value
Investment grade
AAA $ 9,757 $ 9,959 $ 202 21 %
AA 7,938 8,352 414 17 %
A 9,836 10,533 697 22 %
BBB 13,907 14,883 976 31 %
Subtotal - Investment grade 41,438 43,727 2,289 91 %
BB 909 875 (34 ) 2 %
B 258 257 (1 ) 1 %
Other (b) 3,101 3,284 183 6 %
Subtotal - Non-Investment grade 4,268 4,416 148 9 %
Total $ 45,706 $ 48,143 $ 2,437 **** **** 100 %

97% of the fixed maturity portfolio is NAIC designated 1 or 2.

December 31, 2019
By Credit Rating (a) Book Value Fair Value UnrealizedGain (Loss) % ofFair Value
Investment grade
AAA $ 8,854 $ 9,010 $ 156 19 %
AA 8,615 8,957 342 19 %
A 10,456 10,983 527 24 %
BBB 12,759 13,465 706 29 %
Subtotal - Investment grade 40,684 42,415 1,731 91 %
BB 714 724 10 2 %
B 186 183 (3 ) 0 %
Other (b) 3,053 3,296 243 7 %
Subtotal - Non-Investment grade 3,953 4,203 250 9 %
Total $ 44,637 $ 46,618 $ 1,981 **** **** 100 %

98% of the fixed maturity portfolio is NAIC designated 1 or 2.

(a) If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies<br>rate a security, the rating displayed is the second lowest.
(b) See pages 33 and 34 for more information.
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Page 29

American Financial Group, Inc.<br> <br><br><br><br>Mortgage-Backed Securities—AFG Consolidated<br> <br><br><br><br>($ in millions)
June 30, 2020 BookValue FairValue UnrealizedGain (Loss) % ofFairValue % ofInvestmentPortfolio
--- --- --- --- --- --- --- --- --- --- --- --- ---
Residential
Agency $ 437 $ 445 $ 8 11 % 1 %
Prime (Non-Agency) 1,330 1,435 105 35 % 2 %
Alt-A 843 929 86 22 % 2 %
Subprime 386 414 28 10 % 1 %
Commercial 852 889 37 22 % 2 %
Total AFG consolidated $ 3,848 $ 4,112 $ 264 **** 100 % **** 8 %
• Substantially all of AFG’s MBS securities are either senior tranches of securitizations or collateralized by<br>senior tranches of securitizations.
--- ---
• The average amortized cost as a percent of par is—Prime 88%; Alt-A 80%; Subprime 86%; CMBS 99%.<br>
--- ---
• The average FICO score of our residential MBS securities is—Prime 747;<br>Alt-A 693; Subprime 631.
--- ---
• 94% of our Commercial MBS portfolio is investment-grade rated (83% AAA) and the average subordination for this<br>group of assets is 36%.
--- ---
• The approximate average life by collateral type is—Residential 4 years; Commercial 3 years.<br>
--- ---
December 31, 2019 BookValue FairValue UnrealizedGain(Loss) % ofFairValue % ofInvestmentPortfolio
--- --- --- --- --- --- --- --- --- --- --- --- ---
Residential
Agency $ 549 $ 552 $ 3 13 % 1 %
Prime (Non-Agency) 1,157 1,264 107 31 % 2 %
Alt-A 897 1,015 118 25 % 2 %
Subprime 298 330 32 8 % 1 %
Commercial 896 927 31 23 % 2 %
Total AFG consolidated $ 3,797 $ 4,088 $ 291 **** 100 % **** 8 %

Page 30

American Financial Group, Inc.<br> <br><br><br><br>Mortgage-Backed Securities Portfolio<br> <br><br><br><br>($ in millions)
Property and Casualty Insurance: June 30, 2020
--- --- --- --- --- --- --- --- --- --- --- --- ---
By Asset Type BookValue FairValue UnrealizedGain(Loss) % ofFairValue % ofInvPortfolio
Residential
Agency $ 227 $ 232 $ 5 22 % 2 %
Prime (Non-Agency) 311 325 14 30 % 3 %
Alt-A 234 255 21 24 % 2 %
Subprime 164 172 8 16 % 1 %
Commercial 86 88 2 8 % 1 %
Total $ 1,022 $ 1,072 $ 50 **** 100 % **** 9 %
December 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- ---
By Asset Type BookValue FairValue UnrealizedGain(Loss) % ofFairValue % ofInvPortfolio
Residential
Agency $ 315 $ 317 $ 2 28 % 3 %
Prime (Non-Agency) 279 292 13 26 % 2 %
Alt-A 265 299 34 26 % 2 %
Subprime 131 143 12 12 % 1 %
Commercial 89 92 3 8 % 1 %
Total $ 1,079 $ 1,143 $ 64 **** 100 % **** 9 %
Annuity andRun-off: June 30, 2020
--- --- --- --- --- --- --- --- --- --- --- --- ---
By Asset Type BookValue FairValue UnrealizedGain(Loss) % ofFairValue % ofInvPortfolio
Residential
Agency $ 210 $ 213 $ 3 7 % 0 %
Prime (Non-Agency) 1,017 1,101 84 37 % 2 %
Alt-A 609 674 65 22 % 2 %
Subprime 222 242 20 8 % 1 %
Commercial 766 801 35 26 % 2 %
Total $ 2,824 $ 3,031 $ 207 **** 100 % **** 7 %
December 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- ---
By Asset Type BookValue FairValue UnrealizedGain (Loss) % of FairValue % of InvPortfolio
Residential
Agency $ 234 $ 235 $ 1 8 % 1 %
Prime (Non-Agency) 876 962 86 33 % 2 %
Alt-A 632 716 84 25 % 2 %
Subprime 167 187 20 6 % 0 %
Commercial 807 835 28 28 % 2 %
Total $ 2,716 $ 2,935 $ 219 **** 100 % **** 7 %

Page 31

Appendix A

American Financial Group, Inc.

Components of CoreOperating Earnings As Reported

($ in millions) ****

Three Months Ended Six Months Ended
6/30/20 3/31/20 12/31/19 9/30/19 6/30/19 6/30/20 6/30/19
Core operating earnings before alternative investments marked to market
Property and Casualty Insurance core operating earnings before alternative investments marked to<br>market $ 178 $ 181 $ 169 $ 152 $ 307 $ 329
Annuity Pretax core operating earnings before alternative investments marked to market 79 84 75 75 163 139
Interest expense of parent holding companies (17 ) (18 ) (17 ) (17 ) (40 ) (33 )
Other expense (20 ) (32 ) (22 ) (25 ) (40 ) (51 )
Pre-tax core operating earnings before alternative<br>investments marked to market 220 215 205 185 390 384
Income tax expense 42 42 39 34 73 76
Core net operating earnings before alternative investments marked to market $ 178 **** $ 173 **** $ 166 **** $ 151 **** $ 317 **** $ 308 ****
Alternative investments marked to market through core operating earnings, net ofDAC
Property and Casualty Insurance alternative investments marked to market $ 3 $ 18 $ 25 $ 23 $ (10 ) $ 31
Annuity alternative investments marked to market, net of DAC (12 ) 20 25 29 (54 ) 55
Core pre-tax alternative investments marked to market, net<br>of DAC (9 ) 38 50 52 (64 ) 86
Income tax expense (2 ) 8 11 11 (13 ) 18
Alternative investments marked to market through core operating earnings, net ofDAC $ (7 ) $ 30 **** $ 39 **** $ 41 **** $ (51 ) $ 68 ****
Core operating earnings as reported
Property and Casualty Insurance operating earnings $ 181 $ 199 $ 194 $ 175 $ 297 $ 360
Annuity operating earnings 67 104 100 104 109 194
Interest expense of parent holding companies (17 ) (18 ) (17 ) (17 ) (40 ) (33 )
Other expense (20 ) (32 ) (22 ) (25 ) (40 ) (51 )
Pre-tax core operating earnings asreported 211 253 255 237 326 470
Income tax expense 40 50 50 45 60 94
Core net operating earnings as reported $ 171 **** $ 203 **** $ 205 **** $ 192 **** $ 266 **** $ 376 ****
Average number of diluted shares 91.138 91.274 91.137 90.981 90.567 90.839
Diluted core net operating earnings per share:
Core net operating earnings before alternative investments marked to market pershare $ 1.96 $ 1.90 $ 1.82 $ 1.66 $ 3.50 $ 3.39
Core alternative investments marked to market through core operating earnings, net of DAC per<br>share (0.08 ) 0.32 0.43 0.46 (0.56 ) 0.75
Core net operating earnings as reported per share $ 1.88 **** $ 2.22 **** $ 2.25 **** $ 2.12 **** $ 2.94 **** $ 4.14 ****

All values are in US Dollars.

Page 32

Appendix B<br> <br>AmericanFinancial Group, Inc.<br> <br>Fixed Maturities by Credit Rating & NAIC Designation by Type<br><br><br>6/30/2020<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 $ 203 $ 2,061 $ 157 $ 1,348 $ 738 $ 3,261 $ 2,031 $ 160 $ 9,959 21 %
AA 10 4,360 44 135 10 981 1,721 1,091 8,352 17 %
A — 393 1 249 14 228 1,766 7,882 10,533 22 %
BBB — 94 3 62 73 25 800 13,826 14,883 31 %
Subtotal—Investment grade 213 6,908 205 1,794 835 4,495 6,318 22,959 43,727 91 %
BB — 9 — 73 32 — 8 753 875 2 %
B — — — 103 — — 4 150 257 1 %
CCC, CC, C — — — 512 5 — 3 42 562 1 %
D — — — 179 — — — 1 180 0 %
Subtotal—Non-Investment grade — 9 — 867 37 — 15 946 1,874 4 %
Not Rated (b) — 52 13 562 17 12 982 904 2,542 5 %
Total $ 213 $ 6,969 $ 218 $ 3,223 $ 889 $ 4,507 $ 7,315 $ 24,809 $ 48,143 **** 100 %
Fair Value by type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAIC designation US Gov Munis Frgn gov RMBS CMBS CLOs ABS Corp/Oth Total % Total
1 $ 196 $ 6,865 $ 184 $ 3,115 $ 840 $ 4,468 $ 6,481 $ 9,760 $ 31,909 68 %
2 — 94 — 22 14 25 807 13,948 14,910 29 %
Subtotal 196 6,959 184 3,137 854 4,493 7,288 23,708 46,819 97 %
3 — 9 — 21 32 — 8 770 840 2 %
4 — — — 28 — — 3 226 257 1 %
5 — — — 21 3 13 4 86 127 0 %
6 15 — — 6 — — 5 5 31 0 %
Subtotal 15 9 — 76 35 13 20 1,087 1,255 3 %
No designation (c) 2 1 34 10 — 1 7 14 69 0 %
Total $ 213 $ 6,969 $ 218 $ 3,223 $ 889 $ 4,507 $ 7,315 $ 24,809 $ 48,143 **** 100 %
(a) If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies<br>rate a security, the rating displayed is the second lowest.
--- ---
(b) For ABS, 99% are NAIC 1.
--- ---

For Corp/Oth, 78% are NAIC 1, 6% NAIC 2, 4% NAIC 3, 8% NAIC 4, 4% NAIC 5.

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

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

Page 33

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

Page 34

Appendix D<br> <br>AmericanFinancial Group, Inc.<br> <br>Corporate Securities by Credit Rating & NAIC Designation by Industry<br><br><br>6/30/2020<br> <br>($ in millions)
Fair Value By Industry
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Restaurants,
CreditRating (a) Banking Insurance OtherFinancials Technology AssetManagers Energy Healthcare Consumer REITs Utilities CapitalGoods BasicIndustry Media Autos Communications Retailers Hospitality &Leisure Aviation Other Total % Total
Investment Grade
AAA $ — $ — $ — $ 26 $ — $ — $ 21 $ 32 $ — $ — $ — $ — $ — $ — $ 79 $ — $ — $ — $ 2 $ 160 1 %
AA 86 129 97 112 184 179 90 110 — — 1 — — — — 23 18 — 62 1,091 4 %
A 2,122 1,079 364 549 710 208 353 261 315 549 377 75 228 148 171 83 19 96 175 7,882 32 %
BBB 3,228 1,135 756 1,047 734 1,026 895 594 654 383 449 631 442 487 335 294 234 164 338 13,826 56 %
Subtotal 5,436 2,343 1,217 1,734 1,628 1,413 1,359 997 969 932 827 706 670 635 585 400 271 260 577 22,959 93 %
BB 42 22 30 67 10 145 55 84 77 10 18 24 3 66 3 40 40 16 1 753 3 %
B — 1 — 5 — 14 21 22 66 — — 10 — — — 1 5 5 — 150 1 %
CCC, CC, C — — 1 8 — 4 1 12 — — — 3 — — — 5 8 — — 42 0 %
D — — — — — — — — — — — — — — — — 1 — — 1 0 %
Subtotal 42 23 31 80 10 163 77 118 143 10 18 37 3 66 3 46 54 21 1 946 4 %
Not Rated (b) 23 13 570 24 5 2 29 100 27 — 4 11 52 — — 21 10 — 13 904 3 %
Total $ 5,501 $ 2,379 $ 1,818 $ 1,838 $ 1,643 $ 1,578 $ 1,465 $ 1,215 $ 1,139 $ 942 $ 849 $ 754 $ 725 $ 701 $ 588 $ 467 $ 335 $ 281 $ 591 $ 24,809 **** 100 %
Fair Value By Industry
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAIC designation Banking Insurance OtherFinancials Technology AssetManagers Energy Healthcare Consumer REITs Utilities CapitalGoods BasicIndustry Media Autos Communications Retailers Restaurants,Hospitality &Leisure Aviation Other Total % Total
1 $ 2,201 $ 1,214 $ 989 $ 704 $ 899 $ 387 $ 483 $ 456 $ 333 $ 549 $ 378 $ 75 $ 228 $ 148 $ 250 $ 127 $ 18 $ 96 $ 225 $ 9,760 40 %
2 3,250 1,133 775 1,051 734 1,026 910 611 654 383 453 641 442 487 335 294 254 164 351 13,948 56 %
Subtotal 5,451 2,347 1,764 1,755 1,633 1,413 1,393 1,067 987 932 831 716 670 635 585 421 272 260 576 23,708 96 %
3 50 22 29 58 10 145 50 91 86 10 17 24 3 66 3 40 49 16 1 770 3 %
4 — 10 14 6 — 14 21 30 66 — — 10 44 — — 1 5 5 — 226 1 %
5 — — 11 18 — 3 1 27 — — 1 4 8 — — 5 8 — — 86 0 %
6 — — — 1 — 3 — — — — — — — — — — 1 — — 5 0 %
Subtotal 50 32 54 83 10 165 72 148 152 10 18 38 55 66 3 46 63 21 1 1,087 4 %
No designation (c) — — — — — — — — — — — — — — — — — — 14 14 0 %
Total $ 5,501 $ 2,379 $ 1,818 $ 1,838 $ 1,643 $ 1,578 $ 1,465 $ 1,215 $ 1,139 $ 942 $ 849 $ 754 $ 725 $ 701 $ 588 $ 467 $ 335 $ 281 $ 591 $ 24,809 **** 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, 94% are NAIC 1 and 96% are NAIC 1 or 2. For the Total, 78% are NAIC 1, 6% NAIC 2, 4% NAIC<br>3, 8% NAIC 4, 4% NAIC 5.
--- ---
(c) Primarily relates to securities held by non-insurance companies.<br>
--- ---

Page 35

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

Page 36

Appendix F<br> <br>American Financial Group,Inc.<br> <br>Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type 6/30/2020<br><br><br>($ in millions)
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
CreditRating (a) SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate SingleFamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Life Ins/StructuredSettlements Other Total % Total
Investment Grade
AAA $ — $ — $ — $ — $ 913 $ 472 $ — $ 159 $ 48 $ 157 $ 282 $ 2,031 28 %
AA 308 917 145 — 37 127 — 29 99 — 59 1,721 24 %
A 78 341 22 599 — 11 297 — 11 3 404 1,766 24 %
BBB 10 41 587 12 — — 44 37 — 2 67 800 11 %
Subtotal 396 1,299 754 611 950 610 341 225 158 162 812 6,318 87 %
BB — 1 — — — — 2 — — 5 — 8 0 %
B — — — — — — — — — — 4 4 0 %
CCC, CC, C — — — — — — — — — 2 1 3 0 %
D — — — — — — — — — — — — 0 %
Subtotal — 1 — — — — 2 — — 7 5 15 0 %
Not Rated (b) 970 — — — — — 12 — — — — 982 13 %
Total $ 1,366 $ 1,300 $ 754 $ 611 $ 950 $ 610 $ 355 $ 225 $ 158 $ 169 $ 817 $ 7,315 **** 100 %
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAICdesignation SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate SingleFamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Life Ins/StructuredSettlements Other Total % Total
1 $ 1,356 $ 1,258 $ 167 $ 599 $ 950 $ 610 $ 290 $ 188 $ 158 $ 159 $ 746 $ 6,481 89 %
2 10 41 587 12 — — 51 37 — 2 67 807 11 %
Subtotal 1,366 1,299 754 611 950 610 341 225 158 161 813 7,288 100 %
3 — 1 — — — — 2 — — 5 — 8 0 %
4 — — — — — — — — — — 3 3 0 %
5 — — — — — — — — — 3 1 4 0 %
6 — — — — — — 5 — — — — 5 0 %
Subtotal — 1 — — — — 7 — — 8 4 20 0 %
No designation (d) — — — — — — 7 — — — — 7 0 %
Total $ 1,366 $ 1,300 $ 754 $ 611 $ 950 $ 610 $ 355 $ 225 $ 158 $ 169 $ 817 $ 7,315 **** 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) 99% of not rated securities are NAIC 1.
--- ---
(c) Secured Financings are privately placed funding agreements secured by assets including Single Family Rental<br>properties, Bank Loans, Bank Trust Preferreds, Commercial and Residential Mortgages.
--- ---
(d) Primarily relates to securities held by non-insurance companies.<br>
--- ---

Page 37

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

Page 38

Appendix H<br> <br>American Financial Group,Inc.<br> <br>Real Estate Exposure<br> <br>6/30/2020<br><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 $ 727 80 % 95 % 98 %
Fund Investments 100 11 %
Student Housing 28 3 % 77 % 94 %
Land—Development 22 2 %
QOZ Fund—Development 16 2 %
Office 15 2 % 89 % 100 %
Total $ 908 **** 100 %

Real Estate

Property Type Book Value % ofBook Value Debt
Marinas $ 63 38 % $ —
Resort & Marina 57 34 % —
Hotel 23 14 % —
Office Building 19 11 % —
Land 5 3 % —
Total $ 167 **** 100 % $ —

Mortgage Loans

Property Type Book Value % ofBook Value Loan ToValue (d)
Hospitality 608 41 % 55 %
Multifamily 510 35 % 64 %
Office 251 17 % 64 %
Retail 60 4 % 58 %
Other 46 3 % 49 %
Total $ 1,475 **** 100 % **** 60 %

Currently, mortgage loans totaling $193 million are under forbearance agreements.

(a) Total investments accounted for using the equity method is $1.78 billion, the amounts presented in this<br>table only relate to real estate funds/investments.
(b) Occupancy as of 6/30/20
--- ---
(c) Collections for April—June
--- ---
(d) Based on most recent property appraisals, the vast majority of which are prior to March 2020.<br>
--- ---

Page 39

Appendix I<br> <br>American Financial Group,Inc.<br> <br>Real Estate Exposure<br> <br>12/31/2019<br><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 $ 589 77 % 96 % 99 %
Fund Investments 100 13 %
Student Housing 30 4 % 94 % 98 %
Land—Development 20 2 %
QOZ Fund—Development 16 2 %
Office 14 2 % 90 % 100 %
Total $ 769 **** 100 %

Real Estate

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

Mortgage Loans

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