Equibles

8-K

AMERICAN FINANCIAL GROUP INC (AFG)

8-K 2021-02-04 For: 2021-02-03
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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): February 3, 2021

AMERICAN FINANCIAL GROUP, INC.

(Exact name of registrant as specified in its charter)

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

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

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

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

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

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

Emerging growth company  ☐

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

Section 2 - Financial Information

Item 2.02 Results Of Operations And Financial Condition.

Reference is made to the press release of American Financial Group, Inc. (the “Company”) relating to the announcement of the Company’s results of operations for the fourth quarter of 2020 and the year ended December 31, 2020 and the availability of the Investor Supplement on the Company’s website. The press release was issued on February 3, 2021. A copy of the press release is attached to this Form 8-K as Exhibit 99.1 and a copy of the Investor Supplement is attached as Exhibit 99.2 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 February 3, 2021, reporting American Financial Group Inc. results for the fourth quarter and full year results for the period ended December 31, 2020.
99.2 Investor Supplement – Fourth 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: February 4, 2021
By: /s/ Karl J. Grafe
Karl J. Grafe
Vice President

3

EX-99.1

Exhibit 99.1

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

American Financial Group, Inc. Announces Fourth Quarter and Full Year Results

• Net earnings of $8.20 per share for the full year; fourth quarter net earnings of $7.93 pershare
• Fourth quarter earnings include $5.36 per share in realized gains on sales of securities and ($0.52) pershare in other after-tax non-core items
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• Core net operating earnings per share of $8.44 for the full year; fourth quarter core net operatingearnings per share of $3.09
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• Full year 2020 ROE of 14.0%; 2020 core operating ROE of 14.4%
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CINCINNATI – February 3, 2021 – American Financial Group, Inc. (NYSE: AFG) today reported 2020 fourth quarter net earnings attributable to shareholders of $692 million ($7.93 per share) compared to $211 million ($2.31 per share) for the 2019 fourth quarter. Net earnings for the 2020 fourth quarter include after-tax non-core items aggregating $423 million ($4.84 per share), comprised of $468 million ($5.36 per share) in realized gains, the majority of which pertain to the transfer of investments associated with AFG’s annuity block reinsurance transaction (announced previously), which were partially offset by $38 million ($0.44 per share loss) in after-tax annuity non-core losses and $7 million ($0.08 per share loss) in other non-core charges. Comparatively, net earnings in the 2019 fourth quarter included $8 million ($0.09 per share) in non-core after-tax items. Net earnings attributable to shareholders for the full year of 2020 were $8.20 per share, compared to $9.85 per share in 2019. Other details may be found in the table below. Book value was $78.62 per share at December 31, 2020. AFG paid cash dividends of $2.50 per share during the fourth quarter, which included a $2.00 per share special dividend. Return on equity was 14.0% and 17.1% for the full year in 2020 and 2019, respectively.

Core net operating earnings were $269 million ($3.09 per share) for the 2020 fourth quarter, compared to $203 million ($2.22 per share) in the 2019 fourth quarter. The year-over-year increase was primarily the result of significantly higher underwriting profit in the Specialty Property and Casualty (“P&C”) insurance operations and higher earnings from the Company’s $2.4 billion of alternative investments that are marked to market through core operating earnings. These items were partially offset by lower other property and casualty net investment income, primarily due to lower short-term interest rates. Additional details for the 2020 and 2019 fourth quarters may be found in the table below. Core operating return on equity was 14.4% and 14.9% for the full year in 2020 and 2019, respectively.

Three Months Ended December 31,
Components of Pretax Core Operating Earnings 2020 2019 2020 2019 2020 2019
Dollars in millions, except per share amounts Before Impact of<br>Alternative Investments Alternative<br>Investments, net of DAC Core Net Operating<br>Earnings, as reported
P&C Pretax Core Operating Earnings $ 233 $ 181 $ 41 $ 18 $ 274 $ 199
Annuity Pretax Core Operating Earnings 77 84 52 20 129 104
Other Expenses (33 ) (32 ) — — (33 ) (32 )
Holding Company Interest Expense (24 ) (18 ) — — (24 ) (18 )
Pretax Core Operating Earnings 253 215 93 38 346 253
Related Income Taxes 57 42 20 8 77 50
Core Net Operating Earnings $ 196 **** $ 173 **** $ 73 $ 30 $ 269 **** $ 203 ****
Core Net Operating Earnings Per Share $ 2.25 $ 1.90 $ 0.84 $ 0.32 $ 3.09 $ 2.22
Weighted Avg Diluted Shares Outstanding 87.2 91.3 87.2 91.3 87.2 91.3

Page 1

Book value per share, excluding unrealized gains related to fixed maturities, was $63.61 per share at December 31, 2020. In the fourth quarter of 2020, AFG repurchased 1.1 million shares of its common stock at an average price of $74.98 per share, for a total of approximately $80 million. For the full year, AFG repurchased 4.5 million shares at an average price of $69.02 per share, for a total of approximately $313 million. For the twelve months ended December 31, 2020, AFG’s growth in adjusted book value per share plus dividends was 13%.

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 twelve- month period ended December 31, 2019 are reconciled to historically reported Annuity Segment core operating earnings on page 6 of this release. Beginning with the first quarter of 2020, AFG’s core net operating earnings for its property and casualty insurance segment exclude the run-off operations of Neon (“Neon Exited Lines”). The Neon Exited Lines impact is highlighted in the table below.

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

Dollars in millions, except per share amounts Three months ended<br>December 31, Twelve months ended<br>December 31,
2020 2019 2020 2019
Components of net earnings attributable to shareholders:
Core operating earnings before income taxes $ 346 $ 251 $ 946 $ 967
Pretax non-core items:
Realized gains on securities 591 65 289 287
Annuity non-core earnings (losses) (48 ) 24 (188 ) (36 )
Special A&E charges — — (68 ) (29 )
Neon Exited Lines — (76 ) (122 ) (76 )
Other (5 ) (5 ) (9 ) (5 )
Earnings (loss) before income taxes 884 259 848 1,108
Provision (benefit) for income taxes:
Core operating earnings 77 50 194 193
Non-core items 113 18 (67 ) 46
Total provision for income taxes 190 68 127 239
Net earnings, including noncontrolling interests 694 191 721 869
Less net earnings (loss) attributable to noncontrolling interests:
Core operating earnings (losses) — (2 ) — (10 )
Non-core earnings (losses) 2 (18 ) (11 ) (18 )
Total net earnings (loss) attributable to noncontrolling interests 2 (20 ) (11 ) (28 )
Net earnings attributable to shareholders $ 692 **** $ 211 **** $ 732 **** $ 897 ****
Net earnings:
Core net operating<br>earnings**^(a)^** $ 269 $ 203 $ 752 $ 784
Realized gains on securities 468 51 229 227
Annuity non-core earnings (losses) (38 ) 19 (149 ) (29 )
Special A&E charges — — (54 ) (23 )
Neon Exited Lines (3 ) (58 ) (39 ) (58 )
Other (4 ) (4 ) (7 ) (4 )
Net earnings attributable to shareholders $ 692 **** $ 211 **** $ 732 **** $ 897 ****
Components of Earnings Per Share:
Core net operating<br>earnings**^(a)^** $ 3.09 $ 2.22 $ 8.44 $ 8.62
Non-core Items:
Realized gains on securities 5.36 0.56 2.56 2.47
Annuity non-core earnings (losses) (0.44 ) 0.21 (1.67 ) (0.31 )
Special A&E charges — — (0.61 ) (0.25 )
Neon Exited Lines (0.04 ) (0.64 ) (0.45 ) (0.64 )
Other (0.04 ) (0.04 ) (0.07 ) (0.04 )
Diluted Earnings Per Share $ 7.93 **** $ 2.31 **** $ 8.20 **** $ 9.85 ****

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

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S. Craig Lindner and Carl H. Lindner III, AFG’s Co-Chief Executive Officers, issued this statement: “We are extremely proud of AFG’s fourth quarter and full year 2020 results, especially in a year fraught with challenges including a global pandemic, related economic disruption and a heightened level of natural disasters. AFG finished the year on a strong note, generating a core operating ROE for the full year 2020 in excess of 14%. We are very pleased with the recovery in and performance of our alternative investments, which are marked to market through core earnings. Our liquidity and excess capital afford us the flexibility to effectively address and respond to the uncertainties introduced by COVID-19, and we believe our results demonstrate the value of our disciplined operating philosophy and portfolio of diversified specialty insurance businesses.”

“AFG had approximately $1.2 billion of excess capital (including parent company cash of approximately $215 million) at December 31, 2020. Our excess capital will be deployed into AFG’s core businesses as we identify potential for healthy, profitable organic growth, and opportunities to expand our specialty niche businesses through acquisitions and start-ups that meet our target return thresholds. In addition, returning capital to shareholders in the form of regular and special cash dividends and opportunistic share repurchases is also an important and effective component of our capital management strategy. Over the past year, we increased our quarterly dividend by 11% and paid a special dividend of $2.00 per share.

“We expect AFG’s core net operating earnings in 2021 to be in the range of $6.25 to $7.25 per share, excluding earnings from our annuity operations, which are being sold to Massachusetts Mutual Life Insurance Company (MassMutual) and are expected to be reported as discontinued operations effective January 1, 2021. These projected core net operating earnings for 2021 also assumes zero earnings on parent company cash, including the $3.0 billion in net cash proceeds (net of real estate-related assets assumed to be acquired by AFG Parent) from the sale of the annuity operations, as AFG’s ultimate deployment of this capital has not been determined. Our core earnings per share guidance excludes non-core items such as realized gains and losses, results of discontinued operations, 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 an approximately 8% return on alternative investments that are marked-to-market through core earnings and a normal crop year.”

A summary of the components of AFG’s core net operating earnings guidance follows:

Core earnings per share guidance<br>Point in range Assumptions
Low Mid High
P&C Operations, including parent company interest and expenses $ 5.90 $ 6.40 $ 6.90
Real estate alt investments (partnerships) to be acquired by AFG Parent 0.31 0.31 0.31 8% pretax yield on $430 million invested
Directly owned real estate to be acquired by AFG Parent 0.04 0.04 0.04 4% yield on $100 million invested
Parent cash, including cash received at close of the Annuity sale — — — 0% yield on $3.2 billion in parent cash
Core earnings per share guidance $ 6.25 $ 6.75 $ 7.25

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Specialty Property and Casualty Insurance Operations

Pretax core operating earnings in AFG’s P&C Insurance Segment were $274 million in the fourth quarter of 2020, compared to $199 million in the prior year period, an increase of $75 million, or 38%. Significantly higher year-over-year P&C underwriting profit and higher earnings from alternative investments were partially offset by lower other P&C net investment income, primarily the result of lower interest rates.

The Specialty P&C insurance operations generated an underwriting profit of $179 million for the 2020 fourth quarter compared to $89 million in the fourth quarter of 2019. Higher underwriting profitability in our Property and Transportation and Specialty Casualty Groups was partially offset by lower year-over-year underwriting profit in our Specialty Financial Group.

The fourth quarter 2020 combined ratio of 86.2% improved 7.3 points year-over-year and includes 2.4 points of favorable prior year reserve development, compared to 3.8 points of favorable prior year reserve development in the 2019 fourth quarter. Catastrophe losses added 1.5 points to the combined ratio in the 2020 fourth quarter, compared to 1.0 point in the comparable prior year period.

AFG did not record any additional reserve charges for COVID-19 in the fourth quarter. Given the uncertainties surrounding the ultimate number or scope of claims relating to the pandemic, approximately 72% of AFG’s COVID-19 related reserves from the $95 million in charges recorded in the first half of 2020 are held as incurred but not reported (IBNR) at December 31, 2020. These reserves represent the Company’s current best estimate of losses from the pandemic and related economic disruption.

Gross and net written premiums were down 2% and 7%, respectively, for the fourth quarter of 2020, when compared to the same period in 2019, primarily as the result of the run-off of Neon. Excluding the impact of the Neon run-off, gross and net written premiums increased 6% and 2%, respectively, year-over-year.

Average renewal pricing across our entire P&C Group was up approximately 13% for the quarter. Excluding our workers’ compensation business, renewal pricing was up approximately 17%. Renewal pricing in 2020 was 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 gain of $74 million in the fourth quarter of 2020, compared to an underwriting loss of $2 million in the comparable prior year period. Improved year-over-year results in our crop operations following 2019 losses from prevented planting, along with significantly improved accident year results in our aviation business and higher profitability in our transportation businesses were the primary drivers of the improved results. Catastrophe losses for this group were $6 million and $7 million in the fourth quarters of 2020 and 2019, respectively.

Fourth quarter 2020 gross written premiums in this group were up 3% and net written premiums were down 2% when compared to the 2019 fourth quarter. Growth and new business opportunities in our property & inland marine and ocean marine businesses and higher gross written premiums in our crop operations were partially offset by lower premiums in our transportation business, primarily from reduced exposures as a result of COVID-19 and premium reductions in two large national accounts. Higher cessions of certain crop insurance products contributed to the year-over-year decrease in net written premiums in the 2020 fourth quarter. Overall renewal rates in this group increased 5% on average for the fourth quarter of 2020 and 6% overall for the full year.

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The Specialty Casualty Group reported an underwriting profit of $91 million in the 2020 fourth quarter compared to $69 million in the comparable 2019 period. Higher year-over year underwriting profit in our excess and surplus and excess liability businesses and improved year-over-year results in our general liability business were partially offset by lower favorable prior year reserve development in our workers’ compensation businesses. Underwriting profitability in our workers’ compensation business overall continues to be excellent. The Specialty Casualty Group achieved a very strong 84.0% calendar year combined ratio in the fourth quarter. Catastrophe losses for this group were $2 million and $6 million in the fourth quarters of 2020 and 2019, respectively.

Gross and net written premiums decreased 7% and 16%, respectively, for the fourth 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 and net written premiums increased 9% and 3%, respectively, in the fourth quarter of 2020 when compared to the same period in 2019. Significant renewal rate increases, coupled with new business opportunities in our excess and surplus, excess liability and directors’ and officers’ (D&O) businesses contributed to this growth. The COVID-19 pandemic has resulted in reduced exposures in our workers’ compensation businesses, which when coupled with renewal rate decreases, contributed to lower year-over-year premiums, partially offsetting the growth in these other businesses. Renewal pricing for this group was up an impressive 19% in the fourth quarter. Excluding our workers’ compensation businesses, renewal rates in this group were up approximately 29%, much higher than the renewal rate increases achieved in the first three quarters of 2020.

The Specialty Financial Group reported an underwriting profit of $20 million in the fourth quarter of 2020, compared to $32 million in the fourth quarter of 2019. Lower underwriting profit in our surety and trade credit businesses, along with higher year-over-year catastrophe losses in our financial institutions business were the primary drivers of the decrease. Nearly all businesses in this group continued to achieve excellent underwriting margins. Catastrophe losses for this group were $7 million in the fourth quarter of 2020, compared to $2 million in the 2019 fourth quarter.

Gross and net written premiums increased by 2% and 4%, respectively, in the 2020 fourth quarter when compared to the same 2019 period due primarily to growth in our lender services business, which was partially offset by COVID-related economic impacts on our surety business and heightened risk selection that has reduced new business in our trade credit business. Renewal pricing in this group continued to increase each quarter in 2020, and was up 9% during the fourth quarter and 8% for the full year of 2020.

Carl Lindner III stated, “Fourth quarter and full year underwriting profitability in our Specialty P&C businesses was excellent. In fact, fourth quarter 2020 P&C core operating earnings established a new quarterly record for AFG. To achieve these results in the wake of continued uncertainty and economic disruption caused by the COVID-19 pandemic is a testament to the strength and diversity of our core P&C operating businesses. We continued to achieve broad-based pricing increases in the quarter, with exceptionally strong renewal pricing in our longer-tailed liability businesses, and are pleased to see new business opportunities emerge across our portfolio. Looking toward 2021, we expect an overall 2021 calendar year combined ratio in the range of 89% to 91%, and net written premiums to be up 5% to 9% when compared to the $5.0 billion reported in 2020. We expect the market to remain firm throughout 2021, allowing us to achieve solid renewal rate increases.”

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

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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 full year of 2019 are reconciled to previously reported annuity operating results.

Dollars in millions Three months ended<br>December 31, Twelve months ended<br>December 31,
2020 2019 2020 2019
Components of Pretax Annuity Core Operating Earnings:
Pretax core operating earnings before alternative investments $ 77 $ 84 $ 321 $ 309
Amounts previously reported as core operating, net — — — (11 )
Pretax Annuity core operating earnings before alternative investments 77 84 321 298
Alternative Investments, net of DAC 52 20 38 100
Pretax Annuity Core Operating Earnings, as reported $ 129 **** $ 104 **** $ 359 **** $ 398 ****
Alternative investments – change in market value during the period<br>(before DAC<br>impact) 4.4 % 1.9 % 4.8 % 9.7 %
Gross annuity premiums $ 1,319 $ 1,139 $ 4,087 $ 4,960

Fourth quarter 2020 pretax annuity core operating earnings of $129 million were 24% higher than the fourth quarter of 2019, reflecting significantly higher earnings from the Annuity Segment’s alternative investments. Earnings from alternative investments that are marked to market through core operating earnings vary from period to period based on the reported results of the underlying investments, and are generally reported on a quarter lag. Pretax core operating earnings before alternative investments in the fourth quarter decreased $7 million, or 8% year-over-year, reflecting an unusually high amount of one-time investment income earned in the fourth quarter of 2019 and the impact of lower interest rates on the Annuity Segment’s investment portfolio, including the impact of significantly lower short-term rates on the Annuity Segment’s $5 billion of cash and floating rate investments.

Craig Lindner stated, “AFG’s Annuity Segment achieved an operating return on equity of nearly 15% in the fourth quarter of 2020, and approximately 11% for the year. We were pleased that returns on alternative investments in the third and fourth quarters of 2020 increased sharply from the previous quarters, achieving annualized yields in those quarters of approximately 14% and 17%, respectively.”

Annuity Premiums – AFG’s Annuity Segment reported gross statutory premiums of $1.32 billion ($1.07 billion, net of reinsurance) in the fourth quarter of 2020, compared to $1.14 billion gross and net premiums in the fourth quarter of 2019, an increase of 16%. This increase was driven by higher sales of traditional fixed annuities in the Financial Institutions channel, as well as higher pension risk transfer premiums.

Craig Lindner commented, “I am extremely pleased that sales in the fourth quarter of 2020 were nearly $200 million higher than the fourth quarter of 2019. The results produced by AFG’s Annuity Segment during the quarter, combined with our recent upgrade to A+ by AM Best, demonstrate our strong business fundamentals, our pricing discipline and the success of our operating model. The Annuity Segment continued to have a very strong balance sheet at December 31, 2020, with unrealized gains in our annuity bond portfolio of $2.6 billion, a Risk-Based Capital (RBC) ratio in excess of 400%, and capital well in excess of the amounts indicated by rating agencies to maintain our ratings. Furthermore, we have the ability to lower the crediting rates on $26 billion of annuity reserves by an average of 102 basis points, giving us a great deal of flexibility in managing returns on our in-force business.”

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Annuity Non-Core Loss – In the fourth quarter of 2020, AFG reported an after-tax annuity non-core loss of $38 million ($0.44 per share loss), which primarily reflects the negative impact of lower than anticipated interest rates and the amortization of the deferred loss and other impacts of the annuity block reinsurance agreement discussed below. These losses were partially offset by the favorable impact of stronger than anticipated stock market performance in the fourth quarter.

Annuity Block Reinsurance Agreement – As previously announced, AFG’s Annuity subsidiary, Great American Life Insurance Company (“GALIC”) entered into a reinsurance agreement with Commonwealth Annuity and Life Insurance Company (“Commonwealth”), a subsidiary of Global Atlantic Financial Group Limited in October 2020. Under the terms of the agreement, GALIC ceded approximately $5.7 billion (statutory basis) of inforce traditional fixed and indexed annuities, representing approximately 15% of its in-force business, and transferred related investments to Commonwealth. This transaction created approximately $335 million of excess capital for AFG, including more than $250 million at GALIC. As a result, the Annuity Segment paid dividends totaling $215 million to AFG in the fourth quarter of 2020.

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 fourth quarter 2020 net realized gains on securities of $468 million ($5.36 per share) after tax and after deferred acquisition costs (DAC). Included in this amount is $292 million ($3.35 per share) in after-tax, after-DAC gains related to investments transferred in connection with the annuity block reinsurance transaction. This amount also included $123 million ($1.41 per share) in after-tax, after-DAC net gains to adjust equity securities that the Company continued to own at December 31, 2020, to fair value. By comparison, AFG recorded net realized gains on securities of $51 million ($0.56 per share) in the comparable 2019 period.

Unrealized gains on fixed maturities were $1.3 billion after tax and after DAC at December 31, 2020, an increase of $393 million since year-end 2019. Our portfolio continues to be high quality, with 88% 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 twelve months ended December 31, 2020, P&C net investment income was approximately 15% lower than the comparable 2019 period, reflecting lower market interest rates and lower dividend income.

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

Neon Exited Lines

As announced on September 28, 2020, AFG reached a definitive agreement to sell GAI Holding Bermuda and its subsidiaries, comprising the legal entities that own its Lloyd’s of London insurer, Neon, to RiverStone Holdings Limited. The transaction closed in the fourth quarter of 2020. AFG recorded $3 million ($0.04 per share) in non-core losses related to the sale and runoff of this business in the fourth quarter of 2020.

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Loss on Early Retirement of Debt

In November 2020, AFG redeemed $150 million of its 6% Subordinated Debentures due 2055 at 100% of principal plus accrued and unpaid interest to, but excluding, the date of redemption. The redemption resulted in after-tax non-core expenses in the fourth quarter of 2020 of approximately $4 million ($0.04 per share loss).

Sale of AFG’s Annuity Businesses to MassMutual

On January 27, 2021 AFG announced that it entered into a definitive agreement to sell its Annuity business to MassMutual for $3.5 billion in cash, subject to final closing adjustments to the extent that GAAP shareholders’ equity excluding accumulated other comprehensive income (AOCI) of the entities sold varies from $2.8 billion. GAAP shareholders’ equity (excluding AOCI) of the entities to be sold was $2.9 billion at December 31, 2020. Under the terms of the agreement, which is expected to close in the second quarter of 2021, MassMutual will acquire GALIC and its two insurance subsidiaries, Annuity Investors Life Insurance Company and Manhattan National Life Insurance Company. At December 31, 2020, GALIC and its subsidiaries had approximately $40 billion of traditional fixed and indexed annuity reserves. AFG expects to recognize an after-tax gain on the sale of $620 million to $690 million ($7.10 to $7.90 per AFG share) upon closing. Prior to completion of the transaction, AFG will acquire approximately $500 million in real estate-related partnerships and directly owned real estate from GALIC.

Beginning with the first quarter of 2021, AFG will report the results of its Annuity operations as discontinued operations, in accordance with generally accepted accounting principles (GAAP), which includes adjusting prior period results to reflect these operations as discontinued.

This transaction significantly increases AFG’s liquidity and excess capital position, as shown in the table below (in millions, except per share amounts):

Actual<br>12/31/2020 Pro Forma<br>12/31/2020 Pro Forma<br>Per Share
AFG Parent Cash $ 215 $ 3,200 $ 37
AFG Parent Real Estate-Related Investments — $ 530 $ 6
GAAP Adjusted Shareholders’ Equity* $ 5,493 $ 6,148 $ 71
AFG Excess Capital (including parent cash) $ 1,195 $ 4,400
Debt to Capital Ratio 17.6 % 16.2 %
* Excludes unrealized gains related to fixed maturities.
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The pro forma information above is shown “as if” the transaction closed on December 31, 2020, and assumes that AFG parent acquires and holds $530 million of real-estate related assets from GALIC and records an after-tax gain on the sale of the annuity business of $655 million (midpoint of estimated range).

About American Financial Group, Inc.

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

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Forward Looking Statements

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

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

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

Conference Call

The company will hold a conference call to discuss 2020 fourth quarter and full year results at 11:30 am (ET) tomorrow, Thursday, February 4, 2021. Toll-free telephone access will be available by dialing 877-459-8719 (international dial-in 424-276-6843). The conference ID for the live call is 6976276. Please dial in five to ten minutes prior to the scheduled start time of the call.

Page 9

A replay will be available approximately two hours following the completion of the call and will remain available until 11:59 pm (ET) on February 11, 2021. To listen to the replay, dial 1-855-859-2056 (international dial-in 404-537-3406) and provide the conference ID 6976276.

The conference call and accompanying webcast slides will also be broadcast live over the Internet. To access the event, click on 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 February 11, 2021 at 11:59 p.m. (ET).

Contact:

Diane P. Weidner, IRC

Vice President – Investor & Media Relations

513-369-5713

Websites:

www.AFGinc.com

www.GreatAmericanInsuranceGroup.com

(Financial summaries follow)

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

AFG2021-06

Page 10

AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES

SUMMARY OF EARNINGS AND SELECTED BALANCE SHEET DATA

(In Millions, Except Per Share Data)

Three months ended<br>December 31, Twelve months ended<br>December 31,
2020 2019 2020 2019
Revenues
P&C insurance net earned premiums $ 1,325 $ 1,370 $ 5,099 $ 5,185
Net investment income 548 593 2,132 2,303
Realized gains on:
Securities 591 65 289 287
Subsidiaries 53 — 23 —
Income of managed investment entities:
Investment income 47 63 201 269
Gain (loss) on change in fair value of assets/liabilities 8 (14 ) (39 ) (30 )
Other income 51 53 204 223
Total revenues 2,623 2,130 7,909 8,237
Costs and expenses
P&C insurance losses & expenses 1,220 1,362 4,896 4,996
Annuity and supplemental insurance benefits & expenses 343 323 1,498 1,404
Interest charges on borrowed money 24 18 88 68
Expenses of managed investment entities 32 52 149 220
Other expenses 120 116 430 441
Total costs and expenses 1,739 1,871 7,061 7,129
Earnings before income taxes 884 259 848 1,108
Provision for income taxes 190 68 127 239
Net earnings, including noncontrolling interests 694 191 721 869
Less: Net earnings (loss) attributable to noncontrolling interests 2 (20 ) (11 ) (28 )
Net earnings attributable to shareholders $ 692 $ 211 $ 732 $ 897
Diluted earnings per Common Share $ 7.93 $ 2.31 $ 8.20 $ 9.85
Average number of diluted shares 87.2 91.3 89.2 91.0
Selected Balance Sheet Data: December 31,<br>2020 December 31,<br>2019
--- --- --- --- ---
Total cash and investments $ 52,502 $ 55,252
Long-term debt $ 1,963 $ 1,473
Shareholders’ equity^(b)^ $ 6,789 $ 6,269
Shareholders’ equity (excluding unrealized gains/losses related to fixed maturities)^(b)^ $ 5,493 $ 5,390
Book value per share $ 78.62 $ 69.43
Book value per share (excluding unrealized gains/losses related to fixed maturities) $ 63.61 $ 59.70
Common Shares Outstanding 86.3 90.3

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

Page 11

AMERICAN FINANCIAL GROUP, INC.

SPECIALTY P&C OPERATIONS

(Dollars in Millions)

Three months ended<br>December 31, Pct.<br>Change Twelve months ended<br>December 31, Pct.<br>Change
2020 2019 2020 2019
Gross written premiums $ 1,707 $ 1,749 (2 %) $ 6,995 $ 7,299 (4 %)
Net written premiums $ 1,216 $ 1,313 (7 %) $ 4,992 $ 5,342 (7 %)
Ratios (GAAP):
Loss & LAE ratio 58.6 % 63.2 % 60.9 % 61.5 %
Underwriting expense ratio 27.6 % 30.3 % 30.4 % 32.2 %
Specialty Combined Ratio 86.2 % 93.5 % 91.3 % 93.7 %
Combined Ratio – P&C Segment 91.6 % 99.1 % 95.5 % 95.8 %
SupplementalInformation:^(c)^
Gross Written Premiums:
Property & Transportation $ 647 $ 628 3 % $ 2,813 $ 2,759 2 %
Specialty Casualty 865 929 (7 %) 3,444 3,768 (9 %)
Specialty Financial 195 192 2 % 738 772 (4 %)
$ 1,707 $ 1,749 (2 %) $ 6,995 $ 7,299 (4 %)
Net Written Premiums:
Property & Transportation $ 440 $ 449 (2 %) $ 1,887 $ 1,876 1 %
Specialty Casualty 565 669 (16 %) 2,304 2,701 (15 %)
Specialty Financial 163 156 4 % 604 617 (2 %)
Other 48 39 23 % 197 148 33 %
$ 1,216 $ 1,313 (7 %) $ 4,992 $ 5,342 (7 %)
Combined Ratio (GAAP):
Property & Transportation 85.8 % 100.4 % 90.4 % 95.7 %
Specialty Casualty 84.0 % 89.7 % 90.0 % 93.3 %
Specialty Financial 86.8 % 79.6 % 91.8 % 85.0 %
Aggregate Specialty Group 86.2 % 93.5 % 91.3 % 93.7 %
Three months ended<br>December 31, Twelve months ended<br>December 31,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2020 2019 2020 2019
Reserve Development (Favorable)/Adverse:
Property & Transportation $ (29 ) $ (18 ) $ (107 ) $ (67 )
Specialty Casualty (6 ) (25 ) (97 ) (88 )
Specialty Financial (6 ) (14 ) (28 ) (38 )
Other Specialty 9 4 19 6
Specialty Group (32 ) (53 ) (213 ) (187 )
Special A&E Reserve Charge – P&C<br>Run-off — — 47 18
Neon Exited Lines and Other 24 8 39 26
Total Reserve Development $ (8 ) $ (45 ) $ (127 ) $ (143 )
Points on Combined Ratio:
Property & Transportation (5.6 ) (3.5 ) (5.7 ) (3.6 )
Specialty Casualty (1.1 ) (3.8 ) (4.3 ) (3.4 )
Specialty Financial (3.6 ) (9.2 ) (4.5 ) (6.3 )
Aggregate Specialty Group (2.4 ) (3.8 ) (4.4 ) (3.7 )
Total P&C Segment (0.6 ) (3.3 ) (2.5 ) (2.8 )

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

Page 12

AMERICAN FINANCIAL GROUP, INC.

ANNUITY SEGMENT

(Dollarsin Millions)

Components of Gross Statutory Premiums

Three months ended<br>December 31, Pct.<br>Change Twelve months ended<br>December 31, Pct.<br>Change
2020 2019 2020 2019
Annuity Premiums:
Financial Institutions $ 728 $ 629 16 % $ 2,268 $ 2,766 (18 %)
Retail 173 195 (11 %) 690 1,063 (35 %)
Broker-Dealer 115 116 (1 %) 484 689 (30 %)
Pension Risk Transfer 274 158 73 % 499 257 94 %
Education Market 25 36 (31 %) 129 164 (21 %)
Variable Annuities 4 5 (20 %) 17 21 (19 %)
Total Gross Annuity Premiums $ 1,319 $ 1,139 16 % $ 4,087 $ 4,960 (18 %)

Components of Pretax Annuity Core Operating Earnings

Three months ended<br>December 31, Pct.<br>Change Twelve months ended<br>December 31, Pct.<br>Change
2020 2019 2020 2019
Revenues:
Net investment income $ 368 $ 435 (15 %) $ 1,635 $ 1,682 (3 %)
Other income 36 30 20 % 136 119 14 %
Total revenues 404 465 (13 %) 1,771 1,801 (2 %)
Costs and Expenses:
Annuity benefits 242 285 (15 %) 1,085 1,107 (2 %)
Acquisition expenses 59 62 (5 %) 239 246 (3 %)
Other expenses 26 34 (24 %) 126 139 (9 %)
Total costs and expenses 327 381 (14 %) 1,450 1,492 (3 %)
Annuity core operating earnings before items below 77 84 (8 %) 321 309 4 %
Amounts previously reported as core — — nm — (11 ) nm
Alternative investments
Marked to market, net of DAC 52 20 nm 38 100 nm
Pretax Annuity Core Operating Earnings $ 129 $ 104 24 % $ 359 $ 398 (10 %)

Fixed Annuity Spread Information*

Three months ended<br>December 31, Twelve months ended<br>December 31,
2020 2019 2020 2019
Core net interest spread before alternative investments 1.59 % 1.71 % 1.57 % 1.69 %
Net Interest Spread 2.28 % 1.94 % 1.74 % 1.98 %
Net spread earned before alternative investments 0.83 % 0.87 % 0.81 % 0.82 %
Net spread earned 1.42 % 1.07 % 0.91 % 1.08 %
* Excludes fixed annuity portion of variable annuity business.
--- ---

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

Page 13

AMERICAN FINANCIAL GROUP, INC.

Notes to Financial Schedules

a) Components of core net operating earnings (in millions):
Three months ended<br>December 31, Twelve months ended<br>December 31,
--- --- --- --- --- --- --- --- --- --- --- --- ---
2020 2019 2020 2019
Core Operating Earnings before Income Taxes:
P&C insurance segment $ 274 $ 199 $ 776 $ 753
Annuity segment 129 104 359 409
Annuity results previously reported as operating earnings — — — (11 )
Interest and other corporate expenses (57 ) (50 ) (189 ) (174 )
Core operating earnings before income taxes 346 253 946 977
Related income taxes 77 50 194 193
Core net operating earnings $ 269 $ 203 $ 752 $ 784
b) Shareholders’ Equity at December 31, 2020 includes $1.3 billion ($14.54 per share) in<br>unrealized after-tax, after- DAC gains on fixed maturities and $41 million ($0.47 per share) in unrealized after-tax,<br>after-DAC gains on fixed maturity-related cash flow hedges. Shareholders’ Equity at December 31, 2019 includes $862 million ($9.54 per share) in unrealized<br>after-tax, after-DAC gains on fixed maturities and $17 million ($0.19 per share) in unrealized after-tax, after-DAC gains on fixed maturity-related cash flow hedges.
--- ---
c) Supplemental Notes:
--- ---
• Property & Transportation includes primarily physical damage and liability<br>coverage for buses and trucks, inland and ocean marine, agricultural-related products and other commercial property coverages.
--- ---
• Specialty Casualty includes primarily excess and surplus, general liability, executive liability,<br>professional liability, umbrella and excess liability, specialty coverages in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance.<br>
--- ---
• Specialty Financial includes risk management insurance programs for lending and leasing institutions<br>(including equipment leasing and collateral and lender-placed mortgage property insurance), surety and fidelity products and trade credit insurance.
--- ---
• Other includes an internal reinsurance facility.
--- ---

Page 14

EX-99.2

Exhibit 99.2

American Financial Group, Inc.
Investor Supplement - Fourth Quarter 2020
February 3, 2021
American Financial Group, Inc.
Corporate Headquarters
Great American Insurance Group Tower
301 E Fourth Street
Cincinnati, OH 45202
513 579 6739
American Financial Group, Inc.<br><br><br>Table of Contents - Investor Supplement - Fourth Quarter 2020
---
Section Page
--- ---
Table of Contents - Investor Supplement - Fourth 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
Annuity Non-Core Earnings (Losses) 17
Reconciliation from Core to GAAP Annuity Pretax Earnings 18
Consolidated Balance Sheet / Book Value / Debt
Consolidated Balance Sheet 19
Book Value Per Share and Price / Book Summary 20
Capitalization 21
Additional Supplemental Information 22
Consolidated Investment Supplement
Total Cash and Investments 23
Net Investment Income 24
Insurance Companies’ Alternative Investments 25
Fixed Maturities - By Security Type - AFG Consolidated 26
Fixed Maturities - By Security Type Portfolio 27
Fixed Maturities - Credit Rating 28
Mortgage-Backed Securities - AFG Consolidated 29
Mortgage-Backed Securities Portfolio 30
Appendix
--- --- ---
A. Components of Core Operating Earnings As Reported 31
B. Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2020 32
C. Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2019 33
D. Corporate Securities by Credit Rating & NAIC Designation by Industry 12/31/2020 34
E. Corporate Securities by Credit Rating & NAIC Designation by Industry 12/31/2019 35
F. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br>12/31/2020 36
G. Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br>12/31/2019 37
H. Real Estate-Related Investments 12/31/2020 38
I. Real Estate-Related Investments 12/31/2019 39

Page 2

American Financial Group, Inc.<br><br><br>Financial Highlights<br> <br>(in millions, except per share<br>information)
Three Months Ended Twelve Months End
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Highlights
Net earnings (loss) $ 692 $ 164 $ 177 $ (301 ) $ 211 $ 732 $ 897
Core net operating earnings 269 217 95 171 203 752 784
Core net operating earnings before alternative investments marked to market 196 163 139 178 173 676 647
Total assets 73,566 73,110 70,867 67,643 70,130 73,566 70,130
Adjusted shareholders’ equity (a) 5,493 5,087 5,049 4,987 5,390 5,493 5,390
Property and Casualty net written premiums 1,216 1,488 1,123 1,165 1,313 4,992 5,342
Gross Annuity statutory premiums 1,319 871 687 1,210 1,139 4,087 4,960
Net Annuity statutory premiums 1,073 703 609 1,210 1,139 3,595 4,960
Per share data
Diluted earnings (loss) per share $ 7.93 $ 1.86 $ 1.97 $ (3.34 ) $ 2.31 $ 8.20 $ 9.85
Core net operating earnings per share 3.09 2.45 1.05 1.88 2.22 8.44 8.62
Core net operating earnings per share before alternative investments marked to market 2.25 1.84 1.53 1.96 1.90 7.58 7.11
Adjusted book value per share (a) 63.61 58.29 56.95 55.52 59.70 63.61 59.70
Cash dividends per common share 2.5000 0.4500 0.4500 0.4500 2.2500 3.8500 4.9500
Financial ratios
Annualized return on equity (b) 52.1 % 12.9 % 14.1 % (23.1 %) 15.6 % 14.0 % 17.1 %
Annualized core operating return on equity (b) 20.3 % 17.1 % 7.5 % 13.2 % 15.0 % 14.4 % 14.9 %
Property and Casualty combined ratio - Specialty:
Loss & LAE ratio 58.6 % 63.8 % 62.6 % 58.5 % 63.2 % 60.9 % 61.5 %
Underwriting expense ratio 27.6 % 28.3 % 32.6 % 33.7 % 30.3 % 30.4 % 32.2 %
Combined ratio - Specialty 86.2 % 92.1 % 95.2 % 92.2 % 93.5 % 91.3 % 93.7 %
Net interest spread on fixed annuities - before alternative investments marked to market 1.59 % 1.51 % 1.60 % 1.59 % 1.71 % 1.57 % 1.69 %
Alternative investments marked to market 0.69 % 0.45 % (0.36 %) (0.06 %) 0.23 % 0.17 % 0.29 %
Net interest spread on fixed annuities - including alternative investments marked to<br>market 2.28 % 1.96 % 1.24 % 1.53 % 1.94 % 1.74 % 1.98 %
Net spread earned on fixed annuities:
Core operating - before alternative investments marked to market 0.83 % 0.80 % 0.80 % 0.81 % 0.87 % 0.81 % 0.82 %
Alternative investments marked to market, net of DAC 0.59 % 0.39 % (0.41 %) (0.12 %) 0.20 % 0.10 % 0.26 %
Core operating 1.42 % 1.19 % 0.39 % 0.69 % 1.07 % 0.91 % 1.08 %
(a) Excludes unrealized gains related to fixed maturity investments, a reconciliation to the GAAP measure is on<br>page 20.
--- ---
(b) Excludes accumulated other comprehensive income.
--- ---

Page 3

American Financial Group, Inc.<br><br><br>Summary of Earnings<br> <br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Property and Casualty Insurance
Underwriting profit $ 163 $ 103 $ 52 $ 88 $ 88 $ 406 $ 306
Net investment income 122 111 72 99 120 404 472
Other expense (11 ) (9 ) (8 ) (6 ) (9 ) (34 ) (25 )
Property and Casualty Insurance operating earnings 274 205 116 181 199 776 753
Annuity operating earnings 129 121 42 67 104 359 398
Interest expense of parent holding companies (24 ) (24 ) (23 ) (17 ) (18 ) (88 ) (68 )
Other expense (33 ) (28 ) (20 ) (20 ) (32 ) (101 ) (106 )
Pretax core operating earnings 346 274 115 211 253 946 977
Income tax expense 77 57 20 40 50 194 193
Core net operating earnings **** 269 **** **** 217 **** **** 95 **** **** 171 **** **** 203 **** **** 752 **** **** 784 ****
Non-core items, net of tax:
Realized gains (losses) on securities 468 35 161 (435 ) 51 229 227
Annuity non-core earnings (losses) (38 ) (34 ) (47 ) (30 ) 19 (149 ) (29 )
Special A&E charges:
Property and Casualty Insurance run-off<br>operations — (37 ) — — — (37 ) (14 )
Former Railroad and Manufacturing operations — (17 ) — — — (17 ) (9 )
Neon exited lines (3 ) 3 (32 ) (7 ) (58 ) (39 ) (58 )
Other non-core items (4 ) (3 ) — — (4 ) (7 ) (4 )
Net earnings (loss) $ 692 **** $ 164 **** $ 177 **** $ (301 ) $ 211 **** $ 732 **** $ 897 ****

Page 4

American Financial Group, Inc.<br><br><br>Earnings Per Share Summary<br> <br>(in millions, except per share<br>information)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Core net operating earnings $ 269 **** $ 217 **** $ 95 **** $ 171 **** $ 203 **** $ 752 **** $ 784 ****
Net earnings (loss) $ 692 **** $ 164 **** $ 177 **** $ (301 ) $ 211 **** $ 732 **** $ 897 ****
Average number of diluted shares - core 87.156 88.546 89.997 91.138 91.274 89.202 91.024
Average number of diluted shares - net 87.156 88.546 89.997 90.295 91.274 89.202 91.024
Diluted earnings per share:
Core net operating earnings per share $ 3.09 **** $ 2.45 **** $ 1.05 **** $ 1.88 **** $ 2.22 **** $ 8.44 **** $ 8.62 ****
Realized gains (losses) on securities 5.36 0.40 1.80 (4.81 ) 0.56 2.56 2.47
Annuity non-core earnings (losses) (0.44 ) (0.38 ) (0.52 ) (0.34 ) 0.21 (1.67 ) (0.31 )
Special A&E charges:
Property and Casualty Insurance run-off<br>operations — (0.42 ) — — — (0.42 ) (0.15 )
Former Railroad and Manufacturing operations — (0.19 ) — — — (0.19 ) (0.10 )
Neon exited lines (0.04 ) 0.03 (0.36 ) (0.07 ) (0.64 ) (0.45 ) (0.64 )
Other non-core items (0.04 ) (0.03 ) — — (0.04 ) (0.07 ) (0.04 )
Diluted earnings (loss) per share $ 7.93 **** $ 1.86 **** $ 1.97 **** $ (3.34 ) $ 2.31 **** $ 8.20 **** $ 9.85 ****

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 Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Property and Transportation $ 74 $ 47 $ 33 $ 27 $ (2 ) $ 181 $ 79
Specialty Casualty 91 53 27 52 69 223 175
Specialty Financial 20 13 — 17 32 50 92
Other Specialty (6 ) (9 ) (6 ) (7 ) (10 ) (28 ) (21 )
Underwriting profit — Specialty **** 179 **** **** 104 **** **** 54 **** **** 89 **** **** 89 **** **** 426 **** **** 325 ****
Other core charges, included in loss and LAE (16 ) (1 ) (2 ) (1 ) (1 ) (20 ) (19 )
Underwriting profit — Core **** 163 **** **** 103 **** **** 52 **** **** 88 **** **** 88 **** **** 406 **** **** 306 ****
Special A&E charges, included in loss and LAE — (47 ) — — — (47 ) (18 )
Neon exited lines (a) (53 ) (38 ) (43 ) (1 ) (76 ) (135 ) (76 )
Underwriting profit (loss) — Property and Casualty Insurance $ 110 **** $ 18 **** $ 9 **** $ 87 **** $ 12 **** $ 224 **** $ 212 ****
Included in results above:
COVID-19 related losses $ — $ — $ 105 $ 10 $ — $ 115 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ (3 ) $ 5 $ — $ — $ 1 $ 2 $ 1
Catastrophe loss 41 52 26 9 14 128 60
Total current accident year catastrophe losses $ 38 $ 57 $ 26 $ 9 $ 15 $ 130 $ 61
Prior year loss reserve development (favorable) / adverse $ (8 ) $ — $ (77 ) $ (42 ) $ (45 ) $ (127 ) $ (143 )
Combined ratio:
Property and Transportation 85.8 % 91.9 % 91.7 % 92.9 % 100.4 % 90.4 % 95.7 %
Specialty Casualty 84.0 % 90.7 % 94.9 % 90.7 % 89.7 % 90.0 % 93.3 %
Specialty Financial 86.8 % 91.6 % 100.4 % 89.1 % 79.6 % 91.8 % 85.0 %
Other Specialty 116.9 % 115.6 % 114.2 % 117.7 % 122.5 % 116.1 % 113.3 %
Combined ratio — Specialty **** 86.2 % **** 92.1 % **** 95.2 % **** 92.2 % **** 93.5 % **** 91.3 % **** 93.7 %
Other core charges 1.2 % 0.1 % 0.2 % 0.1 % 0.1 % 0.5 % 0.4 %
Neon exited lines charge 4.2 % 3.1 % 3.8 % 0.5 % 5.5 % 2.7 % 1.4 %
Special A&E charges 0.0 % 3.5 % 0.0 % 0.0 % 0.0 % 1.0 % 0.3 %
Combined ratio **** 91.6 % **** 98.8 % **** 99.2 % **** 92.8 % **** 99.1 % **** 95.5 % **** 95.8 %
P&C combined ratio excl. COVID-19 related losses,<br>catastrophe losses, and prior year loss reserve development 89.1 % 95.0 % 94.8 % 94.6 % 101.4 % 93.3 % 97.4 %
Loss and LAE components — property and casualty insurance
Current accident year, excluding COVID-19 related and<br>catastrophe losses 60.1 % 66.0 % 60.7 % 60.3 % 68.9 % 61.9 % 64.6 %
COVID-19 related losses 0.0 % 0.0 % 8.8 % 0.8 % 0.0 % 2.2 % 0.0 %
Current accident year catastrophe losses 3.1 % 3.8 % 2.1 % 0.8 % 1.0 % 2.5 % 1.2 %
Prior accident year loss reserve development (0.6 %) 0.0 % (6.5 %) (3.4 %) (3.3 %) (2.5 %) (2.8 %)
Loss and LAE ratio **** 62.6 % **** 69.8 % **** 65.1 % **** 58.5 % **** 66.6 % **** 64.1 % **** 63.0 %
(a) In the fourth quarter of 2020, AFG recorded $55 million in<br>non-core losses from Neon’s operations and a $1 million reduction in the estimated tax benefit related to the sale of Neon, partially offset by a $53 million favorable adjustment to the<br>estimated loss on sale recorded in Q3.
--- ---

Page 6

American Financial Group, Inc.<br><br><br>Specialty — Underwriting Results (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Gross written premiums $ 1,707 $ 2,223 $ 1,539 $ 1,526 $ 1,749 $ 6,995 $ 7,299
Ceded reinsurance premiums (491 ) (735 ) (416 ) (361 ) (436 ) (2,003 ) (1,957 )
Net written premiums 1,216 1,488 1,123 1,165 1,313 4,992 5,342
Change in unearned premiums 83 (149 ) — (27 ) 57 (93 ) (157 )
Net earned premiums 1,299 1,339 1,123 1,138 1,370 4,899 5,185
Loss and LAE 762 855 703 666 865 2,986 3,188
Underwriting expense 358 380 366 383 416 1,487 1,672
Underwriting profit $ 179 **** $ 104 **** $ 54 **** $ 89 **** $ 89 **** $ 426 **** $ 325 ****
Included in results above:
COVID-19 related losses $ — $ — $ 85 $ 10 $ — $ 95 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ (3 ) $ 5 $ — $ — $ 1 $ 2 $ 1
Catastrophe loss 20 36 26 9 14 91 60
Total current accident year catastrophe losses $ 17 $ 41 $ 26 $ 9 $ 15 $ 93 $ 61
Prior year loss reserve development (favorable) / adverse $ (32 ) $ (48 ) $ (85 ) $ (48 ) $ (53 ) $ (213 ) $ (187 )
Combined ratio:
Loss and LAE ratio 58.6 % 63.8 % 62.6 % 58.5 % 63.2 % 60.9 % 61.5 %
Underwriting expense ratio 27.6 % 28.3 % 32.6 % 33.7 % 30.3 % 30.4 % 32.2 %
Combined ratio **** 86.2 % **** 92.1 % **** 95.2 % **** 92.2 % **** 93.5 % **** 91.3 % **** 93.7 %
Specialty combined ratio excl. COVID-19 related losses,<br>catastrophe losses, and prior year loss reserve development 87.1 % 93.1 % 92.9 % 94.7 % 96.3 % 91.9 % 96.2 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and<br>catastrophe losses 59.5 % 64.8 % 60.3 % 61.0 % 66.0 % 61.5 % 64.0 %
COVID-19 related losses 0.0 % 0.0 % 7.6 % 0.9 % 0.0 % 1.9 % 0.0 %
Current accident year catastrophe losses 1.5 % 2.7 % 2.3 % 0.8 % 1.0 % 1.9 % 1.2 %
Prior accident year loss reserve development (2.4 %) (3.7 %) (7.6 %) (4.2 %) (3.8 %) (4.4 %) (3.7 %)
Loss and LAE ratio **** 58.6 % **** 63.8 % **** 62.6 % **** 58.5 % **** 63.2 % **** 60.9 % **** 61.5 %

Page 7

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

All values are in US Dollars.

Page 8

American Financial Group, Inc.<br><br><br>Specialty Casualty — Underwriting Results (GAAP)<br><br><br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Gross written premiums $ 978 $ 752 $ 849 $ 929 $ 3,444 $ 3,768
Ceded reinsurance premiums ) (336 ) (241 ) (263 ) (260 ) (1,140 ) (1,067 )
Net written premiums 642 511 586 669 2,304 2,701
Change in unearned premiums (82 ) 36 (30 ) 7 (69 ) (104 )
Net earned premiums 560 547 556 676 2,235 2,597
Loss and LAE 352 367 340 402 1,396 1,586
Underwriting expense 155 153 164 205 616 836
Underwriting profit **** $ 53 **** $ 27 **** $ 52 **** $ 69 **** $ 223 **** $ 175 ****
Included in results above:
COVID-19 related losses (1 ) $ 52 $ 7 $ — $ 60 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium (3) $ 5 $ — $ — $ 1 $ 2 $ 1
Catastrophe loss 3 6 — 5 14 17
Total current accident year catastrophe losses $ 8 $ 6 $ — $ 6 $ 16 $ 18
Prior year loss reserve development (favorable) / adverse ) $ (16 ) $ (51 ) $ (24 ) $ (25 ) $ (97 ) $ (88 )
Combined ratio:
Loss and LAE ratio % 62.9 % 67.1 % 61.1 % 59.4 % 62.5 % 61.1 %
Underwriting expense ratio % 27.8 % 27.8 % 29.6 % 30.3 % 27.5 % 32.2 %
Combined ratio % **** 90.7 % **** 94.9 % **** 90.7 % **** 89.7 % **** 90.0 % **** 93.3 %
Combined ratio excl. COVID-19 related losses, catastrophe<br>losses, and prior year loss reserve development % 92.9 % 93.8 % 93.6 % 92.7 % 91.0 % 96.0 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and<br>catastrophe losses % 65.1 % 66.0 % 64.0 % 62.4 % 63.5 % 63.8 %
COVID-19 related losses % (0.1 %) 9.5 % 1.3 % 0.0 % 2.7 % 0.0 %
Current accident year catastrophe losses % 0.8 % 0.9 % 0.0 % 0.8 % 0.6 % 0.7 %
Prior accident year loss reserve development %) (2.9 %) (9.3 %) (4.2 %) (3.8 %) (4.3 %) (3.4 %)
Loss and LAE ratio % **** 62.9 % **** 67.1 % **** 61.1 % **** 59.4 % **** 62.5 % **** 61.1 %

All values are in US Dollars.

Page 9

American Financial Group, Inc.<br><br><br>Specialty Financial — Underwriting Results (GAAP)<br><br><br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Gross written premiums $ 195 $ 184 $ 176 $ 183 $ 192 $ 738 $ 772
Ceded reinsurance premiums (32 ) (31 ) (37 ) (34 ) (36 ) (134 ) (155 )
Net written premiums 163 153 139 149 156 604 617
Change in unearned premiums (5 ) 2 5 7 (4 ) 9 (7 )
Net earned premiums 158 155 144 156 152 613 610
Loss and LAE 56 62 65 59 40 242 192
Underwriting expense 82 80 79 80 80 321 326
Underwriting profit $ 20 **** $ 13 **** $ — **** $ 17 **** $ 32 **** $ 50 **** $ 92 ****
Included in results above:
COVID-19 related losses $ (3 ) $ (1 ) $ 30 $ — $ — $ 26 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ — $ — $ — $ — $ —
Catastrophe loss 7 13 5 1 2 26 10
Total current accident year catastrophe losses $ 7 $ 13 $ 5 $ 1 $ 2 $ 26 $ 10
Prior year loss reserve development (favorable) / adverse $ (6 ) $ (9 ) $ (11 ) $ (2 ) $ (14 ) $ (28 ) $ (38 )
Combined ratio:
Loss and LAE ratio 35.6 % 39.9 % 44.9 % 38.0 % 26.1 % 39.5 % 31.5 %
Underwriting expense ratio 51.2 % 51.7 % 55.5 % 51.1 % 53.5 % 52.3 % 53.5 %
Combined ratio **** 86.8 % **** 91.6 % **** 100.4 % **** 89.1 % **** 79.6 % **** 91.8 % **** 85.0 %
Combined ratio excl. COVID-19 related losses, catastrophe<br>losses, and prior year loss reserve development 87.7 % 89.5 % 83.7 % 89.5 % 87.7 % 87.7 % 89.7 %
Loss and LAE components:
Current accident year, excluding COVID-19 related and<br>catastrophe losses 36.5 % 37.8 % 28.2 % 38.4 % 34.2 % 35.4 % 36.2 %
COVID-19 related losses (1.8 %) (0.8 %) 21.1 % 0.1 % 0.0 % 4.3 % 0.0 %
Current accident year catastrophe losses 4.5 % 8.6 % 3.6 % 0.6 % 1.1 % 4.3 % 1.6 %
Prior accident year loss reserve development (3.6 %) (5.7 %) (8.0 %) (1.1 %) (9.2 %) (4.5 %) (6.3 %)
Loss and LAE ratio **** 35.6 % **** 39.9 % **** 44.9 % **** 38.0 % **** 26.1 % **** 39.5 % **** 31.5 %

Page 10

American Financial Group, Inc.<br><br><br>Other Specialty - Underwriting Results (GAAP)<br><br><br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Gross written premiums $ — $ — $ — $ — $ — $ — $ —
Ceded reinsurance premiums 48 58 47 44 39 197 148
Net written premiums 48 58 47 44 39 197 148
Change in unearned premiums — (8 ) (5 ) (4 ) (2 ) (17 ) 2
Net earned premiums 48 50 42 40 37 180 150
Loss and LAE 40 38 32 30 31 140 113
Underwriting expense 14 21 16 17 16 68 58
Underwriting profit (loss) $ (6 ) $ (9 ) $ (6 ) $ (7 ) $ (10 ) $ (28 ) $ (21 )
Included in results above:
COVID-19 related losses $ 1 $ 1 $ — $ — $ — $ 2 $ —
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ — $ — $ — $ — $ —
Catastrophe loss 2 2 — — — 4 1
Total current accident year catastrophe losses $ 2 $ 2 $ — $ — $ — $ 4 $ 1
Prior year loss reserve development (favorable) / adverse $ 9 $ 3 $ 5 $ 2 $ 4 $ 19 $ 6
Combined ratio:
Loss and LAE ratio 80.2 % 78.6 % 76.9 % 73.9 % 83.5 % 77.6 % 75.4 %
Underwriting expense ratio 36.7 % 37.0 % 37.3 % 43.8 % 39.0 % 38.5 % 37.9 %
Combined ratio **** 116.9 % **** 115.6 % **** 114.2 % **** 117.7 % **** 122.5 % **** 116.1 % **** 113.3 %
Combined ratio excl. COVID-19 related losses, catastrophe<br>losses, and prior year loss reserve development 92.5 % 107.8 % 100.3 % 113.4 % 113.4 % 103.1 % 108.9 %

Page 11

American Financial Group, Inc.<br><br><br>Annuity Earnings<br> <br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Net investment income (a) $ 368 $ 418 $ 421 $ 428 $ 435 $ 1,635 $ 1,682
Alternative investments marked to market through core operating earnings 61 46 (37 ) (6 ) 23 64 110
Guaranteed withdrawal benefit fees 17 18 17 17 17 69 67
Policy charges and other miscellaneous income (b) 19 17 13 18 13 67 52
Total revenues 465 499 414 457 488 1,835 1,911
Annuity benefits (a) (b) 242 282 274 287 285 1,085 1,107
Acquisition expenses 68 64 62 71 65 265 256
Other expenses (a) 26 32 36 32 34 126 139
Total costs and expenses 336 378 372 390 384 1,476 1,502
Pretax Annuity core operating earnings $ 129 $ 121 $ 42 $ 67 $ 104 $ 359 $ 409
Other amounts previously reported as core operating, net (c) n/a n/a n/a n/a n/a n/a (11 )
Pretax Annuity core operating earnings - as reported $ 129 $ 121 $ 42 $ 67 $ 104 $ 359 $ 398
Components of Pretax Annuity Core Operating Earnings
Pretax annuity core operating earnings before items below $ 77 $ 81 $ 84 $ 79 $ 84 $ 321 $ 309
Other amounts previously reported as core operating, net (c) n/a n/a n/a n/a n/a n/a (11 )
Pretax annuity core operating earnings before alternative investments marked to market 77 81 84 79 84 321 298
Alternative investments marked to market, net of DAC 52 40 (42 ) (12 ) 20 38 100
Pretax Annuity core operating earnings - as reported $ 129 $ 121 $ 42 $ 67 $ 104 $ 359 $ 398
(a) The fourth quarter decreases in Net Investment Income, Annuity Benefits, and Other Expenses reflect the impact<br>of the Annuity Segment’s October 2020 block reinsurance transaction.
--- ---
(b) 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.
--- ---
(c) “Other” primarily reflects (1) the impact of fair value accounting, (2) the impact of changes in the<br>stock market on the liability for guaranteed benefits and DAC, and (3) unlocking.
--- ---

Page 12a

American Financial Group, Inc.<br><br><br>Annuity Earnings - Alternative View<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Net investment income (excluding alternative investments marked to market) (a) $ 366 $ 416 $ 418 $ 426 $ 433 $ 1,626 $ 1,673
Guaranteed withdrawal benefit fees 17 18 17 17 17 69 67
Policy charges and other miscellaneous income (b) 16 14 12 15 10 57 41
Total revenues 399 448 447 458 460 1,752 1,781
Annuity benefits (a) (b) 241 281 273 285 284 1,080 1,101
Acquisition expenses (excluding alternative investments marked to market) 58 57 57 61 61 233 240
Other expenses (a) 25 31 35 32 33 123 136
Total costs and expenses 324 369 365 378 378 1,436 1,477
Pretax Annuity core operating earnings (excluding variable annuity earnings and alternativeinvestments marked to market) **** 75 **** 79 **** 82 **** **** 80 **** **** 82 **** 316 **** 304 ****
Variable annuity earnings 2 2 2 (1 ) 2 5 5
Pretax Annuity core operating earnings (excluding alternative investments marked tomarket) **** 77 **** 81 **** 84 **** **** 79 **** **** 84 **** 321 **** 309 ****
Alternative investments marked to market, net of DAC 52 40 (42 ) (12 ) 20 38 100
Pretax annuity core operating earnings **** 129 **** 121 **** 42 **** **** 67 **** **** 104 **** 359 **** 409 ****
Other amounts previously reported as core operating, net (c) n/a n/a n/a n/a n/a n/a (11 )
Pretax Annuity core operating earnings - as reported $ 129 $ 121 $ 42 **** $ 67 **** $ 104 $ 359 $ 398 ****
(a) The fourth quarter decreases in Net Investment Income, Annuity Benefits, and Other Expenses reflect the impact<br>of the Annuity Segment’s October 2020 block reinsurance transaction.
--- ---
(b) 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.
--- ---
(c) “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 Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Detail of annuity benefits expense:
Cost of funds:
Amortization of options (a) $ 116 $ 148 $ 148 $ 150 $ 150 $ 562 $ 586
Traditional fixed annuities 57 64 64 63 62 248 244
Fixed component of fixed-indexed annuities 21 26 26 25 25 98 94
Immediate annuities 6 5 6 6 6 23 24
Pension risk transfer (PRT) 6 5 4 4 3 19 7
Federal Home Loan Bank 2 1 3 5 6 11 27
Total cost of funds 208 249 251 253 252 961 982
Guaranteed withdrawal benefit reserve 28 26 17 25 24 96 84
Amortization of sales inducements 3 2 2 2 3 9 14
Change in expected death and annuitization reserve and other 3 5 4 7 6 19 27
Total other annuity benefits 34 33 23 34 33 124 125
Total annuity benefits expense $ 242 **** $ 282 **** $ 274 **** $ 287 **** $ 285 **** $ 1,085 **** $ 1,107 ****
(a)   Amortization of options, net of DAC and reserve offsets:
Amortization of options $ 116 $ 148 $ 148 $ 150 $ 150 $ 562 $ 586
DAC and reserve offsets (58 ) (76 ) (77 ) (77 ) (77 ) (288 ) (297 )
Amortization of options, net of DAC and reserve offsets $ 58 $ 72 $ 71 $ 73 $ 73 $ 274 $ 289

Page 13

American Financial Group, Inc.<br><br><br>Core Net Spread on Fixed Annuities<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Average fixed annuity investments (at amortized cost) (a) $ 35,538 $ 40,859 $ 40,570 $ 40,073 $ 39,316 $ 39,260 $ 38,216
Average annuity benefits accumulated 35,414 41,158 40,601 40,139 39,615 39,328 38,460
Annuity benefits accumulated in excess of investments (a) $ 124 $ (299 ) $ (31 ) $ (66 ) $ (299 ) $ (68 ) $ (244 )
As % of average annuity benefits accumulated (except as noted)
Net investment income (excluding alternative investments marked to market) (as % of<br>investments) 4.12 % 4.07 % 4.13 % 4.25 % 4.40 % 4.14 % 4.38 %
Cost of funds (2.35 %) (2.42 %) (2.47 %) (2.52 %) (2.54 %) (2.44 %) (2.55 %)
Other annuity benefits, net of guaranteed withdrawal benefit fees (0.18 %) (0.14 %) (0.06 %) (0.14 %) (0.15 %) (0.13 %) (0.14 %)
Core net interest spread on fixed annuities **** 1.59 % **** 1.51 % **** 1.60 % **** 1.59 % **** 1.71 % **** 1.57 % **** 1.69 %
Policy charges and other miscellaneous income 0.18 % 0.14 % 0.11 % 0.15 % 0.11 % 0.14 % 0.11 %
Acquisition expenses (excluding alternative investments marked to market) (0.66 %) (0.55 %) (0.56 %) (0.61 %) (0.62 %) (0.59 %) (0.63 %)
Other expenses (0.28 %) (0.30 %) (0.35 %) (0.32 %) (0.33 %) (0.31 %) (0.35 %)
Core net spread earned on fixed annuities (excluding alternative investments marked tomarket) **** 0.83 % **** 0.80 % **** 0.80 % **** 0.81 % **** 0.87 % **** 0.81 % **** 0.82 %
Alternative investments marked to market, net of DAC 0.59 % 0.39 % (0.41 %) (0.12 %) 0.20 % 0.10 % 0.26 %
Core net spread earned on fixed annuities **** 1.42 % **** 1.19 % **** 0.39 % **** 0.69 % **** 1.07 % **** 0.91 % **** 1.08 %
Net spread earned on items previously reported as core operating n/a n/a n/a n/a n/a n/a (0.03 %)
Core net spread earned on fixed annuities - as reported **** 1.42 % **** 1.19 % **** 0.39 % **** 0.69 % **** 1.07 % **** 0.91 % **** 1.05 %
Average annuity benefits accumulated $ 35,414 $ 41,158 $ 40,601 $ 40,139 $ 39,615 $ 39,328 $ 38,460
Net spread earned on fixed annuities (excluding alternative investments marked to market) -<br>core 0.83 % 0.80 % 0.80 % 0.81 % 0.87 % 0.81 % 0.82 %
Earnings on fixed annuity benefits accumulated - core $ 74 **** $ 82 **** $ 82 **** $ 81 **** $ 85 **** $ 319 **** $ 314 ****
Annuity benefits accumulated in excess of investments $ 124 $ (299 ) $ (31 ) $ (66 ) $ (299 ) $ (68 ) $ (244 )
Net investment income (excluding alternative investments marked to market) (as % of<br>investments) 4.12 % 4.07 % 4.13 % 4.25 % 4.40 % 4.14 % 4.38 %
Earnings/(loss) on annuity benefits accumulated in excess of investments $ 1 **** $ (3 ) $ — **** $ (1 ) $ (3 ) $ (3 ) $ (10 )
Variable annuity earnings **** 2 **** **** 2 **** **** 2 **** **** (1 ) **** 2 **** **** 5 **** **** 5 ****
Pretax Annuity core operating earnings (excluding alternative investments marked tomarket) **** 77 **** **** 81 **** **** 84 **** **** 79 **** **** 84 **** **** 321 **** **** 309 ****
Alternative investments marked to market, net of DAC **** 52 **** **** 40 **** **** (42 ) **** (12 ) **** 20 **** **** 38 **** **** 100 ****
Pretax Annuity core operating earnings **** 129 **** **** 121 **** **** 42 **** **** 67 **** **** 104 **** **** 359 **** **** 409 ****
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 $ 129 **** $ 121 **** $ 42 **** $ 67 **** $ 104 **** $ 359 **** $ 398 ****
(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 Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Financial institutions single premium annuities - indexed $ 358 $ 332 $ 258 $ 424 $ 359 $ 1,372 $ 1,537
Financial institutions single premium annuities - fixed 370 141 98 287 270 896 1,229
Retail single premium annuities - indexed 147 134 138 172 170 591 943
Retail single premium annuities - fixed 26 17 31 25 25 99 120
Broker dealer single premium annuities - indexed 110 109 100 138 107 457 657
Broker dealer single premium annuities - fixed 5 3 2 17 9 27 32
Pension risk transfer (PRT) 274 99 23 103 158 499 257
Education market - fixed and indexed annuities 25 33 32 39 36 129 164
Subtotal fixed annuity premiums **** 1,315 **** **** 868 **** **** 682 **** **** 1,205 **** 1,134 **** 4,070 **** **** 4,939
Variable annuities 4 3 5 5 5 17 21
Total gross annuity premiums $ 1,319 **** $ 871 **** $ 687 **** $ 1,210 $ 1,139 $ 4,087 **** $ 4,960
Less: Reinsurance (246 ) (168 ) (78 ) — — (492 ) —
Total net annuity premiums $ 1,073 **** $ 703 **** $ 609 **** $ 1,210 $ 1,139 $ 3,595 **** $ 4,960
Summary by Distribution Channel:
Financial institutions $ 728 $ 473 $ 356 $ 711 $ 629 $ 2,268 $ 2,766
Retail 173 151 169 197 195 690 1,063
Broker dealer 115 112 102 155 116 484 689
Other 303 135 60 147 199 645 442
Total gross annuity premiums $ 1,319 **** $ 871 **** $ 687 **** $ 1,210 $ 1,139 $ 4,087 **** $ 4,960
Less: Reinsurance (246 ) (168 ) (78 ) — — (492 ) —
Total net annuity premiums $ 1,073 **** $ 703 **** $ 609 **** $ 1,210 $ 1,139 $ 3,595 **** $ 4,960
Summary by Product Type:
Total indexed $ 627 $ 591 $ 512 $ 753 $ 655 $ 2,483 $ 3,227
Total fixed 688 277 170 452 479 1,587 1,712
Variable 4 3 5 5 5 17 21
Total gross annuity premiums $ 1,319 **** $ 871 **** $ 687 **** $ 1,210 $ 1,139 $ 4,087 **** $ 4,960
Less: Reinsurance (246 ) (168 ) (78 ) — — (492 ) —
Total net annuity premiums $ 1,073 **** $ 703 **** $ 609 **** $ 1,210 $ 1,139 $ 3,595 **** $ 4,960

Page 15

American Financial Group, Inc.<br><br><br>Fixed Annuity Benefits Accumulated (GAAP)<br><br><br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Beginning fixed annuity reserves $ 41,374 $ 40,942 $ 40,260 $ 40,018 $ 39,212 $ 40,018 $ 36,431
Premiums 1,315 868 682 1,205 1,134 4,070 4,939
Federal Home Loan Bank (“FHLB”) advances (paydowns) (125 ) — (40 ) 200 — 35 —
Surrenders, benefits and other withdrawals (1,058 ) (844 ) (768 ) (794 ) (829 ) (3,464 ) (3,260 )
Interest and other annuity benefit expenses:
Cost of funds 208 249 251 253 252 961 982
Embedded derivative marked to market 324 245 601 (647 ) 276 523 1,100
Unlockings — (73 ) — — — (73 ) (75 )
Other 33 (13 ) (44 ) 25 (27 ) 1 (99 )
Ending fixed annuity reserves $ 42,071 **** $ 41,374 **** $ 40,942 **** $ 40,260 **** $ 40,018 **** $ 42,071 **** $ 40,018 ****
Reconciliation to annuity benefits accumulated:
Ending fixed annuity reserves $ 42,071 $ 41,374 $ 40,942 $ 40,260 $ 40,018 $ 42,071 $ 40,018
Impact of unrealized investment gains on reserves 338 394 285 38 225 338 225
Fixed component of variable annuities 164 164 165 165 163 164 163
Annuity benefits accumulated per balance sheet $ 42,573 **** $ 41,932 **** $ 41,392 **** $ 40,463 **** $ 40,406 **** $ 42,573 **** $ 40,406 ****
Estimated ceded GAAP reserves (a) (6,388 ) — — — — (6,388 ) —
Annuity benefits accumulated, net of reinsurance $ 36,185 **** $ 41,932 **** $ 41,392 **** $ 40,463 **** $ 40,406 **** $ 36,185 **** $ 40,406 ****
Annualized surrenders and other withdrawals as a % of beginning reserves 10.2 % 8.3 % 7.6 % 7.9 % 8.5 % 8.7 % 8.9 %
Rider reserves included in ending fixed annuity reserves above $ 817 **** $ 801 **** $ 680 **** $ 690 **** $ 625 **** $ 817 **** $ 625 ****
Embedded Derivative liability included in ending fixed annuity reserves above $ 3,933 **** $ 3,657 **** $ 3,675 **** $ 3,099 **** $ 3,730 **** $ 3,933 **** $ 3,730 ****
(a) Includes block and flow deal reserves.
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Page 16

American Financial Group, Inc.<br><br><br>Annuity Non-Core Earnings (Losses)<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Annuity Non-Core Earnings (Losses):
Stock market impact on:
Liability for guaranteed benefits (a) $ 10 $ 14 $ 22 (33) $ 12 $ 13 $ 34
DAC and sales inducements (b) 4 3 7 ) 4 4 11
Fair Value (FV) accounting 6 2 9 ) 8 (4 ) 23
Subtotal impact of changes in stock market 20 19 38 ) 24 13 68
Impact of changes in interest rates on FV accounting (12 ) (17 ) (100 ) (4 ) (100 ) (117
Other FIA items (9 ) 1 3 ) 4 (8 ) 3
Reinsurance (47 ) — — — (47 ) —
Unlockings — (46 ) — — (46 ) (1
Annuity Non-Core Earnings (Losses) $ (48 ) $ (43 ) $ (59 ) ) $ 24 **** $ (188 ) $ (47
Core = (11)
Reported as Non-core Non-core Non-core Non-core Non-core Non-core = (36)
Annuity Non-Core Earnings (Losses), net oftaxes $ (38 ) $ (34 ) $ (47 ) ) $ 19 **** $ (149 ) $ (29
Annuity Non-Core Net Spread Earned:
Stock market impact on:
Liability for guaranteed benefits (a) 0.11 % 0.14 % 0.22 % %) 0.12 % 0.03 % 0.09
DAC and sales inducements (b) 0.05 % 0.03 % 0.07 % %) 0.04 % 0.01 % 0.03
Fair Value (FV) accounting 0.07 % 0.02 % 0.09 % %) 0.08 % (0.01 %) 0.06
Subtotal impact of changes in stock market 0.23 % 0.19 % 0.38 % %) 0.24 % 0.03 % 0.18
Impact of changes in interest rates on FV accounting (0.14 %) (0.16 %) (0.99 %) % (0.04 %) (0.25 %) (0.31
Other FIA items (0.10 %) 0.01 % 0.03 % %) 0.04 % (0.02 %) 0.01
Reinsurance (0.53 %) 0.00 % 0.00 % % 0.00 % (0.12 %) 0.00
Unlockings 0.00 % (0.45 %) 0.00 % % 0.00 % (0.12 %) 0.00
Non-core net spread earned on fixedannuities **** (0.54 %) **** (0.41 %) **** (0.58 %) %) **** 0.24 % **** (0.48 %) **** (0.12
Core = (.03%)
Reported as Non-core Non-core Non-core Non-core Non-core Non-core =(.09%)

All values are in US Dollars.

(a) Reflects the impact of changes in the stock market on AFG’s liability for fixed-indexed annuities with<br>guaranteed benefits. Increases in the stock market will generally have a favorable earnings impact; decreases in the stock market will generally have an unfavorable impact.
(b) Reflects the impact of changes in the stock market on the current and projected lifetime profitability of<br>AFG’s annuity business. Increases in the stock market will generally have a favorable earnings impact; decreases in the stock market will generally have an unfavorable impact.
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Page 17

American Financial Group, Inc.<br><br><br>Reconciliation from Core to GAAP Annuity Pretax Earnings<br><br><br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Annuity Earnings
Core annuity operating earnings - as reported (see page 12a) $ 129 $ 121 $ 42 $ 67 $ 104 $ 359 $ 398
Annuity non-core earnings (losses) (48 ) (43 ) (59 ) (38 ) 24 (188 ) (36 )
Earnings before income taxes - GAAP $ 81 $ 78 $ (17 ) $ 29 $ 128 $ 171 $ 362
Policy Charges and Other Miscellaneous Income
Policy charges and other miscellaneous income (see page 12a) $ 19 $ 17 $ 13 $ 18 $ 13 $ 67 $ 52
Annuity non-core policy charges and other miscellaneous<br>income — (5 ) — — — (5 ) 1
Policy Charges and Other Miscellaneous Income - GAAP $ 19 $ 12 $ 13 $ 18 $ 13 $ 62 $ 53
Annuity Benefit Expense
Annuity benefits expense (see page 13) $ 242 $ 282 $ 274 $ 287 $ 285 $ 1,085 $ 1,107
Annuity non-core annuity benefits 86 (69 ) 157 (3 ) (30 ) 171 56
Annuity Benefit Expense - GAAP $ 328 $ 213 $ 431 $ 284 $ 255 $ 1,256 $ 1,163
Acquisition Expenses
Acquisition expenses (see page 12a) $ 68 $ 64 $ 62 $ 71 $ 65 $ 265 $ 256
Annuity non-core acquisition expenses (38 ) 107 (98 ) 41 6 12 (8 )
Acquisition Expenses - GAAP $ 30 $ 171 $ (36 ) $ 112 $ 71 $ 277 $ 248
Net Spread on Fixed Annuities
Core net spread earned on fixed annuities - as reported (see page 14) 1.42 % 1.19 % 0.39 % 0.69 % 1.07 % 0.91 % 1.05 %
Non-core net spread earned on fixed annuities (0.54 %) (0.41 %) (0.58 %) (0.38 %) 0.24 % (0.48 %) (0.09 %)
Net Spread on Fixed Annuities 0.88 % 0.78 % (0.19 %) 0.31 % 1.31 % 0.43 % 0.96 %

Page 18

American Financial Group, Inc.<br><br><br>Consolidated Balance Sheet<br> <br>($ in millions)
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 9/30/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Assets:
Total cash and investments $ 52,502 $ 58,087 $ 56,741 $ 53,221 $ 55,252 $ 54,207
Recoverables from reinsurers:
Property and Casualty Insurance 3,288 3,324 3,132 3,116 3,133 2,977
Fixed & Indexed Annuities 6,539 229 72 — — —
Other 265 266 272 271 282 284
Prepaid reinsurance premiums 768 862 733 708 678 781
Agents’ balances and premiums receivable 1,231 1,384 1,366 1,302 1,335 1,403
Deferred policy acquisition costs 546 497 818 1,573 1,037 964
Assets of managed investment entities 4,971 4,717 4,393 4,026 4,736 4,702
Other receivables 959 1,185 880 981 975 1,187
Variable annuity assets (separate accounts) 664 603 577 497 628 601
Other assets 1,626 1,749 1,676 1,741 1,867 1,754
Goodwill 207 207 207 207 207 207
Total assets $ 73,566 **** $ 73,110 **** $ 70,867 **** $ 67,643 **** $ 70,130 **** $ 69,067 ****
Liabilities and Equity:
Unpaid losses and loss adjustment expenses $ 10,392 $ 10,754 $ 10,321 $ 10,106 $ 10,232 $ 9,847
Unearned premiums 2,803 3,015 2,778 2,808 2,830 2,986
Annuity benefits accumulated 42,573 41,932 41,392 40,463 40,406 39,651
Life, accident and health reserves 607 609 606 607 612 613
Payable to reinsurers 807 977 746 779 814 867
Liabilities of managed investment entities 4,771 4,541 4,236 3,865 4,571 4,523
Long-term debt 1,963 2,108 1,912 1,473 1,473 1,423
Variable annuity liabilities (separate accounts) 664 603 577 497 628 601
Other liabilities 2,197 2,231 2,173 1,998 2,295 2,235
Total liabilities $ 66,777 **** $ 66,770 **** $ 64,741 **** $ 62,596 **** $ 63,861 **** $ 62,746 ****
Shareholders’ equity:
Common stock $ 86 $ 87 $ 89 $ 90 $ 90 $ 90
Capital surplus 1,281 1,283 1,299 1,309 1,307 1,292
Retained earnings 4,149 3,737 3,685 3,616 4,009 4,022
Unrealized gains — fixed maturities 1,255 1,212 1,030 16 862 920
Unrealized gains (losses) — fixed maturity-related cash flow hedges 41 41 47 44 17 25
Other comprehensive income, net of tax (23 ) (20 ) (24 ) (28 ) (16 ) (28 )
Total shareholders’ equity **** 6,789 **** **** 6,340 **** **** 6,126 **** **** 5,047 **** **** 6,269 **** **** 6,321 ****
Noncontrolling interests **** — **** **** — **** **** — **** **** — **** **** — **** **** — ****
Total liabilities and equity $ 73,566 **** $ 73,110 **** $ 70,867 **** $ 67,643 **** $ 70,130 **** $ 69,067 ****

Page 19

American Financial Group, Inc.<br><br><br>Book Value Per Share and Price / Book Summary<br> <br>(in<br>millions, except per share information)
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 9/30/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Shareholders’ equity $ 6,789 **** $ 6,340 **** $ 6,126 **** $ 5,047 **** $ 6,269 **** $ 6,321 ****
Unrealized (gains) related to fixed maturities (1,296 ) (1,253 ) (1,077 ) (60 ) (879 ) (945 )
Adjusted shareholders’ equity **** 5,493 **** **** 5,087 **** **** 5,049 **** **** 4,987 **** **** 5,390 **** **** 5,376 ****
Goodwill (207 ) (207 ) (207 ) (207 ) (207 ) (207 )
Intangibles (34 ) (34 ) (37 ) (40 ) (43 ) (45 )
Tangible adjusted shareholders’ equity $ 5,252 **** $ 4,846 **** $ 4,805 **** $ 4,740 **** $ 5,140 **** $ 5,124 ****
Common shares outstanding 86.345 87.267 88.659 89.827 90.304 90.127
Book value per share:
Book value per share $ 78.62 **** $ 72.65 **** $ 69.10 **** $ 56.18 **** $ 69.43 **** $ 70.14 ****
Adjusted (a) **** 63.61 **** **** 58.29 **** **** 56.95 **** **** 55.52 **** **** 59.70 **** **** 59.65 ****
Tangible, adjusted (b) **** 60.82 **** **** 55.53 **** **** 54.20 **** **** 52.77 **** **** 56.93 **** **** 56.84 ****
Market capitalization
AFG’s closing common share price $ 87.62 $ 66.98 $ 63.46 $ 70.08 $ 109.65 $ 107.85
Market capitalization $ 7,566 $ 5,845 $ 5,626 $ 6,295 $ 9,902 $ 9,720
Price / Adjusted book value ratio 1.38 1.15 1.11 1.26 1.84 1.81
(a) Excludes unrealized gains related to fixed maturity investments.
--- ---
(b) Excludes unrealized gains related to fixed maturity investments, goodwill and intangibles.<br>
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Page 20

American Financial Group, Inc.<br><br><br>Capitalization<br> <br>($ in millions)
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 9/30/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
AFG senior obligations $ 1,318 $ 1,318 $ 1,318 $ 1,018 $ 1,018 $ 1,018
Borrowings drawn under credit facility — — — — — —
Debt excluding subordinated debt $ 1,318 **** $ 1,318 **** $ 1,318 **** $ 1,018 **** $ 1,018 **** $ 1,018 ****
AFG subordinated debentures 675 825 625 475 475 425
Total principal amount of long-term debt $ 1,993 **** $ 2,143 **** $ 1,943 **** $ 1,493 **** $ 1,493 **** $ 1,443 ****
Shareholders’ equity 6,789 6,340 6,126 5,047 6,269 6,321
Noncontrolling interests (including redeemable NCI) — — — — — —
Less:
Unrealized (gains) related to fixed maturity investments (1,296 ) (1,253 ) (1,077 ) (60 ) (879 ) (945 )
Total adjusted capital $ 7,486 **** $ 7,230 **** $ 6,992 **** $ 6,480 **** $ 6,883 **** $ 6,819 ****
Ratio of debt to total adjusted capital:
Including subordinated debt **** 26.6 % **** 29.6 % **** 27.8 % **** 23.0 % **** 21.7 % **** 21.2 %
Excluding subordinated debt **** 17.6 % **** 18.2 % **** 18.9 % **** 15.7 % **** 14.8 % **** 14.9 %

Page 21

American Financial Group, Inc.<br><br><br>Additional Supplemental Information<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Property and Casualty Insurance
Paid Losses (GAAP) $ 758 $ 646 $ 601 $ 751 $ 727 $ 2,756 $ 2,866
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 9/30/19
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
GAAP Equity (excluding AOCI)
Property and Casualty Insurance $ 4,458 $ 4,154 $ 3,945 $ 3,800 $ 4,043 $ 4,094
Annuity 2,881 2,659 2,579 2,512 2,715 2,613
Parent and other subsidiaries (1,823 ) (1,706 ) (1,451 ) (1,297 ) (1,352 ) (1,303 )
AFG GAAP Equity (excluding AOCI) $ 5,516 $ 5,107 $ 5,073 $ 5,015 $ 5,406 $ 5,404
Allowable dividends without regulatory approval
Property and Casualty Insurance $ 416 $ 565 $ 565 $ 565 $ 565 $ 529
Annuity and Run-off 289 287 287 287 287 768
Total $ 705 **** $ 852 **** $ 852 **** $ 852 **** $ 852 **** $ 1,297 ****

Page 22

American Financial Group, Inc.<br><br><br>Total Cash and Investments<br> <br>($ in millions)
Carrying Value - December 31, 2020
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Property and<br>Casualty<br>Insurance Annuity and<br>Run-off (a) Parent and<br>Other Non-<br>Insurance Consolidate<br>CLOs Total AFG<br>Consolidated % of<br>Investment<br>Portfolio
Total cash and investments:
Cash and cash equivalents $ 1,408 $ 1,166 $ 236 $ — $ 2,810 5 %
Fixed maturities — Available for sale 9,076 34,123 8 — 43,207 82 %
Fixed maturities — Trading 24 42 — — 66 0 %
Equity securities — common stocks 438 412 72 — 922 2 %
Equity securities — perpetual preferred 379 362 — — 741 1 %
Investments accounted for using the equity method 806 1,075 — — 1,881 4 %
Mortgage loans 377 1,246 — — 1,623 3 %
Policy loans — 151 — — 151 0 %
Equity index call options — 825 — — 825 2 %
Real estate and other investments 125 297 54 (200 ) 276 1 %
Total cash and investments $ 12,633 $ 39,699 $ 370 $ (200 ) $ 52,502 **** 100 %
Carrying Value - December 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Property and<br>Casualty<br>Insurance Annuity andRun-off Parent and<br>Other Non-Insurance ConsolidateCLOs Total AFGConsolidated % of<br>Investment<br>Portfolio
Total cash and investments:
Cash and cash equivalents $ 1,387 $ 746 $ 181 $ — $ 2,314 4 %
Fixed maturities — Available for sale 8,596 37,899 10 — 46,505 84 %
Fixed maturities — Trading 59 54 — — 113 0 %
Equity securities — common stocks 664 553 66 — 1,283 3 %
Equity securities — perpetual preferred 397 257 — — 654 1 %
Investments accounted for using the equity method 703 985 — — 1,688 3 %
Mortgage loans 262 1,067 — — 1,329 2 %
Policy loans — 164 — — 164 0 %
Equity index call options — 924 — — 924 2 %
Real estate and other investments 122 265 55 (164 ) 278 1 %
Total cash and investments $ 12,190 $ 42,914 $ 312 $ (164 ) $ 55,252 **** 100 %
(a) On January 27, 2021, AFG entered into a definitive agreement to sell its annuity subsidiaries to Mass<br>Mutual (which includes the run-off life and long term care business) in a transaction that is expected to close in Q2 2021. As part of the sale of the annuity business, AFG will retain approximately<br>$500 million in real estate-related partnerships and directly owned real estate.
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Page 23

American Financial Group, Inc.<br> <br>NetInvestment Income<br> <br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Property and Casualty Insurance:
Gross Investment Income
Fixed maturities - Available for sale $ 71 $ 72 $ 75 $ 81 $ 79 $ 299 $ 310
Fixed maturities - Trading — — — 1 — 1 3
Equity securities - dividends 7 8 8 10 11 33 49
Equity securities - MTM 8 (3 ) 2 3 (1 ) 10 9
Equity in investees 27 27 (15 ) 11 21 50 64
AFG managed CLOs 6 4 — (11 ) (2 ) (1 ) 1
Other investments (a) 4 5 3 6 13 18 42
Gross investment income **** 123 **** **** 113 **** **** 73 **** **** 101 **** **** 121 **** **** 410 **** **** 478 ****
Investment expenses (1 ) (2 ) (1 ) (2 ) (1 ) (6 ) (6 )
Total net investment income $ 122 **** $ 111 **** $ 72 **** $ 99 **** $ 120 **** $ 404 **** $ 472 ****
Average cash and investments (b) $ 12,135 **** $ 11,764 **** $ 11,454 **** $ 11,457 **** $ 11,744 **** $ 11,760 **** $ 11,348 ****
Average yield (c) **** 4.02 % **** 3.77 % **** 2.51 % **** 3.46 % **** 4.09 % **** 3.44 % **** 4.16 %
Fixed Annuity
Gross Investment Income
Fixed maturities - Available for sale $ 352 $ 394 $ 402 $ 403 $ 406 $ 1,551 $ 1,574
Equity securities - dividends 6 7 8 7 8 28 34
Equity securities - MTM 14 (2 ) — 5 4 17 17
Equity in investees 34 39 (39 ) 14 24 48 90
AFG managed CLOs 13 9 2 (25 ) (5 ) (1 ) 3
Other investments (a) 19 19 14 19 23 71 81
Gross investment income **** 438 **** **** 466 **** **** 387 **** **** 423 **** **** 460 **** **** 1,714 **** **** 1,799 ****
Investment expenses (11 ) (4 ) (5 ) (3 ) (4 ) (23 ) (16 )
Total net investment income $ 427 **** $ 462 **** $ 382 **** $ 420 **** $ 456 **** $ 1,691 **** $ 1,783 ****
Average cash and investments (b) $ 35,538 **** $ 40,859 **** $ 40,570 **** $ 40,073 **** $ 39,316 **** $ 39,260 **** $ 38,216 ****
Average yield (c) **** 4.81 % **** 4.52 % **** 3.77 % **** 4.19 % **** 4.63 % **** 4.31 % **** 4.67 %
AFG consolidated net investment income:
Property & Casualty core $ 122 $ 111 $ 72 $ 99 $ 120 $ 404 $ 472
Neon exited lines non-core — 1 — (6 ) — (5 ) —
Annuity:
Fixed Annuity 427 462 382 420 456 1,691 1,783
Variable Annuity 2 2 2 2 2 8 9
Parent & other 16 9 14 (7 ) 8 32 43
Consolidate CLOs (19 ) (13 ) (2 ) 36 7 2 (4 )
Total net investment income $ 548 **** $ 572 **** $ 468 **** $ 544 **** $ 593 **** $ 2,132 **** $ 2,303 ****
(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 24

American Financial Group, Inc.<br><br><br>Insurance Companies’ Alternative Investments<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Property and Casualty Insurance:
Net Investment Income
Equity securities MTM through investment income (a) $ 8 $ (3 ) $ 2 $ 3 $ (1 ) $ 10 $ 9
Investments accounted for using the equity method (b) 27 27 (15 ) 11 21 50 64
AFG managed CLOs (eliminated in consolidation) 6 4 — (11 ) (2 ) (1 ) 1
Total Property & Casualty $ 41 **** $ 28 **** $ (13 ) $ 3 **** $ 18 **** $ 59 **** $ 74 ****
Investments
Equity securities MTM through investment income (a) $ 129 $ 109 $ 95 $ 86 $ 71 $ 129 $ 71
Investments accounted for using the equity method (b) 806 778 755 736 703 806 703
AFG managed CLOs (eliminated in consolidation) 57 46 39 40 48 57 48
Total Property & Casualty $ 992 **** $ 933 **** $ 889 **** $ 862 **** $ 822 **** $ 992 **** $ 822 ****
Annualized Yield - Property & Casualty **** 17.0 % **** 12.3 % **** (5.9 %) **** 1.4 % **** 9.2 % **** 6.6 % **** 10.3 %
Fixed Annuity:
Net Investment Income
Equity securities MTM through investment income (a) $ 14 $ (2 ) $ — $ 5 $ 4 $ 17 $ 17
Investments accounted for using the equity method (b) 34 39 (39 ) 14 24 48 90
AFG managed CLOs (eliminated in consolidation) 13 9 2 (25 ) (5 ) (1 ) 3
Total Fixed Annuity $ 61 **** $ 46 **** $ (37 ) $ (6 ) $ 23 **** $ 64 **** $ 110 ****
Investments
Equity securities MTM through investment income (a) $ 205 $ 186 $ 168 $ 160 $ 142 $ 205 $ 142
Investments accounted for using the equity method (b) 1,075 1,063 1,026 1,027 985 1,075 985
AFG managed CLOs (eliminated in consolidation) 143 129 118 120 116 143 116
Total Fixed Annuity $ 1,423 **** $ 1,378 **** $ 1,312 **** $ 1,307 **** $ 1,243 **** $ 1,423 **** $ 1,243 ****
Annualized Yield - Fixed Annuity **** 17.4 % **** 13.7 % **** (11.3 %) **** (1.9 %) **** 7.7 % **** 4.8 % **** 9.7 %
Combined:
Net Investment Income
Equity securities MTM through investment income (a) $ 22 $ (5 ) $ 2 $ 8 $ 3 $ 27 $ 26
Investments accounted for using the equity method (b) 61 66 (54 ) 25 45 98 154
AFG managed CLOs (eliminated in consolidation) 19 13 2 (36 ) (7 ) (2 ) 4
Total Combined $ 102 **** $ 74 **** $ (50 ) $ (3 ) $ 41 **** $ 123 **** $ 184 ****
Investments
Equity securities MTM through investment income (a) $ 334 $ 295 $ 263 $ 246 $ 213 $ 334 $ 213
Investments accounted for using the equity method (b) 1,881 1,841 1,781 1,763 1,688 1,881 1,688
AFG managed CLOs (eliminated in consolidation) 200 175 157 160 164 200 164
Total Combined $ 2,415 **** $ 2,311 **** $ 2,201 **** $ 2,169 **** $ 2,065 **** $ 2,415 **** $ 2,065 ****
Annualized Yield - Combined **** 17.3 % **** 13.1 % **** (9.2 %) **** (0.6 %) **** 8.3 % **** 5.5 % **** 10.0 %
(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 25

American Financial Group, Inc.<br> <br>FixedMaturities - By Security Type - AFG Consolidated<br> <br>($ in millions )
December 31, 2020 Book Value (b) Fair Value UnrealizedGain (Loss) % ofFair Value % ofInvestmentPortfolio
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
US Government and government agencies $ 232 $ 243 $ 11 0 % 0 %
States, municipalities and political subdivisions 5,264 5,748 484 13 % 11 %
Foreign government 224 232 8 0 % 0 %
Residential mortgage-backed securities 2,810 3,056 246 7 % 6 %
Commercial mortgage-backed securities 748 790 42 2 % 1 %
Collateralized loan obligations 4,543 4,553 10 11 % 9 %
Other asset-backed securities 7,120 7,223 103 17 % 14 %
Corporate and other bonds 19,493 21,428 1,935 50 % 41 %
Total AFG consolidated $ 40,434 **** $ 43,273 $ 2,839 **** **** 100 % **** 82 %
Annualized yield on available for sale fixed maturities: ****
Excluding investment expense (a) 4.02 %
Net of investment expense (a) 3.91 %
Approximate average life and duration:
Approximate average life 5.5 years
Approximate duration 3.5 years
December 31, 2019 Book Value Fair Value UnrealizedGain (Loss) % ofFair Value % 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.
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(b) Book Value is amortized cost, net of allowance for expected credit losses.
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Page 26

American Financial Group, Inc.<br> <br>FixedMaturities - By Security Type Portfolio<br> <br>($ in millions )
December 31, 2020 December 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Property and Casualty Insurance: Book Value FairValue UnrealizedGain (Loss) % ofFair Value Book Value FairValue UnrealizedGain (Loss) % ofFair Value
US Government and government agencies $ 192 $ 198 $ 6 2 % $ 165 $ 167 $ 2 2 %
States, municipalities and political subdivisions 2,196 2,312 116 25 % 2,524 2,614 90 30 %
Foreign government 193 197 4 2 % 178 177 (1 ) 2 %
Residential mortgage-backed securities 858 907 49 10 % 990 1,051 61 12 %
Commercial mortgage-backed securities 89 92 3 1 % 89 92 3 1 %
Collateralized loan obligations 1,062 1,062 — 12 % 906 901 (5 ) 11 %
Other asset-backed securities 2,033 2,047 14 23 % 1,727 1,741 14 20 %
Corporate and other bonds 2,200 2,285 85 25 % 1,861 1,912 51 22 %
Property and Casualty Insurance $ 8,823 **** $ 9,100 $ 277 **** 100 % $ 8,440 **** $ 8,655 $ 215 **** **** 100 %
Annualized yield on available for sale fixed maturities: ****
Excluding investment expense (a) 3.31 % 3.94 %
Net of investment expense (a) 3.24 % 3.90 %
Tax equivalent, net of investment expense (b) 3.38 % 4.05 %
Approximate average life and duration:
Approximate average life 4 years 4.5 years
Approximate duration 3 years 3 years
December 31, 2020 December 31, 2019
Annuity and Run-off (c): Book Value FairValue UnrealizedGain (Loss) % ofFair Value Book Value FairValue UnrealizedGain (Loss) % ofFair Value
US Government and government agencies $ 40 $ 45 $ 5 0 % $ 38 $ 46 $ 8 0 %
States, municipalities and political subdivisions 3,068 3,436 368 10 % 4,104 4,373 269 12 %
Foreign government 31 35 4 0 % 31 34 3 0 %
Residential mortgage-backed securities 1,951 2,141 190 7 % 1,909 2,100 191 6 %
Commercial mortgage-backed securities 659 698 39 2 % 807 835 28 2 %
Collateralized loan obligations 3,481 3,491 10 10 % 3,401 3,379 (22 ) 9 %
Other asset-backed securities 5,087 5,176 89 15 % 5,265 5,387 122 14 %
Corporate and other bonds 17,293 19,143 1,850 56 % 20,640 21,799 1,159 57 %
Total Annuity and Run-off $ 31,610 **** $ 34,165 $ 2,555 **** 100 % $ 36,195 **** $ 37,953 $ 1,758 **** **** 100 %
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a) 4.54 % 4.59 %
Net of investment expense (a) 4.41 % 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.
--- ---
(c) On January 27, 2021, AFG entered into a definitive agreement to sell its annuity subsidiaries to Mass<br>Mutual (which includes the run-off life and long term care business) in a transaction that is expected to close in Q2 2021.
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Page 27

American Financial Group, Inc.<br> <br>FixedMaturities - Credit Rating<br> <br>($ in millions)
December 31, 2020
--- --- --- --- --- --- --- --- --- --- ---
By Credit Rating (a) Book Value Fair Value UnrealizedGain (Loss) % ofFair Value
Investment grade
AAA $ 9,190 $ 9,455 $ 265 22 %
AA 6,897 7,319 422 17 %
A 7,636 8,334 698 19 %
BBB 11,951 13,168 1,217 30 %
Subtotal - Investment grade 35,674 38,276 2,602 88 %
BB 872 888 16 2 %
B 266 264 (2 ) 1 %
Other (b) 3,622 3,845 223 9 %
Subtotal - Non-Investment grade 4,760 4,997 237 12 %
Total $ 40,434 $ 43,273 $ 2,839 **** **** 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 32 and 33 for more information.
--- ---

Page 28

American Financial Group, Inc.<br><br><br>Mortgage-Backed Securities - AFG Consolidated<br> <br>($ in<br>millions)
December 31, 2020 Book Value Fair Value UnrealizedGain (Loss) % ofFair Value % ofInvestmentPortfolio
--- --- --- --- --- --- --- --- --- --- --- --- ---
Residential
Agency $ 487 $ 494 $ 7 13 % 1 %
Prime (Non-Agency) 1,297 1,403 106 36 % 3 %
Alt-A 757 860 103 22 % 1 %
Subprime 269 299 30 8 % 1 %
Commercial 748 790 42 21 % 1 %
Total AFG consolidated $ 3,558 $ 3,846 $ 288 **** 100 % **** 7 %
- Substantially all of AFG’s MBS securities are either senior tranches of securitizations or collateralized by<br>senior tranches of securitizations.
--- ---
- The average amortized cost as a percent of par is—Prime 89%; Alt-A<br>80%; Subprime 82%; CMBS 98%.
--- ---
- The average FICO score of our residential MBS securities is—Prime 744;<br>Alt-A 693; Subprime 631.
--- ---
- 96% of our Commercial MBS portfolio is investment-grade rated (82% AAA) and the average subordination for this<br>group of assets is 38%.
--- ---
- The approximate average life by collateral type is—Residential 3.5 years; Commercial 3 years.<br>
--- ---
December 31, 2019 Book Value Fair Value UnrealizedGain (Loss) % ofFair Value % 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 29

American Financial Group, Inc.<br><br><br>Mortgage-Backed Securities Portfolio<br> <br>($ in<br>millions)
Property and Casualty Insurance: December 31, 2020
--- --- --- --- --- --- --- --- --- --- --- --- ---
By Asset Type Book Value Fair Value UnrealizedGain (Loss) % ofFair Value % of InvPortfolio
Residential
Agency $ 242 $ 246 $ 4 25 % 2 %
Prime (Non-Agency) 324 336 12 34 % 2 %
Alt-A 189 213 24 21 % 2 %
Subprime 103 112 9 11 % 1 %
Commercial 89 92 3 9 % 1 %
Total $ 947 $ 999 $ 52 **** 100 % **** 8 %
December 31, 2019
By Asset Type Book Value Fair Value UnrealizedGain (Loss) % of<br>Fair Value % of InvPortfolio
Residential
Agency $ 315 $ 317 $ 2 28 % 3 %
Prime (Non-Agency) 279 292 13 26 % 2 %
Alt-A 265 299 34 26 % 2 %
Subprime 131 143 12 12 % 1 %
Commercial 89 92 3 8 % 1 %
Total $ 1,079 $ 1,143 $ 64 **** 100 % **** 9 %
Annuity and Run-off(a): December 31, 2020
By Asset Type Book Value Fair Value UnrealizedGain (Loss) % of<br>Fair Value % of InvPortfolio
Residential
Agency $ 245 $ 248 $ 3 9 % 0 %
Prime (Non-Agency) 972 1,059 87 37 % 3 %
Alt-A 568 647 79 23 % 2 %
Subprime 166 187 21 6 % 0 %
Commercial 659 698 39 25 % 2 %
Total $ 2,610 $ 2,839 $ 229 **** 100 % **** 7 %
December 31, 2019
By Asset Type Book Value Fair Value UnrealizedGain (Loss) % of<br>Fair Value % 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 %
(a) On January 27, 2021, AFG entered into a definitive agreement to sell its annuity subsidiaries to Mass<br>Mutual (which includes the run-off life and long term care business) in a transaction that is expected to close in Q2 2021.
--- ---

Page 30

Appendix A

American Financial Group, Inc.

Components of CoreOperating Earnings As Reported

($ in millions)

Three Months Ended Twelve Months Ended
12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/20 12/31/19
Core operating earnings before alternative investments marked to market
Property and Casualty Insurance core operating earnings before alternative investments marked to<br>market $ 233 $ 177 $ 181 $ 717 $ 679
Annuity Pretax core operating earnings before alternative investments marked to market 77 81 84 321 298
Interest expense of parent holding companies (24 ) (24 ) ) ) (18 ) (88 ) (68 )
Other expense (33 ) (28 ) ) ) (32 ) (101 ) (106 )
Pre-tax core operating earnings before alternative<br>investments marked to market 253 206 215 849 803
Income tax expense 57 43 42 173 156
Core net operating earnings before alternative investments marked to market $ 196 **** $ 163 **** **** **** $ 173 **** $ 676 **** $ 647 ****
Alternative investments marked to market through core operating earnings, net ofDAC
Property and Casualty Insurance alternative investments marked to market $ 41 $ 28 (13) $ 18 $ 59 $ 74
Annuity alternative investments marked to market, net of DAC 52 40 ) ) 20 38 100
Core pre-tax alternative investments marked to market, net<br>of DAC 93 68 ) ) 38 97 174
Income tax expense 20 14 ) ) 8 21 37
Alternative investments marked to market through core operating earnings, net ofDAC $ 73 **** $ 54 **** (44) (7) $ 30 **** $ 76 **** $ 137 ****
Core operating earnings as reported
Property and Casualty Insurance operating earnings $ 274 $ 205 $ 199 $ 776 $ 753
Annuity operating earnings 129 121 104 359 398
Interest expense of parent holding companies (24 ) (24 ) ) ) (18 ) (88 ) (68 )
Other expense (33 ) (28 ) ) ) (32 ) (101 ) (106 )
Pre-tax core operating earnings asreported 346 274 253 946 977
Income tax expense 77 57 50 194 193
Core net operating earnings as reported $ 269 **** $ 217 **** **** **** $ 203 **** $ 752 **** $ 784 ****
Average number of diluted shares 87.156 88.546 91.274 89.202 91.024
Diluted core net operating earnings per share:
Core net operating earnings before alternative investments marked to market pershare $ 2.25 $ 1.84 $ 1.90 $ 7.58 $ 7.11
Core alternative investments marked to market through core operating earnings, net of DAC per<br>share 0.84 0.61 ) ) 0.32 0.86 1.51
Core net operating earnings as reported per share $ 3.09 **** $ 2.45 **** **** **** $ 2.22 **** $ 8.44 **** $ 8.62 ****

All values are in US Dollars.

Page 31

Appendix B<br><br><br>American Financial Group, Inc.<br> <br>Fixed Maturities byCredit Rating & NAIC Designation by Type<br> <br>12/31/2020<br><br><br>($ in millions)
Fair Value by Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
By Credit Rating (a) US Gov Munis Frgn Gov RMBS CMBS CLOs ABS Corp/Oth Total % Total
Investment grade
AAA $ 234 $ 1,727 $ 179 $ 1,271 $ 649 $ 3,306 $ 1,936 $ 153 $ 9,455 22 %
AA 9 3,564 35 123 19 947 1,896 726 7,319 17 %
A — 348 — 269 13 254 1,494 5,956 8,334 19 %
BBB — 46 1 70 75 31 966 11,979 13,168 30 %
Subtotal - Investment grade 243 5,685 215 1,733 756 4,538 6,292 18,814 38,276 88 %
BB — 10 — 47 32 — 15 784 888 2 %
B — — — 85 — — 42 137 264 1 %
CCC, CC, C — — — 496 2 — 4 40 542 1 %
D — — — 166 — — — — 166 1 %
Subtotal - Non-Investment grade — 10 — 794 34 — 61 961 1,860 5 %
Not Rated (b) — 53 17 529 — 15 870 1,653 3,137 7 %
Total $ 243 $ 5,748 $ 232 $ 3,056 $ 790 $ 4,553 $ 7,223 $ 21,428 $ 43,273 **** 100 %
Fair Value by type
NAIC designation US Gov Munis Frgn gov RMBS CMBS CLOs ABS Corp/Oth Total % Total
1 $ 228 $ 5,691 $ 211 $ 2,939 $ 749 $ 4,506 $ 6,188 $ 8,227 $ 28,739 66 %
2 — 47 — 28 9 31 969 12,086 13,170 31 %
Subtotal 228 5,738 211 2,967 758 4,537 7,157 20,313 41,909 97 %
3 — 9 — 28 32 — 15 806 890 2 %
4 — — — 11 — — 40 212 263 1 %
5 — — — 38 — 15 6 90 149 0 %
6 15 — — 4 — — — 4 23 0 %
Subtotal 15 9 — 81 32 15 61 1,112 1,325 3 %
No designation (c) — 1 21 8 — 1 5 3 39 0 %
Total $ 243 $ 5,748 $ 232 $ 3,056 $ 790 $ 4,553 $ 7,223 $ 21,428 $ 43,273 **** 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, 88% are NAIC 1, 4% NAIC 2, 3% NAIC 3, 3% NAIC 4, 2% NAIC 5.

For Total, 91% are NAIC 1, 2% NAIC 2, 2% NAIC 3, 2% NAIC 4, 3% NAIC 5.

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

Page 32

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

Page 33

Appendix D<br><br><br>American Financial Group, Inc.<br> <br>Corporate Securities byCredit Rating & NAIC Designation by Industry<br> <br>12/31/2020<br><br><br>($ in millions)
Fair Value By Industry
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
CreditRating (a) Banking Other<br>Financials Insurance Asset<br>Managers Technology Energy Healthcare Consumer REITs Capital<br>Goods Utilities Basic<br>Industry Media Autos Communications Retailers Aviation Restaurants,<br>Hospitality &<br>Leisure Other Total %<br>Total
Investment<br>Grade
AAA $ — $ — $ — $ — $ 20 $ — $ 21 $ 32 $ — $ — $ — $ — $ — $ — $ 79 $ — $ — $ — $ 1 $ 153 1 %
AA 91 60 112 42 84 112 69 93 — 1 — — — — — 23 — 18 21 726 3 %
A 1,729 238 839 608 401 190 264 153 243 250 309 21 138 102 149 71 67 16 168 5,956 28 %
BBB 3,276 735 968 786 810 907 685 498 406 308 266 491 346 397 288 232 144 126 310 11,979 56 %
Subtotal 5,096 1,033 1,919 1,436 1,315 1,209 1,039 776 649 559 575 512 484 499 516 326 211 160 500 18,814 88 %
BB 42 31 25 10 69 156 62 82 38 33 14 31 22 48 3 57 20 40 1 784 3 %
B — — 1 — 5 20 14 11 60 — — 9 — — — 2 10 5 — 137 1 %
CCC, CC, C — 2 — — 9 — 2 7 — — — 4 — — — 5 — 11 — 40 0 %
D — — — — — — — — — — — — — — — — — — — — 0 %
Subtotal 42 33 26 10 83 176 78 100 98 33 14 44 22 48 3 64 30 56 1 961 4 %
Not<br>Rated<br>(b) 15 1,330 13 — 25 — 28 72 46 4 1 7 42 — — 24 — 8 38 1,653 8 %
Total $ 5,153 $ 2,396 $ 1,958 $ 1,446 $ 1,423 $ 1,385 $ 1,145 $ 948 $ 793 $ 596 $ 590 $ 563 $ 548 $ 547 $ 519 $ 414 $ 241 $ 224 $ 539 $ 21,428 **** 100 %
Fair Value By Industry
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAICdesignation Banking Other<br>Financials Insurance Asset<br>Managers Technology Energy Healthcare Consumer REITs Capital<br>Goods Utilities Basic<br>Industry Media Autos Communications Retailers Aviation Restaurants,<br>Hospitality &<br>Leisure Other Total %<br>Total
1 $ 1,827 $ 1,593 $ 958 $ 650 $ 521 $ 278 $ 373 $ 310 $ 242 $ 250 $ 339 $ 21 $ 138 $ 97 $ 228 $ 117 $ 67 $ 18 $ 200 $ 8,227 38 %
2 3,279 759 973 786 811 931 694 496 406 313 236 497 379 402 288 232 144 125 335 12,086 57 %
Subtotal 5,106 2,352 1,931 1,436 1,332 1,209 1,067 806 648 563 575 518 517 499 516 349 211 143 535 20,313 95 %
3 47 29 17 10 61 155 58 90 61 32 14 31 22 48 3 58 20 49 1 806 4 %
4 — 12 9 — 6 20 18 21 84 — — 9 — — — 2 10 21 — 212 1 %
5 — 2 1 — 22 1 2 31 — 1 — 5 9 — — 5 — 11 — 90 0 %
6 — 1 — — 2 — — — — — 1 — — — — — — — — 4 0 %
Subtotal 47 44 27 10 91 176 78 142 145 33 15 45 31 48 3 65 30 81 1 1,112 5 %
No<br>designation<br>(c) — — — — — — — — — — — — — — — — — — 3 3 0 %
Total $ 5,153 $ 2,396 $ 1,958 $ 1,446 $ 1,423 $ 1,385 $ 1,145 $ 948 $ 793 $ 596 $ 590 $ 563 $ 548 $ 547 $ 519 $ 414 $ 241 $ 224 $ 539 $ 21,428 **** 100 %
(a) If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies<br>rate a security, the rating displayed is the second lowest.
--- ---
(b) For Other Financials, 98% are NAIC 1 and 99% are NAIC 1 or 2.
--- ---

For the Total, 88% are NAIC 1, 4% NAIC 2, 3% NAIC 3, 3% NAIC 4, 2% NAIC 5.

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

Page 34

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

Appendix F<br> <br>American Financial Group,Inc.<br> <br>Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br><br><br>12/31/2020<br> <br>($ in millions)
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Credit Rating (a) SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate SingleFamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Life Ins/StructuredSettlements Other Total %Total
Investment Grade
AAA $ — $ — $ — $ — $ 835 $ 427 $ — $ 88 $ 56 $ 156 $ 374 $ 1,936 27 %
AA 317 1,126 147 — 19 98 — — 90 — 99 1,896 26 %
A 78 363 22 559 3 11 154 — 48 2 254 1,494 21 %
BBB — 45 559 12 — — 170 102 — 2 76 966 13 %
Subtotal 395 1,534 728 571 857 536 324 190 194 160 803 6,292 87 %
BB — 1 — — — — 9 — — 5 — 15 0 %
B 10 — — — — — 30 — — — 2 42 1 %
CCC, CC, C — — — — — — — — — 3 1 4 0 %
D — — — — — — — — — — — — 0 %
Subtotal 10 1 — — — — 39 — — 8 3 61 1 %
Not Rated (b) 783 — — — — — 7 — — — 80 870 12 %
Total $ 1,188 $ 1,535 $ 728 $ 571 $ 857 $ 536 $ 370 $ 190 $ 194 $ 168 $ 886 $ 7,223 **** 100 %
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAIC designation SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate SingleFamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Life Ins/StructuredSettlements Other Total %Total
1 $ 1,178 $ 1,489 $ 169 $ 559 $ 857 $ 535 $ 154 $ 88 $ 194 $ 159 $ 806 $ 6,188 86 %
2 3 45 559 12 — — 170 102 — 1 77 969 13 %
Subtotal 1,181 1,534 728 571 857 535 324 190 194 160 883 7,157 99 %
3 — 1 — — — — 9 — — 5 — 15 0 %
4 7 — — — — — 30 — — — 3 40 1 %
5 — — — — — — 3 — — 3 — 6 0 %
6 — — — — — — — — — — — — 0 %
Subtotal 7 1 — — — — 42 — — 8 3 61 1 %
No designation (d) — — — — — 1 4 — — — — 5 0 %
Total $ 1,188 $ 1,535 $ 728 $ 571 $ 857 $ 536 $ 370 $ 190 $ 194 $ 168 $ 886 $ 7,223 **** 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 36

Appendix G<br> <br>American FinancialGroup, Inc.<br> <br>Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br><br><br>12/31/2019<br> <br>($ in millions)
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Credit Rating (a) SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate 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
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
NAIC designation 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 37

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

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

Investment Type Book Value % of<br>Book Value Occupancy<br>(b) Collection Rate (c)
Multi-family $ 793 81 % 96 % 98 %
Fund Investments 106 11 % — —
Student Housing 28 3 % 77 % 94 %
Land - Development 17 2 % — —
QOZ Fund - Development 16 1 % — —
Office 15 1 % 88 % 100 %
Hospitality 8 1 % — —
Total $ 983 **** 100 %

Real Estate

Property Type Book Value % of<br>Book Value Debt
Marinas $ 63 39 % $ —
Resort & Marina 56 34 % —
Hotel 23 14 % —
Office Building 17 10 % —
Land 4 3 % —
Total $ 163 **** 100 % $ —

Mortgage Loans

Property Type Book Value % of<br>Book Value Loan To<br>Value (d)
Multifamily 716 44 % 64 %
Hospitality 622 39 % 56 %
Office 249 15 % 65 %
Retail 22 1 % 57 %
Other 14 1 % 58 %
Total $ 1,623 **** 100 % **** 61 %

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

(a) Total investments accounted for using the equity method is $1.88 billion, the amounts presented in this<br>table only relate to real estate funds/investments.
(b) Occupancy as of 12/31/20
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(c) Collections for October - December
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(d) Based on most recent property appraisals, the vast majority of which are prior to March 2020.<br>
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Appendix I<br> <br>American FinancialGroup, Inc.<br> <br>Real Estate-Related Investments<br><br><br>12/31/2019<br> <br>($ in millions)

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

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

Real Estate

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

Mortgage Loans

Property Type Book Value % of<br>Book Value Loan To<br>Value
Hospitality 575 43 % 56 %
Multifamily 392 30 % 62 %
Office 253 19 % 65 %
Retail 61 4 % 59 %
Other 48 4 % 50 %
Total $ 1,329 **** 100 % **** 59 %
(a) Total investments accounted for using the equity method is $1.69 billion, the amounts presented in this<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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