Equibles

8-K

AMERICAN FINANCIAL GROUP INC (AFG)

8-K 2020-05-12 For: 2020-05-11
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Added on April 04, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 11, 2020

AMERICAN FINANCIAL GROUP, INC.

(Exact name of registrant as specified in its charter)

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

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

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

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

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

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

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

Section 2 - Financial Information

Item 2.02 Results Of Operations And Financial Condition.

Reference is made to the press release of American Financial Group, Inc. (the “Company”) relating to the announcement of the Company’s results of operations for the first quarter of 2020 and the availability of the Investor Supplement on the Company’s website. The press release was issued on May 11, 2020. A copy of the press release is attached to this Form 8-K as Exhibit 99.1 and a copy of the Investor Supplement is attached as Exhibit 99.2 and are incorporated herein by reference.

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

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.
(a) Financial statements of business acquired. Not applicable.
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(b) Pro forma financial information. Not applicable.
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(c) Shell company transactions. Not applicable
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(d) Exhibits
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Exhibit <br>No. Description
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99.1 Earnings Release dated May 11, 2020, reporting American Financial Group Inc. results for the quarter ended March 31, 2020.
99.2 Investor Supplement – First 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: May 12, 2020
By: /s/ Karl J. Grafe
Karl J. Grafe
Vice President

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EX-99.1

Exhibit 99.1

LOGO

American Financial Group, Inc. Announces First Quarter Results

• Net loss per share of $3.34; includes $5.22 per share loss inafter-tax non-core items
• Core net operating earnings of $1.88 per share; includes $0.08 per share loss from investments marked-to-market through core operating earnings
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• First quarter annualized ROE of (23.1%); core operating ROE of 13.2%
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• Parent company cash of $485 million post April debt offering; excesscapital of $610 million at March 31, 2020
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• Full year 2020 core net operating earnings guidance, excluding the impact of investments marked-to-market through core operating earnings, $6.45 - $7.25 per share
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CINCINNATI – May 11, 2020 – American Financial Group, Inc. (NYSE: AFG) today reported a 2020 first quarter net loss attributable to shareholders of $301 million ($3.34 per share loss) compared to earnings of $329 million ($3.63 per share) for the 2019 first quarter. Net earnings for the 2020 first quarter were adversely impacted by after-tax non-core items aggregating $472 million ($5.22 per share). These items included $435 million ($4.81 per share) in non-core after-tax net realized losses on securities, after-tax annuity non-core losses of $30 million ($0.34 per share), and $7 million ($0.07 per share) for costs associated with the runoff of our Lloyd’s-based insurer, Neon. By comparison, net earnings in the 2019 first quarter included $145 million ($1.61 per share) in after-tax net realized gains on securities. Other details may be found in the table on the following page. AFG’s book value per share was $56.18 as of March 31, 2020. Annualized return on equity was (23.1%) and 25.9% for the first quarters of 2020 and 2019, respectively.

Core net operating earnings were $171 million ($1.88 per share) for the 2020 first quarter, compared to $184 million ($2.02 per share) in the 2019 first quarter. Core net operating earnings for the first quarters of 2020 and 2019 generated annualized returns on equity of 13.2% and 14.5%, respectively. The year-over-year decrease was the result of negative adjustments to the Company’s $2.2 billion of investments that are marked to market through core operating earnings (“MTM investments”). The COVID-19 pandemic has had widespread financial and economic impacts, including a significant decrease in both equity and credit markets, which adversely affected returns on MTM investments. Excluding the impact of MTM investments, AFG’s first quarter 2020 core net operating earnings increased $21 million ($0.23 per share) year-over-year. Additional details may be found in the table below.

Three Months Ended March 31,
Components of Pretax Core Operating Earnings 2020 2019 2020 2019 2020 2019
Before Impact of Marked-to-Market Core Net Operating
In millions, except per share amounts Marked-to-Market Investments Investments, net of DAC Earnings, as reported
P&C Pretax Core Operating Earnings $ 178 $ 177 $ 3 $ 8 $ 181 $ 185
Annuity Pretax Core Operating Earnings 79 64 (12 ) 26 67 90
Other Expenses (20 ) (27 ) — — (20 ) (27 )
Holding Company Interest Expense (17 ) (16 ) — — (17 ) (16 )
Pretax Core Operating Earnings 220 198 (9 ) 34 211 232
Related Income Taxes 42 41 (2 ) 7 40 48
Core Net Operating Earnings $ 178 **** $ 157 **** $ (7 ) $ 27 $ 171 **** $ 184 ****
Core Operating Earnings (Loss) Per Share $ 1.96 $ 1.73 ($ 0.08 ) $ 0.29 $ 1.88 $ 2.02
Weighted Avg Diluted Shares Outstanding 91.1 90.7 91.1 90.7

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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 three month period ended March 31, 2019 are reconciled to historically reported Annuity Segment core operating earnings on page 5 of this release. As a result, reported core net operating earnings for periods beginning with the second quarter of 2019 are not directly comparable to prior year periods. Beginning prospectively with the first quarter of 2020, AFG’s core net operating earnings for its property and casualty insurance segment excludes the run-off operations of Neon (“Neon exited lines”). The Neon exited lines impact is highlighted in the table below.

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

In millions, except per share amounts Three months ended<br>March 31,
2020 2019
Components of net earnings (loss) attributable to shareholders:
Core operating earnings before income taxes $ 211 $ 229
Pretax non-core items:
Realized gains (losses) on securities (551 ) 184
Annuity non-core earnings (losses) (38 ) —
Neon exited lines (10 ) —
Earnings (loss) before income taxes (388 ) 413
Provision (credit) for income taxes:
Core operating earnings 40 48
Non-core items (124 ) 39
Total provision (credit) for income taxes (84 ) 87
Net earnings (loss), including noncontrolling interests (304 ) 326
Less net earnings (losses) attributable to noncontrolling interests:
Core operating earnings — (3 )
Non-core items (3 ) —
Total net earnings (loss) attributable to noncontrolling interests (3 ) (3 )
Net earnings (loss) attributable to shareholders $ (301 ) $ 329 ****
Net earnings (loss):
Core net operating<br>earnings**^(a)^** $ 171 $ 184
Non-core items:
Realized gains (losses) on securities (435 ) 145
Annuity non-core earnings (losses) (30 ) —
Neon exited lines (7 ) —
Net earnings (loss) attributable to shareholders $ (301 ) $ 329 ****
Components of Earnings (Loss) Per<br>Share**^(b)^:
Core net operating<br>earnings^(a)^** $ 1.88 $ 2.02
Non-core items:
Realized gains (losses) on securities (4.81 ) 1.61
Annuity non-core earnings (losses) (0.34 ) —
Neon exited lines (0.07 ) —
Diluted Earnings (Loss) Per Share $ (3.34 ) $ 3.63 ****

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

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Book value per share, excluding unrealized gains related to fixed maturities, was $55.52 per share at March 31, 2020. In the 2020 first quarter, AFG repurchased 826,283 shares of its common stock at an average price of $74.28 per share, for a total of approximately $61 million.

Carl H. Lindner III and S. Craig Lindner, AFG’s Co-Chief Executive Officers, commented: “The COVID-19 pandemic has had profound implications across the globe, requiring us to adjust to new ways of working, learning and interacting with each other. We are especially grateful for the guidance of health officials and government leaders at the local, state and federal levels, which has been instrumental in protecting health and promoting safety in these unprecedented times. We are also very thankful to those serving and caring for others, including healthcare professionals, first responders, military and food service personnel and other essential workers. Our foremost priority is to protect the well-being of our employees as we continue to provide the secure, trusted service and support on which our agents and policyholders rely. We entered the year in the strongest financial position in our Company’s history, and our liquidity and excess capital afford us the flexibility to effectively address and respond to the uncertainties introduced by COVID-19. Our thoughts and prayers remain with all of those affected by the virus and the individuals caring for them.

“We are very pleased with the performance of our core operating businesses during the first quarter of 2020 amid these challenges. We believe our results demonstrate the strength of our portfolio of diversified specialty insurance businesses and the contributions of the exceptional employees who are part of the AFG family.

“AFG had approximately $610 million of excess capital at March 31, 2020. This number includes parent company cash of approximately $190 million. With consideration to our recent issuance of $300 million of 10-year senior debt, AFG parent effectively held cash of $485 million at March 31, 2020. We expect to continue to have significant excess capital and liquidity throughout 2020 and beyond. Specifically, our insurance subsidiaries are projected to have capital at or in excess of the levels expected by ratings agencies in order to maintain their current ratings, we have no near-term debt maturities and we maintain a $500 million undrawn credit facility.”

As previously announced, the Company provided full year 2020 core net operating earnings per share guidance excluding earnings or losses from MTM investments, given the uncertainty of the implications of COVID-19 and the resulting volatility in the financial markets. AFG continues to expect its 2020 core net operating earnings per share excluding MTM investments to be in the range of $6.45 to $7.25. For comparison, AFG’s 2019 full year core operating earnings per share excluding MTM investments were $7.11. In addition to excluding earnings on MTM investments where indicated, our 2020 core earnings per share expectations and guidance excludes non-core items such as realized gains and losses, annuity non-core earnings and losses, and other significant items that are not able to be estimated with reasonable precision, or that may not be indicative of ongoing operations. Furthermore, the above guidance reflects the impacts of (i) recent opportunistic purchases of fixed income securities, (ii) lower short-term interest rates than previously assumed, (iii) a decline in property and casualty premiums as compared to our original expectations, (iv) recent renewal rate actions taken on annuity policies near or at the end of their surrender charge period, and (v) other items related to the impact of COVID-19.

Specialty Property and Casualty Insurance Operations

Pretax core operating earnings in AFG’s P&C Insurance Segment were $181 million in the first quarter of 2020, compared to $185 million in the prior year period, a decrease of 2%. Lower year-over-year P&C net investment income, due to the impact of MTM investments, was the driver of the lower year-over-year earnings. Absent the impact of MTM investments, first quarter 2020 pretax core operating earnings in AFG’s P&C Insurance Segment increased $1 million when compared to the prior year period.

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The Specialty P&C insurance operations generated an underwriting profit of $89 million in the 2020 first quarter, compared to $88 million in the first quarter of 2019. Higher underwriting profitability in our Specialty Casualty and Specialty Financial Groups was partially offset by lower underwriting profit in our Property and Transportation Group.

The first quarter 2020 combined ratio of 92.2% decreased 0.3% from the prior year period. First quarter 2020 results include 4.2 points of favorable prior year reserve development, compared to 4.0 points of favorable development in the comparable prior year period. Catastrophe losses were 0.8 points of the combined ratio in the first quarter of 2020; by comparison, catastrophe losses added 1.1 points in the prior year period.

Gross written premiums were down 1% and net written premiums were up 2% in the 2020 first quarter compared to the prior year quarter, primarily as the result of the run-off of Neon. Excluding the impact of the Neon runoff, gross and net written premiums increased 11% and 7%, respectively, year-over-year. Average renewal pricing across our entire P&C Group was up approximately 7% for the quarter. Excluding our workers’ compensation business, renewal pricing was up approximately 11%. Pricing in our Specialty P&C group overall is the highest we have achieved in over five years, meeting or exceeding our expectations in each of our Specialty P&C sub-segments.

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

The Property and Transportation Group reported an underwriting profit of $27 million in the first quarter of 2020 compared to $39 million in the first quarter of 2019. Lower crop earnings were the driver of the lower underwriting profit in the quarter. Catastrophe losses in this group were $8 million in the first quarter of 2020 and $9 million in the comparable 2019 period.

First quarter 2020 gross and net written premiums in this group were 13% and 12% higher, respectively, than the comparable prior year period. New business opportunities in our transportation, property & inland marine and ocean marine businesses, as well as new premiums from the addition of the Atlas paratransit business, were partially offset by declines in passenger transportation premiums caused by the COVID-19 pandemic. Overall renewal rates in this group increased 6% in the first quarter of 2020.

The Specialty Casualty Group reported an underwriting profit of $52 million in the first quarter of 2020 compared to $36 million in the comparable 2019 period. Higher profitability in our executive liability and workers’ compensation businesses, as well as 2019 Neon underwriting losses impacting prior year core operating results, contributed to the higher year-over-year underwriting profitability. Higher year-over-year adverse prior year reserve development in our excess & surplus lines and public sector businesses partially offset these results. Underwriting profitability in our workers’ compensation business continues to be very strong; these businesses reported higher year-over-year underwriting profit, primarily as a result of higher favorable prior year reserve development. The businesses in the Specialty Casualty Group achieved a very strong 90.7% calendar year combined ratio overall in the first quarter. Catastrophe losses for this group were less than $1 million in the first quarter of 2020 and $1 million in the comparable 2019 period.

Gross and net written premiums decreased 7% and 6%, respectively, for the first 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 for the first quarter of 2020 were up 13% and 4%, respectively, when compared to the same period in 2019. Higher cessions in our excess and surplus and excess liability businesses impacted net written premiums. With the exception of workers’ compensation, the majority of businesses in this group achieved strong renewal pricing and reported premium growth during the first quarter. Growth in our excess and surplus lines and excess liability businesses, primarily the result of rate increases, new business opportunities and higher retentions on renewal business, was the primary driver of the higher premiums. Lower premiums in our workers’ compensation businesses partially offset this growth. Renewal pricing for this group was up 8% in the first quarter. Excluding our workers’ compensation

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businesses, renewal rates in this group were up approximately 17%. Renewal rates in our Specialty Casualty Group overall and renewal rates adjusted to exclude the impact of workers’ compensation are the highest we have seen in more than five years.

The Specialty Financial Group reported an underwriting profit of $17 million in the first quarter of 2020, compared to $13 million in the comparable 2019 period. Higher year-over-year underwriting profitability in our financial institutions business was partially offset by lower underwriting profitability in our fidelity and crime operations. Nearly all businesses in this group continued to achieve excellent underwriting margins. Catastrophe losses for this group were $1 million in the first quarter of 2020, compared to $2 million in the prior year quarter.

First quarter 2020 gross written premiums were down 1% and net written premiums were up 3%, when compared to the prior year period. Renewal pricing in this group was up approximately 5% for the quarter.

Carl Lindner III stated, “Our Specialty P&C Group performed exceptionally well during the first quarter, with excellent underwriting margins, healthy year-over-year growth in net written premiums and very strong renewal pricing that is exceeding our objectives. Based on our current expectations of the impact of COVID-19, we now expect P&C pretax core operating earnings, excluding the impact of MTM investments, in the range of $630 million to $690 million, and we expect an overall 2020 calendar year combined ratio in the range of 92% to 94%. We now expect net written premiums to be down 8% to 14% when compared to the $5.3 billion reported in 2019, primarily due to the run-off of Neon. Excluding the impact of Neon, we expect net written premiums be 1% to 7% lower than the premiums reported in 2019.”

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

Annuity Segment

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

In millions Three months ended<br>March 31,
2020 2019 Change
Components of Pretax Annuity Core Operating Earnings:
Pretax earnings before items below $ 79 $ 75 5 %
Amounts previously reported as operating, net — (11 )
Pretax Annuity core operating earnings before MTM investments **** 79 **** **** 64 **** **** 23 %
MTM Investments, net of DAC (12 ) 26
Pretax Annuity core operating earnings, as reported $ 67 $ 90 (26 %)
Annualized yield on investments marked to market through core operating earnings (1.9 %) 10.9 %

First quarter 2020 pretax annuity core operating earnings before certain items increased 5% and reflects the impact of growth in the annuity business.

Earnings from investments marked to market (“MTM”) through core operating earnings vary from quarter to quarter based on the reported results of the underlying investments. As discussed earlier, the COVID-19 pandemic has had widespread financial and economic impacts, including a significant decrease in both equity and credit markets, which impacted returns during the first quarter of 2020 on the Annuity Segment’s $1.3 billion of MTM investments.

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Annuity Premiums – AFG’s Annuity Segment reported statutory premiums of $1.21 billion in the first quarter of 2020, compared to $1.40 billion in the first quarter of 2019, a decrease of 13%. However, sales in the first quarter of 2020 represent a 6% increase over sales in the fourth quarter of 2019, and reflect a sequential increase in all of the Annuity Segment’s major channels.

Craig Lindner stated, “While COVID-19 had a limited impact on premiums during the first quarter, the pandemic is expected to have a much bigger impact on sales in the second quarter, and possibly beyond. Subject to much uncertainty, our current best estimate is that 2020 Annuity sales will be between $3.3 billion and $4.0 billion, and result in growth in average investments and reserves of 5% to 7% in 2020. Furthermore, we believe that the Annuity Segment’s 5% increase in comparable core operating earnings before MTM investments demonstrates the strong fundamentals of our business. Although the Annuity Segment’s return on its $1.3 billion of MTM investments was slightly negative in the first quarter of 2020, the cumulative return on these investments over the past five calendar years was nearly 10%.”

2020 Annuity Core OperatingEarnings Guidance, Excluding Earnings or Losses from MTM Investments – While AFG continues to expect an attractive return on its MTM investments over the long term, due to ongoing volatility and uncertainty, it is difficult to forecast the MTM returns for the Annuity Segment in 2020. Pretax Annuity core operating earnings, excluding the impact of MTM investments, are expected to be in the range of $280 million to $310 million. By comparison, annuity core operating earnings excluding MTM investments was $298 million in 2019.

This guidance reflects the impacts of (i) lower short-term interest rates, which will have a negative impact on the Annuity Segment’s approximately $4.1 billion net investment in cash and floating rate securities, and (ii) recent opportunistic purchases of fixed income securities, which will have a positive impact on core operating earnings. In addition, AFG has recently initiated more aggressive renewal rate actions on annuity policies near or after the end of their surrender charge period, which will also have a positive impact on core operating earnings.

Craig Lindner added, “We believe AFG’s Annuity Segment is strongly positioned to deal with the effects of the pandemic. In addition to its strong capital position and strong underlying fundamentals, the Annuity Segment has the ability to lower the crediting rates on $31 billion of annuity reserves by an average of 118 basis points. In addition, due to its prudent pricing, AFG has sold fewer annuities with guaranteed living benefits than many of its peers; at March 31, 2020, less than 13% of AFG’s annuity reserves contained these guarantees.”

Annuity Non-Core Loss – In the first quarter of 2020, AFG reported an after-tax Annuity non-core loss of $30 million ($0.34 per share loss), which reflects the unfavorable impact of the first quarter decrease in the S&P 500 on fair value accounting for FIAs.

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

Investments

Due to the significant drop in the stock market in the first quarter of 2020, AFG recorded first quarter 2020 net realized losses on securities of $435 million ($4.81 per share) after tax and after deferred acquisition costs (DAC), which included $423 million ($4.69 per share) in after-tax, after-DAC net losses to adjust equity securities that the Company continued to own, to fair value. AFG recorded $145 million ($1.61 per share) in non-core after-tax net realized gains on securities in the comparable prior year period.

Unrealized gains on fixed maturities were $16 million after tax and after DAC at March 31, 2020, a decrease of $846 million since year end. Our portfolio continues to be high quality, with 91% of our fixed maturity portfolio rated investment grade and 97% with a National Association of Insurance Commissioners’ designation of NAIC 1 or 2, its highest two categories.

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For the three months ended March 31, 2020, P&C net investment income was approximately 5% lower than the comparable 2019 period. Excluding the impact of MTM investments, P&C net investment income was unchanged year-over-year.

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

Neon ExitedLines

On January 6, 2020, AFG announced its plans to exit the Lloyd’s of London insurance market and actions it had initiated to place its Lloyd’s subsidiaries including its Lloyd’s Managing Agency, Neon Underwriting Ltd., into run-off. The exit from this business will allow AFG to reallocate capital to its other insurance businesses and opportunities that have the potential to earn targeted returns on investment. AFG recognized non-core after-tax net expenses of $7 million ($0.07 per share) in the first quarter of 2020 related to the run-off of this business.

About American Financial Group, Inc.

American Financial Group is an insurance holding company, based in Cincinnati, Ohio with assets of approximately $68 billion as of March 31, 2020. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of traditional fixed and indexed annuities in the retail, financial institutions, broker-dealer, and registered investment advisor markets. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.

Forward Looking Statements

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

Actual results and/or financial condition could differ materially from those contained in or implied by such forward-looking statements for a variety of reasons including, but not limited to: changes in financial, political and economic conditions, including changes in interest and inflation rates, currency fluctuations and extended economic recessions or expansions in the U.S. and/or abroad; performance of securities markets, including the cost of equity index options; new legislation or declines in credit quality or credit ratings that could have a material impact on the valuation of securities in AFG’s investment portfolio; the availability of capital; changes in insurance law or regulation, including changes in statutory accounting rules and changes in regulation of the Lloyd’s market, including modifications to capital requirements; changes in costs associated with the exit from the Lloyd’s market and the run-off of AFG’s Lloyd’s-based insurer, Neon; the effects of the COVID-19 outbreak, including the effects on the international and national economy and credit markets, legislative or regulatory developments affecting the insurance industry,

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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.

Details Regarding AFG’s 2020 First Quarter Earnings Results Conference Call

The Company will hold a conference call to discuss 2020 first quarter results at 11:30 a.m. (ET) tomorrow, Tuesday, May 12, 2020. Toll-free telephone access will be available by dialing 1-877-459-8719 (international dial-in 424-276-6843). The conference ID for the live call is 8449094. Please dial in five to ten minutes prior to the scheduled start time of the call.

A replay will be available approximately two hours following the completion of the call and will remain available until 11:59 p.m. (ET) on May 19, 2020. To listen to the replay, dial 1-855-859-2056 (international dial-in 404-537-3406) and provide the conference ID 8449094.

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

An archived webcast will be available immediately after the call via the same link on our website until May 19, 2020 at 11:59 p.m. (ET).

Contact:

Diane P. Weidner, IRC

Assistant Vice President – Investor & Media Relations

(513) 369-5713

Websites:

www.AFGinc.com

www.GreatAmericanInsuranceGroup.com

#

(Financial summaries follow)

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

AFG2020-11

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AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES

SUMMARY OF EARNINGS (LOSS) AND SELECTED BALANCE SHEET DATA

(In Millions, Except Per Share Data)

Three months ended<br>March 31,
2020 2019
Revenues
P&C insurance net earned premiums $ 1,209 $ 1,173
Net investment income 544 542
Realized gains (losses) on securities (551 ) 184
Income (loss) of managed investment entities:
Investment income 59 69
Gain (loss) on change in fair value of assets/liabilities (43 ) —
Other income 57 56
Total revenues 1,275 2,024
Costs and expenses
P&C insurance losses & expenses 1,127 1,091
Annuity and supplemental insurance benefits & expenses 389 339
Interest charges on borrowed money 17 16
Expenses of managed investment entities 48 55
Other expenses 82 110
Total costs and expenses 1,663 1,611
Earnings (loss) before income taxes (388 ) 413
Provision (credit) for income taxes (84 ) 87
Net earnings (losses) including noncontrolling interests (304 ) 326
Less: Net earnings (loss) attributable to noncontrolling interests (3 ) (3 )
Net earnings (loss) attributable to shareholders $ (301 ) $ 329
Diluted earnings (loss) per Common Share $ (3.34 ) $ 3.63
Average number of diluted shares 90.3 90.7
March 31, December 31,
--- --- --- --- ---
2020 2019
Selected Balance Sheet Data:
Total cash and investments $ 53,221 $ 55,252
Long-term debt**^(c)^** $ 1,473 $ 1,473
Shareholders’ equity**^(d)^** $ 5,047 $ 6,269
Shareholders’ equity (excluding unrealized gains/losses related to fixed maturities)^(d)^ $ 4,987 $ 5,390
Book value per share $ 56.18 $ 69.43
Book value per share (excluding unrealized gains/losses related to fixed maturities) $ 55.52 $ 59.70
Common Shares Outstanding 89.8 90.3

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

Page 9

AMERICAN FINANCIAL GROUP, INC.

SPECIALTY P&C OPERATIONS

(Dollars in Millions)

Three months ended
March 31, Change
2020 2019
Gross written premiums $ 1,526 $ 1,535 (1 %)
Net written premiums $ 1,165 $ 1,147 2 %
Ratios (GAAP):
Loss & LAE ratio 58.5 % 58.9 %
Underwriting expense ratio 33.7 % 33.6 %
Specialty Combined Ratio 92.2 % 92.5 %
Combined Ratio – P&C Segment 92.8 % 92.6 %
SupplementalInformation:^(e)^
Gross Written Premiums:
Property & Transportation $ 494 $ 439 13 %
Specialty Casualty 849 912 (7 %)
Specialty Financial 183 184 (1 %)
$ 1,526 $ 1,535 (1 %)
Net Written Premiums:
Property & Transportation $ 386 $ 344 12 %
Specialty Casualty 586 626 (6 %)
Specialty Financial 149 145 3 %
Other 44 32 38 %
$ 1,165 $ 1,147 2 %
Combined Ratio (GAAP):
Property & Transportation 92.9 % 89.0 %
Specialty Casualty 90.7 % 94.2 %
Specialty Financial 89.1 % 91.4 %
Aggregate Specialty Group 92.2 % 92.5 %
Three months ended
--- --- --- --- --- --- ---
March 31,
2020 2019
Reserve Development (Favorable) / Adverse:
Property & Transportation $ (24 ) $ (26 )
Specialty Casualty (24 ) (13 )
Specialty Financial (2 ) (6 )
Other Specialty 2 (1 )
$ (48 ) $ (46 )
Points on Combined Ratio:
Property & Transportation (6.2 ) (7.2 )
Specialty Casualty (4.3 ) (2.2 )
Specialty Financial (1.2 ) (4.3 )
Aggregate Specialty Group (4.2 ) (4.0 )
Total P&C Segment (3.5 ) (3.9 )

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

Page 10

AMERICAN FINANCIAL GROUP, INC.

ANNUITY SEGMENT

(Dollarsin Millions)

Components of Statutory Premiums

Three months ended
March 31, Change
2020 2019
Annuity Premiums:
Financial Institutions $ 711 $ 768 (7 %)
Retail 197 330 (40 %)
Broker-Dealer 155 233 (33 %)
Pension Risk Transfer 103 10 930 %
Education Market 39 49 (20 %)
Variable Annuities 5 5 —
Total Annuity Premiums $ 1,210 $ 1,395 (13 %)

Components of Pretax Annuity Core Operating Earnings

Three months ended
March 31, Change
2020 2019
Revenues:
Net investment income $ 428 $ 406 5 %
Other income 35 28 25 %
Total revenues 463 434 7 %
Costs and Expenses:
Annuity benefits 287 267 7 %
Acquisition expenses 65 57 14 %
Other expenses 32 35 (9 %)
Total costs and expenses 384 359 7 %
Annuity core operating earnings before items below $ 79 $ 75 5 %
Amounts previously reported as core — (11 ) nm
Investments<br>marked-to-market, net of DAC (12 ) 26 nm
Pretax Annuity Core Operating Earnings $ 67 $ 90 (26 %)

Annuity Spread Information*

Three months ended<br>March 31,
2020 2019
Net interest spread before MTM investments 1.59 % 1.69 %
Net interest spread 1.53 % 2.00 %
Net spread earned before MTM investments 0.81 % 0.80 %
Net spread earned 0.69 % 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 11

AMERICAN FINANCIAL GROUP, INC.

Notes to Financial Schedules

a) Components of core net operating earnings (in millions):
Three months ended<br>March 31,
--- --- --- --- --- --- ---
2020 2019
Core Operating Earnings before Income Taxes:
P&C insurance segment $ 181 $ 185
Annuity segment 67 101
Annuity results previously reported as operating earnings — (11 )
Interest & other corporate expenses (37 ) (43 )
Core operating earnings before income taxes 211 232
Related income taxes 40 48
Core net operating earnings $ 171 $ 184
b) Because AFG had a net loss for the first quarter of 2020, the impact of potential dilutive options (weighted<br>average of 0.84 million shares) was excluded from AFG’s fully diluted earnings per share calculation. However, for the non-GAAP measure of core net operating earnings, the Company believes it is most<br>appropriate to use the fully diluted share data that would have been used if AFG had net earnings for the first quarter.
--- ---
c) Shareholders’ Equity at March 31, 2020 includes $16 million ($0.17 per share) in unrealized after-tax gains on fixed maturities and $44 million ($0.49 per share) in unrealized after-tax gains on fixed maturity-related cash flow hedges. Shareholders’ Equity<br>at December 31, 2019 includes $862 million ($9.54 per share) in unrealized after-tax gains on fixed maturities and $17 million ($0.19 per share) in unrealized<br>after-tax gains on fixed maturity-related cash flow hedges.
--- ---
d) On March 26, 2020, AFG announced the registered offering of $300 million of 5.250% Senior Notes due<br>April 2, 2030. The transaction closed on April 2, 2020.
--- ---
e) Supplemental Notes:
--- ---
• Property & Transportation includes primarily physical damage and liability coverage<br>for buses and trucks, inland and ocean marine, agricultural-related products and other commercial property coverages.
--- ---
• Specialty Casualty includes primarily excess and surplus, general liability, executive liability,<br>professional liability, umbrella and excess liability, specialty coverages in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance.<br>
--- ---
• Specialty Financial includes risk management insurance programs for lending and leasing institutions<br>(including equipment leasing and collateral and lender-placed mortgage property insurance), surety and fidelity products and trade credit insurance.
--- ---
• Other includes an internal reinsurance facility.
--- ---

Page 12

EX-99.2

Exhibit 99.2

American Financial Group, Inc.
Investor Supplement - First Quarter 2020
May 11, 2020
American Financial Group, Inc.
Corporate Headquarters
Great American Insurance Group Tower<br> <br>301 E<br>Fourth Street
Cincinnati, OH 45202 513 579 6739
American Financial Group, Inc.
---
Table of Contents - Investor Supplement - First Quarter 2020
Section Page
--- --- ---
Table of Contents - Investor Supplement - First 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 12
Annuity Earnings - Version 2 12a
Detail of Annuity Benefits Expense 13
Core Net Spread on Fixed Annuities 14
Statutory Annuity Premiums 15
Fixed Annuity Benefits Accumulated (GAAP) 16
Guaranteed Minimum Interest Rate Analysis 17
Annuity Non-Core Earnings (Losses) 18
Reconciliation from Core to GAAP Annuity Pretax Earnings 19
Consolidated Balance Sheet / Book Value / Debt
Consolidated Balance Sheet 20
Book Value Per Share and Price / Book Summary 21
Capitalization 22
Additional Supplemental Information 23
Consolidated Investment Supplement
Total Cash and Investments 24
Net Investment Income 25
Significant Investments<br>Marked-to-Market Through Investment Income and Investments Accounted For Using the Equity Method 26
Fixed Maturities - By Security Type - AFG Consolidated 27
Fixed Maturities - By Security Type Portfolio 28
Fixed Maturities - Credit Rating 29
Mortgage-Backed Securities - AFG Consolidated 30
Mortgage-Backed Securities Portfolio 31
Mortgage-Backed Securities - Credit Rating 32
Appendix
A Components of Core Operating Earnings As Reported 33
B Fixed Maturities by Credit Rating & NAIC Designation by Type 3/31/2020 34
C Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2019 35
D Corporate Securities by Credit Rating & NAIC Designation by Industry 3/31/2020 36
E Corporate Securities by Credit Rating & NAIC Designation by Industry<br>12/31/2019 37
F Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br>3/31/2020 38
G Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br>12/31/2019 39

Page 2

American Financial Group, Inc.
Financial Highlights
(in millions, except per share information)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Highlights
Net earnings (loss) $ (301 ) $ 211 $ 147 $ 210 $ 329 $ 897 $ 530
Core net operating earnings 171 203 205 192 184 784 761
Total assets 67,643 70,130 69,067 67,697 66,132 70,130 63,456
Adjusted shareholders’ equity (a) 4,987 5,390 5,376 5,260 5,201 5,390 4,898
Property and Casualty net written premiums 1,165 1,313 1,618 1,264 1,147 5,342 5,023
Annuity statutory premiums 1,210 1,139 1,077 1,349 1,395 4,960 5,407
Per share data
Diluted earnings (loss) per share $ (3.34 ) $ 2.31 $ 1.62 $ 2.31 $ 3.63 $ 9.85 $ 5.85
Core net operating earnings per share 1.88 2.22 2.25 2.12 2.02 8.62 8.40
Adjusted book value per share (a) 55.52 59.70 59.65 58.49 58.02 59.70 54.86
Cash dividends per common share 0.4500 2.2500 0.4000 1.9000 0.4000 4.9500 4.4500
Financial ratios
Annualized return on equity (b) (23.1 %) 15.6 % 11.0 % 16.0 % 25.9 % 17.1 % 10.9 %
Annualized core operating return on equity (b) 13.2 % 15.0 % 15.3 % 14.7 % 14.5 % 14.9 % 15.6 %
Property and Casualty combined ratio - Specialty:
Loss & LAE ratio 58.5 % 63.2 % 63.1 % 60.2 % 58.9 % 61.5 % 61.3 %
Underwriting expense ratio 33.7 % 30.3 % 30.9 % 34.8 % 33.6 % 32.2 % 32.1 %
Combined ratio - Specialty 92.2 % 93.5 % 94.0 % 95.0 % 92.5 % 93.7 % 93.4 %
Net interest spread on fixed annuities - before investments marked to market 1.59 % 1.71 % 1.65 % 1.72 % 1.69 % 1.69 % 1.76 %
Investments marked to market (0.06 %) 0.23 % 0.28 % 0.33 % 0.31 % 0.29 % 0.33 %
Net interest spread on fixed annuities - including marked to market 1.53 % 1.94 % 1.93 % 2.05 % 2.00 % 1.98 % 2.09 %
Net spread earned on fixed annuities:
Core operating - before investments marked to market 0.81 % 0.87 % 0.80 % 0.80 % 0.80 % 0.82 % 0.90 %
Investments marked to market, net of DAC (0.12 %) 0.20 % 0.26 % 0.31 % 0.28 % 0.26 % 0.30 %
Core operating 0.69 % 1.07 % 1.06 % 1.11 % 1.08 % 1.08 % 1.20 %
Non-core:
Previously reported in core operating n/a n/a n/a n/a (0.12 %) (0.03 %) (0.13 %)
Currently reported in non-core (0.38 %) 0.24 % (0.28 %) (0.35 %) n/a (0.09 %) n/a
(a) Excludes unrealized gains related to fixed maturity investments, a reconciliation to the GAAP measure is on<br>page 21.
--- ---
(b) Excludes accumulated other comprehensive income.
--- ---

Page 3

American Financial Group, Inc.<br><br><br>Summary of Earnings<br> <br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Property and Casualty Insurance
Underwriting profit $ 88 $ 88 $ 72 $ 59 $ 87 $ 306 $ 320
Net investment income 99 120 124 124 104 472 438
Other expense (6 ) (9 ) (2 ) (8 ) (6 ) (25 ) (18 )
Property and Casualty Insurance operating earnings 181 199 194 175 185 753 740
Annuity operating earnings 67 104 100 104 90 398 361
Interest expense of parent holding companies (17 ) (18 ) (17 ) (17 ) (16 ) (68 ) (62 )
Other expense (20 ) (32 ) (22 ) (25 ) (27 ) (106 ) (94 )
211 253 255 237 232 977 945
Income tax expense 40 50 50 45 48 193 184
Core net operating earnings **** 171 **** **** 203 **** **** 205 **** **** 192 **** **** 184 **** **** 784 **** **** 761 ****
Non-core items, net of tax:
Realized gains (losses) on securities (435 ) 51 (14 ) 45 145 227 (210 )
Annuity non-core earnings (losses) (30 ) 19 (21 ) (27 ) — (29 ) —
Special A&E charges:
Property and Casualty Insurance run-off<br>operations — — (14 ) — — (14 ) (14 )
Former Railroad and Manufacturing operations — — (9 ) — — (9 ) (7 )
Neon exited lines (7 ) (58 ) — — — (58 ) —
Other non-core items — (4 ) — — — (4 ) —
Net earnings $ (301 ) $ 211 **** $ 147 **** $ 210 **** $ 329 **** $ 897 **** $ 530 ****

Page 4

American Financial Group, Inc.<br><br><br>Earnings Per Share Summary<br> <br>(in millions, except per share<br>information)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Core net operating earnings $ 171 **** $ 203 **** $ 205 **** $ 192 **** $ 184 $ 784 **** $ 761 ****
Net earnings $ (301 ) $ 211 **** $ 147 **** $ 210 **** $ 329 $ 897 **** $ 530 ****
Average number of diluted shares - core 91.138 91.274 91.137 90.981 90.695 91.024 90.626
Average number of diluted shares - net 90.295 91.274 91.137 90.981 90.695 91.024 90.626
Diluted earnings per share:
Core net operating earnings per share $ 1.88 **** $ 2.22 **** $ 2.25 **** $ 2.12 **** $ 2.02 $ 8.62 **** $ 8.40 ****
Realized gains (losses) on securities (4.81 ) 0.56 (0.15 ) 0.48 1.61 2.47 (2.31 )
Annuity non-core earnings (losses) (0.34 ) 0.21 (0.23 ) (0.29 ) — (0.31 ) —
Special A&E charges:
Property and Casualty Insurance run-off<br>operations — — (0.15 ) — — (0.15 ) (0.16 )
Former Railroad and Manufacturing operations — — (0.10 ) — — (0.10 ) (0.08 )
Neon exited lines (0.07 ) (0.64 ) — — — (0.64 ) —
Other non-core items — (0.04 ) — — — (0.04 ) —
Diluted earnings (loss) per share $ (3.34 ) $ 2.31 **** $ 1.62 **** $ 2.31 **** $ 3.63 $ 9.85 **** $ 5.85 ****

Page 5

American Financial Group, Inc.
Property and Casualty Insurance - Summary Underwriting Results (GAAP)
($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Property and Transportation $ 27 $ (2 ) $ 38 $ 4 $ 39 $ 79 $ 120
Specialty Casualty 52 69 23 47 36 175 141
Specialty Financial 17 32 26 21 13 92 66
Other Specialty (7 ) (10 ) 1 (12 ) — (21 ) (5 )
Underwriting profit - Specialty **** 89 **** **** 89 **** **** 88 **** **** 60 **** **** 88 **** **** 325 **** **** 322 ****
Other core charges, included in loss and LAE (1 ) (1 ) (16 ) (1 ) (1 ) (19 ) (2 )
Underwriting profit - Core **** 88 **** **** 88 **** **** 72 **** **** 59 **** **** 87 **** **** 306 **** **** 320 ****
Special A&E charges, included in loss and LAE — — (18 ) — — (18 ) (18 )
Neon exited lines (1 ) (76 ) — — — (76 ) —
Underwriting profit (loss) - Property and Casualty Insurance $ 87 **** $ 12 **** $ 54 **** $ 59 **** $ 87 **** $ 212 **** $ 302 ****
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ 1 $ — $ — $ — $ 1 $ 2
Catastrophe loss 9 14 22 12 12 60 103
Total current accident year catastrophe losses $ 9 $ 15 $ 22 $ 12 $ 12 $ 61 $ 105
Prior year loss reserve development (favorable) / adverse $ (42 ) $ (45 ) $ (12 ) $ (41 ) $ (45 ) $ (143 ) $ (192 )
Combined ratio:
Property and Transportation 92.9 % 100.4 % 93.5 % 99.1 % 89.0 % 95.7 % 93.1 %
Specialty Casualty 90.7 % 89.7 % 96.5 % 92.5 % 94.2 % 93.3 % 94.2 %
Specialty Financial 89.1 % 79.6 % 83.7 % 85.6 % 91.4 % 85.0 % 88.9 %
Other Specialty 117.7 % 122.5 % 98.5 % 135.1 % 98.9 % 113.3 % 103.7 %
Combined ratio - Specialty **** 92.2 % **** 93.5 % **** 94.0 % **** 95.0 % **** 92.5 % **** 93.7 % **** 93.4 %
Other core charges 0.1 % 0.1 % 1.1 % 0.1 % 0.1 % 0.4 % 0.0 %
Neon exited lines charge 0.5 % 5.5 % 0.0 % 0.0 % 0.0 % 1.4 % 0.0 %
Special A&E charges 0.0 % 0.0 % 1.2 % 0.0 % 0.0 % 0.3 % 0.4 %
Combined ratio **** 92.8 % **** 99.1 % **** 96.3 % **** 95.1 % **** 92.6 % **** 95.8 % **** 93.8 %
Specialty combined ratio excl. catastrophe and prior year development 95.6 % 96.3 % 95.5 % 97.5 % 95.4 % 96.2 % 95.7 %
Loss and LAE components - property and casualty insurance
Current accident year, excluding catastrophe loss 61.2 % 66.0 % 64.6 % 62.7 % 61.8 % 64.0 % 63.6 %
Prior accident year loss reserve development (3.5 %) (0.4 %) (0.8 %) (3.3 %) (3.9 %) (2.2 %) (4.0 %)
Current accident year catastrophe loss 0.8 % 1.0 % 1.6 % 0.9 % 1.1 % 1.2 % 2.1 %
Loss and LAE ratio **** 58.5 % **** 66.6 % **** 65.4 % **** 60.3 % **** 59.0 % **** 63.0 % **** 61.7 %

Page 6

American Financial Group, Inc.<br><br><br>Specialty - Underwriting Results (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Gross written premiums $ 1,526 $ 1,749 $ 2,351 $ 1,664 $ 1,535 $ 7,299 $ 6,840
Ceded reinsurance premiums (361 ) (436 ) (733 ) (400 ) (388 ) (1,957 ) (1,817 )
Net written premiums 1,165 1,313 1,618 1,264 1,147 5,342 5,023
Change in unearned premiums (27 ) 57 (176 ) (64 ) 26 (157 ) (158 )
Net earned premiums 1,138 1,370 1,442 1,200 1,173 5,185 4,865
Loss and LAE 666 865 910 722 691 3,188 2,983
Underwriting expense 383 416 444 418 394 1,672 1,560
Underwriting profit $ 89 **** $ 89 **** $ 88 **** $ 60 **** $ 88 **** $ 325 **** $ 322 ****
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ 1 $ — $ — $ — $ 1 $ 2
Catastrophe loss 9 14 22 12 12 60 103
Total current accident year catastrophe losses $ 9 $ 15 $ 22 $ 12 $ 12 $ 61 $ 105
Prior year loss reserve development (favorable) / adverse $ (48 ) $ (53 ) $ (46 ) $ (42 ) $ (46 ) $ (187 ) $ (212 )
Combined ratio:
Loss and LAE ratio 58.5 % 63.2 % 63.1 % 60.2 % 58.9 % 61.5 % 61.3 %
Underwriting expense ratio 33.7 % 30.3 % 30.9 % 34.8 % 33.6 % 32.2 % 32.1 %
Combined ratio **** 92.2 % **** 93.5 % **** 94.0 % **** 95.0 % **** 92.5 % **** 93.7 % **** 93.4 %
Combined ratio excl. catastrophe and prior year development 95.6 % 96.3 % 95.5 % 97.5 % 95.4 % 96.2 % 95.7 %
Loss and LAE components:
Current accident year, excluding catastrophe loss 61.9 % 66.0 % 64.6 % 62.7 % 61.8 % 64.0 % 63.6 %
Prior accident year loss reserve development (4.2 %) (3.8 %) (3.1 %) (3.4 %) (4.0 %) (3.7 %) (4.4 %)
Current accident year catastrophe loss 0.8 % 1.0 % 1.6 % 0.9 % 1.1 % 1.2 % 2.1 %
Loss and LAE ratio **** 58.5 % **** 63.2 % **** 63.1 % **** 60.2 % **** 58.9 % **** 61.5 % **** 61.3 %

Page 7

American Financial Group, Inc.<br><br><br>Property and Transportation - Underwriting Results (GAAP)<br><br><br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Gross written premiums $ 494 $ 628 $ 1,113 $ 579 $ 439 $ 2,759 $ 2,645
Ceded reinsurance premiums (108 ) (179 ) (452 ) (157 ) (95 ) (883 ) (891 )
Net written premiums 386 449 661 422 344 1,876 1,754
Change in unearned premiums — 56 (78 ) (43 ) 17 (48 ) (25 )
Net earned premiums 386 505 583 379 361 1,828 1,729
Loss and LAE 237 392 421 259 225 1,297 1,192
Underwriting expense 122 115 124 116 97 452 417
Underwriting profit $ 27 **** $ (2 ) $ 38 **** $ 4 **** $ 39 **** $ 79 **** $ 120 ****
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ — $ — $ — $ — $ —
Catastrophe loss 8 7 8 8 9 32 26
Total current accident year catastrophe losses $ 8 $ 7 $ 8 $ 8 $ 9 $ 32 $ 26
Prior year loss reserve development (favorable) / adverse $ (24 ) $ (18 ) $ (17 ) $ (6 ) $ (26 ) $ (67 ) $ (50 )
Combined ratio:
Loss and LAE ratio 61.4 % 77.8 % 72.1 % 68.4 % 62.2 % 71.0 % 69.0 %
Underwriting expense ratio 31.5 % 22.6 % 21.4 % 30.7 % 26.8 % 24.7 % 24.1 %
Combined ratio **** 92.9 % **** 100.4 % **** 93.5 % **** 99.1 % **** 89.0 % **** 95.7 % **** 93.1 %
Combined ratio excl. catastrophe and prior year development 96.9 % 102.5 % 94.9 % 98.7 % 93.6 % 97.5 % 94.4 %
Loss and LAE components:
Current accident year, excluding catastrophe loss 65.4 % 79.9 % 73.5 % 68.0 % 66.8 % 72.8 % 70.3 %
Prior accident year loss reserve development (6.2 %) (3.5 %) (2.8 %) (1.6 %) (7.2 %) (3.6 %) (2.8 %)
Current accident year catastrophe loss 2.2 % 1.4 % 1.4 % 2.0 % 2.6 % 1.8 % 1.5 %
Loss and LAE ratio **** 61.4 % **** 77.8 % **** 72.1 % **** 68.4 % **** 62.2 % **** 71.0 % **** 69.0 %

Page 8

American Financial Group, Inc.<br><br><br>Specialty Casualty - Underwriting Results (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Gross written premiums $ 849 $ 929 $ 1,031 $ 896 $ 912 $ 3,768 $ 3,445
Ceded reinsurance premiums (263 ) (260 ) (287 ) (234 ) (286 ) (1,067 ) (936 )
Net written premiums 586 669 744 662 626 2,701 2,509
Change in unearned premiums (30 ) 7 (86 ) (28 ) 3 (104 ) (106 )
Net earned premiums 556 676 658 634 629 2,597 2,403
Loss and LAE 340 402 416 380 388 1,586 1,476
Underwriting expense 164 205 219 207 205 836 786
Underwriting profit $ 52 **** $ 69 **** $ 23 **** $ 47 **** $ 36 **** $ 175 **** $ 141 ****
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ 1 $ — $ — $ — $ 1 $ 1
Catastrophe loss — 5 10 1 1 17 45
Total current accident year catastrophe losses $ — $ 6 $ 10 $ 1 $ 1 $ 18 $ 46
Prior year loss reserve development (favorable) / adverse $ (24 ) $ (25 ) $ (19 ) $ (31 ) $ (13 ) $ (88 ) $ (139 )
Combined ratio:
Loss and LAE ratio 61.1 % 59.4 % 63.1 % 60.0 % 61.6 % 61.1 % 61.5 %
Underwriting expense ratio 29.6 % 30.3 % 33.4 % 32.5 % 32.6 % 32.2 % 32.7 %
Combined ratio **** 90.7 % **** 89.7 % **** 96.5 % **** 92.5 % **** 94.2 % **** 93.3 % **** 94.2 %
Combined ratio excl. catastrophe and prior year development 95.0 % 92.7 % 97.8 % 97.1 % 96.3 % 96.0 % 98.1 %
Loss and LAE components:
Current accident year, excluding catastrophe loss 65.4 % 62.4 % 64.4 % 64.6 % 63.7 % 63.8 % 65.4 %
Prior accident year loss reserve development (4.3 %) (3.8 %) (2.9 %) (4.7 %) (2.2 %) (3.4 %) (5.8 %)
Current accident year catastrophe loss 0.0 % 0.8 % 1.6 % 0.1 % 0.1 % 0.7 % 1.9 %
Loss and LAE ratio **** 61.1 % **** 59.4 % **** 63.1 % **** 60.0 % **** 61.6 % **** 61.1 % **** 61.5 %

Page 9

American Financial Group, Inc.<br><br><br>Specialty Financial - Underwriting Results (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Twelve MonthsEnded
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Gross written premiums $ 183 $ 192 $ 207 $ 189 $ 184 $ 772 $ 750
Ceded reinsurance premiums (34 ) (36 ) (40 ) (40 ) (39 ) (155 ) (148 )
Net written premiums 149 156 167 149 145 617 602
Change in unearned premiums 7 (4 ) (6 ) 2 1 (7 ) (4 )
Net earned premiums 156 152 161 151 146 610 598
Loss and LAE 59 40 47 49 56 192 225
Underwriting expense 80 80 88 81 77 326 307
Underwriting profit $ 17 **** $ 32 **** $ 26 **** $ 21 **** $ 13 **** $ 92 **** $ 66 ****
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ — $ — $ — $ — $ 1
Catastrophe loss 1 2 3 3 2 10 28
Total current accident year catastrophe losses $ 1 $ 2 $ 3 $ 3 $ 2 $ 10 $ 29
Prior year loss reserve development (favorable) / adverse $ (2 ) $ (14 ) $ (9 ) $ (9 ) $ (6 ) $ (38 ) $ (26 )
Combined ratio:
Loss and LAE ratio 38.0 % 26.1 % 29.7 % 32.3 % 38.2 % 31.5 % 37.6 %
Underwriting expense ratio 51.1 % 53.5 % 54.0 % 53.3 % 53.2 % 53.5 % 51.3 %
Combined ratio **** 89.1 % **** 79.6 % **** 83.7 % **** 85.6 % **** 91.4 % **** 85.0 % **** 88.9 %
Combined ratio excl. catastrophe and prior year development 89.7 % 87.7 % 87.2 % 89.7 % 94.3 % 89.7 % 88.6 %
Loss and LAE components:
Current accident year, excluding catastrophe loss 38.6 % 34.2 % 33.2 % 36.4 % 41.1 % 36.2 % 37.3 %
Prior accident year loss reserve development (1.2 %) (9.2 %) (5.5 %) (5.9 %) (4.3 %) (6.3 %) (4.4 %)
Current accident year catastrophe loss 0.6 % 1.1 % 2.0 % 1.8 % 1.4 % 1.6 % 4.7 %
Loss and LAE ratio **** 38.0 % **** 26.1 % **** 29.7 % **** 32.3 % **** 38.2 % **** 31.5 % **** 37.6 %

Page 10

American Financial Group, Inc.<br><br><br>Other Specialty - Underwriting Results (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Gross written premiums $ — $ — $ — $ — $ — $ — $ —
Ceded reinsurance premiums 44 39 46 31 32 148 158
Net written premiums 44 39 46 31 32 148 158
Change in unearned premiums (4 ) (2 ) (6 ) 5 5 2 (23 )
Net earned premiums 40 37 40 36 37 150 135
Loss and LAE 30 31 26 34 22 113 90
Underwriting expense 17 16 13 14 15 58 50
Underwriting profit (loss) $ (7 ) $ (10 ) $ 1 **** $ (12 ) $ — **** $ (21 ) $ (5 )
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium $ — $ — $ — $ — $ — $ — $ —
Catastrophe loss — — 1 — — 1 4
Total current accident year catastrophe losses $ — $ — $ 1 $ — $ — $ 1 $ 4
Prior year loss reserve development (favorable) / adverse $ 2 $ 4 $ (1 ) $ 4 $ (1 ) $ 6 $ 3
Combined ratio:
Loss and LAE ratio 73.9 % 83.5 % 64.0 % 96.0 % 59.7 % 75.4 % 66.4 %
Underwriting expense ratio 43.8 % 39.0 % 34.5 % 39.1 % 39.2 % 37.9 % 37.3 %
Combined ratio **** 117.7 % **** 122.5 % **** 98.5 % **** 135.1 % **** 98.9 % **** 113.3 % **** 103.7 %
Combined ratio excl. catastrophe and prior year development 113.4 % 113.4 % 99.0 % 123.4 % 100.8 % 108.9 % 99.0 %

Page 11

American Financial Group, Inc.<br><br><br>Annuity Earnings<br> <br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Net investment income $ 428 $ 435 $ 421 $ 420 $ 406 $ 1,682 $ 1,524
Investments marked to market through core operating earnings (6 ) 23 27 31 29 110 114
Guaranteed withdrawal benefit fees 17 17 17 17 16 67 65
Policy charges and other miscellaneous income (a) 18 13 14 13 12 52 61
Total revenues 457 488 479 481 463 1,911 1,764
Annuity benefits (a) 287 285 280 275 267 1,107 982
Acquisition expenses 71 65 64 67 60 256 242
Other expenses 32 34 35 35 35 139 131
Total costs and expenses 390 384 379 377 362 1,502 1,355
Pretax Annuity core operating earnings $ 67 **** $ 104 $ 100 $ 104 $ 101 **** $ 409 **** $ 409 ****
Other amounts previously reported as core operating, net (b) n/a n/a n/a n/a (11 ) (11 ) (48 )
Pretax Annuity core operating earnings - as reported $ 67 **** $ 104 $ 100 $ 104 $ 90 **** $ 398 **** $ 361 ****
Components of Pretax Annuity Core Operating Earnings
Pretax annuity core operating earnings before items below 79 84 75 75 75 309 305
Other amounts previously reported as core operating, net (b) n/a n/a n/a n/a (11 ) (11 ) (48 )
Pretax annuity core operating earnings before mark to market investments 79 84 75 75 64 298 257
Mark to market investment income (loss), net of DAC (12 ) 20 25 29 26 100 104
Pretax Annuity core operating earnings - as reported $ 67 **** $ 104 $ 100 $ 104 $ 90 **** $ 398 **** $ 361 ****
(a) Gains received on options in excess of index credits to policyholder are recorded through annuity benefits for<br>GAAP. For the investor supplement presentation, these gains are shown in policy charges and other miscellaneous income.
--- ---
(b) “Other” primarily reflects (1) the impact of fair value accounting, (2) the impact of<br>changes in the stock market on the liability for guaranteed benefits and DAC, and (3) unlocking.
--- ---

Page 12

American Financial Group, Inc.<br><br><br>Annuity Earnings - Version 2<br> <br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Net investment income (excluding investments marked to market) $ 428 $ 435 $ 421 $ 420 $ 406 $ 1,682 $ 1,524
Guaranteed withdrawal benefit fees 17 17 17 17 16 67 65
Policy charges and other miscellaneous income (a) 18 13 14 13 12 52 61
Total revenues 463 465 452 450 434 1,801 1,650
Annuity benefits (a) 287 285 280 275 267 1,107 982
Acquisition expenses (excluding investments marked to market) 65 62 62 65 57 246 232
Other expenses 32 34 35 35 35 139 131
Total costs and expenses 384 381 377 375 359 1,492 1,345
Pretax Annuity core operating earnings (excluding investments marked to market) **** 79 **** **** 84 **** 75 **** 75 **** 75 **** **** 309 **** **** 305 ****
Other amounts previously reported as core operating, net (b) n/a n/a n/a n/a (11 ) (11 ) (48 )
Pretax annuity core operating earnings before mark to market investments **** 79 **** **** 84 **** 75 **** 75 **** 64 **** **** 298 **** **** 257 ****
Investments marked to market, net of DAC (12 ) 20 25 29 26 100 104
Pretax Annuity core operating earnings - as reported $ 67 **** $ 104 $ 100 $ 104 $ 90 **** $ 398 **** $ 361 ****
(a) Gains received on options in excess of index credits to policyholder are recorded through annuity benefits for<br>GAAP. For the investor supplement presentation, these gains are shown in policy charges and other miscellaneous income.
--- ---
(b) “Other” primarily reflects (1) the impact of fair value accounting, (2) the impact of<br>changes in the stock market on the liability for guaranteed benefits and DAC, and (3) unlocking.
--- ---

Page 12a

American Financial Group, Inc.<br><br><br>Detail of Annuity Benefits Expense<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Detail of annuity benefits expense:
Cost of funds:
Amortization of options $ 150 $ 150 $ 149 $ 146 $ 141 $ 586 $ 506
Traditional fixed annuities 63 62 62 61 59 244 234
Fixed component of fixed-indexed annuities 25 25 24 23 22 94 78
Immediate annuities 6 6 6 6 6 24 24
Pension risk transfer (PRT) 4 3 2 1 1 7 1
Federal Home Loan Bank 5 6 7 7 7 27 20
Total cost of funds 253 252 250 244 236 982 863
Guaranteed withdrawal benefit reserve 25 24 21 20 19 84 74
Amortization of sales inducements 2 3 3 4 4 14 19
Change in expected death and annuitization reserve and other 7 6 6 7 8 27 26
Total other annuity benefits 34 33 30 31 31 125 119
Total annuity benefits expense $ 287 $ 285 $ 280 $ 275 $ 267 $ 1,107 $ 982

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
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Average fixed annuity investments (at amortized cost) (a) $ 40,073 $ 39,316 $ 38,650 $ 37,907 $ 36,991 $ 38,216 $ 34,471
Average annuity benefits accumulated 40,139 39,615 38,946 38,202 37,078 38,460 34,706
Annuity benefits accumulated in excess of investments (a) $ (66 ) $ (299 ) $ (296 ) $ (295 ) $ (87 ) $ (244 ) $ (235 )
As % of average annuity benefits accumulated (except as noted)
Net investment income (excluding investments marked to market) (as % of investments) 4.25 % 4.40 % 4.34 % 4.40 % 4.37 % 4.38 % 4.40 %
Cost of funds (2.52 %) (2.54 %) (2.57 %) (2.55 %) (2.54 %) (2.55 %) (2.49 %)
Other annuity benefits, net of guaranteed withdrawal benefit fees (0.14 %) (0.15 %) (0.12 %) (0.13 %) (0.14 %) (0.14 %) (0.15 %)
Core net interest spread on fixed annuities **** 1.59 % **** 1.71 % **** 1.65 % **** 1.72 % **** 1.69 % **** 1.69 % **** 1.76 %
Policy charges and other miscellaneous income 0.15 % 0.11 % 0.12 % 0.11 % 0.09 % 0.11 % 0.15 %
Acquisition expenses (excluding investments marked to market) (0.61 %) (0.62 %) (0.63 %) (0.66 %) (0.62 %) (0.63 %) (0.64 %)
Other expenses (0.32 %) (0.33 %) (0.34 %) (0.37 %) (0.36 %) (0.35 %) (0.37 %)
Core net spread earned on fixed annuities (excluding investments marked to market) **** 0.81 % **** 0.87 % **** 0.80 % **** 0.80 % **** 0.80 % **** 0.82 % **** 0.90 %
Investments marked to market, net of DAC **** (0.12 %) **** 0.20 % **** 0.26 % **** 0.31 % **** 0.28 % **** 0.26 % **** 0.30 %
Core net spread earned on fixed annuities **** 0.69 % **** 1.07 % **** 1.06 % **** 1.11 % **** 1.08 % **** 1.08 % **** 1.20 %
Net spread earned on items previously reported as core operating **** n/a **** **** n/a **** **** n/a **** **** n/a **** **** (0.12 %) **** (0.03 %) **** (0.13 %)
Core net spread earned on fixed annuities - as reported **** 0.69 % **** 1.07 % **** 1.06 % **** 1.11 % **** 0.96 % **** 1.05 % **** 1.07 %
Average annuity benefits accumulated $ 40,139 $ 39,615 $ 38,946 $ 38,202 $ 37,078 $ 38,460 $ 34,706
Net spread earned on fixed annuities (excluding investments marked to market) - core 0.81 % 0.87 % 0.80 % 0.80 % 0.80 % 0.82 % 0.90 %
Earnings on fixed annuity benefits accumulated - core $ 81 **** $ 85 **** $ 78 **** $ 77 **** $ 74 **** $ 314 **** $ 314 ****
Annuity benefits accumulated in excess of investments $ (66 ) $ (299 ) $ (296 ) $ (295 ) $ (87 ) $ (244 ) $ (235 )
Net investment income (excluding investments marked to market) (as % of investments) 4.25 % 4.40 % 4.34 % 4.40 % 4.37 % 4.38 % 4.40 %
Earnings/(loss) on annuity benefits accumulated in excess of investments $ (1 ) $ (3 ) $ (3 ) $ (3 ) $ (1 ) $ (10 ) $ (11 )
Variable annuity earnings **** (1 ) **** 2 **** **** — **** **** 1 **** **** 2 **** **** 5 **** **** 2 ****
Pretax Annuity core operating earnings (excluding investments marked to market) **** 79 **** **** 84 **** **** 75 **** **** 75 **** **** 75 **** **** 309 **** **** 305 ****
Investments marked to market, net of DAC **** (12 ) **** 20 **** **** 25 **** **** 29 **** **** 26 **** **** 100 **** **** 104 ****
Pretax Annuity core operating earnings **** 67 **** **** 104 **** **** 100 **** **** 104 **** **** 101 **** **** 409 **** **** 409 ****
Other amounts previously reported as core operating, net **** n/a **** **** n/a **** **** n/a **** **** n/a **** **** (11 ) **** (11 ) **** (48 )
Pretax Annuity core operating earnings - as reported $ 67 **** $ 104 **** $ 100 **** $ 104 **** $ 90 **** $ 398 **** $ 361 ****
(a) Excludes non-investment assets such as deferred acquisition costs, FIA<br>options, accrued investment income and company owned life insurance.
--- ---

Page 14

American Financial Group, Inc.<br><br><br>Statutory Annuity Premiums<br> <br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Financial institutions single premium annuities - indexed $ 424 $ 359 $ 325 $ 429 $ 424 $ 1,537 $ 1,776
Financial institutions single premium annuities - fixed 287 270 302 313 344 1,229 492
Retail single premium annuities - indexed 172 170 198 274 301 943 1,418
Retail single premium annuities - fixed 25 25 30 36 29 120 87
Broker dealer single premium annuities - indexed 138 107 134 189 227 657 1,271
Broker dealer single premium annuities - fixed 17 9 9 8 6 32 14
Pension risk transfer (PRT) 103 158 39 50 10 257 132
Education market - fixed and indexed annuities 39 36 35 44 49 164 192
Subtotal fixed annuity premiums **** 1,205 **** 1,134 **** 1,072 **** 1,343 **** 1,390 **** 4,939 **** 5,382
Variable annuities 5 5 5 6 5 21 25
Total annuity premiums $ 1,210 $ 1,139 $ 1,077 $ 1,349 $ 1,395 $ 4,960 $ 5,407
Summary by Distribution Channel:
Financial institutions $ 711 $ 629 $ 627 $ 742 $ 768 $ 2,766 $ 2,268
Retail 197 195 228 310 330 1,063 1,505
Broker dealer 155 116 143 197 233 689 1,285
Other 147 199 79 100 64 442 349
Total annuity premiums $ 1,210 $ 1,139 $ 1,077 $ 1,349 $ 1,395 $ 4,960 $ 5,407
Summary by Product Type:
Total indexed $ 753 $ 655 $ 675 $ 917 $ 980 $ 3,227 $ 4,580
Total fixed 452 479 397 426 410 1,712 802
Variable 5 5 5 6 5 21 25
Total annuity premiums $ 1,210 $ 1,139 $ 1,077 $ 1,349 $ 1,395 $ 4,960 $ 5,407

Page 15

American Financial Group, Inc.<br><br><br>Fixed Annuity Benefits Accumulated (GAAP)<br> <br>($ in<br>millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Beginning fixed annuity reserves $ 40,018 $ 39,212 $ 38,680 $ 37,724 $ 36,431 $ 36,431 $ 33,005
Premiums 1,205 1,134 1,072 1,343 1,390 4,939 5,382
Federal Home Loan Bank (“FHLB”) advances (paydowns) 200 — — — — — 225
Surrenders, benefits and other withdrawals (794 ) (829 ) (808 ) (862 ) (761 ) (3,260 ) (2,836 )
Interest and other annuity benefit expenses:
Cost of funds 253 252 250 244 236 982 863
Embedded derivative marked to market (647 ) 276 111 251 462 1,100 (248 )
Unlockings — — (75 ) — — (75 ) 59
Other 25 (27 ) (18 ) (20 ) (34 ) (99 ) (19 )
Ending fixed annuity reserves $ 40,260 **** $ 40,018 **** $ 39,212 **** $ 38,680 **** $ 37,724 **** $ 40,018 **** $ 36,431 ****
Reconciliation to annuity benefits accumulated:
Ending fixed annuity reserves $ 40,260 $ 40,018 $ 39,212 $ 38,680 $ 37,724 $ 40,018 $ 36,431
Impact of unrealized investment gains on reserves 38 225 269 192 108 225 10
Fixed component of variable annuities 165 163 170 172 174 163 175
Annuity benefits accumulated per balance sheet $ 40,463 **** $ 40,406 **** $ 39,651 **** $ 39,044 **** $ 38,006 **** $ 40,406 **** $ 36,616 ****
Annualized surrenders and other withdrawals as a % of beginning reserves 7.9 % 8.5 % 8.4 % 9.1 % 8.4 % 8.9 % 8.6 %
Rider reserves included in ending fixed annuity reserves above $ 690 **** $ 625 **** $ 611 **** $ 491 **** $ 478 **** $ 625 **** $ 472 ****
Embedded Derivative liability included in ending fixed annuity reserves above $ 3,099 **** $ 3,730 **** $ 3,469 **** $ 3,541 **** $ 3,247 **** $ 3,730 **** $ 2,720 ****

Page 16

American Financial Group, Inc.<br><br><br>Guaranteed Minimum Interest Rate (“GMIR”) Analysis<br><br><br>($ in millions)
GMIR (a) 12/31/19 9/30/19 6/30/19 3/31/19 12/31/18
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
1 - 1.99% 83 % 83 % 82 % 82 % 81 % 80 %
2 - 2.99% 3 % 3 % 3 % 3 % 4 % 4 %
3 - 3.99% 7 % 7 % 7 % 8 % 8 % 8 %
4.00% and above 7 % 7 % 8 % 7 % 7 % 8 %
Annuity Benefits Accumulated 40,463 $ 40,406 $ 39,651 $ 39,044 $ 38,006 $ 36,616
Traditional Fixed and FIA Surrender Value (b) (c) 30,934 $ 30,921 $ 30,292 $ 29,891 $ 29,163 $ 27,842
Ability to Lower Average Crediting Rates by (b) (d) 1.18 % 1.19 % 1.20 % 1.20 % 1.20 % 1.19 %
Pretax earnings impact of crediting guaranteed minimums (b) 365 $ 368 $ 363 $ 359 $ 350 $ 331
(assumes net DAC impact over time = 0)

All values are in US Dollars.

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

Page 17

American Financial Group, Inc.<br><br><br>Annuity Non-Core Earnings (Losses)<br><br><br>($ in millions)
Reported in Reported in
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Non-Core Earnings Core Earnings
Three Months Ended Three MonthsEnded
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/18
Annuity Non-Core Earnings (Losses):
Stock market impact on:
Liability for guaranteed benefits (a) $ (33 ) $ 12 $ 2 $ 6 $ 14 34 $ (14 )
DAC and sales inducements (b) (10 ) 4 1 1 5 11 (4 )
Fair Value (FV) accounting (21 ) 8 1 — 14 23 (11 )
Subtotal impact of changes in stock market (64 ) 24 4 7 33 68 (29 )
Impact of changes in interest rates on FV accounting 29 (4 ) (30 (38 ) (45 ) (117 ) 33
Other FIA items (3 ) 4 — (2 ) 1 3 (21 )
Unlockings — — (1 — — (1 ) (31 )
Annuity Non-Core Earnings (Losses) $ (38 ) $ 24 **** $ (27 $ (33 ) $ (11 ) (47 ) $ (48 )
Q1 Core = (11)
Reported as Non-core Non-core Non-core Non-core Core Q2/Q3/Q4 Non-core = (36) Core
Annuity Non-Core Earnings (Losses), net oftaxes $ (30 ) $ 19 **** $ (21 $ (27 ) $ — **** (29 ) $ — ****
Annuity Non-Core Net Spread Earned:
Stock market impact on:
Liability for guaranteed benefits (a) (0.33 %) 0.12 % 0.02 0.06 % 0.15 % 0.09 % (0.04 %)
DAC and sales inducements (b) (0.10 %) 0.04 % 0.01 0.01 % 0.06 % 0.03 % (0.01 %)
Fair Value (FV) accounting (0.21 %) 0.08 % 0.01 0.00 % 0.15 % 0.06 % (0.03 %)
Subtotal impact of changes in stock market (0.64 %) 0.24 % 0.04 0.07 % 0.36 % 0.18 % (0.08 %)
Impact of changes in interest rates on FV accounting 0.29 % (0.04 %) (0.31 (0.40 %) (0.49 %) (0.31 %) 0.10 %
Other FIA items (0.03 %) 0.04 % 0.00 (0.02 %) 0.01 % 0.01 % (0.06 %)
Unlockings 0.00 % 0.00 % (0.01 0.00 % 0.00 % 0.00 % (0.09 %)
Non-core net spread earned on fixedannuities **** (0.38 %) **** 0.24 % **** (0.28 **** (0.35 %) **** (0.12 %) (0.12 %) **** (0.13 %)
Q1 Core = (.03%)
Reported as Non-core Non-core Non-core Non-core Core Q2/Q3/Q4 Non-core = (.09%) Core
(a)   Reflects the impact of changes in the stock market on AFG’s liability for fixed-indexed<br>annuities with guaranteed benefits. Increases in the stock market will generally have a favorable earnings impact; decreases in the stock market will generally have an unfavorable impact.<br><br><br><br> <br>(b)   Reflects the impact of<br>changes in the stock market on the current and projected lifetime profitability of AFG’s annuity business. Increases in the stock market will generally have a favorable earnings impact; decreases in the stock market will generally have an<br>unfavorable impact.
S&P 500 2,585 3,231 2,977 2,942 2,834 3,231 2,507
Average 5 and 15 year Corp A2 rates **** 3.01 % **** 2.74 % **** 2.71 **** 2.97 % **** 3.41 % 2.74 % **** 3.90 %
Non-core earnings sensitivities:
Incremental +/- 1% change in S&P 500 ~ +/-1mm to 2mm
Incremental +/- 10bps change in interest rates ~ +/-7mm to 8mm
(Assumes parallel shift in rates (primarily Corporate A2 rates))

All values are in US Dollars.

Page 18

American Financial Group, Inc.<br><br><br>Reconciliation from Core to GAAP Annuity Pretax Earnings<br><br><br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Annuity Earnings
Core annuity operating earnings - as reported (see page 12) $ 67 $ 104 $ 100 $ 104 $ 90 $ 398 $ 361
Annuity non-core earnings (losses) (38 ) 24 (27 ) (33 ) — (36 ) —
Earnings before income taxes - GAAP $ 29 $ 128 $ 73 $ 71 $ 90 $ 362 $ 361
Policy Charges and Other Miscellaneous Income
Policy charges and other miscellaneous income (see page 12) $ 18 $ 13 $ 14 $ 13 $ 12 $ 52 $ 61
Annuity non-core policy charges and other miscellaneous<br>income — — 1 — — 1 (1 )
Policy Charges and Other Miscellaneous Income - GAAP $ 18 $ 13 $ 15 $ 13 $ 12 $ 53 $ 60
Annuity Benefit Expense
Annuity benefits expense (see page 13) $ 287 $ 285 $ 280 $ 275 $ 267 $ 1,107 $ 982
Annuity non-core annuity benefits (3 ) (30 ) (26 ) 67 45 56 34
Annuity Benefit Expense - GAAP $ 284 $ 255 $ 254 $ 342 $ 312 $ 1,163 $ 1,016
Acquisition Expenses
Acquisition expenses (see page 12) $ 71 $ 65 $ 64 $ 67 $ 60 $ 256 $ 242
Annuity non-core acquisition expenses 41 6 54 (34 ) (34 ) (8 ) 13
Acquisition Expenses - GAAP $ 112 $ 71 $ 118 $ 33 $ 26 $ 248 $ 255
Net Spread on Fixed Annuities
Core net spread earned on fixed annuities - as reported (see page 14) 0.69 % 1.07 % 1.06 % 1.11 % 0.96 % 1.05 % 1.07 %
Non-core net spread earned on fixed annuities (0.38 %) 0.24 % (0.28 %) (0.35 %) 0.00 % (0.09 %) 0.00 %
Net Spread on Fixed Annuities 0.31 % 1.31 % 0.78 % 0.76 % 0.96 % 0.96 % 1.07 %

Page 19

American Financial Group, Inc.<br><br><br>Consolidated Balance Sheet<br> <br>($ in millions)
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/18
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Assets:
Total cash and investments $ 53,221 $ 55,252 $ 54,207 $ 52,907 $ 51,040 $ 48,498
Recoverables from reinsurers 3,387 3,415 3,261 3,150 3,258 3,349
Prepaid reinsurance premiums 708 678 781 651 636 610
Agents’ balances and premiums receivable 1,302 1,335 1,403 1,398 1,283 1,234
Deferred policy acquisition costs 1,573 1,037 964 1,203 1,447 1,682
Assets of managed investment entities 4,026 4,736 4,702 4,781 4,786 4,700
Other receivables 981 975 1,187 999 1,011 1,090
Variable annuity assets (separate accounts) 497 628 601 616 610 557
Other assets 1,741 1,867 1,754 1,785 1,854 1,529
Goodwill 207 207 207 207 207 207
Total assets $ 67,643 **** $ 70,130 **** $ 69,067 **** $ 67,697 **** $ 66,132 **** $ 63,456 ****
Liabilities and Equity:
Unpaid losses and loss adjustment expenses $ 10,106 $ 10,232 $ 9,847 $ 9,577 $ 9,623 $ 9,741
Unearned premiums 2,808 2,830 2,986 2,683 2,605 2,595
Annuity benefits accumulated 40,463 40,406 39,651 39,044 38,006 36,616
Life, accident and health reserves 607 612 613 619 632 635
Payable to reinsurers 779 814 867 755 730 752
Liabilities of managed investment entities 3,865 4,571 4,523 4,590 4,593 4,512
Long-term debt 1,473 1,473 1,423 1,423 1,423 1,302
Variable annuity liabilities (separate accounts) 497 628 601 616 610 557
Other liabilities 1,998 2,295 2,235 2,300 2,245 1,774
Total liabilities $ 62,596 **** $ 63,861 **** $ 62,746 **** $ 61,607 **** $ 60,467 **** $ 58,484 ****
Shareholders’ equity:
Common stock $ 90 $ 90 $ 90 $ 90 $ 90 $ 89
Capital surplus 1,309 1,307 1,292 1,277 1,256 1,245
Retained earnings 3,616 4,009 4,022 3,914 3,875 3,588
Unrealized gains - fixed maturities 16 862 920 812 464 83
Unrealized gains (losses) - fixed maturity-related cash flow hedges 44 17 25 18 — (11 )
Other comprehensive income, net of tax (28 ) (16 ) (28 ) (21 ) (20 ) (24 )
Total shareholders’ equity **** 5,047 **** **** 6,269 **** **** 6,321 **** **** 6,090 **** **** 5,665 **** **** 4,970 ****
Noncontrolling interests **** — **** **** — **** **** — **** **** — **** **** — **** **** 2 ****
Total liabilities and equity $ 67,643 **** $ 70,130 **** $ 69,067 **** $ 67,697 **** $ 66,132 **** $ 63,456 ****

Page 20

American Financial Group, Inc.<br><br><br>Book Value Per Share and Price / Book Summary<br> <br>(in<br>millions, except per share information)
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/18
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Shareholders’ equity $ 5,047 **** $ 6,269 **** $ 6,321 **** $ 6,090 **** $ 5,665 **** $ 4,970 ****
Unrealized (gains) related to fixed maturities (60 ) (879 ) (945 ) (830 ) (464 ) (72 )
Adjusted shareholders’ equity **** 4,987 **** **** 5,390 **** **** 5,376 **** **** 5,260 **** **** 5,201 **** **** 4,898 ****
Goodwill (207 ) (207 ) (207 ) (207 ) (207 ) (207 )
Intangibles (40 ) (43 ) (45 ) (48 ) (51 ) (54 )
Tangible adjusted shareholders’ equity $ 4,740 **** $ 5,140 **** $ 5,124 **** $ 5,005 **** $ 4,943 **** $ 4,637 ****
Common shares outstanding 89.827 90.304 90.127 89.918 89.638 89.292
Book value per share:
Book value per share $ 56.18 **** $ 69.43 **** $ 70.14 **** $ 67.72 **** $ 63.20 **** $ 55.66 ****
Adjusted (a) **** 55.52 **** **** 59.70 **** **** 59.65 **** **** 58.49 **** **** 58.02 **** **** 54.86 ****
Tangible, adjusted (b) **** 52.77 **** **** 56.93 **** **** 56.84 **** **** 55.65 **** **** 55.14 **** **** 51.93 ****
Market capitalization
AFG’s closing common share price $ 70.08 $ 109.65 $ 107.85 $ 102.47 $ 96.21 $ 90.53
Market capitalization $ 6,295 $ 9,902 $ 9,720 $ 9,214 $ 8,624 $ 8,084
Price / Adjusted book value ratio 1.26 1.84 1.81 1.75 1.66 1.65
(a) Excludes unrealized gains related to fixed maturity investments.
--- ---
(b) Excludes unrealized gains related to fixed maturity investments, goodwill and intangibles.<br>
--- ---

Page 21

American Financial Group, Inc.<br><br><br>Capitalization<br> <br>($ in millions)
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/18
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
AFG senior obligations $ 1,018 $ 1,018 $ 1,018 $ 1,018 $ 1,018 $ 1,018
Borrowings drawn under credit facility — — — — — —
Debt excluding subordinated debt $ 1,018 **** $ 1,018 **** $ 1,018 **** $ 1,018 **** $ 1,018 **** $ 1,018 ****
AFG subordinated debentures 475 475 425 425 425 300
Total principal amount of long-term debt $ 1,493 **** $ 1,493 **** $ 1,443 **** $ 1,443 **** $ 1,443 **** $ 1,318 ****
Shareholders’ equity 5,047 6,269 6,321 6,090 5,665 4,970
Noncontrolling interests (including redeemable NCI) — — — — — 2
Less:
Unrealized (gains) related to fixed maturity investments (60 ) (879 ) (945 ) (830 ) (464 ) (72 )
Total adjusted capital $ 6,480 **** $ 6,883 **** $ 6,819 **** $ 6,703 **** $ 6,644 **** $ 6,218 ****
Ratio of debt to total adjusted capital:
Including subordinated debt **** 23.0 % **** 21.7 % **** 21.2 % **** 21.5 % **** 21.7 % **** 21.2 %
Excluding subordinated debt **** 15.7 % **** 14.8 % **** 14.9 % **** 15.2 % **** 15.3 % **** 16.4 %

Page 22

American Financial Group, Inc.<br><br><br>Additional Supplemental Information<br> <br>($ in<br>millions)
Three Months Ended Twelve MonthsEnded
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Property and Casualty Insurance
Paid Losses (GAAP) $ 751 $ 727 $ 769 $ 666 $ 704 $ 2,866 $ 2,602
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/18
GAAP Equity (excluding AOCI)
Property and Casualty Insurance $ 3,800 $ 4,043 $ 4,094 $ 3,959 $ 3,868 $ 3,638
Annuity 2,512 2,715 2,613 2,612 2,553 2,443
Parent and other subsidiaries (1,297 ) (1,352 ) (1,303 ) (1,290 ) (1,200 ) (1,159 )
AFG GAAP Equity (excluding AOCI) $ 5,015 $ 5,406 $ 5,404 $ 5,281 $ 5,221 $ 4,922
Allowable dividends without regulatory approval
Property and Casualty Insurance $ 565 $ 565 $ 529 $ 529 $ 529 $ 529
Annuity and Run-off 287 287 768 768 768 768
Total $ 852 **** $ 852 **** $ 1,297 **** $ 1,297 **** $ 1,297 **** $ 1,297 ****

Page 23

American Financial Group, Inc.<br><br><br>Total Cash and Investments<br> <br>($ in millions)
Carrying Value - March 31, 2020
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Property and Parent and % of
Casualty Annuity and Other Non- Consolidate Total AFG Investment
Insurance Run-off Insurance CLOs Consolidated Portfolio
Total cash and investments:
Cash and cash equivalents $ 1,089 $ 378 $ 206 $ — $ 1,673 3 %
Fixed maturities - Available for sale 8,502 37,623 9 — 46,134 87 %
Fixed maturities - Trading 50 46 — — 96 0 %
Equity securities - common stocks 449 417 53 — 919 2 %
Equity securities - perpetual preferred 367 273 — — 640 1 %
Investments accounted for using the equity method 736 1,027 — — 1,763 3 %
Mortgage loans 268 1,078 — — 1,346 3 %
Policy loans — 161 — — 161 0 %
Equity index call options — 209 — — 209 0 %
Real estate and other investments 113 274 53 (160 ) 280 1 %
Total cash and investments $ 11,574 $ 41,486 $ 321 $ (160 ) $ 53,221 **** 100 %
Carrying Value - December 31, 2019
Property and Parent and % of
Casualty Annuity and Other Non- Consolidate Total AFG Investment
Insurance Run-off Insurance CLOs Consolidated Portfolio
Total cash and investments:
Cash and cash equivalents $ 1,387 $ 746 $ 181 $ — $ 2,314 4 %
Fixed maturities - Available for sale 8,596 37,899 10 — 46,505 84 %
Fixed maturities - Trading 59 54 — — 113 0 %
Equity securities - common stocks 664 553 66 — 1,283 3 %
Equity securities - perpetual preferred 397 257 — — 654 1 %
Investments accounted for using the equity method 703 985 — — 1,688 3 %
Mortgage loans 262 1,067 — — 1,329 2 %
Policy loans — 164 — — 164 0 %
Equity index call options — 924 — — 924 2 %
Real estate and other investments 122 265 55 (164 ) 278 1 %
Total cash and investments $ 12,190 $ 42,914 $ 312 $ (164 ) $ 55,252 **** 100 %

Page 24

American Financial Group, Inc.<br><br><br>Net Investment Income<br> <br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Property and Casualty Insurance:
Gross Investment Income
Fixed maturities - Available for sale $ 81 $ 79 $ 75 $ 79 $ 77 $ 310 $ 284
Fixed maturities - Trading 1 — 1 1 1 3 3
Equity securities - dividends 10 11 12 13 13 49 48
Equity securities - MTM 3 (1 ) 7 1 2 9 13
Equity in investees 11 21 20 20 3 64 65
AFG managed CLOs (11 ) (2 ) (2 ) 2 3 1 2
Other investments (a) 6 13 12 10 7 42 32
Gross investment income **** 101 **** **** 121 **** **** 125 **** **** 126 **** **** 106 **** **** 478 **** **** 447 ****
Investment expenses (2 ) (1 ) (1 ) (2 ) (2 ) (6 ) (9 )
Total net investment income $ 99 **** $ 120 **** $ 124 **** $ 124 **** $ 104 **** $ 472 **** $ 438 ****
Average cash and investments (b) $ 11,457 **** $ 11,744 **** $ 11,387 **** $ 11,193 **** $ 10,997 **** $ 11,348 **** $ 10,497 ****
Average yield (c) **** 3.46 % **** 4.09 % **** 4.36 % **** 4.43 % **** 3.78 % **** 4.16 % **** 4.17 %
Fixed Annuity
Gross Investment Income
Fixed maturities - Available for sale $ 403 $ 406 $ 393 $ 391 $ 384 $ 1,574 $ 1,425
Equity securities - dividends 7 8 9 8 9 34 30
Equity securities - MTM 5 4 7 3 3 17 13
Equity in investees 14 24 23 25 18 90 96
AFG managed CLOs (25 ) (5 ) (3 ) 3 8 3 5
Other investments (a) 19 23 21 22 15 81 73
Gross investment income **** 423 **** **** 460 **** **** 450 **** **** 452 **** **** 437 **** **** 1,799 **** **** 1,642 ****
Investment expenses (3 ) (4 ) (4 ) (4 ) (4 ) (16 ) (13 )
Total net investment income $ 420 **** $ 456 **** $ 446 **** $ 448 **** $ 433 **** $ 1,783 **** $ 1,629 ****
Average cash and investments (b) $ 40,073 **** $ 39,316 **** $ 38,650 **** $ 37,907 **** $ 36,991 **** $ 38,216 **** $ 34,471 ****
Average yield (c) **** 4.19 % **** 4.63 % **** 4.62 % **** 4.73 % **** 4.68 % **** 4.67 % **** 4.73 %
AFG consolidated net investment income:
Property & Casualty core $ 99 $ 120 $ 124 $ 124 $ 104 $ 472 $ 438
Neon exited lines non-core (6 ) — — — — — —
Annuity:
Fixed Annuity 420 456 446 448 433 1,783 1,629
Variable Annuity 2 2 2 3 2 9 9
Parent & other (7 ) 8 11 10 14 43 25
Consolidate CLOs 36 7 5 (5 ) (11 ) (4 ) (7 )
Total net investment income $ 544 **** $ 593 **** $ 588 **** $ 580 **** $ 542 **** $ 2,303 **** $ 2,094 ****
(a) Includes income from mortgage loans, real estate, policy loans, short-term investments, and cash equivalents.<br>
--- ---
(b) Average cash and investments is the average of the beginning and ending quarter balances, or the average of the<br>five quarters balances.
--- ---
(c) Average yield is calculated by dividing investment income for the quarter by the average cash and investment<br>balance over the quarter.
--- ---

Page 25

American Financial Group, Inc.<br><br><br>Significant Investments Marked-to-Market Through Investment Income andInvestments Accounted For Using the Equity Method<br> <br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Property and Casualty Insurance:
Net Investment Income
Equity securities MTM through investment income (a) $ 3 $ (1 ) $ 7 $ 1 $ 2 $ 9 $ 13
Investments accounted for using the equity method (b) 11 21 20 20 3 64 65
AFG managed CLOs (eliminated in consolidation) (11 ) (2 ) (2 ) 2 3 1 2
Total Property & Casualty $ 3 **** $ 18 **** $ 25 **** $ 23 **** $ 8 **** $ 74 **** $ 80 ****
Investments
Equity securities MTM through investment income (a) $ 93 $ 85 $ 77 $ 57 $ 52 $ 85 $ 50
Investments accounted for using the equity method (b) 736 703 625 614 578 703 557
AFG managed CLOs (eliminated in consolidation) 40 48 53 56 57 48 56
Total Property & Casualty $ 869 **** $ 836 **** $ 755 **** $ 727 **** $ 687 **** $ 836 **** $ 663 ****
Annualized Yield - Property & Casualty **** 1.4 % **** 9.1 % **** 13.5 % **** 13.0 % **** 4.7 % **** 10.1 % **** 13.9 %
Fixed Annuity:
Net Investment Income
Equity securities MTM through investment income (a) $ 5 $ 4 $ 7 $ 3 $ 3 $ 17 $ 13
Investments accounted for using the equity method (b) 14 24 23 25 18 90 96
AFG managed CLOs (eliminated in consolidation) (25 ) (5 ) (3 ) 3 8 3 5
Total Fixed Annuity $ (6 ) $ 23 **** $ 27 **** $ 31 **** $ 29 **** $ 110 **** $ 114 ****
Investments
Equity securities MTM through investment income (a) $ 160 $ 142 $ 120 $ 101 $ 88 $ 142 $ 84
Investments accounted for using the equity method (b) 1,027 985 910 892 862 985 817
AFG managed CLOs (eliminated in consolidation) 120 116 125 135 136 116 132
Total Fixed Annuity $ 1,307 **** $ 1,243 **** $ 1,155 **** $ 1,128 **** $ 1,086 **** $ 1,243 **** $ 1,033 ****
Annualized Yield - Fixed Annuity **** (1.9 %) **** 7.7 % **** 9.5 % **** 11.2 % **** 10.9 % **** 9.7 % **** 12.4 %
Combined (includes Parent amounts not shown above): ****
Net Investment Income
Equity securities MTM through investment income (a) $ (5 ) $ 3 $ 17 $ 8 $ 11 $ 39 $ 22
Investments accounted for using the equity method (b) 25 45 43 45 21 154 161
AFG managed CLOs (eliminated in consolidation) (36 ) (7 ) (5 ) 5 11 4 7
Total Combined (including Parent) $ (16 ) $ 41 **** $ 55 **** $ 58 **** $ 43 **** $ 197 **** $ 190 ****
Investments
Equity securities MTM through investment income (a) $ 306 $ 294 $ 262 $ 220 $ 198 $ 294 $ 187
Investments accounted for using the equity method (b) 1,763 1,688 1,535 1,506 1,440 1,688 1,374
AFG managed CLOs (eliminated in consolidation) 160 164 178 191 193 164 188
Total Combined (including Parent) $ 2,229 **** $ 2,146 **** $ 1,975 **** $ 1,917 **** $ 1,831 **** $ 2,146 **** $ 1,749 ****
Annualized Yield - Combined **** (2.9 %) **** 8.0 % **** 11.3 % **** 12.4 % **** 9.6 % **** 10.2 % **** 12.2 %
(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.
--- ---

Page 26

American Financial Group, Inc.<br><br><br>Fixed Maturities - By Security Type - AFG Consolidated<br> <br>($<br>in millions )
% of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Unrealized % of Investment
March 31, 2020 Book Value (b) Fair Value Gain (Loss) Fair Value Portfolio
US Government and government agencies $ 194 $ 209 $ 15 0 % 0 %
States, municipalities and political subdivisions 6,544 6,924 380 15 % 13 %
Foreign government 199 205 6 0 % 0 %
Residential mortgage-backed securities 3,073 3,132 59 7 % 6 %
Commercial mortgage-backed securities 892 907 15 2 % 2 %
Collateralized loan obligations 4,439 4,138 (301 ) 9 % 8 %
Other asset-backed securities 7,055 6,758 (297 ) 15 % 13 %
Corporate and other bonds 23,740 23,957 217 52 % 45 %
Total AFG consolidated $ 46,136 **** $ 46,230 $ 94 **** **** 100 % **** 87 %
Annualized yield on available for sale fixed maturities: ****
Excluding investment expense (a) 4.33 %
Net of investment expense (a) 4.29 %
Approximate average life and duration:
Approximate average life 5.5 years
Approximate duration 4 years
% of
Unrealized % of Investment
December 31, 2019 Book Value Fair Value Gain (Loss) Fair Value Portfolio
US Government and government agencies $ 203 $ 213 $ 10 1 % 0 %
States, municipalities and political subdivisions 6,628 6,987 359 15 % 12 %
Foreign government 209 211 2 0 % 0 %
Residential mortgage-backed securities 2,901 3,161 260 7 % 6 %
Commercial mortgage-backed securities 896 927 31 2 % 2 %
Collateralized loan obligations 4,307 4,280 (27 ) 9 % 8 %
Other asset-backed securities 6,992 7,128 136 15 % 13 %
Corporate and other bonds 22,501 23,711 1,210 51 % 43 %
Total AFG consolidated $ 44,637 **** $ 46,618 $ 1,981 **** **** 100 % **** 84 %
Annualized yield on available for sale fixed maturities: ****
Excluding investment expense (a) 4.48 %
Net of investment expense (a) 4.44 %
Approximate average life and duration:
Approximate average life 5.5 years
Approximate duration 4 years
(a) Annualized yield is calculated by dividing investment income for the quarter by the average cost over the<br>quarter. Average cost is the average of the beginning and ending quarter asset balances.
--- ---
(b) Book Value is amortized cost, net of allowance for expected credit losses.
--- ---

Page 27

American Financial Group, Inc.<br><br><br>Fixed Maturities - By Security Type Portfolio<br> <br>($ in<br>millions )
March 31, 2020 December 31, 2019
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Unrealized % of Unrealized % of
Book Value Fair Value Gain (Loss) Fair Value Book Value Fair Value Gain (Loss) Fair Value
Property and Casualty Insurance:
US Government and government agencies $ 156 $ 163 $ 7 2 % $ 165 $ 167 $ 2 2 %
States, municipalities and political subdivisions 2,487 2,586 99 30 % 2,524 2,614 90 30 %
Foreign government 168 170 2 2 % 178 177 (1 ) 2 %
Residential mortgage-backed securities 990 997 7 12 % 990 1,051 61 12 %
Commercial mortgage-backed securities 83 83 — 1 % 89 92 3 1 %
Collateralized loan obligations 936 873 (63 ) 10 % 906 901 (5 ) 11 %
Other asset-backed securities 1,770 1,680 (90 ) 20 % 1,727 1,741 14 20 %
Corporate and other bonds 2,024 2,000 (24 ) 23 % 1,861 1,912 51 22 %
Property and Casualty Insurance $ 8,614 **** $ 8,552 $ (62 ) **** 100 % $ 8,440 **** $ 8,655 $ 215 **** **** 100 %
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a) 3.81 % 3.94 %
Net of investment expense (a) 3.75 % 3.90 %
Tax equivalent, net of investment expense (b) 3.89 % 4.05 %
Approximate average life and duration:
Approximate average life 4 years 4.5 years
Approximate duration 3 years 3 years
March 31, 2020 December 31, 2019
Unrealized % of Unrealized % of
Book Value Fair Value Gain (Loss) Fair Value Book Value Fair Value Gain (Loss) Fair Value
Annuity and Run-off:
US Government and government agencies $ 38 $ 46 $ 8 0 % $ 38 $ 46 $ 8 0 %
States, municipalities and political subdivisions 4,057 4,338 281 12 % 4,104 4,373 269 12 %
Foreign government 31 35 4 0 % 31 34 3 0 %
Residential mortgage-backed securities 2,081 2,126 45 6 % 1,909 2,100 191 6 %
Commercial mortgage-backed securities 809 824 15 2 % 807 835 28 2 %
Collateralized loan obligations 3,503 3,265 (238 ) 9 % 3,401 3,379 (22 ) 9 %
Other asset-backed securities 5,285 5,078 (207 ) 13 % 5,265 5,387 122 14 %
Corporate and other bonds 21,716 21,957 241 58 % 20,640 21,799 1,159 57 %
Total Annuity and Run-off $ 37,520 **** $ 37,669 $ 149 **** **** 100 % $ 36,195 **** $ 37,953 $ 1,758 **** **** 100 %
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a) 4.44 % 4.59 %
Net of investment expense (a) 4.41 % 4.55 %
Approximate average life and duration:
Approximate average life 6 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.
--- ---

Page 28

American Financial Group, Inc.<br><br><br>Fixed Maturities - Credit Rating<br> <br>($ in millions)
March 31, 2020
--- --- --- --- --- --- --- --- --- --- ---
Unrealized % of
By Credit Rating (a) Book Value Fair Value Gain (Loss) Fair Value
Investment grade
AAA $ 9,578 $ 9,466 $ (112 ) 21 %
AA 8,197 8,356 159 18 %
A 10,460 10,607 147 23 %
BBB 13,469 13,452 (17 ) 29 %
Subtotal - Investment grade 41,704 41,881 177 91 %
BB 1,171 1,027 (144 ) 2 %
B 209 193 (16 ) 1 %
Other (b) 3,052 3,129 77 6 %
Subtotal - Non-Investment grade 4,432 4,349 (83 ) 9 %
Total $ 46,136 $ 46,230 $ 94 **** **** 100 %

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

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

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

(a) If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies<br>rate a security, the rating displayed is the second lowest.
(b) See pages 34 and 35 for more information.
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Page 29

American Financial Group, Inc.<br><br><br>Mortgage-Backed Securities - AFG Consolidated<br> <br>($ in<br>millions)
% of
--- --- --- --- --- --- --- --- --- --- --- --- ---
Unrealized % of Investment
March 31, 2020 Book Value Fair Value Gain (Loss) Fair Value Portfolio
Residential
Agency $ 494 $ 506 $ 12 13 % 1 %
Prime (Non-Agency) 1,359 1,383 24 34 % 2 %
Alt-A 904 918 14 23 % 2 %
Subprime 316 325 9 8 % 1 %
Commercial 892 907 15 22 % 2 %
Total AFG consolidated $ 3,965 $ 4,039 $ 74 **** 100 % **** 8 %
• Substantially all of AFG’s MBS securities are either senior tranches of securitizations or collateralized by<br>senior tranches of securitizations.
--- ---
• The average amortized cost as a percent of par is - Prime 88%; Alt-A 81%;<br>Subprime 82%; CMBS 99%.
--- ---
• The average FICO score of our residential MBS securities is - Prime 748;<br>Alt-A 694; Subprime 630.
--- ---
• 96% of our Commercial MBS portfolio is investment-grade rated (82% AAA) and the average subordination for this<br>group of assets is 35%.
--- ---
• The approximate average life by collateral type is - Residential 4 years; Commercial 3 years.<br>
--- ---
% of
--- --- --- --- --- --- --- --- --- --- --- --- ---
Unrealized % of Investment
December 31, 2019 Book Value Fair Value Gain (Loss) Fair Value Portfolio
Residential
Agency $ 549 $ 552 $ 3 13 % 1 %
Prime (Non-Agency) 1,157 1,264 107 31 % 2 %
Alt-A 897 1,015 118 25 % 2 %
Subprime 298 330 32 8 % 1 %
Commercial 896 927 31 23 % 2 %
Total AFG consolidated $ 3,797 $ 4,088 $ 291 **** 100 % **** 8 %

Page 30

American Financial Group, Inc.<br><br><br>Mortgage-Backed Securities Portfolio<br> <br>($ in<br>millions)
Property and Casualty Insurance: March 31, 2020
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Unrealized % of % of Inv
By Asset Type Book Value Fair Value Gain (Loss) Fair Value Portfolio
Residential
Agency $ 269 $ 277 $ 8 26 % 2 %
Prime (Non-Agency) 332 328 (4 ) 30 % 3 %
Alt-A 257 258 1 24 % 2 %
Subprime 132 134 2 12 % 1 %
Commercial 83 83 — 8 % 1 %
Total $ 1,073 $ 1,080 $ 7 **** **** 100 % **** 9 %
December 31, 2019
Unrealized % of % of Inv
By Asset Type Book Value Fair Value Gain (Loss) Fair Value Portfolio
Residential
Agency $ 315 $ 317 $ 2 28 % 3 %
Prime (Non-Agency) 279 292 13 26 % 2 %
Alt-A 265 299 34 26 % 2 %
Subprime 131 143 12 12 % 1 %
Commercial 89 92 3 8 % 1 %
Total $ 1,079 $ 1,143 $ 64 **** **** 100 % **** 9 %
Annuity andRun-off: March 31, 2020
Unrealized % of % of Inv
By Asset Type Book Value Fair Value Gain (Loss) Fair Value Portfolio
Residential
Agency $ 225 $ 229 $ 4 8 % 0 %
Prime (Non-Agency) 1,025 1,046 21 35 % 3 %
Alt-A 647 660 13 23 % 2 %
Subprime 184 191 7 6 % 0 %
Commercial 809 824 15 28 % 2 %
Total $ 2,890 $ 2,950 $ 60 **** **** 100 % **** 7 %
December 31, 2019
Unrealized % of % of Inv
By Asset Type Book Value Fair Value Gain (Loss) Fair Value Portfolio
Residential
Agency $ 234 $ 235 $ 1 8 % 1 %
Prime (Non-Agency) 876 962 86 33 % 2 %
Alt-A 632 716 84 25 % 2 %
Subprime 167 187 20 6 % 0 %
Commercial 807 835 28 28 % 2 %
Total $ 2,716 $ 2,935 $ 219 **** **** 100 % **** 7 %

Page 31

American Financial Group, Inc.<br><br><br>Mortgage-Backed Securities - Credit Rating<br> <br>($ in<br>millions)
March 31, 2020
--- --- --- --- --- --- --- --- --- --- ---
Unrealized % of
By Credit Rating (a) Book Value Fair Value Gain (Loss) Fair Value
Investment grade
AAA $ 2,051 $ 2,061 $ 10 51 %
AA 175 175 — 4 %
A 293 288 (5 ) 7 %
BBB 157 161 4 4 %
Subtotal - investment grade 2,676 2,685 9 66 %
BB 96 91 (5 ) 2 %
B 112 107 (5 ) 3 %
Other (b) 1,081 1,156 75 29 %
Total $ 3,965 $ 4,039 $ 74 **** **** 100 %

96% of the mortgage-backed security portfolio has an NAIC 1 designation.

December 31, 2019
Unrealized % of
By Credit Rating (a) Book Value Fair Value Gain (Loss) Fair Value
Investment grade
AAA $ 1,921 $ 1,957 $ 36 48 %
AA 144 151 7 4 %
A 248 266 18 6 %
BBB 181 193 12 5 %
Subtotal - investment grade 2,494 2,567 73 63 %
BB 105 106 1 3 %
B 102 102 — 2 %
Other (b) 1,096 1,313 217 32 %
Total $ 3,797 $ 4,088 $ 291 **** 100 %

97% of the mortgage-backed security portfolio has an NAIC 1 designation.

(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 34 and 35 for more information.
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Page 32

Appendix A<br> <br>AmericanFinancial Group, Inc.<br> <br>Components of Core Operating Earnings As Reported<br><br><br>($ in millions)
Three Months Ended Twelve Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 12/31/19 12/31/18
Core operating earnings before mark to market
Property and Casualty Insurance core operating earnings before mark to market $ 178 $ 181 $ 169 $ 152 $ 177 $ 679 $ 660
Annuity Pretax core operating earnings before mark to market 79 84 75 75 64 298 257
Interest expense of parent holding companies (17 ) (18 ) (17 ) (17 ) (16 ) (68 ) (62 )
Other expense (20 ) (32 ) (22 ) (25 ) (27 ) (106 ) (94 )
Pre-tax core operating earnings before mark to<br>market 220 215 205 185 198 803 761
Income tax expense 42 42 39 34 41 156 145
Core net operating earnings before mark to market $ 178 **** $ 173 **** $ 166 **** $ 151 **** $ 157 **** $ 647 **** $ 616 ****
Core mark to market investments, net of DAC
Property and Casualty Insurance mark to market investments $ 3 $ 18 $ 25 $ 23 $ 8 $ 74 $ 80
Annuity mark to market investments, Net of DAC (12 ) 20 25 29 26 100 104
Core pre-tax mark to market investments, net of<br>DAC (9 ) 38 50 52 34 174 184
Income tax expense (2 ) 8 11 11 7 37 39
Core mark to market investments, net of DAC $ (7 ) $ 30 **** $ 39 **** $ 41 **** $ 27 **** $ 137 **** $ 145 ****
Core operating earnings as reported
Property and Casualty Insurance operating earnings $ 181 $ 199 $ 194 $ 175 $ 185 $ 753 $ 740
Annuity operating earnings 67 104 100 104 90 398 361
Interest expense of parent holding companies (17 ) (18 ) (17 ) (17 ) (16 ) (68 ) (62 )
Other expense (20 ) (32 ) (22 ) (25 ) (27 ) (106 ) (94 )
Pre-tax core operating earnings asreported **** 211 **** **** 253 **** **** 255 **** **** 237 **** **** 232 **** **** 977 **** **** 945 ****
Income tax expense 40 50 50 45 48 193 184
Core net operating earnings as reported $ 171 **** $ 203 **** $ 205 **** $ 192 **** $ 184 **** $ 784 **** $ 761 ****
Average number of diluted shares 91.138 91.274 91.137 90.981 90.695 91.024 90.626
Diluted core net operating earnings per share:
Core net operating earnings before mark to market per share $ 1.96 **** $ 1.90 **** $ 1.82 **** $ 1.66 **** $ 1.73 **** $ 7.11 **** $ 6.80 ****
Core mark to market investments, net of DAC per share (0.08 ) 0.32 0.43 0.46 0.29 1.51 1.60
Core net operating earnings as reported per share $ 1.88 **** $ 2.22 **** $ 2.25 **** $ 2.12 **** $ 2.02 **** $ 8.62 **** $ 8.40 ****

Page 33

Appendix B<br> <br>AmericanFinancial Group, Inc.<br> <br>Fixed Maturities by Credit Rating & NAIC Designation by Type 3/31/2020<br><br><br>($ in millions)
Fair Value by Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
By Credit Rating (a) US Gov Munis Frgn Gov RMBS CMBS CLOs Other ABS Corp/Oth Total % Total
Investment grade
AAA $ 199 $ 2,077 $ 137 $ 1,316 $ 745 $ 2,981 $ 1,855 $ 156 $ 9,466 21 %
AA 10 4,297 51 156 19 912 1,708 1,203 8,356 18 %
A — 396 2 275 13 212 1,762 7,947 10,607 23 %
BBB — 92 3 66 95 22 702 12,472 13,452 29 %
Subtotal - Investment grade 209 6,862 193 1,813 872 4,127 6,027 21,778 41,881 91 %
BB — 9 — 61 30 — 6 921 1,027 2 %
B — — — 107 — — 4 82 193 1 %
CCC, CC, C — — — 459 5 — 8 34 506 1 %
D — — — 159 — — — 1 160 0 %
Subtotal - Non-Investment grade — 9 — 786 35 — 18 1,038 1,886 4 %
Not Rated (b) — 53 12 533 — 11 713 1,141 2,463 5 %
Total $ 209 $ 6,924 $ 205 $ 3,132 $ 907 $ 4,138 $ 6,758 $ 23,957 $ 46,230 **** 100 %
Fair Value by type
NAIC designation US Gov Munis Frgn gov RMBS CMBS CLOs Other ABS Corp/Oth Total % Total
1 $ 207 $ 6,821 $ 170 $ 3,004 $ 861 $ 4,104 $ 6,022 $ 10,249 $ 31,438 68 %
2 — 93 — 39 13 22 711 12,530 13,408 29 %
Subtotal 207 6,914 170 3,043 874 4,126 6,733 22,779 44,846 97 %
3 — 9 — 21 30 — 6 943 1,009 2 %
4 — — — 32 — — 3 148 183 1 %
5 — — — 21 3 11 4 69 108 0 %
6 — — — 5 — — 5 4 14 0 %
Subtotal — 9 — 79 33 11 18 1,164 1,314 3 %
No designation (c) 2 1 35 10 — 1 7 14 70 0 %
Total $ 209 $ 6,924 $ 205 $ 3,132 $ 907 $ 4,138 $ 6,758 $ 23,957 $ 46,230 **** 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) 89% are NAIC 1, 3% NAIC 2, 2% NAIC 3, 3% NAIC 4, 2% NAIC 5 and 1% NAIC 6.
--- ---
(c) Primarily relates to securities held by non-insurance companies.<br>
--- ---

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Appendix C<br> <br>AmericanFinancial Group, Inc.<br> <br>Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2019<br><br><br>($ in millions)
Fair Value by Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
By Credit Rating (a) US Gov Munis Frgn Gov RMBS CMBS CLOs Other 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 Other 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>
--- ---

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Appendix D<br> <br>AmericanFinancial Group, Inc.<br> <br>Corporate Securities by Credit Rating & NAIC Designation by Industry<br><br><br>3/31/2020<br> <br>($ in millions)
Fair Value By Industry
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Credit Rating(a) Banking Insurance OtherFinancials Technology AssetManagers Energy Healthcare Consumer REITs Utilities CapitalGoods BasicIndustry Media Autos Communi-cations Retailers Restaurants,Hospitality<br>& Leisure Aviation Other Total %Total
Investment Grade
AAA $ — $ — $ — $ 25 $ — $ — $ 20 $ 29 $ — $ — $ — $ — $ — $ — $ 81 $ — $ — $ — $ 1 $ 156 1 %
AA 148 128 99 108 197 176 90 111 — — — — — — — 22 19 30 75 1,203 5 %
A 2,066 1,068 345 520 729 217 364 270 329 541 357 69 218 311 165 82 18 110 168 7,947 33 %
BBB 2,969 1,033 691 877 598 929 891 564 672 343 435 577 423 265 284 276 247 139 259 12,472 52 %
Subtotal 5,183 2,229 1,135 1,530 1,524 1,322 1,365 974 1,001 884 792 646 641 576 530 380 284 279 503 21,778 91 %
BB 49 18 29 72 10 152 60 160 154 14 17 49 8 61 3 11 32 19 3 921 4 %
B — 1 — 4 — 10 22 28 — — — 10 4 — — — 3 — — 82 0 %
CCC, CC, C — — 1 8 — 1 2 5 — — — 2 — — — 8 7 — — 34 0 %
D — — — — — 1 — — — — — — — — — — — — — 1 0 %
Subtotal 49 19 30 84 10 164 84 193 154 14 17 61 12 61 3 19 42 19 3 1,038 4 %
Not Rated (b) 25 13 849 16 4 2 34 93 16 — 5 10 50 — 2 13 8 — 1 1,141 5 %
Total $ 5,257 $ 2,261 $ 2,014 $ 1,630 $ 1,538 $ 1,488 $ 1,483 $ 1,260 $ 1,171 $ 898 $ 814 $ 717 $ 703 $ 637 $ 535 $ 412 $ 334 $ 298 $ 507 $ 23,957 **** 100 %
Fair Value By Industry
NAICdesignation Banking Insurance OtherFinancials Technology AssetManagers Energy Healthcare Consumer REITs Utilities CapitalGoods BasicIndustry Media Autos Communi-<br>cations Retailers Restaurants,Hospitality &Leisure Aviation Other Total %Total
1 $ 2,223 $ 1,200 $ 1,258 $ 668 $ 931 $ 395 $ 495 $ 474 $ 337 $ 541 $ 357 $ 69 $ 218 $ 310 $ 246 $ 117 $ 37 $ 140 $ 233 $ 10,249 43 %
2 2,985 1,033 703 877 597 928 904 569 672 343 439 586 423 265 284 276 249 139 258 12,530 52 %
Subtotal 5,208 2,233 1,961 1,545 1,528 1,323 1,399 1,043 1,009 884 796 655 641 575 530 393 286 279 491 22,779 95 %
3 49 18 29 71 10 152 60 169 162 14 18 49 7 61 3 11 38 19 3 943 4 %
4 — 10 13 4 — 11 22 28 — — — 10 47 — — — 3 — — 148 1 %
5 — — 11 8 — — 2 20 — — — 3 8 — 2 8 7 — — 69 0 %
6 — — — 2 — 2 — — — — — — — — — — — — — 4 0 %
Subtotal 49 28 53 85 10 165 84 217 162 14 18 62 62 61 5 19 48 19 3 1,164 5 %
No designation (c) — — — — — — — — — — — — — 1 — — — — 13 14 0 %
Total $ 5,257 $ 2,261 $ 2,014 $ 1,630 $ 1,538 $ 1,488 $ 1,483 $ 1,260 $ 1,171 $ 898 $ 814 $ 717 $ 703 $ 637 $ 535 $ 412 $ 334 $ 298 $ 507 $ 23,957 **** 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) 84% are NAIC 1, 5% NAIC 2, 2% NAIC 3, 6% NAIC 4, 3% NAIC 5.
--- ---
(c) Primarily relates to securities held by non-insurance companies.<br>
--- ---

Page 36

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

Page 37

Appendix F<br> <br>AmericanFinancial Group, Inc.<br> <br>Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type<br><br><br>3/31/2020<br> <br>($ in millions)
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Credit Rating (a) CLOs SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate SingleFamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Life Ins/StructuredSettlements Other Total %Total
Investment Grade
AAA $ 2,981 $ — $ — $ — $ — $ 717 $ 456 $ — $ 152 $ 50 $ 146 $ 334 $ 4,836 44 %
AA 912 318 929 97 — 48 120 — 29 101 — 66 2,620 24 %
A 212 78 294 22 591 — 10 306 — 14 3 444 1,974 18 %
BBB 22 10 47 580 12 — — — 29 — 1 23 724 7 %
Subtotal 4,127 406 1,270 699 603 765 586 306 210 165 150 867 10,154 93 %
BB — — 1 — — — — — — — 5 — 6 0 %
B — — — — — — — — — — — 4 4 0 %
CCC, CC, C — — — — — — — 5 — — 3 — 8 0 %
D — — — — — — — — — — — — — 0 %
Subtotal — — 1 — — — — 5 — — 8 4 18 0 %
Not Rated (b) 11 706 — — — — — 6 — — — 1 724 7 %
Total $ 4,138 $ 1,112 $ 1,271 $ 699 $ 603 $ 765 $ 586 $ 317 $ 210 $ 165 $ 158 $ 872 $ 10,896 **** 100 %
Fair Value By Collateral Type
NAIC designation CLOs SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate SingleFamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Life Ins/StructuredSettlements Other Total %Total
1 $ 4,104 $ 1,102 $ 1,223 $ 119 $ 591 $ 765 $ 585 $ 306 $ 181 $ 165 $ 149 $ 836 $ 10,126 93 %
2 22 10 47 580 12 — — — 29 — 1 32 733 7 %
Subtotal 4,126 1,112 1,270 699 603 765 585 306 210 165 150 868 10,859 100 %
3 — — 1 — — — — — — — 5 — 6 0 %
4 — — — — — — — — — — — 3 3 0 %
5 11 — — — — — — — — — 3 1 15 0 %
6 — — — — — — — 5 — — — — 5 0 %
Subtotal 11 — 1 — — — — 5 — — 8 4 29 0 %
No designation (d) 1 — — — — — 1 6 — — — — 8 0 %
Total $ 4,138 $ 1,112 $ 1,271 $ 699 $ 603 $ 765 $ 586 $ 317 $ 210 $ 165 $ 158 $ 872 $ 10,896 **** 100 %
(a) If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies<br>rate a security, the rating displayed is the second lowest.
--- ---
(b) 98% of not rated securities are NAIC 1 or 2.
--- ---
(c) Secured Financings are privately placed funding agreements secured by assets including Single Family Rental<br>properties, Bank Loans, Bank Trust Preferreds, Commercial and Residential Mortgages.
--- ---
(d) Primarily relates to securities held by non-insurance companies.<br>
--- ---

Page 38

Appendix G<br> <br>AmericanFinancial Group, Inc.<br> <br>Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type 12/31/2019<br><br><br>($ in millions)
Fair Value By Collateral Type
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Credit Rating (a) CLOs SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate SingleFamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Life Ins/StructuredSettlements Other Total %Total
Investment Grade
AAA $ 2,921 $ — $ — $ — $ — $ 460 $ 367 $ — $ 167 $ 64 $ 157 $ 314 $ 4,450 39 %
AA 1,074 311 990 92 — 52 106 — 34 110 — 84 2,853 25 %
A 241 78 326 22 602 — 11 442 — 17 3 482 2,224 19 %
BBB 27 10 53 599 — — — — 38 — 1 41 769 7 %
Subtotal 4,263 399 1,369 713 602 512 484 442 239 191 161 921 10,296 90 %
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) 17 1,060 — — — — — 14 — — — — 1,091 10 %
Total $ 4,280 $ 1,459 $ 1,370 $ 713 $ 602 $ 512 $ 484 $ 463 $ 239 $ 191 $ 169 $ 926 $ 11,408 **** 100 %
Fair Value By Collateral Type
NAIC designation CLOs SecuredFinancing(c) TruPS WholeBusiness Railcar CommercialReal Estate SingleFamilyRental Aircraft MortgageServicerReceivables ConsumerLoans Life Ins/StructuredSettlements Other Total %Total
1 $ 4,232 $ 1,421 $ 1,314 $ 114 $ 601 $ 511 $ 482 $ 442 $ 201 $ 189 $ 159 $ 874 $ 10,540 93 %
2 26 38 53 599 — — — — 38 — 2 40 796 7 %
Subtotal 4,258 1,459 1,367 713 601 511 482 442 239 189 161 914 11,336 100 %
3 — — 1 — — — — 7 — — 5 — 13 0 %
4 — — — — — — — — — — — 4 4 0 %
5 18 — — — — — — — — — 3 1 22 0 %
6 — — — — — — — 14 — — — 1 15 0 %
Subtotal 18 — 1 — — — — 21 — — 8 6 54 0 %
No designation (d) 4 — 2 — 1 1 2 — — 2 — 6 18 0 %
Total $ 4,280 $ 1,459 $ 1,370 $ 713 $ 602 $ 512 $ 484 $ 463 $ 239 $ 191 $ 169 $ 926 $ 11,408 **** 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) 97% 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>
--- ---

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