AMERICAN FINANCIAL GROUP INC - FORM 8-K - EX-99.2

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EX-99.1 - EX-99.1 - AMERICAN FINANCIAL GROUP INC	d79833dex991.htm
8-K - 8-K - AMERICAN FINANCIAL GROUP INC	d79833d8k.htm

Exhibit 99.2


		American Financial Group, Inc.
		Investor Supplement - Third Quarter 2020
		October 28, 2020
		American Financial Group, Inc. Corporate Headquarters Great American Insurance Group Tower 301 E Fourth Street Cincinnati, OH 45202 513 579 6739

American Financial Group, Inc.

Table of Contents - Investor Supplement - Third Quarter 2020


Section		Page

Table of Contents - Investor Supplement - Third Quarter 2020		2
Financial Highlights		3
Summary of Earnings		4
Earnings Per Share Summary		5

Property and Casualty Insurance Segment
Property and Casualty Insurance - Summary Underwriting Results (GAAP)		6
Specialty - Underwriting Results (GAAP)		7
Property and Transportation - Underwriting Results (GAAP)		8
Specialty Casualty - Underwriting Results (GAAP)		9
Specialty Financial - Underwriting Results (GAAP)		10
Other Specialty - Underwriting Results (GAAP)		11

Annuity Segment
Annuity Earnings		12a
Annuity Earnings - Alternative View		12b
Detail of Annuity Benefits Expense		13
Core Net Spread on Fixed Annuities		14
Statutory Annuity Premiums		15
Fixed Annuity Benefits Accumulated (GAAP)		16
Guaranteed Minimum Interest Rate Analysis		17
Annuity Non-Core Earnings (Losses)		18
Reconciliation from Core to GAAP Annuity Pretax Earnings		19

Consolidated Balance Sheet / Book Value / Debt
Consolidated Balance Sheet		20
Book Value Per Share and Price / Book Summary		21
Capitalization		22
Additional Supplemental Information		23

Consolidated Investment Supplement
Total Cash and Investments		24
Net Investment Income		25
Insurance Companies’ Alternative Investments		26
Fixed Maturities - By Security Type - AFG Consolidated		27
Fixed Maturities - By Security Type Portfolio		28
Fixed Maturities - Credit Rating		29
Mortgage-Backed Securities - AFG Consolidated		30
Mortgage-Backed Securities Portfolio		31



Appendix
A.	Components of Core Operating Earnings As Reported	32
B.	Fixed Maturities by Credit Rating & NAIC Designation by Type 9/30/2020	33
C.	Fixed Maturities by Credit Rating & NAIC Designation by Type 12/31/2019	34
D.	Corporate Securities by Credit Rating & NAIC Designation by Industry 9/30/2020	35
E.	Corporate Securities by Credit Rating & NAIC Designation by Industry 12/31/2019	36
F.	Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type 9/30/2020	37
G.	Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type 12/31/2019	38
H.	Real Estate-Related Investments 9/30/2020	39
I.	Real Estate-Related Investments 12/31/2019	40

Page 2

American Financial Group, Inc.

Financial Highlights

(in millions, except per share information)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19

Highlights
Net earnings (loss)	$	164		$	177		$	(301	)	$	211		$	147		$	40		$	686
Core net operating earnings		217			95			171			203			205			483			581
Core net operating earnings before alternative investments marked to market		163			139			178			173			166			480			474
Total assets		73,110			70,867			67,643			70,130			69,067			73,110			69,067
Adjusted shareholders’ equity (a)		5,087			5,049			4,987			5,390			5,376			5,087			5,376
Property and Casualty net written premiums		1,488			1,123			1,165			1,313			1,618			3,776			4,029
Gross Annuity statutory premiums		871			687			1,210			1,139			1,077			2,768			3,821
Net Annuity statutory premiums		703			609			1,210			1,139			1,077			2,522			3,821

Per share data
Diluted earnings (loss) per share	$	1.86		$	1.97		$	(3.34	)	$	2.31		$	1.62		$	0.45		$	7.55
Core net operating earnings per share		2.45			1.05			1.88			2.22			2.25			5.37			6.39
Core net operating earnings per share before alternative investments marked to market		1.84			1.53			1.96			1.90			1.82			5.34			5.21
Adjusted book value per share (a)		58.29			56.95			55.52			59.70			59.65			58.29			59.65

Cash dividends per common share		0.4500			0.4500			0.4500			2.2500			0.4000			1.3500			2.7000

Financial ratios
Annualized return on equity (b)		12.9	%		14.1	%		(23.1	%)		15.6	%		11.0	%		1.0	%		17.6	%
Annualized core operating return on equity (b)		17.1	%		7.5	%		13.2	%		15.0	%		15.3	%		12.5	%		14.9	%

Property and Casualty combined ratio - Specialty:
Loss & LAE ratio		63.8	%		62.6	%		58.5	%		63.2	%		63.1	%		61.8	%		60.9	%
Underwriting expense ratio		28.3	%		32.6	%		33.7	%		30.3	%		30.9	%		31.4	%		32.9	%

Combined ratio - Specialty		92.1	%		95.2	%		92.2	%		93.5	%		94.0	%		93.2	%		93.8	%


Net interest spread on fixed annuities - before alternative investments marked to market		1.51	%		1.60	%		1.59	%		1.71	%		1.65	%		1.57	%		1.68	%
Alternative investments marked to market		0.45	%		(0.36	%)		(0.06	%)		0.23	%		0.28	%		0.01	%		0.31	%

Net interest spread on fixed annuities - including alternative investments marked to market		1.96	%		1.24	%		1.53	%		1.94	%		1.93	%		1.58	%		1.99	%


Net spread earned on fixed annuities:
Core operating - before alternative investments marked to market		0.80	%		0.80	%		0.81	%		0.87	%		0.80	%		0.81	%		0.79	%
Alternative investments marked to market, net of DAC		0.39	%		(0.41	%)		(0.12	%)		0.20	%		0.26	%		(0.05	%)		0.29	%

Core operating		1.19	%		0.39	%		0.69	%		1.07	%		1.06	%		0.76	%		1.08	%

(a)	Excludes unrealized gains related to fixed maturity investments, a reconciliation to the GAAP measure is on page 21.

(b)	Excludes accumulated other comprehensive income.

Page 3

American Financial Group, Inc.

Summary of Earnings

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19

Property and Casualty Insurance
Underwriting profit	$	103		$	52		$	88		$	88		$	72		$	243		$	218
Net investment income		111			72			99			120			124			282			352
Other expense		(9	)		(8	)		(6	)		(9	)		(2	)		(23	)		(16	)

Property and Casualty Insurance operating earnings		205			116			181			199			194			502			554

Annuity operating earnings		121			42			67			104			100			230			294
Interest expense of parent holding companies		(24	)		(23	)		(17	)		(18	)		(17	)		(64	)		(50	)
Other expense		(28	)		(20	)		(20	)		(32	)		(22	)		(68	)		(74	)

Pretax core operating earnings		274			115			211			253			255			600			724

Income tax expense		57			20			40			50			50			117			143

Core net operating earnings		217			95			171			203			205			483			581

Non-core items, net of tax:
Realized gains (losses) on securities		35			161			(435	)		51			(14	)		(239	)		176
Annuity non-core earnings (losses)		(34	)		(47	)		(30	)		19			(21	)		(111	)		(48	)
Special A&E charges:
Property and Casualty Insurance run-off operations		(37	)		—			—			—			(14	)		(37	)		(14	)
Former Railroad and Manufacturing operations		(17	)		—			—			—			(9	)		(17	)		(9	)
Neon exited lines		3			(32	)		(7	)		(58	)		—			(36	)		—
Other non-core items		(3	)		—			—			(4	)		—			(3	)		—

Net earnings (loss)	$	164		$	177		$	(301	)	$	211		$	147		$	40		$	686

Page 4

American Financial Group, Inc.

Earnings Per Share Summary

(in millions, except per share information)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19

Core net operating earnings	$	217		$	95		$	171		$	203		$	205		$	483		$	581


Net earnings (loss)	$	164		$	177		$	(301	)	$	211		$	147		$	40		$	686


Average number of diluted shares - core		88.546			89.997			91.138			91.274			91.137			89.889			90.940
Average number of diluted shares - net		88.546			89.997			90.295			91.274			91.137			89.889			90.940

Diluted earnings per share:
Core net operating earnings per share	$	2.45		$	1.05		$	1.88		$	2.22		$	2.25		$	5.37		$	6.39

Realized gains (losses) on securities		0.40			1.80			(4.81	)		0.56			(0.15	)		(2.64	)		1.93
Annuity non-core earnings (losses)		(0.38	)		(0.52	)		(0.34	)		0.21			(0.23	)		(1.23	)		(0.52	)
Special A&E charges:
Property and Casualty Insurance run-off operations		(0.42	)		—			—			—			(0.15	)		(0.42	)		(0.15	)
Former Railroad and Manufacturing operations		(0.19	)		—			—			—			(0.10	)		(0.19	)		(0.10	)
Neon exited lines		0.03			(0.36	)		(0.07	)		(0.64	)		—			(0.41	)		—
Other non-core items		(0.03	)		—			—			(0.04	)		—			(0.03	)		—

Diluted earnings (loss) per share	$	1.86		$	1.97		$	(3.34	)	$	2.31		$	1.62		$	0.45		$	7.55

Page 5

American Financial Group, Inc.

Property and Casualty Insurance — Summary Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19

Property and Transportation	$	47		$	33		$	27		$	(2	)	$	38		$	107		$	81
Specialty Casualty		53			27			52			69			23			132			106
Specialty Financial		13			—			17			32			26			30			60
Other Specialty		(9	)		(6	)		(7	)		(10	)		1			(22	)		(11	)

Underwriting profit — Specialty		104			54			89			89			88			247			236

Other core charges, included in loss and LAE		(1	)		(2	)		(1	)		(1	)		(16	)		(4	)		(18	)

Underwriting profit — Core		103			52			88			88			72			243			218

Special A&E charges, included in loss and LAE		(47	)		—			—			—			(18	)		(47	)		(18	)
Neon exited lines (a)		(38	)		(43	)		(1	)		(76	)		—			(82	)		—

Underwriting profit (loss) —Property and Casualty Insurance	$	18		$	9		$	87		$	12		$	54		$	114		$	200


Included in results above:
COVID-19 related losses	$	—		$	105		$	10		$	—		$	—		$	115		$	—

Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	5		$	—		$	—		$	1		$	—		$	5		$	—
Catastrophe loss		52			26			9			14			22			87			46

Total current accident year catastrophe losses	$	57		$	26		$	9		$	15		$	22		$	92		$	46

Prior year loss reserve development (favorable) / adverse	$	—		$	(77	)	$	(42	)	$	(45	)	$	(12	)	$	(119	)	$	(98	)


Combined ratio:
Property and Transportation		91.9	%		91.7	%		92.9	%		100.4	%		93.5	%		92.1	%		93.8	%
Specialty Casualty		90.7	%		94.9	%		90.7	%		89.7	%		96.5	%		92.1	%		94.5	%
Specialty Financial		91.6	%		100.4	%		89.1	%		79.6	%		83.7	%		93.5	%		86.8	%
Other Specialty		115.6	%		114.2	%		117.7	%		122.5	%		98.5	%		115.7	%		110.2	%
Combined ratio — Specialty		92.1	%		95.2	%		92.2	%		93.5	%		94.0	%		93.2	%		93.8	%

Other core charges		0.1	%		0.2	%		0.1	%		0.1	%		1.1	%		0.1	%		0.5	%
Neon exited lines charge		3.1	%		3.8	%		0.5	%		5.5	%		0.0	%		2.4	%		0.0	%
Special A&E charges		3.5	%		0.0	%		0.0	%		0.0	%		1.2	%		1.3	%		0.4	%

Combined ratio		98.8	%		99.2	%		92.8	%		99.1	%		96.3	%		97.0	%		94.7	%

P&C combined ratio excl. COVID-19 related losses, catastrophe losses, and prior year loss reserve development		95.0	%		94.8	%		94.6	%		101.4	%		95.5	%		94.8	%		96.1	%


Loss and LAE components — property and casualty insurance
Current accident year, excluding COVID-19 related and catastrophe losses		66.0	%		60.7	%		60.3	%		68.9	%		64.6	%		62.5	%		63.2	%
COVID-19 related losses		0.0	%		8.8	%		0.8	%		0.0	%		0.0	%		3.0	%		0.0	%
Current accident year catastrophe losses		3.8	%		2.1	%		0.8	%		1.0	%		1.6	%		2.3	%		1.2	%
Prior accident year loss reserve development		0.0	%		(6.5	%)		(3.4	%)		(3.3	%)		(0.8	%)		(3.1	%)		(2.6	%)

Loss and LAE ratio		69.8	%		65.1	%		58.5	%		66.6	%		65.4	%		64.7	%		61.8	%

(a)

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

Page 6

American Financial Group, Inc.

Specialty — Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19

Gross written premiums	$	2,223		$	1,539		$	1,526		$	1,749		$	2,351		$	5,288		$	5,550
Ceded reinsurance premiums		(735	)		(416	)		(361	)		(436	)		(733	)		(1,512	)		(1,521	)

Net written premiums		1,488			1,123			1,165			1,313			1,618			3,776			4,029
Change in unearned premiums		(149	)		—			(27	)		57			(176	)		(176	)		(214	)

Net earned premiums		1,339			1,123			1,138			1,370			1,442			3,600			3,815

Loss and LAE		855			703			666			865			910			2,224			2,323
Underwriting expense		380			366			383			416			444			1,129			1,256

Underwriting profit	$	104		$	54		$	89		$	89		$	88		$	247		$	236


Included in results above:
COVID-19 related losses	$	—		$	85		$	10		$	—		$	—		$	95		$	—

Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	5		$	—		$	—		$	1		$	—		$	5		$	—
Catastrophe loss		36			26			9			14			22			71			46

Total current accident year catastrophe losses	$	41		$	26		$	9		$	15		$	22		$	76		$	46

Prior year loss reserve development (favorable) / adverse	$	(48	)	$	(85	)	$	(48	)	$	(53	)	$	(46	)	$	(181	)	$	(134	)


Combined ratio:
Loss and LAE ratio		63.8	%		62.6	%		58.5	%		63.2	%		63.1	%		61.8	%		60.9	%
Underwriting expense ratio		28.3	%		32.6	%		33.7	%		30.3	%		30.9	%		31.4	%		32.9	%

Combined ratio		92.1	%		95.2	%		92.2	%		93.5	%		94.0	%		93.2	%		93.8	%

Specialty combined ratio excl. COVID-19 related losses, catastrophe losses, and prior year loss reserve development		93.1	%		92.9	%		94.7	%		96.3	%		95.5	%		93.6	%		96.1	%


Loss and LAE components:
Current accident year, excluding COVID-19 related and catastrophe losses		64.8	%		60.3	%		61.0	%		66.0	%		64.6	%		62.2	%		63.2	%
COVID-19 related losses		0.0	%		7.6	%		0.9	%		0.0	%		0.0	%		2.6	%		0.0	%
Current accident year catastrophe losses		2.7	%		2.3	%		0.8	%		1.0	%		1.6	%		2.0	%		1.2	%
Prior accident year loss reserve development		(3.7	%)		(7.6	%)		(4.2	%)		(3.8	%)		(3.1	%)		(5.0	%)		(3.5	%)

Loss and LAE ratio		63.8	%		62.6	%		58.5	%		63.2	%		63.1	%		61.8	%		60.9	%

Page 7

American Financial Group, Inc.

Property and Transportation — Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19

Gross written premiums	$	1,061		$	611		$	494		$	628		$	1,113		$	2,166		$	2,131
Ceded reinsurance premiums		(426	)		(185	)		(108	)		(179	)		(452	)		(719	)		(704	)

Net written premiums		635			426			386			449			661			1,447			1,427
Change in unearned premiums		(61	)		(36	)		—			56			(78	)		(97	)		(104	)

Net earned premiums		574			390			386			505			583			1,350			1,323

Loss and LAE		403			239			237			392			421			879			905
Underwriting expense		124			118			122			115			124			364			337

Underwriting profit	$	47		$	33		$	27		$	(2	)	$	38		$	107		$	81


Included in results above:
COVID-19 related losses	$	1		$	3		$	3		$	—		$	—		$	7		$	—

Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe loss		18			15			8			7			8			41			25

Total current accident year catastrophe losses	$	18		$	15		$	8		$	7		$	8		$	41		$	25

Prior year loss reserve development (favorable) / adverse	$	(26	)	$	(28	)	$	(24	)	$	(18	)	$	(17	)	$	(78	)	$	(49	)


Combined ratio:
Loss and LAE ratio		70.1	%		61.3	%		61.4	%		77.8	%		72.1	%		65.1	%		68.3	%
Underwriting expense ratio		21.8	%		30.4	%		31.5	%		22.6	%		21.4	%		27.0	%		25.5	%

Combined ratio		91.9	%		91.7	%		92.9	%		100.4	%		93.5	%		92.1	%		93.8	%

Combined ratio excl. COVID-19 related losses, catastrophe losses, and prior year loss reserve development		93.2	%		94.3	%		96.2	%		102.5	%		94.9	%		94.4	%		95.6	%


Loss and LAE components:
Current accident year, excluding COVID-19 related and catastrophe losses		71.4	%		63.9	%		64.7	%		79.9	%		73.5	%		67.4	%		70.1	%
COVID-19 related losses		0.1	%		0.8	%		0.6	%		0.0	%		0.0	%		0.5	%		0.0	%
Current accident year catastrophe losses		3.1	%		3.8	%		2.2	%		1.4	%		1.4	%		3.0	%		1.9	%
Prior accident year loss reserve development		(4.5	%)		(7.2	%)		(6.1	%)		(3.5	%)		(2.8	%)		(5.8	%)		(3.7	%)

Loss and LAE ratio		70.1	%		61.3	%		61.4	%		77.8	%		72.1	%		65.1	%		68.3	%

Page 8

American Financial Group, Inc.

Specialty Casualty — Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19

Gross written premiums	$	978		$	752		$	849		$	929		$	1,031		$	2,579		$	2,839
Ceded reinsurance premiums		(336	)		(241	)		(263	)		(260	)		(287	)		(840	)		(807	)

Net written premiums		642			511			586			669			744			1,739			2,032
Change in unearned premiums		(82	)		36			(30	)		7			(86	)		(76	)		(111	)

Net earned premiums		560			547			556			676			658			1,663			1,921

Loss and LAE		352			367			340			402			416			1,059			1,184
Underwriting expense		155			153			164			205			219			472			631

Underwriting profit	$	53		$	27		$	52		$	69		$	23		$	132		$	106


Included in results above:

COVID-19 related losses		(1	)	$	52		$	7		$	—		$	—		$	58		$	—
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	5		$	—		$	—		$	1		$	—		$	5		$	—
Catastrophe loss		3			6			—			5			10			9			12

Total current accident year catastrophe losses	$	8		$	6		$	—		$	6		$	10		$	14		$	12

Prior year loss reserve development (favorable) / adverse	$	(16	)	$	(51	)	$	(24	)	$	(25	)	$	(19	)	$	(91	)	$	(63	)

Combined ratio:
Loss and LAE ratio		62.9	%		67.1	%		61.1	%		59.4	%		63.1	%		63.7	%		61.6	%
Underwriting expense ratio		27.8	%		27.8	%		29.6	%		30.3	%		33.4	%		28.4	%		32.9	%

Combined ratio		90.7	%		94.9	%		90.7	%		89.7	%		96.5	%		92.1	%		94.5	%

Combined ratio excl. COVID-19 related losses, catastrophe losses, and prior year loss reserve development		92.9	%		93.8	%		93.6	%		92.7	%		97.8	%		93.5	%		97.1	%

Loss and LAE components:
Current accident year, excluding COVID-19 related and catastrophe losses		65.1	%		66.0	%		64.0	%		62.4	%		64.4	%		65.1	%		64.2	%
COVID-19 related losses		(0.1	%)		9.5	%		1.3	%		0.0	%		0.0	%		3.5	%		0.0	%
Current accident year catastrophe losses		0.8	%		0.9	%		0.0	%		0.8	%		1.6	%		0.6	%		0.6	%
Prior accident year loss reserve development		(2.9	%)		(9.3	%)		(4.2	%)		(3.8	%)		(2.9	%)		(5.5	%)		(3.2	%)

Loss and LAE ratio		62.9	%		67.1	%		61.1	%		59.4	%		63.1	%		63.7	%		61.6	%

Page 9

American Financial Group, Inc.

Specialty Financial — Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19

Gross written premiums	$	184		$	176		$	183		$	192		$	207		$	543		$	580
Ceded reinsurance premiums		(31	)		(37	)		(34	)		(36	)		(40	)		(102	)		(119	)

Net written premiums		153			139			149			156			167			441			461
Change in unearned premiums		2			5			7			(4	)		(6	)		14			(3	)

Net earned premiums		155			144			156			152			161			455			458

Loss and LAE		62			65			59			40			47			186			152
Underwriting expense		80			79			80			80			88			239			246

Underwriting profit	$	13		$	—		$	17		$	32		$	26		$	30		$	60


Included in results above:
COVID-19 related losses	$	(1	)	$	30		$	—		$	—		$	—		$	29		$	—

Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe loss		13			5			1			2			3			19			8

Total current accident year catastrophe losses	$	13		$	5		$	1		$	2		$	3		$	19		$	8

Prior year loss reserve development (favorable) / adverse	$	(9	)	$	(11	)	$	(2	)	$	(14	)	$	(9	)	$	(22	)	$	(24	)


Combined ratio:
Loss and LAE ratio		39.9	%		44.9	%		38.0	%		26.1	%		29.7	%		40.8	%		33.3	%
Underwriting expense ratio		51.7	%		55.5	%		51.1	%		53.5	%		54.0	%		52.7	%		53.5	%

Combined ratio		91.6	%		100.4	%		89.1	%		79.6	%		83.7	%		93.5	%		86.8	%

Combined ratio excl. COVID-19 related losses, catastrophe losses, and prior year loss reserve development		89.5	%		83.7	%		89.5	%		87.7	%		87.2	%		87.6	%		90.3	%

Loss and LAE components:
Current accident year, excluding COVID-19 related and catastrophe losses		37.8	%		28.2	%		38.4	%		34.2	%		33.2	%		34.9	%		36.8	%
COVID-19 related losses		(0.8	%)		21.1	%		0.1	%		0.0	%		0.0	%		6.4	%		0.0	%
Current accident year catastrophe losses		8.6	%		3.6	%		0.6	%		1.1	%		2.0	%		4.3	%		1.8	%
Prior accident year loss reserve development		(5.7	%)		(8.0	%)		(1.1	%)		(9.2	%)		(5.5	%)		(4.8	%)		(5.3	%)

Loss and LAE ratio		39.9	%		44.9	%		38.0	%		26.1	%		29.7	%		40.8	%		33.3	%

Page 10

American Financial Group, Inc.

Other Specialty - Underwriting Results (GAAP)

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19

Gross written premiums	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Ceded reinsurance premiums		58			47			44			39			46			149			109

Net written premiums		58			47			44			39			46			149			109
Change in unearned premiums		(8	)		(5	)		(4	)		(2	)		(6	)		(17	)		4

Net earned premiums		50			42			40			37			40			132			113

Loss and LAE		38			32			30			31			26			100			82
Underwriting expense		21			16			17			16			13			54			42

Underwriting profit (loss)	$	(9	)	$	(6	)	$	(7	)	$	(10	)	$	1		$	(22	)	$	(11	)


Included in results above:
COVID-19 related losses	$	1		$	—		$	—		$	—		$	—		$	1		$	—
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe loss		2			—			—			—			1			2			1

Total current accident year catastrophe losses	$	2		$	—		$	—		$	—		$	1		$	2		$	1


Prior year loss reserve development (favorable) / adverse	$	3		$	5		$	2		$	4		$	(1	)	$	10		$	2


Combined ratio:
Loss and LAE ratio		78.6	%		76.9	%		73.9	%		83.5	%		64.0	%		76.6	%		72.7	%
Underwriting expense ratio		37.0	%		37.3	%		43.8	%		39.0	%		34.5	%		39.1	%		37.5	%

Combined ratio		115.6	%		114.2	%		117.7	%		122.5	%		98.5	%		115.7	%		110.2	%


Combined ratio excl. COVID-19 related losses, catastrophe losses, and prior year loss reserve development		107.8	%		100.3	%		113.4	%		113.4	%		99.0	%		107.0	%		107.3	%

Page 11

American Financial Group, Inc.

Annuity Earnings

($ in millions)


	Three Months Ended												Nine Months Ended
	9/30/20		6/30/20			3/31/20			12/31/19		9/30/19		9/30/20			9/30/19

Net investment income	$	418	$	421		$	428		$	435	$	421	$	1,267		$	1,247
Alternative investments marked to market through core operating earnings		46		(37	)		(6	)		23		27		3			87
Guaranteed withdrawal benefit fees		18		17			17			17		17		52			50
Policy charges and other miscellaneous income (a)		17		13			18			13		14		48			39

Total revenues		499		414			457			488		479		1,370			1,423

Annuity benefits (a)		282		274			287			285		280		843			822
Acquisition expenses		64		62			71			65		64		197			191
Other expenses		32		36			32			34		35		100			105

Total costs and expenses		378		372			390			384		379		1,140			1,118


Pretax Annuity core operating earnings	$	121	$	42		$	67		$	104	$	100	$	230		$	305

Other amounts previously reported as core operating, net (b)		n/a		n/a			n/a			n/a		n/a		n/a			(11	)

Pretax Annuity core operating earnings - as reported	$	121	$	42		$	67		$	104	$	100	$	230		$	294


Components of Pretax Annuity Core Operating Earnings

Pretax annuity core operating earnings before items below	$	81	$	84		$	79		$	84	$	75	$	244		$	225
Other amounts previously reported as core operating, net (b)		n/a		n/a			n/a			n/a		n/a		n/a			(11	)

Pretax annuity core operating earnings before alternative investments marked to market		81		84			79			84		75		244			214

Alternative investments marked to market, net of DAC		40		(42	)		(12	)		20		25		(14	)		80
Pretax Annuity core operating earnings - as reported	$	121	$	42		$	67		$	104	$	100	$	230		$	294

(a)	Gains received on options in excess of index credits to policyholder are recorded through annuity benefits for GAAP. For the investor supplement presentation, these gains are shown in policy charges and other miscellaneous income.

(b)	“Other” primarily reflects (1) the impact of fair value accounting, (2) the impact of changes in the stock market on the liability for guaranteed benefits and DAC, and (3) unlocking.

Page 12a

American Financial Group, Inc.

Annuity Earnings - Alternative View

($ in millions)


	Three Months Ended												Nine Months Ended
	9/30/20		6/30/20			3/31/20			12/31/19		9/30/19		9/30/20			9/30/19

Net investment income (excluding alternative investments marked to market)	$	416	$	418		$	426		$	433	$	419	$	1,260		$	1,240
Guaranteed withdrawal benefit fees		18		17			17			17		17		52			50
Policy charges and other miscellaneous income (a)		14		12			15			10		11		41			31

Total revenues		448		447			458			460		447		1,353			1,321

Annuity benefits (a)		281		273			285			284		278		839			817
Acquisition expenses (excluding alternative investments marked to market)		57		57			61			61		60		175			179
Other expenses		31		35			32			33		34		98			103

Total costs and expenses		369		365			378			378		372		1,112			1,099


Pretax Annuity core operating earnings (excluding variable annuity earnings and alternative investments marked to market)		79		82			80			82		75		241			222

Variable annuity earnings		2		2			(1	)		2		—		3			3

Pretax Annuity core operating earnings (excluding alternative investments marked to market)		81		84			79			84		75		244			225

Alternative investments marked to market, net of DAC		40		(42	)		(12	)		20		25		(14	)		80

Pretax annuity core operating earnings		121		42			67			104		100		230			305

Other amounts previously reported as core operating, net (b)		n/a		n/a			n/a			n/a		n/a		n/a			(11	)

Pretax Annuity core operating earnings - as reported	$	121	$	42		$	67		$	104	$	100	$	230		$	294

(a)	Gains received on options in excess of index credits to policyholder are recorded through annuity benefits for GAAP. For the investor supplement presentation, these gains are shown in policy charges and other miscellaneous income.

(b)	“Other” primarily reflects (1) the impact of fair value accounting, (2) the impact of changes in the stock market on the liability for guaranteed benefits and DAC, and (3) unlocking.

Page 12b

American Financial Group, Inc.

Detail of Annuity Benefits Expense

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19

Detail of annuity benefits expense:
Cost of funds:
Amortization of options (a)	$	148		$	148		$	150		$	150		$	149		$	446		$	436
Traditional fixed annuities		64			64			63			62			62			191			182
Fixed component of fixed-indexed annuities		26			26			25			25			24			77			69
Immediate annuities		5			6			6			6			6			17			18
Pension risk transfer		5			4			4			3			2			13			4
Federal Home Loan Bank		1			3			5			6			7			9			21

Total cost of funds		249			251			253			252			250			753			730

Guaranteed withdrawal benefit reserve		26			17			25			24			21			68			60
Amortization of sales inducements		2			2			2			3			3			6			11
Change in expected death and annuitization reserve and other		5			4			7			6			6			16			21

Total other annuity benefits		33			23			34			33			30			90			92


Total annuity benefits expense	$	282		$	274		$	287		$	285		$	280		$	843		$	822


(a) Amortization of options, net of DAC and reserve offsets:

Amortization of options	$	148		$	148		$	150		$	150		$	149		$	446		$	436
DAC and reserve offsets		(76	)		(77	)		(77	)		(77	)		(74	)		(230	)		(220	)

Amortization of options, net of DAC and reserve offsets	$	72		$	71		$	73		$	73		$	75		$	216		$	216

Page 13

American Financial Group, Inc.

Core Net Spread on Fixed Annuities

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19

Average fixed annuity investments (at amortized cost) (a)	$	40,859		$	40,570		$	40,073		$	39,316		$	38,650		$	40,501		$	37,849
Average annuity benefits accumulated		41,158			40,601			40,139			39,615			38,946			40,633			38,075

Annuity benefits accumulated in excess of investments (a)	$	(299	)	$	(31	)	$	(66	)	$	(299	)	$	(296	)	$	(132	)	$	(226	)


As % of average annuity benefits accumulated (except as noted)
Net investment income (excluding alternative investments marked to market) (as % of investments)		4.07	%		4.13	%		4.25	%		4.40	%		4.34	%		4.15	%		4.37	%
Cost of funds		(2.42	%)		(2.47	%)		(2.52	%)		(2.54	%)		(2.57	%)		(2.47	%)		(2.56	%)
Other annuity benefits, net of guaranteed withdrawal benefit fees		(0.14	%)		(0.06	%)		(0.14	%)		(0.15	%)		(0.12	%)		(0.11	%)		(0.13	%)

Core net interest spread on fixed annuities		1.51	%		1.60	%		1.59	%		1.71	%		1.65	%		1.57	%		1.68	%

Policy charges and other miscellaneous income		0.14	%		0.11	%		0.15	%		0.11	%		0.12	%		0.13	%		0.11	%
Acquisition expenses (excluding alternative investments marked to market)		(0.55	%)		(0.56	%)		(0.61	%)		(0.62	%)		(0.63	%)		(0.57	%)		(0.64	%)
Other expenses		(0.30	%)		(0.35	%)		(0.32	%)		(0.33	%)		(0.34	%)		(0.32	%)		(0.36	%)

Core net spread earned on fixed annuities (excluding alternative investments marked to market)		0.80	%		0.80	%		0.81	%		0.87	%		0.80	%		0.81	%		0.79	%

Alternative investments marked to market, net of DAC		0.39	%		(0.41	%)		(0.12	%)		0.20	%		0.26	%		(0.05	%)		0.29	%

Core net spread earned on fixed annuities		1.19	%		0.39	%		0.69	%		1.07	%		1.06	%		0.76	%		1.08	%

Net spread earned on items previously reported as core operating		n/a			n/a			n/a			n/a			n/a			n/a			(0.04	%)

Core net spread earned on fixed annuities - as reported		1.19	%		0.39	%		0.69	%		1.07	%		1.06	%		0.76	%		1.04	%


Average annuity benefits accumulated	$	41,158		$	40,601		$	40,139		$	39,615		$	38,946		$	40,633		$	38,075
Net spread earned on fixed annuities (excluding alternative investments marked to market) - core		0.80	%		0.80	%		0.81	%		0.87	%		0.80	%		0.81	%		0.79	%

Earnings on fixed annuity benefits accumulated - core	$	82		$	82		$	81		$	85		$	78		$	245		$	229

Annuity benefits accumulated in excess of investments	$	(299	)	$	(31	)	$	(66	)	$	(299	)	$	(296	)	$	(132	)	$	(226	)
Net investment income (excluding alternative investments marked to market) (as % of investments)		4.07	%		4.13	%		4.25	%		4.40	%		4.34	%		4.15	%		4.37	%

Earnings/(loss) on annuity benefits accumulated in excess of investments	$	(3	)	$	—		$	(1	)	$	(3	)	$	(3	)	$	(4	)	$	(7	)

Variable annuity earnings		2			2			(1	)		2			—			3			3

Pretax Annuity core operating earnings (excluding alternative investments marked to market)		81			84			79			84			75			244			225

Alternative investments marked to market, net of DAC		40			(42	)		(12	)		20			25			(14	)		80

Pretax Annuity core operating earnings		121			42			67			104			100			230			305

Other amounts previously reported as core operating, net		n/a			n/a			n/a			n/a			n/a			n/a			(11	)

Pretax Annuity core operating earnings - as reported	$	121		$	42		$	67		$	104		$	100		$	230		$	294

(a)	Excludes non-investment assets such as deferred acquisition costs, FIA options, accrued investment income and company owned life insurance.

Page 14


American Financial Group, Inc. Statutory Annuity Premiums ($ in millions)


	Three Months Ended												Nine Months Ended
	9/30/20			6/30/20			3/31/20		12/31/19		9/30/19		9/30/20			9/30/19
Financial institutions single premium annuities - indexed	$	332		$	258		$	424	$	359	$	325	$	1,014		$	1,178
Financial institutions single premium annuities - fixed		141			98			287		270		302		526			959
Retail single premium annuities - indexed		134			138			172		170		198		444			773
Retail single premium annuities - fixed		17			31			25		25		30		73			95
Broker dealer single premium annuities - indexed		109			100			138		107		134		347			550
Broker dealer single premium annuities - fixed		3			2			17		9		9		22			23
Pension risk transfer (PRT)		99			23			103		158		39		225			99
Education market - fixed and indexed annuities		33			32			39		36		35		104			128

Subtotal fixed annuity premiums		868			682			1,205		1,134		1,072		2,755			3,805

Variable annuities		3			5			5		5		5		13			16

Total gross annuity premiums	$	871		$	687		$	1,210	$	1,139	$	1,077	$	2,768		$	3,821

Less: Reinsurance		(168	)		(78	)		—		—		—		(246	)		—

Total net annuity premiums	$	703		$	609		$	1,210	$	1,139	$	1,077	$	2,522		$	3,821


Summary by Distribution Channel:
Financial institutions	$	473		$	356		$	711	$	629	$	627	$	1,540		$	2,137
Retail		151			169			197		195		228		517			868
Broker dealer		112			102			155		116		143		369			573
Other		135			60			147		199		79		342			243

Total gross annuity premiums	$	871		$	687		$	1,210	$	1,139	$	1,077	$	2,768		$	3,821

Less: Reinsurance		(168	)		(78	)		—		—		—		(246	)		—

Total net annuity premiums	$	703		$	609		$	1,210	$	1,139	$	1,077	$	2,522		$	3,821


Summary by Product Type:
Total indexed	$	591		$	512		$	753	$	655	$	675	$	1,856		$	2,572
Total fixed		277			170			452		479		397		899			1,233
Variable		3			5			5		5		5		13			16

Total gross annuity premiums	$	871		$	687		$	1,210	$	1,139	$	1,077	$	2,768		$	3,821

Less: Reinsurance		(168	)		(78	)		—		—		—		(246	)		—

Total net annuity premiums	$	703		$	609		$	1,210	$	1,139	$	1,077	$	2,522		$	3,821

Page 15

American Financial Group, Inc.

Fixed Annuity Benefits Accumulated (GAAP)

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19

Beginning fixed annuity reserves	$	40,942		$	40,260		$	40,018		$	39,212		$	38,680		$	40,018		$	36,431
Premiums		868			682			1,205			1,134			1,072			2,755			3,805
Federal Home Loan Bank (“FHLB”) advances (paydowns)		—			(40	)		200			—			—			160			—
Surrenders, benefits and other withdrawals		(844	)		(768	)		(794	)		(829	)		(808	)		(2,406	)		(2,431	)
Interest and other annuity benefit expenses:
Cost of funds		249			251			253			252			250			753			730
Embedded derivative marked to market		245			601			(647	)		276			111			199			824
Unlockings		(73	)		—			—			—			(75	)		(73	)		(75	)
Other		(13	)		(44	)		25			(27	)		(18	)		(32	)		(72	)

Ending fixed annuity reserves	$	41,374		$	40,942		$	40,260		$	40,018		$	39,212		$	41,374		$	39,212


Reconciliation to annuity benefits accumulated:
Ending fixed annuity reserves	$	41,374		$	40,942		$	40,260		$	40,018		$	39,212		$	41,374		$	39,212
Impact of unrealized investment gains on reserves		394			285			38			225			269			394			269
Fixed component of variable annuities		164			165			165			163			170			164			170

Annuity benefits accumulated per balance sheet	$	41,932		$	41,392		$	40,463		$	40,406		$	39,651		$	41,932		$	39,651


Annualized surrenders and other withdrawals as a % of beginning reserves		8.3	%		7.6	%		7.9	%		8.5	%		8.4	%		8.0	%		8.9	%

Rider reserves included in ending fixed annuity reserves above	$	801		$	680		$	690		$	625		$	611		$	801		$	611


Embedded Derivative liability included in ending fixed annuity reserves above	$	3,657		$	3,675		$	3,099		$	3,730		$	3,469		$	3,657		$	3,469

Page 16

American Financial Group, Inc.

Guaranteed Minimum Interest Rate (“GMIR”) Analysis

($ in millions)


GMIR (a)	*Pro Forma* 9/30/20 (e)			9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			6/30/19
1 - 1.99%		85	%		85	%		85	%		84	%		84	%		84	%		83	%
2 - 2.99%		3	%		3	%		3	%		3	%		3	%		3	%		4	%
3 - 3.99%		7	%		6	%		6	%		7	%		7	%		7	%		7	%
4.00% and above		5	%		6	%		6	%		6	%		6	%		6	%		6	%

Annuity Benefits Accumulated	$	41,932		$	41,932		$	41,392		$	40,463		$	40,406		$	39,651		$	39,044

Traditional Fixed and FIA Surrender Value (b) (c)	$	25,853		$	31,853		$	31,619		$	30,934		$	30,921		$	30,292		$	29,891

Ability to Lower Average Crediting Rates by (b) (d)		1.08	%		1.10	%		1.14	%		1.18	%		1.19	%		1.20	%		1.20	%

Pretax earnings impact of crediting guaranteed minimums (b) (assumes net DAC impact over time = $0)	$	280		$	350		$	360		$	365		$	368		$	363		$	359

(a)	Excludes Federal Home Loan Bank (“FHLB”) advances, immediate reserves and certain other reserves.

(b)	Excludes Annuities with Guaranteed Withdrawal Benefits, FHLB advances, immediate reserves and certain other reserves.

(c)	FIA and VIA Surrender Value include Host + Embedded Derivatives + Fixed Account values.

(d)	Weighted Average Crediting Rate less GMIR

(e)	Projected results if Block Reinsurance transaction took effect on 9/30/20

Page 17

American Financial Group, Inc.

Annuity Non-Core Earnings (Losses)

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19
Annuity Non-Core Earnings (Losses):
Stock market impact on:
Liability for guaranteed benefits (a)	$	14		$	22		$	(33	)	$	12		$	2		$	3		$	22
DAC and sales inducements (b)		3			7			(10	)		4			1			—			7
Fair Value (FV) accounting		2			9			(21	)		8			1			(10	)		15

Subtotal impact of changes in stock market		19			38			(64	)		24			4			(7	)		44
Impact of changes in interest rates on FV accounting		(17	)		(100	)		29			(4	)		(30	)		(88	)		(113	)
Other FIA items		1			3			(3	)		4			—			1			(1	)
Unlockings		(46	)		—			—			—			(1	)		(46	)		(1	)

Annuity Non-Core Earnings (Losses)	$	(43	)	$	(59	)	$	(38	)	$	24		$	(27	)	$	(140	)	$	(71	)

																				Q1 Core = ($11)
Reported as		Non-core			Non-core			Non-core			Non-core			Non-core			Non-core			Q2/Q3 Non-core = ($60)
Annuity Non-Core Earnings (Losses), net of taxes	$	(34	)	$	(47	)	$	(30	)	$	19		$	(21	)	$	(111	)	$	48


Annuity Non-Core Net Spread Earned:
Stock market impact on:
Liability for guaranteed benefits (a)		0.14	%		0.22	%		(0.33	%)		0.12	%		0.02	%		0.01	%		0.08	%
DAC and sales inducements (b)		0.03	%		0.07	%		(0.10	%)		0.04	%		0.01	%		0.00	%		0.02	%
Fair Value (FV) accounting		0.02	%		0.09	%		(0.21	%)		0.08	%		0.01	%		(0.03	%)		0.05	%

Subtotal impact of changes in stock market		0.19	%		0.38	%		(0.64	%)		0.24	%		0.04	%		(0.02	%)		0.15	%
Impact of changes in interest rates on FV accounting		(0.16	%)		(0.99	%)		0.29	%		(0.04	%)		(0.31	%)		(0.29	%)		(0.40	%)
Other FIA items		0.01	%		0.03	%		(0.03	%)		0.04	%		0.00	%		0.00	%		0.00	%
Unlockings		(0.45	%)		0.00	%		0.00	%		0.00	%		(0.01	%)		(0.15	%)		0.00	%

Non-core net spread earned on fixed annuities		(0.41	%)		(0.58	%)		(0.38	%)		0.24	%		(0.28	%)		(0.46	%)		(0.25	%)

																				Q1 Core = (.04%)
Reported as		Non-core			Non-core			Non-core			Non-core			Non-core			Non-core			Q2/Q3 Non-core = (.21%)

(a)	Reflects the impact of changes in the stock market on AFG’s liability for fixed-indexed 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.

(b)	Reflects the impact of 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 unfavorable impact.


S&P 500	3,363		3,100		2,585		3,231		2,977		3,363		2,977

Average 5 and 15 year Corp A2 rates	1.83	%	1.95	%	3.01	%	2.74	%	2.71	%	1.83	%	2.71	%

Non-core earnings sensitivities:
Incremental +/- 1% change in S&P 500					~ +/- $0mm to $2mm
Incremental +/- 10bps change in interest rates (Assumes parallel shift in rates (primarily Corporate A2 rates))					~ +/- $6mm to $8mm

Page 18

American Financial Group, Inc.

Reconciliation from Core to GAAP Annuity Pretax Earnings

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19
Annuity Earnings

Core annuity operating earnings - as reported (see page 12a)	$	121		$	42		$	67		$	104		$	100		$	230		$	294
Annuity non-core earnings (losses)		(43	)		(59	)		(38	)		24			(27	)		(140	)		(60	)

Earnings before income taxes - GAAP	$	78		$	(17	)	$	29		$	128		$	73		$	90		$	234


Policy Charges and Other Miscellaneous Income

Policy charges and other miscellaneous income (see page 12a)	$	17		$	13		$	18		$	13		$	14		$	48		$	39
Annuity non-core policy charges and other miscellaneous income		(5	)		—			—			—			1			(5	)		1

Policy Charges and Other Miscellaneous Income - GAAP	$	12		$	13		$	18		$	13		$	15		$	43		$	40


Annuity Benefit Expense

Annuity benefits expense (see page 13)	$	282		$	274		$	287		$	285		$	280		$	843		$	822
Annuity non-core annuity benefits		(69	)		157			(3	)		(30	)		(26	)		85			86

Annuity Benefit Expense - GAAP	$	213		$	431		$	284		$	255		$	254		$	928		$	908


Acquisition Expenses
Acquisition expenses (see page 12a)	$	64		$	62		$	71		$	65		$	64		$	197		$	191
Annuity non-core acquisition expenses		107			(98	)		41			6			54			50			(14	)

Acquisition Expenses - GAAP	$	171		$	(36	)	$	112		$	71		$	118		$	247		$	177


Net Spread on Fixed Annuities

Core net spread earned on fixed annuities - as reported (see page 14)		1.19	%		0.39	%		0.69	%		1.07	%		1.06	%		0.76	%		1.04	%
Non-core net spread earned on fixed annuities		(0.41	%)		(0.58	%)		(0.38	%)		0.24	%		(0.28	%)		(0.46	%)		(0.21	%)

Net Spread on Fixed Annuities		0.78	%		(0.19	%)		0.31	%		1.31	%		0.78	%		0.30	%		0.83	%

Page 19

American Financial Group, Inc.

Consolidated Balance Sheet

($ in millions)


	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			6/30/19

Assets:
Total cash and investments	$	58,087		$	56,741		$	53,221		$	55,252		$	54,207		$	52,907
Recoverables from reinsurers		3,819			3,476			3,387			3,415			3,261			3,150
Prepaid reinsurance premiums		862			733			708			678			781			651
Agents’ balances and premiums receivable		1,384			1,366			1,302			1,335			1,403			1,398
Deferred policy acquisition costs		497			818			1,573			1,037			964			1,203
Assets of managed investment entities		4,717			4,393			4,026			4,736			4,702			4,781
Other receivables		1,185			880			981			975			1,187			999
Variable annuity assets (separate accounts)		603			577			497			628			601			616
Other assets		1,749			1,676			1,741			1,867			1,754			1,785
Goodwill		207			207			207			207			207			207

Total assets	$	73,110		$	70,867		$	67,643		$	70,130		$	69,067		$	67,697


Liabilities and Equity:
Unpaid losses and loss adjustment expenses	$	10,754		$	10,321		$	10,106		$	10,232		$	9,847		$	9,577
Unearned premiums		3,015			2,778			2,808			2,830			2,986			2,683
Annuity benefits accumulated		41,932			41,392			40,463			40,406			39,651			39,044
Life, accident and health reserves		609			606			607			612			613			619
Payable to reinsurers		977			746			779			814			867			755
Liabilities of managed investment entities		4,541			4,236			3,865			4,571			4,523			4,590
Long-term debt		2,108			1,912			1,473			1,473			1,423			1,423
Variable annuity liabilities (separate accounts)		603			577			497			628			601			616
Other liabilities		2,231			2,173			1,998			2,295			2,235			2,300

Total liabilities	$	66,770		$	64,741		$	62,596		$	63,861		$	62,746		$	61,607

Shareholders’ equity:
Common stock	$	87		$	89		$	90		$	90		$	90		$	90
Capital surplus		1,283			1,299			1,309			1,307			1,292			1,277
Retained earnings		3,737			3,685			3,616			4,009			4,022			3,914
Unrealized gains — fixed maturities		1,212			1,030			16			862			920			812
Unrealized gains (losses) — fixed maturity-related cash flow hedges		41			47			44			17			25			18
Other comprehensive income, net of tax		(20	)		(24	)		(28	)		(16	)		(28	)		(21	)

Total shareholders’ equity		6,340			6,126			5,047			6,269			6,321			6,090

Noncontrolling interests		—			—			—			—			—			—

Total liabilities and equity	$	73,110		$	70,867		$	67,643		$	70,130		$	69,067		$	67,697

Page 20

American Financial Group, Inc.

Book Value Per Share and Price / Book Summary

(in millions, except per share information)


	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			6/30/19

Shareholders’ equity	$	6,340		$	6,126		$	5,047		$	6,269		$	6,321		$	6,090
Unrealized (gains) related to fixed maturities		(1,253	)		(1,077	)		(60	)		(879	)		(945	)		(830	)

Adjusted shareholders’ equity		5,087			5,049			4,987			5,390			5,376			5,260
Goodwill		(207	)		(207	)		(207	)		(207	)		(207	)		(207	)
Intangibles		(34	)		(37	)		(40	)		(43	)		(45	)		(48	)

Tangible adjusted shareholders’ equity	$	4,846		$	4,805		$	4,740		$	5,140		$	5,124		$	5,005


Common shares outstanding		87.267			88.659			89.827			90.304			90.127			89.918

Book value per share:
Book value per share	$	72.65		$	69.10		$	56.18		$	69.43		$	70.14		$	67.72
Adjusted (a)		58.29			56.95			55.52			59.70			59.65			58.49
Tangible, adjusted (b)		55.53			54.20			52.77			56.93			56.84			55.65

Market capitalization

AFG’s closing common share price	$	66.98		$	63.46		$	70.08		$	109.65		$	107.85		$	102.47

Market capitalization	$	5,845		$	5,626		$	6,295		$	9,902		$	9,720		$	9,214

Price / Adjusted book value ratio		1.15			1.11			1.26			1.84			1.81			1.75

(a)	Excludes unrealized gains related to fixed maturity investments.

(b)	Excludes unrealized gains related to fixed maturity investments, goodwill and intangibles.

Page 21

American Financial Group, Inc.

Capitalization

($ in millions)


	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			6/30/19

AFG senior obligations	$	1,318		$	1,318		$	1,018		$	1,018		$	1,018		$	1,018
Borrowings drawn under credit facility		—			—			—			—			—			—

Debt excluding subordinated debt	$	1,318		$	1,318		$	1,018		$	1,018		$	1,018		$	1,018

AFG subordinated debentures		825			625			475			475			425			425

Total principal amount of long-term debt	$	2,143		$	1,943		$	1,493		$	1,493		$	1,443		$	1,443

Shareholders’ equity		6,340			6,126			5,047			6,269			6,321			6,090
Noncontrolling interests (including redeemable NCI)		—			—			—			—			—			—
Less:
Unrealized (gains) related to fixed maturity investments		(1,253	)		(1,077	)		(60	)		(879	)		(945	)		(830	)

Total adjusted capital	$	7,230		$	6,992		$	6,480		$	6,883		$	6,819		$	6,703


Ratio of debt to total adjusted capital:
Including subordinated debt		29.6	%		27.8	%		23.0	%		21.7	%		21.2	%		21.5	%
Excluding subordinated debt		18.2	%		18.9	%		15.7	%		14.8	%		14.9	%		15.2	%

Page 22

American Financial Group, Inc.

Additional Supplemental Information

($ in millions)


	Three Months Ended										Nine Months Ended
	9/30/20		6/30/20		3/31/20		12/31/19		9/30/19		9/30/20		9/30/19

Property and Casualty Insurance

Paid Losses (GAAP)	$	646	$	601	$	751	$	727	$	769	$	1,998	$	2,139


	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			6/30/19
GAAP Equity (excluding AOCI)

Property and Casualty Insurance	$	4,154		$	3,945		$	3,800		$	4,043		$	4,094		$	3,959
Annuity		2,659			2,579			2,512			2,715			2,613			2,612
Parent and other subsidiaries		(1,706	)		(1,451	)		(1,297	)		(1,352	)		(1,303	)		(1,290	)

AFG GAAP Equity (excluding AOCI)	$	5,107		$	5,073		$	5,015		$	5,406		$	5,404		$	5,281


Allowable dividends without regulatory approval

Property and Casualty Insurance	$	565		$	565		$	565		$	565		$	529		$	529
Annuity and Run-off		287			287			287			287			768			768

Total	$	852		$	852		$	852		$	852		$	1,297		$	1,297

Page 23

American Financial Group, Inc.

Total Cash and Investments

($ in millions)


	Carrying Value - September 30, 2020
	Property and Casualty Insurance		Annuity and Run-off		Parent and Other Non- Insurance		Consolidate CLOs			Total AFG Consolidated		% of Investment Portfolio
Total cash and investments:
Cash and cash equivalents	$	1,692	$	1,462	$	593	$	—		$	3,747		7	%
Fixed maturities — Available for sale		8,761		39,424		8		—			48,193		83	%
Fixed maturities — Trading		47		45		—		—			92		0	%
Equity securities — common stocks		410		401		63		—			874		2	%
Equity securities — perpetual preferred		377		355		—		—			732		1	%
Investments accounted for using the equity method		778		1,063		—		—			1,841		3	%
Mortgage loans		325		1,157		—		—			1,482		3	%
Policy loans		—		154		—		—			154		0	%
Equity index call options		—		697		—		—			697		1	%
Real estate and other investments		117		281		52		(175	)		275		0	%

Total cash and investments	$	12,507	$	45,039	$	716	$	(175	)	$	58,087		100	%


	Carrying Value - December 31, 2019
	Property and Casualty Insurance		Annuity and Run-off		Parent and Other Non- Insurance		Consolidate CLOs			Total AFG Consolidated		% of Investment 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.

Net Investment Income

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19
Property and Casualty Insurance:
Gross Investment Income
Fixed maturities - Available for sale	$	72		$	75		$	81		$	79		$	75		$	228		$	231
Fixed maturities - Trading		—			—			1			—			1			1			3
Equity securities - dividends		8			8			10			11			12			26			38
Equity securities - MTM		(3	)		2			3			(1	)		7			2			10
Equity in investees		27			(15	)		11			21			20			23			43
AFG managed CLOs		4			—			(11	)		(2	)		(2	)		(7	)		3
Other investments (a)		5			3			6			13			12			14			29

Gross investment income		113			73			101			121			125			287			357
Investment expenses		(2	)		(1	)		(2	)		(1	)		(1	)		(5	)		(5	)

Total net investment income	$	111		$	72		$	99		$	120		$	124		$	282		$	352


Average cash and investments (b)	$	11,764		$	11,454		$	11,457		$	11,744		$	11,387		$	11,611		$	11,192


Average yield (c)		3.77	%		2.51	%		3.46	%		4.09	%		4.36	%		3.24	%		4.19	%


Fixed Annuity
Gross Investment Income
Fixed maturities - Available for sale	$	394		$	402		$	403		$	406		$	393		$	1,199		$	1,168
Equity securities - dividends		7			8			7			8			9			22			26
Equity securities - MTM		(2	)		—			5			4			7			3			13
Equity in investees		39			(39	)		14			24			23			14			66
AFG managed CLOs		9			2			(25	)		(5	)		(3	)		(14	)		8
Other investments (a)		19			14			19			23			21			52			58

Gross investment income		466			387			423			460			450			1,276			1,339
Investment expenses		(4	)		(5	)		(3	)		(4	)		(4	)		(12	)		(12	)

Total net investment income	$	462		$	382		$	420		$	456		$	446		$	1,264		$	1,327


Average cash and investments (b)	$	40,859		$	40,570		$	40,073		$	39,316		$	38,650		$	40,501		$	37,849


Average yield (c)		4.52	%		3.77	%		4.19	%		4.63	%		4.62	%		4.16	%		4.68	%


AFG consolidated net investment income:
Property & Casualty core	$	111		$	72		$	99		$	120		$	124		$	282		$	352
Neon exited lines non-core		1			—			(6	)		—			—			(5	)		—
Annuity:
Fixed Annuity		462			382			420			456			446			1,264			1,327
Variable Annuity		2			2			2			2			2			6			7
Parent & other		9			14			(7	)		8			11			16			35
Consolidate CLOs		(13	)		(2	)		36			7			5			21			(11	)

Total net investment income	$	572		$	468		$	544		$	593		$	588		$	1,584		$	1,710

(a)	Includes income from mortgage loans, real estate, policy loans, short-term investments, and cash equivalents.

(b)	Average cash and investments is the average of the beginning and ending quarter balances, or the average of the five quarters balances.

(c)	Average yield is calculated by dividing investment income for the quarter by the average cash and investment balance over the quarter.

Page 25

American Financial Group, Inc.

Insurance Companies' Alternative Investments

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19
Property and Casualty Insurance:
Net Investment Income
Equity securities MTM through investment income (a)	$	(3	)	$	2		$	3		$	(1	)	$	7		$	2		$	10
Investments accounted for using the equity method (b)		27			(15	)		11			21			20			23			43
AFG managed CLOs (eliminated in consolidation)		4			—			(11	)		(2	)		(2	)		(7	)		3

Total Property & Casualty	$	28		$	(13	)	$	3		$	18		$	25		$	18		$	56


Investments
Equity securities MTM through investment income (a)	$	109		$	95		$	86		$	71		$	63		$	109		$	63
Investments accounted for using the equity method (b)		778			755			736			703			625			778			625
AFG managed CLOs (eliminated in consolidation)		46			39			40			48			53			46			53

Total Property & Casualty	$	933		$	889		$	862		$	822		$	741		$	933		$	741


Annualized Yield - Property & Casualty		12.3	%		(5.9	%)		1.4	%		9.2	%		13.7	%		2.7	%		10.8	%

Fixed Annuity:
Net Investment Income
Equity securities MTM through investment income (a)	$	(2	)	$	—		$	5		$	4		$	7		$	3		$	13
Investments accounted for using the equity method (b)		39			(39	)		14			24			23			14			66
AFG managed CLOs (eliminated in consolidation)		9			2			(25	)		(5	)		(3	)		(14	)		8

Total Fixed Annuity	$	46		$	(37	)	$	(6	)	$	23		$	27		$	3		$	87


Investments
Equity securities MTM through investment income (a)	$	186		$	168		$	160		$	142		$	120		$	186		$	120
Investments accounted for using the equity method (b)		1,063			1,026			1,027			985			910			1,063			910
AFG managed CLOs (eliminated in consolidation)		129			118			120			116			125			129			125

Total Fixed Annuity	$	1,378		$	1,312		$	1,307		$	1,243		$	1,155		$	1,378		$	1,155


Annualized Yield - Fixed Annuity		13.7	%		(11.3	%)		(1.9	%)		7.7	%		9.5	%		0.3	%		10.5	%

Combined:
Net Investment Income
Equity securities MTM through investment income (a)	$	(5	)	$	2		$	8		$	3		$	14		$	5		$	23
Investments accounted for using the equity method (b)		66			(54	)		25			45			43			37			109
AFG managed CLOs (eliminated in consolidation)		13			2			(36	)		(7	)		(5	)		(21	)		11

Total Combined	$	74		$	(50	)	$	(3	)	$	41		$	52		$	21		$	143


Investments
Equity securities MTM through investment income (a)	$	295		$	263		$	246		$	213		$	183		$	295		$	183
Investments accounted for using the equity method (b)		1,841			1,781			1,763			1,688			1,535			1,841			1,535
AFG managed CLOs (eliminated in consolidation)		175			157			160			164			178			175			178

Total Combined	$	2,311		$	2,201		$	2,169		$	2,065		$	1,896		$	2,311		$	1,896


Annualized Yield - Combined		13.1	%		(9.2	%)		(0.6	%)		8.3	%		11.1	%		1.3	%		10.6	%

(a)	AFG carries the small portion of its equity securities previously classified as "trading" and investments in limited partnerships and similar investments that aren't accounted for using the equity method at fair value through net investment income.

(b)	The majority of AFG's investments accounted for using the equity method mark their underlying assets to market through net income.

Page 26

American Financial Group, Inc.

Fixed Maturities - By Security Type - AFG Consolidated

($ in millions)


September 30, 2020	Book Value (b)			Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Investment Portfolio
US Government and government agencies	$	213		$	226	$	13			0	%		0	%
States, municipalities and political subdivisions		6,167			6,739		572			14	%		12	%
Foreign government		225			233		8			0	%		0	%
Residential mortgage-backed securities		2,880			3,138		258			7	%		5	%
Commercial mortgage-backed securities		814			856		42			2	%		2	%
Collateralized loan obligations		4,623			4,607		(16	)		10	%		8	%
Other asset-backed securities		7,389			7,419		30			15	%		13	%
Corporate and other bonds		23,024			25,067		2,043			52	%		43	%

Total AFG consolidated	$	45,335		$	48,285	$	2,950			100	%		83	%


Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		4.16	%
Net of investment expense (a)		4.12	%

Approximate average life and duration:
Approximate average life		5.5 years
Approximate duration		4 years

December 31, 2019	Book Value			Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Investment 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 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.

Fixed Maturities - By Security Type Portfolio

($ in millions)


	September 30, 2020											December 31, 2019
Property and Casualty Insurance:	Book Value			Fair Value		Unrealized Gain (Loss)			% of Fair Value			Book Value			Fair Value		Unrealized Gain (Loss)			% of Fair Value
US Government and government agencies	$	174		$	181	$	7			2	%	$	165		$	167	$	2			2	%
States, municipalities and political subdivisions		2,312			2,426		114			27	%		2,524			2,614		90			30	%
Foreign government		194			198		4			2	%		178			177		(1	)		2	%
Residential mortgage-backed securities		889			943		54			11	%		990			1,051		61			12	%
Commercial mortgage-backed securities		85			88		3			1	%		89			92		3			1	%
Collateralized loan obligations		960			954		(6	)		11	%		906			901		(5	)		11	%
Other asset-backed securities		1,906			1,910		4			22	%		1,727			1,741		14			20	%
Corporate and other bonds		2,034			2,108		74			24	%		1,861			1,912		51			22	%

Property and Casualty Insurance	$	8,554		$	8,808	$	254			100	%	$	8,440		$	8,655	$	215			100	%


Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		3.40	%										3.94	%
Net of investment expense (a)		3.34	%										3.90	%
Tax equivalent, net of investment expense (b)		3.49	%										4.05	%

Approximate average life and duration:
Approximate average life		4 years											4.5 years
Approximate duration		3 years											3 years

	September 30, 2020											December 31, 2019
Annuity and Run-off:	Book Value			Fair Value		Unrealized Gain (Loss)			% of Fair Value			Book Value			Fair Value		Unrealized Gain (Loss)			% of Fair Value
US Government and government agencies	$	39		$	45	$	6			0	%	$	38		$	46	$	8			0	%
States, municipalities and political subdivisions		3,855			4,313		458			11	%		4,104			4,373		269			12	%
Foreign government		31			35		4			0	%		31			34		3			0	%
Residential mortgage-backed securities		1,990			2,187		197			6	%		1,909			2,100		191			6	%
Commercial mortgage-backed securities		729			768		39			2	%		807			835		28			2	%
Collateralized loan obligations		3,663			3,653		(10	)		9	%		3,401			3,379		(22	)		9	%
Other asset-backed securities		5,483			5,509		26			14	%		5,265			5,387		122			14	%
Corporate and other bonds		20,990			22,959		1,969			58	%		20,640			21,799		1,159			57	%

Total Annuity and Run-off	$	36,780		$	39,469	$	2,689			100	%	$	36,195		$	37,953	$	1,758			100	%


Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		4.33	%										4.59	%
Net of investment expense (a)		4.29	%										4.55	%

Approximate average life and duration:
Approximate average life		6 years											6 years
Approximate duration		4.5 years											4.5 years

(a)	Annualized yield is calculated by dividing investment income for the quarter by the average cost over the quarter. Average cost is the average of the beginning and ending quarter asset balances.

(b)	Adjusts the yield on tax-exempt bonds to the fully taxable equivalent yield.

Page 28

American Financial Group, Inc.

Fixed Matu

rities - Credit Rating

($ in millions)


	September 30, 2020
By Credit Rating (a)	Book V.alue		Fair Value		Unrealized Gain (Loss)			% of Fair Value
Investment grade
AAA	$	9,539	$	9,819	$	280			20	%
AA		7,836		8,299		463			17	%
A		9,431		10,227		796			21	%
BBB		14,074		15,292		1,218			32	%

Subtotal — Investment grade		40,880		43,637		2,757			90	%

BB		832		813		(19	)		2	%
B		291		291		—			1	%
Other (b)		3,332		3,544		212			7	%

Subtotal — Non-Investment grade		4,455		4,648		193			10	%


Total	$	45,335	$	48,285	$	2,950			100	%

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



	December 31, 2019
By Credit Rating (a)	Book Value		Fair Value		Unrealized Gain (Loss)			% of 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 rate a security, the rating displayed is the second lowest.

(b)	See pages 33 and 34 for more information.

Page 29

American Financial Group, Inc.

Mortgage-Backed Securities - AFG Consolidated

($ in millions)


September 30, 2020	Book Value		Fair Value		Unrealized Gain (Loss)		% of Fair Value			% of Investment Portfolio
Residential
Agency	$	485	$	492	$	7		12	%		1	%
Prime (Non-Agency)		1,301		1,412		111		36	%		2	%
Alt-A		811		920		109		23	%		2	%
Subprime		283		314		31		8	%		1	%
Commercial		814		856		42		21	%		1	%

Total AFG consolidated	$	3,694	$	3,994	$	300		100	%		7	%

Substantially all of AFG’s MBS securities are either senior tranches of securitizations or collateralized by senior tranches of securitizations.

The average amortized cost as a percent of par is - Prime 88%; Alt-A 81%; Subprime 82%; CMBS 99%.

The average FICO score of our residential MBS securities is - Prime 746; Alt-A 692; Subprime 631.

93% of our Commercial MBS portfolio is investment-grade rated (81% AAA) and the average subordination for this group of assets is 37%.

The approximate average life by collateral type is - Residential 4 years; Commercial 3 years.


December 31, 2019	Book Value		Fair Value		Unrealized Gain (Loss)		% of Fair Value			% of Investment 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.

Mortgage-Backed Securities Portfolio

($ in millions)


Property and Casualty Insurance:	September 30, 2020
By Asset Type	Book Value		Fair Value		Unrealized Gain (Loss)		% of Fair Value			% of Inv Portfolio
Residential
Agency	$	247	$	251	$	4		24	%		2	%
Prime (Non-Agency)		307		321		14		31	%		2	%
Alt-A		226		252		26		24	%		2	%
Subprime		109		119		10		12	%		1	%
Commercial		85		88		3		9	%		1	%

Total	$	974	$	1,031	$	57		100	%		8	%


	December 31, 2019
By Asset Type	Book Value		Fair Value		Unrealized Gain (Loss)		% of Fair Value			% of Inv Portfolio
Residential
Agency	$	315	$	317	$	2		28	%		3	%
Prime (Non-Agency)		279		292		13		26	%		2	%
Alt-A		265		299		34		26	%		2	%
Subprime		131		143		12		12	%		1	%
Commercial		89		92		3		8	%		1	%

Total	$	1,079	$	1,143	$	64		100	%		9	%


Annuity and Run-off:	September 30, 2020
By Asset Type	Book Value		Fair Value		Unrealized Gain (Loss)		% of Fair Value			% of Inv Portfolio
Residential
Agency	$	238	$	241	$	3		8	%		1	%
Prime (Non-Agency)		993		1,083		90		37	%		2	%
Alt-A		585		668		83		23	%		2	%
Subprime		174		195		21		6	%		0	%
Commercial		729		768		39		26	%		2	%

Total	$	2,719	$	2,955	$	236		100	%		7	%


	December 31, 2019
By Asset Type	Book Value		Fair` Value		Unrealized Gain (Loss)		% of Fair Value			% of Inv Portfolio
Residential
Agency	$	234	$	235	$	1		8	%		1	%
Prime (Non-Agency)		876		962		86		33	%		2	%
Alt-A		632		716		84		25	%		2	%
Subprime		167		187		20		6	%		0	%
Commercial		807		835		28		28	%		2	%

Total	$	2,716	$	2,935	$	219		100	%		7	%

Page 31

Appendix A

American Financial Group, Inc.

Components of Core Operating Earnings As Reported )

($ in millions)


	Three Months Ended															Nine Months Ended
	9/30/20			6/30/20			3/31/20			12/31/19			9/30/19			9/30/20			9/30/19
Core operating earnings before alternative investments marked to market
Property and Casualty Insurance core operating earnings before alternative investments marked to market	$	177		$	129		$	178		$	181		$	169		$	484		$	498
Annuity Pretax core operating earnings before alternative investments marked to market		81			84			79			84			75			244			214
Interest expense of parent holding companies		(24	)		(23	)		(17	)		(18	)		(17	)		(64	)		(50	)
Other expense		(28	)		(20	)		(20	)		(32	)		(22	)		(68	)		(74	)

Pre-tax core operating earnings before alternative investments marked to market		206			170			220			215			205			596			588
Income tax expense		43			31			42			42			39			116			114

Core net operating earnings before alternative investments marked to market	$	163		$	139		$	178		$	173		$	166		$	480		$	474


Alternative investments marked to market through core operating earnings, net of DAC
Property and Casualty Insurance alternative investments marked to market	$	28		$	(13	)	$	3		$	18		$	25		$	18		$	56
Annuity alternative investments marked to market, net of DAC		40			(42	)		(12	)		20			25			(14	)		80

Core pre-tax alternative investments marked to market, net of DAC		68			(55	)		(9	)		38			50			4			136
Income tax expense		14			(11	)		(2	)		8			11			1			29

Alternative investments marked to market through core operating earnings, net of DAC	$	54		$	(44	)	$	(7	)	$	30		$	39		$	3		$	107


Core operating earnings as reported
Property and Casualty Insurance operating earnings	$	205		$	116		$	181		$	199		$	194		$	502		$	554
Annuity operating earnings		121			42			67			104			100			230			294
Interest expense of parent holding companies		(24	)		(23	)		(17	)		(18	)		(17	)		(64	)		(50	)
Other expense		(28	)		(20	)		(20	)		(32	)		(22	)		(68	)		(74	)

Pre-tax core operating earnings as reported		274			115			211			253			255			600			724
Income tax expense		57			20			40			50			50			117			143

Core net operating earnings as reported	$	217		$	95		$	171		$	203		$	205		$	483		$	581


Average number of diluted shares		88.546			89.997			91.138			91.274			91.137			89.889			90.940

Diluted core net operating earnings per share:
Core net operating earnings before alternative investments marked to market per share	$	1.84		$	1.53		$	1.96		$	1.90		$	1.82		$	5.34		$	5.21
Core alternative investments marked to market through core operating earnings, net of DAC per share		0.61			(0.48	)		(0.08	)		0.32			0.43			0.03			1.18

Core net operating earnings as reported per share	$	2.45		$	1.05		$	1.88		$	2.22		$	2.25		$	5.37		$	6.39

Page 32

Appendix B

American Financial Group, Inc.

Fixed Maturities by Credit Rating & NAIC Designation by Type

9/30/2020

($ in millions)


	Fair Value by Type
By Credit Rating (a)	US Gov		Munis		Frgn Gov		RMBS		CMBS		CLOs		ABS		Corp/Oth		Total		% Total
Investment grade
AAA	$	216	$	1,967	$	180	$	1,231	$	697	$	3,385	$	1,982	$	161	$	9,819		20	%
AA		10		4,224		36		131		19		960		1,930		989		8,299		17	%
A		—		391		1		316		6		202		1,611		7,700		10,227		21	%
BBB		—		93		3		69		74		48		954		14,051		15,292		32	%

Subtotal - Investment grade		226		6,675		220		1,747		796		4,595		6,477		22,901		43,637		90	%
BB		—		9		—		61		32		—		11		700		813		2	%
B		—		—		—		106		—		—		28		157		291		1	%
CCC, CC, C		—		—		—		501		5		—		3		37		546		1	%
D		—		—		—		176		—		—		—		1		177		0	%

Subtotal - Non-Investment grade		—		9		—		844		37		—		42		895		1,827		4	%
Not Rated (b)		—		55		13		547		23		12		900		1,271		2,821		6	%

Total	$	226	$	6,739	$	233	$	3,138	$	856	$	4,607	$	7,419	$	25,067	$	48,285		100	%


	Fair Value by type
NAIC designation	US Gov		Munis		Frgn gov		RMBS		CMBS		CLOs		ABS		Corp/Oth		Total		% Total
1	$	209	$	6,636	$	195	$	3,033	$	808	$	4,546	$	6,460	$	9,815	$	31,702		68	%
2		—		93		—		36		14		48		901		14,205		15,297		29	%

Subtotal		209		6,729		195		3,069		822		4,594		7,361		24,020		46,999		97	%
3		—		9		—		23		31		—		18		735		816		2	%
4		—		—		—		11		—		—		28		217		256		1	%
5		—		—		—		20		3		12		3		77		115		0	%
6		16		—		—		5		—		—		5		10		36		0	%

Subtotal		16		9		—		59		34		12		54		1,039		1,223		3	%
No designation (c)		1		1		38		10		—		1		4		8		63		0	%

Total	$	226	$	6,739	$	233	$	3,138	$	856	$	4,607	$	7,419	$	25,067	$	48,285		100	%

(a)	If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a security, the rating displayed is the second lowest.

(b)	For ABS, 99% are NAIC 1.

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

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

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

Page 33

Appendix C

American Financial Group, Inc.

Fixed Maturities by Credit Rating & NAIC Designation by Type

12/31/2019

($ in millions)


	Fair Value by Type
By Credit Rating (a)	US Gov		Munis		Frgn Gov		RMBS		CMBS		CLOs		ABS		Corp/Oth		Total		% Total
Investment grade
AAA	$	204	$	2,086	$	134	$	1,184	$	773	$	2,921	$	1,529	$	179	$	9,010		19	%
AA		9		4,325		52		131		20		1,074		1,779		1,567		8,957		19	%
A		—		418		8		250		16		241		1,983		8,067		10,983		24	%
BBB		—		95		3		115		78		27		742		12,405		13,465		29	%

Subtotal - Investment grade		213		6,924		197		1,680		887		4,263		6,033		22,218		42,415		91	%
BB		—		9		—		74		32		—		13		596		724		2	%
B		—		—		1		97		5		—		4		76		183		0	%
CCC, CC, C		—		—		—		544		3		—		4		42		593		1	%
D		—		—		—		185		—		—		—		1		186		0	%

Subtotal - Non-Investment grade		—		9		1		900		40		—		21		715		1,686		3	%
Not Rated (b)		—		54		13		581		—		17		1,074		778		2,517		6	%

Total	$	213	$	6,987	$	211	$	3,161	$	927	$	4,280	$	7,128	$	23,711	$	46,618		100	%


	Fair Value by Type
NAIC designation	US Gov		Munis		Frgn gov		RMBS		CMBS		CLOs		ABS		Corp/Oth		Total		% Total
1	$	191	$	6,875	$	172	$	3,030	$	883	$	4,232	$	6,308	$	10,310	$	32,001		69	%
2		—		95		—		29		9		26		770		12,518		13,447		29	%

Subtotal		191		6,970		172		3,059		892		4,258		7,078		22,828		45,448		98	%
3		—		9		—		29		32		—		13		601		684		2	%
4		—		—		—		16		—		—		4		146		166		0	%
5		—		—		—		21		3		18		4		92		138		0	%
6		15		—		—		5		—		—		15		5		40		0	%

Subtotal		15		9		—		71		35		18		36		844		1,028		2	%
No designation (c)		7		8		39		31		—		4		14		39		142		0	%

Total	$	213	$	6,987	$	211	$	3,161	$	927	$	4,280	$	7,128	$	23,711	$	46,618		100	%

(a)	If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a security, the rating displayed is the second lowest.

(b)	87% are NAIC 1, 4% NAIC 2, 2% NAIC 3, 3% NAIC 4, 3% NAIC 5 and 1% NAIC 6.

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

Page 34

Appendix D

American Financial Group, Inc.

Corporate Securities by Credit Rating & NAIC Designation by Industry

9/30/2020

($ in millions)


	Fair Value By Industry
Credit Rating (a)	Banking		Insurance		Other Financials		Technology		Asset Managers		Energy		Healthcare		Consumer		REITs		Utilities		Capital Goods		Basic Industry		Media		Autos		Communications		Retailers		Restaurants, Hospitality & Leisure		Aviation		Other		Total		% Total
Investment Grade
AAA	$	—	$	—	$	—	$	26	$	—	$	—	$	21	$	32	$	—	$	—	$	—	$	—	$	—	$	—	$	80	$	—	$	—	$	—	$	2	$	161		1	%
AA		87		130		99		113		78		179		91		110		—		—		1		—		—		—		—		23		18		—		60		989		4	%
A		2,030		1,059		358		529		757		210		357		259		315		538		378		43		213		140		162		82		14		78		178		7,700		30	%
BBB		3,387		1,172		795		1,027		775		1,005		893		570		657		384		448		659		423		500		334		274		224		178		346		14,051		56	%

Subtotal		5,504		2,361		1,252		1,695		1,610		1,394		1,362		971		972		922		827		702		636		640		576		379		256		256		586		22,901		91	%

BB		41		23		30		67		10		142		56		69		36		9		31		30		3		45		3		52		36		16		1		700		3	%
B		—		1		—		5		—		13		14		16		84		—		—		9		—		1		—		1		8		5		—		157		1	%
CCC, CC, C		—		—		—		9		—		3		2		4		—		—		—		4		—		—		—		5		10		—		—		37		0	%
D		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		1		—		—		1		0	%

Subtotal		41		24		30		81		10		158		72		89		120		9		31		43		3		46		3		58		55		21		1		895		4	%

Not Rated (b)		15		13		960		27		—		6		29		75		32		—		5		10		52		—		—		24		10		—		13		1,271		5	%


Total	$	5,560	$	2,398	$	2,242	$	1,803	$	1,620	$	1,558	$	1,463	$	1,135	$	1,124	$	931	$	863	$	755	$	691	$	686	$	579	$	461	$	321	$	277	$	600	$	25,067		100	%


	Fair Value By Industry
NAIC designation	Banking		Insurance		Other Financials		Technology		Asset Managers		Energy		Healthcare		Consumer		REITs		Utilities		Capital Goods		Basic Industry		Media		Autos		Communications		Retailers		Restaurants, Hospitality & Leisure		Aviation		Other		Total		% Total
1	$	2,144	$	1,196	$	1,369	$	684	$	804	$	366	$	489	$	434	$	315	$	538	$	379	$	44	$	212	$	140	$	242	$	128	$	32	$	78	$	221	$	9,815		39	%
2		3,370		1,177		815		1,031		806		1,028		889		583		657		384		453		667		466		500		334		274		223		178		370		14,205		57	%

Subtotal		5,514		2,373		2,184		1,715		1,610		1,394		1,378		1,017		972		922		832		711		678		640		576		402		255		256		591		24,020		96	%

3		46		14		29		62		10		142		54		74		68		9		30		29		4		46		3		52		46		16		1		735		3	%
4		—		10		28		7		—		13		30		21		84		—		—		10		—		—		—		1		8		5		—		217		1	%
5		—		1		—		18		—		3		1		23		—		—		1		5		9		—		—		6		10		—		—		77		0	%
6		—		—		1		1		—		6		—		—		—		—		—		—		—		—		—		—		2		—		—		10		0	%

Subtotal		46		25		58		88		10		164		85		118		152		9		31		44		13		46		3		59		66		21		1		1,039		4	%

No designation (c)		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		8		8		0	%


Total	$	5,560	$	2,398	$	2,242	$	1,803	$	1,620	$	1,558	$	1,463	$	1,135	$	1,124	$	931	$	863	$	755	$	691	$	686	$	579	$	461	$	321	$	277	$	600	$	25,067		100	%

(a)	If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a security, the rating displayed is the second lowest.

(b)	For Other Financials, 96% are NAIC 1 and 97% are NAIC 1 or 2.

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

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

Page 35

Appendix E

American Financial Group, Inc.

Corporate Securities by Credit Rating & NAIC Designation by Industry

12/31/2019

($ in millions)


	Fair Value By Industry
Credit Rating (a)	Banking		Insurance		Other Financials		Technology		Asset Managers		Energy		Healthcare		Consumer		REITs		Utilities		Capital Goods		Basic Industry		Media		Autos		Communications		Retailers		Restaurants, Hospitality & Leisure		Aviation		Other		Total		% Total
Investment Grade
AAA	$	—	$	—	$	—	$	48	$	—	$	—	$	20	$	29	$	—	$	—	$	—	$	—	$	—	$	—	$	78	$	—	$	—	$	—	$	4	$	179		1	%
AA		219		308		72		146		205		204		98		114		—		—		1		—		—		35		—		22		20		46		77		1,567		7	%
A		2,482		921		326		471		775		260		425		258		352		450		333		44		112		278		176		89		18		166		131		8,067		34	%
BBB		2,691		1,034		656		862		576		1,199		753		673		845		291		424		556		454		334		264		209		206		133		245		12,405		52	%

Subtotal		5,392		2,263		1,054		1,527		1,556		1,663		1,296		1,074		1,197		741		758		600		566		647		518		320		244		345		457		22,218		94	%

BB		3		15		29		75		17		102		50		89		75		19		11		46		3		4		4		—		44		10		—		596		3	%
B		—		1		—		4		—		—		18		22		—		—		—		16		5		—		—		—		10		—		—		76		0	%
CCC, CC, C		—		—		1		9		—		1		—		2		—		—		—		—		—		—		—		12		17		—		—		42		0	%
D		—		—		—		—		—		1		—		—		—		—		—		—		—		—		—		—		—		—		—		1		0	%

Subtotal		3		16		30		88		17		104		68		113		75		19		11		62		8		4		4		12		71		10		—		715		3	%

Not Rated (b)		33		14		486		1		7		2		34		97		20		—		5		8		50		—		2		13		4		—		2		778		3	%


Total	$	5,428	$	2,293	$	1,570	$	1,616	$	1,580	$	1,769	$	1,398	$	1,284	$	1,292	$	760	$	774	$	670	$	624	$	651	$	524	$	345	$	319	$	355	$	459	$	23,711		100	%


	Fair Value By Industry
NAIC designation	Banking		Insurance		Other Financials		Technology		Asset Managers		Energy		Healthcare		Consumer		REITs		Utilities		Capital Goods		Basic Industry		Media		Autos		Communications		Retailers		Restaurants, Hospitality & Leisure		Aviation		Other		Total		% Total
1	$	2,712	$	1,235	$	842	$	663	$	950	$	440	$	562	$	448	$	349	$	449	$	330	$	64	$	112	$	348	$	253	$	124	$	22	$	213	$	194	$	10,310		43	%
2		2,712		1,031		675		862		606		1,222		767		688		859		291		428		552		454		298		263		209		224		129		248		12,518		53	%

Subtotal		5,424		2,266		1,517		1,525		1,556		1,662		1,329		1,136		1,208		740		758		616		566		646		516		333		246		342		442		22,828		96	%

3		3		15		28		66		17		103		50		98		84		19		10		38		3		4		4		—		46		13		—		601		3	%
4		—		11		13		6		—		—		16		27		—		—		—		16		47		—		—		—		10		—		—		146		1	%
5		—		—		11		16		7		1		2		17		—		—		1		—		7		—		2		11		17		—		—		92		0	%
6		—		—		—		1		—		3		—		—		—		—		—		—		—		—		—		1		—		—		—		5		0	%

Subtotal		3		26		52		89		24		107		68		142		84		19		11		54		57		4		6		12		73		13		—		844		4	%

No designation (c)		1		1		1		2		—		—		1		6		—		1		5		—		1		1		2		—		—		—		17		39		0	%


Total	$	5,428	$	2,293	$	1,570	$	1,616	$	1,580	$	1,769	$	1,398	$	1,284	$	1,292	$	760	$	774	$	670	$	624	$	651	$	524	$	345	$	319	$	355	$	459	$	23,711		100	%

(a)	If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a security, the rating displayed is the second lowest.

(b)	74% are NAIC 1, 9% NAIC 2, 3% NAIC 3, 8% NAIC 4, 6% NAIC 5.

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

Page 36

Appendix F

American Financial Group, Inc.

Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type

9/30/2020

($ in millions)


	Fair Value By Collateral Type
Credit Rating (a)	Secured Financing (c)		TruPS		Whole Business		Railcar		Commercial Real Estate		Single Family Rental		Aircraft		Mortgage Servicer Receivables		Consumer Loans		Life Ins/ Structured Settlements		Other		Total		% Total
Investment Grade
AAA	$	—	$	—	$	—	$	—	$	870	$	467	$	—	$	74	$	61	$	159	$	351	$	1,982		27	%
AA		301		1,036		148		—		33		119		—		—		92		—		201		1,930		26	%
A		78		348		22		597		—		11		192		—		30		1		332		1,611		22	%
BBB		10		43		577		12		—		—		132		114		—		2		64		954		13	%

Subtotal		389		1,427		747		609		903		597		324		188		183		162		948		6,477		88	%

BB		—		1		—		—		—		—		5		—		—		5		—		11		0	%
B		—		—		—		—		—		—		24		—		—		—		4		28		0	%
CCC, CC, C		—		—		—		—		—		—		—		—		—		3		—		3		0	%
D		—		—		—		—		—		—		—		—		—		—		—		—		0	%

Subtotal		—		1		—		—		—		—		29		—		—		8		4		42		0	%

Not Rated (b)		891		—		—		—		—		—		9		—		—		—		—		900		12	%


Total	$	1,280	$	1,428	$	747	$	609	$	903	$	597	$	362	$	188	$	183	$	170	$	952	$	7,419		100	%


	Fair Value By Collateral Type
NAIC designation	Secured Financing (c)		TruPS		Whole Business		Railcar		Commercial Real Estate		Single Family Rental		Aircraft		Mortgage Servicer Receivables		Consumer Loans		Life Ins/ Structured Settlements		Other		Total		% Total
1	$	1,270	$	1,384	$	170	$	597	$	903	$	597	$	191	$	121	$	183	$	160	$	884	$	6,460		87	%
2		10		43		577		12		—		—		125		67		—		2		65		901		12	%

Subtotal		1,280		1,427		747		609		903		597		316		188		183		162		949		7,361		99	%

3		—		1		—		—		—		—		12		—		—		5		—		18		0	%
4		—		—		—		—		—		—		25		—		—		—		3		28		1	%
5		—		—		—		—		—		—		—		—		—		3		—		3		0	%
6		—		—		—		—		—		—		5		—		—		—		—		5		0	%

Subtotal		—		1		—		—		—		—		42		—		—		8		3		54		1	%

No designation (d)		—		—		—		—		—		—		4		—		—		—		—		4		0	%


Total	$	1,280	$	1,428	$	747	$	609	$	903	$	597	$	362	$	188	$	183	$	170	$	952	$	7,419		100	%

(a)	If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a security, the rating displayed is the second lowest.

(b)	99% of not rated securities are NAIC 1.

(c)	Secured Financings are privately placed funding agreements secured by assets including Single Family Rental properties, Bank Loans, Bank Trust Preferreds, Commercial and Residential Mortgages.

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

Page 37

Appendix G

American Financial Group, Inc.

Asset-Backed Securities by Credit Rating & NAIC Designation by Collateral Type

12/31/2019

($ in millions)


	Fair Value By Collateral Type
Credit Rating (a)	Secured Financing (c)		TruPS		Whole Business		Railcar		Commercial Real Estate		Single Family Rental		Aircraft		Mortgage Servicer Receivables		Consumer Loans		Life Ins/ Structured Settlements		Other		Total		% Total
Investment Grade
AAA	$	—	$	—	$	—	$	—	$	460	$	367	$	—	$	167	$	64	$	157	$	314	$	1,529		22	%
AA		311		990		92		—		52		106		—		34		110		—		84		1,779		25	%
A		78		326		22		602		—		11		442		—		17		3		482		1,983		28	%
BBB		10		53		599		—		—		—		—		38		—		1		41		742		10	%

Subtotal		399		1,369		713		602		512		484		442		239		191		161		921		6,033		85	%

BB		—		1		—		—		—		—		7		—		—		5		—		13		0	%
B		—		—		—		—		—		—		—		—		—		—		4		4		0	%
CCC, CC, C		—		—		—		—		—		—		—		—		—		3		1		4		0	%
D		—		—		—		—		—		—		—		—		—		—		—		—		0	%

Subtotal		—		1		—		—		—		—		7		—		—		8		5		21		0	%

Not Rated (b)		1,060		—		—		—		—		—		14		—		—		—		—		1,074		15	%


Total	$	1,459	$	1,370	$	713	$	602	$	512	$	484	$	463	$	239	$	191	$	169	$	926	$	7,128		100	%


	Fair Value By Collateral Type
NAIC designation	Secured Financing (c)		TruPS		Whole Business		Railcar		Commercial Real Estate		Single Family Rental		Aircraft		Mortgage Servicer Receivables		Consumer Loans		Life Ins/ Structured Settlements		Other		Total		% Total
1	$	1,421	$	1,314	$	114	$	601	$	511	$	482	$	442	$	201	$	189	$	159	$	874	$	6,308		89	%
2		38		53		599		—		—		—		—		38		—		2		40		770		11	%

Subtotal		1,459		1,367		713		601		511		482		442		239		189		161		914		7,078		100	%

3		—		1		—		—		—		—		7		—		—		5		—		13		0	%
4		—		—		—		—		—		—		—		—		—		—		4		4		0	%
5		—		—		—		—		—		—		—		—		—		3		1		4		0	%
6		—		—		—		—		—		—		14		—		—		—		1		15		0	%

Subtotal		—		1		—		—		—		—		21		—		—		8		6		36		0	%

No designation (d)		—		2		—		1		1		2		—		—		2		—		6		14		0	%


Total	$	1,459	$	1,370	$	713	$	602	$	512	$	484	$	463	$	239	$	191	$	169	$	926	$	7,128		100	%

(a)	If two agencies rate a security, the rating displayed above is the lower of the two; if three or more agencies rate a security, the rating displayed is the second lowest.

(b)	99% of not rated securities are NAIC 1 or 2.

(c)	Secured Financings are privately placed funding agreements secured by assets including Single Family Rental properties, Bank Loans, Bank Trust Preferreds, Commercial and Residential Mortgages.

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

Page 38

Appendix H

American Financial Group, Inc.

Real Estate-Related Investments

9/30/2020

($ in millions)

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


Investment Type	Book Value		% of Book Value			Occupancy (b)			Collection Rate (c)

Multi-family	$	760		80	%		96	%		98	%
Fund Investments		96		10	%		—			—
Student Housing		28		3	%		77	%		94	%
Land - Development		20		2	%		—			—
QOZ Fund - Development		16		2	%		—			—
Office		15		2	%		88	%		100	%
Hospitality		12		1	%		—			—

Total	$	947		100	%

Real Estate


Property Type	Book Value		% of Book Value			Debt

Marinas	$	62		38	%	$	—
Resort & Marina		56		34	%		—
Hotel		23		14	%		—
Office Building		18		11	%		—
Land		5		3	%		—

Total	$	164		100	%	$	—

Mortgage Loans


Property Type	Book Value		% of Book Value			Loan To Value (d)

Hospitality		616		42	%		55	%
Multifamily		547		37	%		64	%
Office		250		17	%		64	%
Retail		46		3	%		50	%
Other		22		1	%		58	%

Total	$	1,481		100	%		60	%

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

(a)	Total investments accounted for using the equity method is $1.84 billion, the amounts presented in this table only relate to real estate funds/investments.

(b)	Occupancy as of 9/30/20

(c)	Collections for July - September

(d)	Based on most recent property appraisals, the vast majority of which are prior to March 2020.

Page 39

Appendix I

American Financial Group, Inc.

Real Estate-Related Investments

12/31/2019

($ in millions)

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


Investment Type	Book Value		% of Book Value			Occupancy (b)			Collection Rate (c)

Multi-family	$	589		77	%		96	%		99	%
Fund Investments		100		13	%
Student Housing		30		4	%		94	%		98	%
Land - Development		20		2	%
QOZ Fund - Development		16		2	%
Office		14		2	%		90	%		100	%

Total	$	769		100	%

Real Estate


Property Type	Book Value		% of Book Value			Debt

Marinas	$	63		37	%	$	—
Resort & Marina		59		35	%		—
Hotel		22		13	%		—
Office Building		20		12	%		—
Land		5		3	%		—

Total	$	169		100	%	$	—

Mortgage Loans


Property Type	Book Value		% of Book Value			Loan To Value

Hospitality		575		43	%		56	%
Multifamily		392		30	%		62	%
Office		253		19	%		65	%
Retail		61		4	%		59	%
Other		48		4	%		50	%

Total	$	1,329		100	%		59	%

(a)	Total investments accounted for using the equity method is $1.69 billion, the amounts presented in this table only relate to real estate funds/investments.

(b)	Occupancy as of 12/31/19

(c)	Collections for October - December

Page 40

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