American Financial (AFG) Reports Q2 Earnings: What Key Metrics Have to Say
American Financial Group (AFG) reported $1.8 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 4.1%. EPS of $2.56 for the same period compares to $2.38 a year ago.
The reported revenue represents a surprise of -10.72% over the Zacks Consensus Estimate of $2.02 billion. With the consensus EPS estimate being $2.53, the EPS surprise was +1.19%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how American Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Property and Casualty - Loss and LAE Ratio
: 59.1% versus the four-analyst average estimate of 60.1%.Property and Transportation - Underwriting Expense Ratio
: 28.9% versus the four-analyst average estimate of 29.1%.Property and Transportation - Loss and LAE Ratio
: 64% compared to the 66% average estimate based on four analysts.Property and Transportation - Combined Ratio
: 92.6% versus 95.1% estimated by four analysts on average.Property and Casualty - Combined Ratio - Specialty
: 90.5% versus the four-analyst average estimate of 91%.Revenues- P&C insurance net earned premiums
: $1.59 billion versus $1.70 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.Revenues- Net investment income
: $188 million versus the five-analyst average estimate of $189.49 million. The reported number represents a year-over-year change of -5.1%.Specialty Casualty- Net earned premium
: $739 million compared to the $752.57 million average estimate based on three analysts. The reported number represents a change of +3.9% year over year.Property and Transportation- Net earned premium
: $543 million versus the three-analyst average estimate of $626.71 million. The reported number represents a year-over-year change of +1.7%.Specialty Financial- Net earned premium
: $241 million versus $263.08 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +23.6% change.Revenues- Other income (loss)
: $27 million compared to the $36.58 million average estimate based on two analysts. The reported number represents a change of +8% year over year.Other Specialty- Net earned premium
: $62 million compared to the $71.65 million average estimate based on two analysts. The reported number represents a change of -7.5% year over year.
View all Key Company Metrics for American Financial here>>>
Shares of American Financial have returned +2.1% over the past month versus the Zacks S&P 500 composite's -6.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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