American Financial (AFG) 8-K American Financial Group, Inc. Announces Third Quarter Results

Exhibit 99.2

American Financial Group, Inc.   Investor Supplement - Third Quarter 2019   October 29, 2019   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 2019

Section	Page
Table of Contents - Investor Supplement - Third Quarter 2019		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
Detail of Annuity Benefits Expense		13
Core Net Spread on Fixed Annuities - New Method		14
Statutory Annuity Premiums		15
Fixed Annuity Benefits Accumulated (GAAP)		16
Guaranteed Minimum Interest Rate Analysis		17
AnnuityNon-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 InvestmentsMarked-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. Fixed Maturities - Credit Rating by Type		33

Page 2

American Financial Group, Inc. Financial Highlights (in millions, except per share information)

	Three Months Ended															Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			09/30/19			09/30/18
Highlights
Net earnings (loss)	$	147		$	210		$	329		$	(29	)	$	204		$	686		$	559
Core net operating earnings		205			192			184			159			198			581			602
Total assets		69,067			67,697			66,132			63,456			64,190			69,067			64,190
Adjusted shareholders’ equity (a)		5,376			5,260			5,201			4,898			5,103			5,376			5,103
Property and Casualty net written premiums		1,618			1,264			1,147			1,208			1,456			4,029			3,815
Annuity statutory premiums		1,077			1,349			1,395			1,482			1,378			3,821			3,925
Per share data
Diluted earnings per share	$	1.62		$	2.31		$	3.63		$	(0.33	)	$	2.26		$	7.55		$	6.17
Core net operating earnings per share		2.25			2.12			2.02			1.75			2.19			6.39			6.65
Adjusted book value per share (a)		59.65			58.49			58.02			54.86			57.22			59.65			57.22
Cash dividends per common share		0.4000			1.9000			0.4000			1.9000			0.3500			2.7000			2.5500
Financial ratios
Annualized return on equity (b)		11.0	%		16.0	%		25.9	%		(2.3	%)		16.3	%		17.6	%		15.3	%
Annualized core operating return on equity (b)		15.3	%		14.7	%		14.5	%		12.6	%		15.8	%		14.9	%		16.5	%
Property and Casualty combined ratio - Specialty:
Loss & LAE ratio		63.1	%		60.2	%		58.9	%		62.7	%		64.3	%		60.9	%		60.8	%
Underwriting expense ratio		30.9	%		34.8	%		33.6	%		29.3	%		31.4	%		32.9	%		33.0	%
Combined ratio - Specialty		94.0	%		95.0	%		92.5	%		92.0	%		95.7	%		93.8	%		93.8	%
Net spread on fixed annuities:
Net interest spread on fixed annuities - new method		1.97	%		2.08	%		2.01	%		1.94	%		2.08	%		2.02	%		2.22	%
Net spread earned on fixed annuities:
Core operating - new method		1.06	%		1.11	%		1.08	%		0.98	%		1.16	%		1.08	%		1.28	%
Non-core - new method:
Previously reported in core operating		n/a			n/a			(0.12	%)		(0.73	%)		0.19	%		(0.04	%)		0.07	%
Currently reported innon-core		(0.28	%)		(0.35	%)		n/a			n/a			n/a			(0.21	%)		n/a

(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
	9/30/19			6/30/19			3/31/19			12/31/18			09/30/18			09/30/19			09/30/18
Property and Casualty Insurance
Underwriting profit	$	72		$	59		$	87		$	101		$	56		$	218		$	219
Net investment income		124			124			104			115			108			352			323
Other income (expense)		(2	)		(8	)		(6	)		(2	)		(6	)		(16	)		(16	)
Property and Casualty Insurance operating earnings		194			175			185			214			158			554			526
Annuity earnings		100			104			90			20			117			294			341
Interest expense of parent holding companies		(17	)		(17	)		(16	)		(16	)		(15	)		(50	)		(46	)
Other expense		(22	)		(25	)		(27	)		(13	)		(22	)		(74	)		(81	)
Pre-tax core operating earnings		255			237			232			205			238			724			740
Income tax expense		50			45			48			46			40			143			138
Core net operating earnings		205			192			184			159			198			581			602
Non-core items, net of tax:
Realized gains (losses) on securities		(14	)		45			145			(188	)		27			176			(22	)
Annuitynon-core earnings (losses), net of taxes		(21	)		(27	)		—			—			—			(48	)		—
Special A&E charges:
Property and Casualty Insurancerun-off operations		(14	)		—			—			—			(14	)		(14	)		(14	)
Former Railroad and Manufacturing operations		(9	)		—			—			—			(7	)		(9	)		(7	)
Net earnings	$	147		$	210		$	329		$	(29	)	$	204		$	686		$	559

Page 4

American Financial Group, Inc. Earnings Per Share Summary (in millions, except per share information)

	Three Months Ended														Nine Months Ended
	9/30/19			6/30/19			3/31/19		12/31/18			9/30/18			09/30/19			09/30/18
Core net operating earnings	$	205		$	192		$	184	$	159		$	198		$	581		$	602
Net earnings	$	147		$	210		$	329	$	(29	)	$	204		$	686		$	559
Average number of diluted shares - core		91.137			90.981			90.695		90.668			90.731			90.940			90.610
Average number of diluted shares - net		91.137			90.981			90.695		89.278			90.731			90.940			90.610
Diluted earnings per share:
Core net operating earnings per share	$	2.25		$	2.12		$	2.02	$	1.75		$	2.19		$	6.39		$	6.65
Realized gains (losses) on securities		(0.15	)		0.48			1.61		(2.08	)		0.31			1.93			(0.24	)
Annuitynon-core earnings (losses), net of taxes		(0.23	)		(0.29	)		—		—			—			(0.52	)		—
Special A&E charges:
Property and Casualty Insurancerun-off operations		(0.15	)		—			—		—			(0.16	)		(0.15	)		(0.16	)
Former Railroad and Manufacturing operations		(0.10	)		—			—		—			(0.08	)		(0.10	)		(0.08	)
Diluted earnings per share	$	1.62		$	2.31		$	3.63	$	(0.33	)	$	2.26		$	7.55		$	6.17

Page 5

American Financial Group, Inc. Property and Casualty Insurance - Summary Underwriting Results (GAAP) ($ in millions)

	Three Months Ended															Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			09/30/19			09/30/18
Property and Transportation	$	38		$	4		$	39		$	64		$	—		$	81		$	56
Specialty Casualty		23			47			36			22			49			106			119
Specialty Financial		26			21			13			20			9			60			46
Other Specialty		1			(12	)		—			(4	)		(3	)		(11	)		(1	)
Underwriting profit - Specialty		88			60			88			102			55			236			220
Other core charges, included in loss and LAE		(16	)		(1	)		(1	)		(1	)		1			(18	)		(1	)
Underwriting profit - Core		72			59			87			101			56			218			219
Special A&E charges, included in loss and LAE		(18	)		—			—			—			(18	)		(18	)		(18	)
Underwriting profit (loss) - Property and Casualty Insurance	$	54		$	59		$	87		$	101		$	38		$	200		$	201
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	(1	)	$	3		$	—		$	3
Catastrophe loss		22			12			12			39			35			46			64
Total current accident year catastrophe losses	$	22		$	12		$	12		$	38		$	38		$	46		$	67
Prior year loss reserve development (favorable) / adverse	$	(12	)	$	(41	)	$	(45	)	$	(61	)	$	(31	)	$	(98	)	$	(131	)
Combined ratio:
Property and Transportation		93.5	%		99.1	%		89.0	%		86.5	%		100.0	%		93.8	%		95.5	%
Specialty Casualty		96.5	%		92.5	%		94.2	%		96.5	%		92.1	%		94.5	%		93.3	%
Specialty Financial		83.7	%		85.6	%		91.4	%		85.5	%		94.4	%		86.8	%		90.0	%
Other Specialty		98.5	%		135.1	%		98.9	%		112.3	%		103.0	%		110.2	%		100.3	%
Combined ratio - Specialty		94.0	%		95.0	%		92.5	%		92.0	%		95.7	%		93.8	%		93.8	%
Other core charges		1.1	%		0.1	%		0.1	%		0.0	%		0.0	%		0.5	%		0.0	%
Special A&E charges		1.2	%		0.0	%		0.0	%		0.0	%		1.5	%		0.4	%		0.6	%
Combined ratio		96.3	%		95.1	%		92.6	%		92.0	%		97.2	%		94.7	%		94.4	%
Combined ratio excl. catastrophe and prior year development		95.5	%		97.5	%		95.4	%		93.7	%		96.8	%		96.1	%		96.3	%
Loss and LAE components - property and casualty insurance
Current accident year, excluding catastrophe loss		64.6	%		62.7	%		61.8	%		64.4	%		65.4	%		63.2	%		63.3	%
Prior accident year loss reserve development		(0.8	%)		(3.3	%)		(3.9	%)		(4.7	%)		(2.2	%)		(2.6	%)		(3.7	%)
Current accident year catastrophe loss		1.6	%		0.9	%		1.1	%		3.0	%		2.6	%		1.2	%		1.8	%
Loss and LAE ratio		65.4	%		60.3	%		59.0	%		62.7	%		65.8	%		61.8	%		61.4	%

Page 6

American Financial Group, Inc. Specialty - Underwriting Results (GAAP) ($ in millions)

	Three Months Ended															Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			09/30/19			09/30/18
Gross written premiums	$	2,351		$	1,664		$	1,535		$	1,613		$	2,104		$	5,550		$	5,227
Ceded reinsurance premiums		(733	)		(400	)		(388	)		(405	)		(648	)		(1,521	)		(1,412	)
Net written premiums		1,618			1,264			1,147			1,208			1,456			4,029			3,815
Change in unearned premiums		(176	)		(64	)		26			62			(129	)		(214	)		(220	)
Net earned premiums		1,442			1,200			1,173			1,270			1,327			3,815			3,595
Loss and LAE		910			722			691			796			855			2,323			2,187
Underwriting expense		444			418			394			372			417			1,256			1,188
Underwriting profit	$	88		$	60		$	88		$	102		$	55		$	236		$	220
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	(1	)	$	3		$	—		$	3
Catastrophe loss		22			12			12			39			35			46			64
Total current accident year catastrophe losses	$	22		$	12		$	12		$	38		$	38		$	46		$	67
Prior year loss reserve development (favorable) / adverse	$	(46	)	$	(42	)	$	(46	)	$	(61	)	$	(49	)	$	(134	)	$	(151	)
Combined ratio:
Loss and LAE ratio		63.1	%		60.2	%		58.9	%		62.7	%		64.3	%		60.9	%		60.8	%
Underwriting expense ratio		30.9	%		34.8	%		33.6	%		29.3	%		31.4	%		32.9	%		33.0	%
Combined ratio		94.0	%		95.0	%		92.5	%		92.0	%		95.7	%		93.8	%		93.8	%
Combined ratio excl. catastrophe and prior year development		95.5	%		97.5	%		95.4	%		93.7	%		96.8	%		96.1	%		96.3	%
Loss and LAE components:
Current accident year, excluding catastrophe loss		64.6	%		62.7	%		61.8	%		64.4	%		65.4	%		63.2	%		63.3	%
Prior accident year loss reserve development		(3.1	%)		(3.4	%)		(4.0	%)		(4.7	%)		(3.7	%)		(3.5	%)		(4.3	%)
Current accident year catastrophe loss		1.6	%		0.9	%		1.1	%		3.0	%		2.6	%		1.2	%		1.8	%
Loss and LAE ratio		63.1	%		60.2	%		58.9	%		62.7	%		64.3	%		60.9	%		60.8	%

Page 7

American Financial Group, Inc. Property and Transportation - Underwriting Results (GAAP) ($ in millions)

	Three Months Ended															Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			09/30/19			09/30/18
Gross written premiums	$	1,113		$	579		$	439		$	651		$	953		$	2,131		$	1,994
Ceded reinsurance premiums		(452	)		(157	)		(95	)		(203	)		(393	)		(704	)		(688	)
Net written premiums		661			422			344			448			560			1,427			1,306
Change in unearned premiums		(78	)		(43	)		17			31			(34	)		(104	)		(56	)
Net earned premiums		583			379			361			479			526			1,323			1,250
Loss and LAE		421			259			225			327			406			905			865
Underwriting expense		124			116			97			88			120			337			329
Underwriting profit	$	38		$	4		$	39		$	64		$	—		$	81		$	56
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	(1	)	$	1		$	—		$	1
Catastrophe loss		8			8			9			(1	)		12			25			27
Total current accident year catastrophe losses	$	8		$	8		$	9		$	(2	)	$	13		$	25		$	28
Prior year loss reserve development (favorable) / adverse	$	(17	)	$	(6	)	$	(26	)	$	(7	)	$	(4	)	$	(49	)	$	(43	)
Combined ratio:
Loss and LAE ratio		72.1	%		68.4	%		62.2	%		68.2	%		77.1	%		68.3	%		69.2	%
Underwriting expense ratio		21.4	%		30.7	%		26.8	%		18.3	%		22.9	%		25.5	%		26.3	%
Combined ratio		93.5	%		99.1	%		89.0	%		86.5	%		100.0	%		93.8	%		95.5	%
Combined ratio excl. catastrophe and prior year development		94.9	%		98.7	%		93.6	%		88.2	%		98.5	%		95.6	%		96.8	%
Loss and LAE components:
Current accident year, excluding catastrophe loss		73.5	%		68.0	%		66.8	%		69.9	%		75.6	%		70.1	%		70.5	%
Prior accident year loss reserve development		(2.8	%)		(1.6	%)		(7.2	%)		(1.5	%)		(0.8	%)		(3.7	%)		(3.5	%)
Current accident year catastrophe loss		1.4	%		2.0	%		2.6	%		(0.2	%)		2.3	%		1.9	%		2.2	%
Loss and LAE ratio		72.1	%		68.4	%		62.2	%		68.2	%		77.1	%		68.3	%		69.2	%

Page 8

American Financial Group, Inc. Specialty Casualty - Underwriting Results (GAAP) ($ in millions)

	Three Months Ended															Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			09/30/19			09/30/18
Gross written premiums	$	1,031		$	896		$	912		$	778		$	956		$	2,839		$	2,667
Ceded reinsurance premiums		(287	)		(234	)		(286	)		(197	)		(261	)		(807	)		(739	)
Net written premiums		744			662			626			581			695			2,032			1,928
Change in unearned premiums		(86	)		(28	)		3			32			(79	)		(111	)		(138	)
Net earned premiums		658			634			629			613			616			1,921			1,790
Loss and LAE		416			380			388			389			364			1,184			1,087
Underwriting expense		219			207			205			202			203			631			584
Underwriting profit	$	23		$	47		$	36		$	22		$	49		$	106		$	119
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	1		$	—		$	1
Catastrophe loss		10			1			1			28			11			12			17
Total current accident year catastrophe losses	$	10		$	1		$	1		$	28		$	12		$	12		$	18
Prior year loss reserve development (favorable) / adverse	$	(19	)	$	(31	)	$	(13	)	$	(52	)	$	(37	)	$	(63	)	$	(87	)
Combined ratio:
Loss and LAE ratio		63.1	%		60.0	%		61.6	%		63.5	%		59.2	%		61.6	%		60.7	%
Underwriting expense ratio		33.4	%		32.5	%		32.6	%		33.0	%		32.9	%		32.9	%		32.6	%
Combined ratio		96.5	%		92.5	%		94.2	%		96.5	%		92.1	%		94.5	%		93.3	%
Combined ratio excl. catastrophe and prior year development		97.8	%		97.1	%		96.3	%		100.3	%		96.4	%		97.1	%		97.2	%
Loss and LAE components:
Current accident year, excluding catastrophe loss		64.4	%		64.6	%		63.7	%		67.3	%		63.5	%		64.2	%		64.6	%
Prior accident year loss reserve development		(2.9	%)��		(4.7	%)		(2.2	%)		(8.5	%)		(6.0	%)		(3.2	%)		(4.8	%)
Current accident year catastrophe loss		1.6	%		0.1	%		0.1	%		4.7	%		1.7	%		0.6	%		0.9	%
Loss and LAE ratio		63.1	%		60.0	%		61.6	%		63.5	%		59.2	%		61.6	%		60.7	%

Page 9

American Financial Group, Inc. Specialty Financial - Underwriting Results (GAAP) ($ in millions)

	Three Months Ended															Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			09/30/19			09/30/18
Gross written premiums	$	207		$	189		$	184		$	184		$	195		$	580		$	566
Ceded reinsurance premiums		(40	)		(40	)		(39	)		(42	)		(42	)		(119	)		(106	)
Net written premiums		167			149			145			142			153			461			460
Change in unearned premiums		(6	)		2			1			(1	)		(4	)		(3	)		(3	)
Net earned premiums		161			151			146			141			149			458			457
Loss and LAE		47			49			56			51			60			152			174
Underwriting expense		88			81			77			70			80			246			237
Underwriting profit	$	26		$	21		$	13		$	20		$	9		$	60		$	46
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	1		$	—		$	1
Catastrophe loss		3			3			2			10			12			8			18
Total current accident year catastrophe losses	$	3		$	3		$	2		$	10		$	13		$	8		$	19
Prior year loss reserve development (favorable) / adverse	$	(9	)	$	(9	)	$	(6	)	$	(7	)	$	(8	)	$	(24	)	$	(19	)
Combined ratio:
Loss and LAE ratio		29.7	%		32.3	%		38.2	%		36.4	%		40.1	%		33.3	%		38.0	%
Underwriting expense ratio		54.0	%		53.3	%		53.2	%		49.1	%		54.3	%		53.5	%		52.0	%
Combined ratio		83.7	%		85.6	%		91.4	%		85.5	%		94.4	%		86.8	%		90.0	%
Combined ratio excl. catastrophe and prior year development		87.2	%		89.7	%		94.3	%		83.6	%		91.5	%		90.3	%		90.2	%
Loss and LAE components:
Current accident year, excluding catastrophe loss		33.2	%		36.4	%		41.1	%		34.5	%		37.2	%		36.8	%		38.2	%
Prior accident year loss reserve development		(5.5	%)		(5.9	%)		(4.3	%)		(5.2	%)		(5.1	%)		(5.3	%)		(4.1	%)
Current accident year catastrophe loss		2.0	%		1.8	%		1.4	%		7.1	%		8.0	%		1.8	%		3.9	%
Loss and LAE ratio		29.7	%		32.3	%		38.2	%		36.4	%		40.1	%		33.3	%		38.0	%

Page 10

American Financial Group, Inc. Other Specialty - Underwriting Results (GAAP) ($ in millions)

	Three Months Ended															Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			09/30/19			09/30/18
Gross written premiums	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Ceded reinsurance premiums		46			31			32			37			48			109			121
Net written premiums		46			31			32			37			48			109			121
Change in unearned premiums		(6	)		5			5			—			(12	)		4			(23	)
Net earned premiums		40			36			37			37			36			113			98
Loss and LAE		26			34			22			29			25			82			61
Underwriting expense		13			14			15			12			14			42			38
Underwriting profit (loss)	$	1		$	(12	)	$	—		$	(4	)	$	(3	)	$	(11	)	$	(1	)
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe loss		1			—			—			2			—			1			2
Total current accident year catastrophe losses	$	1		$	—		$	—		$	2		$	—		$	1		$	2
Prior year loss reserve development (favorable) / adverse	$	(1	)	$	4		$	(1	)	$	5		$	—		$	2		$	(2	)
Combined ratio:
Loss and LAE ratio		64.0	%		96.0	%		59.7	%		76.5	%		65.5	%		72.7	%		62.5	%
Underwriting expense ratio		34.5	%		39.1	%		39.2	%		35.8	%		37.5	%		37.5	%		37.8	%
Combined ratio		98.5	%		135.1	%		98.9	%		112.3	%		103.0	%		110.2	%		100.3	%
Combined ratio excl. catastrophe and prior year development		99.0	%		123.4	%		100.8	%		95.6	%		103.7	%		107.3	%		100.2	%

Page 11

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

	Three Months Ended												Nine Months Ended
	9/30/19		6/30/19		3/31/19			12/31/18			9/30/18		09/30/19			09/30/18
Net investment income	$	421	$	420	$	406		$	401		$	385	$	1,247		$	1,123
Investments marked to market through core operating earnings		27		31		29			18			28		87			96
Guaranteed withdrawal benefit fees		17		17		16			17			16		50			48
Policy charges and other miscellaneous income		10		10		11			10			11		31			32
Total revenues		475		478		462			446			440		1,415			1,299
Annuity benefits		276		272		266			260			248		814			703
Acquisition expenses		64		67		60			64			60		191			178
Other expenses		35		35		35			36			32		105			95
Total costs and expenses		375		374		361			360			340		1,110			976
Pretax Annuity core operating earnings - new method	$	100	$	104	$	101		$	86		$	100	$	305		$	323
Other amounts previously reported as core operating, net (a)		n/a		n/a		(11	)		(66	)		17		(11	)		18
Pretax Annuity core operating earnings - as reported	$	100	$	104	$	90		$	20		$	117	$	294		$	341

(a) “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 12

American Financial Group, Inc. Detail of Annuity Benefits Expense ($ in millions)

	Three Months Ended															Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			09/30/19			09/30/18
Detail of annuity benefits expense:
Cost of funds:
Amortization of options (a)	$	149		$	146		$	141		$	141		$	132		$	436		$	365
Traditional fixed annuities		62			61			59			58			59			182			176
Fixed component of fixed-indexed annuities		24			23			22			21			20			69			57
Immediate annuities		6			6			6			6			6			18			18
Pension risk transfer (PRT)		2			1			1			1			—			4			—
Federal Home Loan Bank		7			7			7			6			5			21			14
Total cost of funds - new method		250			244			236			233			222			730			630
Guaranteed withdrawal benefit reserve		21			20			19			19			22			60			55
Amortization of sales inducements		3			4			4			5			4			11			14
Change in expected death and annuitization reserve and other		2			4			7			3			—			13			4
Total other annuity benefits		26			28			30			27			26			84			73
Total annuity benefits expense—new method	$	276		$	272		$	266		$	260		$	248		$	814		$	703
(a) Amortizaton of options, net of DAC and reserve offsets:
Amortization of options	$	149		$	146		$	141		$	141		$	132		$	436		$	365
DAC and reserve offsets		(74	)		(74	)		(72	)		(72	)		(67	)		(220	)		(182	)
Amortization of options, net of DAC and reserve offsets	$	75		$	72		$	69		$	69		$	65		$	216		$	183

Page 13

American Financial Group, Inc. Core Net Spread on Fixed Annuities - New Method ($ in millions)

	Three Months Ended															Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			09/30/19			09/30/18
Average fixed annuity investments (at amortized cost) (a)	$	38,650		$	37,907		$	36,991		$	35,993		$	34,955		$	37,849		$	33,964
Average annuity benefits accumulated		38,946			38,202			37,078			36,103			35,226			38,075			34,240
Annuity benefits accumulated in excess of investments (a)	$	(296	)	$	(295	)	$	(87	)	$	(110	)	$	(271	)	$	(226	)	$	(276	)
As % of average annuity benefits accumulated (except as noted)
Net investment income (as % of investments)		4.34	%		4.40	%		4.37	%		4.44	%		4.38	%		4.37	%		4.38	%
Investments marked to market through core operating earnings (as % of investments)		0.28	%		0.33	%		0.31	%		0.20	%		0.32	%		0.31	%		0.38	%
Cost of funds		(2.57	%)		(2.55	%)		(2.54	%)		(2.58	%)		(2.52	%)		(2.56	%)		(2.45	%)
Other annuity benefits, net of guaranteed withdrawal benefit fees		(0.08	%)		(0.10	%)		(0.13	%)		(0.12	%)		(0.10	%)		(0.10	%)		(0.09	%)
Core net interest spread on fixed annuities - new method		1.97	%		2.08	%		2.01	%		1.94	%		2.08	%		2.02	%		2.22	%
Policy charges and other miscellaneous income		0.08	%		0.08	%		0.08	%		0.08	%		0.09	%		0.08	%		0.10	%
Acquisition expenses		(0.65	%)		(0.68	%)		(0.65	%)		(0.66	%)		(0.65	%)		(0.66	%)		(0.67	%)
Other expenses		(0.34	%)		(0.37	%)		(0.36	%)		(0.38	%)		(0.36	%)		(0.36	%)		(0.37	%)
Core net spread earned on fixed annuities - new method		1.06	%		1.11	%		1.08	%		0.98	%		1.16	%		1.08	%		1.28	%
Net spread earned on items previously reported as core operating		n/a			n/a			(0.12	%)		(0.73	%)		0.19	%		(0.04	%)		0.07	%
Core net spread earned on fixed annuities - as reported		1.06	%		1.11	%		0.96	%		0.25	%		1.35	%		1.04	%		1.35	%
Average annuity benefits accumulated	$	38,946		$	38,202		$	37,078		$	36,103		$	35,226		$	38,075		$	34,240
Net spread earned on fixed annuities - core		1.06	%		1.11	%		1.08	%		0.98	%		1.16	%		1.08	%		1.28	%
Earnings on fixed annuity benefits accumulated - core	$	103		$	106		$	100		$	88		$	102		$	309		$	330
Annuity benefits accumulated in excess of investments	$	(296	)	$	(295	)	$	(87	)	$	(110	)	$	(271	)	$	(226	)	$	(276	)
Net investment income (as % of investments)		4.62	%		4.73	%		4.68	%		4.64	%		4.70	%		4.68	%		4.76	%
Earnings/(loss) on annuity benefits accumulated in excess of investments	$	(3	)	$	(3	)	$	(1	)	$	(1	)	$	(3	)	$	(7	)	$	(10	)
Variable annuity earnings		—			1			2			(1	)		1			3			3
Pretax Annuity core operating earnings - new method		100			104			101			86			100			305			323
Other amounts previously reported as core operating, net		n/a			n/a			(11	)		(66	)		17			(11	)		18
Pretax Annuity core operating earnings - as reported	$	100		$	104		$	90		$	20		$	117		$	294		$	341

(a) Excludesnon-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
	9/30/19		6/30/19		3/31/19		12/31/18		9/30/18		09/30/19		09/30/18
Financial institutions single premium annuities - indexed	$	325	$	429	$	424	$	455	$	460	$	1,178	$	1,321
Financial institutions single premium annuities - fixed		302		313		344		142		114		959		350
Retail single premium annuities - indexed		198		274		301		392		354		773		1,026
Retail single premium annuities - fixed		30		36		29		27		17		95		60
Broker dealer single premium annuities - indexed		134		189		227		335		322		550		936
Broker dealer single premium annuities - fixed		9		8		6		4		3		23		10
Pension risk transfer (PRT)		39		50		10		75		56		99		57
Education market - fixed and indexed annuities		35		44		49		46		46		128		146
Subtotal fixed annuity premiums		1,072		1,343		1,390		1,476		1,372		3,805		3,906
Variable annuities		5		6		5		6		6		16		19
Total annuity premiums	$	1,077	$	1,349	$	1,395	$	1,482	$	1,378	$	3,821	$	3,925
Summary by Distribution Channel:
Financial institutions	$	627	$	742	$	768	$	597	$	574	$	2,137	$	1,671
Retail		228		310		330		419		371		868		1,086
Broker dealer		143		197		233		339		325		573		946
Other		79		100		64		127		108		243		222
Total annuity premiums	$	1,077	$	1,349	$	1,395	$	1,482	$	1,378	$	3,821	$	3,925
Summary by Product Type:
Total indexed	$	675	$	917	$	980	$	1,211	$	1,164	$	2,572	$	3,369
Total fixed		397		426		410		265		208		1,233		537
Variable		5		6		5		6		6		16		19
Total annuity premiums	$	1,077	$	1,349	$	1,395	$	1,482	$	1,378	$	3,821	$	3,925

Page 15

American Financial Group, Inc. Fixed Annuity Benefits Accumulated (GAAP) ($ in millions)

	Three Months Ended															Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			09/30/19			09/30/18
Beginning fixed annuity reserves	$	38,680		$	37,724		$	36,431		$	35,774		$	34,678		$	36,431		$	33,005
Premiums		1,072			1,343			1,390			1,476			1,372			3,805			3,906
Federal Home Loan Bank (“FHLB”) advances (paydowns)		—			—			—			225			—			—			—
Surrenders, benefits and other withdrawals		(808	)		(862	)		(761	)		(796	)		(707	)		(2,431	)		(2,040	)
Interest and other annuity benefit expenses:
Cost of funds		250			244			236			233			222			730			630
Embedded derivativemark-to-market		111			251			462			(490	)		223			824			242
Unlockings		(75	)		—			—			4			—			(75	)		55
Other		(18	)		(20	)		(34	)		5			(14	)		(72	)		(24	)
Ending fixed annuity reserves	$	39,212		$	38,680		$	37,724		$	36,431		$	35,774		$	39,212		$	35,774
Reconciliation to annuity benefits accumulated:
Ending fixed annuity reserves	$	39,212		$	38,680		$	37,724		$	36,431		$	35,774		$	39,212		$	35,774
Impact of unrealized investment gains on reserves		269			192			108			10			8			269			8
Fixed component of variable annuities		170			172			174			175			176			170			176
Annuity benefits accumulated per balance sheet	$	39,651		$	39,044		$	38,006		$	36,616		$	35,958		$	39,651		$	35,958
Annualized surrenders and other withdrawals as a % of beginning reserves		8.4	%		9.1	%		8.4	%		8.9	%		8.2	%		8.9	%		8.2	%
Rider reserves included in ending fixed annuity reserves above	$	611		$	491		$	478		$	472		$	428		$	611		$	428
Embedded Derivative liability included in ending fixed annuity reserves above	$	3,469		$	3,541		$	3,247		$	2,720		$	3,105		$	3,469		$	3,105

Page 16

American Financial Group, Inc. Guaranteed Minimum Interest Rate (“GMIR”) Analysis ($ in millions)

	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			6/30/18
GMIR
1 - 1.99%		81	%		80	%		79	%		79	%		78	%		78	%
2 - 2.99%		3	%		4	%		4	%		4	%		4	%		4	%
3 - 3.99%		7	%		7	%		8	%		8	%		9	%		9	%
4.00% and above		9	%		9	%		9	%		9	%		9	%		9	%
Annuity Benefits Accumulated	$	39,651		$	39,044		$	38,006		$	36,616		$	35,958		$	34,886
Traditional Fixed and FIA Surrender Value (a)	$	30,292		$	29,891		$	29,163		$	27,842		$	27,434		$	26,502
Ability to Lower Average Crediting Rates by (a) (b)		1.20	%		1.20	%		1.20	%		1.19	%		1.16	%		1.09	%
Pretax earnings impact of crediting guaranteed minimums (a)	$	363		$	359		$	350		$	331		$	317		$	288
(assumes net DAC impact over time = $0)

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

(b) Weighted Average Crediting Rate less GMIR

Page 17

American Financial Group, Inc. AnnuityNon-Core Earnings (Losses) ($ in millions)

	Reported in Non-Core Earnings						Reported in Core Earnings Prior to Second Quarter of 2019
	Three Months Ended						Three Months Ended									Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			9/30/19			9/30/18
AnnuityNon-Core Earnings (Losses):
Stock market impact on:
Liability for guaranteed benefits (a)	$	2		$	6		$	14		$	(22	)	$	7		$	22		$	8
DAC and sales inducements (b)		1			1			5			(8	)		3			7			4
Fair Value (FV) accounting		1			—			14			(27	)		12			15			16
Subtotal impact of changes in stock market		4			7			33			(57	)		22			44			28
Impact of changes in interest rates on FV accounting		(30	)		(38	)		(45	)		(4	)		(2	)		(113	)		37
Other FIA items		—			(2	)		1			(1	)		(3	)		(1	)		(20	)
Unlockings		(1	)		—			—			(4	)		—			(1	)		(27	)
AnnuityNon-Core Earnings (Losses)	$	(27	)	$	(33	)	$	(11	)	$	(66	)	$	17		$	(71	)	$	18
Reported as		Non-core			Non-core			Core			Core			Core			Q1 Core =   Q2/Q3 Non-core =	($11)  ($60)		Core
AnnuityNon-Core Net Spread Earned:
Stock market impact on:
Liability for guaranteed benefits (a)		0.02	%		0.06	%		0.15	%		(0.24	%)		0.08	%		0.08	%		0.03	%
DAC and sales inducements (b)		0.01	%		0.01	%		0.06	%		(0.09	%)		0.03	%		0.02	%		0.02	%
Fair Value (FV) accounting		0.01	%		0.00	%		0.15	%		(0.30	%)		0.14	%		0.05	%		0.06	%
Subtotal impact of changes in stock market		0.04	%		0.07	%		0.36	%		(0.63	%)		0.25	%		0.15	%		0.11	%
Impact of changes in interest rates on FV accounting		(0.31	%)		(0.40	%)		(0.49	%)		(0.05	%)		(0.03	%)		(0.40	%)		0.15	%
Other FIA items		0.00	%		(0.02	%)		0.01	%		(0.01	%)		(0.03	%)		0.00	%		(0.08	%)
Unlockings		(0.01	%)		0.00	%		0.00	%		(0.04	%)		0.00	%		0.00	%		(0.11	%)
Non-core net spread earned on fixed annuities		(0.28	%)		(0.35	%)		(0.12	%)		(0.73	%)		0.19	%		(0.25	%)		0.07	%
Reported as		Non-core			Non-core			Core			Core			Core			Q1 Core = (.04%) Q2/Q3 Non-core = (.21%)			Core

(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	2,977		2,942		2,834		2,507		2,914		2,977		2,914
Average 5 and 15 year Corp A2 rates	2.71	%	2.97	%	3.41	%	3.90	%	3.97	%	2.71	%	3.97	%
Non-core earnings sensitivities:
Incremental +/- 1% change in S&P 500	~ +/- $2mm to $4mm
Incremental +/- 10bps change in interest rates	~ +/- $9mm to $11mm
(Assumes parallel shift in rates (primarily Corporate A2 rates))

Page 18

American Financial Group, Inc. Reconciliation from Core to GAAP Annuity Pretax Earnings ($ in millions)

	Three Months Ended															Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			09/30/19			09/30/18
Annuity Earnings
Core annuity operating earnings - as reported (see page 12)	$	100		$	104		$	90		$	20		$	117		$	294		$	341
Annuitynon-core earnings (losses)		(27	)		(33	)		—			—			—			(60	)		—
Earnings before income taxes - GAAP	$	73		$	71		$	90		$	20		$	117		$	234		$	341
Policy Charges and Other Miscellaneous Income
Policy charges and other miscellaneous income - new method (see page 12)	$	10		$	10		$	11		$	10		$	11		$	31		$	32
Annuitynon-core policy charges and other miscellaneous income		1			—			—			—			—			1			—
Policy Charges and Other Miscellaneous Income - GAAP	$	11		$	10		$	11		$	10		$	11		$	32		$	32
Annuity Benefit Expense
Annuity benefits expense - new method (see page 13)	$	276		$	272		$	266		$	260		$	248		$	814		$	703
Annuitynon-core annuity benefits		(26	)		67			45			74			(26	)		86			(39	)
Annuity Benefit Expense - GAAP	$	250		$	339		$	311		$	334		$	222		$	900		$	664
Acquisition Expenses
Acquisition expenses - new method (see page 12)	$	64		$	67		$	60		$	64		$	60		$	191		$	178
Annuitynon-core acquisition expenses		54			(34	)		(34	)		(8	)		9			(14	)		21
Acquisition Expenses - GAAP	$	118		$	33		$	26		$	56		$	69		$	177		$	199
Net Spread on Fixed Annuities
Core net spread earned on fixed annuities - as reported (see page 14)		1.06	%		1.11	%		0.96	%		0.25	%		1.35	%		1.04	%		1.35	%
Non-core net spread earned on fixed annuities		(0.28	%)		(0.35	%)		0.00	%		0.00	%		0.00	%		(0.21	%)		0.00	%
Net Spread on Fixed Annuities		0.78	%		0.76	%		0.96	%		0.25	%		1.35	%		0.83	%		1.35	%

Page 19

American Financial Group, Inc. Consolidated Balance Sheet ($ in millions)

	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			6/30/18
Assets:
Total cash and investments	$	54,207		$	52,907		$	51,040		$	48,498		$	47,841		$	46,779
Recoverables from reinsurers		3,261			3,150			3,258			3,349			3,352			3,073
Prepaid reinsurance premiums		781			651			636			610			717			645
Agents’ balances and premiums receivable		1,403			1,398			1,283			1,234			1,299			1,266
Deferred policy acquisition costs		964			1,203			1,447			1,682			1,669			1,582
Assets of managed investment entities		4,702			4,781			4,786			4,700			4,998			5,032
Other receivables		1,187			999			1,011			1,090			1,633			1,048
Variable annuity assets (separate accounts)		601			616			610			557			650			636
Other assets		1,754			1,785			1,854			1,529			1,832			1,574
Goodwill		207			207			207			207			199			199
Total assets	$	69,067		$	67,697		$	66,132		$	63,456		$	64,190		$	61,834
Liabilities and Equity:
Unpaid losses and loss adjustment expenses	$	9,847		$	9,577		$	9,623		$	9,741		$	9,670		$	9,093
Unearned premiums		2,986			2,683			2,605			2,595			2,740			2,539
Annuity benefits accumulated		39,651			39,044			38,006			36,616			35,958			34,886
Life, accident and health reserves		613			619			632			635			643			647
Payable to reinsurers		867			755			730			752			932			721
Liabilities of managed investment entities		4,523			4,590			4,593			4,512			4,807			4,840
Long-term debt		1,423			1,423			1,423			1,302			1,302			1,301
Variable annuity liabilities (separate accounts)		601			616			610			557			650			636
Other liabilities		2,235			2,300			2,245			1,774			2,324			2,087
Total liabilities	$	62,746		$	61,607		$	60,467		$	58,484		$	59,026		$	56,750
Shareholders’ equity:
Common stock	$	90		$	90		$	90		$	89		$	89		$	89
Capital surplus		1,292			1,277			1,256			1,245			1,231			1,220
Retained earnings		4,022			3,914			3,875			3,588			3,800			3,628
Unrealized gains - fixed maturities		920			812			464			83			93			191
Unrealized gains (losses) - fixed maturity-related cash flow hedges		25			18			—			(11	)		(32	)		(27	)
Other comprehensive income, net of tax		(28	)		(21	)		(20	)		(24	)		(17	)		(17	)
Total shareholders’ equity		6,321			6,090			5,665			4,970			5,164			5,084
Noncontrolling interests		—			—			—			2			—			—
Total liabilities and equity	$	69,067		$	67,697		$	66,132		$	63,456		$	64,190		$	61,834

Page 20

American Financial Group, Inc. Book Value Per Share and Price / Book Summary (in millions, except per share information)

	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			6/30/18
Shareholders’ equity	$	6,321		$	6,090		$	5,665		$	4,970		$	5,164		$	5,084
Unrealized (gains) related to fixed maturities		(945	)		(830	)		(464	)		(72	)		(61	)		(164	)
Adjusted shareholders’ equity		5,376			5,260			5,201			4,898			5,103			4,920
Goodwill		(207	)		(207	)		(207	)		(207	)		(199	)		(199	)
Intangibles		(45	)		(48	)		(51	)		(54	)		(31	)		(34	)
Tangible adjusted shareholders’ equity	$	5,124		$	5,005		$	4,943		$	4,637		$	4,873		$	4,687
Common shares outstanding		90.127			89.918			89.638			89.292			89.189			89.072
Book value per share:
Book value per share	$	70.14		$	67.72		$	63.20		$	55.66		$	57.90		$	57.08
Adjusted (a)		59.65			58.49			58.02			54.86			57.22			55.24
Tangible, adjusted (b)		56.84			55.65			55.14			51.93			54.64			52.63
Market capitalization
AFG’s closing common share price	$	107.85		$	102.47		$	96.21		$	90.53		$	110.97		$	107.33
Market capitalization	$	9,720		$	9,214		$	8,624		$	8,084		$	9,897		$	9,560
Price / Adjusted book value ratio		1.81			1.75			1.66			1.65			1.94			1.94

(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)

	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			6/30/18
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		425			425			425			300			300			300
Total principal amount of long-term debt	$	1,443		$	1,443		$	1,443		$	1,318		$	1,318		$	1,318
Shareholders’ equity		6,321			6,090			5,665			4,970			5,164			5,084
Noncontrolling interests (including redeemable NCI)		—			—			—			2			—			—
Less:
Unrealized (gains) related to fixed maturity investments		(945	)		(830	)		(464	)		(72	)		(61	)		(164	)
Total adjusted capital	$	6,819		$	6,703		$	6,644		$	6,218		$	6,421		$	6,238
Ratio of debt to total adjusted capital:
Including subordinated debt		21.2	%		21.5	%		21.7	%		21.2	%		20.5	%		21.1	%
Excluding subordinated debt		14.9	%		15.2	%		15.3	%		16.4	%		15.9	%		16.3	%

Page 22

American Financial Group, Inc. Additional Supplemental Information ($ in millions)

	Three Months Ended										Nine Months Ended
	9/30/19		6/30/19		3/31/19		12/31/18		9/30/18		09/30/19		09/30/18
Property and Casualty Insurance
Paid Losses (GAAP)	$	769	$	666	$	704	$	719	$	614	$	2,139	$	1,883

	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			06/30/18
GAAP Equity (excluding AOCI)
Property and Casualty Insurance	$	4,094		$	3,959		$	3,868		$	3,638		$	3,664		$	3,535
Annuity		2,613			2,612			2,553			2,443			2,513			2,397
Parent and other subsidiaries		(1,303	)		(1,290	)		(1,200	)		(1,159	)		(1,057	)		(995	)
AFG GAAP Equity (excluding AOCI)	$	5,404		$	5,281		$	5,221		$	4,922		$	5,120		$	4,937
Allowable dividends without regulatory approval
Property and Casualty Insurance	$	529		$	529		$	529		$	529		$	563		$	563
Annuity andRun-off		768			768			768			768			263			263
Total	$	1,297		$	1,297		$	1,297		$	1,297		$	826		$	826

Page 23

American Financial Group, Inc. Total Cash and Investments ($ in millions)

	Carrying Value - September 30, 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	$	1,622	$	779	$	292	$	—		$	2,693		5	%
Fixed maturities - Available for sale		7,893		37,599		11		—			45,503		84	%
Fixed maturities - Trading		54		54		—		—			108		0	%
Equity securities		1,138		801		65		—			2,004		4	%
Investments accounted for using the equity method		625		910		—		—			1,535		3	%
Mortgage loans		293		881		—		—			1,174		2	%
Policy loans		—		166		—		—			166		0	%
Equity index call options		—		750		—		—			750		1	%
Real estate and other investments		129		274		49		(178	)		274		1	%
Total cash and investments	$	11,754	$	42,214	$	417	$	(178)		$	54,207		100	%
	Carrying Value - December 31, 2018
	Property and				Parent and							% of
	Casualty		Annuity and		OtherNon-		Consolidate			Total AFG		Investment
	Insurance		Run-off		Insurance		CLOs			Consolidated		Portfolio
Total cash and investments:
Cash and cash equivalents	$	1,007	$	339	$	169	$	—		$	1,515		3	%
Fixed maturities - Available for sale		7,853		34,132		12		—			41,997		87	%
Fixed maturities - Trading		50		55		—		—			105		0	%
Equity securities		1,017		744		53		—			1,814		4	%
Investments accounted for using the equity method		557		817		—		—			1,374		3	%
Mortgage loans		289		779		—		—			1,068		2	%
Policy loans		—		174		—		—			174		0	%
Equity index call options		—		184		—		—			184		0	%
Real estate and other investments		134		276		44		(187	)		267		1	%
Total cash and investments	$	10,907	$	37,500	$	278	$	(187	)	$	48,498		100	%

Page 24

American Financial Group, Inc. Net Investment Income ($ in millions)

	Three Months Ended															Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			09/30/19			09/30/18
Property and Casualty Insurance:
Gross Investment Income
Fixed maturities - Available for sale	$	75		$	79		$	77		$	74		$	72		$	231		$	210
Fixed maturities - Trading		1			1			1			1			—			3			2
Equity securities - dividends		12			13			13			11			13			38			37
Equity securities - MTM		7			1			2			9			(1	)		10			4
Equity in investees		20			20			3			14			16			43			51
AFG managed CLOs		(2	)		2			3			(1	)		1			3			3
Other investments (a)		12			10			7			10			9			29			22
Gross investment income		125			126			106			118			110			357			329
Investment expenses		(1	)		(2	)		(2	)		(3	)		(2	)		(5	)		(6	)
Total net investment income	$	124		$	124		$	104		$	115		$	108		$	352		$	323
Average cash and investments (b)	$	11,387		$	11,193		$	10,997		$	10,651		$	10,388		$	11,192		$	10,405
Average yield (c)		4.36	%		4.43	%		3.78	%		4.32	%		4.16	%		4.19	%		4.14	%
Fixed Annuity
Gross Investment Income
Fixed maturities - Available for sale	$	393		$	391		$	384		$	376		$	361		$	1,168		$	1,049
Equity securities - dividends		9			8			9			9			6			26			21
Equity securities - MTM		7			3			3			2			—			13			11
Equity in investees		23			25			18			19			25			66			77
AFG managed CLOs		(3	)		3			8			(3	)		3			8			8
Other investments (a)		21			22			15			18			19			58			55
Gross investment income		450			452			437			421			414			1,339			1,221
Investment expenses		(4	)		(4	)		(4	)		(4	)		(3	)		(12	)		(9	)
Total net investment income	$	446		$	448		$	433		$	417		$	411		$	1,327		$	1,212
Average cash and investments (b)	$	38,650		$	37,907		$	36,991		$	35,993		$	34,955		$	37,849		$	33,964
Average yield (c)		4.62	%		4.73	%		4.68	%		4.64	%		4.70	%		4.68	%		4.76	%
AFG consolidated net investment income:
Property & Casualty	$	124		$	124		$	104		$	115		$	108		$	352		$	323
Annuity:
Fixed Annuity		446			448			433			417			411			1,327			1,212
Variable Annuity		2			3			2			2			2			7			7
Parent & other		11			10			14			4			10			35			21
Consolidate CLOs		5			(5	)		(11	)		4			(4	)		(11	)		(11	)
Total net investment income	$	588		$	580		$	542		$	542		$	527		$	1,710		$	1,552

(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. Significant InvestmentsMarked-to-Market Through Investment Income and Investments Accounted For Using the Equity Method ($ in millions)

	Three Months Ended															Nine Months Ended
	9/30/19			6/30/19			3/31/19			12/31/18			9/30/18			09/30/19			09/30/18
Property and Casualty Insurance:
Net Investment Income
Equity securities MTM through investment income (a)	$	7		$	1		$	2		$	9		$	(1	)	$	10		$	4
Investments accounted for using the equity method (b)		20			20			3			14			16			43			51
AFG managed CLOs (eliminated in consolidation)		(2	)		2			3			(1	)		1			3			3
Total Property & Casualty	$	25		$	23		$	8		$	22		$	16		$	56		$	58
Investments
Equity securities MTM through investment income (a)	$	77		$	57		$	52		$	50		$	40		$	77		$	40
Investments accounted for using the equity method (b)		625			614			578			557			520			625			520
AFG managed CLOs (eliminated in consolidation)		53			56			57			56			57			53			57
Total Property & Casualty	$	755		$	727		$	687		$	663		$	617		$	755		$	617
Annualized Yield - Property & Casualty		13.5	%		13.0	%		4.7	%		13.8	%		10.8	%		10.5	%		13.9	%
Fixed Annuity:
Net Investment Income
Equity securities MTM through investment income (a)	$	7		$	3		$	3		$	2		$	—		$	13		$	11
Investments accounted for using the equity method (b)		23			25			18			19			25			66			77
AFG managed CLOs (eliminated in consolidation)		(3	)		3			8			(3	)		3			8			8
Total Fixed Annuity	$	27		$	31		$	29		$	18		$	28		$	87		$	96
Investments
Equity securities MTM through investment income (a)	$	120		$	101		$	88		$	84		$	79		$	120		$	79
Investments accounted for using the equity method (b)		910			892			862			817			769			910			769
AFG managed CLOs (eliminated in consolidation)		125			135			136			132			134			125			134
Total Fixed Annuity	$	1,155		$	1,128		$	1,086		$	1,033		$	982		$	1,155		$	982
Annualized Yield - Fixed Annuity		9.5	%		11.2	%		10.9	%		7.1	%		11.7	%		10.5	%		14.3	%
Combined (includes Parent amounts not shown above):
Net Investment Income
Equity securities MTM through investment income (a)	$	17		$	8		$	11		$	6		$	1		$	36		$	16
Investments accounted for using the equity method (b)		43			45			21			33			41			109			128
AFG managed CLOs (eliminated in consolidation)		(5	)		5			11			(4	)		4			11			11
Total Combined (including Parent)	$	55		$	58		$	43		$	35		$	46		$	156		$	155
Investments
Equity securities MTM through investment income (a)	$	262		$	220		$	198		$	187		$	176		$	262		$	176
Investments accounted for using the equity method (b)		1,535			1,506			1,440			1,374			1,289			1,535			1,289
AFG managed CLOs (eliminated in consolidation)		178			191			193			188			191			178			191
Total Combined (including Parent)	$	1,975		$	1,917		$	1,831		$	1,749		$	1,656		$	1,975		$	1,656
Annualized Yield - Combined		11.3	%		12.4	%		9.6	%		8.2	%		11.4	%		11.1	%		13.7	%

(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 )

												% of
	Amortized					Unrealized			% of			Investment
September 30, 2019	Cost			Fair Value		Gain (Loss)			Fair Value			Portfolio
US Government and government agencies	$	230		$	234	$	4			1	%		0	%
States, municipalities and political subdivisions		6,543			6,988		445			15	%		13	%
Foreign government		194			198		4			0	%		0	%
Residential mortgage-backed securities		2,276			2,564		288			6	%		5	%
Commercial mortgage-backed securities		928			966		38			2	%		2	%
Collateralized loan obligations		4,319			4,314		(5	)		9	%		8	%
Other asset-backed securities		5,540			5,731		191			13	%		11	%
Corporate and other bonds		23,412			24,616		1,204			54	%		45	%
Total AFG consolidated	$	43,442		$	45,611	$	2,169			100	%		84	%
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		4.39	%
Net of investment expense (a)		4.35	%
Approximate average life and duration:
Approximate average life		6 years
Approximate duration		4.5 years
												% of
	Amortized					Unrealized			% of			Investment
December 31, 2018	Cost			Fair Value		Gain (Loss)			Fair Value			Portfolio
US Government and government agencies	$	245		$	243	$	(2	)		1	%		1	%
States, municipalities and political subdivisions		6,850			6,964		114			17	%		14	%
Foreign government		166			168		2			0	%		0	%
Residential mortgage-backed securities		2,478			2,746		268			7	%		6	%
Commercial mortgage-backed securities		905			920		15			2	%		2	%
Collateralized loan obligations		4,350			4,278		(72	)		10	%		9	%
Other asset-backed securities		5,431			5,533		102			13	%		11	%
Corporate and other bonds		21,517			21,250		(267	)		50	%		44	%
Total AFG consolidated	$	41,942		$	42,102	$	160			100	%		87	%
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		4.47	%
Net of investment expense (a)		4.42	%
Approximate average life and duration:
Approximate average life		6 years
Approximate duration		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.

Page 27

American Financial Group, Inc. Fixed Maturities - By Security Type Portfolio ($ in millions )

	September 30, 2019											December 31, 2018
	Amortized					Unrealized			% of			Amortized					Unrealized			% of
Property and Casualty Insurance:	Cost			Fair Value		Gain (Loss)			Fair Value			Cost			Fair Value		Gain (Loss)			Fair Value
US Government and government agencies	$	192		$	195		3			2	%	$	203		$	202	$	(1	)		3	%
States, municipalities and political subdivisions		2,456			2,555		99			32	%		2,630			2,642		12			33	%
Foreign government		163			164		1			2	%		155			156		1			2	%
Residential mortgage-backed securities		660			726		66			9	%		725			784		59			10	%
Commercial mortgage-backed securities		93			96		3			1	%		83			84		1			1	%
Collateralized loan obligations		898			897		(1	)		11	%		910			895		(15	)		12	%
Other asset-backed securities		1,283			1,303		20			17	%		1,365			1,364		(1	)		17	%
Corporate and other bonds		1,961			2,011		50			26	%		1,792			1,776		(16	)		22	%
Property and Casualty Insurance	$	7,706		$	7,947	$	241			100	%	$	7,863		$	7,903	$	40			100	%
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		3.86	%										3.91	%
Net of investment expense (a)		3.79	%										3.81	%
Tax equivalent, net of investment expense (b)		4.00	%										3.99	%
Approximate average life and duration:
Approximate average life		4.5 years											4.5 years
Approximate duration		3.5 years											3.5 years
	September 30, 2019											December 31, 2018
	Amortized					Unrealized			% of			Amortized					Unrealized			% of
Annuity andRun-off:	Cost			Fair Value		Gain (Loss)			Fair Value			Cost			Fair Value		Gain (Loss)			Fair Value
US Government and government agencies	$	38		$	39	$	1			0	%	$	42		$	41	$	(1	)		0	%
States, municipalities and political subdivisions		4,087			4,433		346			12	%		4,220			4,322		102			13	%
Foreign government		31			34		3			0	%		11			12		1			0	%
Residential mortgage-backed securities		1,614			1,827		213			5	%		1,750			1,950		200			6	%
Commercial mortgage-backed securities		835			870		35			2	%		822			836		14			2	%
Collateralized loan obligations		3,421			3,417		(4	)		9	%		3,440			3,383		(57	)		10	%
Other asset-backed securities		4,257			4,428		171			12	%		4,066			4,169		103			12	%
Corporate and other bonds		21,451			22,605		1,154			60	%		19,725			19,474		(251	)		57	%
Total Annuity andRun-off	$	35,734		$	37,653	$	1,919			100	%	$	34,076		$	34,187	$	111			100	%
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		4.50	%										4.59	%
Net of investment expense (a)		4.47	%										4.55	%
Approximate average life and duration:
Approximate average life		6 years											6.5 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 ontax-exempt bonds to the fully taxable equivalent yield.

Page 28

American Financial Group, Inc. Fixed Maturities - Credit Rating ($ in millions)

	September 30, 2019
By Credit Rating (a)	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value
Investment grade
AAA	$	7,669	$	7,872	$	203			17	%
AA		8,493		8,931		438			20	%
A		10,426		10,988		562			24	%
BBB		12,956		13,654		698			30	%
Subtotal - Investment grade		39,544		41,445		1,901			91	%
BB		709		711		2			2	%
B		198		196		(2	)		0	%
Other (b)		2,991		3,259		268			7	%
Subtotal -Non-Investment grade		3,898		4,166		268			9	%
Total	$	43,442	$	45,611	$	2,169			100	%

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

	December 31, 2018
By Credit Rating (a)	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value
Investment grade
AAA	$	7,367	$	7,359	$	(8)			17	%
AA		8,714		8,831		117			21	%
A		10,006		9,989		(17	)		24	%
BBB		12,206		12,053		(153	)		29	%
Subtotal - Investment grade		38,293		38,232		(61	)		91	%
BB		703		685		(18	)		2	%
B		261		254		(7	)		0	%
Other (b)		2,685		2,931		246			7	%
Subtotal -Non-Investment grade		3,649		3,870		221			9	%
Total	$	41,942	$	42,102	$	160			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 page 33 for more information.

Page 29

American Financial Group, Inc. Mortgage-Backed Securities - AFG Consolidated ($ in millions)

September 30, 2019	Amortized Cost		Fair Value		Unrealized Gain (Loss)		% of Fair Value			% of Investment Portfolio
Residential
Agency	$	148	$	150	$	2		4	%		0	%
Prime(Non-Agency)		881		1,006		125		29	%		2	%
Alt-A		933		1,058		125		30	%		2	%
Subprime		314		350		36		10	%		1	%
Commercial		928		966		38		27	%		2	%
Total AFG consolidated	$	3,204	$	3,530	$	326		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 82%; Alt-A 81%; Subprime 82%; CMBS 100%.

• The average FICO score of our residential MBS securities is - Prime 733;Alt-A 695; Subprime 630.

• 96% of our Commercial MBS portfolio is investment-grade rated (83% AAA) and the average subordination for this group of assets is 36%.

• The approximate average life by collateral type is - Residential 4.5 years; Commercial 3.5 years.

December 31, 2018	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Investment Portfolio
Residential
Agency	$	170	$	168	$	(2	)		5	%		1	%
Prime(Non-Agency)		967		1,098		131			30	%		2	%
Alt-A		972		1,074		102			29	%		2	%
Subprime		369		406		37			11	%		1	%
Commercial		905		920		15			25	%		2	%
Total AFG consolidated	$	3,383	$	3,666	$	283			100	%		8	%

Page 30

American Financial Group, Inc. Mortgage-Backed Securities Portfolio ($ in millions)

Property and Casualty Insurance:

	September 30, 2019
By Asset Type	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Inv Portfolio
Residential
Agency	$	117	$	119	$	2			14	%		1	%
Prime(Non-Agency)		128		143		15			18	%		1	%
Alt-A		276		312		36			38	%		3	%
Subprime		139		152		13			18	%		1	%
Commercial		93		96		3			12	%		1	%
Total	$	753	$	822	$	69			100	%		7	%
	December 31, 2018
By Asset Type	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Inv Portfolio
Residential
Agency	$	137	$	134	$	(3	)		15	%		1	%
Prime(Non-Agency)		138		155		17			18	%		1	%
Alt-A		289		319		30			37	%		3	%
Subprime		161		176		15			20	%		2	%
Commercial		83		84		1			10	%		1	%
Total	$	808	$	868	$	60			100	%		8	%

Annuity andRun-off:

	September 30, 2019
By Asset Type	Amortized Cost		Fair Value		Unrealized Gain (Loss)		% of Fair Value			% of Inv Portfolio
Residential
Agency	$	31	$	31	$	—		1	%		0	%
Prime(Non-Agency)		751		852		101		32	%		2	%
Alt-A		657		746		89		28	%		2	%
Subprime		175		198		23		7	%		0	%
Commercial		835		870		35		32	%		2	%
Total	$	2,449	$	2,697	$	248		100	%		6	%
	December 31, 2018
By Asset Type	Amortized Cost		Fair Value		Unrealized Gain (Loss)		% of Fair Value			% of Inv Portfolio
Residential
Agency	$	33	$	34	$	1		1	%		0	%
Prime(Non-Agency)		826		931		105		34	%		2	%
Alt-A		683		755		72		27	%		2	%
Subprime		208		230		22		8	%		1	%
Commercial		822		836		14		30	%		2	%
Total	$	2,572	$	2,786	$	214		100	%		7	%

Page 31

American Financial Group, Inc. Mortgage-Backed Securities - Credit Rating ($ in millions)

	September 30, 2019
By Credit Rating (a)	Amortized Cost		Fair Value		Unrealized Gain (Loss)		% of Fair Value
Investment grade
AAA	$	1,147	$	1,192	$	45		34	%
AA		151		159		8		5	%
A		275		296		21		8	%
BBB		198		212		14		6	%
Subtotal - investment grade		1,771		1,859		88		53	%
BB		105		106		1		3	%
B		114		115		1		3	%
Other (b)		1,214		1,450		236		41	%
Total	$	3,204	$	3,530	$	326		100	%

94% of the mortgage-backed security portfolio has an NAIC 1 designation.

	December 31, 2018
By Credit Rating (a)	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value
Investment grade
AAA	$	1,107	$	1,119	$	12			31	%
AA		143		147		4			4	%
A		263		270		7			7	%
BBB		232		243		11			7	%
Subtotal - investment grade		1,745		1,779		34			49	%
BB		128		131		3			3	%
B		155		154		(1	)		4	%
Other (b)		1,355		1,602		247			44	%
Total	$	3,383	$	3,666	$	283			100	%

96% 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 rate a security, the rating displayed is the second lowest.

(b) See page 33 for more information.

Page 32

Appendix A American Financial Group, Inc. Fixed Maturities - Credit Rating by Type ($ in millions)

	Fair Value - September 30, 2019
By Credit Rating (a)	US Gov		Munis		Frgn Gov		RMBS		CMBS		CLOs		Other ABS		Corp/Oth		Total		% Total
Investment grade
AAA	$	225	$	2,032	$	108	$	391	$	801	$	2,904	$	1,228	$	183	$	7,872		17	%
AA		9		4,368		74		136		23		1,096		1,438		1,787		8,931		20	%
A		—		422		—		274		22		243		2,001		8,026		10,988		24	%
BBB		—		97		3		133		79		49		726		12,567		13,654		30	%
Subtotal - Investment grade		234		6,919		185		934		925		4,292		5,393		22,563		41,445		91	%
BB		—		9		—		75		31		—		28		568		711		2	%
B		—		—		—		115		—		—		7		74		196		0	%
CCC, CC, C		—		—		—		588		4		—		2		35		629		2	%
D		—		—		—		201		6		—		—		—		207		0	%
Subtotal -Non-Investment grade		—		9		—		979		41		—		37		677		1,743		4	%
Not Rated		—		60		13		651		—		22		301		1,376		2,423		5	%
Total	$	234	$	6,988	$	198	$	2,564	$	966	$	4,314	$	5,731	$	24,616	$	45,611		100	%
	Fair Value - December 31, 2018
By Credit Rating (a)	US Gov		Munis		Frgn Gov		RMBS		CMBS		CLOs		Other ABS		Corp/Oth		Total		% Total
Investment grade
AAA	$	213	$	1,889	$	98	$	367	$	752	$	2,679	$	1,191	$	170	$	7,359		17	%
AA		22		4,456		53		129		18		1,244		1,326		1,583		8,831		21	%
A		—		448		—		248		22		250		1,836		7,185		9,989		24	%
BBB		—		110		—		169		74		84		685		10,931		12,053		29	%
Subtotal - Investment grade		235		6,903		151		913		866		4,257		5,038		19,869		38,232		91	%
BB		—		—		—		97		34		—		23		531		685		2	%
B		—		8		—		151		3		—		4		88		254		0	%
CCC, CC, C		—		—		—		670		5		—		2		12		689		2	%
D		—		3		—		230		—		—		—		1		234		1	%
Subtotal -Non-Investment grade		—		11		—		1,148		42		—		29		632		1,862		5	%
Not Rated		8		50		17		685		12		21		466		749		2,008		4	%
Total	$	243	$	6,964	$	168	$	2,746	$	920	$	4,278	$	5,533	$	21,250	$	42,102		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.

Page 33