AFG - Earnings call transcript Q2 2021 | American Financial Group, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the American Financial Group 2021 Second Quarter Results Conference Call. At this time, all participants are in a listen only mode. After the speakers presentation, there will be a question and answer session [Operator Instructions]. I would now like to hand the conference over to your speaker today, Diane Weidner, Vice President, Investor Relations. ahead. go Please

Diane Weidner

welcome Earnings and second Financial Second Group's results Good Conference to Call. XXXX Results afternoon. XXXX We Quarter yesterday morning, American released quarter our

AFG's on and Our III investor materials and Carl of I'm will CFO. portions Co-CEOs Investor webcast joined AFG's during These Web American referenced Craig and today's presentation Relations press Lindner, section. site supplement Brian Financial Lindner are of release, be this the under by Hertzman, posted Group; call. morning

the Slide turn Carl, would our I to Before discussion to I like over attention your the webcast. to X draw notes on of

that in to measure, net of to factual in remarks finally, And earnings meaning transcription or or A errors to this authorized operating or reading materially earnings in differ transcript of statements may from not detailed A if uncertainties of risks operating our may be included involve Securities Web Some contain could release. Exchange these Commission, discussed the and shareholders a forward-looking these and description on risks statements. note may forward-looking. intent is references call, reviewed are to be include uncertainties site. in that please as be to core that earnings These it it and/or for a to materially matters and can certain net you're results our cause filings our statements. today reconciliation accuracy. result, of the the available net actual non-GAAP also are financial And our condition financial earnings, alter which could questions. a or We with AFG's attributable found responses core of

to over turn to to discuss the III pleased I'm results. Now our Lindner Carl call

Carl Lindner

in XXXX results core The AFG X results substantially impressive to earnings to increase was second net our Good of we're respond to $X.XX AFG's the XX.X%. overview of by your increase profit and questions. an highlights higher billion webcast. like per underwriting reported an were due return net of in quarter Property income. Casualty year-over-year. the alternative partially $X.X Casualty Annualized on pleased to and operations due and Slide insurance turn other rates. I'd to share, quarter Improved our morning, investment investments of higher of and operating Property share second operating XXX% results property company's equity core and to offset net short-term Specialty primarily second the lower from income, lower a on quarter strong casualty interest investment was and

X. Slide to Turning

of from gain after-tax operations, net the see quarter XXXX discontinued items noncore items of on $XX.XX These per that sale the You'll per share. our noncore included earnings $X.XX totaling inclusive of second annuity earnings per share included $X.XX after-tax share. an

per core business net success. at share, realized AFG's earnings $X.XX $X be an included range the to talented our helping and management of noncore the through for position Based items and exceptionally Second in operating $X.XX from of range previous per per up expect increase midpoint year, $X.XX, we XXXX the half of in of our now guidance. share of $X first to after-tax to on our the results to thank achieve Craig and I noncore gains $X.XX team us results also these our employees strong net for quarter XXXX securities. in share on God, continued our great

our other remaining a sale noncore of guidance and on range Annuity be in guidance to realized a able an not the may zero losses are pleased that alternatives also increase X, crop as the share normal to continues items to $X.X guidance As be approximately We're our earnings and to in in such Furthermore, over each such This meaningful annualized excludes the our reasonable X% items, year business. we as earnings discuss of Craig estimated precision of segment AFG's deployment gains company parent for with on return above from the assume alternative operations. of not on core investments per later guidance business you'll for reflects XXXX continue ongoing quarters that of more the detail way. two in of this or the guidance significant and will see I remaining proceeds Slide indicative call. XXXX. other and consider billion cash

insurance a an Please Pretax our overview. pleased property property core Now an Property million operations increase that to produced I'd in webcast higher in record XXX%. economic new strong in XXs. growth our our across and of to very XXXX, year XXXX, opportunities healthy were to million all were margins $XXX prior quarter generated ratio Casualty & million casualty of I'm net turn $XXX of recovery, of AFG's renewal an were Each during underwriting portfolio earnings second the businesses in Casualty the the our Underwriting and like excellent. segment operating pricing. was property million in the operations. of X Insurance with written underwriting excellent of Property Slide Specialty Casualty go of and to for quarter reported Property focus casualty and of increase each double-digit and compared $XX Results an groups year-over-year reporting Specialty which our the period. casualty primarily profit. the from three in of the combined a business the second The and premiums, profit second comparable result quarter of quarter $XXX the group Groups

the X.X period. very comparable prior The second year ratio strong quarter the improving a combined from XXXX in XX.X%, XX.X% reported points was

million include to the in for COVID-XX quarter prior points quarter. the $XX in X.X and prior the second development. reinsurance of in XXXX second quarter compared losses second XXXX year reserve X.X in net included period. related losses to year were the catastrophe XXXX XXXX $XX of X.X and points Catastrophe Results points compared X.X reinstatement quarter in of including premiums Second results favorable points million

the in situation. AFG and legislative recorded claims regulatory to monitor a of as Numerous in and evolving related fluid to quarter each to the recorded carefully accident $X we impacting COVID-XX second reserve to XXXX And the contribute to $X economic trends reserves well trade based million of slowdown million claim highly to favorable business. related COVID-XX credit actions the losses related loss pandemic. year specifics loss approximately XXXX, related continue development primarily We COVID-XX experience. on our

and XX% cumulative of XXXX. losses at the the reported the are not approximately relating uncertainty to June pandemic, held AFG's surrounding XX, the number COVID-XX Given reserves scope incurred million of $XX in but as ultimate claims related

review and attention each the are and care to deserves. claims with working professionals claims Our those support who them tirelessly

pricing. Now turning to

longer-tailed the businesses to increases momentum renewal see outside for comp, was Average in continue renewal X% Group, workers' across comp. quarter strong pricing entire broad of liability We including with approximately achieved strong and our Property Casualty up rate based renewal quarter. the pricing in our and pricing exceptionally

Excluding up our pricing renewal workers' comp approximately business, the in XX% was second quarter.

With to achieve the increases majority continuing vast of renewal the workers' exception businesses. of strong comp, we're our in rate

quarter ratio net the fact, XX% XX% our and excess be written this Specialty marked meaningful premiums quarter the consecutive to increases, second Gross Property and continue when up respectively estimated quarter prospective rate In XXth in of second and of loss trends. which compared quarter of overall Casualty for to were XXXX. XXXX of

and portfolio The premiums by written crop, of of year-over-year excluding drivers first in in of plus over Property and our the overall the just In fairly conditions net gross businesses. written among the XX% recall best the half evenly aggregate, in six and the workers' very change about year-over-year. Excluding XX% and XX continue and considerably rate half respectively gross be growth business. net split during growth with 'XX, years grew the to to I and across was growth vary Specialty favorable of Casualty attributable Market to my exposures. and growth premium are months comp, attributable

last from strong the improvement period overall in X Slide of in Specialty Group XXXX. to an second of $XX and very the from in Marine $XX review Catastrophe were our turn year business Crop, of Transportation points businesses quarter, quarter calendar X.X in Higher combined Property to underwriting the Casualty the Transportation ratio underwriting The in year-over-year million each achieved drivers 'XX a increase. comparable an $X losses highlights were to reported like million to of compared businesses this the the I'd in premiums compared group Transportation profit Property reinstatement the million a quarter second to and our the net second Inland and quarter groups. reinsurance Group in Property inclusive of second Property, XXXX profit million in of in of of the few period. XX.X% $XX Now year.

this in businesses, year combined groups in The Second the result than quarter were the written growth the of our reported all business, business, continued pleased differences businesses year. with transfer in group transportation see gross first this and renewals in premiums increased this from quarter, crop and commodity X% and of XX% came alternative respectively average and growth result higher XX% the the risk accounts, prior of our and results those in XXXX for the our timing new higher with rates this period, comparable in in net momentum. the primarily strong pricing primarily Overall, primarily rate with exposures second premiums. increased to futures renewal quarter I'm insurance writing group. the on consistent

belt than soybeans geography crops for are near and Southern crop now Southeast the the national excellent general, of are at in prices, discovery condition. It's by in and soybean the and and Dakotas reports approximately trend As as today. expect crop that Plains was Northwest at spring a - shape and due soybean of the XX% to higher year. corn are through industry yield Eastern to In far corn XX% looking in estimates normal as average the my are average. yields. with their XX% currently conditions good vary conditions crop, conditions are corn respective in and generally extreme conditions. respectively below corn Crop And or Pacific we monitor right drought crops in of futures XX% and above I Commodity crop good Central

last same an to the excess million targeted period. lines, fine. in and and our seems profitability Group increased premiums be year $XX the This XXXX. our businesses opportunities businesses, rates from the acquisition quarter. business. group. XXXX liability contributed ratio the surplus in mergers up group our strong and profitability of to credit Casualty excess second results respectively year XXXX the the reported quarter included the trade primarily business the higher executive and liability, group to than in XXXX and rates comp the quarter insurance. net Renewal of XX% business this our Financial excellent. were growth. year-over-year And also excess renewal markets XX%. net the So This excluding premiums credit businesses Higher related gross liability premiums renewal achieve businesses. liability compared in respectively in $X be reported for premiums second $XX underwriting grew to renewal and this for period. year-over-year. up have Higher And and an in And very respectively was in excluding profit in million comparable million this group and XX% last second businesses liability pricing exposures $XX and Improved written to underwriting shaping all in businesses when XXXX to COVID-XX-related to continues achieved and compared Underwriting the of higher underwriting XX% And margins year workers' year in than the surplus written in in compared up Significant reported strong Specialty contributed million excellent the second X% other businesses prior X in profitability. rate quarter $XX losses of were XX.X% $X premium in a COVID-XX last in quarter, strong quarter workers' net $XX of combined second less in lines XXXX ratio quarter to of by million increased second Gross executive And and XX% trade premium year-over-year the group profit an for related comp, strong by compared approximately to prior new and of contributed to pricing and XX% group reported our workers' second executive to when of underwriting in the very renewal million to written million the the of continued of and $X an improvement meaningfully drivers. to year's and contributed underwriting Results primarily gross year year prior comp, excess XX% group losses for the increases period. second comp points increased combined second period sessions growth Catastrophe included Nearly losses, higher overall the quarter. comparable the an quarter compared second key quarter. results Specialty were Group the our liability in and during comparable a growth this period. which in XX% XXXX. loss million

consistent opportunities contributed and to and within services, X% quarter. in surety group first businesses in results XXXX. our lender business in Renewal the of with for New the fidelity increase was pricing crime the quarter the this quarter up

XX% written indicating have profit. operations. board, our XXXX on the written Specialty Now of range increase a the Property estimated be to combined X% XXXX, please the of Casualty an for for to Growth XX%, higher XX% Based range first and Property months, of strengthened is Transportation XX%. the outlook and the estimate. each we Group turn view XX% between looking XX% summary of now now the to midpoint segment, net be expect in excluding previously. in to Slide overall is points across to through from in net increase Group premiums written underwriting our our which to guidance we And X an than from range are and X results premiums, We the now the billion for XXXX Casualty reported previous ratio $X Specialty combined at comp and to XX%. the Net the stronger of the Property ratio higher expect XXXX be expected expected percentage and workers' expected the now premiums XX% to of XX% six in

the net group guidance We earnings in this of to of level premiums growth for XX%. Our now in XX% year. for assumes a range to the expect crop normal rent be

growth net during the a produce to crop written And in spring assumes is to in premium XX%. expected is commodity a Our in as guidance XX% Specialty our now pricing and projected range businesses higher Casualty futures combined the based strong of growth digit transportation operations of on double result year. Group ratio our our

by our range Our written X% E&S guidance businesses. and continued assumes X% experience the strong in X% are change this to higher workers' growth liability projection of will from decreases to comp than in book, XXXX results, net raised premiums a rate previous renewal excess We've X%. our to in in a growth Premium estimate liability tempered be of longer-tail other pricing our a which of our result favorable of several for line.

first renewal now we the of XXXX to combined premiums to and on and the half XX% projected premium premiums this business. for Specialty the XX%, increase we previous investment in through Thank and stronger through by rate of sale in grow XX% And overall through review to Financial net from momentum reflecting the fidelity successful an our midpoint you. an we in of performance the comp, from our Casualty of And be We results Annuity XX%. and XXXX. the now half completion group to crime discussion as end the group workers' expect expect of growth XX% be excluding range of of to pricing the range of surety Excluding XX% pricing comp, estimated our Craig be growth turn to increases the written of in guidance. the indicated the this XX% business. we Property I'll over and in in we to expect first improvement the of Based XX%, expect results the XXXX renewal saw to continued AFG's XX% underwriting to be now between range up June, ratio X% to now expect previously. Group X% to and year X% the to XX%,

Craig Lindner

past Pretax Slides at We're were portfolio million end the investments pleased alternative quarter on presented annualized recorded are during securities the continued of with the X of AFG from at view quarter-to-quarter XX, that The Earnings reported net after Thank annual AFG's was real our the quarter $XX competency. are gains you, of billion results investment especially lag. average maturity in the performance years vary the $XX.X alternative surrounding return and of quarter. alternative realized We core million realized based from own Carl. as on XXXX securities calendar operating to gains entities over of of The equity investments, The earnings and the to investments on XX.X%. investments a investments XX. estate may quarter on quarter. gains the AFG Approximately tax. generally and approximately our portfolio after-tax on five a reported investments second in estate-related XXXX these million details June $XX valuation pertained real on reported in return was underlying $XXX fixed XXXX. the unrealized and second our core XX%. second on

our properties real mortgage estate In found related We great equity and estate real method. strong continue desirable at in and partnerships These funds June addition to directly occupancy our portfolio our estate real where accounted XX% for portfolio of by properties investments include and XXXX. of owned loans, collection and achieve XX, success very represented alternative in investing investment multifamily approximately we properties rates. the communities to

cash Slide As are an which P&C the upon preliminary grade included approximately closing AFG gain based $XXX were XXXX, $XXX and our post of rated recognized closing MassMutual, maturities May Casualty the sale noncore from are of our Both in Property on highlights made acquired after-tax be you and AFG's real Annuity transaction, sheet and closing. estate-related its over real can proceeds owned sale Slide Difficulty] of XX% the our on completed or adjustments. AFG XX% XX, billion. On balance Life company. years. to quality highest categories. the of an per sale gains the two the AFG high completion parent of Initial million portfolio the Annuity $X.X partnerships American approximately XX. investment our maturity [Technical the in of investment with portfolio of Group fixed NAIC to designation $X.XX AFG with the subject the proceeds the see the group continues on XX, to on Insurance fixed proud to acquired and Prior portfolio Great segment directly I AFG million share estate Carl from and to million contributions businesses $XXX extremely are

Over earnings, on the than to shown strong return has net we're our of overall proud less discipline that demonstrate reported business last net industry approximately XX internal years, reported this Slide earnings the of helped operated generate that generated an we operating of which often Annuity produced for business an XX. AFG. returns are In core business the as XX%, significantly and strong rate where earnings this with fact

see period operating as Annuity in company MassMutual. efforts market quality with demonstrating of operating segment per additional Earlier this our P&C an this for earnings in The business to core cash XXX% billion a excess XXXX, during best grateful declared wish of share Annuity team to percent as When our on to which and an declared July. transaction, the earnings a generated Annuity net dividend management connection life this special year to on for and of careers their sharpens XX $XXX a specialty industry. cash with December five exclusively AFG. dividend Annuity XX, compared Annuity XXXX, disposition the Annuity transaction substantial Slide earnings connection and associates $X special paid were very As earnings million and $XX the ended to I'm capital core we improved we the totaling continue paid the per $X.X for XXX%, bring their the with overall. insurance the relative XX, of In was earnings our onetime months week, of you for them earnings industry share of successful AFG's net segment closing Annuity mid-June. focus close in only include our will additional XX% of they the the to

additional liquidity. at through remains P&C capital to which excess make the pay acquisitions repurchases, start-ups level, significant that about thresholds. a target Specialty over discuss financial meet AFG's share niche Our flexibility special Brian, the dividends, opportunistic and and a now comments our us turn businesses grow our affords organically financial I'll who discussion few to will position and return and AFG's capital

Brian Hertzman

an you Please the quarter repurchased $XXX at June you, turn and of find summary million position the AFG share per an adjust executed average stock special important Thank repurchases, for where capital management financial common to component XX, of of $XXX.XX you a XX valuations Craig. strategy. it will especially AFG's Share XXXX. when at our price during effective Slide when We dividend. attractive are of

dividend. in financial During to of quarterly capital Returning our addition is $XX that the to strategy dividend we share per quarter, our confidence the returned to component financial the the earlier, in reflects of mentioned our strong and future. million special the dividends our management $X.XX company's Craig of regular a and shareholders payment share the excess capital repurchases form position and AFG's through in shareholders key

per book sale, strong the the was XX% Annuity six on With plus of XXXX. months the annualized value growth a in first adjusted and share gain dividends

Our capital approximately June. company approximately number is billion. included $X.X billion the end parent $X of of investments This at excess and cash

had with the quality yield million parent year the fixed $XXX less an and X.X%. of invested a in approximately high of As of average life a AFG XXth, Annuity approximately from half June investments proceeds sale than of maturity

excess investments, insurance and ensures up within our excess As holding cash to agencies. debt maintain rating total borrowing subsidiaries reminder, capital a we to our that a to adjusted sum capacity define a ratio as commitments company of capital and we capital

this the special or can share excess AFG's dividends of growth distributed nearly $X.X beyond shareholders all available be is excess paid still internal capital and capital share and used the While per over of repurchases, $X within Monday staying $XXX special for in and week that to to debt repurchases share billion in million June, capital above second dividend of acquisitions, $XX for paid while restrictive million $XXX most the guideline. dividend quarter the special through our

excess to liquidity We and continue significant have XXXX and expect capital to beyond. throughout

in Specifically, expected rating of no in current maturities insurance are their projected levels our before the P&C by excess to agencies ratings capital have have XXXX. order subsidiaries debt we to maintain high and

any will now lines for We open the questions.

Operator

[Operator first KBW. the question line of Instructions] Our comes [Derek from Han] from

Unidentified Analyst

Property loss and I environment had we in expect Transportation the Should about there? of a question was to one-off year-over-year just items ratio and the segment. frequency normalizing sequentially. were that It looks continue XX.X% like core the there given or up some

Carl Lindner

last are I of aberrations year. that some economic probably and a year year you quarter the from had more a abnormally frequency this normal think in between standpoint to where lower back there second

I think of in that. guidance, our trends try loss our and prospective that bake all reviews we cost to to from knowledge in actuarial

guidance this one guidance our probably our Again, few we of companies be thoughtful. try like gives I very reflects detailed feelings. the so and think that we're And to

So suggest our look you I would guidance. to

I question. think answers that your

Unidentified Analyst

you of talked gears the I another of had temporary? you quarter, is how last from kind structural I commissions that if about in -- talk and strong much ratio there, about you it's had benefits any had ceding quarter, question this know too. of shifting strong a And bit. just quarter. whether that improvement XXX little bps, then expense about you a the Can versus

Brian Hertzman

there. is in the Yes, going through some earned our of growth is we coming things strong are of of are written on with couple a our One and premium of underwriting course portion do. that expenses A fixed. premium,

the based this and So of versus And receive of ceding volume as we're commissions, of based, profitability well, across some some do higher that we growing, that some we're last but year also are benefiting in year. then business there. from are commissions growth are businesses the which which seeing ceding

So fixed and commissions. the it's of growth expenses combination ceding a on the

Unidentified Analyst

if And could in squeeze more one question. I just

ratio by you the driven of by So expense X%. the How that improvement? guide is ratio lowered much combined

Brian Hertzman

it, at looking we're of we're a growth that. being Overall, seeing part big

So contributing. that is

We also with ratios. pleased are our very loss

Operator

Peters the line from next Our comes question Greg James. from of Raymond

Greg Peters

on first making, call highlighted I points you in their growing they Progressive their just the a the know of hosted I trucking bit for investor further So they but have, growth. little and one competitors, strategic of an specific outlook acquisition question won't And ago and were today. the Protective comment and just business

just step just could the back strong Progressive, you you if that you wonder forces comment strong see and on us profitability not through the give business? sense but growth. a I Obviously, competitive So given how working various reported

But fine. some doing perspective can give you us you're So there. maybe

Carl Lindner

I continues second in on business think far auto accounts both to the opportunities for correction commercial to in that. very particularly will first them strong to the and overall auto in larger our a market's start and been as mean I price we're that. as our commercial in equity as achieving direct projecting quarter a growth. mode, and start offer market, for that is happier slow I we're as increases on years. how strong And quarter. already there. there return And be can't after auto premium still that's I just had auto market ratio And in about digit commercial targets, continuing feel, continuing disruption last I double the get well be earlier, mentioned rate commercial as We in growth growth as And that's achieving the that. still in I written performing. year with our of combined And XX% we're

be used we years Progressive, far the Progressive. in shareholder as ago, largest second As to

be ability we better is whole short perspective kind probably the in think maybe is in the the neutral very to positive trying that serve. And Protective will marketplaces as my in to think, transaction, had, problems Protective us. of insurtechs, to auto an could to see I competitor. that I even And that do of they're I the we our as the a some on it the progressive than highly So don't believe more as far Progressive possibly term, as probably marketplace, of it's think have to grow I impact adverse marketplace would I transaction and the -- be correct going what commercial it the a or as market.

be So perspective. that my would

Greg Peters

versus your agree better technology Progressive on with a play. insurtechs. to I Much domain expert perspective be than a just

robust? cash, substantial it done the you -- market, a us property anything. looking your Would you that pipeline and excess robust sheet haven't Would capital, to as a Is just balance about characterize in you're M&A minute talk what you're on less at? it it and specifically you casualty? spend the With can you fairly seeing capital characterize

the terms in are some flavor just give excess of consider, out guys us maybe in you are So there. market willing to but well what the

Carl Lindner

I pretty normal that. things. this a We point opportunities steady of acquire see stream think it's to in at

As And we're at picky be can businesses. starting not to things but look have returns buy that we double-digit term you long accretive in like we a only that. can and pretty know, steady get

So both that's XX make a over or next to I start now. months businesses to some state XX so. normal opportunities think enthusiastic the our We're about right and acquisitions

Operator

from line from comes the of Paul question Piper Sandler. next Newsome Our

Paul Newsome

large do think the applies struggling how the companies, with insurance data -- investors the the companies as particularly outside the CPI how inflation, So the as it in we Could big like to that think the and -- to data weigh do that at should themes of the CPI casualty one looking of respect trends yours -- and sort inflationary maybe should to to view of component a at have looking think it think how what you that inside you impacts you see? companies then we should has we been interpret quarter inflation you to what it. or the about you

Carl Lindner

inflation trend social company meet but what current make case, each clearly, only current is. underwriting incentives through mean. if reviews off in of In directly picks profit. our rewards we most the not or the and weighters have of with to centrally trends based think different quarterly compensation in what loss a effectiveness, our the each have located it and addresses you I of long loss tied trend business where the what adjustments prospect understand loss -- I projections we on and bonuses business regular their leaders is go that, actuaries are And and prospective whose our

instance, comp in that as in at at our of look and and X.X%. instead our X.X% as be But instead things excluding the prospectively we if loss X%, -- business we overall a our X% would we For ratio loss like almost we case, that. X.X% manage company, prospective look like of exclude And X.X% comp when you actual excluding comp is trend that. how that in how in look trend approach would

X.X% a getting of Now against prospective increase. price we're year-to-date, trends XX% loss those numbers, the

and And XX% So we're number you exceeds increase prospective costs comps. then excluding X% workers' achieving that I use on price basis, excluding our loss that. we're when a obviously, that at getting year-to-date in look comp price

to that intelligently company think that. manage I through needs each and So effectively

I terms think in as our looking case, limits change. in the or mitigate other ways our policy policies we exposures of the at potentially things

before, in in at talked purchasing specialists severity of Recognizing trends I strategy Purchasing ago, auto, and others. having impacts Excluding some the And inflation. -- think we years the because the some as we transportation a as auto commercial included we about did exposures of or in us passenger different we're reinsurance would in from have our helps rate insulate that eighth at kind of social ninth of increase commercial I we're times. think you potentially about that. year quicker than recognized

So I think address a it as how company. that's we

I think so good. far so

addressing we're it think I effectively.

Paul Newsome

workers' a a color comp. bit for second on for environment Maybe question, little competitive the

turn about we've other a do Financial Group. What competitive bigger some to from think the finally? of are see workers' I perspective in a American And talked comp? you close for there we lines

Carl Lindner

reasonable environment I a today. competitive think it's those states, in

comp at the kind is ratios I We confuses business. me. there that declines California competitively that When everybody, one that's rate of year size place that for of the in the you and look think like over only on. accident up loss of the creeping market combined result, our workers' are I kind going question what's that time probably

is to overall for as accident I've results a -- profit profit been although small underwriting probably and or and higher year, expect calendar underwriting little two. the than last for we in overall even year But XXXX 'XX. good six year combined higher second to kind XXXX be year than of months talking last for our our continue We the quarter continue and ratio excellent,

probably comp the low and bit pricing scenario six have continue think premiums pricing previous different probably might yes, increasing. that, overall will And than months I the flattening 'XX than a to is I about expect to think which think -- I see year. forward into you that little be potentially the a down X%, do down digit, out very be same XXXX. our be single enthusiastic. for I going better will And for

Operator

of from Capital. Miller line comes Rudy next Our Miller question from the

Rudy Miller

I'd commend outstanding to quarter. like an

dividends As a [Technical appreciate special well clients. as shareholders our we consumer shareholder, think and as Difficulty]

the I do appreciated I questions. excess couple One smart approach comment of side, insurance over of money have the process selective years, that On have, the cash. we've of a had the other

term, to bit I it other today the I'm months, you've former the have hours the of employees one you last in saved kudos previously change I'll to how making dollars color here, the fireman the are a give people of questions to helicopter that. I their in companies at some of the that? you farming guys need a patterns your and that near bit I'd comments in over follow-up affected give weather is then year being buckets. results usually percentage stock usually term a have and climate floods, be to one really and question, you military and three medic to and You've hitting other with And could appears about long what's long little investments. of doing process. made that or to if with going any Street the year. from a of you, comment. to intelligence what employees a looking policy travel century the and you get to listen common pilot and been the for lot four about And of That's And or to little starting to you have and But And CDXX acquisitions the have this compared XX farming both record dollars that recognize like I before the how had or the and see with in the before having changing was appreciate time. on from for your I business. right I'm you the pleased and you've going dividends, spend I just about got having of very to acquisitions. not the a calls their I sophisticated the of two three and sense next you've don't to track with you Craig wait The find throughout been from Carl investments back the fires

Carl Lindner

was on wish would expert not. -- Carl. change, this I an wish climate was admit but I I I I in I'm is

person that So I regards to may with not to be the ask arena. whole best

I think in with crop year. the I mobile the government risk drought, to take think insurance regards have from standpoint, we to to we Western much program how up particular, want within ability each a [payroll] state-by-state choose

the we within and with as more program, the make the is, the we respect can or changes to choices our ability in take we have risk what there is can within less anticipation or program. are climate inherent drought So

our for of in central are we're that. the Western the generally, lighter think I Eastern states we belt some exposure than in crop, instance, in in in corn

wildfire of the a an are be wildfires sporadic adjusting we've there. going been event or be the of the or like terms to in we've nonprofit a the to past. event that think maybe goes, And that our think marine, business whether other of pricing, our and reflect things increased an in business parts appetite as in it or our I adjusted continual property our far I think As kind type versus case, of we more exposure

-- it than over adequately right or as that, think to and We we've in a catastrophe hurricanes to storms, that. coastal time. can chosen exposure major just property lower as related XX over hurricane peers you As a volatility to company years standpoint otherwise, as flood, relates price up don't a have or wrong far our from

he to can As that's estimate and however wants price believe Christians, wants, hard wherever that he time. God whatever do a a we thing over wants, on much

We lower catastrophe carefully. company, have a a exposures as coastal we than most. do volatility do write that we just So but

so I gives hope how that look insight at some And on things. you we

Rudy Miller

a And bring staff back learned still have how pandemic you or the you didn't I going ratio guys job cost I at how more through corona virus? what but… you in? you've I about your fantastic mean operations And And going the are office, returning have learned you people your fully know? what guys, that's that your mean to you and done you loaded forward have from know with events? about is out

Carl Lindner

one few in over our XX people effectively our to important the mean one planning thing I think learned good driven five over business disaster is people thing very technology I allow the our that last office a a recovery we months. we've really the business -- and yes. as with planning years, people did most past to lot assets, seamlessly as with of manage

I So lot. laud to give have have them and to the folks, leadership a HR technology information our and

event. and for technology run to that effectively we preparing our such the job business. they've And think had the good resources I the people an a have did needed

Brian Hertzman

effective I lot take Zoom and expense looking an that a meetings can conference think forward, that to There's that things perspective, occur we'll make can't with. way and a From that of that. in pause Zoom at something occur learned replace we've with be travel you communicate stakeholders. or something something an that to But a meeting has it's calls going over could like versus sure face-to-face

been mindful we've expenses over the we'll so So successful that remote. months travel past XX knowing our of with be

in staged of welcome plan is after so return return our Labor we the mid-May back office back the current the as work, far to and to Day. started to employees As all to work

Labor But hybrid we're when look now, Day. a going opportunity come the and we'd employees most at-home it's of with to also to after return our that schedule, while staged work normally So back. schedules a work including they more to staffed in-office being offer

safety Ultimately, and of the see So priority. to our put succeed. while working flexible empower top well-being employees to collaborate employees reconnect person, we arrangements our in of our importance and employees to the that we over remain want offering also

so back things forward, training working with going for will people really half maintaining from the some So been be successful any but And it it's At in. return-to-work especially moment, something a day, that just the corporate our we change on think perspective Day be and culture. strong in our have could but employees Labor after office full really must-have could before good really a we've us since far, we schedule. with the not and about staff be very the our will so

Rudy Miller

the installed noted as great out by people doing the thank for to Difficulty] CFO job. you Brian, I and financial Since metrics. here been want [Technical a you've of company, the

Operator

turn showing no Thank call this the I'm back Diane closing would to Weidner like further time, you. to I questions. At over for remarks.

Diane Weidner

joining Thank this you with everyone results. morning recap quarter share to has you, as forward we and a us We for Hope second of to great all next day. of our speaking thanks quarter. look you a again

Operator

Thanks call. participating. for conference concludes This today's

now may disconnect. You

American Financial (AFG) 4 Aug 212021 Q2 Earnings call transcript