8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 1, 2019

AMERICAN FINANCIAL GROUP, INC.

(Exact name of registrant as specified in its charter)

Ohio	1-13653	31-1544320
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

301 East Fourth Street, Cincinnati, OH	45202
(Address of principal executive offices)	(Zip Code)

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

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

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

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

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	AFG	New York Stock Exchange
6-1/4% Subordinated Debentures due September 30, 2054	AFGE	New York Stock Exchange
6% Subordinated Debentures due November 15, 2055	AFGH	New York Stock Exchange
5.875% Subordinated Debentures due March 30, 2059	AFGB	New York Stock Exchange

Section 2 - Financial Information

Item 2.02 Results Of Operations And Financial Condition.

Reference is made to the press release of American Financial Group, Inc. (the “Company”) relating to the announcement of the Company’s results of operations for the first quarter of 2019 and the availability of the Investor Supplement on the Company’s website. The press release was issued on May 1, 2019. A copy of the press release is attached to this Form 8-K as Exhibit 99.1 and a copy of the Investor Supplement is attached as Exhibit 99.2 and are incorporated herein by reference.

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

Section 8 - Other Events

Item 8.01 Other Events.

On April 30, 2019, the Board of Directors of the Company declared a special, one-time cash dividend of $1.50 per share of Company common stock payable on May 28, 2019 to shareholders of record on May 15, 2019.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(a) Financial statements of business acquired. Not applicable.

(b) Pro forma financial information. Not applicable.

(c) Shell company transactions. Not applicable

(d) Exhibits

Exhibit No.	Description
99.1	Earnings Release dated May 1, 2019, reporting American Financial Group Inc. results for the quarter ended March 31, 2019.
99.2	Investor Supplement – First Quarter 2019

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	AMERICAN FINANCIAL GROUP, INC.
Date: May 2, 2019
	By:	/s/ Karl J. Grafe
		Karl J. Grafe
		Vice President

3

EX-99.1

Exhibit 99.1

American Financial Group, Inc. Announces First Quarter Results

• Net earnings per share of $3.63; includes $1.61 per share in realized gains on securities

• Core net operating earnings of $2.02 per share

• First quarter annualized ROE of 25.9%; core operating ROE of 14.5%

• Announced special cash dividend of $1.50 per share, payable May 28, 2019

• Full year 2019 core net operating earnings guidance maintained at $8.35 - $8.85 per share

CINCINNATI – May 1, 2019 – American Financial Group, Inc. (NYSE: AFG) today reported 2019 first quarter net earnings attributable to shareholders of $329 million ($3.63 per share) compared to $145 million ($1.60 per share) for the 2018 first quarter. Net earnings for the quarter include $145 million ($1.61 per share) in after-tax net realized gains on securities, including $127 million ($1.40 per share) in holding gains to adjust equity securities to fair value. By comparison, the 2018 first quarter included $74 million ($0.82 per share) in after-tax net realized losses on securities. Other details may be found in the table below. Book value per share was $63.20 as of March 31, 2019. Annualized return on equity was 25.9% and 12.3% for the first quarters of 2019 and 2018, respectively.

Core net operating earnings were $184 million ($2.02 per share) for the 2019 first quarter, compared to $219 million ($2.42 per share) in the 2018 first quarter. Lower operating profitability was primarily the result of lower year-over-year earnings in our Annuity Segment, due to the impact of fair value accounting on fixed indexed annuities (FIAs). Book value per share, excluding unrealized gains related to fixed maturities, was $58.02 per share at March 31, 2019, up 6% from year end. Core net operating earnings for the first quarters of 2019 and 2018 generated annualized returns on equity of 14.5% and 18.6%, respectively.

The Company also announced today that its Board of Directors has declared a special cash dividend of $1.50 per share of American Financial Group common stock payable on May 28, 2019 to shareholders of record on May 15, 2019. This special dividend is in addition to the Company’s regular quarterly cash dividend of $0.40 per share most recently paid on April 25, 2019.

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

Page 1

In millions, except per share amounts	Three months ended March 31,
	2019			2018
Components of net earnings attributable to shareholders:
Core operating earnings before income taxes	$	229		$	267
Pretax non-core item:
Realized gains (losses) on securities		184			(93	)
Earnings before income taxes		413			174
Provision (credit) for income taxes:
Core operating earnings		48			52
Non-core item:
Realized gains (losses) on securities		39			(19	)
Total provision for income taxes		87			33
Net earnings, including noncontrolling interests		326			141
Less net earnings (losses) attributable to noncontrolling interests:
Core operating earnings		(3	)		(4	)
Non-core item		—			—
Total net earnings (losses) attributable to noncontrolling interests		(3	)		(4	)
Net earnings attributable to shareholders	$	329		$	145
Net earnings:
Core net operating earnings(a)	$	184		$	219
Realized gains (losses) on securities		145			(74	)
Net earnings attributable to shareholders	$	329		$	145
Components of Earnings Per Share:
Core net operating earnings(a)	$	2.02		$	2.42
Realized gains (losses) on securities		1.61			(0.82	)
Diluted Earnings Per Share	$	3.63		$	1.60

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

S. Craig Lindner and Carl H. Lindner III, AFG’s Co-Chief Executive Officers, commented: “The year is off to a good start, as our core insurance businesses continue to perform very well. We reported strong operating earnings in our Specialty P&C operations and pretax earnings before fair value accounting in our Annuity Segment that established a new all-time quarterly high. Our diversified portfolio of Specialty P&C and annuity businesses generated an annualized core operating return on equity of 14.5% in the quarter.

“AFG had approximately $1.1 billion of excess capital (including parent company cash of approximately $215 million) at March 31, 2019. Where appropriate, our excess capital will be deployed into AFG’s core businesses as we identify potential for healthy, profitable organic growth, and opportunities to expand our specialty niche businesses through acquisitions and start-ups that meet our target return thresholds. In addition, returning capital to shareholders in the form of regular and special cash dividends and opportunistic share repurchases are also an important and effective component of our capital management strategy. The $1.50 per share special cash dividend announced today (approximately $135 million) reflects AFG’s strong financial position and our confidence in the Company’s financial future.

“We continue to expect core net operating earnings in 2019 to be between $8.35 and $8.85 per share. Our core earnings per share guidance excludes non-core items such as realized gains and losses, as well as other significant items that are not able to be estimated with reasonable precision, or that may not be indicative of ongoing operations.”

Specialty Property and Casualty Insurance Operations

Core operating earnings in AFG’s P&C insurance operations were $185 million in the first quarter of 2019, compared to $188 million in the prior year period.

The Specialty P&C insurance operations generated an underwriting profit of $88 million in the 2019 first quarter, compared to $92 million in the first quarter of 2018, a decrease of 4%. Higher underwriting profitability in our Property and Transportation Group was more than offset by lower underwriting profit in our Specialty Casualty and Specialty Financial Groups.

Page 2

The first quarter 2019 combined ratio of 92.5% increased 0.8% from the prior year period. First quarter 2019 results include 4.0 points of favorable prior year reserve development, compared to 5.1 points of favorable development in the comparable prior year period. Catastrophe losses were 1.1 points of the combined ratio in the first quarter of 2019; by comparison, catastrophe losses added 1.2 points in the prior year period.

Gross and net written premiums were up 5% and 4%, respectively, in the 2019 first quarter compared to the same quarter a year earlier primarily the result of growth within our Property and Transportation and Specialty Casualty Groups. Average renewal pricing across our entire P&C Group was up approximately 1% for the quarter. Excluding our workers’ compensation business, renewal pricing was up slightly more than 4%, an improvement from renewal rate increases achieved in 2018. Further details about AFG’s Specialty P&C operations may be found in the accompanying schedules.

The Property and Transportation Group reported an underwriting profit of $39 million in the first quarter of 2019 compared to $33 million in the first quarter of 2018. Higher underwriting profit in our transportation businesses was partially offset by lower underwriting profit in our agricultural, property & inland marine and ocean marine businesses, as well as our Singapore Branch. Catastrophe losses in this group were $9 million in the first quarter of 2019 and $5 million in the comparable 2018 period.

First quarter 2019 gross and net written premiums in this group were 3% and 6% higher, respectively, than the comparable prior year period. The growth in gross written premiums is primarily attributable to new business opportunities in our transportation businesses. Overall renewal rates in this group increased 4% in the first quarter of 2019, an improvement from renewal rate increases achieved in 2018.

The Specialty Casualty Group reported an underwriting profit of $36 million in the first quarter of 2019 compared to $41 million in the comparable 2018 period. Higher profitability in our targeted markets businesses was more than offset by lower underwriting profit in our excess & surplus lines and workers’ compensation businesses. Despite lower year-over-year profit in our workers’ compensation operations, these businesses achieved excellent underwriting margins. Catastrophe losses for this group were $1 million in the first quarter of 2019 and $5 million in the comparable 2018 period.

Gross and net written premiums for the first quarter of 2019 were up 7% and 5%, respectively, compared to the same period in 2018. Higher year-over-year gross written premiums within Neon, resulting from the growth of its portfolio in targeted classes of business, the addition of premiums from ABA Insurance Services, as well as improved pricing and higher retentions in our excess and surplus lines businesses, were the primary drivers of the higher premiums. Lower premiums in our workers’ compensation businesses partially offset this growth. A change in Neon’s reinsurance program resulted in proportionally higher cessions of Neon’s premiums during the 2019 first quarter compared to the first quarter of 2018. Renewal pricing for this group was down 1% during the first quarter. Excluding rate decreases in our workers’ compensation businesses, renewal rates in this group were up 5%, an improvement from renewal rate increases achieved in 2018.

The Specialty Financial Group reported an underwriting profit of $13 million in the first quarter of 2019, compared to $15 million in the comparable 2018 period. The decrease was driven primarily by lower underwriting profitability in our financial institutions business. Catastrophe losses for this group were $2 million in the first quarter of 2019, compared to a $3 million in the prior year quarter.

First quarter 2019 gross written premiums were up 3% and net written premiums were down 2%, when compared to the prior year period, primarily as a result of higher premiums in our fidelity and crime business, which were offset by lower premiums in our surety and lending and leasing businesses. Renewal pricing in this group was up approximately 3% for the quarter.

Page 3

Carl Lindner III stated, “Our Specialty P&C Group performed very well during the first quarter, with strong underwriting margins, healthy year-over-year growth in net written premiums and renewal pricing that is exceeding our objectives. Based on results during the first quarter, we continue to expect an overall 2019 calendar year combined ratio in the range of 92% to 94% and net written premiums to be flat to up 3% when compared to the $5 billion reported in 2018.”

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

Annuity Segment

As shown in the following table, AFG’s Annuity Segment reported $90 million in pretax earnings in the first quarter of 2019, compared to $125 million in the first quarter of 2018. Earnings before the impact of fair value accounting for fixed-indexed annuities (FIAs) were $134 million in the first quarter of 2019, a 20% increase over the prior year period and a new all-time quarterly high for the Annuity Segment.

Components of Annuity Earnings Before Income Taxes
Dollars In millions	Three months ended March 31,						Pct. Change
	2019			2018
Components of earnings before fair value (“FV”) accounting for FIAs:
Pretax earnings before items below	$	89		$	84			6	% (1)
Investments marked to market through core operating earnings		26			29			(10	%)
Impact of stock market on liability for guaranteed benefits (2)		14			(1	)		nm
Impact of stock market on DAC and sales inducements (3)		5			—			nm
Pretax Annuity earnings before FV accounting		134			112			20	%
Components of Impact of FV accounting:
Interest accreted on embedded derivative		(10	)		(7	)		43	% (4)
Increase (decrease) in stock market		15			(2	)		nm
Higher (lower) than expected changes in interest rates		(45	)		27			nm
Other		(4	)		(5	)		nm
Impact of fair value accounting for FIAs		(44	)		13			nm
Total pretax annuity earnings	$	90		$	125			(28	%)
Yield on investments marked to market through core operating earnings		10.9	%		14.9	%
Increase (decrease) in S&P 500 (2)		13	%		(1	%)
Change in average of 5 year and 15 year Corporate A2 rates		(0.49	%)		0.44	%
Year over year growth in quarterly average invested assets		12	%		10	%

1 Reflects primarily growth in AFG’s annuity business, partially offset by the unfavorable impact of higher crediting rates and option costs.

2 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 on this liability; decreases in the stock market will generally have an unfavorable impact.

3 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.

4 Reflects growth in AFG’s fixed-indexed annuity business and higher short term interest rates.

Page 4

Annuity Earnings Before Fair Value Accounting for FIAs – Annuity Earnings Before Fair Value Accounting for FIAs were a quarterly record of $134 million in the first quarter of 2019, driven by growth in the business and the favorable impact of a very strong stock market, partially offset by the unfavorable impact of higher crediting rates and option costs.

Impact of Fair Value Accounting for FIAs – Under GAAP, a portion of the reserves for FIAs ($3.2 billion and $2.5 billion at March 31, 2019 and 2018, respectively) is considered an embedded derivative and is recorded at fair value based on the estimated present value of certain expected future cash flows. Assumptions used in calculating this fair value amount include projected interest rates, option costs, surrenders, withdrawals and mortality. Variances from these assumptions, as well as changes in the stock market, will generally result in a change in fair value. Items such as changes in interest rates and the performance of the stock market are not economic in nature for the current reporting period, but rather impact the timing of reported results.

The impact of fair value accounting for FIAs includes an ongoing expense for annuity interest accreted on the FIA embedded derivative reserve. The amount of interest accreted in any period is generally based on the size of the embedded derivative and current interest rates. We expect both the size of the embedded derivative and interest rates to rise, resulting in continued increases in interest on the embedded derivative liability.

In the first quarter of 2019, Corporate A2 rates decreased by approximately 49 basis points, compared to the year-end market expectation (as indicated by the forward curve) that they would increase. This difference contributed to a significant unfavorable fair value accounting impact of $45 million ($0.39 per share). By comparison, a 13% increase in the S&P 500 Index contributed to a favorable fair value accounting impact of $15 million ($0.13 per share) for the first quarter of 2019, as shown in the table above. The majority of the impact of these two items is non-economic and is expected to reverse over time. By comparison, in the first quarter of 2018, the benefit of significantly higher than expected interest rates was minimally offset by the impact of a decrease in the stock market.

For additional analysis of fair value accounting, see our Quarterly Investor Supplement, which is posted on AFG’s website.

Annuity Premiums – AFG’s Annuity Segment reported statutory premiums of $1.40 billion in the first quarter of 2019, compared to $1.15 billion in the first quarter of 2018, an increase of 22%; this increase was driven by higher sales of traditional fixed annuities in the financial institutions channel. However, as a result of decreases in market interest rates over the last several months, AFG has implemented several rate decreases to its annuity products, which are expected to slow sales.

Craig Lindner stated, “I am pleased to report record annuity earnings before the impact of fair value accounting for FIAs in the first quarter of 2019, providing a strong start for the Annuity Segment. Although we are pleased that premiums have grown by 22% year-over-year, interest rates have declined recently, which we expect will temper new sales as we remain committed to achieving appropriate returns on new business.”

2019 Annuity Outlook – Due to the strong stock market performance to date in 2019, AFG is raising its guidance for full year Pretax Annuity Earnings Before Fair Value Accounting by $10 million, to a range of $445 million to $475 million in 2019. However, due to the impact of decreases in market interest rates to date in 2019, AFG expects that its Pretax Annuity Earnings (including the impact of fair value accounting) will remain as previously forecasted, in the range of $365 million to $425 million in 2019.

This guidance assumes (i) interest rates and the stock market rise moderately for the remainder of 2019, (ii) more normalized income from certain investments required to be marked to market through earnings, and (iii) a lower impact in 2019 from unusual investment income items such as prepayment of fixed income securities. Fluctuations in these items could lead to significant positive or negative impacts on the Annuity Segment’s results.

Page 5

AFG is modifying its previously announced 2019 Annuity premium guidance based on annuity sales through the first four months of the year; however, recently implemented rate decreases on its annuity products and a focus on pricing discipline are expected to temper new sales. As a result, AFG now expects its 2019 annuity sales to be flat to down slightly from its record $5.4 billion of premiums in 2018.

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

Investments and Recently Adopted Accounting Standards

AFG recorded first quarter 2019 net realized gains on securities of $145 million ($1.61 per share) after tax and after deferred acquisition costs (DAC), which included $127 million ($1.40 per share) in after-tax, after-DAC holding gains to adjust equity securities to fair value. By comparison, AFG recorded net realized losses of $74 million ($0.82 per share) in the comparable 2018 period.

Unrealized gains on fixed maturities were $464 million after tax and after DAC at March 31, 2019, an increase of $381 million since year end. Our portfolio continues to be high quality, with 91% of our fixed maturity portfolio rated investment grade and 98% with a National Association of Insurance Commissioners’ designation of NAIC 1 or 2, its highest two categories.

For the three months ended March 31, 2019, P&C net investment income was approximately 4% higher than the comparable 2018 period.

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

About American Financial Group, Inc.

American Financial Group is an insurance holding company, based in Cincinnati, Ohio with assets of approximately $65 billion. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of traditional fixed, fixed-indexed and variable-indexed annuities in the retail, financial institutions, broker-dealer and registered investment advisor markets. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.

Forward Looking Statements

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

Page 6

Actual results and/or financial condition could differ materially from those contained in or implied by such forward-looking statements for a variety of reasons including, but not limited to: changes in financial, political and economic conditions, including changes in interest and inflation rates, currency fluctuations and extended economic recessions or expansions in the U.S. and/or abroad; performance of securities markets, including the cost of equity index options; new legislation or declines in credit quality or credit ratings that could have a material impact on the valuation of securities in AFG’s investment portfolio; the availability of capital; changes in insurance law or regulation, including changes in statutory accounting rules and changes in regulation of the Lloyd’s market, including modifications to the establishment of capital requirements for and approval of business plans for syndicate participation; changes in the legal environment affecting AFG or its customers; tax law and accounting changes, including the impact of recent changes in U.S. corporate tax law; levels of natural catastrophes and severe weather, terrorist activities (including any nuclear, biological, chemical or radiological events), incidents of war or losses resulting from civil unrest and other major losses; disruption caused by cyber-attacks or other technology breaches or failures by AFG or its business partners and service providers, which could negatively impact AFG’s businesses and/or expose AFG to litigation; development of insurance loss reserves and establishment of other reserves, particularly with respect to amounts associated with asbestos and environmental claims; availability of reinsurance and ability of reinsurers to pay their obligations; trends in persistency and mortality; competitive pressures; the ability to obtain adequate rates and policy terms; changes in AFG’s credit ratings or the financial strength ratings assigned by major ratings agencies to AFG’s operating subsidiaries; the impact of the conditions in the international financial markets and the global economy relating to AFG’s international operations; and other factors identified in AFG’s filings with the Securities and Exchange Commission.

The forward-looking statements herein are made only as of the date of this press release. The Company assumes no obligation to publicly update any forward-looking statements.

Conference Call

The Company will hold a conference call to discuss 2019 first quarter results at 11:30 a.m. (ET) tomorrow, Thursday, May 2, 2019. Toll-free telephone access will be available by dialing 1-877-459-8719 (international dial-in 424-276-6843). The conference ID for the live call is 2099628. Please dial in five to ten minutes prior to the scheduled start time of the call.

A replay will be available approximately two hours following the completion of the call and will remain available until 11:59 p.m. (ET) on May 9, 2019. To listen to the replay, dial 1-855-859-2056 (international dial-in 404-537-3406) and provide the conference ID 2099628.

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

An archived webcast will be available immediately after the call via the same link on our website until May 9, 2019 at 11:59 p.m. (ET). An archived audio MP3 file will be available within 24 hours of the call.

Contact:

Diane P. Weidner, IRC

Asst. Vice President – Investor Relations

(513) 369-5713

Page 7

Websites:

www.AFGinc.com

www.GreatAmericanInsuranceGroup.com

# # #

(Financial summaries follow)

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

AFG19-09

Page 8

AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES

SUMMARY OF EARNINGS AND SELECTED BALANCE SHEET DATA

(In Millions, Except Per Share Data)

	Three months ended March 31,
	2019			2018
Revenues
P&C insurance net earned premiums	$	1,173		$	1,107
Life, accident & health net earned premiums		6			6
Net investment income		542			495
Realized gains (losses) on securities		184			(93	)
Income (loss) of managed investment entities:
Investment income		69			58
Loss on change in fair value of assets/liabilities		—			(3	)
Other income		50			49
Total revenues		2,024			1,619
Costs and expenses
P&C insurance losses & expenses		1,091			1,022
Annuity, life, accident & health benefits & expenses		348			275
Interest charges on borrowed money		16			15
Expenses of managed investment entities		55			48
Other expenses		101			85
Total costs and expenses		1,611			1,445
Earnings before income taxes		413			174
Provision for income taxes		87			33
Net earnings including noncontrolling interests		326			141
Less: Net earnings (losses) attributable to noncontrolling interests		(3	)		(4	)
Net earnings attributable to shareholders	$	329		$	145
Diluted earnings per Common Share	$	3.63		$	1.60
Average number of diluted shares		90.7			90.4

Selected Balance Sheet Data:	March 31, 2019		December 31, 2018
Total cash and investments	$	51,040	$	48,498
Long-term debt	$	1,423	$	1,302
Shareholders’ equity(b)	$	5,665	$	4,970
Shareholders’ equity (excluding unrealized gains/losses related to fixed maturities)(b)	$	5,201	$	4,898
Book value per share	$	63.20	$	55.66
Book value per share (excluding unrealized gains/losses related to fixed maturities)	$	58.02	$	54.86
Common Shares Outstanding		89.6		89.3

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

Page 9

AMERICAN FINANCIAL GROUP, INC.

SPECIALTY P&C OPERATIONS

(Dollars in Millions)

	Three months ended March 31,						Pct. Change
	2019			2018
Gross written premiums	$	1,535		$	1,458			5	%
Net written premiums	$	1,147		$	1,102			4	%
Ratios (GAAP):
Loss & LAE ratio		58.9	%		57.8	%
Underwriting expense ratio		33.6	%		33.9	%
Specialty Combined Ratio		92.5	%		91.7	%
Combined Ratio – P&C Segment		92.6	%		91.8	%
Supplemental Information:(c)
Gross Written Premiums:
Property & Transportation	$	439		$	426			3	%
Specialty Casualty		912			853			7	%
Specialty Financial		184			179			3	%
	$	1,535		$	1,458			5	%
Net Written Premiums:
Property & Transportation	$	344		$	324			6	%
Specialty Casualty		626			594			5	%
Specialty Financial		145			148			(2	%)
Other		32			36			(11	%)
	$	1,147		$	1,102			4	%
Combined Ratio (GAAP):
Property & Transportation		89.0	%		90.4	%
Specialty Casualty		94.2	%		92.9	%
Specialty Financial		91.4	%		90.2	%
Aggregate Specialty Group		92.5	%		91.7	%

	Three months ended March 31,
	2019			2018
Reserve Development (Favorable) / Adverse:
Property & Transportation	$	(26	)	$	(18	)
Specialty Casualty		(13	)		(35	)
Specialty Financial		(6	)		(3	)
Other Specialty		(1	)		(1	)
	$	(46	)	$	(57	)
Points on Combined Ratio:
Property & Transportation		(7.2	)		(5.1	)
Specialty Casualty		(2.2	)		(6.0	)
Specialty Financial		(4.3	)		(1.8	)
Aggregate Specialty Group		(4.0	)		(5.1	)
Total P&C Segment		(3.9	)		(5.0	)

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

Page 10

AMERICAN FINANCIAL GROUP, INC.

ANNUITY SEGMENT

(Dollars in Millions)

Components of Statutory Premiums

	Three months ended March 31,				Pct. Change
	2019		2018
Annuity Premiums:
Financial Institutions	$	768	$	518		48	%
Retail		330		315		5	%
Broker-Dealer		233		262		(11	%)
Pension Risk Transfer		10		—		nm
Education Market		49		46		7	%
Variable Annuities		5		7		(29	%)
Total Annuity Premiums	$	1,395	$	1,148		22	%

Components of Annuity Earnings Before Income Taxes

	Three months ended March 31,				Pct. Change
	2019		2018
Revenues:
Net investment income	$	435	$	394		10	%
Other income		27		26		4	%
Total revenues		462		420		10	%
Costs and Expenses:
Annuity benefits		311		182		71	%
Acquisition expenses		26		81		(68	%)
Other expenses		35		32		9	%
Total costs and expenses		372		295		26	%
Annuity earnings before income taxes	$	90	$	125		(28	%)

Supplemental Annuity Information

	Three months ended March 31,
	2019			2018
Net interest spread*		2.59	%		2.75	%
Net spread earned before fair value accounting for FIAs*		1.43	%		1.38	%
Impact of fair value accounting for FIAs		(0.47	%)		0.16	%
Net spread earned after impact of fair value accounting for FIAs*		0.96	%		1.54	%

* Excludes fixed annuity portion of variable annuity business.

Page 11

AMERICAN FINANCIAL GROUP, INC.

Notes to Financial Schedules

a) Components of core net operating earnings (in millions):

	Three months ended March 31,
	2019			2018
Core Operating Earnings before Income Taxes:
P&C insurance segment	$	185		$	188
Annuity segment, before fair value accounting for FIAs		134			112
Impact of fair value accounting for FIAs		(44	)		13
Interest & other corporate expense *		(43	)		(42	)
Core operating earnings before income taxes		232			271
Related income taxes		48			52
Core net operating earnings	$	184		$	219

* Other Corporate Expense includes income and expenses associated with AFG‘s run-off businesses.

b) Shareholders’ Equity at March 31, 2019 includes $464 million ($5.18 per share) in unrealized after-tax gains on fixed maturities. Shareholder’s Equity at December 31, 2018 includes $83 million ($0.93 per share) in unrealized after-tax gains on fixed maturities and $11 million ($0.13 per share) in unrealized after-tax losses on fixed maturity-related cash flow hedges.

c) Supplemental Notes:

• Property & Transportation includes primarily physical damage and liability coverage for buses, trucks and recreational vehicles, inland and ocean marine, agricultural-related products and other commercial property coverages.

• Specialty Casualty includes primarily excess and surplus, general liability, executive liability, professional liability, umbrella and excess liability, specialty coverages in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance.

• Specialty Financial includes risk management insurance programs for lending and leasing institutions (including equipment leasing and collateral and lender-placed mortgage property insurance), surety and fidelity products and trade credit insurance.

• Other includes an internal reinsurance facility.

Page 12

EX-99.2

Exhibit 99.2

	American Financial Group, Inc. Investor Supplement - First Quarter 2019
	May 1, 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 - First Quarter 2019

Section	Page
Table of Contents - Investor Supplement - First 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 (GAAP)		12
Components of Annuity Earnings Before Income Taxes (net of amortization of DAC, sales inducement costs and other related items)		13
Detail of Annuity Benefits Expense (GAAP)		14
Net Spread on Fixed Annuities (GAAP)		15
Statutory Annuity Premiums		16
Fixed Annuity Benefits Accumulated (GAAP)		17
Guaranteed Minimum Interest Rate Analysis		18
Annuity Earnings Guidance		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
Investments Marked-to-Market Through Investment Income and Investments Accounted For Using the Equity Method		26
Fixed Maturities - By Security Type - AFG Consolidated		27
Fixed Maturities - By Security Type Portfolio		28
Fixed Maturities - Credit Rating		29
Mortgage-Backed Securities - AFG Consolidated		30
Mortgage-Backed Securities Portfolio		31
Mortgage-Backed Securities - Credit Rating		32
Appendix
A. Fixed Maturities - Credit Rating by Type		33

Page 2

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

	Three Months Ended															Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/18			12/31/17
Highlights
Net earnings (loss)	$	329		$	(29	)	$	204		$	210		$	145		$	530		$	475
Core net operating earnings		184			159			198			185			219			761			588
Total assets		66,132			63,456			64,190			61,834			60,656			63,456			60,658
Adjusted shareholders’ equity (a)		5,201			4,898			5,103			4,920			4,865			4,898			4,724
Property and Casualty net written premiums		1,147			1,208			1,456			1,257			1,102			5,023			4,751
Annuity statutory premiums		1,395			1,482			1,378			1,399			1,148			5,407			4,341
Per share data
Diluted earnings per share	$	3.63		$	(0.33	)	$	2.26		$	2.31		$	1.60		$	5.85		$	5.28
Core net operating earnings per share		2.02			1.75			2.19			2.04			2.42			8.40			6.55
Adjusted book value per share (a)		58.02			54.86			57.22			55.24			54.74			54.86			53.51
Cash dividends per common share		0.4000			1.9000			0.3500			1.8500			0.3500			4.4500			4.7875
Financial ratios
Annualized return on equity (b)		25.9	%		(2.3	%)		16.3	%		17.1	%		12.3	%		10.9	%		10.3	%
Annualized core operating return on equity (b)		14.5	%		12.6	%		15.8	%		15.1	%		18.6	%		15.6	%		12.7	%
Property and Casualty combined ratio - Specialty:
Loss & LAE ratio		58.9	%		62.7	%		64.3	%		59.7	%		57.8	%		61.3	%		62.9	%
Underwriting expense ratio		33.6	%		29.3	%		31.4	%		34.0	%		33.9	%		32.1	%		30.2	%
Combined ratio - Specialty		92.5	%		92.0	%		95.7	%		93.7	%		91.7	%		93.4	%		93.1	%
Net spread on fixed annuities:
Net interest spread		2.59	%		2.58	%		2.67	%		2.81	%		2.75	%		2.70	%		2.62	%
Net spread earned:
Before impact of fair value accounting and unlockings		1.43	%		0.81	%		1.37	%		1.46	%		1.38	%		1.26	%		1.34	%
Impact of fair value accounting (c)		(0.47	%)		(0.52	%)		(0.02	%)		0.04	%		0.16	%		(0.10	%)		(0.10	%)
Unlockings		0.00	%		(0.04	%)		0.00	%		(0.32	%)		0.00	%		(0.09	%)		(0.01	%)
After impact of fair value accounting and unlockings		0.96	%		0.25	%		1.35	%		1.18	%		1.54	%		1.07	%		1.23	%

(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.

(c) Change in fair value of derivatives and the estimated net offsets to deferred sales inducements, deferred policy acquisition costs and related reserves.

Page 3

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

	Three Months Ended															Twelve Months Ended
	3/31/19			12/31/18			09/30/18			06/30/18			3/31/18			12/31/18			12/31/17
Property and Casualty Insurance
Underwriting profit	$	87		$	101		$	56		$	72		$	91		$	320		$	313
Net investment income		104			115			108			115			100			438			362
Other income (expense)		(6	)		(2	)		(6	)		(7	)		(3	)		(18	)		(15	)
Property and Casualty Insurance operating earnings		185			214			158			180			188			740			660
Annuity earnings		90			20			117			99			125			361			380
Interest expense of parent holding companies		(16	)		(16	)		(15	)		(16	)		(15	)		(62	)		(85	)
Other expense		(27	)		(13	)		(22	)		(32	)		(27	)		(94	)		(92	)
Pre-tax core operating earnings		232			205			238			231			271			945			863
Income tax expense		48			46			40			46			52			184			275
Core net operating earnings		184			159			198			185			219			761			588
Non-core items, net of tax:
Realized gains (losses) on securities		145			(188	)		27			25			(74	)		(210	)		3
Special A&E charges:
Property and Casualty Insurance run-off operations		—			—			(14	)		—			—			(14	)		(58	)
Former Railroad and Manufacturing operations		—			—			(7	)		—			—			(7	)		(16	)
Neon exited lines charge		—			—			—			—			—			—			18
Tax benefit related to Neon restructuring		—			—			—			—			—			—			56
Tax expense related to change in U.S. corporate tax rate		—			—			—			—			—			—			(83	)
Loss on retirement of debt		—			—			—			—			—			—			(33	)
Net earnings	$	329		$	(29	)	$	204		$	210		$	145		$	530		$	475

Page 4

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

	Three Months Ended													Twelve Months Ended
	3/31/19		12/31/18			9/30/18			6/30/18		3/31/18			12/31/18			12/31/17
Core net operating earnings	$	184	$	159		$	198		$	185	$	219		$	761		$	588
Net earnings	$	329	$		(29)	$	204		$	210	$	145		$	530		$	475
Average number of diluted shares - core		90.695		90.668			90.731			90.663		90.431	#		90.626			89.812
Average number of diluted shares - net		90.695		89.278			90.731			90.663		90.431			90.626			89.812
Diluted earnings per share:
Core net operating earnings per share	$	2.02	$	1.75		$	2.19		$	2.04	$	2.42	#	$	8.40		$	6.55
Realized gains (losses) on securities		1.61		(2.08	)		0.31			0.27		(0.82	)		(2.31	)		0.03
Special A&E charges:
Property and Casualty Insurance run-off operations		—		—			(0.16	)		—		—			(0.16	)		(0.64	)
Former Railroad and Manufacturing operations		—		—			(0.08	)		—		—			(0.08	)		(0.18	)
Neon exited lines charge		—		—			—			—		—			—			0.19
Tax benefit related to Neon restructuring		—		—			—			—		—			—			0.62
Tax expense related to change in U.S. corporate tax rate		—		—			—			—		—			—			(0.92	)
Loss on retirement of debt		—		—			—			—		—			—			(0.37	)
Diluted earnings per share	$	3.63	$	(0.33	)	$	2.26		$	2.31	$	1.60		$	5.85		$	5.28

Page 5

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

	Three Months Ended															Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/18			12/31/17
Property and Transportation	$	39		$	64		$	—		$	23		$	33		$	120		$	154
Specialty Casualty		36			22			49			29			41			141			104
Specialty Financial		13			20			9			22			15			66			61
Other Specialty		—			(4	)		(3	)		(1	)		3			(5	)		(2	)
Underwriting profit - Specialty		88			102			55			73			92			322			317
Other core charges, included in loss and LAE		1			1			(1	)		1			1			2			4
Underwriting profit - Core		87			101			56			72			91			320			313
Special A&E charges, included in loss and LAE		—			—			(18	)		—			—			(18	)		(89	)
Neon exited lines charge, included in loss and LAE		—			—			—			—			—			—			18
Underwriting profit (loss) - Property and Casualty Insurance	$	87		$	101		$	38		$	72		$	91		$	302		$	242
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	(1	)	$	3		$	—		$	—		$	2		$	10
Catastrophe loss		12			39			35			16			13			103			140
Total current accident year catastrophe losses	$	12		$	38		$	38		$	16		$	13		$	105		$	150
Prior year loss reserve development (favorable) / adverse	$	(45	)	$	(61	)	$	(31	)	$	(44	)	$	(56	)	$	(192	)	$	(64	)
Combined ratio:
Property and Transportation		89.0	%		86.5	%		100.0	%		93.9	%		90.4	%		93.1	%		91.0	%
Specialty Casualty		94.2	%		96.5	%		92.1	%		95.1	%		92.9	%		94.2	%		95.2	%
Specialty Financial		91.4	%		85.5	%		94.4	%		85.6	%		90.2	%		88.9	%		89.4	%
Other Specialty		98.9	%		112.3	%		103.0	%		105.5	%		90.7	%		103.7	%		102.7	%
Combined ratio - Specialty		92.5	%		92.0	%		95.7	%		93.7	%		91.7	%		93.4	%		93.1	%
Other core charges		0.1	%		0.0	%		0.0	%		0.0	%		0.1	%		0.0	%		0.1	%
Neon exited lines charge, loss and LAE		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		(0.4	%)
Special A&E charges		0.0	%		0.0	%		1.5	%		0.0	%		0.0	%		0.4	%		1.9	%
Combined ratio		92.6	%		92.0	%		97.2	%		93.7	%		91.8	%		93.8	%		94.7	%
Combined ratio excl. catastrophe and prior year development		95.4	%		93.7	%		96.8	%		96.2	%		95.6	%		95.7	%		93.1	%
Loss and LAE components - property and casualty insurance
Current accident year, excluding catastrophe loss		61.8	%		64.4	%		65.4	%		62.2	%		61.7	%		63.6	%		62.9	%
Prior accident year loss reserve development		(3.9	%)		(4.7	%)		(2.2	%)		(3.9	%)		(5.0	%)		(4.0	%)		(1.4	%)
Current accident year catastrophe loss		1.1	%		3.0	%		2.6	%		1.4	%		1.2	%		2.1	%		3.0	%
Loss and LAE ratio		59.0	%		62.7	%		65.8	%		59.7	%		57.9	%		61.7	%		64.5	%

Page 6

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

	Three Months Ended															Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/18			12/31/17
Gross written premiums	$	1,535		$	1,613		$	2,104		$	1,665		$	1,458		$	6,840		$	6,502
Ceded reinsurance premiums		(388	)		(405	)		(648	)		(408	)		(356	)		(1,817	)		(1,751	)
Net written premiums		1,147			1,208			1,456			1,257			1,102			5,023			4,751
Change in unearned premiums		26			62			(129	)		(96	)		5			(158	)		(172	)
Net earned premiums		1,173			1,270			1,327			1,161			1,107			4,865			4,579
Loss and LAE		691			796			855			692			640			2,983			2,880
Underwriting expense		394			372			417			396			375			1,560			1,382
Underwriting profit	$	88		$	102		$	55		$	73		$	92		$	322		$	317
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	(1	)	$	3		$	—		$	—		$	2		$	10
Catastrophe loss		12			39			35			16			13			103			140
Total current accident year catastrophe losses	$	12		$	38		$	38		$	16		$	13		$	105		$	150
Prior year loss reserve development (favorable) / adverse	$	(46	)	$	(61	)	$	(49	)	$	(45	)	$	(57	)	$	(212	)	$	(139	)
Combined ratio:
Loss and LAE ratio		58.9	%		62.7	%		64.3	%		59.7	%		57.8	%		61.3	%		62.9	%
Underwriting expense ratio		33.6	%		29.3	%		31.4	%		34.0	%		33.9	%		32.1	%		30.2	%
Combined ratio		92.5	%		92.0	%		95.7	%		93.7	%		91.7	%		93.4	%		93.1	%
Combined ratio excl. catastrophe and prior year development		95.4	%		93.7	%		96.8	%		96.2	%		95.6	%		95.7	%		93.1	%
Loss and LAE components:
Current accident year, excluding catastrophe loss		61.8	%		64.4	%		65.4	%		62.2	%		61.7	%		63.6	%		62.9	%
Prior accident year loss reserve development		(4.0	%)		(4.7	%)		(3.7	%)		(3.9	%)		(5.1	%)		(4.4	%)		(3.0	%)
Current accident year catastrophe loss		1.1	%		3.0	%		2.6	%		1.4	%		1.2	%		2.1	%		3.0	%
Loss and LAE ratio		58.9	%		62.7	%		64.3	%		59.7	%		57.8	%		61.3	%		62.9	%

Page 7

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

	Three Months Ended															Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/18			12/31/17
Gross written premiums	$	439		$	651		$	953		$	615		$	426		$	2,645		$	2,688
Ceded reinsurance premiums		(95	)		(203	)		(393	)		(193	)		(102	)		(891	)		(923	)
Net written premiums		344			448			560			422			324			1,754			1,765
Change in unearned premiums		17			31			(34	)		(48	)		26			(25	)		(54	)
Net earned premiums		361			479			526			374			350			1,729			1,711
Loss and LAE		225			327			406			239			220			1,192			1,172
Underwriting expense		97			88			120			112			97			417			385
Underwriting profit	$	39		$	64		$	—		$	23		$	33		$	120		$	154
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	(1	)	$	1		$	—		$	—		$	—		$	2
Catastrophe loss		9			(1	)		12			10			5			26			36
Total current accident year catastrophe losses	$	9		$	(2	)	$	13		$	10		$	5		$	26		$	38
Prior year loss reserve development (favorable) / adverse	$	(26	)	$	(7	)	$	(4	)	$	(21	)	$	(18	)	$	(50	)	$	(40	)
Combined ratio:
Loss and LAE ratio		62.2	%		68.2	%		77.1	%		63.8	%		63.0	%		69.0	%		68.5	%
Underwriting expense ratio		26.8	%		18.3	%		22.9	%		30.1	%		27.4	%		24.1	%		22.5	%
Combined ratio		89.0	%		86.5	%		100.0	%		93.9	%		90.4	%		93.1	%		91.0	%
Combined ratio excl. catastrophe and prior year development		93.6	%		88.2	%		98.5	%		96.8	%		94.1	%		94.4	%		91.2	%
Loss and LAE components:
Current accident year, excluding catastrophe loss		66.8	%		69.9	%		75.6	%		66.7	%		66.7	%		70.3	%		68.7	%
Prior accident year loss reserve development		(7.2	%)		(1.5	%)		(0.8	%)		(5.6	%)		(5.1	%)		(2.8	%)		(2.3	%)
Current accident year catastrophe loss		2.6	%		(0.2	%)		2.3	%		2.7	%		1.4	%		1.5	%		2.1	%
Loss and LAE ratio		62.2	%		68.2	%		77.1	%		63.8	%		63.0	%		69.0	%		68.5	%

Page 8

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

	Three Months Ended															Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/18			12/31/17
Gross written premiums	$	912		$	778		$	956		$	858			853		$	3,445		$	3,087
Ceded reinsurance premiums		(286	)		(197	)		(261	)		(219	)		(259	)		(936	)		(807	)
Net written premiums		626			581			695			639			594			2,509			2,280
Change in unearned premiums		3			32			(79	)		(44	)		(15	)		(106	)		(94	)
Net earned premiums		629			613			616			595			579			2,403			2,186
Loss and LAE		388			389			364			378			345			1,476			1,410
Underwriting expense		205			202			203			188			193			786			672
Underwriting profit	$	36		$	22		$	49		$	29		$	41		$	141		$	104
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	1		$	—		$	—		$	1		$	6
Catastrophe loss		1			28			11			1			5			45			71
Total current accident year catastrophe losses	$	1		$	28		$	12		$	1		$	5		$	46		$	77
Prior year loss reserve development (favorable) / adverse	$	(13	)	$	(52	)	$	(37	)	$	(15	)	$	(35	)	$	(139	)	$	(86	)
Combined ratio:
Loss and LAE ratio		61.6	%		63.5	%		59.2	%		63.4	%		59.5	%		61.5	%		64.5	%
Underwriting expense ratio		32.6	%		33.0	%		32.9	%		31.7	%		33.4	%		32.7	%		30.7	%
Combined ratio		94.2	%		96.5	%		92.1	%		95.1	%		92.9	%		94.2	%		95.2	%
Combined ratio excl. catastrophe and prior year development		96.3	%		100.3	%		96.4	%		97.5	%		97.9	%		98.1	%		95.9	%
Loss and LAE components:
Current accident year, excluding catastrophe loss		63.7	%		67.3	%		63.5	%		65.8	%		64.5	%		65.4	%		65.2	%
Prior accident year loss reserve development		(2.2	%)		(8.5	%)		(6.0	%)		(2.5	%)		(6.0	%)		(5.8	%)		(4.0	%)
Current accident year catastrophe loss		0.1	%		4.7	%		1.7	%		0.1	%		1.0	%		1.9	%		3.3	%
Loss and LAE ratio		61.6	%		63.5	%		59.2	%		63.4	%		59.5	%		61.5	%		64.5	%

Page 9

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

	Three Months Ended															Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/18			12/31/17
Gross written premiums	$	184		$	184		$	195		$	192			179		$	750		$	727
Ceded reinsurance premiums		(39	)		(42	)		(42	)		(33	)		(31	)		(148	)		(131	)
Net written premiums		145			142			153			159			148			602			596
Change in unearned premiums		1			(1	)		(4	)		—			1			(4	)		(20	)
Net earned premiums		146			141			149			159			149			598			576
Loss and LAE		56			51			60			54			60			225			227
Underwriting expense		77			70			80			83			74			307			288
Underwriting profit	$	13		$	20		$	9		$	22		$	15		$	66		$	61
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	1		$	—		$	—		$	1		$	2
Catastrophe loss		2			10			12			3			3			28			30
Total current accident year catastrophe losses	$	2		$	10		$	13		$	3		$	3		$	29		$	32
Prior year loss reserve development (favorable) / adverse	$	(6	)	$	(7	)	$	(8	)	$	(8	)	$	(3	)	$	(26	)	$	(21	)
Combined ratio:
Loss and LAE ratio		38.2	%		36.4	%		40.1	%		33.9	%		40.2	%		37.6	%		39.4	%
Underwriting expense ratio		53.2	%		49.1	%		54.3	%		51.7	%		50.0	%		51.3	%		50.0	%
Combined ratio		91.4	%		85.5	%		94.4	%		85.6	%		90.2	%		88.9	%		89.4	%
Combined ratio excl. catastrophe and prior year development		94.3	%		83.6	%		91.5	%		89.0	%		90.2	%		88.6	%		87.8	%
Loss and LAE components:
Current accident year, excluding catastrophe loss		41.1	%		34.5	%		37.2	%		37.3	%		40.2	%		37.3	%		37.8	%
Prior accident year loss reserve development		(4.3	%)		(5.2	%)		(5.1	%)		(5.4	%)		(1.8	%)		(4.4	%)		(3.6	%)
Current accident year catastrophe loss		1.4	%		7.1	%		8.0	%		2.0	%		1.8	%		4.7	%		5.2	%
Loss and LAE ratio		38.2	%		36.4	%		40.1	%		33.9	%		40.2	%		37.6	%		39.4	%

Page 10

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

	Three Months Ended															Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/18			12/31/17
Gross written premiums	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Ceded reinsurance premiums		32			37			48			37			36			158			110
Net written premiums		32			37			48			37			36			158			110
Change in unearned premiums		5			—			(12	)		(4	)		(7	)		(23	)		(4	)
Net earned premiums		37			37			36			33			29			135			106
Loss and LAE		22			29			25			21			15			90			71
Underwriting expense		15			12			14			13			11			50			37
Underwriting profit (loss)	$	—		$	(4	)	$	(3	)	$	(1	)	$	3		$	(5	)	$	(2	)
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe loss		—			2			—			2			—			4			3
Total current accident year catastrophe losses	$	—		$	2		$	—		$	2		$	—		$	4		$	3
Prior year loss reserve development (favorable) / adverse	$	(1	)	$	5		$	—		$	(1	)	$	(1	)	$	3		$	8
Combined ratio:
Loss and LAE ratio		59.7	%		76.5	%		65.5	%		68.7	%		51.3	%		66.4	%		66.9	%
Underwriting expense ratio		39.2	%		35.8	%		37.5	%		36.8	%		39.4	%		37.3	%		35.8	%
Combined ratio		98.9	%		112.3	%		103.0	%		105.5	%		90.7	%		103.7	%		102.7	%
Combined ratio excl. catastrophe and prior year development		100.8	%		95.6	%		103.7	%		99.6	%		96.6	%		99.0	%		93.0	%

Page 11

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

	Three Months Ended														Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18		12/31/18			12/31/17
Net investment income	$	435		$	419		$	413		$	412		$	394	$	1,638		$	1,458
Guaranteed withdrawal benefit fees		16			17			16			16			16		65			60
Policy charges and other miscellaneous income		11			10			11			11			10		42			43
Total revenues		462			446			440			439			420		1,745			1,561
Annuity benefits		311			334			222			260			182		998			892
Acquisition expenses		26			56			69			49			81		255			168
Other expenses		35			36			32			31			32		131			121
Total costs and expenses		372			426			323			340			295		1,384			1,181
Annuity earnings before income taxes	$	90		$	20		$	117		$	99		$	125	$	361		$	380
Detail of Annuity earnings before income taxes (see additional detail on page 13)
Earnings before income taxes, impact of fair value accounting and unlockings	$	134		$	71		$	119		$	123		$	112	$	425		$	416
Impact of fair value accounting		(44	)		(47	)		(2	)		3			13		(33	)		(33	)
Total pretax annuity earnings before unlockings		90			24			117			126			125		392			383
Unlockings		—			(4	)		—			(27	)		—		(31	)		(3	)
Annuity earnings before income taxes	$	90		$	20		$	117		$	99		$	125	$	361		$	380

Page 12

American Financial Group, Inc. Components of Annuity Earnings Before Income Taxes (net of amortization of DAC, sales inducement costs and other related items) ($ in millions)

	Three Months Ended															Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/18			12/31/17
Components of earnings before fair value (“FV”) accounting for FIAs:
Pretax earnings before items below	$	89		$	85		$	83		$	87		$	84		$	339		$	346
Investments marked to market through core operating earnings		26			16			26			33			29			104			49
Impact of stock market on liability for guaranteed benefits (a)		14			(22	)		7			2			(1	)		(14	)		14
Impact of stock market on DAC and sales inducements (b)		5			(8	)		3			1			—			(4	)		7
Pretax Annuity earnings before FV accounting (c)	$	134		$	71		$	119		$	123		$	112		$	425		$	416
Components of Impact of FV accounting:
Interest accreted on Embedded Derivative liability	$	(10	)	$	(11	)	$	(10	)	$	(8	)	$	(7	)	$	(36	)	$	(16	)
Increase (decrease) in stock market		15			(27	)		12			6			(2	)		(11	)		29
Higher (lower) than expected changes in interest rates		(45	)		(4	)		(2	)		12			27			33			(50	)
Other		(4	)		(5	)		(2	)		(7	)		(5	)		(19	)		4
Impact of FV accounting, as reported (c)	$	(44	)	$	(47	)	$	(2	)	$	3		$	13		$	(33	)	$	(33	)
Total pretax annuity earnings before unlockings (c)	$	90		$	24		$	117		$	126		$	125		$	392		$	383
Yield on investments marked to market through core operating earnings		10.9	%		7.1	%		11.7	%		16.4	%		14.9	%		12.4	%		8.2	%
Increase (decrease) in S&P 500 (a)		13	%		(14	%)		7	%		3	%		(1	%)		(6	%)		19	%
Change in average 5 year and 15 year Corporate A2 rates		(0.49	%)		(0.07	%)		0.09	%		0.25	%		0.44	%		0.71	%		(0.13	%)
Year over year growth in average invested assets		12	%		12	%		10	%		10	%		10	%		10	%		11	%

(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.

(c) See page 19 for general rules of thumb related to earnings sensitivity from changes in the S&P 500, changes in market interest rates, and incremental yields on investments marked to market through core operating earnings.

Page 13

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

	Three Months Ended															Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/18			12/31/17
Detail of annuity benefits expense:
Interest credited - fixed	$	194		$	186		$	179		$	173		$	166		$	704		$	633
Interest credited - fixed component of variable annuities		1			1			1			2			1			5			5
Change in expected death and annuitization reserve		4			4			5			4			4			17			18
Amortization of sales inducements		3			4			5			5			5			19			19
Guaranteed withdrawal benefit reserve:
Impact of change in stock market		(14	)		22			(7	)		(2	)		1			14			(14	)
Accretion of benefits and other		21			24			25			21			22			92			81
Change in other benefit reserves		7			8			10			11			8			37			45
Unlockings (a)		—			5			—			54			—			59			35
Subtotal before impact of fair value accounting		216			254			218			268			207			947			822
Embedded derivative mark-to-market (b)		462			(490	)		223			82			(63	)		(248	)		564
Equity option mark-to-market		(367	)		570			(219	)		(90	)		38			299			(494	)
Subtotal impact in fair value accounting		95			80			4			(8	)		(25	)		51			70
Total annuity benefits expense	$	311		$	334		$	222		$	260		$	182		$	998		$	892

(a) Includes unlockings for fixed indexed annuity embedded derivative reserves, sales inducement asset and other reserves. Does not include unlocking income of $28 million in 2018 and $32 million in 2017 for deferred policy acquisition costs and unearned revenue reserves. These unlockings are included in acquisition expenses and other income. In total, AFG recorded an unlocking expense of $31 million in 2018 and $3 million in 2017.

(b) Excludes unlocking impact of $44 million in 2018 and $25 million in 2017.

Page 14

American Financial Group, Inc. Net Spread on Fixed Annuities (GAAP) ($ in millions)

	Three Months Ended															Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/18			12/31/17
Average fixed annuity investments (at amortized cost) (a)	$	36,991		$	35,993		$	34,955		$	33,935		$	33,002		$	34,471		$	31,250
Average annuity benefits accumulated		37,078			36,103			35,226			34,165			33,329			34,706			31,526
Annuity benefits accumulated in excess of investments (a)	$	(87	)	$	(110	)	$	(271	)	$	(230	)	$	(327	)	$	(235	)	$	(276	)
As % of average annuity benefits accumulated (except as noted)
Net investment income (as % of investments)		4.68	%		4.64	%		4.70	%		4.83	%		4.74	%		4.73	%		4.63	%
Interest credited		(2.09	%)		(2.06	%)		(2.03	%)		(2.02	%)		(1.99	%)		(2.03	%)		(2.01	%)
Net interest spread on fixed annuities		2.59	%		2.58	%		2.67	%		2.81	%		2.75	%		2.70	%		2.62	%
Policy charges and other miscellaneous income		0.08	%		0.08	%		0.09	%		0.10	%		0.10	%		0.10	%		0.11	%
Other annuity benefit expenses, net		(0.04	%)		(0.51	%)		(0.24	%)		(0.27	%)		(0.29	%)		(0.33	%)		(0.28	%)
Acquisition expenses		(0.28	%)		(0.59	%)		(0.76	%)		(0.89	%)		(0.94	%)		(0.79	%)		(0.62	%)
Other expenses		(0.36	%)		(0.38	%)		(0.36	%)		(0.35	%)		(0.38	%)		(0.37	%)		(0.37	%)
Change in fair value of derivatives		(1.03	%)		(0.89	%)		(0.05	%)		0.10	%		0.30	%		(0.15	%)		(0.22	%)
Unlockings		0.00	%		(0.04	%)		0.00	%		(0.32	%)		0.00	%		(0.09	%)		(0.01	%)
Net spread earned on fixed annuities		0.96	%		0.25	%		1.35	%		1.18	%		1.54	%		1.07	%		1.23	%
Average annuity benefits accumulated	$	37,078		$	36,103		$	35,226		$	34,165		$	33,329		$	34,706		$	31,526
Net spread earned on fixed annuities		0.96	%		0.25	%		1.35	%		1.18	%		1.54	%		1.07	%		1.23	%
Earnings on fixed annuity benefits accumulated	$	89		$	22		$	119		$	101		$	128		$	370		$	387
Annuity benefits accumulated in excess of investments	$	(87	)	$	(110	)	$	(271	)	$	(230	)	$	(327	)	$	(235	)	$	(276	)
Net investment income (as % of investments)		4.68	%		4.64	%		4.70	%		4.83	%		4.74	%		4.73	%		4.63	%
Earnings/(loss) on annuity benefits accumulated in excess of investments	$	(1	)	$	(1	)	$	(3	)	$	(3	)	$	(4	)	$	(11	)	$	(13	)
Variable annuity earnings (includes unlockings)		2			(1	)		1			1			1			2			6
Earnings before income taxes	$	90		$	20		$	117		$	99		$	125		$	361		$	380
Detail of net spread earned on fixed annuities
Net spread earned - before impact of fair value accounting and unlockings		1.43	%		0.81	%		1.37	%		1.46	%		1.38	%		1.26	%		1.34	%
Change in fair value of derivatives		(1.03	%)		(0.89	%)		(0.05	%)		0.10	%		0.30	%		(0.15	%)		(0.22	%)
Estimated net offsets to deferred sales inducements, deferred policy acquisition costs and related reserves		0.56	%		0.37	%		0.03	%		(0.06	%)		(0.14	%)		0.05	%		0.12	%
Unlockings		0.00	%		(0.04	%)		0.00	%		(0.32	%)		0.00	%		(0.09	%)		(0.01	%)
Net spread earned - after impact of fair value accounting and unlockings		0.96	%		0.25	%		1.35	%		1.18	%		1.54	%		1.07	%		1.23	%

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

Page 15

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

	Three Months Ended										Twelve Months Ended
	3/31/19		12/31/18		9/30/18		6/30/18		3/31/18		12/31/18		12/31/17
Retail single premium annuities - indexed	$	301	$	392	$	354	$	378	$	294	$	1,418	$	990
Retail single premium annuities - fixed		29		27		17		22		21		87		70
Broker dealer single premium annuities - indexed		227		335		322		355		259		1,271		733
Broker dealer single premium annuities - fixed		6		4		3		4		3		14		7
Financial institutions single premium annuities - indexed		424		455		460		448		413		1,776		1,711
Financial institutions single premium annuities - fixed		344		142		114		131		105		492		622
Pension risk transfer (PRT)		10		75		56		1		—		132		6
Education market - fixed and indexed annuities		49		46		46		54		46		192		174
Subtotal fixed annuity premiums		1,390		1,476		1,372		1,393		1,141		5,382		4,313
Variable annuities		5		6		6		6		7		25		28
Total annuity premiums	$	1,395	$	1,482	$	1,378	$	1,399	$	1,148	$	5,407	$	4,341
Summary by Distribution Channel:
Retail	$	330	$	419	$	371	$	400	$	315	$	1,505	$	1,060
Broker dealer		233		339		325		359		262		1,285		740
Financial institutions		768		597		574		579		518		2,268		2,333
Other		64		127		108		61		53		349		208
Total annuity premiums	$	1,395	$	1,482	$	1,378	$	1,399	$	1,148	$	5,407	$	4,341
Summary by Product Type:
Total indexed	$	980	$	1,211	$	1,164	$	1,213	$	992	$	4,580	$	3,523
Total fixed		410		265		208		180		149		802		790
Variable		5		6		6		6		7		25		28
Total annuity premiums	$	1,395	$	1,482	$	1,378	$	1,399	$	1,148	$	5,407	$	4,341

Page 16

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

	Three Months Ended															Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/18			12/31/17
Beginning fixed annuity reserves	$	36,431		$	35,774		$	34,678		$	33,652		$	33,005		$	33,005		$	29,647
Premiums		1,390			1,476			1,372			1,393			1,141			5,382			4,313
Federal Home Loan Bank (“FHLB”) advances (paydowns)		—			225			—			—			—			225			(64	)
Surrenders, benefits and other withdrawals		(761	)		(796	)		(707	)		(706	)		(627	)		(2,836	)		(2,246	)
Interest and other annuity benefit expenses:
Interest credited		194			186			179			173			166			704			633
Embedded derivative mark-to-market		462			(490	)		223			82			(63	)		(248	)		564
Change in other benefit reserves		8			52			29			29			30			140			117
Unlockings		—			4			—			55			—			59			41
Ending fixed annuity reserves	$	37,724		$	36,431		$	35,774		$	34,678		$	33,652		$	36,431		$	33,005
Reconciliation to annuity benefits accumulated:
Ending fixed annuity reserves	$	37,724		$	36,431		$	35,774		$	34,678		$	33,652		$	36,431		$	33,005
Impact of unrealized investment gains on reserves		108			10			8			32			71			10			133
Fixed component of variable annuities		174			175			176			176			178			175			178
Annuity benefits accumulated per balance sheet	$	38,006		$	36,616		$	35,958		$	34,886		$	33,901		$	36,616		$	33,316
Annualized surrenders and other withdrawals as a % of beginning reserves		8.4	%		8.9	%		8.2	%		8.4	%		7.6	%		8.6	%		7.6	%
Rider reserves included in ending fixed annuity reserves above	$	478		$	472		$	428		$	411		$	381		$	472		$	358
Embedded Derivative liability included in ending fixed annuity reserves above	$	3,247		$	2,720		$	3,105		$	2,776		$	2,549		$	2,720		$	2,542

Page 17

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

	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/17
GMIR
1 - 1.99%		79	%		79	%		78	%		78	%		77	%		76	%
2 - 2.99%		4	%		4	%		4	%		4	%		5	%		5	%
3 - 3.99%		8	%		8	%		9	%		9	%		9	%		10	%
4.00% and above		9	%		9	%		9	%		9	%		9	%		9	%
Annuity Benefits Accumulated	$	38,006		$	36,616		$	35,958		$	34,886		$	33,901		$	33,316
Traditional Fixed and FIA Surrender Value (a) (b)	$	29,163		$	27,842		$	27,434		$	26,502		$	25,582		$	25,138
Ability to Lower Average Crediting Rates by (a) (c)		1.20	%		1.19	%		1.16	%		1.09	%		1.00	%		0.92	%
Pretax earnings impact of crediting guaranteed minimums (a)	$	350		$	331		$	317		$	288		$	255		$	230
(assumes net DAC impact over time = $0)

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

(b) FIA Surrender Value include Host + Embedded Derivatives + Fixed Account values.

(c) Weighted Average Crediting Rate less GMIR

Page 18

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

Earnings Sensitivities

(Incremental Changes are Versus Amounts Assumed in Guidance)

Incremental

Guidance as provided

+/- 1% Yield on

in conjunction

Partnerships,

with AFG’s

Midpoint

Incremental

Incremental

Private Equities,

1st Quarter

of

+/- 1%

+/-10bps change in

Mark-to-Market

Earnings Release

Guidance

S&P 500 (a) (b)

Interest Rates (b) (c)

Investments (a)

Pretax Annuity Earnings (Before Impact of Fair Value Accounting for FIAs)

$

445

to

$

475

$

460

~ +/- $1mm to $2mm

~ +/- $8mm

Implied Fair Value Accounting Impact

(80

)

to

(50

)

(65

)

~ +/- $1mm to $2mm

~ +/- $8mm to $10mm

Pretax Annuity Earnings, As Reported

$

365

to

$

425

$

395

~ +/- $2mm to $4mm

~ +/- $8mm to $10mm

~ +/- $8mm

(a) Current guidance assumptions related to Pretax Annuity Earnings (Before Impact of Fair Value Accounting for FIAs), as provided in conjunction with AFG’s 1st Quarter Earnings Release:

* Assumes 20% increase in stock market in 2019 (see additional information on page 13)

* Assumes 8% to 9% yield on partnerships, private equities and investments marked to market in last 3 quarters of 2019 (see additional information on page 26)

(b) Current guidance assumptions related to Impact of Fair Value Accounting for FIAs, as provided in conjunction with AFG’s 1st Quarter Earnings Release:

* Assumes 20% increase in stock market in 2019

* Assumes 10 to 20 bp increase in average of 5 year and 15 year Corporate A2 rate in last 3 quarters of 2019

* See additional information on page 13

(c) Assumes parallel shift in rates (primarily Corporate A2 rates)

Page 19

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

	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/17
Assets:
Total cash and investments	$	51,040		$	48,498		$	47,841		$	46,779		$	45,949		$	46,048
Recoverables from reinsurers		3,258			3,349			3,352			3,073			3,173			3,369
Prepaid reinsurance premiums		636			610			717			645			614			600
Agents’ balances and premiums receivable		1,283			1,234			1,299			1,266			1,113			1,146
Deferred policy acquisition costs		1,447			1,682			1,669			1,582			1,417			1,216
Assets of managed investment entities		4,786			4,700			4,998			5,032			5,090			4,902
Other receivables		1,011			1,090			1,633			1,048			918			1,030
Variable annuity assets (separate accounts)		610			557			650			636			632			644
Other assets		1,854			1,529			1,832			1,574			1,551			1,504
Goodwill		207			207			199			199			199			199
Total assets	$	66,132		$	63,456		$	64,190		$	61,834		$	60,656		$	60,658
Liabilities and Equity:
Unpaid losses and loss adjustment expenses	$	9,623		$	9,741		$	9,670		$	9,093		$	9,193		$	9,678
Unearned premiums		2,605			2,595			2,740			2,539			2,413			2,410
Annuity benefits accumulated		38,006			36,616			35,958			34,886			33,901			33,316
Life, accident and health reserves		632			635			643			647			656			658
Payable to reinsurers		730			752			932			721			661			743
Liabilities of managed investment entities		4,593			4,512			4,807			4,840			4,869			4,687
Long-term debt		1,423			1,302			1,302			1,301			1,301			1,301
Variable annuity liabilities (separate accounts)		610			557			650			636			632			644
Other liabilities		2,245			1,774			2,324			2,087			1,847			1,887
Total liabilities	$	60,467		$	58,484		$	59,026		$	56,750		$	55,473		$	55,324
Redeemable noncontrolling interests	$	—		$	—		$	—		$	—		$	—		$	3
Shareholders’ equity:
Common stock	$	90		$	89		$	89		$	89		$	89		$	88
Capital surplus		1,256			1,245			1,231			1,220			1,205			1,181
Retained earnings		3,875			3,588			3,800			3,628			3,584			3,248
Unrealized gains - equities		—			—			—			—			—			221
Unrealized gains - fixed maturities		464			83			93			191			342			619
Unrealized gains (losses) - fixed maturity-related cash flow hedges		—			(11	)		(32	)		(27	)		(24	)		(13	)
Other comprehensive income, net of tax		(20	)		(24	)		(17	)		(17	)		(13	)		(14	)
Total shareholders’ equity		5,665			4,970			5,164			5,084			5,183			5,330
Noncontrolling interests		—			2			—			—			—			1
Total liabilities and equity	$	66,132		$	63,456		$	64,190		$	61,834		$	60,656		$	60,658

Page 20

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

	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/17
Shareholders’ equity	$	5,665		$	4,970		$	5,164		$	5,084		$	5,183		$	5,330
Unrealized (gains) related to fixed maturities		(464	)		(72	)		(61	)		(164	)		(318	)		(606	)
Adjusted shareholders’ equity		5,201			4,898			5,103			4,920			4,865			4,724
Goodwill		(207	)		(207	)		(199	)		(199	)		(199	)		(199	)
Intangibles		(51	)		(54	)		(31	)		(34	)		(36	)		(26	)
Tangible adjusted shareholders’ equity	$	4,943		$	4,637		$	4,873		$	4,687		$	4,630		$	4,499
Common shares outstanding		89.638			89.292			89.189			89.072			88.881			88.275
Book value per share:
Book value per share	$	63.20		$	55.66		$	57.90		$	57.08		$	58.32		$	60.38
Adjusted (a)		58.02			54.86			57.22			55.24			54.74			53.51
Tangible, adjusted (b)		55.14			51.93			54.64			52.63			52.10			50.95
Market capitalization
AFG’s closing common share price	$	96.21		$	90.53		$	110.97		$	107.33		$	112.22		$	108.54
Market capitalization	$	8,624		$	8,084		$	9,897		$	9,560		$	9,974		$	9,581
Price / Adjusted book value ratio		1.66			1.65			1.94			1.94			2.05			2.03

(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)

	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/17
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			300			300			300			300			300
Total principal amount of long-term debt	$	1,443		$	1,318		$	1,318		$	1,318		$	1,318		$	1,318
Shareholders’ equity		5,665			4,970			5,164			5,084			5,183			5,330
Noncontrolling interests (including redeemable NCI)		—			2			—			—			—			4
Less:
Unrealized (gains) related to fixed maturity investments		(464	)		(72	)		(61	)		(164	)		(318	)		(606	)
Total adjusted capital	$	6,644		$	6,218		$	6,421		$	6,238		$	6,183		$	6,046
Ratio of debt to total adjusted capital:
Including subordinated debt		21.7	%		21.2	%		20.5	%		21.1	%		21.3	%		21.8	%
Excluding subordinated debt		15.3	%		16.4	%		15.9	%		16.3	%		16.5	%		16.8	%

Page 22

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

	Three Months Ended										Twelve Months Ended
	3/31/19		12/31/18		9/30/18		6/30/18		3/31/18		12/31/18		12/31/17
Property and Casualty Insurance
Paid Losses (GAAP)	$	704	$	719	$	614	$	629	$	640	$	2,602	$	2,528

	3/31/19		12/31/18		9/30/18		6/30/18		3/31/18		12/31/2017
Statutory Surplus
Property and Casualty Insurance	$	3,041	$	2,867	$	2,885	$	2,797	$	2,781	$	2,729
AFG’s principal annuity subsidiaries (total adjusted capital)	$	3,035	$	3,015	$	2,703	$	2,511	$	2,442	$	2,442
Allowable dividends without regulatory approval
Property and Casualty Insurance	$	529	$	529	$	563	$	563	$	563	$	563
Annuity and Run-off		768		768		263		263		263		263
Total	$	1,297	$	1,297	$	826	$	826	$	826	$	826

Page 23

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

	Carrying Value - March 31, 2019
	Property and				Parent and							% of
	Casualty		Annuity and		Other Non-		Consolidate			Total AFG		Investment
	Insurance		Run-off		Insurance		CLOs			Consolidated		Portfolio
Total cash and investments:
Cash and cash equivalents	$	1,055	$	716	$	229	$	—		$	2,000		4	%
Fixed maturities - Available for sale		8,041		35,379		11		—			43,431		85	%
Fixed maturities - Trading		54		53		—		—			107		0	%
Equity securities		1,110		762		58		—			1,930		4	%
Investments accounted for using the equity method		578		862		—		—			1,440		3	%
Mortgage loans		292		786		—		—			1,078		2	%
Policy loans		—		172		—		—			172		0	%
Equity index call options		—		620		—		—			620		1	%
Real estate and other investments		133		278		43		(192	)		262		1	%
Total cash and investments	$	11,263	$	39,628	$	341	$	(192	)	$	51,040		100	%
	Carrying Value - December 31, 2018
	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	$	1,007	$	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															Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/18			12/31/17
Property and Casualty Insurance:
Gross Investment Income
Fixed maturities - Available for sale	$	77		$	74		$	72		$	72		$	66		$	284		$	258
Fixed maturities - Trading		1			1			—			2			—			3			3
Equity securities - dividends		13			11			13			11			13			48			51
Equity securities - MTM		2			9			(1	)		5			—			13			—
Equity in investees		3			14			16			18			17			65			27
AFG managed CLOs		3			(1	)		1			1			1			2			7
Other investments (a)		7			10			9			8			5			32			26
Gross investment income		106			118			110			117			102			447			372
Investment expenses		(2	)		(3	)		(2	)		(2	)		(2	)		(9	)		(10	)
Total net investment income	$	104		$	115		$	108		$	115		$	100		$	438		$	362
Average cash and investments (b)	$	10,997		$	10,651		$	10,388		$	10,346		$	10,422		$	10,497		$	9,948
Average yield (c)		3.78	%		4.32	%		4.16	%		4.45	%		3.84	%		4.17	%		3.64	%
Fixed Annuity
Gross Investment Income
Fixed maturities - Available for sale	$	384		$	376		$	361		$	350		$	338		$	1,425		$	1,314
Equity securities - dividends		9			9			6			7			8			30			22
Equity securities - MTM		3			2			—			11			—			13			—
Equity in investees		18			19			25			23			29			96			37
AFG managed CLOs		8			(3	)		3			3			2			5			16
Other investments (a)		15			18			19			19			17			73			70
Gross investment income		437			421			414			413			394			1,642			1,459
Investment expenses		(4	)		(4	)		(3	)		(3	)		(3	)		(13	)		(11	)
Total net investment income	$	433		$	417		$	411		$	410		$	391		$	1,629		$	1,448
Average cash and investments (b)	$	36,991		$	35,993		$	34,955		$	33,935		$	33,002		$	34,471		$	31,250
Average yield (c)		4.68	%		4.64	%		4.70	%		4.83	%		4.74	%		4.73	%		4.63	%
AFG consolidated net investment income:
Property & Casualty	$	104		$	115		$	108		$	115		$	100		$	438		$	362
Annuity:
Fixed Annuity		433			417			411			410			391			1,629			1,448
Variable Annuity		2			2			2			2			3			9			10
Parent & other		14			4			10			7			4			25			34
Consolidate CLOs		(11	)		4			(4	)		(4	)		(3	)		(7	)		(23	)
Total net investment income	$	542		$	542		$	527		$	530		$	495		$	2,094		$	1,831

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

	Three Months Ended															Twelve Months Ended
	3/31/19			12/31/18			9/30/18			6/30/18			3/31/18			12/31/18			12/31/17
Property and Casualty Insurance:
Net Investment Income
Equity securities MTM through investment income (a)	$	2		$	9		$	(1	)	$	5		$	—		$	13		$	—
Investments accounted for using the equity method (b)		3			14			16			18			17			65			27
AFG managed CLOs (eliminated in consolidation)		3			(1	)		1			1			1			2			7
Total Property & Casualty	$	8		$	22		$	16		$	24		$	18		$	80		$	34
Investments
Equity securities MTM through investment income (a)	$	52		$	50		$	40		$	40		$	31		$	50		$	27
Investments accounted for using the equity method (b)		578			557			520			475			440			557			402
AFG managed CLOs (eliminated in consolidation)		57			56			57			57			66			56			64
Total Property & Casualty	$	687		$	663		$	617		$	572		$	537		$	663		$	493
Annualized Yield - Property & Casualty		4.7	%		13.8	%		10.8	%		17.3	%		14.0	%		13.9	%		7.9	%
Fixed Annuity:
Net Investment Income
Equity securities MTM through investment income (a)	$	3		$	2		$	—		$	11		$	—		$	13		$	—
Investments accounted for using the equity method (b)		18			19			25			23			29			96			37
AFG managed CLOs (eliminated in consolidation)		8			(3	)		3			3			2			5			16
Total Fixed Annuity	$	29		$	18		$	28		$	37		$	31		$	114		$	53
Investments
Equity securities MTM through investment income (a)	$	88		$	84		$	79		$	79		$	57		$	84		$	49
Investments accounted for using the equity method (b)		862			817			769			719			657			817			590
AFG managed CLOs (eliminated in consolidation)		136			132			134			135			155			132			151
Total Fixed Annuity	$	1,086		$	1,033		$	982		$	933		$	869		$	1,033		$	790
Annualized Yield - Fixed Annuity		10.9	%		7.1	%		11.7	%		16.4	%		14.9	%		12.4	%		8.2	%
Combined (includes Parent amounts not shown above):
Net Investment Income
Equity securities MTM through investment income (a)	$	11		$	6		$	1		$	16		$	(1	)	$	22		$	7
Investments accounted for using the equity method (b)		21			33			41			41			46			161			64
AFG managed CLOs (eliminated in consolidation)		11			(4	)		4			4			3			7			23
Total Combined (including Parent)	$	43		$	35		$	46		$	61		$	48		$	190		$	94
Investments
Equity securities MTM through investment income (a)	$	198		$	187		$	176		$	173		$	142		$	187		$	132
Investments accounted for using the equity method (b)		1,440			1,374			1,289			1,194			1,097			1,374			992
AFG managed CLOs (eliminated in consolidation)		193			188			191			192			221			188			215
Total Combined (including Parent)	$	1,831		$	1,749		$	1,656		$	1,559		$	1,460		$	1,749		$	1,339
Annualized Yield - Combined		9.6	%		8.2	%		11.4	%		16.2	%		13.7	%		12.2	%		8.3	%

(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
March 31, 2019	Cost			Fair Value		Gain (Loss)			Fair Value			Portfolio
US Government and government agencies	$	243		$	243	$	—			1	%		0	%
States, municipalities and political subdivisions		6,768			7,001		233			16	%		14	%
Foreign government		176			178		2			1	%		0	%
Residential mortgage-backed securities		2,479			2,758		279			6	%		5	%
Commercial mortgage-backed securities		900			924		24			2	%		2	%
Asset-backed securities		9,909			10,018		109			23	%		20	%
Corporate and other bonds		22,050			22,416		366			51	%		44	%
Total AFG consolidated	$	42,525		$	43,538	$	1,013			100	%		85	%
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		4.44	%
Net of investment expense (a)		4.39	%
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	%
Asset-backed securities		9,781			9,811		30			23	%		20	%
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 )

	March 31, 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	$	203		$	204		1			2	%	$	203		$	202	$	(1	)		3	%
States, municipalities and political subdivisions		2,559			2,610		51			32	%		2,630			2,642		12			33	%
Foreign government		165			165		—			2	%		155			156		1			2	%
Residential mortgage-backed securities		720			784		64			10	%		725			784		59			10	%
Commercial mortgage-backed securities		88			90		2			1	%		83			84		1			1	%
Asset-backed securities		2,315			2,316		1			29	%		2,275			2,259		(16	)		29	%
Corporate and other bonds		1,908			1,926		18			24	%		1,792			1,776		(16	)		22	%
Property and Casualty Insurance	$	7,958		$	8,095	$	137			100	%	$	7,863		$	7,903	$	40			100	%
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		3.93	%										3.91	%
Net of investment expense (a)		3.85	%										3.81	%
Tax equivalent, net of investment expense (b)		4.04	%										3.99	%
Approximate average life and duration:
Approximate average life		4.5 years											4.5 years
Approximate duration		3.5 years											3.5 years
	March 31, 2019											December 31, 2018
	Amortized					Unrealized			% of			Amortized					Unrealized			% of
Annuity and Run-off:	Cost			Fair Value		Gain (Loss)			Fair Value			Cost			Fair Value		Gain (Loss)			Fair Value
US Government and government agencies	$	40		$	39	$	(1	)		0	%	$	42		$	41	$	(1	)		0	%
States, municipalities and political subdivisions		4,209			4,391		182			12	%		4,220			4,322		102			13	%
Foreign government		11			13		2			0	%		11			12		1			0	%
Residential mortgage-backed securities		1,757			1,963		206			6	%		1,750			1,950		200			6	%
Commercial mortgage-backed securities		812			834		22			2	%		822			836		14			2	%
Asset-backed securities		7,594			7,702		108			22	%		7,506			7,552		46			22	%
Corporate and other bonds		20,142			20,490		348			58	%		19,725			19,474		(251	)		57	%
Total Annuity and Run-off	$	34,565		$	35,432	$	867			100	%	$	34,076		$	34,187	$	111			100	%
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		4.55	%										4.59	%
Net of investment expense (a)		4.51	%										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 on tax-exempt bonds to the fully taxable equivalent yield.

Page 28

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

	March 31, 2019
By Credit Rating (a)	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value
Investment grade
AAA	$	7,378	$	7,447	$	69			17	%
AA		8,809		9,055		246			21	%
A		10,268		10,504		236			24	%
BBB		12,261		12,464		203			29	%
Subtotal - Investment grade		38,716		39,470		754			91	%
BB		709		705		(4	)		2	%
B		249		245		(4	)		0	%
Other (b)		2,851		3,118		267			7	%
Subtotal - Non-Investment grade		3,809		4,068		259			9	%
Total	$	42,525	$	43,538	$	1,013			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)

March 31, 2019	Amortized Cost		Fair Value		Unrealized Gain (Loss)		% of Fair Value			% of Investment Portfolio
Residential
Agency	$	163	$	163	$	—		4	%		0	%
Prime (Non-Agency)		960		1,089		129		30	%		2	%
Alt-A		1,005		1,118		113		30	%		2	%
Subprime		351		388		37		11	%		1	%
Commercial		900		924		24		25	%		2	%
Total AFG consolidated	$	3,379	$	3,682	$	303		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 83%; CMBS 100%.

• The average FICO score of our residential MBS securities is - Prime 734; Alt-A 696; Subprime 630.

• 96% of our Commercial MBS portfolio is investment-grade rated (82% AAA) and the average subordination for this group of assets is 34%.

• The approximate average life by collateral type is - Residential 4.5 years; Commercial 4 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:

	March 31, 2019
By Asset Type	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Inv Portfolio
Residential
Agency	$	131	$	130	$	(1	)		15	%		1	%
Prime (Non-Agency)		138		154		16			18	%		1	%
Alt-A		296		330		34			38	%		3	%
Subprime		155		170		15			19	%		2	%
Commercial		88		90		2			10	%		1	%
Total	$	808	$	874	$	66			100	%		8	%
	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 and Run-off:

	March 31, 2019
By Asset Type	Amortized Cost		Fair Value		Unrealized Gain (Loss)		% of Fair Value			% of Inv Portfolio
Residential
Agency	$	32	$	33	$	1		1	%		0	%
Prime (Non-Agency)		820		924		104		33	%		2	%
Alt-A		709		788		79		28	%		2	%
Subprime		196		218		22		8	%		1	%
Commercial		812		834		22		30	%		2	%
Total	$	2,569	$	2,797	$	228		100	%		7	%
	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)

	March 31, 2019
By Credit Rating (a)	Amortized Cost		Fair Value		Unrealized Gain (Loss)		% of Fair Value
Investment grade
AAA	$	1,099	$	1,122	$	23		31	%
AA		158		161		3		4	%
A		324		338		14		9	%
BBB		198		206		8		6	%
Subtotal - investment grade		1,779		1,827		48		50	%
BB		133		136		3		4	%
B		136		136		—		4	%
Other (b)		1,331		1,583		252		42	%
Total	$	3,379	$	3,682	$	303		100	%

96% 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 - March 31, 2019
By Credit Rating (a)	US Gov		Munis		Frgn Gov		RMBS		CMBS		ABS		Corp/Oth		Total		% Total
Investment grade
AAA	$	208	$	1,930	$	102	$	361	$	761	$	3,911	$	174	$	7,447		17	%
AA		22		4,448		53		144		17		2,678		1,693		9,055		21	%
A		—		456		1		310		28		2,141		7,568		10,504		24	%
BBB		—		109		2		130		76		766		11,381		12,464		29	%
Subtotal - Investment grade		230		6,943		158		945		882		9,496		20,816		39,470		91	%
BB		—		—		—		101		35		34		535		705		2	%
B		—		8		—		134		2		4		97		245		0	%
CCC, CC, C		—		—		—		648		5		2		12		667		2	%
D		5		—		—		220		—		—		—		225		0	%
Subtotal - Non-Investment grade		5		8		—		1,103		42		40		644		1,842		4	%
Not Rated		8		50		20		710		—		482		956		2,226		5	%
Total	$	243	$	7,001	$	178	$	2,758	$	924	$	10,018	$	22,416	$	43,538		100	%
	Fair Value - December 31, 2018
By Credit Rating (a)	US Gov		Munis		Frgn Gov		RMBS		CMBS		ABS		Corp/Oth		Total		% Total
Investment grade
AAA	$	213	$	1,889	$	98	$	367	$	752	$	3,870	$	170	$	7,359		17	%
AA		22		4,456		53		129		18		2,570		1,583		8,831		21	%
A		—		448		—		248		22		2,086		7,185		9,989		24	%
BBB		—		110		—		169		74		769		10,931		12,053		29	%
Subtotal - Investment grade		235		6,903		151		913		866		9,295		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		487		749		2,008		4	%
Total	$	243	$	6,964	$	168	$	2,746	$	920	$	9,811	$	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