American Financial (AFG) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended June 2023, American Financial Group (AFG) reported revenue of $1.73 billion, up 8.6% over the same period last year. EPS came in at $2.38, compared to $2.85 in the year-ago quarter.
The reported revenue represents a surprise of -6.68% over the Zacks Consensus Estimate of $1.85 billion. With the consensus EPS estimate being $2.85, the EPS surprise was -16.49%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how American Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Property and Transportation - Loss and LAE Ratio: 64.8% versus the three-analyst average estimate of 63.72%.
Specialty Financial - Combined Ratio: 95% versus the three-analyst average estimate of 83.6%.
Specialty Casualty - Loss and LAE Ratio: 59.2% versus 57.93% estimated by three analysts on average.
Specialty Casualty - Underwriting Expense Ratio: 27.4% compared to the 26.77% average estimate based on three analysts.
Specialty Financial - Loss and LAE Ratio: 40.9% versus the three-analyst average estimate of 31.38%.
Specialty Financial - Underwriting Expense Ratio: 54.1% versus 52.22% estimated by three analysts on average.
Property and Transportation- Net earned premiumc`: $534 million versus the three-analyst average estimate of $634.20 million. The reported number represents a year-over-year change of +5.7%.
Specialty Casualty- Net earned premium: $711 million versus the three-analyst average estimate of $714 million. The reported number represents a year-over-year change of +8.2%.
Revenues- P&C insurance net earned premiums: $1.51 billion versus the three-analyst average estimate of $1.60 billion. The reported number represents a year-over-year change of +8.2%.
Specialty Financial- Net earned premium: $195 million versus the three-analyst average estimate of $190.40 million. The reported number represents a year-over-year change of +14%.
Revenues- Net investment income: $198 million compared to the $173.58 million average estimate based on three analysts. The reported number represents a change of +26.9% year over year.
Other Specialty- Net earned premium: $67 million versus $67.30 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.7% change.
View all Key Company Metrics for American Financial here>>>
Shares of American Financial have returned +4.4% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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American Financial Group, Inc. (AFG) : Free Stock Analysis Report
