For the quarter ended September 2023, American Financial Group (AFG) reported revenue of $2.07 billion, up 6% over the same period last year. EPS came in at $2.45, compared to $2.24 in the year-ago quarter.
The reported revenue represents a surprise of +5.94% over the Zacks Consensus Estimate of $1.95 billion. With the consensus EPS estimate being $2.47, the EPS surprise was -0.81%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company’s financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock’s price performance more accurately.
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 – Combined Ratio: 94.8% versus the four-analyst average estimate of 94.9%.
- Property and Transportation – Underwriting Expense Ratio: 18% compared to the 19.7% average estimate based on four analysts.
- Property and Transportation – Loss and LAE Ratio: 76.8% versus 75.7% estimated by four analysts on average.
- Specialty Financial – Underwriting Expense Ratio: 47.8% versus the three-analyst average estimate of 49%.
- Specialty Financial – Loss and LAE Ratio: 39.8% versus 43.2% estimated by three analysts on average.
- Specialty Casualty – Underwriting Expense Ratio: 26.3% versus the three-analyst average estimate of 27.8%.
- Property and Transportation- Net earned premiumc`: $857 million versus the three-analyst average estimate of $694.45 million. The reported number represents a year-over-year change of 0%.
- Specialty Casualty- Net earned premium: $734 million compared to the $703.93 million average estimate based on three analysts. The reported number represents a change of +8.4% year over year.
- Revenues- P&C insurance net earned premiums: $1.86 billion versus the three-analyst average estimate of $1.65 billion. The reported number represents a year-over-year change of +5%.
- Specialty Financial- Net earned premium: $232 million versus the three-analyst average estimate of $186.71 million. The reported number represents a year-over-year change of +35.7%.
- Revenues- Net investment income: $168 million versus $188.86 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.3% change.
- Other Specialty- Net earned premium: $61 million compared to the $61.20 million average estimate based on two analysts. The reported number represents a change of -1.6% year over year.
View all Key Company Metrics for American Financial here>>>
Shares of American Financial have returned +0.6% over the past month versus the Zacks S&P 500 composite’s -2.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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American Financial Group, Inc. (AFG) : Free Stock Analysis Report
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