Exhibit 99.2

	American Financial Group, Inc.
	Investor Supplement - Fourth Quarter 2016
	February 1, 2017
	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 - Fourth Quarter 2016

Section	Page
Table of Contents - Investor Supplement - Fourth Quarter 2016		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
Detail of Annuity Benefits Expense (GAAP)		13
Net Spread on Fixed Annuities (GAAP)		14
Annuity Premiums (Statutory)		15
Fixed Annuity Benefits Accumulated (GAAP)		16
Consolidated Balance Sheet / Book Value / Debt
Consolidated Balance Sheet		17
Book Value Per Share and Price / Book Summary		18
Capitalization		19
Additional Supplemental Information		20
Consolidated Investment Supplement
Total Cash and Investments		21
Net Investment Income		22
Fixed Maturities - By Security Type - AFG Consolidated		23
Fixed Maturities - By Security Type Portfolio		24
Fixed Maturities - Credit Rating		25
Mortgage-Backed Securities - AFG Consolidated		26
Mortgage-Backed Securities Portfolio		27
Mortgage-Backed Securities - Credit Rating		28
Appendix
A. Fixed Maturities - Credit Rating by Type		29

Page 2

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

	Three Months Ended															Twelve Months Ended
	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			12/31/16			12/31/15
Highlights
Net earnings	$	385		$	109		$	54		$	101		$	129		$	649		$	352
Core net operating earnings		176			134			113			111			136			534			486
Total assets		55,072			54,845			52,733			51,038			49,837			55,072			49,837
Adjusted shareholders’ equity (a)		4,617			4,487			4,356			4,325			4,313			4,617			4,313
Property and Casualty net written premiums		1,083			1,268			1,056			979			1,056			4,386			4,327
Annuity statutory premiums		1,111			941			1,098			1,285			1,107			4,435			4,140
Per share data
Diluted earnings per share	$	4.33		$	1.23		$	0.62		$	1.14		$	1.45		$	7.33		$	3.94
Core net operating earnings per share		1.98			1.51			1.28			1.25			1.52			6.03			5.44
Adjusted book value per share (a)		53.11			51.68			50.16			49.72			49.32			53.11			49.32
Cash dividends per common share		1.3125			0.2800			0.2800			0.2800			1.2800			2.1525			2.0300
Financial ratios
Annualized return on equity (b)		34.4	%		9.9	%		5.1	%		9.4	%		12.1	%		14.8	%		8.3	%
Annualized core operating return on equity (b)		15.7	%		12.2	%		10.5	%		10.3	%		12.7	%		12.2	%		11.5	%
Property and Casualty combined ratio - Specialty:
Loss & LAE ratio		63.7	%		62.9	%		61.2	%		58.3	%		61.8	%		61.7	%		62.2	%
Underwriting expense ratio		26.7	%		30.3	%		32.7	%		33.0	%		29.2	%		30.6	%		30.9	%
Combined ratio - Specialty		90.4	%		93.2	%		93.9	%		91.3	%		91.0	%		92.3	%		93.1	%
Net spread on fixed annuities:
Net interest spread		2.70	%		2.85	%		2.84	%		2.54	%		2.53	%		2.73	%		2.69	%
Net spread earned:
Before impact of fair value accounting		1.42	%		1.46	%		1.45	%		1.20	%		1.31	%		1.39	%		1.35	%
Impact of fair value accounting (c)		0.40	%		0.01	%		(0.37	%)		(0.46	%)		0.08	%		(0.10	%)		(0.09	%)
After impact of fair value accounting		1.82	%		1.47	%		1.08	%		0.74	%		1.39	%		1.29	%		1.26	%

(a) Excludes unrealized gains related to fixed maturity investments, a reconciliation to the GAAP measure is on page 18.

(b) Excludes accumulated other comprehensive income.

(c) Change in fair value of derivatives offset by the estimated related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs.

Page 3

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

	Three Months Ended															Twelve Months Ended
	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			12/31/16			12/31/15
Property and Casualty Insurance
Underwriting profit	$	110		$	78		$	62		$	87		$	100		$	337		$	292
Net investment income		85			93			89			83			74			350			319
Other expense		(15	)		(18	)		(12	)		(12	)		(11	)		(57	)		(45	)
Property and Casualty Insurance operating earnings		180			153			139			158			163			630			566
Annuity earnings		132			107			76			53			101			368			331
Run-off Long-Term Care and Life earnings		2			1			—			(1	)		—			2			14
Interest expense of parent holding companies (a)		(21	)		(19	)		(19	)		(18	)		(16	)		(77	)		(73	)
Other expense (a)		(29	)		(29	)		(19	)		(22	)		(29	)		(99	)		(89	)
Pre-tax core operating earnings		264			213			177			170			219			824			749
Income tax expense		88			79			64			59			83			290			263
Core net operating earnings		176			134			113			111			136			534			486
Non-core items, net of tax:
Realized gains (losses) on securities		32			1			(10	)		(10	)		(14	)		13			(12	)
Realized gain (loss) on sale of subsidiaries		—			—			1			—			(3	)		1			(104	)
Gain on sale of hotel and apartment properties		—			—			15			—			10			15			36
Special A&E charges:
Property and Casualty Insurance run-off operations		—			(23	)		—			—			—			(23	)		(44	)
Former Railroad and Manufacturing operations		—			(3	)		—			—			—			(3	)		(8	)
Neon exited lines charge		—			—			(65	)		—			—			(65	)		—
Tax benefit related to National Interstate merger		66			—			—			—			—			66			—
Tax benefit related to Neon restructuring		111			—			—			—			—			111			—
Other		—			—			—			—			—			—			(2	)
Net earnings	$	385		$	109		$	54		$	101		$	129		$	649		$	352

(a) December 2015 has been adjusted for adoption of FASB Accounting Standard Update 2015-03, which impacted the presentation of debt issue costs and long-term debt.

Page 4

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

	Three Months Ended														Twelve Months Ended
	12/31/16		09/30/16			06/30/16			03/31/16			12/31/15			12/31/16			12/31/15
Core net operating earnings	$	176	$	134		$	113		$	111		$	136		$	534		$	486
Net earnings	$	385	$	109		$	54		$	101		$	129		$	649		$	352
Average number of diluted shares		88.774		88.461			88.390			88.495			89.228			88.530			89.362
Diluted earnings per share:
Core net operating earnings per share	$	1.98	$	1.51		$	1.28		$	1.25		$	1.52		$	6.03		$	5.44
Realized gains (losses) on securities		0.36		0.02			(0.11	)		(0.11	)		(0.15	)		0.16			(0.12	)
Realized gain (loss) on sale of subsidiaries		—		—			0.01			—			(0.03	)		0.01			(1.17	)
Gain on sale of hotel and apartment properties		—		—			0.17			—			0.11			0.17			0.40
Special A&E charges:
Property and Casualty Insurance run-off operations		—		(0.26	)		—			—			—			(0.26	)		(0.49	)
Former Railroad and Manufacturing operations		—		(0.04	)		—			—			—			(0.04	)		(0.09	)
Neon exited lines charge		—		—			(0.73	)		—			—			(0.73	)		—
Tax benefit related to National Interstate merger		0.74		—			—			—			—			0.74			—
Tax benefit related to Neon restructuring		1.25		—			—			—			—			1.25			—
Other		—		—			—			—			—			—			(0.03	)
Diluted earnings per share	$	4.33	$	1.23		$	0.62		$	1.14		$	1.45		$	7.33		$	3.94

Page 5

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

	Three Months Ended															Twelve Months Ended
	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			12/31/16			12/31/15
Property and Transportation	$	75		$	44		$	15		$	32		$	34		$	166		$	48
Specialty Casualty		13			13			23			29			50			78			146
Specialty Financial		20			19			22			23			15			84			87
Other Specialty		2			2			3			2			1			9			14
Underwriting profit - Specialty		110			78			63			86			100			337			295
Other core charges, included in loss and LAE		—			—			1			(1	)		—			—			3
Underwriting profit - Core		110			78			62			87			100			337			292
Special A&E charges, included in loss and LAE		—			(36	)		—			—			—			(36	)		(67	)
Neon exited lines charge, included in loss and LAE		—			—			(57	)		—			—			(57	)		—
Neon exited lines charge, included in underwriting expenses		—			—			(8	)		—			—			(8	)		—
Underwriting profit (loss) - Property and Casualty Insurance	$	110		$	42		$	(3	)	$	87		$	100		$	236		$	225
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe loss		12			14			21			8			9			55			35
Total current accident year catastrophe losses	$	12		$	14		$	21		$	8		$	9		$	55		$	35
Prior year loss reserve development (favorable) / adverse	$	10		$	22		$	28		$	(28	)	$	(5	)	$	32		$	33
Combined ratio:
Property and Transportation		83.9	%		91.1	%		95.9	%		90.6	%		92.4	%		90.0	%		96.9	%
Specialty Casualty		97.4	%		97.4	%		95.3	%		94.3	%		90.2	%		96.1	%		92.7	%
Specialty Financial		86.0	%		86.4	%		84.4	%		82.6	%		88.7	%		84.9	%		83.1	%
Other Specialty		94.9	%		91.5	%		89.2	%		89.7	%		97.1	%		91.4	%		85.5	%
Combined ratio - Specialty		90.4	%		93.2	%		93.9	%		91.3	%		91.0	%		92.3	%		93.1	%
Other core charges		0.0	%		0.1	%		0.1	%		(0.1	%)		0.0	%		(0.1	%)		0.0	%
Neon exited lines charge, loss and LAE		0.0	%		0.0	%		5.5	%		0.0	%		0.0	%		1.3	%		0.0	%
Neon exited lines charge, underwriting expenses		0.0	%		0.0	%		0.8	%		0.0	%		0.0	%		0.2	%		0.0	%
Special A&E charges		0.0	%		3.0	%		0.0	%		0.0	%		0.0	%		0.8	%		1.6	%
Combined ratio		90.4	%		96.3	%		100.3	%		91.2	%		91.0	%		94.5	%		94.7	%
Combined ratio excl. catastrophe and prior year development		88.4	%		93.1	%		94.8	%		93.2	%		90.6	%		92.4	%		93.1	%
Loss and LAE components - property and casualty insurance
Current accident year, excluding catastrophe loss		61.7	%		62.8	%		62.1	%		60.2	%		61.4	%		61.8	%		62.2	%
Prior accident year loss reserve development		0.9	%		2.0	%		2.7	%		(2.8	%)		(0.4	%)		0.7	%		0.8	%
Current accident year catastrophe loss		1.1	%		1.2	%		2.0	%		0.8	%		0.8	%		1.3	%		0.8	%
Loss and LAE ratio		63.7	%		66.0	%		66.8	%		58.2	%		61.8	%		63.8	%		63.8	%

Page 6

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

	Three Months Ended															Twelve Months Ended
	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			12/31/16			12/31/15
Gross written premiums	$	1,441		$	1,899		$	1,398		$	1,243		$	1,356		$	5,981		$	5,832
Ceded reinsurance premiums		(358	)		(631	)		(342	)		(264	)		(300	)		(1,595	)		(1,505	)
Net written premiums		1,083			1,268			1,056			979			1,056			4,386			4,327
Change in unearned premiums		61			(109	)		(29	)		19			64			(58	)		(103	)
Net earned premiums		1,144			1,159			1,027			998			1,120			4,328			4,224
Loss and LAE		729			729			629			582			693			2,669			2,625
Underwriting expense		305			352			335			330			327			1,322			1,304
Underwriting profit	$	110		$	78		$	63		$	86		$	100		$	337		$	295
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe loss		12			14			21			8			9			55			35
Total current accident year catastrophe losses	$	12		$	14		$	21		$	8		$	9		$	55		$	35
Prior year loss reserve development (favorable) / adverse	$	10		$	(14	)	$	(30	)	$	(27	)	$	(5	)	$	(61	)	$	(37	)
Combined ratio:
Loss and LAE ratio		63.7	%		62.9	%		61.2	%		58.3	%		61.8	%		61.7	%		62.2	%
Underwriting expense ratio		26.7	%		30.3	%		32.7	%		33.0	%		29.2	%		30.6	%		30.9	%
Combined ratio		90.4	%		93.2	%		93.9	%		91.3	%		91.0	%		92.3	%		93.1	%
Combined ratio excl. catastrophe and prior year development		88.4	%		93.1	%		94.8	%		93.2	%		90.6	%		92.4	%		93.1	%
Loss and LAE components:
Current accident year, excluding catastrophe loss		61.7	%		62.8	%		62.1	%		60.2	%		61.4	%		61.8	%		62.2	%
Prior accident year loss reserve development		0.9	%		(1.1	%)		(2.9	%)		(2.7	%)		(0.4	%)		(1.4	%)		(0.8	%)
Current accident year catastrophe loss		1.1	%		1.2	%		2.0	%		0.8	%		0.8	%		1.3	%		0.8	%
Loss and LAE ratio		63.7	%		62.9	%		61.2	%		58.3	%		61.8	%		61.7	%		62.2	%

Page 7

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

	Three Months Ended															Twelve Months Ended
	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			12/31/16			12/31/15
Gross written premiums	$	577		$	991		$	538		$	398		$	515		$	2,504		$	2,455
Ceded reinsurance premiums		(183	)		(406	)		(156	)		(87	)		(137	)		(832	)		(819	)
Net written premiums		394			585			382			311			378			1,672			1,636
Change in unearned premiums		71			(92	)		(17	)		28			64			(10	)		(37	)
Net earned premiums		465			493			365			339			442			1,662			1,599
Loss and LAE		319			339			245			211			317			1,114			1,159
Underwriting expense		71			110			105			96			91			382			392
Underwriting profit	$	75		$	44		$	15		$	32		$	34		$	166		$	48
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe loss		6			7			12			6			3			31			21
Total current accident year catastrophe losses	$	6		$	7		$	12		$	6		$	3		$	31		$	21
Prior year loss reserve development (favorable) / adverse	$	13		$	(5	)	$	(12	)	$	(17	)	$	8		$	(21	)	$	15
Combined ratio:
Loss and LAE ratio		68.6	%		68.8	%		67.0	%		62.2	%		71.7	%		67.0	%		72.4	%
Underwriting expense ratio		15.3	%		22.3	%		28.9	%		28.4	%		20.7	%		23.0	%		24.5	%
Combined ratio		83.9	%		91.1	%		95.9	%		90.6	%		92.4	%		90.0	%		96.9	%
Combined ratio excl. catastrophe and prior year development		79.7	%		90.7	%		95.8	%		94.1	%		89.9	%		89.3	%		94.7	%
Loss and LAE components:
Current accident year, excluding catastrophe loss		64.4	%		68.4	%		66.9	%		65.7	%		69.2	%		66.3	%		70.2	%
Prior accident year loss reserve development		3.0	%		(1.2	%)		(3.2	%)		(5.2	%)		1.8	%		(1.2	%)		0.9	%
Current accident year catastrophe loss		1.2	%		1.6	%		3.3	%		1.7	%		0.7	%		1.9	%		1.3	%
Loss and LAE ratio		68.6	%		68.8	%		67.0	%		62.2	%		71.7	%		67.0	%		72.4	%

Page 8

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

	Three Months Ended															Twelve Months Ended
	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			12/31/16			12/31/15
Gross written premiums	$	684		$	722		$	688		$	698		$	661		$	2,792		$	2,739
Ceded reinsurance premiums		(174	)		(218	)		(185	)		(179	)		(158	)		(756	)		(687	)
Net written premiums		510			504			503			519			503			2,036			2,052
Change in unearned premiums		—			(7	)		(6	)		(17	)		12			(30	)		(41	)
Net earned premiums		510			497			497			502			515			2,006			2,011
Loss and LAE		348			330			329			313			315			1,320			1,265
Underwriting expense		149			154			145			160			150			608			600
Underwriting profit	$	13		$	13		$	23		$	29		$	50		$	78		$	146
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe loss		4			2			3			1			1			10			4
Total current accident year catastrophe losses	$	4		$	2		$	3		$	1		$	1		$	10		$	4
Prior year loss reserve development (favorable) / adverse	$	3		$	(2	)	$	(10	)	$	(4	)	$	(7	)	$	(13	)	$	(11	)
Combined ratio:
Loss and LAE ratio		68.2	%		66.5	%		66.1	%		62.4	%		61.1	%		65.8	%		62.9	%
Underwriting expense ratio		29.2	%		30.9	%		29.2	%		31.9	%		29.1	%		30.3	%		29.8	%
Combined ratio		97.4	%		97.4	%		95.3	%		94.3	%		90.2	%		96.1	%		92.7	%
Combined ratio excl. catastrophe and prior year development		96.1	%		97.4	%		96.6	%		94.9	%		91.4	%		96.3	%		93.0	%
Loss and LAE components:
Current accident year, excluding catastrophe loss		66.9	%		66.5	%		67.4	%		63.0	%		62.3	%		66.0	%		63.2	%
Prior accident year loss reserve development		0.5	%		(0.3	%)		(2.0	%)		(0.7	%)		(1.4	%)		(0.7	%)		(0.5	%)
Current accident year catastrophe loss		0.8	%		0.3	%		0.7	%		0.1	%		0.2	%		0.5	%		0.2	%
Loss and LAE ratio		68.2	%		66.5	%		66.1	%		62.4	%		61.1	%		65.8	%		62.9	%

Page 9

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

	Three Months Ended															Twelve Months Ended
	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			12/31/16			12/31/15
Gross written premiums	$	180		$	186		$	172		$	147		$	179		$	685		$	637
Ceded reinsurance premiums		(26	)		(37	)		(28	)		(22	)		(27	)		(113	)		(97	)
Net written premiums		154			149			144			125			152			572			540
Change in unearned premiums		(13	)		(4	)		(5	)		7			(15	)		(15	)		(23	)
Net earned premiums		141			145			139			132			137			557			517
Loss and LAE		46			45			42			45			46			178			154
Underwriting expense		75			81			75			64			76			295			276
Underwriting profit	$	20		$	19		$	22		$	23		$	15		$	84		$	87
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe loss		2			5			3			1			5			11			9
Total current accident year catastrophe losses	$	2		$	5		$	3		$	1		$	5		$	11		$	9
Prior year loss reserve development (favorable) / adverse	$	(6	)	$	(6	)	$	(7	)	$	(4	)	$	(5	)	$	(23	)	$	(30	)
Combined ratio:
Loss and LAE ratio		32.4	%		31.6	%		30.1	%		34.0	%		32.8	%		32.0	%		29.7	%
Underwriting expense ratio		53.6	%		54.8	%		54.3	%		48.6	%		55.9	%		52.9	%		53.4	%
Combined ratio		86.0	%		86.4	%		84.4	%		82.6	%		88.7	%		84.9	%		83.1	%
Combined ratio excl. catastrophe and prior year development		88.8	%		87.0	%		87.0	%		84.8	%		88.8	%		86.9	%		87.1	%
Loss and LAE components:
Current accident year, excluding catastrophe loss		35.2	%		32.2	%		32.7	%		36.2	%		32.9	%		34.0	%		33.7	%
Prior accident year loss reserve development		(4.5	%)		(3.9	%)		(4.6	%)		(3.3	%)		(3.6	%)		(4.0	%)		(5.7	%)
Current accident year catastrophe loss		1.7	%		3.3	%		2.0	%		1.1	%		3.5	%		2.0	%		1.7	%
Loss and LAE ratio		32.4	%		31.6	%		30.1	%		34.0	%		32.8	%		32.0	%		29.7	%

Page 10

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

	Three Months Ended															Twelve Months Ended
	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			12/31/16			12/31/15
Gross written premiums	$	—		$	—		$	—		$	—		$	1		$	—		$	1
Ceded reinsurance premiums		25			30			27			24			22			106			98
Net written premiums		25			30			27			24			23			106			99
Change in unearned premiums		3			(6	)		(1	)		1			3			(3	)		(2	)
Net earned premiums		28			24			26			25			26			103			97
Loss and LAE		16			15			13			13			15			57			47
Underwriting expense		10			7			10			10			10			37			36
Underwriting profit	$	2		$	2		$	3		$	2		$	1		$	9		$	14
Included in results above:
Current accident year catastrophe losses:
Catastrophe reinstatement premium	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Catastrophe loss		—			—			3			—			—			3			1
Total current accident year catastrophe losses	$	—		$	—		$	3		$	—		$	—		$	3		$	1
Prior year loss reserve development (favorable) / adverse	$	—		$	(1	)	$	(1	)	$	(2	)	$	(1	)	$	(4	)	$	(11	)
Combined ratio:
Loss and LAE ratio		59.5	%		55.2	%		52.5	%		52.1	%		61.0	%		54.9	%		49.4	%
Underwriting expense ratio		35.4	%		36.3	%		36.7	%		37.6	%		36.1	%		36.5	%		36.1	%
Combined ratio		94.9	%		91.5	%		89.2	%		89.7	%		97.1	%		91.4	%		85.5	%
Combined ratio excl. catastrophe and prior year development		93.7	%		95.1	%		86.4	%		96.0	%		98.1	%		92.8	%		96.4	%

Page 11

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

	Three Months Ended												Twelve Months Ended
	12/31/16		09/30/16		06/30/16			03/31/16			12/31/15		12/31/16			12/31/15
Net investment income	$	346	$	351	$	344		$	315		$	309	$	1,356		$	1,224
Guaranteed withdrawal benefit fees		14		14		13			12			12		53			43
Policy charges and other miscellaneous income		13		12		11			14			11		50			55
Total revenues		373		377		368			341			332		1,459			1,322
Annuity benefits expense		160		189		223			228			189		800			732
Acquisition expenses		54		53		40			34			20		181			163
Other expenses		27		28		29			26			22		110			96
Total costs and expenses		241		270		292			288			231		1,091			991
Annuity earnings before income taxes	$	132	$	107	$	76		$	53		$	101	$	368		$	331
Detail of Annuity earnings before income taxes
Earnings before income taxes and impact of fair value accounting	$	103	$	106	$	102		$	84		$	96	$	395		$	354
Impact of fair value accounting (a)		29		1		(26	)		(31	)		5		(27	)		(23	)
Annuity earnings before income taxes	$	132	$	107	$	76		$	53		$	101	$	368		$	331

(a) Change in fair value of derivatives offset by the estimated related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs.

Page 12

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

	Three Months Ended														Twelve Months Ended
	12/31/16			09/30/16			06/30/16			03/31/16		12/31/15			12/31/16			12/31/15
Detail of annuity benefits expense:
Interest credited - fixed	$	148		$	145		$	142		$	139	$	138		$	574		$	532
Interest credited - fixed component of variable annuities		1			1			2			1		1			5			6
Change in expected death and annuitization reserve		4			5			4			5		5			18			19
Amortization of sales inducements		7			6			6			5		6			24			26
Guaranteed withdrawal benefit reserve		20			18			15			16		15			69			63
Change in other benefit reserves		11			10			8			5		5			34			22
Unlockings (a)		23			—			—			—		19			23			19
Subtotal before impact of fair value accounting		214			185			177			171		189			747			687
Embedded derivative mark-to-market (b)		6			109			62			17		88			194			(11	)
Equity option mark-to-market		(60	)		(105	)		(16	)		40		(88	)		(141	)		56
Subtotal impact of fair value accounting		(54	)		4			46			57		—			53			45
Total annuity benefits expense	$	160		$	189		$	223		$	228	$	189		$	800		$	732

(a) Includes unlockings for fixed indexed annuity embedded derivative reserves, sales inducement asset and other reserves. Does not include unlocking income of $24 million in 2016 and $29 million in 2015 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 reduction of $1 million in 2016 and $10 million in 2015.

(b) Excludes unlocking impact of $17 million in 2016 and $28 million in 2015.

Page 13

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

	Three Months Ended															Twelve Months Ended
	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			12/31/16			12/31/15
Average fixed annuity investments (at amortized cost)	$	29,192		$	28,548		$	27,964		$	27,186		$	26,401		$	28,223		$	25,174
Average annuity benefits accumulated		29,250			28,538			27,861			26,935			26,048			28,146			24,898
Investments in excess of annuity benefits accumulated	$	(58	)	$	10		$	103		$	251		$	353		$	77		$	276
As % of average annuity benefits accumulated (except as noted)
Net investment income (as % of investments)		4.72	%		4.88	%		4.88	%		4.60	%		4.65	%		4.77	%		4.83	%
Interest credited		(2.02	%)		(2.03	%)		(2.04	%)		(2.06	%)		(2.12	%)		(2.04	%)		(2.14	%)
Net interest spread on fixed annuities		2.70	%		2.85	%		2.84	%		2.54	%		2.53	%		2.73	%		2.69	%
Policy charges and other miscellaneous income		0.15	%		0.14	%		0.13	%		0.16	%		0.15	%		0.15	%		0.18	%
Other annuity benefit expenses, net		(0.38	%)		(0.36	%)		(0.30	%)		(0.27	%)		(0.31	%)		(0.33	%)		(0.35	%)
Acquisition expenses		(1.06	%)		(0.72	%)		(0.55	%)		(0.47	%)		(0.75	%)		(0.70	%)		(0.74	%)
Other expenses		(0.35	%)		(0.39	%)		(0.38	%)		(0.38	%)		(0.32	%)		(0.38	%)		(0.36	%)
Change in fair value of derivatives		0.73	%		(0.05	%)		(0.66	%)		(0.84	%)		0.02	%		(0.19	%)		(0.18	%)
Unlockings		0.03	%		0.00	%		0.00	%		0.00	%		0.07	%		0.01	%		0.02	%
Net spread earned on fixed annuities		1.82	%		1.47	%		1.08	%		0.74	%		1.39	%		1.29	%		1.26	%
Average annuity benefits accumulated	$	29,250		$	28,538		$	27,861		$	26,935		$	26,048		$	28,146		$	24,898
Net spread earned on fixed annuities		1.82	%		1.47	%		1.08	%		0.74	%		1.39	%		1.29	%		1.26	%
Earnings on fixed annuity benefits accumulated	$	133		$	105		$	75		$	50		$	91		$	363		$	313
Investments in excess of annuity benefits accumulated	$	(58	)	$	10		$	103		$	251		$	353		$	77		$	276
Net investment income (as % of investments)		4.72	%		4.88	%		4.88	%		4.60	%		4.65	%		4.77	%		4.83	%
Earnings on investments in excess of annuity benefits accumulated	$	—		$	—		$	1		$	3		$	4		$	4		$	13
Variable annuity earnings		(1	)		2			—			—			6			1			5
Earnings before income taxes	$	132		$	107		$	76		$	53		$	101		$	368		$	331
Detail of net spread earned on fixed annuities - core
Net spread earned core - before impact of fair value accounting		1.42	%		1.46	%		1.45	%		1.20	%		1.31	%		1.39	%		1.35	%
Change in fair value of derivatives		0.73	%		(0.05	%)		(0.66	%)		(0.84	%)		0.02	%		(0.19	%)		(0.18	%)
Estimated net offsets to deferred sales inducements and deferred policy acquisition costs		(0.33	%)		0.06	%		0.29	%		0.38	%		0.06	%		0.09	%		0.09	%
Net spread earned core - after impact of fair value accounting		1.82	%		1.47	%		1.08	%		0.74	%		1.39	%		1.29	%		1.26	%

Page 14

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

	Three Months Ended										Twelve Months Ended
	12/31/16		09/30/16		06/30/16		03/31/16		12/31/15		12/31/16		12/31/15
Retail single premium annuities - indexed	$	415	$	340	$	413	$	546	$	494	$	1,714	$	1,864
Retail single premium annuities - fixed		22		18		22		20		18		82		70
Financial institutions single premium annuities - indexed		474		435		507		534		462		1,950		1,741
Financial institutions single premium annuities - fixed		152		97		100		119		72		468		229
Education market - fixed and indexed annuities		40		42		45		57		51		184		194
Subtotal fixed annuity premiums		1,103		932		1,087		1,276		1,097		4,398		4,098
Variable annuities		8		9		11		9		10		37		42
Total annuity premiums	$	1,111	$	941	$	1,098	$	1,285	$	1,107	$	4,435	$	4,140

Page 15

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

	Three Months Ended															Twelve Months Ended
	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			12/31/16			12/31/15
Beginning fixed annuity reserves	$	28,853		$	28,222		$	27,499		$	26,371		$	25,725		$	26,371		$	23,462
Premiums		1,103			932			1,087			1,276			1,097			4,398			4,098
Federal Home Loan Bank advances		—			—			—			150			45			150			345
Surrenders, benefits and other withdrawals		(524	)		(586	)		(596	)		(483	)		(515	)		(2,189	)		(1,932	)
Sale of subsidiaries		—			—			—			—			(261	)		—			(261	)
Interest and other annuity benefit expenses:
Interest credited		148			145			142			139			138			574			532
Embedded derivative mark-to-market		6			109			62			17			88			194			(11	)
Change in other benefit reserves		34			31			28			29			31			122			115
Unlockings		27			—			—			—			23			27			23
Ending fixed annuity reserves	$	29,647		$	28,853		$	28,222		$	27,499		$	26,371		$	29,647		$	26,371
Reconciliation to annuity benefits accumulated:
Ending fixed annuity reserves	$	29,647		$	28,853		$	28,222		$	27,499		$	26,371		$	29,647		$	26,371
Impact of unrealized investment gains on reserves		76			180			188			127			64			76			64
Fixed component of variable annuities		184			189			186			186			187			184			187
Annuity benefits accumulated per balance sheet	$	29,907		$	29,222		$	28,596		$	27,812		$	26,622		$	29,907		$	26,622
Annualized surrenders and other withdrawals as a % of beginning reserves		7.3	%		8.3	%		8.7	%		7.3	%		8.0	%		8.3	%		8.2	%

Page 16

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

	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			09/30/15
Assets:
Total cash and investments	$	41,433		$	41,805		$	40,639		$	39,437		$	37,736		$	38,132
Recoverables from reinsurers		2,737			2,814			2,576			2,561			2,636			3,151
Prepaid reinsurance premiums		539			634			521			475			480			604
Agents’ balances and premiums receivable		997			1,029			992			936			937			976
Deferred policy acquisition costs		1,239			867			881			1,055			1,184			993
Assets of managed investment entities		4,765			4,312			4,410			3,906			4,047			3,613
Other receivables		908			1,391			788			693			820			1,241
Variable annuity assets (separate accounts)		600			606			595			595			608			595
Other assets (a)		1,655			1,188			1,132			1,181			1,190			1,034
Goodwill		199			199			199			199			199			201
Total assets	$	55,072		$	54,845		$	52,733		$	51,038		$	49,837		$	50,540
Liabilities and Equity:
Unpaid losses and loss adjustment expenses	$	8,563		$	8,661		$	8,203		$	8,108		$	8,127		$	8,061
Unearned premiums		2,171			2,328			2,109			2,051			2,060			2,238
Annuity benefits accumulated		29,907			29,222			28,596			27,812			26,622			26,026
Life, accident and health reserves		691			700			702			708			705			2,159
Payable to reinsurers		634			835			588			501			591			724
Liabilities of managed investment entities		4,549			4,067			4,192			3,656			3,781			3,287
Long-term debt (a)		1,283			1,300			998			998			998			863
Variable annuity liabilities (separate accounts)		600			606			595			595			608			595
Other liabilities		1,755			1,768			1,557			1,672			1,575			1,681
Total liabilities	$	50,153		$	49,487		$	47,540		$	46,101		$	45,067		$	45,634
Shareholders’ equity:
Common stock	$	87		$	87		$	87		$	87		$	87		$	87
Capital surplus		1,111			1,242			1,228			1,218			1,214			1,195
Unappropriated retained earnings		3,343			3,079			3,016			3,002			2,987			2,981
Unrealized gains - equities		98			103			46			40			54			44
Unrealized gains - fixed maturities		306			669			639			426			278			445
Unrealized gains (losses) - fixed maturity-related cash flow hedges		(7	)		5			5			4			1			2
Other comprehensive income, net of tax		(22	)		(24	)		(21	)		(22	)		(29	)		(30	)
Total shareholders’ equity		4,916			5,161			5,000			4,755			4,592			4,724
Noncontrolling interests		3			197			193			182			178			182
Total liabilities and equity	$	55,072		$	54,845		$	52,733		$	51,038		$	49,837		$	50,540

(a) December 2015 and prior periods have been adjusted for adoption of FASB Accounting Standard Update 2015-03, which impacted the presentation of debt issue costs and long-term debt.

Page 17

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

	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			09/30/15
Shareholders’ equity	$	4,916		$	5,161		$	5,000		$	4,755		$	4,592		$	4,724
Unrealized (gains) related to fixed maturities		(299	)		(674	)		(644	)		(430	)		(279	)		(447	)
Adjusted shareholders’ equity		4,617			4,487			4,356			4,325			4,313			4,277
Goodwill		(199	)		(199	)		(199	)		(199	)		(199	)		(201	)
Intangibles		(34	)		(44	)		(46	)		(47	)		(49	)		(51	)
Tangible adjusted shareholders’ equity	$	4,384		$	4,244		$	4,111		$	4,079		$	4,065		$	4,025
Common shares outstanding		86.924			86.813			86.850			86.966			87.474			87.327
Book value per share:
Book value per share	$	56.55		$	59.45		$	57.57		$	54.67		$	52.50		$	54.10
Adjusted (a)		53.11			51.68			50.16			49.72			49.32			48.98
Tangible, adjusted (b)		50.43			48.89			47.34			46.90			46.49			46.09
Market capitalization
AFG’s closing common share price	$	88.12		$	75.00		$	73.93		$	70.37		$	72.08		$	68.91
Market capitalization	$	7,660		$	6,511		$	6,421		$	6,120		$	6,305		$	6,018
Price / Adjusted book value ratio		1.66			1.45			1.47			1.42			1.46			1.41

(a) Excludes unrealized gains related to fixed maturity investments.

(b) Excludes unrealized gains related to fixed maturity investments, goodwill and intangibles.

Page 18

American Financial Group, Inc. Capitalization ($ in millions)

	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			09/30/15
AFG senior obligations (a)	$	1,008		$	1,008		$	708		$	708		$	708		$	708
Borrowings drawn under credit facility		—			—			—			—			—			—
Obligations of subsidiaries - other		—			18			12			12			12			12
Debt excluding subordinated debt & debt secured by real estate	$	1,008		$	1,026		$	720		$	720		$	720		$	720
AFG subordinated debentures		300			300			300			300			300			150
Obligations of subsidiaries - secured by real estate		—			—			—			—			—			10
Total principal amount of long-term debt	$	1,308		$	1,326		$	1,020		$	1,020		$	1,020		$	880
Shareholders’ equity		4,916			5,161			5,000			4,755			4,592			4,724
Noncontrolling interests		3			197			193			182			178			182
Less:
Unrealized (gains) - fixed maturity investments		(306	)		(669	)		(639	)		(426	)		(278	)		(445	)
Total adjusted capital	$	5,921		$	6,015		$	5,574		$	5,531		$	5,512		$	5,341
Less:
Obligations of subsidiaries - secured by real estate		—			—			—			—			—			(10	)
Total adjusted capital excluding obligations secured by real estate	$	5,921		$	6,015		$	5,574		$	5,531		$	5,512		$	5,331
Ratio of debt to total adjusted capital:
Including subordinated debt & debt secured by real estate		22.1	%		22.0	%		18.3	%		18.4	%		18.5	%		16.5	%
Excluding subordinated debt & debt secured by real estate		17.0	%		17.1	%		12.9	%		13.0	%		13.1	%		13.5	%

(a) December 2015 and prior periods have been adjusted for adoption of FASB Accounting Standard Update 2015-03, which impacted the presentation of debt issue costs and long-term debt.

Page 19

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

	Three Months Ended										Twelved Months Ended
	12/31/16		09/30/16		06/30/16		03/31/16		12/31/15		12/31/16		12/31/15
Property and Casualty Insurance
Paid Losses (GAAP)	$	683	$	537	$	586	$	547	$	675	$	2,353	$	2,403
	12/31/16		09/30/16		06/30/16		03/31/16		12/31/15		09/30/15
Statutory Surplus
Property and Casualty Insurance	$	2,939	$	3,038	$	2,601	$	2,574	$	2,488	$	2,356
AFG’s principal annuity subsidiaries (total adjusted capital)	$	2,234	$	2,216	$	2,089	$	2,032	$	1,918	$	1,816
Allowable dividends without regulatory approval
Property and Casualty Insurance	$	496	$	434	$	434	$	434	$	434	$	315
Annuity and Run-off		197		375		375		375		375		358
Total	$	693	$	809	$	809	$	809	$	809	$	673

Page 20

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

	Carrying Value - December 31, 2016
	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	$	1,383	$	511		$	213	$	—		$	2,107		5	%
Fixed maturities - Available for sale		6,510		28,021			13		—			34,544		83	%
Fixed maturities - Trading		242		117			—		—			359		1	%
Equity securities		1,013		496			49		—			1,558		4	%
Policy loans		—		192			—		—			192		0	%
Mortgage loans		261		886			—		—			1,147		3	%
Real estate and other investments		497		1,197			48		(216	)		1,526		4	%
Total cash and investments	$	9,906	$	31,420		$	323	$	(216	)	$	41,433		100	%
Unrealized gain/(loss) on equity securities	$	102	$	49		$	—	$	—		$	151
	Carrying Value - December 31, 2015
	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	$	708	$	282		$	230	$	—		$	1,220		3	%
Fixed maturities - Available for sale		6,784		25,486			14		—			32,284		85	%
Fixed maturities - Trading		140		114			—		—			254		1	%
Equity securities		1,182		488			49		—			1,719		5	%
Policy loans		—		201			—		—			201		0	%
Mortgage loans		191		876			—		—			1,067		3	%
Real estate and other investments		457		781			18		(265	)		991		3	%
Total cash and investments	$	9,462	$	28,228		$	311	$	(265	)	$	37,736		100	%
Unrealized gain/(loss) on equity securities	$	87	$	(3	)	$	—	$	—		$	84

Page 21

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

	Three Months Ended															Twelve Months Ended
	12/31/16			09/30/16			06/30/16			03/31/16			12/31/15			12/31/16			12/31/15
Property and Casualty Insurance:
Gross Investment Income
Fixed maturities - Available for sale	$	64		$	63		$	66		$	64		$	63		$	257		$	248
Fixed maturities - Trading		(1	)		2			1			1			—			3			4
Equity securities		13			13			12			13			14			51			48
Equity in investees		7			7			2			6			(1	)		22			11
Other investments		6			10			10			1			—			27			16
Gross investment income		89			95			91			85			76			360			327
Investment expenses		(4	)		(2	)		(2	)		(2	)		(2	)		(10	)		(8	)
Total net investment income	$	85		$	93		$	89		$	83		$	74		$	350		$	319
Average cash and investments (a)	$	9,779		$	9,647		$	9,465		$	9,366		$	9,113		$	9,550		$	8,956
Average yield (b)		3.48	%		3.86	%		3.76	%		3.54	%		3.25	%		3.66	%		3.56	%
Fixed Annuity:
Gross Investment Income
Fixed maturities - Available for sale	$	315		$	307		$	307		$	294		$	294		$	1,223		$	1,126
Fixed maturities - Trading		—			—			—			—			—			—			—
Equity securities		7			6			6			5			6			24			21
Equity in investees		6			9			2			5			2			22			16
Other investments		20			27			29			11			7			87			62
Gross investment income		348			349			344			315			309			1,356			1,225
Investment expenses		(4	)		(1	)		(2	)		(3	)		(2	)		(10	)		(10	)
Total net investment income	$	344		$	348		$	342		$	312		$	307		$	1,346		$	1,215
Average cash and investments (a)	$	29,192		$	28,548		$	27,964		$	27,186		$	26,401		$	28,223		$	25,174
Average yield (b)		4.72	%		4.88	%		4.88	%		4.60	%		4.65	%		4.77	%		4.83	%
AFG consolidated net investment income:
Property & Casualty	$	85		$	93		$	89		$	83		$	74		$	350		$	319
Annuity and Run-off:
Fixed Annuity		344			348			342			312			307			1,346			1,215
Variable Annuity		2			3			2			3			2			10			9
Run-off		6			5			5			5			19			21			80
Other		—			1			4			1			3			6			4
Consolidate CLOs		(8	)		(17	)		(19	)		7			11			(37	)		6
Total net investment income	$	429		$	433		$	423		$	411		$	416		$	1,696		$	1,633

(a) Average cash and investments is the average of the beginning and ending quarter balances, or the average of the five quarters balances.

(b) Average yield is calculated by dividing investment income for the quarter by the average cash and investment balance over the quarter.

Page 22

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

December 31, 2016	Amortized Cost			Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Investment Portfolio
US Government and government agencies	$	348		$	348	$	—			1	%		1	%
States, municipalities and political subdivisions		6,677			6,808		131			19	%		16	%
Foreign government		256			261		5			1	%		1	%
Residential mortgage-backed securities		3,371			3,639		268			11	%		9	%
Commercial mortgage-backed securities		1,446			1,493		47			4	%		3	%
Asset-backed securities		5,962			5,959		(3	)		17	%		14	%
Corporate and other bonds		16,034			16,395		361			47	%		40	%
Total AFG consolidated	$	34,094		$	34,903	$	809			100	%		84	%
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		4.56	%
Net of investment expense (a)		4.48	%
Approximate average life and duration:
Approximate average life		6.5 years
Approximate duration		5 years
December 31, 2015	Amortized Cost			Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Investment Portfolio
US Government and government agencies	$	319		$	321	$	2			1	%		1	%
States, municipalities and political subdivisions		6,671			6,885		214			21	%		18	%
Foreign government		225			232		7			1	%		1	%
Residential mortgage-backed securities		3,241			3,534		293			11	%		9	%
Commercial mortgage-backed securities		2,112			2,188		76			7	%		6	%
Asset-backed securities		4,961			4,934		(27	)		15	%		13	%
Corporate and other bonds		14,290			14,444		154			44	%		38	%
Total AFG consolidated	$	31,819		$	32,538	$	719			100	%		86	%
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		4.74	%
Net of investment expense (a)		4.69	%
Approximate average life and duration:
Approximate average life		6.5 years
Approximate duration		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 23

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

	December 31, 2016											December 31, 2015
Property and Casualty Insurance:	Amortized Cost			Fair Value		Unrealized Gain (Loss)			% of Fair Value			Amortized Cost			Fair Value		Unrealized Gain (Loss)			% of Fair Value
US Government and government agencies	$	295		$	295	$	—			4	%	$	255		$	257	$	2			4	%
States, municipalities and political subdivisions		2,588			2,605		17			39	%		2,807			2,891		84			42	%
Foreign government		245			249		4			4	%		213			219		6			3	%
Residential mortgage-backed securities		980			1,026		46			15	%		893			932		39			13	%
Commercial mortgage-backed securities		142			144		2			2	%		209			213		4			3	%
Asset-backed securities		1,445			1,440		(5	)		21	%		1,453			1,442		(11	)		21	%
Corporate and other bonds		976			993		17			15	%		979			970		(9	)		14	%
Property and Casualty Insurance	$	6,671		$	6,752	$	81			100	%	$	6,809		$	6,924	$	115			100	%
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		3.88	%										3.82	%
Net of investment expense (a)		3.67	%										3.71	%
Tax equivalent, net of investment expense (b)		4.20	%										4.31	%
Approximate average life and duration:
Approximate average life		4.5 years											5 years
Approximate duration		3.5 years											4 years
	December 31, 2016											December 31, 2015
Annuity and Run-off:	Amortized Cost			Fair Value		Unrealized Gain (Loss)			% of Fair Value			Amortized Cost			Fair Value		Unrealized Gain (Loss)			% of Fair Value
US Government and government agencies	$	52		$	52	$	—			0	%	$	62		$	62	$	—			0	%
States, municipalities and political subdivisions		4,089			4,203		114			15	%		3,864			3,994		130			15	%
Foreign government		11			12		1			0	%		12			13		1			0	%
Residential mortgage-backed securities		2,390			2,601		211			9	%		2,347			2,590		243			10	%
Commercial mortgage-backed securities		1,304			1,349		45			5	%		1,903			1,975		72			8	%
Asset-backed securities		4,517			4,519		2			16	%		3,508			3,492		(16	)		14	%
Corporate and other bonds		15,058			15,402		344			55	%		13,311			13,474		163			53	%
Total Annuity and Run-off	$	27,421		$	28,138	$	717			100	%	$	25,007		$	25,600	$	593			100	%
Annualized yield on available for sale fixed maturities:
Excluding investment expense (a)		4.72	%										4.98	%
Net of investment expense (a)		4.67	%										4.94	%
Approximate average life and duration:
Approximate average life		6.5 years											6.5 years
Approximate duration		5 years											5.5 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 24

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

	December 31, 2016
By Credit Rating (a)	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value
Investment grade
AAA	$	6,117	$	6,189	$	72			18	%
AA		7,123		7,257		134			21	%
A		8,323		8,487		164			24	%
BBB		8,999		9,193		194			26	%
Subtotal - Investment grade		30,562		31,126		564			89	%
BB		687		695		8			2	%
B		446		445		(1	)		1	%
Other (b)		2,399		2,637		238			8	%
Subtotal - Non-Investment grade		3,532		3,777		245			11	%
Total	$	34,094	$	34,903	$	809			100	%
97% of the fixed maturity portfolio is NAIC designated 1 or 2.
	December 31, 2015
By Credit Rating (a)	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value
Investment grade
AAA	$	6,519	$	6,655	$	136			20	%
AA		6,785		6,954		169			22	%
A		7,780		7,969		189			25	%
BBB		7,478		7,507		29			23	%
Subtotal - Investment grade		28,562		29,085		523			90	%
BB		790		765		(25	)		2	%
B		438		417		(21	)		1	%
Other (b)		2,029		2,271		242			7	%
Subtotal - Non-Investment grade		3,257		3,453		196			10	%
Total	$	31,819	$	32,538	$	719			100	%

97% 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 28 and 29 for more information.

Page 25

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

December 31, 2016	Amortized Cost		Fair Value		Unrealized Gain (Loss)		% of Fair Value			% of Investment Portfolio
Residential
Agency	$	243	$	243	$	—		5	%		0	%
Prime (Non-Agency)		1,406		1,557		151		30	%		4	%
Alt-A		1,093		1,170		77		23	%		3	%
Subprime		629		669		40		13	%		2	%
Commercial		1,446		1,493		47		29	%		3	%
Total AFG consolidated	$	4,817	$	5,132	$	315		100	%		12	%

• 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 78%; Subprime 85%; CMBS 99%.

• The average FICO score of our residential MBS securities is - Prime 740; Alt-A 710; Subprime 641.

• 96% of our Commercial MBS portfolio is investment-grade rated (81% AAA) and the average subordination for this group of assets is 37%.

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

December 31, 2015	Amortized Cost		Fair Value		Unrealized Gain (Loss)		% of Fair Value			% of Investment Portfolio
Residential
Agency	$	260	$	269	$	9		5	%		1	%
Prime (Non-Agency)		1,489		1,651		162		29	%		4	%
Alt-A		794		872		78		15	%		2	%
Subprime		698		742		44		13	%		2	%
Commercial		2,112		2,188		76		38	%		6	%
Total AFG consolidated	$	5,353	$	5,722	$	369		100	%		15	%

Page 26

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

Property and Casualty Insurance:	December 31, 2016
By Asset Type	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Inv Portfolio
Residential
Agency	$	192	$	191	$	(1	)		17	%		2	%
Prime (Non-Agency)		187		202		15			17	%		2	%
Alt-A		342		361		19			31	%		4	%
Subprime		259		272		13			23	%		3	%
Commercial		142		144		2			12	%		1	%
Total	$	1,122	$	1,170	$	48			100	%		12	%
	December 31, 2015
By Asset Type	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Inv Portfolio
Residential
Agency	$	151	$	153	$	2			13	%		2	%
Prime (Non-Agency)		218		231		13			20	%		2	%
Alt-A		241		257		16			23	%		3	%
Subprime		283		291		8			25	%		3	%
Commercial		209		213		4			19	%		2	%
Total	$	1,102	$	1,145	$	43			100	%		12	%
Annuity and Run-off:	December 31, 2016
By Asset Type	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Inv Portfolio
Residential
Agency	$	51	$	52	$	1			1	%		0	%
Prime (Non-Agency)		1,218		1,343		125			34	%		4	%
Alt-A		751		809		58			21	%		3	%
Subprime		370		397		27			10	%		1	%
Commercial		1,304		1,349		45			34	%		5	%
Total	$	3,694	$	3,950	$	256			100	%		13	%
	December 31, 2015
By Asset Type	Amortized Cost		Fair Value		Unrealized Gain (Loss)			% of Fair Value			% of Inv Portfolio
Residential
Agency	$	109	$	116	$	7			3	%		0	%
Prime (Non-Agency)		1,270		1,408		138			31	%		5	%
Alt-A		553		615		62			13	%		2	%
Subprime		415		451		36			10	%		2	%
Commercial		1,903		1,975		72			43	%		7	%
Total	$	4,250	$	4,565	$	315			100	%		16	%

Page 27

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

	December 31, 2016
By Credit Rating (a)	Amortized Cost		Fair Value		Unrealized Gain (Loss)		% of Fair Value
Investment grade
AAA	$	1,668	$	1,720	$	52		34	%
AA		164		169		5		3	%
A		256		268		12		5	%
BBB		274		288		14		6	%
Subtotal - investment grade		2,362		2,445		83		48	%
BB		211		212		1		4	%
B		330		333		3		6	%
Other		1,914		2,142		228		42	%
Total	$	4,817	$	5,132	$	315		100	%
97% of the mortgage-backed security portfolio has an NAIC 1 designation.
	December 31, 2015
By Credit Rating (a)	Amortized Cost		Fair Value		Unrealized Gain (Loss)		% of Fair Value
Investment grade
AAA	$	2,409	$	2,494	$	85		43	%
AA		255		263		8		5	%
A		329		345		16		6	%
BBB		272		292		20		5	%
Subtotal - investment grade		3,265		3,394		129		59	%
BB		253		258		5		5	%
B		305		311		6		5	%
Other		1,530		1,759		229		31	%
Total	$	5,353	$	5,722	$	369		100	%

97% 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.

Page 28

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

	Fair Value - December 31, 2016
By Credit Rating (a)	US Gov		Munis		Frgn gov		RMBS		CMBS		ABS		Corp/Oth		Total		% Total
Investment grade
AAA	$	299	$	1,727	$	171	$	508	$	1,213	$	2,053	$	218	$	6,189		18	%
AA		41		4,388		30		127		42		1,480		1,149		7,257		21	%
A		—		501		55		170		98		1,593		6,070		8,487		24	%
BBB		—		69		5		202		86		813		8,018		9,193		26	%
Subtotal - Investment grade		340		6,685		261		1,007		1,439		5,939		15,455		31,126		89	%
BB		—		4		—		184		29		16		462		695		2	%
B		—		8		—		307		25		1		104		445		1	%
CCC, CC, C		—		11		—		963		—		3		32		1,009		3	%
D		—		—		—		679		—		—		—		679		2	%
Subtotal - Non-Investment grade		—		23		—		2,133		54		20		598		2,828		8	%
Not Rated		8		100		—		499		—		—		342		949		3	%
Total	$	348	$	6,808	$	261	$	3,639	$	1,493	$	5,959	$	16,395	$	34,903		100	%
	Fair Value - December 31, 2015
By Credit Rating (a)	US Gov		Munis		Frgn gov		RMBS		CMBS		ABS		Corp/Oth		Total		% Total
Investment grade
AAA	$	262	$	1,607	$	138	$	640	$	1,854	$	1,986	$	168	$	6,655		20	%
AA		44		4,488		32		151		112		1,239		888		6,954		21	%
A		—		569		62		173		172		1,252		5,741		7,969		25	%
BBB		—		92		—		248		44		429		6,694		7,507		23	%
Subtotal - Investment grade		306		6,756		232		1,212		2,182		4,906		13,491		29,085		89	%
BB		—		20		—		258		—		14		473		765		3	%
B		—		—		—		306		6		2		103		417		1	%
CCC, CC, C		—		9		—		894		—		4		11		918		3	%
D		—		—		—		445		—		—		3		448		1	%
Subtotal - Non-Investment grade		—		29		—		1,903		6		20		590		2,548		8	%
Not Rated		15		100		—		419		—		8		363		905		3	%
Total	$	321	$	6,885	$	232	$	3,534	$	2,188	$	4,934	$	14,444	$	32,538		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.

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