How do you interpret annuity — amortization of deferred policy acquisition costs?

An increase may reflect higher historical sales or adjustments due to changes in policy life expectations.

How does annuity — amortization of deferred policy acquisition costs compare across companies?

Standard accounting metric for life and annuity insurers.

American Financial Group AFG Annuity — Amortization of deferred policy acquisition costs

Discontinued — last reported Q4 '20

Similar metrics at other companies

PRUAnnuities — Amortization of deferred policy acquisition costs

$58M-4.9%

GLAnnuity — Deferred Policy Acquisition Costs, Amortization Expense

$388K-7.2%

GLAnnuity — Deferred Policy Acquisition Cost Amortization Expense

$388K-7.2%

AMPVariable Annuity — Amortization of deferred acquisition costs

$27M-3.6%

PFGDeferred Fixed Annuity — Deferred Policy Acquisition Cost Amortization Expense

$4.1M-6.8%

APOIndexed Annuities — Deferred Policy Acquisition Costs, Amortization Expense

$84M+44.8%

Other financials

Income statement

See full

Revenue$1.9B-0.1%

Operating income$239.0M+21.3%

Net income$191.0M+24.0%

EPS (diluted)$2.29+24.5%

Balance sheet

See full

Cash & equivalents$1.4B+6.0%

Total debt$2.0B+19.3%

Total equity$4.7B+6.5%

Total assets$32.4B+6.8%

Cash flow

See full

Operating cash flow$474.0M+38.6%

Valuation

See full

Market cap$11.04B-3.6%

Enterprise value$11.72B-1.2%

P/E12.6×-1.8×

P/S1.4×0.0×

Profitability

See full

Operating margin13.6%+1.4pp

Net margin10.8%+1.1pp

Returns & leverage

See full

Return on equity19.4%+0.9pp

Debt / equity0.4×0.0×

Where this comes from

Reported directly by American Financial Group in its filing.

Tagged under the XBRL concept us-gaap:SupplementaryInsuranceInformationAmortizationOfDeferredPolicyAcquisitionCosts.

The official record: American Financial Group’s 10-K, filed February 25, 2021, on SEC EDGAR. View the filing →

Questions, answered.

What does annuity — amortization of deferred policy acquisition costs mean?: The portion of acquisition costs recognized as an expense during the current period.
How do you interpret annuity — amortization of deferred policy acquisition costs?: An increase may reflect higher historical sales or adjustments due to changes in policy life expectations.
How does annuity — amortization of deferred policy acquisition costs compare across companies?: Standard accounting metric for life and annuity insurers.