What does annuity and run-off — deferred sale inducement cost mean?

Capitalized expenses related to bonuses or incentives provided to attract new annuity customers.

How do you interpret annuity and run-off — deferred sale inducement cost?

Higher levels indicate aggressive customer acquisition strategies, while lower levels may reflect reduced incentive spending or lower new business activity.

How does annuity and run-off — deferred sale inducement cost compare across companies?

Common in fixed-indexed annuity products; comparable to DSIC assets reported by other annuity-focused insurers.

American Financial Group AFG Annuity and Run-off — Deferred Sale Inducement Cost

Discontinued — last reported Q4 '20

Similar metrics at other companies

PRUAnnuities — Deferred Sale Inducement Cost

$341M-8.1%

APOIndexed Annuities — Deferred Sale Inducement Cost

$2.2B+35.9%

FNFIndexed annuities — Deferred sales inducements

$821M+52.6%

FNFFixed indexed annuities — Deferred Sale Inducement Cost

$346M+73.0%

AMPVariable Annuity — Deferred Sale Inducement Cost

$107M-10.1%

PRUOther businesses — Deferred Sale Inducement Cost

$25M-7.4%

Other financials

Income statement

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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

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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

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Operating cash flow$474.0M+38.6%

Valuation

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Market cap$11.04B-3.6%

Enterprise value$11.72B-1.2%

P/E12.6×-1.8×

P/S1.4×0.0×

Profitability

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Operating margin13.6%+1.4pp

Net margin10.8%+1.1pp

Returns & leverage

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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:DeferredSalesInducementsNet.

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

Questions, answered.

What does annuity and run-off — deferred sale inducement cost mean?: Capitalized expenses related to bonuses or incentives provided to attract new annuity customers.
How do you interpret annuity and run-off — deferred sale inducement cost?: Higher levels indicate aggressive customer acquisition strategies, while lower levels may reflect reduced incentive spending or lower new business activity.
How does annuity and run-off — deferred sale inducement cost compare across companies?: Common in fixed-indexed annuity products; comparable to DSIC assets reported by other annuity-focused insurers.