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

An increase typically follows growth in the insurance book, while a decrease may indicate lower new business volume or policy terminations.

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

Standard insurance industry metric for expense recognition related to policy acquisition.

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

Discontinued — last reported Q4 '20

Similar metrics at other companies

APOOther Investment-type — Deferred Policy Acquisition Costs, Amortization Expense

$1M—

ACGLInsurance — Amortization of Deferred Acquisition Costs

$374M+22.9%

GLOperating Segments — Deferred Policy Acquisition Cost Amortization Expense

$129.62M+2.9%

GLHealth — Deferred Policy Acquisition Costs, Amortization Expense

$15.59M+7.4%

GLInvestment — Deferred Policy Acquisition Costs, Amortization Expense

$0—

RNROther — Amortization of Deferred Policy Acquisition Costs

$0—

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 other — amortization of deferred policy acquisition costs mean?: The annual expense recognized as the costs of acquiring insurance policies are gradually written off.
How do you interpret other — amortization of deferred policy acquisition costs?: An increase typically follows growth in the insurance book, while a decrease may indicate lower new business volume or policy terminations.
How does other — amortization of deferred policy acquisition costs compare across companies?: Standard insurance industry metric for expense recognition related to policy acquisition.