- Net earnings per share of $1.60;
includes $0.82 per share in realized losses on securities after
adopting new accounting standard related to equity securities
previously classified as “available for sale”
- Core net operating earnings of $2.42
per share, an increase of 43% from the prior year period
- First quarter annualized ROE of
12.3%; core operating ROE of 18.6%
- Announced special cash dividend of
$1.50 per share, payable May 25, 2018
- Full year 2018 core net operating
earnings guidance maintained at $7.90 - $8.40 per share
American Financial Group, Inc. (NYSE: AFG) today reported 2018
first quarter net earnings attributable to shareholders of $145
million ($1.60 per share) compared to $153 million ($1.72 per
share) for the 2017 first quarter. Effective January 1, 2018, AFG
adopted Accounting Standards Update (ASU) 2016-01, which requires
all equity securities previously classified as “available for sale”
to be reported at fair value, with holding gains and losses
recognized in net earnings – see Investments and Recently Adopted
Accounting Standards, below. Net earnings for the quarter include
$74 million ($0.82 per share) in after-tax net realized losses on
securities, including $71 million ($0.78 per share) in holding
losses to adjust equity securities to fair value. By comparison,
after-tax net realized gains on securities were $2 million ($0.03
per share) in the prior year period. The change in the federal
corporate tax rate from 35% to 21%, enacted by the Tax Cuts and
Jobs Act of 2017 and effective January 1, 2018, contributed to a
lower effective tax rate in 2018 as compared to 2017. Book value
per share was $58.32 as of March 31, 2018. Annualized return on
equity was 12.3% and 13.3% for the first quarters of 2018 and 2017,
respectively.
Core net operating earnings were $219 million ($2.42 per share)
for the 2018 first quarter, compared to $151 million ($1.69 per
share) in the 2017 first quarter. The improved results were
attributable to higher operating earnings in our Specialty Property
and Casualty (P&C) Insurance operations and our Annuity Segment
and the benefit of the lower corporate income tax rate. Book value
per share, excluding unrealized gains related to fixed maturities,
was $54.74 per share at March 31, 2018, up from $53.51 per share at
December 31, 2017. Core net operating earnings for the first
quarters of 2018 and 2017 generated annualized returns on equity of
18.6% and 13.1%, respectively.
The Company also announced today that its Board of Directors has
declared a special cash dividend of $1.50 per share of American
Financial Group common stock. The dividend is payable on May 25,
2018 to shareholders of record on May 15, 2018. The aggregate
amount of this special dividend will be approximately $133 million.
This special dividend is in addition to the Company’s regular
quarterly cash dividend of $0.35 per share most recently paid on
April 25, 2018.
AFG’s net earnings attributable to shareholders, determined in
accordance with U.S. generally accepted accounting principles
(GAAP), include certain items that may not be indicative of its
ongoing core operations. The table below identifies such items and
reconciles net earnings attributable to shareholders to core net
operating earnings, a non-GAAP financial measure. AFG believes that
its core net operating earnings provides management, financial
analysts, ratings agencies and investors with an understanding of
the results from the ongoing operations of the Company by excluding
the impact of net realized gains and losses and other special items
that are not necessarily indicative of operating trends. AFG’s
management uses core net operating earnings to evaluate financial
performance against historical results because it believes this
provides a more comparable measure of its continuing business. Core
net operating earnings is also used by AFG’s management as a basis
for strategic planning and forecasting.
In millions, except per share amounts Three months ended
March 31,
2018 2017 Components of
net earnings attributable to shareholders: Core operating earnings
before income taxes $ 267 $ 220 Pretax non-core item: Realized
gains (losses) on securities
(93 )
3 Earnings before income taxes 174 223
Provision (credit) for income taxes: Core operating earnings 52 67
Non-core item: Realized gains (losses) on securities
(19 ) 1 Total
provision (credit) for income taxes
33
68 Net earnings, including noncontrolling
interests 141 155 Less net earnings (losses) attributable to
noncontrolling interests: Core operating earnings (4 ) 2 Realized
gains (losses) on securities
-
- Total net earnings (losses) attributable to
noncontrolling interests
(4 )
2 Net earnings attributable to
shareholders $ 145
$ 153 Net
earnings: Core net operating earnings
(a) $ 219 $ 151
Realized gains (losses) on securities
(74
) 2 Net earnings attributable
to shareholders $ 145
$ 153
Components of Earnings Per Share: Core net operating
earnings
(a) $ 2.42 $ 1.69 Realized gains (losses) on
securities
(0.82 )
0.03 Diluted Earnings Per Share
$ 1.60
$ 1.72
Footnote (a) is contained in the
accompanying Notes to Financial Schedules at the end of this
release.
S. Craig Lindner and Carl H. Lindner III, AFG’s Co-Chief
Executive Officers, commented: “The year is off to a very strong
start, with core operating earnings establishing an all-time
quarterly high for AFG. Our Specialty P&C insurance operations
generated excellent underwriting margins, and earnings in our
Annuity Segment were outstanding.
“AFG had approximately $845 million of excess capital (including
parent company cash of approximately $280 million) at March 31,
2018. Where appropriate, our excess capital will be deployed into
AFG’s core businesses as we identify potential for healthy,
profitable organic growth, and opportunities to expand our
specialty niche businesses through acquisitions and start-ups that
meet our target return thresholds. In addition, returning capital
to shareholders in the form of regular and special cash dividends
and opportunistic share repurchases are also an important and
effective component of our capital management strategy. The $1.50
per share special cash dividend announced today reflects AFG’s
strong financial position and our confidence in the Company’s
financial future.
“We continue to expect core net operating earnings in 2018 to be
between $7.90 and $8.40 per share. Our core earnings per share
guidance excludes non-core items such as realized gains and losses,
as well as other significant items that are not able to be
estimated with reasonable precision, or that may not be indicative
of ongoing operations.”
Specialty Property and Casualty
Insurance Operations
Core operating earnings in AFG’s P&C insurance operations
were $188 million in the first quarter of 2018, compared to $169
million in the prior year period, an increase of 11%. Higher
P&C underwriting profit and higher P&C net investment
income were partially offset by lower year-over-year other
income.
The Specialty P&C insurance operations generated an
underwriting profit of $92 million in the 2018 first quarter,
compared to $79 million in the first quarter of 2017, an increase
of 16%. Higher underwriting profit in our Specialty Casualty Group
was partially offset by lower underwriting profit in our Property
and Transportation and Specialty Financial Groups.
The first quarter 2018 combined ratio of 91.7% improved 0.5%
from the prior year period. First quarter 2018 results include 5.1
points of favorable prior year reserve development, compared to 2.8
points of favorable development in the comparable prior year
period. Catastrophe losses were 1.2 points of the combined ratio in
the first quarter of 2018; by comparison, catastrophe losses added
0.7 points in the prior year period.
Gross and net written premiums were up 10% and 7%, respectively,
in the 2018 first quarter compared to the same quarter a year
earlier, with each of our Specialty P&C groups reporting growth
during the quarter. Average renewal pricing across our entire
P&C Group was up less than 1% for the quarter. Excluding our
workers’ compensation business, renewal pricing was up
approximately 3%. Further details about AFG’s Specialty P&C
operations may be found in the accompanying schedules.
The Property and Transportation Group reported an
underwriting profit of $33 million in the first quarter of 2018
compared to $43 million in the first quarter of 2017. Higher
underwriting profits in our agricultural businesses were more than
offset by lower underwriting profit in our transportation and
property & inland marine businesses. Catastrophe losses in this
group were $5 million in both the first quarters of 2018 and
2017.
First quarter 2018 gross written premiums in this group were 2%
higher than the comparable prior year period, while net written
premiums were flat year-over-year. The growth in gross written
premiums is primarily attributable to new business opportunities in
our property & inland marine and transportation businesses.
Higher cessions of crop insurance impacted net written premiums.
Overall renewal rates in this group increased 4% in the first
quarter of 2018.
The Specialty Casualty Group reported an underwriting
profit of $41 million in the first quarter of 2018 compared to $15
million in the comparable 2017 period. Higher profitability in our
workers’ compensation and executive liability businesses, primarily
attributed to higher prior year favorable reserve development, as
well as higher year-over-year underwriting profit in our excess
& liability lines, were the drivers of the improved results.
Catastrophe losses for this group were $5 million in the first
quarter of 2018 and $1 million in the comparable 2017 period.
Gross and net written premiums for the first quarter of 2018
were up 15% and 10%, respectively, compared to the same period in
2018, primarily as a result of growth within Neon. Higher premiums
in our executive liability and targeted markets businesses also
contributed to growth during the quarter. Neon continues to
purchase a significant reinsurance program, which impacted
year-over-year growth in net written premium. Renewal pricing for
this group was down 1% during the first quarter. Excluding rate
decreases in our workers’ compensation businesses, renewal rates in
this group were up 2%.
The Specialty Financial Group reported an underwriting
profit of $15 million in the first quarter of 2018, compared to $22
million in the comparable 2017 period. The decrease was driven
primarily by lower underwriting profitability in our financial
institutions business. Catastrophe losses for this group were $3
million in the first quarter of 2018, compared to a $1 million in
the prior year quarter.
First quarter 2018 gross and net written premiums were up 9% and
5%, respectively, when compared to the prior year period, primarily
as a result of higher premiums in our lender services and leasing
businesses, which were largely ceded. Renewal pricing in this group
was up approximately 2% for the quarter.
Carl Lindner III stated, "Each of our Specialty P&C
insurance groups reported strong underwriting margins in the first
quarter, and we achieved solid year-over-year growth in net written
premiums overall. I’m especially pleased by the performance of our
workers’ compensation businesses as we start the year. Based on
results during the first quarter, we continue to expect an overall
2018 calendar year combined ratio in the range of 92% to 94% and
net written premium growth between 3% and 7%.”
Further details about AFG’s Specialty P&C operations may be
found in the accompanying schedules and in our Quarterly Investor
Supplement, which is posted on our website.
Annuity Segment
As shown in the following table, AFG's Annuity Segment reported
$125 million in pretax earnings in the first quarter of 2018,
compared to $96 million in the first quarter of 2017. Earnings
before the impact of fair value accounting for fixed-indexed
annuities (FIAs) were $112 million, a 14% increase from the prior
year period.
Components of
Annuity Earnings Before Income Taxes
Dollars In millions Three months ended Pct.
March 31, Change
2018 2017
Annuity earnings before fair value accounting for FIAs $ 112
$ 98 14% Impact of fair value accounting for FIAs:
Interest accreted on embedded derivative (7 ) (3 ) nm Renewal
option costs lower (higher) than expected (4 ) 2 nm Other changes
in fair value 24 (1 )
nm
Pretax annuity earnings $ 125 $ 96
30%
Annuity Earnings Before Fair Value Accounting for FIAs –
Annuity earnings before fair value accounting for FIAs of $112
million in the first quarter of 2018 established a new all-time
high for the Annuity Segment. Quarterly average annuity investments
and reserves both grew 10% year-over-year. In addition, the Annuity
Segment earned unusually high returns on certain private equity and
limited partnership investments, which is not necessarily expected
to be recurring. The benefit of these items was partially offset by
the runoff of higher-yielding investments.
Impact of Fair Value Accounting for FIAs – Under GAAP, a
portion of the reserves for FIAs ($2.5 billion and $2.0 billion at
March 31, 2018 and March 31, 2017, respectively) is considered an
embedded derivative and is recorded at fair value based on the
estimated present value of certain expected future cash flows.
Assumptions used in calculating this fair value include projected
interest rates, option costs, surrenders, withdrawals and
mortality. Variances from these assumptions, as well as changes in
the stock market, will generally result in a change in fair value.
Some of these adjustments are not economic in nature for the
current reporting period, but rather impact the timing of reported
results.
The impact of fair value accounting for FIAs includes an expense
for annuity interest accreted on the FIA embedded derivative
reserve. The amount of interest accreted in any period is generally
based on the size of the embedded derivative and current short-term
interest rates.
“Other Changes in Fair Value” of $20 million in the first
quarter of 2018 reflects the benefit of significantly higher than
expected interest rates, partially offset by higher than expected
option costs for the Company’s FIA liabilities and the impact of a
decrease in the stock market. By comparison, during the first
quarter of 2017, the negative impact of lower than expected
interest rates was more than offset by the benefit of a higher
stock market and certain other items. For an analysis of fair value
accounting, see our Quarterly Investor Supplement, which is posted
on AFG’s website.
AFG’s Annuity Segment reported statutory premiums of $1.15
billion in the first quarter of 2018, compared to $1.29 billion in
the first quarter of 2017. Higher premiums in the retail channel
were more than offset by lower premiums in the financial
institutions channel. However, premiums in the first quarter of
2018 represent a 26% increase from sales reported in the fourth
quarter of 2017, reflecting growth in all product lines and
channels.
Craig Lindner stated, “I am pleased that 2018 is off to a strong
start for the Annuity Segment. We remain committed to achieving
appropriate returns on new business, and believe that our
investment skills and consumer-centric product strategy position us
well to respond to changing market conditions and consumer demand.
While our 2018 first quarter earnings were outstanding, we do not
anticipate a recurrence of certain items that favorably impacted
the quarter, including the exceptionally high returns on certain of
our investments (which impacted earnings before fair value
accounting).
“Furthermore, we expect to continue to see the negative impact
of higher FIA option costs, which impact fair value accounting. We
will continue to closely monitor these costs, which have been
elevated over the last two quarters. If this trend continues, we
will likely need to adjust renewal rates on our inforce indexed
annuity policies to help mitigate the higher costs. Our original
estimate for 2018 pretax annuity earnings remains unchanged and is
in the range of $385 to $425 million.
“Finally, due to stronger than expected first quarter sales in
our Retail channel, we now expect that 2018 full year annuity
premiums will be up 6% to 12% when compared to the $4.3 billion
sold in 2017, an increase from our original guidance of 2% to
6%.”
Annuity Segment 2018 guidance assumes (i) interest rates and the
stock market rise moderately from today’s levels, (ii) more
normalized income from certain investments required to be marked to
market through earnings, and (iii) higher option costs.
Fluctuations in the returns on investments, large changes in
interest rates and/or the stock market, and higher or lower FIA
option costs, as compared to our expectations, could lead to
significant positive or negative impacts on the Annuity Segment’s
results.
More information about premiums and the results of operations
for our Annuity Segment may also be found in our Quarterly Investor
Supplement.
Investments and Recently Adopted
Accounting Standards
Effective January 1, 2018, AFG adopted ASU 2016-01, which
requires that all equity securities previously classified as
“available for sale” be reported at fair value, with holding gains
and losses recognized in net earnings, instead of accumulated other
comprehensive income (AOCI). AFG recorded first quarter 2018 net
realized losses on securities of $74 million ($0.82 per share)
after tax and after deferred acquisition costs (DAC), which
included $71 million ($0.78 per share) in after-tax, after-DAC
holding losses to adjust equity securities to fair value. By
comparison, AFG recorded net realized gains of $2 million in the
comparable 2017 period. The impact to our income statement will
vary depending upon the level of volatility in the performance of
the securities held in our equity portfolio and the overall
market.
Unrealized gains on fixed maturities were $342 million after tax
and after DAC at March 31, 2018, a decrease of $277 million since
year end. A net unrealized gain on equity securities of $221
million included in AOCI as of December 31, 2017 was reclassified
to retained earnings as the cumulative effect of an accounting
change in connection with the adoption of ASU 2016-01, effective
January 1, 2018. This reclassification had no impact on net income
or overall shareholders’ equity.
Our portfolio continues to be high quality, with 89% of our
fixed maturity portfolio rated investment grade and 98% with a
National Association of Insurance Commissioners’ designation of
NAIC 1or 2, its highest two categories.
For the three months ended March 31, 2018, P&C net
investment income was approximately 16% higher than the comparable
2017 period, and included unusually high returns on certain private
equity and limited partnership investments.
In March 2017, AFG sold a hotel property in Cincinnati that was
owned and managed by a subsidiary of Great American Insurance
Company. AFG recognized an after-tax gain of $7 million on the
sale, which is recorded as “Other Income” and is included in
Specialty P&C core operating earnings.
More information about the components of our investment
portfolio may be found in our Quarterly Investor Supplement, which
is posted on our website.
About American Financial Group,
Inc.
American Financial Group is an insurance holding company, based
in Cincinnati, Ohio with assets of approximately $60 billion.
Through the operations of Great American Insurance Group, AFG is
engaged primarily in property and casualty insurance, focusing on
specialized commercial products for businesses, and in the sale of
fixed and fixed-indexed annuities in the retail, financial
institutions and education markets. Great American Insurance
Group’s roots go back to 1872 with the founding of its flagship
company, Great American Insurance Company.
Forward Looking
Statements
This press release contains certain statements that may be
deemed to be "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements in this press
release not dealing with historical results are forward-looking and
are based on estimates, assumptions and projections. Examples of
such forward-looking statements include statements relating to: the
Company's expectations concerning market and other conditions and
their effect on future premiums, revenues, earnings, investment
activities and the amount and timing of share repurchases;
recoverability of asset values; expected losses and the adequacy of
reserves for asbestos, environmental pollution and mass tort
claims; rate changes; and improved loss experience.
Actual results and/or financial condition could differ
materially from those contained in or implied by such
forward-looking statements for a variety of reasons including, but
not limited to: changes in financial, political and economic
conditions, including changes in interest and inflation rates,
currency fluctuations and extended economic recessions or
expansions in the U.S. and/or abroad; performance of securities
markets, including FIA option costs; new legislation or declines in
credit quality or credit ratings that could have a material impact
on the valuation of securities in AFG’s investment portfolio; the
availability of capital; regulatory actions (including changes in
statutory accounting rules); changes in the legal environment
affecting AFG or its customers; tax law and accounting changes;
levels of natural catastrophes and severe weather, terrorist
activities (including any nuclear, biological, chemical or
radiological events), incidents of war or losses resulting from
civil unrest and other major losses; development of insurance loss
reserves and establishment of other reserves, particularly with
respect to amounts associated with asbestos and environmental
claims; availability of reinsurance and ability of reinsurers to
pay their obligations; trends in persistency and mortality;
competitive pressures; the ability to obtain adequate rates and
policy terms; changes in AFG’s credit ratings or the financial
strength ratings assigned by major ratings agencies to AFG’s
operating subsidiaries; the impact of the conditions in the
international financial markets and the global economy (including
those associated with the United Kingdom's expected withdrawal from
the European Union, or "Brexit") relating to AFG’s international
operations; and other factors identified in AFG’s filings with the
Securities and Exchange Commission.
The forward-looking statements herein are made only as of the
date of this press release. The Company assumes no obligation to
publicly update any forward-looking statements.
Conference Call
The Company will hold a conference call to discuss 2018 first
quarter results at 11:30 a.m. (ET) tomorrow, Thursday, May 3, 2018.
Toll-free telephone access will be available by dialing
1-877-459-8719 (international dial-in 424-276-6843). The conference
ID for the live call is 4295529. Please dial in five to ten minutes
prior to the scheduled start time of the call.
A replay will be available two hours following the completion of
the call and will remain available until 11:59 p.m. (ET) on May 10,
2018. To listen to the replay, dial 1-855-859-2056 (international
dial-in 404-537-3406) and provide the conference ID 4295529.
The conference call and accompanying webcast slides will also be
broadcast live over the internet. To access the event, click the
following link:
https://www.afginc.com/news-and-events/event-calendar.
Alternatively, you can choose Events from the Investor
Relations page at www.AFGinc.com.
An archived webcast will be available immediately after the call
via the same link on our website until May 10, 2018 at 11:59 p.m.
(ET). An archived audio MP3 file will be available within 24 hours
of the call.
(Financial summaries follow)
This earnings release and AFG’s Quarterly Investor Supplement
are available in the Investor Relations section of AFG’s website:
www.AFGinc.com.
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES
SUMMARY OF EARNINGS AND SELECTED BALANCE SHEET DATA (In
Millions, Except Per Share Data) Three months
ended March 31,
2018 2017 Revenues
P&C insurance net earned premiums $ 1,107 $ 1,022 Life,
accident & health net earned premiums 6 6 Net investment income
495 435 Realized gains (losses) on securities (93 ) 3 Income (loss)
of managed investment entities: Investment income 58 51 Loss on
change in fair value of assets/liabilities (3 ) - Other income
49 59 Total revenues
1,619 1,576
Costs and expenses
P&C insurance losses & expenses 1,022 948 Annuity, life,
accident & health benefits & expenses 275 258 Interest
charges on borrowed money 15 21 Expenses of managed investment
entities 48 41 Other expenses
85
85 Total costs and expenses
1,445
1,353
Earnings before income taxes
174
223
Provision for income taxes
(b) 33
68 Net earnings including noncontrolling
interests 141 155
Less: Net earnings (losses) attributable
to noncontrolling interests
(4 ) 2 Net earnings attributable to
shareholders
$ 145 $
153 Diluted earnings per Common Share
$ 1.60 $
1.72 Average number of diluted shares 90.4 89.3
March 31, December 31,
Selected Balance
Sheet Data:
2018 2017 Total cash and investments $
45,949 $ 46,048 Long-term debt $ 1,301 $ 1,301 Shareholders’
equity
(c) $ 5,183 $ 5,330
Shareholders’ equity (excluding unrealized
gains/losses related to fixed maturities)(c)
$
4,865
$
4,724
Book value per share $ 58.32 $ 60.38
Book value per share (excluding unrealized
gains/losses related to fixed maturities)
$ 54.74 $ 53.51
Common Shares Outstanding
88.9
88.3
Footnotes (b) and (c) are contained in the
accompanying Notes to Financial Schedules at the end of this
release.
AMERICAN FINANCIAL GROUP, INC. SPECIALTY
P&C OPERATIONS (Dollars in Millions)
Three months ended Pct. March 31, Change
2018
2017 Gross written premiums
$ 1.458 $
1,324 10 %
Net written premiums
$ 1,102 $
1,027 7 %
Ratios (GAAP): Loss
& LAE ratio 57.8 % 59.5 %
Underwriting expense ratio
33.9 % 32.7
% Specialty Combined Ratio
91.7 % 92.2
% Combined Ratio – P&C Segment
91.8 % 92.3
%
Supplemental
Information:(d)
Gross Written Premiums: Property & Transportation $ 426
$ 416 2 % Specialty Casualty 853 744 15 % Specialty Financial
179 164 9 %
$ 1,458 $
1,324 10 %
Net Written Premiums:
Property & Transportation $ 324 $ 324 - % Specialty Casualty
594 540 10 % Specialty Financial 148 141 5 % Other
36 22 64 %
$ 1,102 $
1,027 7 %
Combined Ratio (GAAP):
Property & Transportation 90.4 % 87.3 % Specialty Casualty 92.9
% 97.0 % Specialty Financial 90.2 % 85.0 % Aggregate
Specialty Group 91.7 % 92.2 % Three months ended March 31,
2018 2017 Reserve
Development (Favorable) / Adverse: Property &
Transportation $ (18 ) $ (17 ) Specialty Casualty (35 ) (6 )
Specialty Financial (3 ) (9 ) Other
(1 )
3 $ (57 )
$ (29 )
Points on Combined Ratio:
Property & Transportation (5.1 ) (4.8 ) Specialty Casualty (6.0
) (1.1 ) Specialty Financial (1.8 ) (6.4 ) Aggregate
Specialty Group (5.1 ) (2.8 )
Footnote (d) is contained in the
accompanying Notes to Financial Schedules at the end of this
release.
AMERICAN FINANCIAL GROUP, INC. ANNUITY SEGMENT
(Dollars in Millions)
Components of
Statutory Premiums
Three months ended Pct. March 31, Change
2018 2017
Annuity
Premiums:
Financial Institutions $ 518 $ 749 (31 %) Retail 577 489 18 %
Education Market 46 45 2 % Variable Annuities 7 7 -
Total Annuity Premiums $ 1,148 $ 1,290 (11 %)
Components of
Annuity Earnings Before Income Taxes
Three months ended Pct. March 31, Change
2018 2017 Revenues: Net investment
income $ 394 $ 347 14 % Other income 26 27 (4 %)
Total revenues
420 374 12 % Costs and Expenses: Annuity benefits 182 196 (7
%) Acquisition expenses 81 52 56 % Other expenses 32
30 7 % Total costs and expenses 295 278 6 %
Annuity earnings before income taxes
$ 125 $ 96 30 %
Supplemental
Annuity Information
Three months ended Pct. March 31, Change
2018 2017
Earnings before fair value accounting for
FIAs
$
112
$
98
14 %
Impact of fair value accounting for
FIAs:
Interest accreted on embedded
derivative
(7 ) (3 )
nm
Renewal option costs lower (higher) than
expected
(4 ) 2 nm Other changes in fair value
24
(1 ) nm Earnings before income taxes
$ 125 $
96 30% Average fixed annuity reserves* $
33,329 $ 30,183 10% Net interest spread* 2.75 % 2.58 % Net
spread earned before fair value accounting for FIAs*
1.38
%
1.31
%
Net spread earned after impact of fair
value accounting for FIAs*
1.54
%
1.28
%
* Excludes fixed annuity portion of
variable annuity business.
AMERICAN FINANCIAL GROUP, INC. Notes to
Financial Schedules
a) Components of core net operating
earnings (in millions):
Three months ended March 31,
2018
2017
Core Operating
Earnings before Income Taxes:
P&C insurance segment $ 188 $ 169 Annuity segment, before fair
value accounting for FIAs 112 98 Impact of fair value accounting
for FIAs 13 (2 ) Interest & other corporate expense *
(42 ) (47 )
Core operating earnings before income taxes 271 218 Related income
taxes
52 67
Core net operating earnings
$ 219
$ 151 * Other
Corporate Expense includes income and expenses associated with
AFG‘s run-off businesses.
b)
Excluding the significant tax benefit
related to stock-based compensation in the first quarter of 2017,
AFG’s effective tax rate was 33%.
c)
Shareholders’ Equity at March 31, 2018
includes $342 million ($3.85 per share) in unrealized after-tax
gains on fixed maturities and $24 million ($0.27 per share) in
unrealized after-tax losses on fixed maturity-related cash flow
hedges. Shareholder’s Equity at December 31, 2017 includes $619
million ($7.01 per share) in unrealized after-tax gains on fixed
maturities and $13 million ($0.14 per share) in unrealized
after-tax losses on fixed maturity-related cash flow hedges.
d)
Supplemental
Notes:
•
Property & Transportation
includes primarily physical damage and liability coverage for
buses, trucks and recreational vehicles, inland and ocean marine,
agricultural-related products and other property coverages.
•
Specialty Casualty includes
primarily excess and surplus, general liability, executive
liability, professional liability, umbrella and excess liability,
specialty coverages in targeted markets, customized programs for
small to mid-sized businesses and workers’ compensation
insurance.
•
Specialty Financial includes risk
management insurance programs for lending and leasing institutions
(including equipment leasing and collateral and lender-placed
mortgage property insurance), surety and fidelity products and
trade credit insurance.
•
Other includes an internal
reinsurance facility.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180502006836/en/
American Financial Group, Inc.Diane P. Weidner, IRC,
513-369-5713Asst. Vice President – Investor RelationsorWebsites:www.AFGinc.comwww.GreatAmericanInsuranceGroup.com
American Financial (NYSE:AFG)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
American Financial (NYSE:AFG)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024