American Financial Group, Inc. (NYSE: AFG) (NASDAQ: AFG) today reported net earnings attributable to shareholders of $226 million ($2.39 per share) for the 2012 third quarter, compared to $97 million ($0.95 per share) for the 2011 third quarter. The 2012 third quarter results include $148 million ($1.57 per share) in after-tax non-core earnings, primarily the result of a $101 million after-tax gain on the sale of the Company’s supplemental insurance businesses, realized gains on securities and the results of AFG’s tax case resolution, which were offset somewhat by a reserve strengthening related to the Company’s asbestos and other environmental exposures. These, and other less significant non-core items, are outlined in the table below. Book value per share, excluding appropriated retained earnings and unrealized gains (losses) on fixed maturities, increased by $1.98 to $42.72 per share during the quarter. Net earnings attributable to shareholders for the 2012 nine month period were $438 million ($4.50 per share), compared with $233 million ($2.23 per share) in the comparable 2011 period.
Core net operating earnings were $78 million ($0.82 per share) for the 2012 third quarter, compared to $92 million ($0.91 per share) reported in the 2011 third quarter. Core net operating earnings for the first nine months of 2012 were $253 million ($2.59 per share) compared to $257 million ($2.47 per share) for the same period a year ago. Higher profits in our Annuity and Supplemental Insurance (“A&S”) Group were offset by lower underwriting earnings and lower investment income in our Specialty Property and Casualty Insurance (“P&C”) operations. Nine month annualized core operating return on equity was 9%.
During the third quarter of 2012, AFG repurchased 4.3 million shares of common stock at an average price per share of $37.64. Repurchases during the first nine months of 2012 were $315 million at an average price per share of $37.96.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV