American Financial Group – AFG – Pleased with strong P&C underwriting results and record operating earnings in annuity and supplemental businesses

American Financial Group, Inc. (NASDAQ: AFG) reported net earnings attributable to shareholders of $99 million ($1.01 per share) for the 2012 second quarter, compared to $48 million ($0.46 per share) reported for the 2011 second quarter. Net earnings for the first six months of 2012 were $212 million ($2.15 per share) compared to $136 million ($1.29 per share) for the same period a year ago. The 2012 second quarter and six month results include $9 million and $37 million, respectively, in net realized gains compared to $12 million and $9 million in the comparable prior year periods. Book value per share, excluding appropriated retained earnings and unrealized gains on fixed maturities, increased by $2.11 to $40.74 per share during the first six months of 2012.

Core net operating earnings were $90 million ($0.91 per share) for the 2012 second quarter, compared to $74 million ($0.72 per share) reported in the 2011 second quarter. Higher profits in our Annuity and Supplemental Insurance (“A&S”) Group and improved underwriting results in our Specialty Property and Casualty Insurance (“P&C”) operations were offset somewhat by lower P&C investment income. Core net operating earnings for the first six months of 2012 were $175 million ($1.77 per share) compared to $165 million ($1.57 per share) for the same period a year ago. Six month annualized core operating return on equity was 9%.

During the second quarter of 2012, AFG repurchased approximately 2.5 million shares of common stock at an average price per share of $38.55. Repurchases during the first six months of 2012 totaled 4.0 million shares at an average price per share of $38.31.

Carl H. Lindner III and S. Craig Lindner, AFG’s Co-Chief Executive Officers, issued this statement: “We are very pleased with our strong P&C underwriting results and record operating earnings in our annuity and supplemental businesses for the second quarter and first six months of 2012. AFG’s catastrophe losses were modest, representing only a few points on our combined ratio. Our specialty insurance business mix, focused and disciplined underwriting philosophy, and proven investment skills have been instrumental in helping us to navigate a period of industry-wide catastrophe activity and continued low interest rates.

About American Financial Group, Inc. – AFG

American Financial Group (AFG ) is an insurance holding company based in Cincinnati, Ohio with assets in excess of $35 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 traditional fixed and indexed annuities and a variety of supplemental insurance products, such as Medicare supplement.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.