Insurer American Financial Group's Q3 adjusted EPS beats on underwriting and premium growth
AFG•American Financial Group reported Q3 adjusted EPS of $3.97, beating the $3.80 analyst consensus, as net written premiums grew 9%. It declared a $3.50-per-share special dividend.
1. Quarterly results
American Financial Group reported Q3 revenue of $2.58 billion, net income of $282 million and pretax profit of $359 million. Adjusted EPS was $3.97, above the $3.80 consensus estimate.
2. Underwriting and investment income
The company attributed record Q3 pretax property and casualty operating income to strong underwriting margins and 9% growth in net written premiums. Net investment income rose 41% year over year, driven by the sale of Charleston Harbor Resort & Marina.
3. Outlook and dividend
American Financial Group declared a $3.50-per-share special dividend. It expects renewal rate increases to support targeted returns and expects annual returns from alternative investments to average 10% or better.
