Adjusted book value per share $42.52; growth of 10% in 2012
Twelve months core net operating earnings $3.27 per share; record net earnings $5.09 per share
Repurchased 2.6 million shares during the quarter
Full year 2013 core net operating earnings guidance between $3.60 - $4.00 per share
Cincinnati, Ohio – February 11, 2013 – American Financial Group, Inc. (NYSE/NASDAQ: AFG) today reported net earnings attributable to shareholders of $50 million ($0.54 per share) for the 2012 fourth quarter, compared to $109 million ($1.09 per share) for the 2011 fourth quarter. The fourth quarter 2012 results include a $99 million ($1.08 per share) after-tax charge to write-off deferred acquisition costs and strengthen reserves in AFG’s run-off long-term care operation. This non-core charge was partially offset by realized gains, the settlement of open tax years following a favorable decision in AFG’s tax case, and a gain resulting from a post-closing adjustment to the cash proceeds from the third quarter sale of AFG’s Medicare supplement and critical illness businesses. These and other non-core items are outlined in the table below. Book value per share, excluding appropriated retained earnings and unrealized gains on fixed maturities, increased by $3.89 to $42.52 per share during the year. Net earnings attributable to shareholders for the year were a record $5.09 per share, compared to $3.32 per share in 2011. Return on equity was 13% and 9% for 2012 and 2011, respectively.
Core net operating earnings for the 2012 and 2011 fourth quarter and full year periods are shown in the table below. Improved results in the Company’s fixed annuity operations were more than offset by lower underwriting profit and lower investment income in our specialty property and casualty (“P&C”) insurance operations. Core net operating earnings for 2012 and 2011 generated returns on equity of 8% and 10%, respectively.
During the fourth quarter of 2012, AFG repurchased $100 million of common stock at an average price per share of $38.77. Repurchases for the full year in 2012 were $415 million, at an average per share price that was approximately 90% of year end book value.
AFG’s net earnings attributable to shareholders, determined in accordance with generally accepted accounting principles (“GAAP”), include certain items that may not be indicative of its ongoing core operations. The following table identifies such items and reconciles net earnings attributable to shareholders to core net operating earnings, a non-GAAP financial measure that AFG believes is a useful tool for investors and analysts in analyzing ongoing operating trends.
The following information was filed by American Financial Group Inc (AFG) on Tuesday, February 12, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: AFG CIK: 1042046 Form Type: 10-K Annual Report Accession Number: 0001042046-13-000007 Submitted to the SEC: Thu Feb 28 2013 5:04:56 PM EST Accepted by the SEC: Thu Feb 28 2013 Period: Monday, December 31, 2012 Industry: Fire Marine And Casualty Insurance