Exhibit 99.1

 

LOGO

 

American Financial Group, Inc. Announces 2013 Fourth Quarter and Full Year Results

 

    Record full year net earnings per share of $5.16

 

    Record fourth quarter core net operating earnings per share of $1.28; up 91% from prior year period

 

    Core net operating earnings per share of $4.22 for the full year; up 29% from 2012

 

    Full year 2014 core net operating earnings guidance between $4.50—$4.90 per share

 

    Adjusted book value per share $45.90

Cincinnati, Ohio – January 30, 2014 – American Financial Group, Inc. (NYSE/NASDAQ: AFG) today reported net earnings attributable to shareholders of $158 million ($1.73 per share) for the 2013 fourth quarter, compared to $50 million ($0.54 per share) for the 2012 fourth quarter. Results for the fourth quarter of 2013 include $41 million ($0.45 per share) in after-tax realized gains. Fourth quarter 2012 results include net charges of $11 million ($0.13 per share) in after-tax non-core items, which are outlined in the table below. Book value per share, excluding appropriated retained earnings and unrealized gains on fixed maturities, increased by $3.38 (8%), to $45.90 per share during the year. Total value creation, measured as growth in book value plus dividends, was $5.19 per share, or 12%, during 2013.

Net earnings attributable to shareholders for the year were a record $5.16 per share, compared to $5.09 per share in 2012. Return on equity was 11.9% and 12.7% for 2013 and 2012, respectively.

Core net operating earnings were $117 million ($1.28 per share) for the 2013 fourth quarter, compared to $61 million ($0.67 per share) in the 2012 fourth quarter. Record earnings from our Annuity segment and significantly higher underwriting profitability in our Specialty Property and Casualty (“P&C”) insurance operations were the primary drivers of the improved quarterly results. Full year 2013 core net operating earnings increased by 23% over the prior year. Core net operating earnings for the fourth quarters of 2013 and 2012 generated annualized returns on equity of 11.5% and 6.4%, respectively.

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.

 

In millions    Three months ended
December 31,
    Twelve months ended
December 31,
 
     2013      2012     2013     2012  

Components of net earnings attributable to shareholders:

         

Core net operating earnings(a)

   $ 117       $ 61      $ 385      $ 314   

Non-Core Items:

         

Gain on sale of Med supp & critical illness businesses

     —           13        —          114   

Other realized gains

     41         36        138        128   

Long-term care reserve charge

     —           (99     —          (99

Special A&E charges(b)

     —           —          (49     (21

AFG tax case and settlement of open tax years

     —           39        —          67   

Other

     —           —          (3     (15
  

 

 

    

 

 

   

 

 

   

 

 

 

Net earnings attributable to shareholders

   $ 158       $ 50      $ 471      $ 488   
  

 

 

    

 

 

   

 

 

   

 

 

 

Footnotes (a) and (b) are contained in the accompanying Notes to Financial Schedules at the end of this release.

 

Page 1


The following information was filed by American Financial Group Inc (AFG) on Friday, January 31, 2014 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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