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American Financial Group, Inc. Announces First Quarter Results
Net earnings per share of $3.63; includes $1.61 per share in realized gains on securities
Core net operating earnings of $2.02 per share
First quarter annualized ROE of 25.9%; core operating ROE of 14.5%
Announced special cash dividend of $1.50 per share, payable May 28, 2019
Full year 2019 core net operating earnings guidance maintained at $8.35 - $8.85 per share
CINCINNATI May 1, 2019 American Financial Group, Inc. (NYSE: AFG) today reported 2019 first quarter net earnings attributable to shareholders of $329 million ($3.63 per share) compared to $145 million ($1.60 per share) for the 2018 first quarter. Net earnings for the quarter include $145 million ($1.61 per share) inafter-tax net realized gains on securities, including $127 million ($1.40 per share) in holding gains to adjust equity securities to fair value. By comparison, the 2018 first quarter included $74 million ($0.82 per share) in after-tax net realized losses on securities. Other details may be found in the table below. Book value per share was $63.20 as of March 31, 2019. Annualized return on equity was 25.9% and 12.3% for the first quarters of 2019 and 2018, respectively.
Core net operating earnings were $184 million ($2.02 per share) for the 2019 first quarter, compared to $219 million ($2.42 per share) in the 2018 first quarter. Lower operating profitability was primarily the result of lower year-over-year earnings in our Annuity Segment, due to the impact of fair value accounting on fixed indexed annuities (FIAs). Book value per share, excluding unrealized gains related to fixed maturities, was $58.02 per share at March 31, 2019, up 6% from year end. Core net operating earnings for the first quarters of 2019 and 2018 generated annualized returns on equity of 14.5% and 18.6%, respectively.
The Company also announced today that its Board of Directors has declared a special cash dividend of $1.50 per share of American Financial Group common stock payable on May 28, 2019 to shareholders of record on May 15, 2019. This special dividend is in addition to the Companys regular quarterly cash dividend of $0.40 per share most recently paid on April 25, 2019.
AFGs net earnings attributable to shareholders, determined in accordance with U.S. generally accepted accounting principles (GAAP), include certain items that may not be indicative of its ongoing core operations. The table below identifies such items and reconciles net earnings attributable to shareholders to core net operating earnings, a non-GAAP financial measure. AFG believes that its core net operating earnings provides management, financial analysts, ratings agencies and investors with an understanding of the results from the ongoing operations of the Company by excluding the impact of net realized gains and losses and other special items that are not necessarily indicative of operating trends. AFGs management uses core net operating earnings to evaluate financial performance against historical results because it believes this provides a more comparable measure of its continuing business. Core net operating earnings is also used by AFGs management as a basis for strategic planning and forecasting.
The following information was filed by American Financial Group Inc (AFG) on Thursday, May 2, 2019 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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