Thursday, insurance holding company American Financial Group Inc. (AFG) reported a decline in its second quarter profit, hurt by charges and lower revenues. The company also reaffirmed its full year core net operating earnings outlook.
Net earnings for the second quarter were $60.3 million or $0.52 per share, down from $67.0 million or $0.54 per share in the prior-year quarter.
The results for the latest quarter included charges of $40.9 million or $0.35 per share in net realized losses on investments, mainly equity investments in financial institutions, and substantially lower charges for asbestos and other environmental exposures.
On a non-GAAP basis, core net operating earnings were $111.4 million or $0.96 per share, compared to $114.2 million or $0.93 per share in the year-ago quarter. On average, four analysts polled by First Call/Thomson Financial expected the company to earn $0.89 per share for the second quarter.
Earnings per share rose from last year on higher share cournt due to repurchases done in 2007 and 2008.
The Cincinnati, Ohio-based company's revenues declined to $1.03 billion from $1.09 billion in the same quarter of last year.
The property and casualty insurance operations reported revenues of $618.8 million, down from $633.5 million in the previous year quarter, due to higher catastrophe losses and lower underwriting profits in several of our specialty insurance operations.
The Annuity and Supplemental Insurance Group's core operating earnings before income taxes rose to $44.7 million for the second quarter of 2008, due to higher earnings in the fixed annuity and supplemental insurance businesses, partially offset by lower earnings in the variable annuity operations.
For the first six months of 2008, net earnings were $136.3 million or $1.16 per share, down from $180.6 million or $1.47 per share in the previous year period.
On a non-GAAP basis, core net operating earnings were $239.8 million or $2.05 per share, compared to $225.9 million or $1.84 per share in the year-ago period.
Revenues for the year-to-date period declined to $2.01 billion from $2.17 billion in the preceding year period.
Looking ahead, the company continues to expect 2008 core net operating earnings of $3.90 to $4.10 per share. Street expects earnings of $3.91 per share for the year. The guidance excludes the potential for significant catastrophe and crop losses, unforeseen adjustments to asbestos and environmental reserves, and large gains or losses from asset sales.
AFG closed Thursday's regular trading session at $28.97, down 35 cents or 1.19%. In the after-hours, the shares gained 8 cents.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.