American Financial Group Inc (AFG) Reports Q3 2023 Earnings, Declares Special Dividend
AFG's Q3 2023 net earnings stand at $177 million, marking an increase from $165 million in Q3 2022.
Core net operating earnings for Q3 2023 were $208 million, up from $192 million in Q3 2022.
AFG's book value per share was $47.31 at the end of September 2023.
The company declared a special cash dividend of $1.50 per share, payable on November 22, 2023.
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On November 1, 2023, American Financial Group Inc (NYSE:AFG) reported its third-quarter earnings for 2023. The company's net earnings for the quarter stood at $177 million ($2.09 per share), a significant increase from $165 million ($1.93 per share) in the third quarter of 2022. The net earnings for Q3 2023 included net after-tax non-core items that reduced net income by $31 million ($0.36 per share loss).
Financial Highlights
AFG's core net operating earnings for the third quarter of 2023 were $208 million ($2.45 per share), up from $192 million ($2.24 per share) in the third quarter of 2022. This increase was primarily due to higher year-over-year net investment income, partially offset by lower underwriting profit in the Specialty Property and Casualty (P&C) insurance operations.
AFG's book value per share was $47.31 at the end of September 2023. During the third quarter of 2023, AFG paid cash dividends of $0.63 per share and repurchased $86 million of its common stock at an average price per share of $112.28. The company's growth in book value per share plus dividends was 1.9% for the three months ended September 30, 2023, and 11.9% year to date.
Special Dividend Declaration
AFG's Board of Directors declared a special cash dividend of $1.50 per share of American Financial Group common stock. The dividend is payable on November 22, 2023, to shareholders of record on November 13, 2023. The aggregate amount of this special dividend will be approximately $126 million. This special dividend is in addition to the company's regular quarterly cash dividend of $0.71 per share most recently paid on October 25, 2023.
Company's Commentary
We are pleased with AFGs performance during the third quarter. We achieved an annualized core operating return of over 18% in the quarter, with strong underwriting results despite elevated catastrophe losses during the quarter. These strong results, coupled with meaningfully higher year-over-year investment income and effective capital management, enable us to continue to create value for our shareholders." - S. Craig Lindner and Carl H. Lindner III, AFGs Co-Chief Executive Officers
Outlook
Based on the results reported in the first nine months of the year and expectations for the remainder of the year, AFG continues to expect its 2023 core net operating earnings to be in the range of $10.15 to $11.15 per share. This guidance reflects the company's updated expectations of a below-average crop year, offset by higher-than-previously expected net investment income.
Explore the complete 8-K earnings release (here) from American Financial Group Inc for further details.
This article first appeared on GuruFocus.
