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American Financial Group: A Financially Stable Property Insurer And Dividend Grower
Seeking Alpha· 2025-01-23 13:43
Core Insights - Albert Anthony is a markets analyst and contributor on Seeking Alpha, covering over 200 companies and providing market commentary since 2023 [1] - He has a growing fan base of over 1,000 followers and operates a home-based fund called The Future Investor Fund [1] - In 2025, he plans to publish a book titled "The Future Investor: Growing a Diversified Portfolio" aimed at educating over 1 million people globally [1] Company Profile - Albert Anthony & Company is an independent sole proprietorship registered in Travis County, Texas [1] - The company does not provide personalized financial advice but offers general market commentary based on publicly available research [1] Educational Background - Albert Anthony has completed degrees and certificates from institutions such as Drew University, Corporate Finance Institute, Microsoft, CompTIA, and UVA Darden School of Business [1] - He is a member of the Croatian Association of Economists (HDE) as of 2024 [1] Professional Experience - His experience includes working as a management and information systems analyst at large companies, including a top 10 financial firm in the US [1] - He frequently attends business, innovation, and startup conferences across the US and Europe [1]
AFG Trading at a Premium to Industry: How Should You Play the Stock?
ZACKS· 2025-01-17 15:02
Core Viewpoint - American Financial Group, Inc. (AFG) is trading at a premium compared to the Zacks Property and Casualty Insurance industry, with a price-to-book value of 2.46X versus the industry average of 1.68X, indicating a strong valuation despite underperforming in the past year [1][2]. Financial Performance - AFG has a market capitalization of $11.56 billion, with an average trading volume of 0.3 million shares over the last three months [4]. - The stock closed at $137.75, trading above its 200-day simple moving average of $132.04, suggesting solid upward momentum [5]. - The trailing 12 months return on equity (ROE) for AFG is 19.9%, significantly higher than the industry average of 7.5%, reflecting efficient use of shareholders' funds [6]. Growth Factors - AFG is positioned for growth due to new business opportunities, increased exposure, and a favorable renewal rate environment, along with additional crop premiums from the Crop Risk Services acquisition [7]. - The company has maintained average renewal pricing across its entire P&C Group and aims to achieve renewal rate increases above prospective loss ratio trends [9]. Underwriting and Dividend Stability - AFG has consistently outperformed the industry average in combined ratio for over two decades, supported by its specialty niche focus, product line diversification, and underwriting discipline [10]. - The company has increased its dividend for 18 consecutive years, with a 10-year compound annual growth rate of 12.4%, indicating strong financial stability and effective capital management [11][12]. Conclusion - AFG's strategic acquisitions, new business opportunities, and improved combined ratio make it an attractive investment despite its high valuation, suggesting a hold recommendation for investors [13].
5 Dividend-Paying Insurers Worth Watching for Steady Income in 2025
ZACKS· 2024-12-19 18:15
As expected, the Fed cut the interest rate by 25 basis points to a target range of 4.25-4.50%, representing a full 1% drop since September. This marks the third rate cut since September this year as the inflation rate is expected to move to its desired 2% benchmark. However, the Fed now expects inflation to be at 2.5% through next year. Though there should be more cuts next year, as the Fed wants to take the rate between 3.75% and 4% by the end of 2025, the magnitude and the number of cuts is now anyone's g ...
AFG Rallies 24.4% YTD but Lags Industry: How to Play the Stock
ZACKS· 2024-11-28 15:20
Shares of American Financial Group, Inc. (AFG) have rallied 24.4% year to date, outperforming the Finance sector’s return of 24.1%. It, however, underperformed the industry’s growth of 34.3% and the S&P 500 composite’s return of 26.5%.Image Source: Zacks Investment ResearchWith a market capitalization of $12.41 billion, the average volume of shares traded in the last three months was 0.3 million.American Financial closed at $147.93 on Wednesday, near its 52-week high of $150.19. This proximity underscores i ...
4 Dividend-Paying P&C Stocks to Watch in the Insurance Space
ZACKS· 2024-11-26 15:41
The Zacks Property and Casualty Insurance industry is well-poised to benefit from better pricing, prudent underwriting, increased exposure, an improving rate environment and a solid capital position. With the ongoing economic expansion, insurers remain well-poised for growth. The buoyancy in the industry is further confirmed by its Zacks Industry Rank #31, which places it in the top 12% of more than 250 Zacks industries.However, industry players continue to grapple with issues like higher catastrophe events ...
American Financial (AFG) - 2024 Q3 - Quarterly Report
2024-11-08 16:50
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____ to ____ Commission File No. 1-13653 AMERICAN FINANCIAL GROUP, INC. Incorporated under the Laws of Ohio IRS Employer I.D. No. 31-1544320 301 East Fourth Street, ...
American Financial Group: Attractive Special Dividend Despite Cat Losses In Q3
Seeking Alpha· 2024-11-07 10:18
Core Viewpoint - American Financial Group (NYSE: AFG) has experienced a moderate performance over the past year, with a gain of approximately 19%, although recent concerns regarding catastrophe losses due to a late hurricane season have led to a pullback in shares [1]. Company Performance - The shares of American Financial Group have gained about 19% over the past year [1]. - Recent weeks have seen a pullback in shares due to concerns about potential catastrophe losses [1]. Market Context - The late hurricane season has raised concerns that may impact the company's stock performance [1].
American Financial (AFG) - 2024 Q3 - Earnings Call Transcript
2024-11-06 19:49
American Financial Group, Inc. (NYSE:AFG) Q3 2024 Earnings Conference Call November 6, 2024 11:30 AM ET Company Participants Diane Weidner - VP, IR Carl Lindner - Co-CEO Craig Lindner - Co-CEO Brian Hertzman - CFO Conference Call Participants Michael Zaremski - BMO Andrew Andersen - Jefferies Meyer Shields - Keefe, Bruyette, & Woods Operator Good day, and thank you for standing by. Welcome to the American Financial Group Third Quarter 2024 Conference Call [Operator Instructions]. Please be advised that toda ...
American Financial Q3 Earnings Miss on Higher Catastrophe Losses
ZACKS· 2024-11-06 14:31
American Financial Group, Inc. (AFG) reported third-quarter 2024 net operating earnings per share of $2.31, which missed the Zacks Consensus Estimate by 7.9%. The bottom line decreased 5.7% year over year. The decrease was due to higher year-over-year catastrophe losses related primarily to Hurricane Helene and lower favorable prior-year reserve development in the Specialty Property and Casualty (P&C) insurance operations, partially offset by higher investment income.Stay up-to-date with all quarterly relea ...
American Financial (AFG) - 2024 Q3 - Quarterly Results
2024-11-06 12:01
Press Release For Immediate Release American Financial Group, Inc. Announces Third Quarter Results and Declares Special Dividend • Net earnings per share of $2.16; includes ($0.15) per share in after-tax non-core items • Core net operating earnings $2.31 per share • Third quarter annualized ROE of 15.2%; core operating ROE of 16.2% • Overall average renewal rate increases excluding workers' compensation of 8% • Board of Directors declares $4.00 per share special dividend, payable November 26, 2024 CINCINNAT ...