American Financial Group Incorporated (NYSE: AFG) is a holding company based in Cincinnati, Ohio whose primary business is insurance and investments. American Financial Group's purpose is to enable businesses and individuals to manage risk using insurance products and services tailored to meet their specific needs.
American Financial Group's major insurance division operates as the Great American Insurance Company, founded in 1872 and focuses on property and casualty insurance services. Other affiliates and subsidiaries include American Custom, Mid Continent, National Interstate, Republic Indemnity. Additional insurance specialties include (but are not limited to) equine, trucking, executive liability, fidelity and crime, and agri-business. Great American Financial Resources is a wholly owned subsidiary of American Financial Group and supplies a range of annuities, life insurance products and supplemental insurances to individuals and enterprises.
The parent company, AFG, is owned principally by financier Carl Lindner, Jr. and his family. Carl Lindner is Chairman of the Board of Directors of AFG. The senior Lindner's sons, Carl H. Lindner, III and S. Craig Lindner serve as Co-Chief Executive Officers.
American Financial Group was ranked 486th on the Fortune 500 list in 2004. Through the years American Financial Group has owned a number of subsidiaries, real estate properties, and companies, including The Mountain View Grand Resort & Spa in Whitefield, New Hampshire, The Cincinnatian in Cincinnati, Ohio, The Biltmore in Coral Gables, Florida, Le Pavillon in New Orleans, Louisiana, and the Charleston Harbor Resort & Marina in Charleston, South Carolina. Great American Insurance Group partnered with the first professional baseball team, the Cincinnati Reds, and Hamilton County to purchase naming rights for Great American Ball Park.
On December 6, 2006, American Financial sold assets acquired from successors to the dissolution of the Penn Central Railroad including the land under Grand Central Terminal and the 156 miles (251 km) of Metro North track leading to the New York City landmark to Argent Ventures. The company announced in December 2007 that they will combine their offices and move their headquarters to the brand new Great American Insurance Building at Queen City Square in 2011.
American Financial Group was one of the first publicly traded Fortune 500 companies to make political donations after corporations' freedom of speech rights were expanded to include donations as a result of the Citizens United v. Federal Election Commission decision. Carl Linder, Jr is a longtime top Republican donor, comfortably donating millions of his personal income to candidates and political action committees,[3]which sent ripples in campaign finance circles during the 2010 mid-term elections. American Financial, of which Linder has a non-majority 42% share, donated $400,000 to the Republican-allied PAC American Crossroads
American Financial Group, Inc. (AFG), incorporated in 1997, is a holding company, which through subsidiaries, is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of traditional fixed, indexed and variable annuities and a range of supplemental insurance products. The Company operates in three business segments: property and casualty insurance, annuity and supplemental insurance, and other, which includes holding company assets and costs. In January 2008, the Company completed the acquisition of approximately 67% of Marketform Group Limited. In January 2008, AFG completed the acquisition of Comp Holdings, LLC.
Property and Casualty Insurance Operations
AFG's specialty property and casualty insurance operations consist of approximately 25 insurance businesses offering a range of commercial coverages. Under the property and transportation segment, inland and ocean marine provides coverage primarily for builders' risk, contractors' equipment, property, motor truck cargo, marine cargo, boat dealers, marina operators/dealers and excursion vessels. The agriculture-related business provides federally reinsured multi-peril crop (allied lines) insurance covering perils, as well as crop-hail, equine mortality and other coverages for operating farms/ranches and agribusiness operations on a nationwide basis. The commercial automobile business provides coverage for all types of vehicles in a range of businesses and customized insurance programs for various transportation operations (such as buses and trucks), and a specialized physical damage product for the trucking industry.
Under the specialty casualty segment, executive and professional liability business markets coverage for directors and officers of businesses and non-profit organizations, errors and omissions, and provides non-United States medical malpractice insurance. The umbrella and excess liability business provides higher layer liability coverage in excess of primary layers. The excess and surplus business provides liability, umbrella and excess coverage for risks, using rates and forms that generally do not have to be approved by state insurance regulators. The general liability business provides coverage for contractor-related businesses, energy development and production risks, and environmental liability risks. The targeted programs includes coverage (primarily liability, property and, in certain cases, workers' compensation) for social service agencies, leisure, entertainment and non-profit organizations, customized solutions for other targeted markets and alternative risk programs using agency captives.
Under the specialty financial segment, fidelity and surety segment provides fidelity and crime coverage for government, mercantile and financial institutions and surety coverage for various types of contractors and public and private corporations. Lease and loan services provides coverage for insurance risk management programs for lending and leasing institutions, including vehicle and equipment leasing and collateral and mortgage protection. The California Workers’ Compensation writes coverage for prescribed benefits payable to employees (principally in California) who are injured on the job.
Annuity and Supplemented Insurance Operations
AFG's annuity and supplemental insurance operations are conducted through Great American Financial Resources, Inc. (GAFRI). GAFRI's primary insurance subsidiaries include Great American Life Insurance Company (GALIC), Annuity Investors Life Insurance Company (AILIC), Loyal American Life Insurance Company (Loyal) and United Teacher Associates Insurance Company (UTA). These companies market retirement products, primarily fixed, indexed and variable annuities, and various forms of supplemental insurance. All of these companies sell their products through independent producers. In addition, certain GAFRI subsidiaries also sell products through career agents.
AFG's principal retirement products are flexible premium deferred annuities (FPDAs) and single premium deferred annuities (SPDAs). Annuities are long-term retirement saving instruments that benefit from income accruing on a tax-deferred basis. The issuer of the annuity collects premiums, credits interest or earnings on the policy and pays out a benefit upon death, surrender or annuitization. FPDAs are characterized by premium payments, which are flexible in both amount and timing as determined by the policyholder and are generally made through payroll deductions. SPDAs are issued in exchange for a one-time lump-sum premium payment. Annuity contracts are generally classified as either fixed rate (including indexed) or variable. With a fixed rate annuity, AFG seeks to maintain a desired spread between the yield on its investment portfolio and the rate it credits.
In addition to fixed rate and indexed annuities, AFG offers variable annuities. With a variable annuity, the earnings credited to the policy vary based on the investment results of the underlying investment options chosen by the policyholder, generally without any guarantee of principal except in the case of death of the insured. Premiums directed to the underlying investment options maintained in separate accounts are invested in funds managed by various independent investment managers. AFG earns a fee on amounts deposited into separate accounts. Subject to contractual provisions, policyholders may also choose to direct all or a portion of their premiums to various fixed rate options, in which case AFG earns a spread on amounts deposited. Loyal and UTA offer a range of supplemental insurance products through independent agents. Principal products include coverage for Medicare supplement, cancer, long-term care, accidental injury, short-term disability and hospital indemnity.
Other Operations
Through subsidiaries, AFG is engaged in a range of other operations. It includes commercial real estate operations in Cincinnati (office buildings and The Cincinnatian Hotel), New Orleans (Le Pavillon Hotel), Whitefield, New Hampshire (Mountain View Grand Resort), Chesapeake Bay (Skipjack Cove Yachting Resort and Bay Bridge Marina), Charleston (Charleston Harbor Resort and Marina), Palm Beach (Sailfish Marina and Resort), Florida City, Florida (retail commercial development) and apartments in Louisville and Pittsburgh.
OVERALL
Beta: 1.11
Market Cap (Mil.): $3,717.04
Shares Outstanding (Mil.): 103.89
Annual Dividend: 0.65
Yield (%): 1.82
FINANCIALS
AFG Industry Sector
P/E (TTM): 8.24 2.84 17.32
EPS (TTM): -2.38 -- --
ROI: -- 0.08 4.63
ROE: 11.61 1.73 9.08
Name Age Since Current Position
Lindner, Carl 91 2005 Chairman of the Board
Lindner, S. Craig 56 2005 Co-President, Co-Chief Executive Officer, Director
Lindner, Carl 57 2005 Co-President, Co-Chief Executive Officer, Director
Jensen, Keith 60 2005 Chief Financial Officer, Senior Vice President
Evans, James 65 Senior Vice President, General Counsel, Director
Mischell, Thomas 63 1985 Senior Vice President
Emmerich, Theodore 84 1988 Independent Director
Verity, William 52 2002 Independent Director
Jacobs, Terry 68 2003 Independent Director
Ambrecht, Kenneth 65 2005 Independent Director
Joseph, Gregory 48 2008 Independent Director
Von Lehman, John 58 2008 Independent Director
COMPANY ADDRESS
American Financial Group Inc
One East Fourth Street
Cincinnati OH 45202
American Financial Group's major insurance division operates as the Great American Insurance Company, founded in 1872 and focuses on property and casualty insurance services. Other affiliates and subsidiaries include American Custom, Mid Continent, National Interstate, Republic Indemnity. Additional insurance specialties include (but are not limited to) equine, trucking, executive liability, fidelity and crime, and agri-business. Great American Financial Resources is a wholly owned subsidiary of American Financial Group and supplies a range of annuities, life insurance products and supplemental insurances to individuals and enterprises.
The parent company, AFG, is owned principally by financier Carl Lindner, Jr. and his family. Carl Lindner is Chairman of the Board of Directors of AFG. The senior Lindner's sons, Carl H. Lindner, III and S. Craig Lindner serve as Co-Chief Executive Officers.
American Financial Group was ranked 486th on the Fortune 500 list in 2004. Through the years American Financial Group has owned a number of subsidiaries, real estate properties, and companies, including The Mountain View Grand Resort & Spa in Whitefield, New Hampshire, The Cincinnatian in Cincinnati, Ohio, The Biltmore in Coral Gables, Florida, Le Pavillon in New Orleans, Louisiana, and the Charleston Harbor Resort & Marina in Charleston, South Carolina. Great American Insurance Group partnered with the first professional baseball team, the Cincinnati Reds, and Hamilton County to purchase naming rights for Great American Ball Park.
On December 6, 2006, American Financial sold assets acquired from successors to the dissolution of the Penn Central Railroad including the land under Grand Central Terminal and the 156 miles (251 km) of Metro North track leading to the New York City landmark to Argent Ventures. The company announced in December 2007 that they will combine their offices and move their headquarters to the brand new Great American Insurance Building at Queen City Square in 2011.
American Financial Group was one of the first publicly traded Fortune 500 companies to make political donations after corporations' freedom of speech rights were expanded to include donations as a result of the Citizens United v. Federal Election Commission decision. Carl Linder, Jr is a longtime top Republican donor, comfortably donating millions of his personal income to candidates and political action committees,[3]which sent ripples in campaign finance circles during the 2010 mid-term elections. American Financial, of which Linder has a non-majority 42% share, donated $400,000 to the Republican-allied PAC American Crossroads
American Financial Group, Inc. (AFG), incorporated in 1997, is a holding company, which through subsidiaries, is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of traditional fixed, indexed and variable annuities and a range of supplemental insurance products. The Company operates in three business segments: property and casualty insurance, annuity and supplemental insurance, and other, which includes holding company assets and costs. In January 2008, the Company completed the acquisition of approximately 67% of Marketform Group Limited. In January 2008, AFG completed the acquisition of Comp Holdings, LLC.
Property and Casualty Insurance Operations
AFG's specialty property and casualty insurance operations consist of approximately 25 insurance businesses offering a range of commercial coverages. Under the property and transportation segment, inland and ocean marine provides coverage primarily for builders' risk, contractors' equipment, property, motor truck cargo, marine cargo, boat dealers, marina operators/dealers and excursion vessels. The agriculture-related business provides federally reinsured multi-peril crop (allied lines) insurance covering perils, as well as crop-hail, equine mortality and other coverages for operating farms/ranches and agribusiness operations on a nationwide basis. The commercial automobile business provides coverage for all types of vehicles in a range of businesses and customized insurance programs for various transportation operations (such as buses and trucks), and a specialized physical damage product for the trucking industry.
Under the specialty casualty segment, executive and professional liability business markets coverage for directors and officers of businesses and non-profit organizations, errors and omissions, and provides non-United States medical malpractice insurance. The umbrella and excess liability business provides higher layer liability coverage in excess of primary layers. The excess and surplus business provides liability, umbrella and excess coverage for risks, using rates and forms that generally do not have to be approved by state insurance regulators. The general liability business provides coverage for contractor-related businesses, energy development and production risks, and environmental liability risks. The targeted programs includes coverage (primarily liability, property and, in certain cases, workers' compensation) for social service agencies, leisure, entertainment and non-profit organizations, customized solutions for other targeted markets and alternative risk programs using agency captives.
Under the specialty financial segment, fidelity and surety segment provides fidelity and crime coverage for government, mercantile and financial institutions and surety coverage for various types of contractors and public and private corporations. Lease and loan services provides coverage for insurance risk management programs for lending and leasing institutions, including vehicle and equipment leasing and collateral and mortgage protection. The California Workers’ Compensation writes coverage for prescribed benefits payable to employees (principally in California) who are injured on the job.
Annuity and Supplemented Insurance Operations
AFG's annuity and supplemental insurance operations are conducted through Great American Financial Resources, Inc. (GAFRI). GAFRI's primary insurance subsidiaries include Great American Life Insurance Company (GALIC), Annuity Investors Life Insurance Company (AILIC), Loyal American Life Insurance Company (Loyal) and United Teacher Associates Insurance Company (UTA). These companies market retirement products, primarily fixed, indexed and variable annuities, and various forms of supplemental insurance. All of these companies sell their products through independent producers. In addition, certain GAFRI subsidiaries also sell products through career agents.
AFG's principal retirement products are flexible premium deferred annuities (FPDAs) and single premium deferred annuities (SPDAs). Annuities are long-term retirement saving instruments that benefit from income accruing on a tax-deferred basis. The issuer of the annuity collects premiums, credits interest or earnings on the policy and pays out a benefit upon death, surrender or annuitization. FPDAs are characterized by premium payments, which are flexible in both amount and timing as determined by the policyholder and are generally made through payroll deductions. SPDAs are issued in exchange for a one-time lump-sum premium payment. Annuity contracts are generally classified as either fixed rate (including indexed) or variable. With a fixed rate annuity, AFG seeks to maintain a desired spread between the yield on its investment portfolio and the rate it credits.
In addition to fixed rate and indexed annuities, AFG offers variable annuities. With a variable annuity, the earnings credited to the policy vary based on the investment results of the underlying investment options chosen by the policyholder, generally without any guarantee of principal except in the case of death of the insured. Premiums directed to the underlying investment options maintained in separate accounts are invested in funds managed by various independent investment managers. AFG earns a fee on amounts deposited into separate accounts. Subject to contractual provisions, policyholders may also choose to direct all or a portion of their premiums to various fixed rate options, in which case AFG earns a spread on amounts deposited. Loyal and UTA offer a range of supplemental insurance products through independent agents. Principal products include coverage for Medicare supplement, cancer, long-term care, accidental injury, short-term disability and hospital indemnity.
Other Operations
Through subsidiaries, AFG is engaged in a range of other operations. It includes commercial real estate operations in Cincinnati (office buildings and The Cincinnatian Hotel), New Orleans (Le Pavillon Hotel), Whitefield, New Hampshire (Mountain View Grand Resort), Chesapeake Bay (Skipjack Cove Yachting Resort and Bay Bridge Marina), Charleston (Charleston Harbor Resort and Marina), Palm Beach (Sailfish Marina and Resort), Florida City, Florida (retail commercial development) and apartments in Louisville and Pittsburgh.
OVERALL
Beta: 1.11
Market Cap (Mil.): $3,717.04
Shares Outstanding (Mil.): 103.89
Annual Dividend: 0.65
Yield (%): 1.82
FINANCIALS
AFG Industry Sector
P/E (TTM): 8.24 2.84 17.32
EPS (TTM): -2.38 -- --
ROI: -- 0.08 4.63
ROE: 11.61 1.73 9.08
Name Age Since Current Position
Lindner, Carl 91 2005 Chairman of the Board
Lindner, S. Craig 56 2005 Co-President, Co-Chief Executive Officer, Director
Lindner, Carl 57 2005 Co-President, Co-Chief Executive Officer, Director
Jensen, Keith 60 2005 Chief Financial Officer, Senior Vice President
Evans, James 65 Senior Vice President, General Counsel, Director
Mischell, Thomas 63 1985 Senior Vice President
Emmerich, Theodore 84 1988 Independent Director
Verity, William 52 2002 Independent Director
Jacobs, Terry 68 2003 Independent Director
Ambrecht, Kenneth 65 2005 Independent Director
Joseph, Gregory 48 2008 Independent Director
Von Lehman, John 58 2008 Independent Director
COMPANY ADDRESS
American Financial Group Inc
One East Fourth Street
Cincinnati OH 45202