Insurance coverage and investments holding firm, American Monetary Group has reported its web revenue for Q1 at $419 million in comparison with a web lack of $301 million for Q1 2020.
Its first quarter 2021 mixed ratio improved to 88.5%, bettering 3.7 factors from the prior yr interval.
P&C insurance coverage operations generated an underwriting revenue of $134 million within the 2021 first quarter, in comparison with $89 million within the first quarter of 2020. This improve was primarily as a consequence of larger underwriting profitability in our Property and Transportation Group.
Gross and web written premiums have been up 6% and three%, respectively in comparison with the prior yr quarter, with year-over-year progress reported inside every of the Specialty P&C teams.
Craig Lindner and Carl H. Lindner III, AFG’s Co-Chief Govt Officers, issued this assertion: “We’re extraordinarily happy with AFG’s first quarter 2021 outcomes, particularly within the wake of elevated business disaster ranges ensuing from extreme winter storms, a continued low rate of interest setting and the affect of the pandemic.
“We’re hopeful that the vaccine rollout will assist to facilitate a full re-opening of our financial system within the close to future, and are appearing on progress alternatives throughout our Specialty P&C portfolio of companies. We’re particularly happy with the efficiency of our different investments, that are marked to market via core earnings.
“These outcomes, mixed with our disciplined working philosophy, decrease disaster volatility than our friends, and a portfolio of diversified specialty insurance coverage companies helped us obtain an annualized core return on fairness of almost 15% within the quarter.
“AFG had roughly $1.2 billion of extra capital (together with mother or father firm money of roughly $200 million) at March 31, 2021. The sale of our Annuity enterprise to Massachusetts Mutual Life Insurance coverage Firm (MassMutual) is anticipated to shut within the second quarter and can considerably improve AFG’s money and extra capital.
“Returning capital to shareholders within the type of common and particular money dividends and thru opportunistic share repurchases is a crucial and efficient element of our capital administration technique.
“As well as, our extra capital will likely be deployed into AFG’s core companies as we establish potential for wholesome, worthwhile natural progress, and alternatives to broaden our specialty area of interest companies via acquisitions and start-ups that meet our goal return thresholds.
“Based mostly on the robust outcomes reported within the first quarter, we now anticipate AFG’s core web working earnings in 2021 to be within the vary of $7.00 to $8.00, a rise from our earlier vary of $6.25 to $7.25 per share.
“This steering vary excludes earnings from our discontinued annuity operations that will likely be offered to MassMutual, and continues to imagine zero earnings on mother or father firm money, together with the anticipated $3.4 billion in web money proceeds (web of straight owned actual property property to be acquired by AFG Mother or father) from the sale of the annuity operations as we proceed to guage choices for the deployment of extra capital.
“Our core earnings per share steering excludes non-core objects similar to outcomes of discontinued operations, realized good points and losses and different important objects that aren’t capable of be estimated with affordable precision, or that will not be indicative of ongoing operations.
“Moreover, the above steering displays a traditional crop yr and an annualized return of roughly 8% on different investments which might be marked to market via core earnings over the remaining three quarters of 2021.”