American Financial Group, Inc. Announces Initial $105 Million Pretax Loss Estimate for Third Quarter Catastrophe Events

CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) announced an initial estimate of its expected losses from third quarter catastrophe events, including Hurricanes Harvey, Irma and Maria, as well as the two earthquakes in Mexico in September. Based on information available at this time, AFG estimates that its pretax loss from these events, net of AFG's reinsurance coverage described below and inclusive of reinstatement premiums and other associated offsets, will be approximately $105 million. On an after-tax basis, this amount represents $0.95 per share. AFG maintains comprehensive catastrophe reinsurance coverage, including a $15 million per occurrence net retention for our U.S.-based P&C operations and a separate $15 million per occurrence retention for Neon. Subsequent to Hurricane Irma, AFG's operating units purchased replacement reinsurance coverage for those layers of the catastrophe reinsurance program expected to be affected by Hurricanes Harvey and Irma. AFG's P&C operations further maintain supplemental fully collateralized reinsurance coverage up to 95% of $200 million for catastrophe losses in excess of $100 million of traditional catastrophe reinsurance through a catastrophe bond. The Company will provide updated earnings guidance in conjunction with the release of its third quarter 2017 results later this month. The catastrophe losses incurred will not preclude consideration of the payment of a special dividend in the fourth quarter of 2017. Carl H. Lindner III and S. Craig Lindner, AFG Co-Chief Executive Officers, issued this statement: "Our thoughts are with those who have been affected by the devastation caused by these catastrophic events, including our policyholders, our employees and their respective families. Our P&C Group claims teams are working with our agents and policyholders to identify and process covered claims quickly and efficiently to help our customers recover and restore their businesses and rebuild their communities."