American Financial Group

The transaction comes after AFG paid almost $2.1bn in special dividends to shareholders in 2021, following its $3.5bn all-cash divestiture of its annuity business last year, and said it would pursue acquisitions.

The Inside P&C research team looks forward to the big issues of the new year.

Assurely will act as an MGA for Great American as the carrier expands its executive liability operations in the small business segment.

The insurer is currently seeing ‘a steady flow’ of M&A opportunities in the market but would strike a deal only for double-digit returns over time.

Catastrophe losses at the insurer fell to $31mn from $57mn last year.

The Inside P&C Select Index outperformed the S&P 500 (5.7% to 2.9%) in August, despite Hurricane Ida making landfall.

Positive earnings results feed an optimistic outlook for the firm, despite some future challenges.

The transaction generated a $3bn war chest, much of which AFG has already distributed to shareholders.

Core operating earnings reached a record $288mn in the quarter, on a combination of improved underwriting results and strong investment returns.

Following strong year-to-date performance, P&C stocks were down in June after a change of tone in a Fed meeting.

The Cincinnati-based carrier said it expected the sale of Great American Life Insurance to MassMutual to close on May 28.

The carrier is the latest major US-listed business to move away from the challenged life insurance space.