American Financial Group

American Financial Group reported core operating earnigns of $2.25p/sh, an increase of 3% versus $2.19p/sh in the prior year period and a hefty beat to consensus at $2.01.

The combined ratio deteriorated by 1.3 percentage points to 95 percent.

AFG’s decision to retain the group looks like a bet on improved pricing and market transformation.

Neon CEO Martin Reith and AFG CFO Jeff Consolino highlight the improving rating environment and the new Lloyd’s strategic vision as “tailwinds” for the UK company.

The Lloyd’s business was unable to secure a final offer from MDP which met the seller’s expectations.