American Financial Has Higher Profit

NU Online News Service, July 31, 4:18 p.m.EDT?American Financial Group Inc. posted $30.5 million forits second-quarter profit today, more than doubling the $12.1million in income it recorded one year ago.

The Cincinnati-based property-casualty insurer attributed itsquarterly improvement to higher premium rates. The company alsosaid it achieved the strong second-quarter result despite a $28.5million charge from an arbitration decision for its share of a 1995property claim. The insurer also had a $6.7 million charge for itsfixed annuity operations because of the adverse effect of lowerinterest rates, American Financial said.

"We continue to benefit from the hard market conditions andprice firming in the commercial casualty markets," said CarlLindner, chief executive officer at American Financial. "We arepleased with the operating results of our ongoing insuranceoperations and expect these positive trends to continue," Mr.Lindner added.

Mr. Lindner also noted that American Financial benefited fromits 40 percent stake in Birmingham, Ala.-based Infinity Propertyand Casualty Corp. "The market has recognized Infinity's value asevidenced by the increase in its stock price of about 65 percentsince the initial public offering," he said.

American Financial Group offers p-c and specialty lines,including workers' compensation, professional liability, ocean andinland marine and multi-peril crop insurance, as well as automotiveinsurance.