Fitch Finds Positives In AFG Selling Infinity Shares

NU Online News Service, Dec. 19, 3:30 p.m.EST

The New York-based ratings agency also announced that it willnot take any ratings actions on either insurer, since Fitch hasalready been expecting American Financial to eventually divest itsremaining Infinity shares.

Infinity went public on the NASDAQ Market last February, butprior to its initial public offering, it was owned by AmericanFinancial Group.

Based in Birmingham, Ala., Infinity is currently thesecond-largest writer of policies for high-risk drivers in theUnited States, behind Progressive Corp. in Mayfield Village, Ohio,according to Fitch.

Fitch observed that the completed sale of Infinity sharesreflects American Financial's progress in exiting p-c personallines, while for Infinity, the transaction demonstrates its abilityto divest its ties to the former parent company.

American Financial also announced that the proceeds from thesale will be used to support further growth in its specialty p-clines and improve its financial leverage position.

The Cincinnati-based American Financial, through operations ofGreat American Insurance Group, primarily offers p-c insurance andfocuses on specialized commercial products for businesses. It alsooffers annuities, life and supplemental health insuranceproducts.

Currently, Fitch Ratings maintains an "A-plus" insurer financialstrength rating for American Financial's Great American Insuranceinter-company pool, and it has an "A" insurer financial strengthrating for Infinity Property and Casualty's insuranceoperations.