American Financial Group, Inc. (NYSE: AFG) announced today that it has approved a one-time cash dividend of $ 2.00 per share of American Financial Group’s common stock. The dividend is payable on December 29, 2020 to the registered holders on December 21, 2020. The total amount of payment to be made in connection with this special dividend is approximately $ 174 million.
This special dividend is in addition to the company’s regular quarterly cash dividend of $ 0.50 per share, which was last paid on October 26, 2020.
AFG Co-CEOs Carl H. Lindner III and S. Craig Lindner stated, “Returning excess capital to shareholders in this special dividend of $ 2.00 is an important and effective part of our capital management strategy. It reflects that AFG’s strong financial position and our lack of confidence in the company’s financial future. After paying this special dividend, our excess capital will remain at a level that gives us the financial flexibility to do our business organically and through acquisitions and start-ups that meet our target return thresholds to increase and achieve opportunistic buybacks of AFG shares. “
About American Financial Group, Inc.
American Financial Group is an insurance holding company based in Cincinnati, Ohio, with assets of approximately $ 70 billion as of September 30, 2020. Through the operations of the Great American Insurance Group, AFG is primarily active and focused in property and casualty insurance specializes in commercial insurance products for businesses and the sale of traditional fixed and indexed annuities in retail, financial institutions, broker-dealer and registered investment advisory markets. The Great American Insurance Group’s roots date back to 1872 when the flagship Great American Insurance Company was founded.
This press release contains certain statements that may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this press release are not concerned with the historical results are forward-looking and are based on estimates, assumptions and projections. Examples of such forward-looking statements include statements relating to: the company’s expectations of market and other conditions and their impact on future awards, sales, income, investing activities, and the amount and timing of share buybacks; Recoverability of assets; expected losses and adequacy of reserves for asbestos, environmental pollution and claims for mass damages; Rate changes; and improved loss experience.
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Actual results and / or the financial situation could differ materially from the results contained or implied in such forward-looking statements for various reasons, including, but not limited to: changes in financial, political and economic conditions, including changes in interest and inflation rates, currency fluctuations and widespread economic recessions or expansion in the US and / or abroad; Performance of the securities markets, including the cost of stock index options; new legislation or deterioration in credit quality or credit ratings that could have a material impact on the valuation of securities in AFG’s investment portfolio; the availability of capital; Changes in insurance law or regulations, including changes in statutory accounting requirements and changes in the regulation of the Lloyd’s market, including changes in capital requirements; Changes in costs associated with exiting the Lloyd’s market and liquidating AFG’s Lloyd’s-based insurer Neon; the impact of the COVID-19 outbreak, including the impact on the international and domestic economies and credit markets, legislative or regulatory developments affecting the insurance industry, quarantines or other travel or health restrictions; Changes in the legal environment that affect AFG or its customers; Changes in tax law and accounting; The extent of natural disasters and storms, terrorist activities (including nuclear, biological, chemical or radiological events), incidents of war or losses as a result of pandemics, civil unrest and other major losses; Disruptions caused by cyber attacks or other technological violations or failures by AFG or its business partners and service providers that could have a negative impact on AFG’s business and / or expose AFG to legal disputes; Development of provisions for insurance claims and the formation of other provisions, in particular with regard to amounts in connection with asbestos and environmental damage; The availability of reinsurance and the ability of reinsurers to meet their obligations; Trends in persistence and mortality; Competitive pressure; the ability to obtain reasonable tariffs and contractual terms; Changes in AFG’s credit ratings or financial strength ratings assigned by major rating agencies to AFG’s operating subsidiaries; the impact of conditions in international financial markets and the global economy on AFG’s international operations; and other factors identified in AFG’s filings with the Securities and Exchange Commission.
The forward-looking statements contained herein speak only as of the date of this press release. The company assumes no obligation to publicly update any forward-looking statements.
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Diane P. Weidner, IRC
Vice President – Investor & Media Relations