Insurer American Financial Group Inc. said Nov. 2 its quarterly loss widened because of losses from asbestos and the Sept. 11 attacks, and that it plans to cut its annual dividend in half. It also forecast 2002 earnings within Wall Street estimates.
The Cincinnati-based insurer posted a loss of $55.7 million, or 81 cents a share, after losses of $81.3 million from a previously announced study of asbestos and other environmental exposures at its property and casualty units. This compared with a loss of $22.1 million, or 38 cents a share, in the year-ago quarter.
Excluding the Sept. 11 attack on the World Trade Center and a boost in asbestos reserves, American Financial earned $27.9 million or 41 cents a share in the third quarter this year. Wall Street expected it to earn between 15 and 27 cents a share in the quarter, with a mean estimate of 21 cents a share, according to market data firm Thomson Financial/First Call.
American Financial also said it plans to cut its annual dividend to 50 cents a share from $1.00, to enable it to retain more than $30 million in capital. It said it expects 2002 operating earnings between $2.20 and $2.40 a share. Wall Street now expects the insurer to earn between $1.75 and $2.73 a share next year, with a mean estimate of $2.25 a share.
Topics Profit Loss
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