American Financial Group, Inc. issued an initial estimate of its expected loss from Superstorm Sandy.
In a release dated November 15, the Company noted that based on information available at this time, AFG estimates that its pre-tax loss, net of reinsurance, will be in the range of $25 to $35 million.
Substantially all of the claims reported arise from policies covering businesses located in Sandy's path. S. Craig and Carl H. Lindner III, AFG Co-Chief Executive Officers, issued this statement: "We extend our deepest sympathies to all those who have been affected by the devastation caused by Sandy. Our claims teams are working with our agents and policyholders to identify and process covered claims as quickly and efficiently as possible."
AFG's insurance operations not affected by Sandy continue to report operating earnings. Including the currently estimated loss from this catastrophe, the Company has narrowed its 2012 core net operating earnings guidance to $3.10 - $3.30 per share. Furthermore, the estimated combined ratio for 2012 for the Company's property and casualty operations has been narrowed to a range of 94 percent - 96 percent. Combined ratio guidance for the Property and Transportation Group has been tightened to an expected range of 97 percent - 99 percent, and guidance for the Specialty Financial Group has narrowed slightly to 89 percent - 91 percent.
American Financial Group is an insurance holding company.
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