CINCINNATI--(BUSINESS WIRE)--Oct. 9, 2009--
American Financial Group, Inc. (NYSE:AFG)(NASDAQ:AFG) announced today
that it expects to record an after-tax realized gain of approximately
$50 million ($0.42 per share) during the fourth quarter of 2009 on the
sale of a portion of its common stock investment in Verisk Analytics,
Inc. (“Verisk,” formerly Insurance Services Office, Inc.). AFG sold
approximately 35% of its position in conjunction with Verisk’s Initial
Public Offering (“IPO”), which was announced earlier this week. Half of
AFG’s remaining position in Verisk is held in Class B-1 common shares
that automatically convert to Class A common shares 18 months after the
date of the IPO, with the balance held in Class B-2 common shares that
convert to Class A shares 24 months after the date of the IPO. Prior to
automatic conversion to Class A shares, transfers of Class B shares are
subject to certain limitations, but may be sold to other holders of
Class B common stock.
Following the sale, American Financial Group owns approximately 6.7
million shares of Class B common stock with a cost basis of
approximately $24 million. These shares are convertible into Class A
shares having a fair value of approximately $178 million at yesterday’s
closing price of $26.60 per share.
Verisk aggregates and provides proprietary actuarial and underwriting
data related to the U.S. property and casualty insurance marketplace for
the purpose of understanding and managing business risk.
Financial Group, Inc.
American Financial Group is an insurance holding company, based in
Cincinnati, Ohio with assets in excess of $25 billion. Through the
operations of Great American Insurance Group, AFG is engaged primarily
in property and casualty insurance, focusing on specialized commercial
products for businesses, and in the sale of traditional fixed, indexed
and variable annuities and a variety of supplemental insurance products.
Great American Insurance Group’s roots go back to 1872 with the founding
of its flagship company, Great American Insurance Company.
Source: American Financial Group, Inc.
American Financial Group
Diane P. Weidner, 513-369-5713
Vice President - Investor Relations