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AMERICAN FINANCIAL GROUP , INC . American Financial Group , Inc. Announces Second Quarter Results August 3 , 2021 • Net earnings per share of $ 11.70 ; includes $ 9.31 per share in after - tax non - core items • Net earnings from continuing operations of $ 240 million ( $ 2.81 per share ) • Core net operating earnings of $ 2.39 per share , a 257 % increase from the prior year period • Second quarter annualized ROE of 72.0 % ; core operating ROE of 14.7 % • Parent company cash and investments of approximately $ 3.0 billion ; excess capital of $ 3.2 billion at June 30 , 2021 • Full year 2021 core net operating earnings guidance increased to $ 8.40 - $ 9.20 per share , from previous guidance of $ 7.00 to $ 8.00 per share CINCINNATI -- ( BUSINESS WIRE ) -- Aug . 3 , 2021-- American Financial Group , Inc. ( NYSE : AFG ) today reported 2021 second quarter net earnings attributable to shareholders of $ 1.0 billion ( $ 11.70 per share ) compared to $ 177 million ( $ 1.97 per share ) in the 2020 second quarter . Net earnings for the 2021 second quarter included net favorable after - tax non - core items aggregating $ 797 million ( $ 9.31 per share ) , including an after - tax gain of $ 697 million ( $ 8.14 per share ) on the sale of AFG's discontinued annuity subsidiaries and $ 65 million ( $ 0.75 per share ) in earnings from the discontinued annuity operations . Beginning with the first quarter of 2021 and through the date of sale , the results of AFG's Annuity operations are reported as discontinued operations in accordance with generally accepted accounting principles ( GAAP ) , which included adjusting prior period results to reflect these operations as discontinued . Second quarter 2021 non - core items also included $ 34 million ( $ 0.40 per share ) in non - core after - tax net realized gains on securities . By comparison , net earnings in the 2020 second quarter included $ 117 million ( $ 1.30 per share ) in net favorable after - tax non - core items . Other details may be found in the table on the following page . AFG's book value per share was $ 66.12 at June 30 , 2021. During the second quarter of 2021 , AFG paid cash dividends of $ 14.50 per share , which included a $ 14.00 per share special dividend , and repurchased $ 114 million of its common stock at an average price per share of $ 116.13 ( adjusted for the $ 14 per share special dividend ) . Annualized return on equity was 72.0 % and 14.1 % for the second quarters of 2021 and 2020 , respectively . Core net operating earnings were $ 205 million ( $ 2.39 per share ) for the 2021 second quarter , compared to $ 60 million ( $ 0.67 per share ) in the 2020 second quarter . Core net operating earnings for the second quarters of 2021 and 2020 generated annualized returns on equity of 14.7 % and 4.8 % , respectively . The year - over - year increase was the result of substantially higher underwriting profit in the Specialty Property and Casualty ( " P & C " ) insurance operations and significantly higher P & C net investment income . Improved results from AFG's $ 1.6 billion of alternative investments were partially offset by lower other property and casualty net investment income , primarily due to lower short - term interest rates . Additional details for the 2021 and 2020 second quarters may be found in the table below . 2 ( 35 ) ( 23 ) Pretax Core Operating Earnings 169 30 Components of Pretax Core Operating Earnings In millions , except per share amounts P & C Pretax Core Operating Earnings ( Loss ) Real estate entities and other acquired from Annuity operations Other expenses Holding company interest expense Related provision for income taxes 2021 2020 ( a ) Before Impact of Three Months Ended June 30 , 2021 2020 ( a ) Alternative 2021 2020 ( a ) Core Net Operating Alternative Investments Investments , net of DAC Earnings , as reported 210 $ 225 $ 129 $ 63 $ ( 13 ) $ 288 $ 116 ( 2 ) 20 3 22 1 ( 20 ) ( 35 ) ( 20 ) ( 23 ) ( 23 ) ( 23 ) 84 83 ( 10 ) 252 74 16 17 ( 2 ) 47 14 Core Net Operating Earnings ( Loss ) $ 139 $ 68 $ 66 $ ( 8 ) $ 205 $ 60 Core Net Operating Earnings ( Loss ) Per Share $ 1.62 $ 0.76 $ 0.77 ( $ 0.09 ) $ 2.39 $ 0.67 Weighted Avg Diluted Shares Outstanding 85.6 90.0 85.6 90.0 85.6 90.0 Footnote ( a ) is contained in the accompanying Notes to Financial Schedules at the end of this release .