3. American Financial Group
Shares of American Financial Group of Cincinnati, Ohio closed at $30.31 Wednesday, up 23% year-to-date.
The company reported second-quarter net income of $100 million or 97 cents a share, increasing from $88 million or 93 cents the previous quarter but down from $132.1 million or $1.09 a share during the second quarter of 2009. The company's weather-related insurance losses increased year-over-year, while investment income declined.
According to SNL and based on combined statutory filings for American Financial Group's subsidiaries, the first-quarter ROE before policyholder dividends and income taxes was 41.29% and the ROA was 11.57%.
Based on the first-quarter statutory filings, American Financial Group's combined insurance subsidiaries saw an annualized 17.93% increase in cash and invested assets during the first quarter, and combined capital and surplus increased at a rate of 12.68%.
Only three analysts cover the shares, and two recommend buying, while the other has a sell rating.