AFG Raising Rates Again Amidst Increasing Losses

Rate-increase targets are being increased for the California workers' comp business of American Financial Group Inc. (AFG) according to a recent press release. The company said that poor results in part in its California workers' compensation business would cause third-quarter earnings to be lower than expected. AFG raised rates for work comp by 20% for the first six months of 2000, but rate hikes were increased to 30% in July and August and are expected to be 35% in the fourth quarter. They expect earnings from insurance business to be 20 to 25 cents a share. According to A.M. Best acc...