UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 21, 2017
AMERICAN FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
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Ohio
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1-13653
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31-1544320
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(State or other jurisdiction
of incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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301 East Fourth Street, Cincinnati, OH
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45202
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number, including area code: (513) 579-2121
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(Former name or former address, if changed since last report.)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Emerging growth company
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Section 8 Other Events
Item 8.01 Other Events.
On December 21, 2017, Neon, the United Kingdom-based Lloyd's insurer of American Financial Group, Inc. (the "Registrant"), issued a press release announcing that it had entered into a reinsurance to close transaction agreement for its 2008 to 2015 years of account with StarStone Underwriting Limited, a subsidiary of Enstar Group Limited.
A copy of the press release is furnished as Exhibit 99 and incorporated by reference in this Item 8.01.
Section 9 — Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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Press Release by Neon dated December 21, 2017.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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Date: December 22, 2017
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AMERICAN FINANCIAL GROUP, INC.
By:/s/ Mark A. Weiss
Mark A. Weiss
Vice President
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NEON PRESS RELEASE
For immediate release
LONDON: 21 December 2017
NEON ANNOUNCES THE REINSURANCE TO CLOSE (RITC) OF SYNDICATE 2468'S 2015 YEAR OF ACCOUNT BY STARSTONE SYNDICATE 2008
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COVERS 2008 - 2015 YEARS OF ACCOUNT
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WITH LAST YEAR'S RITC OF 2007 AND PRIOR YEARS OF ACCOUNT, WILL ELIMINATE PRE-NEON MARKETFORM LEGACY LIABILITIES
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Neon is pleased to announce that it has entered into an agreement for the Reinsurance to Close (RITC) of the 2015 and prior years of account for Syndicate 2468. The agreement has been entered into with StarStone, a global specialty insurer and subsidiary of Enstar Group Limited. Subject to formal regulatory approval, the RITC will be effective as of December 31, 2017 and is expected to complete in the first quarter of 2018.
In the Lloyd's market, a RITC transfers the responsibility for discharging all of the liabilities that attach to the transferred year of account, plus the right to any income due to the closing year of account in return for a premium. Neon will recognise a reserve release at the effective date of the transaction.
The transaction provides Neon with finality on its legacy Marketform business and leaves Neon better positioned to direct its energies and capital resources toward building a strong, profitable business and further establishing itself as a vibrant leading global specialty insurer.
Neon have a strong existing working relationship with StarStone and this latest RITC transaction follows a similar one executed last year, which covered liabilities relating to Syndicate 2468's 2007 and prior years of account. Both parties will work closely together to ensure a smooth transition.
Ian Martin, Managing Director at Neon, said:
"This transaction provides an important conclusion for Neon, giving us a clean break from any uncertainty associated with our legacy portfolio and allowing us to continue focusing our energy on building an exciting future."
"Neon has undergone significant transformation over the last two years, creating a business with phenomenal talent and disciplined risk selection, supported by best-in-class systems to deliver profitable growth. This finality means we can continue to move forward and further develop the platform we have built."
Jeff Consolino, Executive Vice President and Chief Financial Officer at American Financial Group and Chairman of Neon Capital Ltd, said:
"We are very pleased that Neon has secured agreement to close the 2008 - 2015 years of account with StarStone, following a competitive process. The transaction represents another significant accomplishment for the Neon team, provides an attractive result for Syndicate 2468's capital providers and eliminates the distraction of the legacy business as Neon executes on its business plan."
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NOTES
ABOUT NEON
Neon is a vibrant, global insurer operating in the specialist Lloyd's market, committed to offering innovative risk solutions and proactively creating bespoke coverage for its clients. Neon is highly experienced in underwriting a diverse range of property, specialty, casualty and marine risks on a direct and reinsurance basis, as well as through delegated authorities.
Neon is headquartered in Gracechurch Street, London, UK. The registered company name for the main regulated entity is Neon Underwriting Limited. Neon is a member of Great American Insurance Group. The members of Great American Insurance Group are subsidiaries of American Financial Group, Inc. (NYSE:AFG) an insurance holding company, based in Cincinnati, Ohio with assets of approximately US$60 billion. www.neonuw.com
LinkedIn: www.linkedin.com/company/neonuw/
Twitter: @neon_uw
PRESS CONTACTS
FTI Consulting
Tom Blackwell / Antonia Powell
+44 (0)203 727 1051/1485 | neon@fticonsulting.com