A weak stock market hit American Financial Group Inc. in the second quarter, with the insurance company losing $15 million from investments in the quarter.

        Such losses lowered the firm's second-quarter net earnings to $6.3 million, or 9 cents a share, from $16.3 million, or 28 cents, a year earlier. Analysts had expected American Financial to earn almost 37 cents.

        Shares plunged $6.67, or almost 23 percent, to $22.70 Thursday.

        Also, Standard & Poor's said it might cut American Financial's credit ratings because the company said it is experiencing an increase in the frequency and severity of asbestos claims. S&P also noted the insurer suffered from a 28 percent drop in underwriting in its car and home insurance business.

        As of June 30, the company had recorded $430 million — before reinsurance recoverables of $83 million — for coverage related to exposure to environmental and asbestos claims.

        In other reports:

        • Great American Financial: Also impacted by heavy investing losses, it reported net income of $5.6 million, or 13 cents a share, in the second quarter. That compares to a loss of $1.9 million, or 5 cents a share, in last year's second quarter.

        Great American, whose stock is mostly owned by American Financial, saw operating profits grow from $19.5 million a year ago to $20.3 million, but also incurred $14.7 million in nonoperating losses.

        • Kendle International: The Cincinnati-based firm that provides clinical research consulting services for pharmaceutical and other medical care companies posted its second consecutive profitable quarter, earning $878,000 in net income during the second quarter.

        Kendle also posted record quarterly net revenues of $38.7 million, meaning a net earnings of 7 cents per share, compared with a net loss of $2.6 million over the same period last year.

        In the last three quarters of 2000, Kendle had posted losses — the only losing periods since the company was founded in 1981. Company officials blamed that primarily on the health care industry's recent focus on consolidation and not product development, adding that the recent results show the slump is probably over.

        The company's stock closed up 78 cents at $18.20.

        • Omnicare Inc.: The Covington-based pharmaceutical care and consulting company reported net income of $19.4 million, nearly an 82 percent increase over the same quarter last year.

        The profits equated into earnings of 21 cents per share, as the operating profit at Omnicare's institutional pharmacy business grew 22 percent.

        Omnicare stock closed at $24 Thursday, down 90 cents.

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