Co sees Q3 EPS of $0.95-1.00, ex items, vs $0.93 First Call consensus and sees FY08 $3.90-4.10 vs $3.95 First Call consensus. This guidance reflects better than expected results in our annuity businesses as a result of improved spreads between yields on investments and annuity crediting rates. These results will be partially offset by $23 million in after-tax hurricane losses in the third quarter. "We do not expect any material write-off of deferred acquisition costs in any of our annuity businesses for the year. AFG hedges its indexed annuities with highly matched, over-the-counter options, so its exposure in that line is minimal. Furthermore, since our variable business is relatively small, and since the Company has very few policies with living benefit or similar riders, we expect any DAC write-off in the variable segment to be immaterial. In addition, we continue to see higher earnings in our supplemental insurance business."