American Financial Group Stock Earnings Reports

AFG reported a strong start to 2026 with core net operating earnings of $2.47 per share (up 36% YoY) and an annualized core operating return on equity of 17% driven by improved underwriting margins across their specialty P&C businesses. Specialty P&C underwriting performance was notable: a 90.3 combined ratio for the Specialty Property & Transportation group overall improvements across Specialty Casualty and Specialty Financial groups, favorable prior-year reserve development, and continued renewal rate increases (average renewals up ~5% ex-workers' comp). Investment income benefited from higher invested balances and ~5.25% yields on fixed maturities, though alternatives produced a slight loss this quarter (notably a $13M mark-to-market on CLOs); management remains optimistic on alternatives with a long-term return target of ~10%+. AFG agreed to sell the Charleston Harbor Resort and Marina and expects to recognize ~ $125M pretax core operating gain on the sale, with proceeds providing flexibility for share repurchases, special dividends, or redeployment into higher-return opportunities. Capital return continued: nearly $260M returned in the quarter (including $60M buybacks, a $1.50 special dividend and the regular dividend). Management expects continued excess capital generation for 2026 and reiterated focus on disciplined underwriting, targeted pricing above loss trends in select lines (e.g., commercial auto liability), and opportunistic capital deployment to enhance shareholder value.