American Financial Group Stock Earnings Reports

American Financial Group (AFG) reported solid 2025 third quarter results with core net operating earnings of $2.69 per share (up 16% YoY) and an annualized core operating ROE of 19%. Key drivers included strong underwriting margins in Specialty P&C businesses, modestly higher net investment income (up ~5% YoY) driven by higher yields on fixed maturities, and improving performance in parts of the alternative investment portfolio (multifamily showing signs of recovery). The company highlighted disciplined underwriting and selective growth across its 30+ specialty businesses, with average renewal pricing up ~5% overall (8% ex-workers’ comp). Combined ratios were generally acceptable: Specialty P&C 93.0%, Property & Transportation ~94.1%, Specialty & Casualty ~95.8%, and Specialty Financial ~81.1%. Crop premiums timing impacted quarter-to-quarter comparables; most crop profitability is still expected to be recorded in Q4. Capital deployment remains active: AFG paid a regular dividend in Q3, raised the quarterly dividend 10% in October, and declared a $2.00 special dividend (~$167 million total payable Nov. 26), noting $54 per share (~$4.6 billion) of special dividends since 2021. Management expects continued excess capital through 2025 into 2026 and will evaluate acquisitions, special dividends, and buybacks as opportunities arise. The company reiterated confidence in its reserve strength, underwriting discipline, and long-term investment return expectations (alternatives targeting ~10%+ annually).