American Financial Group Stock Earnings Reports

AFG reported solid 2025 Q3 results: core net operating earnings of $2.69 per share, up 16% year-over-year, and an annualized core operating ROE of 19%. Net investment income in the P&C operations rose ~5% YoY driven by higher interest rates and asset balances; roughly two-thirds of the $16.8–$17B portfolio is in fixed maturities yielding about 5.25% with a P&C fixed-maturity duration of 2.7 years. Alternative investments returned ~6.2% in the quarter (management expects longer-term returns averaging ~10%+). Management increased the regular quarterly dividend 10% to $0.88 and declared a $2.00 special dividend (~$167M), noting $54/share ($4.6B) of special dividends since 2021. AFG generated underwriting strength across its Specialty P&C segments: overall Specialty P&C combined ratio of 93% in Q3 (improving vs. prior year), Property & Transportation ~94.1%, Specialty & Casualty ~95.8% (pressures from certain lines), and Specialty Financial ~81.1%. Reported premium trends: full-year 2025 premium growth still expected in low single digits; Q3 renewal pricing averaged ~5% overall (higher in many specialty lines, excluding comp ~8%), with certain social-inflation-exposed lines seeing mid-teens renewal increases. Crop insurance seasonality affected quarter-to-quarter premium timing and will resolve more fully in Q4. Management emphasizes capital flexibility (special dividends, buybacks opportunistically, acquisitions) and confidence in underwriting discipline and the investment team to drive long-term shareholder value.