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A month has gone by since the last earnings report for American Financial Group (AFG - Free Report) . Shares have lost about 2.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is American Financial due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for American Financial Group, Inc. before we dive into how investors and analysts have reacted as of late.

AFG Q2 Earnings Beat on Strong P&C Underwriting, Investment Income

American Financial Group, Inc. reported second-quarter 2026 net operating earnings per share of $2.82, which surpassed the Zacks Consensus Estimate by 17%. The bottom line increased 31.8% year over year, driven by underwriting income and stronger returns from its alternative investment portfolio. Total revenues increased approximately 5.5% year over year, to $2.03 billion from $1.924 billion.  The top line also beat the Zacks Consensus Estimate by 0.65%.

The quarterly results benefited from record pretax Property & Casualty ("P&C") operating income, healthy premium growth, improved underwriting margins and higher investment income from alternative investments.

Behind the HeadlinesNet earned premiums rose 2.9% year over year to approximately $1.7 billion in the second quarter of 2026. The figure was slightly below both the Zacks Consensus Estimate and our estimate of $1.71 billion. Net investment income rose 20.1% year over year to $221 million in the quarter under review. The figure was higher than our estimate of $195.4 million and surpassed the Zacks Consensus Estimate of $197.9 million.

Total costs and expenses increased 1.1% year over year to $1.7 billion due to higher underwriting expenses and interest charges, partly offset by lower losses and loss adjustment expenses. Our estimate was $1.72 billion.

Segmental UpdateSpecialty P&C Insurance: The segment generated $1.9 billion in net written premiums, which improved 6% year over year, reflecting new business opportunities, favorable renewal pricing and increased exposures while maintaining disciplined underwriting. The Specialty P&C Insurance segment’s underwriting profit increased 26.3% year over year to $144 million in the quarter, driven by higher underwriting profit across Property & Transportation and Specialty Financial groups. The figure exceeded our estimate of $143 million. Pre-tax core operating earnings before income taxes of the P&C Insurance segment were $350 million, up 28.2% year over year.

Property & Transportation Group: Net written premiums increased 5% year over year to $797 million in the second quarter, driven by crop insurance growth, favorable pricing and higher exposures. The Property & Transportation Group generated underwriting profit of $57 million, more than double the $27 million reported a year ago, driven by stronger transportation and agricultural business performance. The combined ratio improved 490 basis points year over year to 90.3%.

Specialty Casualty Group: Net written premiums increased 6% year over year to $812 million. The Specialty Casualty Group generated underwriting profit of $45 million, down from $49 million in the prior-year quarter, due to lower workers' compensation and executive liability profitability, offset by strength in energy, construction and environmental liability businesses. The combined ratio deteriorated 60 basis points year over year to 94.5%.

Specialty Financial Group: Net written premiums rose 10% year over year to $306 million. In the Specialty Financial Group, underwriting profit of $42 million, up from $38 million in the prior-year quarter, was primarily driven by stronger performance in its fidelity/crime and financial institutions businesses. Catastrophe losses in Specialty Financial Group totaled $10 million in the reported quarter, narrower than the year-ago loss of $19 million. The current combined ratio of 85.6% improved 50 basis points year over year.

Financial UpdateAmerican Financial exited the second quarter of 2026 with total cash and investments of $17.1 billion, which decreased 0.7% from the 2025-end level. Long-term debt of $1.82 billion remained unchanged from the 2025-end level.
As of June 30, 2026, the company’s book value per share, excluding accumulated other comprehensive income (AOCI), was $59.85 compared with $58.38 at the end of 2025. Annualized return on equity was 20.3% in the second quarter, up 530 basis points year over year.

AFG’s Prudent Capital DeploymentAmerican Financial repurchased $26 million of its common stock in the second quarter of 2026. It paid total cash dividends of 88 cents per share, continuing its disciplined capital management strategy.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 19.27% due to these changes.

VGM ScoresCurrently, American Financial has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, American Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Algert Global LLC boosted its holdings in American Financial Group, Inc. (NYSE:AFG – Free Report) by 844.4% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 108,320 shares of the insurance provider’s stock after purchasing an additional 96,850 shares during the period. Algert Global LLC owned about 0.13% of American Financial Group worth $15,158,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in American Financial Group during the second quarter valued at approximately $1,079,329,000. Charles Schwab Investment Management Inc. grew its stake in shares of American Financial Group by 2.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,567,721 shares of the insurance provider’s stock valued at $350,956,000 after buying an additional 57,246 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of American Financial Group by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 1,732,557 shares of the insurance provider’s stock valued at $236,645,000 after buying an additional 29,731 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in American Financial Group by 19.0% during the first quarter. Dimensional Fund Advisors LP now owns 1,506,510 shares of the insurance provider’s stock worth $192,395,000 after buying an additional 240,509 shares during the last quarter. Finally, Northern Trust Corp increased its holdings in American Financial Group by 33.2% during the third quarter. Northern Trust Corp now owns 1,026,783 shares of the insurance provider’s stock worth $149,623,000 after buying an additional 255,693 shares during the last quarter. 64.37% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets In related news, SVP Michelle A. Gillis sold 2,247 shares of the company’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $139.00, for a total value of $312,333.00. Following the transaction, the senior vice president directly owned 13,135 shares in the company, valued at approximately $1,825,765. This represents a 14.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Mark A. Weiss sold 2,813 shares of the firm’s stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $144.76, for a total transaction of $407,209.88. Following the transaction, the vice president directly owned 6,648 shares in the company, valued at approximately $962,364.48. This represents a 29.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 16,430 shares of company stock worth $2,255,061 in the last 90 days. Company insiders own 16.90% of the company’s stock.

American Financial Group Stock Performance Shares of AFG stock opened at $143.70 on Wednesday. American Financial Group, Inc. has a 52 week low of $123.09 and a 52 week high of $150.02. The company has a market capitalization of $11.92 billion, a price-to-earnings ratio of 12.56 and a beta of 0.62. The company has a 50-day simple moving average of $141.69 and a 200 day simple moving average of $134.67. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.49 and a current ratio of 0.49. American Financial Group (NYSE:AFG – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The insurance provider reported $2.82 earnings per share for the quarter, beating the consensus estimate of $2.32 by $0.50. The firm had revenue of $2.03 billion for the quarter, compared to analysts’ expectations of $1.85 billion. American Financial Group had a net margin of 11.51% and a return on equity of 20.35%. The business’s revenue was up 5.5% on a year-over-year basis. During the same period in the prior year, the firm earned $2.14 EPS. On average, sell-side analysts predict that American Financial Group, Inc. will post 11.87 earnings per share for the current year.

American Financial Group Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Wednesday, July 15th were given a dividend of $0.88 per share. The ex-dividend date was Wednesday, July 15th. This represents a $3.52 annualized dividend and a yield of 2.4%. American Financial Group’s dividend payout ratio (DPR) is presently 30.77%.

Analysts Set New Price Targets A number of research analysts have recently commented on the stock. Wall Street Zen raised shares of American Financial Group from a “hold” rating to a “buy” rating in a research report on Saturday, August 15th. Wells Fargo & Company raised their target price on shares of American Financial Group from $158.00 to $173.00 and gave the company an “overweight” rating in a research note on Thursday, July 9th. Weiss Ratings upgraded American Financial Group from a “buy (b-)” rating to a “buy (b)” rating in a report on Tuesday, August 11th. Piper Sandler boosted their price target on American Financial Group from $140.00 to $156.00 and gave the stock a “neutral” rating in a research report on Monday, August 10th. Finally, Keefe, Bruyette & Woods upped their price objective on American Financial Group from $148.00 to $153.00 and gave the company a “market perform” rating in a research note on Tuesday, August 11th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $156.00.

Read Our Latest Research Report on AFG

American Financial Group Company Profile (Free Report)

American Financial Group, Inc (NYSE: AFG) is a diversified holding company primarily engaged in property and casualty insurance and reinsurance. Through its flagship subsidiary, Great American Insurance Company, the firm underwrites a broad range of specialty insurance products for commercial and industrial clients, including inland marine, excess and surplus lines, executive liability, and environmental liability coverage. In addition, American Financial Group offers supplemental accident and health insurance and assumes reinsurance risks from other insurers, helping to diversify its underwriting portfolio.

The company traces its roots to 1946, when it was founded by Carl Lindner, Sr.

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American Financial Group, Inc. (NYSE: AFG) announced that its Board of Directors approved an increase in the Company’s regular annual dividend to $3.88 from $3.52 per share of common stock. The increased dividend, when declared, will be paid on a quarterly basis of $0.97 per share of common stock beginning in October 2026. The new dividend rate is a 10.2% increase over the declared rate. This is the Company’s twenty-first consecutive year of dividend increases. The ten-year compound annual growth rate in AFG’s regular annual dividends paid is 12.1%.

S. Craig Lindner and Carl H. Lindner III, AFG’s Co-Chief Executive Officers, issued this statement: “Returning excess capital to shareholders in the form of dividends is an important and effective component of AFG’s capital management strategy. This increase in AFG’s annual dividend reflects our confidence in the Company’s financial condition, liquidity, and prospects for long-term growth.”

About American Financial Group, Inc.

American Financial Group is an insurance holding company, based in Cincinnati, Ohio. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.

Forward Looking Statements

This press release, and any related oral statements, contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this press release not dealing with historical results are forward-looking and are based on estimates, assumptions, and projections. Examples of such forward-looking statements include statements relating to: the Company's expectations concerning market and other conditions and their effect on future premiums, revenues, earnings, investment activities and the amount and timing of share repurchases or special dividends; recoverability of asset values; expected losses and the adequacy of reserves for asbestos, environmental pollution and mass tort claims; rate changes; and improved loss experience.

Actual results and/or financial condition could differ materially from those contained in or implied by such forward-looking statements for a variety of reasons including, but not limited to: the risks and uncertainties AFG describes in the “Risk Factors” section of its most recent Annual Report on Form 10-K, as updated by its other reports filed with the Securities and Exchange Commission; whether or not the sale of Charleston Harbor Resort & Marina closes and AFG’s net gain as a result of the sale; changes in financial, political and economic conditions, including changes in interest and inflation rates and impacts from tariffs or other trade actions, currency fluctuations and extended economic recessions or expansions in the U.S. and/or abroad; performance of securities markets; new legislation or declines in credit quality or credit ratings that could have a material impact on the valuation of securities in AFG’s investment portfolio; the availability of capital; changes in insurance law or regulation, including changes in statutory accounting rules, including modifications to capital requirements; changes in the legal environment affecting AFG or its customers; tax law and accounting changes; levels of natural catastrophes and severe weather, terrorist activities (including any nuclear, biological, chemical or radiological events), incidents of war or losses resulting from pandemics, civil unrest and other major losses; disruption caused by cyber-attacks or other technology breaches or failures by AFG or its business partners and service providers, which could negatively impact AFG’s business or reputation and/or expose AFG to litigation; development of insurance loss reserves and establishment of other reserves, particularly with respect to amounts associated with asbestos and environmental claims; availability of reinsurance and ability of reinsurers to pay their obligations; competitive pressures; the ability to obtain adequate rates and policy terms; changes in AFG’s credit ratings or the financial strength ratings assigned by major ratings agencies to AFG’s operating subsidiaries; and the impact of the conditions in the international financial markets and the global economy relating to AFG’s international operations.

The forward-looking statements herein are made only as of the date of this press release. The Company assumes no obligation to publicly update any forward-looking statements.

Websites:
www.AFGinc.com
www.GreatAmericanInsuranceGroup.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20260820986795/en/

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CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) today reported 2026 second quarter net earnings of $248 million ($2.99 per share) compared to $174 million ($2.07 per share) for the 2025 second quarter. Net earnings included after-tax non-core gains of $14 million ($0.17 per share). By comparison, net earnings for the 2025 second quarter included after-tax non-core losses of $5 million ($0.07 per share loss). Annualized return on equity was 20.3% and 15.0% for the second quarters of 2026 and 2025, respectively, and is calculated excluding accumulated other comprehensive income (AOCI). Other details may be found in the table on the following page.

Core net operating earnings were $234 million ($2.82 per share) for the 2026 second quarter, compared to $179 million ($2.14 per share) in the 2025 second quarter. The year-over-year increase reflects higher underwriting profit and higher returns in AFG’s alternative investment portfolio. Additional details for the 2026 and 2025 second quarters may be found in the table below. Core net operating earnings for the second quarters of 2026 and 2025 generated annualized returns on equity of 19.2% and 15.5%, respectively, which is calculated excluding AOCI.

Three months ended June 30,

Components of Pretax Core Operating Earnings

2026

2025

2026

2025

2026

2025

In millions, except per share amounts

Before Impact of

Alternative

Core Net Operating

Alternative Investments

Investments

Earnings, as reported

P&C Pretax Core Operating Earnings

$

300

$

265

$

50

$

8

$

350

$

273

Other expenses

(26

)

(27

)

—

—

(26

)

(27

)

Holding company interest expense

(24

)

(19

)

—

—

(24

)

(19

)

Pretax Core Operating Earnings

250

219

50

8

300

227

Related provision for income taxes

56

46

10

2

66

48

Core Net Operating Earnings

$

194

$

173

$

40

$

6

$

234

$

179

Core Operating Earnings Per Share

$

2.34

$

2.07

$

0.48

$

0.07

$

2.82

$

2.14

Weighted Avg Diluted Shares Outstanding

83.0

83.5

83.0

83.5

83.0

83.5

AFG’s book value per share was $58.14 at June 30, 2026. AFG repurchased $26 million of its Common Stock (average price of $129.85 per share) and paid cash dividends of $0.88 per share during the second quarter. For the three and six months ended June 30, 2026, AFG’s growth in book value per share plus dividends was 4.8% and 6.3%, respectively.

Book value per share excluding AOCI was $59.85 at June 30, 2026. For the three and six months ended June 30, 2026, AFG’s growth in book value per share excluding AOCI plus dividends was 5.0% and 8.1%, respectively.

AFG’s net earnings, determined in accordance with U.S. generally accepted accounting principles (GAAP), include certain items that may not be indicative of its ongoing core operations. The table below identifies such items and reconciles net earnings to core net operating earnings, a non-GAAP financial measure. AFG believes that its core net operating earnings provides management, financial analysts, ratings agencies, and investors with an understanding of the results from the ongoing operations of the Company by excluding the impact of net realized gains and losses and other items that are not necessarily indicative of operating trends. AFG’s management uses core net operating earnings to evaluate financial performance against historical results because it believes this provides a more comparable measure of its continuing business. Core net operating earnings is also used by AFG’s management as a basis for strategic planning and forecasting.

In millions, except per share amounts

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Components of net earnings:

Core operating earnings before income taxes

$

300

$

227

$

557

$

421

Pretax non-core items:

Realized gains (losses)

16

2

(2

)

5

Earnings before income taxes

316

229

555

426

Provision for income taxes:

Core operating earnings

66

48

117

90

Non-core items

2

7

(1

)

8

Total provision for income taxes

68

55

116

98

Net earnings

$

248

$

174

$

439

$

328

Net earnings:

Core net operating earnings(a)

$

234

$

179

$

440

$

331

Non-core items:

Realized gains (losses)

14

2

(1

)

4

Other

—

(7

)

—

(7

)

Net earnings

$

248

$

174

$

439

$

328

Components of earnings per share:

Core net operating earnings(a)

$

2.82

$

2.14

$

5.29

$

3.96

Non-core items:

Realized gains (losses)

0.17

0.02

(0.01

)

0.05

Other

—

(0.09

)

—

(0.09

)

Diluted net earnings per share

$

2.99

$

2.07

$

5.28

$

3.92

Carl H. Lindner III and S. Craig Lindner, AFG’s Co-Chief Executive Officers, issued this statement: “AFG’s strong underwriting margins, healthy premium growth and higher P&C net investment income set a new second quarter record for pretax P&C operating income. This level of performance contributed to an annualized core operating return on equity of 19%. These results, coupled with effective capital management and our entrepreneurial, opportunistic culture and disciplined operating philosophy enable us to continue to create value for our shareholders.

Messrs. Lindner continued: “AFG continued to have significant excess capital at June 30, 2026. Returning capital to shareholders in the form of regular and special cash dividends and through opportunistic share repurchases is an important and effective component of our capital management strategy. In addition, our capital will be deployed into AFG’s core businesses as we identify the potential for healthy, profitable organic growth, and opportunities to expand our specialty niche businesses through acquisitions and start-ups that meet our target return thresholds.”

Specialty Property and Casualty Insurance Operations

The Specialty P&C insurance operations generated a 91.5% combined ratio in the second quarter of 2026, an improvement of 1.6 points from the 93.1% reported in the second quarter of 2025. Second quarter 2026 results include 1.8 points related to catastrophe losses, compared to 2.3 points in the 2025 second quarter. Second quarter 2026 results benefited from 3.4 points of favorable prior year reserve development, compared to 0.7 points in the second quarter of 2025.

Underwriting profit was $144 million for the 2026 second quarter compared to $114 million for the 2025 second quarter. Higher year-over-year underwriting profit in our Property and Transportation Group was the driver of this increase.

Second quarter 2026 gross and net written premiums were up 7% and 6%, respectively, when compared to the second quarter of 2025. This quarterly increase highlights the benefit of diversification across our 36 businesses, particularly as some markets in the P&C industry have softened. We achieved year-over-year premium growth in each of our Specialty P&C Groups overall as a result of new business opportunities, a favorable renewal rate environment, and increased exposures – while maintaining discipline and focusing on underwriting profitability.

Average renewal pricing across our P&C Group, excluding workers’ compensation, was up 5% on average for the quarter, consistent with pricing increases achieved in the first quarter. Average renewal rates including workers’ compensation were up approximately 4% overall, about a point higher than the previous quarter. We believe we are achieving overall renewal rate increases that enable us to meet or exceed targeted returns.

The Property and Transportation Group reported an underwriting profit of $57 million in the second quarter of 2026, compared to $27 million in the second quarter of 2025, reflecting higher underwriting profit in our transportation and agricultural businesses. Catastrophe losses in this group were $12 million in both the second quarters of 2026 and 2025. Overall, the businesses in the Property and Transportation Group achieved a 90.3% calendar year combined ratio in the second quarter, an improvement of 4.9 points from the comparable period in 2025.

Second quarter 2026 gross and net written premiums in this group were 8% and 5% higher, respectively, than the comparable prior year. The increase is primarily attributable to growth in crop insurance products with higher premium cessions, along with new business opportunities, higher exposures, and a favorable rate environment in several of our transportation businesses. Overall renewal rates in this group increased approximately 8% in the second quarter of 2026, two points higher than the pricing achieved in this group for the first quarter of 2026.

The Specialty Casualty Group reported underwriting profit of $45 million in the second quarter of 2026, compared to $49 million in the second quarter of 2025. Higher profitability in our general liability businesses focused on energy, construction and environmental risks, along with our excess and surplus and targeted markets businesses, was more than offset by lower profitability in our workers compensation and executive and professional liability businesses. Underwriting profitability in our workers’ compensation and professional liability businesses continues to be very strong. The businesses in the Specialty Casualty Group achieved a solid 94.5% calendar year combined ratio in the second quarter of 2026, 0.6 points higher than the 93.9% reported in the comparable period in 2025.

Second quarter 2026 gross and net written premiums in this group increased 5% and 6%, respectively, when compared to the same prior year period. New business opportunities, increased exposures and higher rates drove the year-over-year increase in many of our Specialty Casualty businesses. Excluding workers’ compensation, renewal pricing for this group was up approximately 4% in the second quarter. Pricing in this group, including workers’ compensation, was up about 2%.

The Specialty Financial Group reported an underwriting profit of $42 million in the second quarter of 2026, compared to $38 million in the second quarter of 2025, due primarily to higher underwriting profitability in our financial institutions, fidelity / crime, and surety businesses. Catastrophe losses for this group were $10 million in the second quarter of 2026 compared to $19 million in the prior year quarter. This group continued to achieve excellent underwriting margins and reported a combined ratio of 85.6% for the second quarter of 2026, 0.5 points better than the 86.1% reported in the comparable period in 2025.

Second quarter 2026 gross and net written premiums were both up 10% in this group when compared to the prior year period, primarily due to growth in our financial institutions business. Renewal pricing in this group decreased less than 1% in the second quarter, reflecting the strong margins earned on these businesses overall.

Carl Lindner III stated, “I am very pleased with the 44% increase in underwriting profit in the first six months of the year, and happy to see our teams executing on opportunities to grow while achieving renewal rate increases that are helping us meet targeted returns. These results position us well as we enter the second half of the year.”

Further details about AFG’s Specialty P&C operations may be found in the accompanying schedules and in our Quarterly Investor Supplement, which is posted on our website.

Investments

Net Investment Income – Net investment income in our property and casualty insurance operations for the three months ended June 30, 2026 established a new second quarter record, increasing 23% year-over-year. The year-over-year increase was primarily attributable to higher yields on our portfolio of alternative investments. Property and casualty net investment income excluding the impact of alternative investments was flat when compared to the 2025 second quarter.

The annualized return on alternative investments was approximately 7.1% for the 2026 second quarter compared to 1.2% for the prior year quarter. Earnings from alternative investments may vary from quarter to quarter based on the reported results of the underlying investments and generally are reported on a quarter lag. The average annual return on alternative investments over the five calendar years ended December 31, 2025, was approximately 11%. Longer term, we continue to remain optimistic regarding the prospects of attractive returns from our alternative investment portfolio, with an expectation of annual returns averaging 10% or better.

In April 2026, AFG reached definitive agreements to sell the Charleston Harbor Resort & Marina. Subject to receipt of necessary third-party approvals and satisfaction of customary closing conditions, the transaction is expected to close in the third quarter of 2026. AFG currently expects to recognize a pretax core operating gain of approximately $125 million on the sale. This transaction was not contemplated in AFG’s original business plan assumptions.

Non-Core Net Realized Gains (Losses) – AFG recorded second quarter 2026 net realized gains of $14 million ($0.17 per share) after tax, which included $10 million ($0.12 per share) in after-tax net gains to adjust equity securities that the Company continued to own at June 30, 2026, to fair value. By comparison, AFG recorded second quarter 2025 net realized gains of $2 million ($0.02 per share) after tax.

After-tax unrealized losses related to fixed maturities were $116 million at June 30, 2026. Our portfolio continues to be high quality, with 97% of our fixed maturity portfolio rated investment grade and 98% of our P&C fixed maturity portfolio with a National Association of Insurance Commissioners’ designation of NAIC 1 or 2, its highest two categories.

More information about the components of our investment portfolio may be found in our Quarterly Investor Supplement, which is posted on our website.

About American Financial Group, Inc.

American Financial Group is an insurance holding company, based in Cincinnati, Ohio. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.

Forward Looking Statements

This press release, and any related oral statements, contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this press release not dealing with historical results are forward-looking and are based on estimates, assumptions, and projections. Examples of such forward-looking statements include statements relating to: the Company's expectations concerning market and other conditions and their effect on future premiums, revenues, earnings, investment activities and the amount and timing of share repurchases or special dividends; recoverability of asset values; expected losses and the adequacy of reserves for asbestos, environmental pollution and mass tort claims; rate changes; and improved loss experience.

Actual results and/or financial condition could differ materially from those contained in or implied by such forward-looking statements for a variety of reasons including, but not limited to: the risks and uncertainties AFG describes in the “Risk Factors” section of its most recent Annual Report on Form 10-K, as updated by its other reports filed with the Securities and Exchange Commission; whether or not the sale of Charleston Harbor Resort & Marina closes and AFG’s net gain as a result of the sale; changes in financial, political and economic conditions, including changes in interest and inflation rates and impacts from tariffs or other trade actions, currency fluctuations and extended economic recessions or expansions in the U.S. and/or abroad; performance of securities markets; new legislation or declines in credit quality or credit ratings that could have a material impact on the valuation of securities in AFG’s investment portfolio; the availability of capital; changes in insurance law or regulation, including changes in statutory accounting rules, including modifications to capital requirements; changes in the legal environment affecting AFG or its customers; tax law and accounting changes; levels of natural catastrophes and severe weather, terrorist activities (including any nuclear, biological, chemical or radiological events), incidents of war or losses resulting from pandemics, civil unrest and other major losses; disruption caused by cyber-attacks or other technology breaches or failures by AFG or its business partners and service providers, which could negatively impact AFG’s business or reputation and/or expose AFG to litigation; development of insurance loss reserves and establishment of other reserves, particularly with respect to amounts associated with asbestos and environmental claims; availability of reinsurance and ability of reinsurers to pay their obligations; competitive pressures; the ability to obtain adequate rates and policy terms; changes in AFG’s credit ratings or the financial strength ratings assigned by major ratings agencies to AFG’s operating subsidiaries; and the impact of the conditions in the international financial markets and the global economy relating to AFG’s international operations.

The forward-looking statements herein are made only as of the date of this press release. The Company assumes no obligation to publicly update any forward-looking statements.

Conference Call

The Company will hold a conference call to discuss 2026 second quarter results at 11:30 a.m. (ET) tomorrow, Wednesday, August 5, 2026. Event registration and access provides two ways to access the call.

Participants should register for the call here now or any time up to and during the time of the call and will immediately receive the dial-in number and a unique PIN to access the call. While you may register at any time up to and during the time of the call, you are encouraged to join the call 10 minutes prior to the start of the event.

The conference call and accompanying webcast slides will also be broadcast live over the internet. To access the event, click the following link: https://www.afginc.com/news-and-events/event-calendar. Alternatively, you can choose Events from the Investor Relations page at www.AFGinc.com.

A replay of the webcast will be available via the same link on our website approximately two hours after the completion of the call.

(Financial summaries follow)

This earnings release and AFG’s Quarterly Investor Supplement are available in the Investor Relations section of AFG’s website: www.AFGinc.com.

AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES

SUMMARY OF EARNINGS AND SELECTED BALANCE SHEET DATA

(In Millions, Except Per Share Data)

  Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Revenues

Net earned premiums

$

1,694

$

1,647

$

3,303

$

3,227

Net investment income

221

184

408

357

Realized gains (losses) on securities

16

2

(2

)

5

Income of managed investment entities:

Investment income

69

68

136

144

Gain (loss) on change in fair value of

assets/liabilities

1

(4

)

(19

)

(7

)

Other income

29

27

58

54

Total revenues

2,030

1,924

3,884

3,780

Costs and expenses

Losses & loss adjustment expenses

1,000

1,007

1,906

1,972

Commissions and other underwriting expenses

560

534

1,116

1,064

Interest charges on borrowed money

24

19

47

38

Expenses of managed investment entities

58

60

116

128

Other expenses

72

75

144

152

Total costs and expenses

1,714

1,695

3,329

3,354

Earnings before income taxes

316

229

555

426

Provision for income taxes

68

55

116

98

Net earnings

$

248

$

174

$

439

$

328

Diluted earnings per common share

$

2.99

$

2.07

$

5.28

$

3.92

Average number of diluted shares

83.0

83.5

83.1

83.7

Selected Balance Sheet Data:

June 30, 2026

December 31, 2025

Total Cash and investments

$17,069

$17,182

Long-term debt

$1,821

$1,820

Shareholders' equity(b)

$4,821

$4,820

Shareholders' equity (excluding AOCI)

$4,963

$4,870

Book value per share(b)

$58.14

$57.78

Book value per share (excluding AOCI)

$59.85

$58.38

Common Shares Outstanding

82.9

83.4

AMERICAN FINANCIAL GROUP, INC.

SPECIALTY P&C OPERATIONS

(Dollars in Millions)

  Three months ended June 30,

Pct. Change

Six months ended June 30,

Pct. Change

2026

2025

2026

2025

Gross written premiums

$

2,850

$

2,653

7

%

$

5,285

$

4,944

7

%

Net written premiums

$

1,915

$

1,803

6

%

$

3,579

$

3,414

5

%

Ratios (GAAP):

Loss & LAE ratio

58.9

%

61.1

%

57.6

%

61.1

%

Underwriting expense ratio

32.6

%

32.0

%

33.3

%

32.5

%

Specialty Combined Ratio

91.5

%

93.1

%

90.9

%

93.6

%

Combined Ratio – P&C Segment

91.6

%

93.1

%

91.0

%

93.6

%

Supplemental Information (c):

Gross Written Premiums:

Property & Transportation

$

1,351

$

1,247

8

%

$

2,350

$

2,144

10

%

Specialty Casualty

1,119

1,062

5

%

2,208

2,130

4

%

Specialty Financial

380

344

10

%

727

670

9

%

$

2,850

$

2,653

7

%

$

5,285

$

4,944

7

%

Net Written Premiums:

Property & Transportation

$

797

$

759

5

%

$

1,393

$

1,322

5

%

Specialty Casualty

812

765

6

%

1,601

1,537

4

%

Specialty Financial

306

279

10

%

585

555

5

%

$

1,915

$

1,803

6

%

$

3,579

$

3,414

5

%

Combined Ratio (GAAP):

Property & Transportation

90.3

%

95.2

%

89.1

%

94.0

%

Specialty Casualty

94.5

%

93.9

%

95.1

%

95.8

%

Specialty Financial

85.6

%

86.1

%

82.8

%

86.5

%

Aggregate Specialty Group

91.5

%

93.1

%

90.9

%

93.6

%

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Reserve Development (Favorable)/Adverse:

Property & Transportation

$

(42

)

$

(13

)

$

(89

)

$

(32

)

Specialty Casualty

(1

)

10

(1

)

22

Specialty Financial

(14

)

(9

)

(37

)

(22

)

Specialty Group

(57

)

(12

)

(127

)

(32

)

Other

2

1

2

1

Total Reserve Development

$

(55

)

$

(11

)

$

(125

)

$

(31

)

Points on Combined Ratio:

Property & Transportation

(7.0

)

(2.2

)

(8.0

)

(3.0

)

Specialty Casualty

(0.1

)

1.2

(0.1

)

1.4

Specialty Financial

(5.1

)

(3.2

)

(6.5

)

(3.9

)

Aggregate Specialty Group

(3.4

)

(0.7

)

(3.9

)

(1.0

)

Total P&C Segment

(3.3

)

(0.7

)

(3.8

)

(1.0

)

AMERICAN FINANCIAL GROUP, INC.

Notes to Financial Schedules

a) Components of core net operating earnings (in millions):

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Core Operating Earnings before Income Taxes:

P&C Insurance Segment

$

350

$

273

$

659

$

519

Interest and other corporate expenses

(50

)

(46

)

(102

)

(98

)

Core operating earnings before income taxes

300

227

557

421

Related income taxes

66

48

117

90

Core net operating earnings

$

234

$

179

$

440

$

331

More News From American Financial Group, Inc.

Key Takeaways AFG expects growth from new business, increased exposure and crop premiums. The insurer has achieved renewal rate increases for 35 consecutive quarters. AFG has raised dividends for 20 straight years, backed by strong underwriting results and capital management. American Financial Group, Inc. (AFG - Free Report) shares have gained 5.5% in the past year against the industry's decline of 1%.

AFG has outperformed its peers, Arch Capital Group Ltd. (ACGL - Free Report) , W.R. Berkley Corporation. (WRB - Free Report) and Kinsale Capital Group, Inc. (KNSL - Free Report) . While ACGL has gained 0.1%, WRB and KNSL have lost 9.1% and 35.4%, respectively, in the same time frame.

Image Source: Zacks Investment Research

American Financial has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of June 18, 2026, was $132.90, down 12.9% from its 52-week high of $150.02. The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.

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With a market capitalization of $11.04 billion, the average volume of shares traded in the last three months was 0.5 million. AFG has a solid earnings surprise history. It beat estimates in three of the last four quarters and missed in one, the average being 7.25%.

AFG’s Growth Projection EncouragesThe Zacks Consensus Estimate for American Financial’s 2026 earnings per share indicates a year-over-year increase of 10.5%. The consensus estimate for revenues is pegged at $8.02 billion, implying a year-over-year improvement of 0.4%.

The consensus estimate for 2027 earnings per share and revenues indicates an increase of 5.2% and 7.9%, respectively, from the corresponding 2026 estimates.

Average Target Price for AFG Suggests UpsideBased on short-term price targets offered by six analysts, the Zacks average price target is $142.83 per share. The average suggests a potential 7.47% upside from the last closing price.

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AFG’s Favorable Return on CapitalAmerican Financial’s return on equity has also been improving over the last few quarters, reflecting its efficiency in utilizing shareholders’ funds. The trailing 12 months ROE was 19.5%, which compared favorably with the industry average of 7.4%.

Factors Favoring AFGNew business opportunities, increased exposure and a good renewal rate environment, coupled with additional crop premiums from the Crop Risk Services acquisition, position AFG well for growth.

American Financial, a niche player in the P&C market, is likely to benefit from strategic acquisitions and improved pricing. Improved industry fundamentals drive overall growth.

American Financial witnessed average renewal pricing across the entire P&C Group. It intends to maintain satisfactory rates in P&C renewal pricing going forward. AFG has reported overall renewal rate increases for 35 consecutive quarters, and it is expected to achieve overall renewal rate increases in excess of prospective loss ratio trends to meet or exceed targeted returns. The property and casualty insurer expects to achieve overall renewal rate increases in excess of prospective loss ratio trends to meet or exceed targeted returns.

Its combined ratio has been better than the industry average for more than two decades. Specialty niche focus, product line diversification and underwriting discipline should help AFG outperform the industry’s underwriting results.

Wealth DistributionAmerican Financial has increased its dividend for 20 straight years, apart from paying special dividends occasionally. This reflects its financial stability, which stems from robust operating profitability in the P&C segment, stellar investment performance and effective capital management.

Notably, the 10-year compound annual growth rate for the company's regular annual dividends is pinned at an impressive 12.4%. This track record underscores its prudent financial management and stability. The dividend yield is 2.6%, better than the industry average of 0.2%.

End NotesAmerican Financial’s prudent capital deployment, increased exposures, good renewal rate environment, and improved combined ratio make it an attractive stock. It intends to maintain satisfactory rates in P&C renewal pricing in the future.

American Financial also has a VGM Score of A. Stocks with a favorable VGM Score are those with the most attractive value, best growth, and most promising momentum compared with peers.

American Financial should benefit from strategic acquisitions, new business opportunities, and stronger underwriting profit. Coupled with the impressive dividend history, solid growth projections, and higher return on capital, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.