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Bank of New York Mellon Corp lessened its position in American Financial Group, Inc. (NYSE:AFG – Free Report) by 5.0% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 778,073 shares of the insurance provider’s stock after selling 40,961 shares during the quarter. Bank of New York Mellon Corp owned 0.94% of American Financial Group worth $99,368,000 at the end of the most recent reporting period.

Several other hedge funds also recently added to or reduced their stakes in the company. Charles Schwab Investment Management Inc. increased its holdings in American Financial Group by 2.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,567,721 shares of the insurance provider’s stock worth $350,956,000 after purchasing an additional 57,246 shares during the period. Geode Capital Management LLC increased its stake in shares of American Financial Group by 1.7% during 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 during the period. Dimensional Fund Advisors LP raised its holdings in shares of American Financial Group by 12.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,266,001 shares of the insurance provider’s stock valued at $173,045,000 after acquiring an additional 138,483 shares in the last quarter. Northern Trust Corp lifted its stake in American Financial Group by 33.2% in the third quarter. Northern Trust Corp now owns 1,026,783 shares of the insurance provider’s stock worth $149,623,000 after acquiring an additional 255,693 shares during the period. Finally, Morgan Stanley grew its holdings in American Financial Group by 4.3% during the 4th quarter. Morgan Stanley now owns 894,998 shares of the insurance provider’s stock worth $122,329,000 after acquiring an additional 36,971 shares in the last quarter. 64.37% of the stock is currently owned by institutional investors.

Insider Transactions at American Financial Group In related news, SVP Michelle A. Gillis sold 2,247 shares of the firm’s stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $139.00, for a total transaction of $312,333.00. Following the completion of the transaction, the senior vice president directly owned 13,135 shares in the company, valued at $1,825,765. This trade represents a 14.61% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider David Lawrence Thompson, Jr. sold 11,370 shares of the business’s stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $135.05, for a total transaction of $1,535,518.50. Following the sale, the insider owned 584,098 shares in the company, valued at $78,882,434.90. This trade represents a 1.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 16.90% of the company’s stock.

Analysts Set New Price Targets A number of equities research analysts recently commented on AFG shares. Weiss Ratings reissued a “buy (b-)” rating on shares of American Financial Group in a research report on Thursday, June 11th. Keefe, Bruyette & Woods upped their price target on American Financial Group from $140.00 to $148.00 and gave the stock a “market perform” rating in a research report on Wednesday, July 8th. Piper Sandler raised their price objective on American Financial Group from $135.00 to $140.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 26th. Finally, Wells Fargo & Company upped their target price on American Financial Group from $158.00 to $173.00 and gave the company an “overweight” rating in a research report on Thursday, July 9th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $150.75.

Get Our Latest Analysis on AFG

American Financial Group Trading Up 0.3% Shares of AFG stock opened at $142.25 on Tuesday. American Financial Group, Inc. has a 1-year low of $122.11 and a 1-year high of $150.02. The company has a market cap of $11.82 billion, a price-to-earnings ratio of 13.52 and a beta of 0.62. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.48 and a quick ratio of 0.48. The stock has a 50 day simple moving average of $136.15 and a 200-day simple moving average of $132.36.

American Financial Group (NYSE:AFG – Get Free Report) last released its earnings results on Thursday, April 30th. The insurance provider reported $2.47 EPS for the quarter, missing analysts’ consensus estimates of $2.54 by ($0.07). American Financial Group had a return on equity of 19.50% and a net margin of 10.76%.The company had revenue of $1.85 billion for the quarter, compared to analysts’ expectations of $1.70 billion. During the same period in the prior year, the firm earned $1.81 EPS. The firm’s revenue for the quarter was down .1% on a year-over-year basis. On average, equities research analysts expect that American Financial Group, Inc. will post 11.37 EPS for the current fiscal year.

American Financial Group Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Wednesday, July 15th will be given a dividend of $0.88 per share. The ex-dividend date of this dividend is Wednesday, July 15th. This represents a $3.52 annualized dividend and a dividend yield of 2.5%. American Financial Group’s payout ratio is presently 33.46%.

American Financial Group 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 (AFG) reported Q1 2026 total assets of $32.35 billion and total debt of $2.03 billion. AFG's total equity stands at approximately $4.68 billion, with EBITDA near $1.32 billion for the quarter. The company's current market capitalization is about $11.86 billion.

CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) announced that it has declared a regular dividend of $0.88 per share of American Financial Group Common Stock. The dividend is payable on July 24, 2026, to holders of record on July 15, 2026.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 insuranc.

Key Takeaways American Financial raised its dividend 10% in 2025, marking 20 consecutive years of increases. AFG declared a $1.50 per share special dividend in February 2026, totaling about $125 million. AFG returned nearly $260 million via dividends and buybacks in first-quarter 2026. American Financial Group, Inc. (AFG - Free Report) has one of the most shareholder-friendly capital allocation policies in the U.S. insurance sector. AFG regularly generates capital that is needed to support underwriting operations. Returning excess capital to shareholders in the form of regular and special cash dividends and through opportunistic share repurchases is an important and effective component of American Financial’s capital management strategy.

AFG's shareholder return profile is a major investment attraction. The combination of growing regular dividends, frequent special dividends, opportunistic buybacks and strong underwriting profitability has enabled the company to deliver substantial cash returns to investors over time.

In August 2025, AFG increased its annual dividend by 10% to $3.52 per share, marking its 20th consecutive year of dividend increases. The company's 10-year dividend CAGR is approximately 12.3%. This increase in AFG’s annual dividend reflects its confidence in the company’s financial condition, liquidity and prospects for long-term growth.

AFG, the specialty property & casualty insurer, supplements its regular dividend with large special dividends when excess capital accumulates. In February 2026, the board declared a special cash dividend of $1.50 per share. The aggregate amount of this special dividend will be approximately $125 million. This special-dividend policy has become a major component of the company's total shareholder return strategy and distinguishes it from many peers that rely primarily on regular dividends and buybacks.

Management opportunistically buys back stock when valuations are attractive. During the first quarter of 2026, AFG repurchased approximately $60 million of shares, reducing share count and enhancing per-share earnings growth. AFG returned nearly $260 million to the shareholders through a combination of regular dividends, special dividends and share repurchases in the first quarter of 2026. AFG’s entrepreneurial, opportunistic culture and disciplined operating philosophy continue to position it well for long-term success.

What About Its Peers?RLI Corp. (RLI - Free Report) has one of the most shareholder-friendly capital return programs in the property & casualty insurance industry. The company combines a steadily growing regular dividend, frequent special dividends and opportunistic share repurchases to return excess capital to shareholders while maintaining underwriting discipline. The company has increased its regular dividend for 51 consecutive years, placing it among the longest dividend-growth records in the insurance sector.

First American Financial Corporation (FAF - Free Report) follows a balanced capital-return strategy that combines a steadily growing dividend with opportunistic share repurchases. FAF generally uses a combination of regular dividend increases and selective share repurchases to distribute excess capital. FAF has increased its dividend for more than 15 consecutive years, reflecting management's commitment to returning capital through various housing market environments.

AFG’s Price PerformanceShares of AFG have gained 11.1% in the past year, outperforming the industry.

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AFG’s Expensive ValuationThe stock is overvalued compared with its industry. It is currently trading at a price-to-book ratio of 2.46, above the industry average of 1.41.

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Estimate Movement for AFGThe Zacks Consensus Estimate for AFG’s second-quarter 2026 has moved down 1.6%, and the third-quarter 2026 EPS has moved up 13.5% in the past 60 days. The same for full-year 2026 and 2027 EPS has moved up 3.5% and 2%, respectively, in the past 60 days.

The consensus estimate for AFG’s 2026 and 2027 EPS and revenues indicates a year-over-year increase.

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AFG stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stewart Information Services (NYSE: STC - Get Free Report) and American Financial Group (NYSE: AFG - Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability. Dividends Stewart Information Services pays an

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CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) announced that it has declared a regular dividend of $0.88 per share of American Financial Group Common Stock. The dividend is payable on April 24, 2026, to holders of record on April 15, 2026.

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.

More News From American Financial Group, Inc.

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Posted by Defense World Staff on Apr 4th, 2026

SG Americas Securities LLC grew its position in American Financial Group, Inc. (NYSE:AFG – Free Report) by 59.8% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 18,806 shares of the insurance provider’s stock after purchasing an additional 7,040 shares during the period. SG Americas Securities LLC’s holdings in American Financial Group were worth $2,570,000 at the end of the most recent quarter.

Several other institutional investors have also recently modified their holdings of AFG. Royal Bank of Canada boosted its position in American Financial Group by 11.1% in the first quarter. Royal Bank of Canada now owns 75,421 shares of the insurance provider’s stock valued at $9,905,000 after buying an additional 7,554 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in American Financial Group during the 1st quarter worth approximately $2,330,000. Jones Financial Companies Lllp raised its position in American Financial Group by 145.8% during the 1st quarter. Jones Financial Companies Lllp now owns 1,278 shares of the insurance provider’s stock worth $168,000 after buying an additional 758 shares during the last quarter. Prudential Financial Inc. lifted its stake in American Financial Group by 16.5% during the 2nd quarter. Prudential Financial Inc. now owns 7,690 shares of the insurance provider’s stock valued at $971,000 after acquiring an additional 1,087 shares during the period. Finally, Northwestern Mutual Wealth Management Co. boosted its holdings in shares of American Financial Group by 452.4% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 19,871 shares of the insurance provider’s stock valued at $2,508,000 after acquiring an additional 16,274 shares during the last quarter. 64.37% of the stock is currently owned by hedge funds and other institutional investors.

American Financial Group Trading Down 0.0% Shares of American Financial Group stock opened at $129.70 on Friday. The firm has a 50-day simple moving average of $129.18 and a two-hundred day simple moving average of $134.23. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.23 and a current ratio of 0.23. American Financial Group, Inc. has a fifty-two week low of $114.73 and a fifty-two week high of $150.02. The company has a market cap of $10.80 billion, a P/E ratio of 12.88 and a beta of 0.69.

American Financial Group (NYSE:AFG – Get Free Report) last posted its earnings results on Wednesday, February 4th. The insurance provider reported $3.65 EPS for the quarter, beating analysts’ consensus estimates of $3.18 by $0.47. American Financial Group had a return on equity of 18.64% and a net margin of 10.30%.The firm had revenue of $2.06 billion for the quarter, compared to analysts’ expectations of $1.79 billion. During the same period last year, the firm earned $3.12 EPS. The company’s quarterly revenue was down 4.0% on a year-over-year basis. As a group, equities analysts predict that American Financial Group, Inc. will post 10.5 earnings per share for the current fiscal year.

American Financial Group Dividend Announcement The firm also recently disclosed a special dividend, which was paid on Wednesday, February 25th. Stockholders of record on Monday, February 16th were given a $1.50 dividend. The ex-dividend date was Friday, February 13th. American Financial Group’s payout ratio is 34.96%.

Analyst Upgrades and Downgrades Several brokerages recently issued reports on AFG. Keefe, Bruyette & Woods raised their target price on shares of American Financial Group from $134.00 to $140.00 and gave the stock a “market perform” rating in a report on Wednesday, March 25th. Weiss Ratings raised American Financial Group from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, March 16th. Finally, Wells Fargo & Company reduced their price objective on American Financial Group from $165.00 to $160.00 and set an “overweight” rating for the company in a research note on Thursday, February 5th. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $145.25.

Get Our Latest Analysis on AFG

Insider Buying and Selling at American Financial Group In other news, CFO Brian S. Hertzman sold 1,663 shares of the stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $133.70, for a total transaction of $222,343.10. Following the transaction, the chief financial officer owned 12,073 shares in the company, valued at $1,614,160.10. This trade represents a 12.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 17.40% of the stock is currently owned by insiders.

About American Financial Group (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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Key Takeaways AFG benefits from new business, pricing strength and Crop Risk Services, boosting growth prospects. AFG posted 35 straight quarters of renewal rate increases, aiming to exceed loss ratio trends. AFG's 20-year dividend growth streak and 12.4% CAGR reflect strong profitability and capital management. American Financial Group, Inc. (AFG - Free Report) has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of April 15, 2026, was $130.59, down 13% 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 $10.87 billion, the average volume of shares traded in the last three months was 0.6 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 3.89%.

Price PerformanceShares of AFG have gained 2.5% year to date against the industry’s decline of 6.8%.

AFG has outperformed its peers, W.R. Berkley Corporation. (WRB - Free Report) , RLI Corp. (RLI - Free Report) and Kinsale Capital Group, Inc. (KNSL - Free Report) . WRB, RLI and KNSL have lost 3.4%, 24.6% and 26%, respectively, in the same time frame.

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AFG’s Growth Projection EncouragesThe Zacks Consensus Estimate for American Financial’s 2026 earnings per share indicates a year-over-year increase of 6.7%. The consensus estimate for revenues is pegged at $8.33 billion, implying a year-over-year improvement of 4.3%.

The consensus estimate for 2027 earnings per share and revenues indicates an increase of 6.8% and 5.4%, 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 $140.83 per share. The average suggests a potential 7.8% 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 18.6%, which compared favorably with the industry average of 7.3%.

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 2.7%, better than the industry average of 0.2%.

Wrapping Up: Keep on HoldingAmerican 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 going forward.

American Financial also has a VGM Score of B. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers. Its impressive dividend history as well as attractive valuations are other positives.

American Financial should benefit from strategic acquisitions, new business opportunities, stronger underwriting profit and favorable growth estimates. It is, therefore, wise to hold on to this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) today reported 2026 first quarter net earnings of $191 million ($2.29 per share) compared to $154 million ($1.84 per share) for the 2025 first quarter. Net earnings included after-tax non-core net realized losses on securities of $15 million ($0.18 per share loss). By comparison, net earnings for the 2025 first quarter included net after-tax gains of $2 million ($0.03 per share). Annualized return on equity was 15.8% and 13.3% for the first 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 $206 million ($2.47 per share) for the 2026 first quarter compared to $152 million ($1.81 per share) in the 2025 first quarter. The year-over-year increase reflects higher property and casualty (P&C) insurance underwriting profit, which was partially offset by lower returns in AFG’s alternative investment portfolio. Additional details for the 2026 and 2025 first quarters may be found in the table below. Core net operating earnings for the first quarters of 2026 and 2025 generated annualized returns on equity of 17.0% and 13.1%, respectively, which is calculated excluding AOCI.

Three months ended March 31,

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

$

312

$

234

$

(3

)

$

12

$

309

$

246

Other expenses

(29

)

(33

)

—

—

(29

)

(33

)

Holding company interest expense

(23

)

(19

)

—

—

(23

)

(19

)

Pretax Core Operating Earnings

260

182

(3

)

12

257

194

Related provision (credit) for income taxes

52

39

(1

)

3

51

42

Core Net Operating Earnings

$

208

$

143

$

(2

)

$

9

$

206

$

152

Core Operating Earnings Per Share

$

2.50

$

1.70

$

(0.03

)

$

0.11

$

2.47

$

1.81

Weighted Avg Diluted Shares Outstanding

83.3

83.8

83.3

83.8

83.3

83.8

AFG’s book value per share was $56.30 at March 31, 2026. AFG repurchased $60 million of its Common Stock (average price of $127.12 per share) and paid cash dividends of $2.38 per share during the first quarter, including a $1.50 per share special dividend paid in February. For the three months ended March 31, 2026, AFG’s growth in book value per share plus dividends was 1.6%.

Book value per share excluding AOCI was $57.83 per share at March 31, 2026, compared to $58.38 at the end of 2025. For the three months ended March 31, 2026, AFG’s growth in book value per share excluding AOCI plus dividends was 3.1%.

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 March 31,

2026

2025

Components of net earnings:

Core operating earnings before income taxes

$

257

$

194

Pretax non-core items:

Realized gains (losses)

(18

)

3

Earnings before income taxes

239

197

Provision for income taxes:

Core operating earnings

51

42

Non-core items

(3

)

1

Total provision for income taxes

48

43

Net earnings

$

191

$

154

Net earnings:

Core net operating earnings(a)

$

206

$

152

Non-core items:

Realized gains (losses)

(15

)

2

Net earnings

$

191

$

154

Components of earnings per share:

Core net operating earnings(a)

$

2.47

$

1.81

Non-core items:

Realized gains (losses)

(0.18

)

0.03

Diluted net earnings per share

$

2.29

$

1.84

Footnote (a) is contained in the accompanying Notes to Financial Schedules at the end of this release.

S. Craig Lindner and Carl H. Lindner III, AFG’s Co-Chief Executive Officers, issued this statement: “We are pleased to report a core net operating ROE of 17% in the first quarter. Our specialty P&C businesses produced strong underwriting profitability against a backdrop of lower returns in our alternative investments portfolio. We returned nearly $260 million to our shareholders through a combination of regular dividends, special dividends and share repurchases. Our entrepreneurial, opportunistic culture and disciplined operating philosophy continue to position us well for long-term success.”

Messrs. Lindner continued: “AFG continued to have significant excess capital at March 31, 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 strong 90.3% combined ratio in the first quarter of 2026, an improvement of 3.7 points from the 94.0% reported in the first quarter of 2025. First quarter 2026 results include 2.2 points related to catastrophe losses, compared to 4.5 points in the first quarter of 2025. First quarter 2026 results benefited from 4.4 points of favorable prior year reserve development, compared to 1.3 points in the first quarter of 2025. Underwriting profit was $156 million for the 2026 first quarter compared to $94 million in the comparable 2025 period, with each of our Specialty P&C groups reporting higher year-over-year underwriting profit.

First quarter 2026 gross and net written premiums were 6% and 3% higher, respectively, than the comparable period in 2025. We continued to benefit from the diversification across our 36 businesses and achieved premium growth in many of them as a result of a combination of new business opportunities, a good 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 approximately 5% for the quarter, in line with the previous quarter. Average renewal rates including workers’ compensation were up approximately 3% overall. 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 $65 million in the first quarter of 2026 compared to $37 million in the first quarter of 2025. Nearly all the businesses in this group reported higher year-over-year profitability, led by our agricultural and transportation businesses. Catastrophe losses in this group were $12 million in the first quarter of 2026, compared to $10 million in the first quarter of 2025. The businesses in the Property and Transportation Group achieved an excellent 87.6% calendar year combined ratio overall in the first quarter of 2026, an improvement of 4.9 points from the 92.5% reported in the comparable 2025 period.

First quarter 2026 gross and net written premiums in this group were 11% and 6% higher than the comparable prior year period. 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 6% on average in the first quarter of 2026, consistent with the prior two quarters.

The Specialty Casualty Group reported an underwriting profit of $34 million in the first quarter of 2026 compared to $20 million in the comparable 2025 period. Higher profitability in our targeted markets, workers compensation, and executive and professional liability businesses were the principal drivers of these improved results. Catastrophe losses for this group were $11 million in the first quarter of 2026 compared to $27 million in the prior year quarter. The businesses in the Specialty Casualty Group achieved a 95.8% calendar year combined ratio in the first quarter of 2026, an improvement of 1.8 points from the 97.6% reported in the comparable period in 2025.

First quarter 2026 gross and net written premiums both increased 2% when compared to the same prior year period. Growth from new business opportunities and higher renewals in our targeted markets and workers’ compensation businesses were partially offset by heightened competitive conditions in our excess and surplus lines business. Excluding workers’ compensation, renewal pricing for this group was up approximately 6% in the first quarter, consistent with the prior quarter. Pricing in this group, including workers’ compensation, was up about 3%.

The Specialty Financial Group reported an underwriting profit of $57 million in the first quarter of 2026, compared to $37 million in the comparable 2025 period. While nearly all businesses in this group reported higher year-over-year underwriting profits, the drivers of the higher profitability were our fidelity/crime and financial institutions businesses. Catastrophe losses for this group were $12 million in the first quarter of 2026 compared to $35 million in the first quarter of 2025. This group reported an exceptional 80.0% calendar year combined ratio for the first quarter of 2026, an improvement of 7.0 points from the comparable period in 2025.

Gross and net written premiums increased by 6% and 1%, respectively, in the 2026 first quarter when compared to the same 2025 period, primarily due to growth in our lender services businesses. Net written premiums were tempered by our decision to cede more of the coastal-exposed property business in our financial institutions business beginning in the second quarter of 2025. Renewal pricing in this group was up about 1% in the first quarter of 2026, consistent with the prior quarter and reflecting the strong margins overall earned on these businesses.

Carl Lindner III stated, “Our Specialty P&C businesses are off to a strong start in 2026, producing a 66% year-over-year increase in underwriting profit, with the vast majority reporting growth during the quarter. We are continuing to achieve strong pricing in our social inflation exposed businesses and are confident about the strength of our reserves.”

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 – Excluding the impact of alternative investments, net investment income in our property and casualty insurance operations for the three months ended March 31, 2026, increased 8% year-over-year primarily as a result of the impact of higher balances of invested assets. Property and casualty net investment income including the impact of alternative investments was approximately 1% lower than the comparable 2025 period.

The annualized return on alternative investments was (0.4%) in first quarter of 2026 compared to 1.8% 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 second or 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 first quarter 2026 net realized losses of $15 million ($0.18 per share loss) after tax, which included $13 million ($0.16 per share loss) in after-tax net losses to adjust equity securities that the Company continued to own at March 31, 2026, to fair value. AFG recorded net realized gains of $2 million ($0.03 per share) after tax in the comparable 2025 period.

After-tax unrealized losses related to fixed maturities were $101 million at March 31, 2026. Our portfolio continues to be high quality, with 96% 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 first quarter results at 11:30 a.m. (ET) tomorrow, Thursday, April 30, 2026. There are 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

March 31,

2026

2025

Revenues

Net earned premiums

$

1,609

$

1,580

Net investment income

187

173

Realized gains (losses) on securities

(18

)

3

Income of managed investment entities:

Investment income

67

76

Gain (loss) on change in fair value of

assets/liabilities

(20

)

(3

)

Other income

29

27

Total revenues

1,854

1,856

Costs and expenses

Losses & loss adjustment expenses

906

965

Commissions and other underwriting expenses

556

530

Interest charges on borrowed money

23

19

Expenses of managed investment entities

58

68

Other expenses

72

77

Total costs and expenses

1,615

1,659

Earnings before income taxes

239

197

Provision for income taxes

48

43

Net earnings

$

191

$

154

Diluted earnings per common share

$

2.29

$

1.84

Average number of diluted shares

83.3

83.8

Selected Balance Sheet Data:

March 31, 2026

December 31, 2025

Total Cash and investments

$17,143

$17,182

Long-term debt

$1,820

$1,820

Shareholders' equity(b)

$4,678

$4,820

Shareholders' equity (excluding AOCI)

$4,805

$4,870

Book value per share(b)

$56.30

$57.78

Book value per share (excluding AOCI)

$57.83

$58.38

Common Shares Outstanding

83.1

83.4

  Footnote (b) is contained in the accompanying Notes to Financial Schedules at the end of this release.

AMERICAN FINANCIAL GROUP, INC.

SPECIALTY P&C OPERATIONS

(Dollars in Millions)

  Three months ended March 31,

Pct. Change

2026

2025

Gross written premiums

$

2,435

$

2,291

6

%

Net written premiums

$

1,664

$

1,611

3

%

Ratios (GAAP):

Loss & LAE ratio

56.3

%

61.0

%

Underwriting expense ratio

34.0

%

33.0

%

Specialty Combined Ratio

90.3

%

94.0

%

Combined Ratio – P&C Segment

90.4

%

94.1

%

Supplemental Information (c):

Gross Written Premiums:

Property & Transportation

$

999

$

897

11

%

Specialty Casualty

1,089

1,068

2

%

Specialty Financial

347

326

6

%

$

2,435

$

2,291

6

%

Net Written Premiums:

Property & Transportation

$

596

$

563

6

%

Specialty Casualty

789

772

2

%

Specialty Financial

279

276

1

%

$

1,664

$

1,611

3

%

Combined Ratio (GAAP):

Property & Transportation

87.6

%

92.5

%

Specialty Casualty

95.8

%

97.6

%

Specialty Financial

80.0

%

87.0

%

Aggregate Specialty Group

90.3

%

94.0

%

Three months ended March 31,

2026

2025

Reserve Development (Favorable)/Adverse:

Property & Transportation

$

(47

)

$

(19

)

Specialty Casualty

—

12

Specialty Financial

(23

)

(13

)

Specialty Group

(70

)

(20

)

Other

—

—

Total Reserve Development

$

(70

)

$

(20

)

Points on Combined Ratio:

Property & Transportation

(9.0

)

(3.9

)

Specialty Casualty

—

1.6

Specialty Financial

(7.9

)

(4.6

)

Aggregate Specialty Group

(4.4

)

(1.3

)

Total P&C Segment

(4.3

)

(1.3

)

  Footnote (c) is contained in the accompanying Notes to Financial Schedules at the end of this release.

AMERICAN FINANCIAL GROUP, INC.

Notes to Financial Schedules

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

  Three months ended March 31,

2026

2025

Core Operating Earnings before Income Taxes:

P&C Insurance Segment

$

309

$

246

Interest and other corporate expenses

(52

)

(52

)

Core operating earnings before income taxes

257

194

Related income taxes

51

42

Core net operating earnings

$

206

$

152

  b) Shareholders’ Equity at March 31, 2026, includes ($127 million) ($1.53 per share loss) in Accumulated Other Comprehensive Income (Loss) compared to ($50 million) ($0.60 per share loss) in Accumulated Other Comprehensive Income (Loss) at December 31, 2025.

  c) Supplemental Notes:

Property & Transportation includes primarily physical damage and liability coverage for buses and trucks and other specialty transportation niches, inland and ocean marine, agricultural-related products, and other commercial property coverages. Specialty Casualty includes primarily excess and surplus, general liability, executive liability, professional liability, umbrella and excess liability, specialty coverages in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance. Specialty Financial includes risk management insurance programs for lending and leasing institutions (including equipment leasing and collateral and lender-placed mortgage property insurance), surety and fidelity products and trade credit insurance. More News From American Financial Group, Inc.

American Financial Group (AFG - Free Report) reported $1.83 billion in revenue for the quarter ended March 2026, representing a year-over-year decline of 1.7%. EPS of $2.47 for the same period compares to $1.81 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.99 billion, representing a surprise of -8.29%. The company delivered an EPS surprise of -2.95%, with the consensus EPS estimate being $2.55.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how American Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Property and Casualty combined ratio - Specialty - Loss and LAE Ratio: 56.3% compared to the 60.5% average estimate based on four analysts.Property and Casualty combined ratio - Specialty - Underwriting Expense Ratio: 34% versus 32.1% estimated by four analysts on average.Property and Casualty combined ratio - Specialty - Combined Ratio - Specialty: 90.3% versus the four-analyst average estimate of 92.8%.Specialty Casualty - Loss and LAE Ratio: 64.7% versus 66.5% estimated by three analysts on average.Specialty Casualty - Underwriting Expense Ratio: 31.1% compared to the 29% average estimate based on three analysts.Revenues- Net investment income: $187 million compared to the $210.21 million average estimate based on four analysts. The reported number represents a change of +8.1% year over year.Revenues- Net earned premiums: $1.61 billion versus the four-analyst average estimate of $1.77 billion. The reported number represents a year-over-year change of +1.8%.Specialty Casualty- Net earned premium: $799 million versus the three-analyst average estimate of $843.8 million. The reported number represents a year-over-year change of +0.6%.Property and Transportation- Net earned premium: $526 million versus $639.68 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.Specialty Financial- Net earned premium: $284 million versus the three-analyst average estimate of $307.92 million. The reported number represents a year-over-year change of -0.7%.Revenues- Other income: $29 million versus the two-analyst average estimate of $28.88 million. The reported number represents a year-over-year change of +7.4%.Revenues- Income of managed investment entities- Investment income: $67 million versus the two-analyst average estimate of $70.11 million. The reported number represents a year-over-year change of -11.8%.View all Key Company Metrics for American Financial here>>>

Shares of American Financial have returned +2.9% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) is pleased to announce the promotion of Andrea I. Raible to Assistant Vice President & Controller. Ms. Raible succeeds Robert (Bob) A. Dee, who will retire in June after 41 years of service to the company.

Ms. Raible joined AFG in 2005 and has held positions of increasing responsibility within the company’s finance and accounting areas. In her new role, she will oversee accounting policies and procedures in accordance with Generally Accepted Accounting Principles (GAAP) and other applicable regulations, as well as financial reporting to the Securities and Exchange Commission (SEC).

Ms. Raible earned a bachelor’s degree in accounting from the University of Cincinnati and is a Certified Public Accountant (CPA) in the state of Kentucky.

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.

More News From American Financial Group, Inc.

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Key Takeaways AFG saw specialty gross written premiums rise 6% on new business and favorable renewals.American Financial posted renewal rate increases for the 35th straight quarter in Q1 2026.AFG returned $259M to shareholders while facing catastrophe, inflation and regulatory risks. American Financial Group, Inc. (AFG - Free Report) has been trading above its 200-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of May 21, 2026, was $137.24, down 13% from its 52-week high of $150.02.

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The 200-day SMA is a long-term technical indicator that averages a stock's closing price over the last 200 trading days to smooth out volatility and identify the broader trend direction. When the stock price crosses above the 200-day SMA, it can signal a buy or hold opportunity.

With a market capitalization of $10.87 billion, the average volume of shares traded in the last three months was 0.6 million. The insurer is trading at a price-to-book multiple of 2.44X, higher than the industry average of 1.38X.

AFG’s Price PerformanceShares of AFG have gained 12.1% year to date against the industry’s decline of 4.6%.

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AFG has outperformed some of the other insurers, W.R.such as  Berkley Corporation. (WRB - Free Report) , RLI Corp. (RLI - Free Report)  ) and Kinsale Capital Group, Inc. (KNSL - Free Report) . WRB, RLI and KNSL have lost 6.5%, 26.4% and 31.1%, respectively, in the same time frame.

AFG’s Encouraging Growth ProjectionsThe Zacks Consensus Estimate for American Financial’s 2026 earnings per share(EPS) indicates a year-over-year increase of 9%. 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 EPS and revenues indicates an increase of 5.5% 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 per share. The average suggests a potential 3.4% upside from the last closing price.

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AFG’s Favorable Return on CapitalReturn on equity in the trailing 12 months was 19.5%, which compared favorably with the industry average of 7.4%,  reflecting AFG’s efficiency in utilizing shareholders’ funds.

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. Specialty gross written premiums increased 6% and net written premiums rose 3% year over year, reflecting new business opportunities, a favorable renewal environment and higher exposures in several lines.

American Financial witnessed average renewal pricing across the P&C group rising approximately 3% in the first quarter of 2026. It intends to maintain satisfactory rates in P&C renewal pricing going forward. AFG has reported overall renewal rate increases for 35 consecutive quarters. 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.

AFG has a long history of returning capital through regular and special dividends and share repurchases, and it has increased its dividend in each of the past 20 years. The company returned approximately $259 million to shareholders during the quarter. Management expects operations to generate excess capital through the remainder of 2026, which can support growth initiatives and shareholder returns.

Risks for AFGCatastrophe losses, rising inflation, higher claims costs, and reserve pressures in longer-tail lines could hurt underwriting profitability if expenses grow faster than premiums.

Insurance and investment activities are heavily regulated at the state and federal levels. New rules can increase compliance costs and restrict product or capital actions.

End NotesAmerican Financial’s prudent capital deployment, increased exposures, good average renewal rate and improved combined ratio make it an attractive stock. However, catastrophe losses, rising expenses, inflation and strict regulations pose near-term headwinds.

American Financial has increased its dividend for 20 straight years. Notably, the 10-year compound annual growth rate for the company's regular annual dividends is an impressive 12.4%. The dividend yield is 2.7%, better than the industry average of 0.2%.

American Financial should benefit from strategic acquisitions, new business opportunities, stronger underwriting profit and favorable growth estimates. It is, therefore, wise to retain this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways AFG's investment income is supported by higher interest rates and growth in invested assets. Its portfolio includes fixed-income securities, alternative investments, equities and equity-method holdings. Management expects stronger alternative investment returns to support net investment income in 2026. American Financial Group, Inc.’s (AFG - Free Report) investment income is an important earnings driver because the company invests the premiums it collects before claims are paid.

AFG maintains a large investment portfolio, primarily consisting of high-quality fixed-income securities, with allocations to alternative investments, including private equity funds, limited partnerships and real estate-related investments.

AFG’s investment portfolio as of March 31, 2026, contained $11.40 billion in fixed maturity securities classified as available for sale and carried at fair value with unrealized gains and losses included in accumulated other comprehensive income (loss) and $80 million in fixed maturities classified as trading with holding gains and losses included in net investment income. In addition, AFG’s investment portfolio includes $555 million in equity securities carried at fair value with holding gains and losses included in realized gains (losses) on securities and $198 million in equity securities carried at fair value with holding gains and losses included in net investment income. AFG’s investment portfolio also includes $2.44 billion in investments accounted for using the equity method.

Growth in net investment income continues to be supported by higher interest rates and increased invested assets, particularly within its property and casualty insurance operations. Excluding fluctuations from alternative investments, recurring investment income has benefited from the reinvestment of assets at higher yields.

Investment income is a significant tailwind because it enhances operating earnings without requiring premium growth alone. Higher yields on new investments can continue to support earnings for several years. The metric also provides an additional source of shareholder value alongside underwriting profits and capital returns.

The liquidity requirements of AFG’s insurance subsidiaries relate primarily to the policyholder claims, underwriting expenses and payments of dividends and taxes to AFG. Historically, cash flows from premiums and investment income have generally provided more than sufficient funds to meet these requirements.

Management expects overall premium growth and strong underwriting results in the current property and casualty insurance market. In addition, management anticipates that improved returns on alternative investments, relative to returns earned in 2025 and the first quarter of 2026, will positively impact net investment income beginning in the second half of 2026.

AFG's conservative bond portfolio, combined with its exposure to higher-return alternative investments, makes investment income a meaningful contributor to long-term earnings growth and shareholder returns.

What About Other Insurers?Chubb Limited's (CB - Free Report) net investment income is an important earnings contributor. The metric benefits from higher interest rates and stronger portfolio yields, providing a steady source of earnings beyond underwriting profits. This helps improve profitability, offset claim volatility and strengthen overall financial performance.

The Travelers Companies, Inc.’s (TRV - Free Report) net investment income is a material contributor to the company’s results of operations, consistently providing a reliable source of earnings that complements its underwriting activities. Net investment income acts as a second earnings engine for this property and casualty insurer after underwriting profit. Thus, even if underwriting profit weakens because of higher catastrophe losses, solid net investment income can help offset earnings pressure.

AFG’s Price PerformanceShares of AFG have gained 2.7% in the past year, outperforming the industry.

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AFG’s OvervaluationThe stock is overvalued compared with its industry. It is currently trading at a price-to-book value multiple of 2.28, higher than the industry average of 1.34. It carries a Value Score of A.

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Estimate Movement for AFGThe Zacks Consensus Estimate for AFG’s second-quarter 2026 has moved down 2%, and the third-quarter 2026 EPS has moved up 13.1% in the past 30 days. The same for full-year 2026 and 2027 EPS has moved up 3.5% and 2%, respectively, in the past 30 days.

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