American Financial Group (AFG) investor relations material

Executive summary

• Net earnings for Q2 2026 were $248 million ($2.99 per share), up from $174 million ($2.07 per share) in Q2 2025, with core net operating earnings at $234 million ($2.82 per share), both showing strong year-over-year growth driven by higher underwriting profit and investment income.

• Achieved record pre-tax property and casualty operating income of $350 million for Q2 2026, supported by strong underwriting margins, premium growth, and higher net investment income, particularly from alternative investments.

• Annualized ROE was 20.3% and core operating ROE was 19.2%, both significantly higher than the prior year.

• Diversified specialty insurance businesses and disciplined operating philosophy cited as key drivers of value creation.

• Management expects continued premium growth, strong underwriting results, and robust investment returns for the remainder of 2026.

Financial highlights

• Net investment income increased 23% year-over-year to $221 million, setting a new Q2 record, with total assets reaching $33.0 billion at June 30, 2026.

• Book value per share, excluding AOCI, rose to $59.85 from $55.74 year-over-year; book value per share was $58.14 at June 30, 2026.

• Gross written premiums grew 7% to $2.85 billion; net written premiums up 6% to $1.915 billion.

• Growth in book value per share plus dividends was 4.8% for Q2, 6.3% for six months.

• Returned nearly $100 million to shareholders in Q2, including $26 million in share repurchases and $0.88 per share dividend.

Outlook and guidance

• Management expects continued generation of significant excess capital in 2026, supporting acquisitions, special dividends, or share repurchases.

• Optimistic about long-term value creation and ability to outperform peers despite market softening in some areas.

• Anticipates closing the sale of Charleston Harbor Resort & Marina in Q3 2026, with an expected pretax core operating gain of $125 million.

• Renewal rate increases are expected to support targeted returns.

• Insurance subsidiaries maintain capital at or above required levels, and no parent company debt matures until 2030.