American Financial Group (AFG) Q2 2026 earnings summary

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), up from $179 million ($2.14 per share) year-over-year, driven by higher underwriting profit and investment income.

• Record pretax property and casualty operating income reached $350 million in Q2 2026, supported by strong underwriting margins, premium growth, and higher net investment income.

• 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 were 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 alternative investments annualized return at 7.1%.

• Net written premiums rose 6% to $1.915 billion, with gross written premiums up 7% to $2.85 billion.

• Book value per share was $58.14 at June 30, 2026; excluding AOCI, $59.85, with growth plus dividends of 4.8% for Q2.

• Total assets reached $33.0 billion at June 30, 2026, up from $30.7 billion a year earlier.

• Returned nearly $100 million to shareholders in Q2 2026, including $26 million in share repurchases and $0.88 per share dividend.

Outlook and guidance

• Management anticipates 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.

• Focus remains on specialty insurance growth, robust investment income, and disciplined capital deployment.

• 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.