The insurer reported record second-quarter pretax P&C operating income of $350 million, with 6% growth in net written premiums and annualized ROE of 20.3%.
American Financial Group reported 2026 second-quarter net earnings of $248 million, or $2.99 per share, up from $174 million, or $2.07 per share, a year earlier. Results included $14 million, or $0.17 per share, of after-tax non-core gains, while the 2025 quarter included after-tax non-core losses of $5 million, or $0.07 per share loss. Core net operating earnings rose to $234 million, or $2.82 per share, from $179 million, or $2.14 per share, driven by higher underwriting profit and stronger returns from alternative investments (non-traditional investment portfolio). The company said annualized return on equity, excluding AOCI (accumulated other comprehensive income), was 20.3%, while core operating ROE was 19.2%. Its Specialty Property and Casualty insurance business delivered record second-quarter pretax operating income of $350 million and a 91.5% combined ratio (claims and expenses as a share of premiums), improving from 93.1% a year earlier. Underwriting profit increased to $144 million from $114 million, helped by lower catastrophe losses and stronger favorable prior year reserve development. Gross and net written premiums climbed 7% and 6%, respectively, with pricing remaining positive across most businesses. Average renewal rate increases excluding workers’ compensation were about 5%. AFG also said book value per share was $58.14 at June 30, 2026, and book value per share excluding AOCI was $59.85. During the quarter, it repurchased $26 million of common stock at an average price of $129.85 per share and paid cash dividends of $0.88 per share. The company said it continued to hold significant excess capital and expects to deploy it through dividends, buybacks, organic growth, acquisitions and start-ups that meet return thresholds. It also said the planned sale of Charleston Harbor Resort & Marina, announced in April 2026, is expected to close in the third quarter and generate an approximately $125 million pretax core operating gain, subject to approvals and customary closing conditions.