| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 1.9K | 0.1% |
| Total Income | 1.9K | 0.1% |
| Expenditure | 1.6K | 2.6% |
| PBT | — | |
| Net Profit | 191.00 | 24.0% |
| OPM | 12.89% | 2.28pp |
| NPM | 10.30% | 2.00pp |
| EPS | 2.29 | 24.5% |
American Financial Group Reports Q1 2026 Core EPS $2.47, Up 36% Y-o-Y
03 May 2026 · 3 May, 6:20 pm
Summary
American Financial Group, Inc. reported first quarter 2026 net earnings of $191 million ($2.29 per share) compared to $154 million ($1.84 per share) for the 2025 first quarter. 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. 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.
Key Highlights
- 1
American Financial Group's net earnings per share were $2.29, including a ($0.18) per share loss from after-tax non-core items for the first quarter of 2026.
- 2
Core net operating earnings per share increased by 36% year-over-year to $2.47 in the first quarter of 2026.
- 3
The company's first quarter annualized return on equity was 15.8%, with a core net operating ROE of 17.0%.
- 4
Specialty P&C underwriting profit increased by 66% year-over-year in the first quarter of 2026.
- 5
Approximately $259 million of capital was returned to shareholders in the first quarter, including $125 million in special dividends and $60 million in share repurchases.
- 6
Definitive agreements were reached for the sale of Charleston Harbor Resort & Marina, with an expected core pretax gain of $125 million, anticipated to close in the second or third quarter of 2026.
- 7
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 year-over-year.
Management Comments
S. Craig Lindner and Carl H. Lindner III
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. 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.
Carl Lindner III
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.”
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