| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 2.0K | 9.5% | 5.5% |
| Total Income | 2.0K | 9.5% | 5.5% |
| Expenditure | 1.7K | 6.1% | 1.1% |
| PBT | — | ||
| Net Profit | 248.00 | 29.8% | 42.5% |
| OPM | 15.57% | 2.68pp | 3.67pp |
| NPM | 12.22% | 1.92pp | 3.17pp |
| EPS | 2.99 | 30.6% | 44.4% |
American Financial Group Reports Strong Second Quarter 2026 Results
05 Aug 2026 · 5 Aug, 6:02 pm
Summary
American Financial Group, Inc. announced strong results for the second quarter of 2026, with net earnings of $248 million ($2.99 per share) and core net operating earnings of $234 million ($2.82 per share). The company achieved a record pretax P&C operating income of $350 million, driven by strong underwriting margins and premium growth. Net written premiums increased by 6% year-over-year, and the Specialty P&C insurance operations reported an improved combined ratio of 91.5%. Management highlighted the company's strong performance, effective capital management, and opportunistic culture as key drivers for shareholder value creation.
Key Highlights
- 1
American Financial Group reported second quarter 2026 net earnings of $248 million ($2.99 per share), a significant increase from $174 million ($2.07 per share) in the prior year quarter.
- 2
Core net operating earnings for the second quarter of 2026 were $234 million ($2.82 per share), up from $179 million ($2.14 per share) in the second quarter of 2025.
- 3
The company achieved a record second quarter pretax P&C operating income of $350 million.
- 4
Second quarter annualized return on equity was 20.3%, with a core operating ROE of 19.2%.
- 5
Second quarter growth in net written premiums was 6% year-over-year.
- 6
The Specialty P&C insurance operations generated a 91.5% combined ratio in the second quarter of 2026, an improvement of 1.6 points from the prior year quarter.
- 7
Net investment income in property and casualty operations for the three months ended June 30, 2026, increased 23% year-over-year, reaching a new second quarter record.
Management Comments
Carl H. Lindner III and S. Craig Lindner
AFG’s strong underwriting margins, healthy premium growth and higher P&C net investment income set a new second quarter record for pretax P&C operating income. This level of performance contributed to an annualized core operating return on equity of 19%. These results, coupled with effective capital management and our entrepreneurial, opportunistic culture and disciplined operating philosophy enable us to continue to create value for our shareholders. AFG continued to have significant excess capital at June 30, 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
I am very pleased with the 44% increase in underwriting profit in the first six months of the year, and happy to see our teams executing on opportunities to grow while achieving renewal rate increases that are helping us meet targeted returns. These results position us well as we enter the second half of the year.
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