AFGB · American Financial Group, Inc.

American Financial Group delivered strong first quarter 2026 results, with core net operating earnings per share increasing 36% year-over-year to $2.47. The performance was primarily driven by a 66% increase in Specialty P&C underwriting profit, which rose to $156 million. The Specialty P&C combined ratio improved to 90.3% from 94.0% in the prior year quarter, reflecting 4.4 points of favorable prior year reserve development and lower catastrophe losses of 2.2 points compared to 4.5 points in Q1 2025. All three Specialty P&C groups—Property and Transportation, Specialty Casualty, and Specialty Financial—reported higher year-over-year underwriting profits.

Investment results were mixed. Net investment income excluding alternative investments increased 8% due to higher invested asset balances, but the alternative investment portfolio returned -0.4% annualized, compared to 1.8% in the prior year quarter. This partially offset the strong underwriting results. Net earnings of $191 million ($2.29 per share) included $15 million in after-tax net realized losses on securities.

In a significant strategic development disclosed under Item 7.01, AFG reached a definitive agreement to sell the Charleston Harbor Resort & Marina. The company expects to recognize a pretax core operating gain of approximately $125 million on the sale, which is expected to close in the second or third quarter of 2026. This transaction was not contemplated in AFG’s original business plan assumptions. Management highlighted the company's significant excess capital position, with nearly $260 million returned to shareholders in Q1 through regular dividends, special dividends, and share repurchases. Book value per share excluding AOCI was $57.83 at March 31, 2026.