American Financial Group, Inc. (AFG) reported a second-quarter 2026 net operating earnings per share of $2.82, exceeding the Zacks Consensus Estimate by 17%. This marks a 31.8% increase year over year, driven by robust underwriting income and improved returns from alternative investments. Total revenues reached $2 billion, a 5% year-over-year increase, also surpassing estimates by 0.7%.
Key metrics for the quarter include net earned premiums of approximately $1.7 billion, a year-over-year increase of 2.9%, although it fell slightly short of consensus estimates. Net investment income rose by 20.1% to $221 million, exceeding both estimates and prior-year figures. Annualized return on equity was 20.3%, up 50 basis points year-over-year, while total costs and expenses reached $1.7 billion, a 1.1% increase over the previous year.
Segments showed promising performance with the Specialty P&C Insurance segment generating $1.9 billion in net written premiums, marking a 6% rise year-over-year, and an underwriting profit increase of 26.3% to $144 million. Meanwhile, the Property & Transportation Group reported net written premiums of $797 million, driven by crop insurance growth and improved underwriting margins.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
