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American Financial Group (AFG)
NYSE:AFG
Earnings Data
Report Date
May 05, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
2.52Last Year’s EPS
1.81Same Quarter Last Year
Moderate Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented multiple strong financial and operational highlights — record underwriting profit, robust core earnings and ROE, disciplined capital returns (over $700M returned in 2025 plus ongoing dividends), solid balance sheet and multi-quarter renewal rate momentum. These positives are tempered by meaningful near-term challenges in alternative investment returns (particularly multifamily), some deterioration and caution in casualty loss trends (including California workers' comp), and selective premium softness or increased ceding in parts of the portfolio. Management provided constructive 2026 planning assumptions (EPS ~$11, ROE ~18%) and reiterated disciplined underwriting and capital management. On balance, the company's strong earnings, capital position, and underwriting performance outweigh the identifiable headwinds, though execution on alternatives recovery and casualty reserve trends are key risks to monitor.Company Guidance
Strong Full-Year Core Earnings and ROE
Core net operating earnings of $10.29 per share for full year 2025 and a core operating return on equity of 18.2% (calculated using an average of the five most recent quarter-end shareholders' equity balances, excluding AOCI).
Exceptional Fourth Quarter Core Results
Q4 core net operating earnings per share of $3.65 and an annualized Q4 core return on equity of 25.2%, marking an exceptionally strong quarter to finish the year.
Record Underwriting Profit and Low Combined Ratio in Q4
Underwriting profit in Specialty P&C grew 41% in Q4 and produced an 84.1% combined ratio (improvement of nearly 5 points YoY), driven by very strong crop results and diversified specialty portfolio performance.
Outstanding Property & Transportation Performance
Property & Transportation group achieved a 70.6% calendar year combined ratio in Q4 (improvement of ~19 points YoY). Q4 gross written premiums were up 5% while average renewal rates in the group increased ~6% (full year pricing up ~7%).
Consistent Renewal Rate Momentum
Average renewal rates across P&C (ex-workers' comp) up ~5% in Q4 and ~4% including workers' comp; the company has reported renewal rate increases for 38 consecutive quarters, aiding rate adequacy versus prospective loss trends.
Capital Return and Dividend Actions
Returned over $700M to shareholders in 2025 (including $334M or $4.00/share in special dividends, $274M in regular dividends, and $99M in share repurchases). Increased quarterly dividend by 10% to an annual rate of $3.52/share beginning Oct 2025 and declared an additional $1.50/share special dividend (~$125M) payable Feb 2026.
Strong Balance Sheet and Ratings
Year-end leverage ratio under 28%, no debt maturities until 2030, and A+ ratings from both AM Best and S&P, supporting continued capital deployment flexibility (acquisitions, special dividends, share repurchases).
Book Value Growth Plus Dividends
For the year ended Dec 31, 2025, growth in book value per share (excluding AOCI) plus dividends was 17.2%, reflecting meaningful shareholder value creation.
Investment Portfolio Positioning
Total invested assets of $17.2B with ~65% in fixed maturities, P&C fixed-maturity yields ~5.25%, and portfolio duration of 2.9 years at year-end, enabling attractive reinvestment opportunities in the current rate environment.
Forward-Looking 2026 Business Plan Assumptions
Management provided plan assumptions: net written premium growth of 3%-5% (from $7.1B), a combined ratio of ~92.5%, reinvestment rate ~5.25%, ~8% annual return on $2.8B of alternatives, and implied core net operating EPS of ~$11 with a core operating ROE of ~18% for 2026.
AFG Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
AFG Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 03, 2026 | $128.74 | $124.71 | -3.13% |
Nov 10, 2025 | $137.70 | $137.81 | +0.08% |
Aug 05, 2025 | $119.59 | $122.80 | +2.69% |
May 06, 2025 | $124.24 | $116.61 | -6.14% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does American Financial Group (AFG) report earnings?
American Financial Group (AFG) is schdueled to report earning on May 05, 2026, After Close (Confirmed).
What is American Financial Group (AFG) earnings time?
American Financial Group (AFG) earnings time is at May 05, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is AFG EPS forecast?
AFG EPS forecast for the fiscal quarter 2026 (Q1) is 2.52.