American Financial Group tops Q1 revenue estimates

American Financial

29/04/2026 22:11

Overview

US specialty insurer's Q1 revenue rose yr/yr, beating analyst expectations

Adjusted pretax profit for Q1 missed analyst expectations

Company returned $259 mln to shareholders via dividends and buybacks in Q1

Outlook

Company expects to recognize a pretax core operating gain of about $125 mln from Charleston Harbor Resort & Marina sale, with closing expected in Q2 or Q3 2026

Company remains optimistic about achieving annual returns of 10% or better from its alternative investment portfolio over the long term

Company says it is achieving renewal rate increases that enable it to meet or exceed targeted returns

Result Drivers

UNDERWRITING PROFIT - Specialty P&C underwriting profit increased 66% yr/yr, benefiting from improved combined ratios, lower catastrophe losses, and favorable prior-year reserve development

PREMIUM GROWTH - Gross written premiums rose 6% yr/yr, driven by new business, higher renewal rates, and increased exposures across multiple business lines

ALTERNATIVE INVESTMENTS - Lower returns from alternative investments partially offset earnings growth

Company press release: ID:nBw93cXtka

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.85 bln
$1.70 bln (5 Analysts)
Q1 EPS
$2.29
Q1 Net Income
$191 mln
Q1 Adjusted Pretax Profit
Miss
$257 mln
$270.53 mln (4 Analysts)
Q1 Adjusted EBIT
$51 mln
Q1 Pretax Profit
$239 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy."

Wall Street's median 12-month price target for American Financial Group Inc is $140.00, about 8.2% above its April 29 closing price of $129.42

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)