Corrected: American Financial Group Q2 revenue beats, helped by premium growth

American Financial

04/08/2026 22:11

Corrects to remove Adjusted EBIT metric from Key Details table

Overview
U.S. specialty insurer's Q2 revenue rose and beat analyst expectations
Core net operating EPS for Q2 increased year-over-year
Company repurchased $26 mln of stock during the quarter

Outlook
Company expects to recognize a pretax core operating gain of about $125 mln in Q3 from asset sale
Company remains optimistic about long-term returns from alternative investments, targeting 10% or better annually
Company plans to deploy capital into core businesses and pursue organic growth and niche acquisitions

Result Drivers
UNDERWRITING PROFIT - Higher year-over-year underwriting profit, especially in Property and Transportation, drove Q2 results
INVESTMENT RETURNS - Net investment income rose 23% year-over-year, primarily due to higher yields on alternative investments
PREMIUM GROWTH - Net written premiums grew 6% in Q2, supported by new business, increased exposures, and favorable renewal rates

Company press release: ID:nBw5tSPR7a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$2.03 bln
$1.73 bln (5 Analysts)
Q2 EPS
 
$2.99
 
Q2 Net Income
 
$248 mln
 
Q2 Pretax Profit
 
$316 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "hold"
Wall Street's median 12-month price target for American Financial Group Inc is $144.50, about 1.8% above its August 3 closing price of $141.92
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Aug 4 - Skyward Specialty Q2 operating EPS rises on premium growth
Aug 4 - Palomar Q2 adjusted EPS and net income beat estimates, premiums up 27%
Aug 3 - United Fire Group Q2 net income rises 45%, premiums up

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.)