Insurer American Financial's Q4 revenue beats estimates

American Financial

03/02/2026 22:10

Overview

Insurance holding company's Q4 revenue beat analysts' expectations

Company declared $1.50 per share special dividend, payable February 2026

Outlook

Company expects 2026 core operating EPS of approximately $11.00

American Financial Group anticipates 3% to 5% growth in net written premiums for 2026

Company projects 2026 core operating ROE of approximately 18%

Result Drivers

UNDERWRITING PROFIT - Record Q4 underwriting profit, particularly in Property and Transportation Group, drove results

INVESTMENT INCOME - Lower returns from alternative investments led to a 12% decrease in net investment income

RESERVE DEVELOPMENT - Favorable prior year reserve development contributed positively to Q4 results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$2.06 bln
$1.85 bln (4 Analysts)
Q4 EPS
$3.58
Q4 Net Income
$299 mln
Q4 Pretax Profit
$379 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "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 $139.00, about 6.7% above its February 3 closing price of $130.25

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw2Ktpsma

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.)