Insurer American Financial Group's Q3 adj EPS beats on underwriting and premium growth

American Financial

03/11/2026 22:13

Overview
US specialty P&C insurer's Q3 revenue rose
Adjusted EPS for Q3 beat analyst expectations
Company declared $3.50 per share special dividend

Outlook
Company expects renewal rate increases to support targeted returns
Company expects annual returns from alternative investments to average 10% or better

Result Drivers
UNDERWRITING AND PREMIUM GROWTH - Co attributed record Q3 pretax P&C operating income to strong underwriting margins and 9% growth in net written premiums
INVESTMENT INCOME - Q3 net investment income rose 41% year-over-year, driven by sale of Charleston Harbor Resort & Marina
RENEWAL RATE INCREASES - Co said favorable renewal rate environment and strong policy retention contributed to premium growth

Company press release: ID:nBw9rgxMWa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
$2.58 bln
 
Q3 Adjusted EPS
Beat
$3.97
$3.80 (8 Analysts)
Q3 EPS
 
$3.40
 
Q3 Net Income
 
$282 mln
 
Q3 Pretax Profit
 
$359 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 $151.50, about 1% below its November 3 closing price of $153.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

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Nov 3 - AIG beats profit estimates on premium growth, investment income
Nov 3 - AIG Q3 net premiums written rise on commercial, personal insurance growth
Nov 2 - Corebridge Financial Q3 net income surges on realized gains

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(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.)