American Financial Group, Inc. (AFG)

American Financial Group reported third-quarter 2026 net earnings of $282 million, or $3.40 per share, on 3 November, against $215 million, or $2.58 per share, a year earlier 2.

Core net operating earnings, which leave out realized gains and losses and other items the company says do not show ongoing operations, were $329 million, or $3.97 per share 2.

Much of the gain came from the August 2026 sale of Charleston Harbor Resort & Marina, which produced $126 million of pretax net investment income, split evenly between the insurance segment and the parent company 2.

Net written premiums, the premiums kept after paying for reinsurance, grew 9 percent, and the company said average renewal pricing outside workers' compensation rose about 6 percent 2.

The board also declared a special cash dividend of $3.50 per share, payable on 25 November 2026 to holders of record on 16 November, about $290 million in all 12.

The open question is where excess capital goes next: the Co-Chief Executive Officers said it would go to dividends, buybacks and growth in the core businesses, including acquisitions and start-ups 2.

Great American Insurance Group says its members have been in business for over 150 years, and the company dates its flagship insurer to 1872 32.

Over the past 25 plus years, AFG says, it sharpened its focus on the businesses it knows best through organic growth, acquisitions, start-ups and dispositions 3.

In July 2023 it bought Crop Risk Services, a crop insurance business, for $234 million in cash 3.

Net written premiums were $6,692 million in 2023, $7,139 million in 2024 and $7,110 million in 2025 3.

The combined ratio adds losses, claim-handling costs and expenses as a share of premiums, and a figure under 100 percent means an underwriting profit 3.

AFG's was 90.4 percent in 2023, 91.2 percent in 2024 and 91.0 percent in 2025 on the accounting basis used for shareholders 3.

On the insurance regulators' basis, its combined ratio averaged 90.5 percent from 2016 to 2025, against 98.1 percent for commercial lines insurers as a whole 3.

Net earnings were $842 million in 2025, down from $887 million in 2024 3.

The company said higher underwriting profit and higher yields on bonds were more than offset by lower income from alternative investments, which earned 2.5 percent in 2025 3.

It paid $606 million of cash dividends in 2025, down from $788 million in 2024, and repurchased $99 million of its common stock after none in 2024 3.

In September 2025 it issued $350 million of 5.00% Senior Notes 3.

Since the start of 2021 the company has declared $59.00 per share in special dividends, counting the newest 2.

What it sells

AFG is an insurance holding company that, through Great American Insurance Group, sells property and casualty insurance, focusing on specialized commercial products for businesses 3.

It ran 36 insurance businesses at the end of 2025, each deciding its own underwriting, claims and policy servicing 3.

Net written premiums for 2025 were $2,771 million in property and transportation, $3,247 million in specialty casualty and $1,092 million in specialty financial 3.

Property and Transportation

This group covers buses and trucks, moving and storage, inland and ocean marine, crop insurance for farms and other commercial property 23.

It earned an underwriting profit of $68 million in the third quarter of 2026 against $55 million a year before, with a combined ratio of 93.4 percent 2.

Net written premiums rose 14 percent, mainly from growth in certain crop insurance products and new business in transportation 2.

Specialty Casualty

This group writes excess and surplus liability, executive and professional liability, general liability for energy and construction, and workers' compensation 2.

Its third-quarter underwriting profit was $42 million against $33 million, with a combined ratio of 94.9 percent, and net written premiums rose 2 percent 2.

Specialty Financial

This group sells insurance programs for lenders and lessors, surety and fidelity bonds, and trade credit insurance 2.

Underwriting profit fell to $23 million from $51 million, which the company tied to an isolated large loss in its European operations and less favorable reserve development 2.

Net written premiums rose about 14 percent on growth in lender services 2.

Investments

Net investment income in the property and casualty operations set a quarterly record of $289 million, up 41 percent, mostly from the Charleston Harbor sale 2.

The company reported that 97 percent of its fixed maturity portfolio was rated investment grade at 30 September 2026 2.

People, rivals and problems

S Craig Lindner and Carl H Lindner III are the Co-Chief Executive Officers 2.

The company had about 8,500 employees at the end of 2025 and sells through several thousand independent agents and brokers 3.

It competes with other insurers, state funds, mutual insurers, self-insurance plans and captive programs 3.

In its third-quarter review of asbestos and environmental claims from old policies, it left reserves of $332 million unchanged, net of reinsurance 2.

It booked a special $24 million charge for environmental exposures of its former railroad and manufacturing operations 2.

The umbrella, in words

The main brand is Great American Insurance Group, and its 2025 gross written premiums were $8,211 million at Great American Insurance and $1,256 million at National Interstate 3.

Summit wrote $599 million, Mid-Continent Casualty $206 million and Republic Indemnity $188 million 3.

Its subsidiary list names, all 100 percent owned, Crop Risk Services, Farmers Crop Insurance Alliance, National Interstate Corporation and Mid-Continent Casualty Company, among others 5.

AFG owns Crop Risk Services outright, bought in July 2023 3.

Until August 2026 the property and casualty companies and the AFG parent each owned half of Charleston Harbor Resort & Marina 2.

It owns about 90 percent of 281,000 square feet of rentable office space in Richfield, Ohio, and all of 135,000 square feet in Lakeland, Florida 3.

The special dividend of $3.50 per share is payable on 25 November 2026 to holders of record on 16 November 1.

The company said it paid a regular quarterly dividend of $0.97 per share on 23 October 2026 2.

The Co-Chief Executive Officers said excess capital will be deployed into core businesses where they see profitable organic growth and into acquisitions and start-ups that meet target return thresholds 2.

Management said in its half-year report that it expects premium growth and strong underwriting results, and improved returns on alternative investments to help net investment income in the second half of 2026 4.

The company expects annual returns on alternative investments averaging 10 percent or better over the longer term 2.

The parent company has no debt maturities until 2030 4.

In January 2026 its insurers renewed catastrophe reinsurance, including $350 million of added coverage above $275 million of losses through 31 December 2028 3.

The company held its third-quarter call on 4 November 2026 2.