American Financial Group Reports Strong Q3 Earnings

American Financial ( (AFG) ) has released its Q3 earnings. Here is a breakdown of the information American Financial presented to its investors.

American Financial Group, Inc., headquartered in Cincinnati, Ohio, is a prominent insurance holding company engaged in property and casualty insurance, focusing primarily on specialized commercial products for businesses through its Great American Insurance Group.

In its latest earnings report, American Financial Group announced third-quarter results showing net earnings of $181 million, or $2.16 per share, marking an increase from $177 million, or $2.09 per share, in the same period last year. The company also declared a special dividend of $4.00 per share, highlighting its robust financial position and commitment to returning value to shareholders.

Key financial metrics from the report include a core net operating earnings of $2.31 per share and a 16.2% annualized return on equity for core operations. Despite an increase in catastrophe losses due to events like Hurricane Helene, the company achieved an 8% increase in overall average renewal rates, excluding workers’ compensation. Additionally, the property and casualty net investment income rose by nearly 15% year-over-year.

American Financial Group’s management expressed satisfaction with the quarterly performance, noting solid underwriting profitability and effective capital management strategies. They emphasized the company’s focus on creating shareholder value through regular and special dividends, as well as exploring opportunities for organic growth and strategic acquisitions.

Looking ahead, American Financial Group remains optimistic about its specialty P&C businesses, confident in the strength of its reserves, and committed to leveraging excess capital for growth opportunities in niche markets, despite the challenges posed by recent natural catastrophes.