Insurer American Financial's Q4 revenue beats estimates

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

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

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