| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 98 | 1.5x | 17.4x | Top tier | |
Growth | 26 | -0.2% | 7.1% | Bottom tier | |
Quality | 93 | — | — | Top tier | |
Safety | 22 | — | — | Bottom tier | |
Capital Return | 86 | 41.28% | 0.18% | Top tier | |
Momentum | 53 | -16.9% | 1.3% | Around median | |
Sentiment | 1 | 1 | 3 | Bottom tier |
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
American Financial Group, Inc. operates in specialty property and casualty insurance through 36 businesses and derives its results from collecting premiums, generating underwriting profits, and investing available funds within a portfolio totaling $17.1 billion as of June 30, 2026. Its portfolio includes Property and Transportation, Specialty Casualty, and Specialty Financial groups, with specific exposures such as crop insurance, commercial auto, workers' compensation, financial institutions, and lender-placed property. This diversity provides the company with multiple sources of growth, but it also ties results to factors such as catastrophe losses, social inflation, crop prices, and alternative investment returns.
In Q2 FY2026, the company reported revenue of $2.0 billion, net income of $248 million, and earnings per share of $2.99, equivalent to a calculated net income margin of approximately 12.4%. Core operating earnings were $2.82 per share, up 32% year over year, with an annualized core operating return on equity of 19.2%. Its specialty property and casualty insurance operations also achieved a combined ratio of 91.5%, compared with 93.1% in Q2 FY2025, and set a new second-quarter record for pre-tax operating income.
Gross and net written premiums increased by 7% and 6%, respectively, in Q2 FY2026. By group, the combined ratio was 90.3% in Property and Transportation, 94.5% in Specialty Casualty, and 85.6% in Specialty Financial, while gross premiums increased by 8%, 5%, and 10% in these groups, respectively. Net investment income in the property and casualty operations also increased by 23% year over year, supported by alternative investment returns reaching 7.1%, compared with 1.2% in the corresponding period.
Automated analysis for informational purposes only — not investment advice.
AFGE's 52-week range extends from $15.6501 to $19.41, with the upper end approximately 24% above the lower end, illustrating the breadth of its valuation movement during the period. A more precise relative assessment cannot be established from the provided data using a price-to-earnings multiple or a consensus price target, so underwriting performance, investment returns, and the expected gain from the sale of Charleston Harbor Resort and Marina remain the primary operating pillars for valuing the company.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
The company reported revenue of $2.0 billion, net income of $248 million, and earnings per share of $2.99. Core operating earnings were $2.82 per share, up 32% year over year. Its specialty property and casualty operations also achieved a combined ratio of 91.5% and an annualized core operating return on equity of 19.2%.
The company's gross and net written premiums increased by 7% and 6%, respectively. In Property and Transportation, gross premiums increased by 8%, supported by crop insurance, new business opportunities, increased exposures, and improved pricing in some transportation businesses. Gross premiums also increased by 5% in Specialty Casualty and 10% in Specialty Financial, with growth in the financial institutions business serving as a key driver for the latter group.
The investment portfolio totaled $17.1 billion as of June 30, 2026, with approximately two-thirds invested in fixed-income securities. Net investment income in the property and casualty operations increased by 23% year over year during Q2 FY2026, with new investment yields of approximately 5.5% on fixed-income securities. The annualized return on alternative investments also increased to 7.1% from 1.2% in the corresponding period, while management expects a long-term annual return of 10% or more on these investments.
In April 2026, AFG entered into definitive agreements to sell Charleston Harbor Resort and Marina. The company expects to complete the transaction in Q3 FY2026, subject to the necessary approvals and satisfaction of customary closing conditions. The pre-tax core operating gain is estimated at approximately $125 million, or $1.20 per share, and will be included in net investment income and allocated equally between the property and casualty operations and the parent company.
Social inflation remains important in long-tail casualty businesses and has prompted the company to remain conservative in its initial loss estimates despite improvement in commercial auto liability. Workers' compensation pricing also declined by 2% in Q2 FY2026, and results in California, which represents 14% of this business, were weak. Crop insurance results depend on yields and prices during the second half of FY2026, while catastrophe losses added 1.8 points to the quarter's combined ratio.
The company uses artificial intelligence to automate insurance submissions, analyze documents, automate claims workflows, and summarize recorded statements and extract insights from them. Management stated during the August 5, 2026 call that it is seeing productivity improvements, with advanced uses in the crop insurance business. Underwriting knowledge management and support for underwriter decisions remain at an early stage, and their applications are undergoing several trials.
