American Financial Group Reports 24% Increase in Net Income for Q1 2026

American Financial Group, Inc. (AFG) reported a net income of $191 million, or $2.29 per diluted share, for the first quarter of 2026, marking a 24% increase from the $154 million, or $1.84 per diluted share, recorded in the same period of 2025. The company's total revenues for the quarter were $1.854 billion, slightly down from $1.856 billion year-over-year. The decline in revenue was primarily attributed to realized losses on securities, which amounted to $18 million in the first quarter of 2026 compared to gains of $3 million in the prior year.

In terms of operational performance, AFG's net earned premiums increased by 2% to $1.609 billion, up from $1.580 billion in the previous year. The property and casualty insurance segment, which is AFG's primary business, saw a significant rise in underwriting profit, reaching $156 million compared to $94 million in the first quarter of 2025. This improvement was driven by a combined ratio of 90.3%, down from 94.0% a year earlier, indicating enhanced underwriting efficiency. The company reported gross written premiums of $2.435 billion, a 6% increase from $2.291 billion in the same quarter last year.

AFG's investment portfolio remains robust, with total cash and investments at $17.143 billion as of March 31, 2026, slightly down from $17.182 billion at the end of 2025. The company’s net investment income for the quarter was $187 million, up from $173 million in the prior year, reflecting a strong performance in its investment activities despite the realized losses on securities. The company also reported a decrease in its allowance for expected credit losses on fixed maturity investments, which stood at $26 million as of March 31, 2026.

Strategically, AFG is focused on expanding its property and casualty insurance operations, with a notable increase in gross written premiums across its specialty lines. The company has also been active in managing its capital structure, repurchasing 466,097 shares of its common stock for $60 million during the first quarter. Looking ahead, AFG anticipates continued premium growth and strong underwriting results, bolstered by improved returns on alternative investments expected to positively impact net investment income in the latter half of 2026. The company remains committed to maintaining its strong financial position and capital levels to navigate potential market challenges.