American Financial Group Reports Record Q3 Core EPS & Declares $3.50 Special Dividend

Executive Summary

On November 4, 2026, American Financial Group, Inc. (NYSE: AFG) filed an 8-K under Items 2.02 (Results of Operations and Financial Condition) and 8.01 (Other Events) announcing its financial results for the third quarter ended September 30, 2026, alongside the declaration of a significant special dividend.

Key Highlights

1. Special Cash Dividend Declared (Item 8.01):

   • AFG's Board of Directors declared a special, one-time cash dividend of $3.50 per share of Common Stock.
   • Payable Date: November 25, 2026.
   • Record Date: November 16, 2026.

2. Third Quarter 2026 Financial Results:

   • Net Earnings: $282 million ($3.40 per share), compared to $215 million ($2.58 per share) in Q3 2025.
   • Core Net Operating Earnings: Record $329 million ($3.97 per share), up 48% from $224 million ($2.69 per share) in Q3 2025, driven by higher year-over-year net investment income.
   • P&C Pretax Core Operating Income: Record $406 million, compared to $328 million in Q3 2025.
   • Net Written Premium Growth: 9% growth in net written premiums.
   • Renewal Rate Increases: Overall average renewal rate increase of approximately 6% (excluding workers' compensation).
   • Annualized Return on Equity (ROE): 22.3% (excluding AOCI); annualized core operating ROE reached 26.0%.

3. Balance Sheet and Capital Allocation:

   • Book Value Per Share: $57.12 as of September 30, 2026 ($62.29 excluding AOCI).
   • Share Repurchases: Repurchased $26 million of common stock at an average price of $138.31 during the third quarter.
   • Regular Dividend: Paid regular quarterly cash dividends of $0.88 per share in Q3 2026.

Market and Trading Implications

The declaration of a $3.50 special dividend, combined with record core operating EPS ($3.97 vs. $2.69 year-over-year) and strong P&C operating performance, presents a constructive fundamental catalyst for AFG shareholders.