Key Highlights

  • AFG's $0.97 regular dividend has an October 15, 2026 ex-dividend date and is payable October 23 to holders of record.
  • The board raised the regular annual dividend to $3.88 from $3.52, its twenty-first consecutive year of increases.
  • Second-quarter net earnings were $248 million, or $2.99 per share, and core net operating earnings were $2.82 per share.
  • The Specialty P&C combined ratio was 91.5%, and pretax P&C operating income reached a record second-quarter $350 million.

American Financial Group's (NYSE:AFG) $0.97 regular dividend yields 2.68% and sits beside second-quarter net earnings of $2.99 per share and core net operating earnings of $2.82 per share. On August 20, 2026 the company announced an increase in its regular annual dividend to $3.88 from $3.52, to be paid quarterly at $0.97 beginning in October 2026.

Dividend Program and Shareholder Returns

AFG declared a regular dividend of $0.97 per share, payable October 23, 2026 to holders of record on October 15. The August 20 release raised the regular annual dividend to $3.88 from $3.52, which the company described as its twenty-first consecutive year of dividend increases.

In the second quarter AFG paid cash dividends of $0.88 per share and repurchased $26 million of its common stock at an average price of $129.85 per share. The co-chief executive officers said returning capital through regular and special cash dividends and opportunistic share repurchases is an important component of AFG's capital management strategy.

About the Company

American Financial Group is an insurance holding company based in Cincinnati, Ohio. Through Great American Insurance Group, it is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. The flagship company's roots go back to 1872.

Financial Performance Behind the Payout

AFG reported second-quarter net earnings of $248 million, or $2.99 per share, versus $174 million, or $2.07. Net earnings included after-tax non-core gains of $14 million, or $0.17 per share.

Core net operating earnings, a non-GAAP measure, were $234 million, or $2.82 per share, versus $179 million, or $2.14. For the first half, core net operating earnings were $5.29 per share versus $3.96, and diluted net earnings were $5.28 per share versus $3.92.

Annualized return on equity was 20.3%, and core operating return on equity was 19.2%. Net written premiums grew 6%. Book value per share was $58.14 at June 30, and $59.85 excluding accumulated other comprehensive income.

Underwriting Results and the Charleston Harbor Sale

The Specialty P&C operations generated a 91.5% combined ratio, an improvement of 1.6 points from 93.1% in the second quarter of 2025, with catastrophe losses of 1.8 points versus 2.3 points. Underwriting profit was $144 million versus $114 million. By group, the Property and Transportation combined ratio was 90.3%, Specialty Casualty was 94.5% and Specialty Financial was 85.6%.

Property and casualty net investment income set a second-quarter record, up 23%, and the annualized return on alternative investments was approximately 7.1% versus 1.2% a year earlier. In April 2026 AFG reached definitive agreements to sell the Charleston Harbor Resort & Marina, with a third-quarter 2026 closing target and a pretax core operating gain of approximately $125 million.

Outlook

AFG did not provide numerical earnings guidance in its second-quarter release. The company reports average renewal pricing of approximately 5% excluding workers' compensation, and approximately 4% including workers' compensation.