Description

American Financial Group’s $125 Million Charleston Harbor Gain Could Lift Investment Income Further!

American Financial Group reported its second quarter 2026 results with a 32% increase in core net operating earnings per share to $2.82, driven by strong underwriting margins, premium growth, and higher net investment income. The company recorded an annualized core operating return on equity of 19.2%. Its $17.1 billion investment portfolio benefited from a 23% year-over-year increase in net investment income, boosted by improved alternative investment returns, which generated an annualized return of approximately 7.1% for the quarter compared to 1.2% in the prior year. The fixed maturity portfolio yields remain favorable at about 5.5%, with a duration of 3.1 years. A notable event includes the pending sale of the Charleston Harbor Resort & Marina, expected to yield a pre-tax gain of approximately $125 million or $1.20 per share, recognized in net investment income. The Specialty Property and Casualty (P&C) insurance operations produced a combined ratio of 91.