Overview

* American Financial ( AFG ) Q2 revenue beats analyst expectations, per LSEG data

* Adjusted pretax profit for Q2 missed analyst estimates, per LSEG data

* Co returned $107 mln to shareholders, including $39 mln in share repurchases

Outlook

* AFG expects premium growth for full year 2025

* Company plans to deploy capital for organic growth and acquisitions

* AFG sees favorable pricing environment continuing

Result Drivers

* UNDERWRITING PROFIT - Lower underwriting profit impacted core net operating earnings, driven by reduced profitability in Specialty Casualty and Property & Transportation Groups

* INVESTMENT RETURNS - Muted returns from alternative investments affected overall earnings, with annualized return on alternative investments at 1.2% compared to 5.1% in prior year

* PREMIUM GROWTH - Specialty P&C insurance operations saw premium growth due to new business opportunities and favorable renewal rates

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.92 $1.77

Revenue bln bln (4

Analysts

)

Q2 EPS $2.07

Q2 Net $174 mln

Income

Q2 Miss $227 mln $232 mln

Adjusted (3

Pretax Analysts

Profit )

Q2 $48 mln

Adjusted

EBIT

Q2 $229 mln

Pretax

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the property & casualty insurance peer group is "buy."

* Wall Street's median 12-month price target for American Financial Group Inc ( AFG ) is $127.00, about 2.1% above its August 5 closing price of $124.32

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)