American Financial Q1 2025 Earnings Show Lower Profit, Capital Return Focus

American Financial Group (AFG) reported Q1 2025 net earnings of $154 million, or $1.84 per share, down from $242 million, or $2.89 per share, in the prior year. The decrease is linked to lower underwriting profits and reduced alternative investment returns. The Specialty Property and Casualty segment experienced a combined ratio of 94.0%, affected by catastrophe losses such as California wildfires, though it achieved a 7% renewal rate increase excluding workers’ compensation.

AFG returned approximately $292 million to shareholders via dividends and share repurchases, reflecting its ongoing capital return strategy. The company announced a pending sale of Charleston Harbor Resort & Marina, anticipated to close in Q3, potentially yielding a notable after-tax gain. Management focuses on maintaining underwriting discipline and premium growth amid economic uncertainty, banking on its diversified Specialty P&C portfolio for the full-year 2025 outlook.