Special Dividend Shines as American Financial Group Postpones No Growth Calculations

American Financial Group closed 2025 on a high note, delivering a robust fourth quarter and announcing a one-time payout for shareholders. Alongside this dividend, the insurer’s earnings trajectory remains supportive, and management laid out a cautious but positive outlook for 2026.

Key figures at a glance:
- Special dividend: 1,50 USD per share
- Payout date: 25. Februar
- Record date: 16. Februar (kommender Montag)
- Operating earnings 2025: 10,29 USD per share
- Outlook 2026: target around 11,00 USD per share

Strong operational momentum
The final quarter proved particularly fruitful for the group. The operating core earnings per share for Q4 stood at 3,65 USD, substantially beating market expectations. For the full year 2025, the company reported operating earnings per share of 10,29 USD.

Fueled by this earnings strength, the board approved a special dividend of 1,50 USD per share, payable to investors holding the stock on the record date. In addition to the special distribution, the company complemented regular quarterly dividends with stock repurchases, resulting in a total return to shareholders exceeding 700 million USD during the year.

Record earnings in the core insurance business
A primary driver of the results was the property and casualty insurance operations. The underwriting gains in specialty lines climbed 41% versus the prior-year period, marking a new quarterly high. The underwriting discipline is underscored by a combined ratio of 84,1 %. The company also reported an attractive return on equity of 18,2 %.

Outlook for 2026
Management remains optimistic about the coming year. The target for operating core earnings per share is approximately 11,00 USD. Net premiums are expected to rise by 3% to 5%. The anticipated combined ratio is 92,5 %, indicating profitability remains a central objective even amid potential market volatility. The next key date for shareholders remains the February 25 dividend payment.

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