American Financial Group, Inc. has reported its fourth-quarter and full-year 2025 results, including a special dividend declaration. The company's fourth-quarter net earnings per share stood at $3.58, compared to $3.03 in the same period in 2024, while full-year net earnings per share were $10.08, down from $10.57 in 2024. Core net operating earnings per share for the fourth quarter and full year 2025 were $3.65 and $10.29, respectively, marking an increase from $3.12 and $10.75 in the corresponding periods of 2024.
The fourth quarter saw a 41% year-over-year increase in underwriting profit, setting a new quarterly record. The company's return on equity (ROE) for the full year 2025 was 17.8%, compared to 19.0% in 2024. Total capital returned to shareholders in 2025 amounted to $707 million, which included $334 million in special dividends and $99 million in share repurchases.
American Financial Group's book value per share was $57.78 at the end of 2025, with cash dividends of $2.88 per share paid during the fourth quarter and growth in book value per share plus dividends reaching 6.9% and 22.3% for the three and twelve months ended December 31, 2025, respectively.
The company's board of directors declared a special cash dividend of $1.50 per share, payable on February 25, 2026. Since the start of 2021, the company has declared $55.50 per share in special dividends. Additionally, the company's co-chief executive officers stated that although the company does not provide earnings guidance, performance in line with the assumptions underlying its 2026 business plan would result in 2026 core operating earnings per share of approximately $11.00 and generate a core operating return on equity (ROE) excluding accumulated other comprehensive income (AOCI) of around 18%.
In terms of its insurance operations, the specialty property and casualty insurance operations reported an outstanding 84.1% combined ratio in the fourth quarter of 2025, representing a 4.9 point improvement from the prior year quarter. The property and transportation group achieved an exceptional 70.6% calendar year combined ratio, while the specialty casualty group reported a 96.7% calendar year combined ratio. The specialty financial group reported a combined ratio of 83.0% for the fourth quarter of 2025.
As a result of these announcements, the company's shares have moved -0.64% on the market, and are now trading at a price of $131.06. For more information, read the company's full 8-K submission here.
