AFG slides as Q1 securities losses and softer alternative returns cloud results
AFG•American Financial Group shares fell after its April 29, 2026 Q1 earnings update showed $15 million of after-tax non-core net realized losses on securities and weaker alternative investment results, offsetting improved underwriting. Investors also digested a lower quarter-end book value per share versus year-end 2025 despite higher quarterly core operating earnings.
1. What’s moving the stock today
American Financial Group (AFG) is trading lower as the market reacts to its first-quarter 2026 results released April 29, 2026, where non-core net realized losses on securities and weaker alternative investment performance weighed on sentiment even as underwriting improved. The move comes as investors focus on the quality of earnings and balance-sheet momentum, with book value per share down from year-end levels.
2. Key numbers investors are reacting to
AFG reported Q1 2026 net earnings of $191 million ($2.29 per share) and core net operating earnings of $206 million ($2.47 per share). Results included $15 million of after-tax non-core net realized losses on securities, including fair-value adjustments on equity securities still held at March 31, 2026; AFG also flagged that improved P&C underwriting profit was partly offset by lower returns in its alternative investment portfolio. Book value per share was $56.30 at March 31, 2026 versus $57.78 at December 31, 2025 (excluding AOCI: $57.83 vs $58.38).
3. Extra catalyst: real-estate asset sale in progress
AFG also disclosed it reached definitive agreements in April 2026 to sell the Charleston Harbor Resort & Marina, expecting an approximately $125 million pretax core operating gain, with closing targeted for the second or third quarter of 2026. While this potential gain is positive, it appears not to be the primary driver of today’s selloff, which is centered on the quarter’s mark-to-market and alternative investment headwinds.
