American Financial

AFG’s capital allocation has been exemplary. The 2021 divestiture of the annuity business to MassMutual crystallized value and sharpened the P&C focus, followed by substantial special dividends. In 2025, AFG returned ~$707 million (regular dividends, $4.00 per-share specials, and ~$99 million of buybacks).

In Q1 2026 it paid a $1.50 special dividend and repurchased ~$60 million of stock; in Q2 2026 it repurchased ~$26 million more. The pending sale of the Charleston Harbor Resort & Marina is expected to generate a core pretax gain of roughly $125 million, further recycling capital from non-core real estate into insurance.

Management emphasizes underwriting reinvestment first, then flexible returns via specials and buybacks, with minimal dilution and conservative M&A.