Property and casualty insurers posted a solid second quarter. Sector revenue came in 2.3% above Wall Street’s estimates, while guidance for the next quarter was 0.9% ahead of expectations. Still, the group’s shares dropped 7.9% on average after earnings as investors worried about weaker pricing, higher claims costs, and catastrophe losses.
American Financial Group (AFG) held up better than much of the group. Its second-quarter revenue rose 5.3% to $1.90 billion, matching estimates, while earnings beat expectations despite a miss on net premiums earned. The company also returned nearly $100 million to shareholders during the quarter through regular dividends and $26 million in stock repurchases.
