American Financial Group terminates sale of Charleston Harbor resort

Published 10/06/2025, 22:18
American Financial Group terminates sale of Charleston Harbor resort

CINCINNATI - American Financial Group, Inc. (NYSE:AFG) announced Tuesday that agreements to sell its Charleston Harbor Resort & Marina property in South Carolina have been terminated. The deals, which were set to divest the hotel assets and marina at the premier resort property, were called off on June 6, according to a company press release.

The Cincinnati-based insurance holding company stated it "will continue to evaluate strategic alternatives for the property," which includes two full-service hotels, a 459-slip marina, a restaurant, retail store and other resort amenities. The company maintains strong liquidity with a current ratio of 2.08, indicating ample resources to manage its assets effectively.

AFG initially acquired the Charleston property in 2002 and has made significant improvements since then, including the construction of The Beach Club, described as a luxury waterfront resort.

The company did not disclose reasons for the termination of the sale agreements or identify the prospective buyers in its statement.

Charleston Harbor Resort & Marina represents a non-core asset for American Financial Group, whose primary business operations focus on specialized commercial property and casualty insurance through its Great American Insurance Group subsidiary.

The company’s insurance operations trace back to 1872 with the founding of Great American Insurance Company, according to the press release.

In other recent news, American Financial Group Inc. reported its first-quarter 2025 earnings, revealing a miss on earnings per share (EPS) expectations despite surpassing revenue forecasts. The company posted an EPS of $1.81, falling short of the anticipated $2.09, while revenue reached $1.86 billion, exceeding the forecasted $1.7 billion. This discrepancy highlights a strong revenue performance in certain business segments, despite the EPS miss. Additionally, American Financial Group anticipates a $100 million after-tax gain from the sale of Charleston Harbor Resort, which could positively impact future financial results.

The company continues to focus on its specialty insurance lines, investing in software and IT to enhance customer experience and data analytics. Despite the earnings miss, American Financial Group returned over $290 million to shareholders through dividends and share repurchases. The company has also reported a 2.5% growth in book value per share, excluding accumulated other comprehensive income. Looking ahead, the company expects positive premium growth for the full year 2025, although there may be pressure on alternative investment returns.

Analysts have noted potential challenges for American Financial Group, including economic uncertainty and competitive pressures in specific insurance lines. The firm’s original EPS guidance of $10.50 might be impacted by market volatility. Despite these challenges, the company remains optimistic about its long-term prospects, emphasizing its resilience and strategic opportunities during uncertain times.

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