American Financial Group Inc
NYSE:AFG
American Financial Group Inc
American Financial Group Inc., a steadfast entity in the insurance and financial services arena, is synonymous with strategic growth and adept market maneuvering. Originating from humble beginnings in the mid-20th century, the company established its roots under the adept stewardship of the Lindner family, evolving into a formidable presence in the specialty insurance market. Headquartered in Cincinnati, Ohio, American Financial Group (AFG) honed its expertise in niche insurance products that cater to unique and often underserved market segments. Its operational ethos revolves around underwriting discipline and niche specialization, with a strong emphasis on property and casualty insurance, bolstered by its reputable Great American Insurance Group.
AFG's financial architecture thrives on its dual-engine approach: specialty property and casualty insurance, and annuities. Through its subsidiaries, it meticulously crafts offerings that cover highly specific risks, from agriculture to transportation, enabling it to command superior pricing power. This specialization not only shields the company from the headwinds facing broader insurance lines but also allows it to maintain a healthy combined ratio, a crucial metric for profitability in the insurance business. Meanwhile, the annuity segment complements its offerings, catering to retirement planning needs, thereby diversifying revenue streams and stabilizing cash flow. By steadily optimizing its capital structure and prudently investing premium float, American Financial Group secures its position as a financially robust and agile player, adeptly navigating the evolving landscape of the insurance industry.
American Financial Group Inc., a steadfast entity in the insurance and financial services arena, is synonymous with strategic growth and adept market maneuvering. Originating from humble beginnings in the mid-20th century, the company established its roots under the adept stewardship of the Lindner family, evolving into a formidable presence in the specialty insurance market. Headquartered in Cincinnati, Ohio, American Financial Group (AFG) honed its expertise in niche insurance products that cater to unique and often underserved market segments. Its operational ethos revolves around underwriting discipline and niche specialization, with a strong emphasis on property and casualty insurance, bolstered by its reputable Great American Insurance Group.
AFG's financial architecture thrives on its dual-engine approach: specialty property and casualty insurance, and annuities. Through its subsidiaries, it meticulously crafts offerings that cover highly specific risks, from agriculture to transportation, enabling it to command superior pricing power. This specialization not only shields the company from the headwinds facing broader insurance lines but also allows it to maintain a healthy combined ratio, a crucial metric for profitability in the insurance business. Meanwhile, the annuity segment complements its offerings, catering to retirement planning needs, thereby diversifying revenue streams and stabilizing cash flow. By steadily optimizing its capital structure and prudently investing premium float, American Financial Group secures its position as a financially robust and agile player, adeptly navigating the evolving landscape of the insurance industry.
Strong Finish: AFG delivered a record-setting fourth quarter and a robust full year 2025, highlighted by strong specialty insurance performance and investment returns.
Core EPS: Core net operating earnings were $3.65 per share for Q4 and $10.29 per share for the full year, with a core operating ROE of 18.2% for 2025.
Capital Returns: Over $700 million was returned to shareholders in 2025, through dividends and share repurchases, and a special dividend of $1.50 per share was declared for early 2026.
Record Underwriting: Q4 underwriting profit set a company record, led by strong crop insurance results and an improved combined ratio of 84.1%.
Guidance & Outlook: For 2026, AFG anticipates 3–5% net written premium growth, a combined ratio of 92.5%, and approximately $11 in core EPS.
Investment Portfolio: The $17.2 billion investment portfolio saw lower returns from alternatives, but management expects a recovery, especially in multifamily real estate.
Disciplined Approach: Management remains cautious on loss reserves, especially in social inflation and California workers' comp, and continues to prioritize profitability over growth where necessary.
