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American Financial Group (AFG) FY2025 results: revenue $8.2 billion, down 1.8% on the year

American Financial Group Inc. (AFG) reported revenue of $8.2 billion for fiscal 2025, the year ended 31 December 2025, down 1.8% on the year before. Net income was $842 million, down 5.1%, and diluted earnings per share $10.08. The figures are the company's own, from the 10-K it filed with the SEC on 25 February 2026.

Revenue
$8.2 billion
-1.8% on the year
FY2018FY2025
Operating margin
13.1%
13.5% a year earlier
FY2018FY2025
Net income
$842 million
-5.1% on the year
FY2018FY2025
Diluted EPS
$10.08
-4.6% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 7 new, 2 kept.

  • Fourth quarter earnings and core earnings: Net earnings were $299 million ($3.58 per share), against $255 million ($3.03 per share) a year earlier. Core net operating earnings were $305 million ($3.65 per share), against $262 million ($3.12).
  • Underwriting profit reached $287 million: Specialty P&C underwriting profit was $287 million, up 41% from $204 million a year earlier. The release describes it as a record.
  • Crop insurance drove the group's gain: Crop results reflected record corn and soybean yields and favorable commodity pricing through the growing season.
  • Specialty Casualty profit fell: Underwriting profit was $27 million against $69 million. The group's combined ratio was 96.7%, 5.3 points above the prior-year 91.4%.
  • Alternative investment returns fell: Alternative investments returned 0.9% in the fourth quarter, against 4.9% in the prior-year quarter.
Read the Q4 FY2025 earnings call summary

From this 10-K

American Financial Group is an insurance holding company based in Cincinnati. Through Great American Insurance Group it writes property and casualty insurance, mostly specialized commercial cover for businesses. The members of Great American Insurance Group have been in business for over 150 years.

American Financial Group Inc., the 10-K for 2025

American Financial Group is an insurance holding company based in Cincinnati. Through Great American Insurance Group it writes property and casualty insurance, mostly specialized commercial cover for businesses. The members of Great American Insurance Group have been in business for over 150 years.

How the insurer is run

The insurance operations are made up of 36 insurance businesses, at December 31, 2025, each managed by specialists in particular lines of cover or groups of customers. Each one decides its own underwriting, claims and policy servicing, while investment and administrative support are run centrally and all of them report to a single senior executive. An in-house team of investment professionals manages the investment portfolio. The main insurance companies are Great American Insurance, National Interstate, Summit, Republic Indemnity and Mid-Continent Casualty, and the filing shows each of them rated A+ by A.M. Best.

What it insures

The business is grouped into three sub-segments. Property and transportation covers federally reinsured multi-peril crop insurance and crop-hail cover for farms, ranches and agribusiness nationwide, insurance for buses and trucks in the moving, storage and transportation industries, and property, inland marine and ocean marine cover for commercial buildings, builders' risk, contractors' equipment, cargo, boat dealers and marinas. Specialty casualty is the largest of the three. It includes excess and surplus cover for hard-to-place risks, liability cover for directors and officers and for errors and omissions, general liability for contractors, energy and environmental risks, cover for social service agencies, leisure and non-profit organizations, cyber, umbrella and excess liability, and workers' compensation. Specialty financial covers fidelity and surety, insurance programs for lending and leasing institutions, including lender-placed mortgage property insurance, and export and domestic trade credit insurance.

Sharing risk with customers

The company describes itself as an innovator in risk sharing and alternative risk transfer programs. Examples in the filing include risk sharing for passenger transportation, moving and storage and trucking businesses, agency and group programs, and workers' compensation options with higher retentions. The stated management philosophy is not to write business that is not expected to make an underwriting profit, even where that limits growth.

Where the business comes from

Sales go mainly through independent insurance agents and brokers, who are paid a commission on each policy, with small portions written through employee agents. The U.S.-based subsidiaries wrote approximately 98% of direct written premiums in 2025. By state, California was the largest at 12.1%, followed by Texas at 8.3%, Florida at 8.0%, Illinois at 5.7% and New York at 5.3%. Reinsurance is bought for two reasons: to offer higher limits of cover than the company would carry alone, and to reduce the effect of catastrophes.

People

At December 31, 2025 the company had approximately 8,500 employees, approximately 7,700 of them at Great American Insurance Group. None were covered by collective bargaining agreements. Average employee tenure is 10 years.

From American Financial Group's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 25 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue8,1748,3247,827-1.8%
Selling, general and administrative2,0592,0071,935+2.6%
Operating income1,0731,1241,073-4.5%
Operating margin13.1%13.5%13.7%
Interest expense80.076.076.0+5.3%
Income tax231237221-2.5%
Net income842887852-5.1%
Net margin10.3%10.7%10.9%
Diluted EPS$10.08$10.57$10.05-4.6%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow1,5331,1521,970+33.1%
Cash from investing-83595.0414
Cash from financing-377-1,066-2,031
Depreciation and amortisation86.081.078.0+6.2%
Share-based compensation18.018.018.00.0%
Buybacks99.00.0213
Dividends paid606788684-23.1%
Dividend per share$7.28$9.43$8.10-22.8%
Diluted shares, weighted84m84m85m-0.5%
Shares outstanding at period end83m84m84m-0.7%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity4,8204,4664,258+7.9%
Debt1,8201,4751,475+23.4%
Other liabilities26,00224,89524,054+4.4%
Total liabilities and equity32,64230,83629,787+5.9%
Goodwill327305305+7.2%
Intangible assets189203213-6.9%
Securities held for sale or to maturity11,05210,39810,377+6.3%
Cash and equivalents1,7271,4061,225+22.8%
Other assets19,34718,52417,667+4.4%
Total assets32,64230,83629,787+5.9%

10-K for the year ended 31 December 2025, filed 25 February 2026: the filing.