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AFG

American Financial Group, Inc.

AFG

American Financial Group, Inc. • NYSE
$137.72 ▲ 0.34% (+0.46)
Market Cap $11.49 B
52w High $150.02
52w Low $114.73
Dividend Yield 5.28%
P/E 14.45
Volume 208.59K
Outstanding Shares 83.40M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $2.304B ▲ $91M ▼ $215M ▲ 9.332% ▲ $2.57 ▲ $307M ▲
Q2-2025 $1.93B ▲ $100M ▲ $174M ▲ 9.016% ▲ $2.08 ▲ $270M ▲
Q1-2025 $1.843B ▼ $83M ▼ $154M ▼ 8.356% ▼ $1.84 ▼ $238M ▼
Q4-2024 $2.148B ▼ $96M ▼ $255M ▲ 11.872% ▲ $3.04 ▲ $360M ▲
Q3-2024 $2.363B $101M $181M 7.66% $2.16 $269M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $2.593B ▲ $33.834B ▲ $29.104B ▲ $4.73B ▲
Q2-2025 $2.003B ▲ $30.669B ▲ $26.153B ▲ $4.516B ▲
Q1-2025 $1.976B ▲ $30.294B ▼ $25.902B ▼ $4.392B ▼
Q4-2024 $1.946B ▲ $30.836B ▼ $26.37B ▼ $4.466B ▼
Q3-2024 $1.771B $32.591B $27.883B $4.708B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $215M ▲ $216M ▲ $-130M ▼ $488M ▲ $574M ▲ $216M ▲
Q2-2025 $174M ▲ $191M ▼ $36M ▲ $-235M ▲ $-8M ▲ $191M ▼
Q1-2025 $154M ▼ $342M ▼ $23M ▲ $-495M ▲ $-130M ▼ $342M ▼
Q4-2024 $255M ▲ $674M ▲ $-21M ▼ $-569M ▼ $84M ▼ $674M ▲
Q3-2024 $181M $459M $122M $-380M $201M $530M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Corporate and Other
Corporate and Other
 $110.00M ▲$100.00M ▼$100.00M ▲$90.00M ▼
Property and Casualty Insurance
Property and Casualty Insurance
 $2.05Bn ▲$1.75Bn ▼$1.83Bn ▲$2.22Bn ▲

Five-Year Company Overview

Income Statement

Income Statement AFG’s income statement shows a business that has grown steadily and become more profitable and predictable over time, with one unusually strong year standing out. Revenue has climbed consistently over the past five years, reflecting healthy premium growth in its specialty insurance lines. Operating profit and cash-style earnings have generally trended upward since the pandemic period, suggesting better underwriting discipline and cost control. Net income and earnings per share, however, show a sharp spike a few years ago that looks like it was driven by one-off items or a major transaction, then settled back to more normal, but still strong, levels. The underlying pattern points to a mature, profitable insurer that prioritizes consistent underwriting results rather than rapid, volatile expansion.

Balance Sheet

Balance Sheet AFG’s balance sheet looks conservative for an insurer and has become more streamlined. Total assets dipped meaningfully earlier in the period and then grew modestly, which likely reflects business divestitures or portfolio repositioning rather than financial stress. Cash balances are reasonably healthy, and debt has edged down over time, leaving the company with moderate leverage. Shareholders’ equity declined from earlier highs but has been gradually rebuilding, which is consistent with a company returning a lot of capital to shareholders while still generating strong profits. Overall, the balance sheet suggests a disciplined capital structure with room to navigate insurance cycles and investment market swings.

Cash Flow

Cash Flow AFG’s cash flows are a key strength. Operating cash flow has been solid in most years, tracking well with its earnings and indicating that profits are backed by real cash, not accounting noise. Free cash flow is consistently strong because the business is not capital-intensive; it requires very modest spending on physical assets. This gives AFG flexibility to fund dividends, buybacks, acquisitions, or balance sheet strengthening without straining its finances. The main watchpoint is that cash generation can still fluctuate with claims experience and financial markets, as is typical in insurance, but the overall pattern is of a cash-rich, cash-efficient business model.

Competitive Edge

Competitive Edge AFG occupies a differentiated position in the insurance world by focusing on specialty property and casualty markets rather than broad, commoditized lines. It targets niche areas such as equine, transportation, crop, executive liability, and specialized commercial equipment, where deep expertise and tailored products matter more than sheer size. The group is organized in a decentralized way, with many autonomous business units run by experienced managers who understand their niche customers and can move quickly. This structure supports disciplined underwriting—AFG tends to prioritize profitability over chasing market share. Together, specialization, local decision-making, and a strong underwriting culture create a meaningful competitive moat, though the company still faces the usual industry risks from pricing cycles, competition, and catastrophe events.

Innovation and R&D

Innovation and R&D AFG stands out among traditional insurers for its focused use of technology and data. The acquisition of Verikai brought in advanced AI and machine learning tools that help refine risk selection, especially in medical stop-loss and employer health solutions. The company is also pushing into embedded insurance, integrating its products directly into customers’ sales and operating systems using APIs and Salesforce components—making coverage easier to buy at the point of need. Digital platforms like GreatAg, pomi, and PolicySweet show a clear strategy: use portals and automation to simplify quoting, binding, and claims, especially for agents and small businesses. Future innovation is likely to center on expanding AI-driven underwriting across more lines, deepening embedded insurance partnerships, and selectively acquiring specialized MGUs and tech-driven platforms. The upside is better risk selection and growth in new channels, while the risks include integration challenges and the need to keep pace with rapidly evolving insurtech competitors.

Summary

AFG looks like a disciplined specialty insurer with a clear strategy and solid financial underpinnings. The income statement tells a story of steadily rising revenue and improved underlying profitability, with one outlier year likely tied to exceptional items. The balance sheet is conservatively managed, with moderate leverage and rebuilding equity, supporting resilience through insurance cycles. Cash flow is a standout strength, reflecting an asset-light, cash-generative model. Competitively, AFG benefits from its focus on niche P&C markets, decentralized structure, and strong underwriting culture, which together form a credible moat. Its targeted investments in AI, embedded insurance, and digital distribution suggest a thoughtful, not hype-driven, approach to innovation. Key uncertainties to watch include industry pricing cycles, catastrophe exposure, and execution risks around technology and acquisitions, but overall the company presents as a specialized, cash-strong insurer aiming for profitable, not just rapid, growth.

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