American Financial Group Reports Strong Q4 2025 Earnings with Record Underwriting Profit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy AFG?
Source: Businesswire
- Net Earnings Growth: In Q4 2025, net earnings reached $299 million ($3.58 per share), a 17.3% increase from $255 million ($3.03 per share) in Q4 2024, demonstrating significant improvement in profitability despite challenges from non-core losses.
- Core Operating Earnings Rise: Core net operating earnings were $305 million ($3.65 per share), reflecting a 16.4% year-over-year increase, driven by record underwriting profits, although lower returns from alternative investments impacted overall earnings.
- Special Cash Dividend Announced: The company declared a special cash dividend of $1.50 per share payable on February 25, 2026, totaling approximately $125 million, which not only rewards shareholders but also showcases the company's robust capital management capabilities.
- Capital Management Strategy: In 2025, AFG returned over $700 million to shareholders through buybacks and dividends, reinforcing its strategic commitment to pursuing healthy, profitable organic growth and acquisition opportunities.
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Analyst Views on AFG
Wall Street analysts forecast AFG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AFG is 137.50 USD with a low forecast of 136.00 USD and a high forecast of 139.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 129.680
Low
136.00
Averages
137.50
High
139.00
Current: 129.680
Low
136.00
Averages
137.50
High
139.00
About AFG
American Financial Group, Inc. is an insurance holding company. Through the operations of Great American Insurance Group, the Company is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. The Company’s segments include property and casualty insurance and Other. The property and casualty insurance business includes specialty sub-segments: property and transportation, which includes physical damage and liability coverage for buses and trucks and other specialty transportation niches, inland and ocean marine, agricultural-related products and other commercial property coverage; specialty casualty, which includes primarily excess and surplus, executive and professional liability, general liability, umbrella and excess liability, and specialty financial, which includes risk management insurance programs for lending and leasing institutions, fidelity and surety products and trade credit insurance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
American Financial Group Reports Strong Q4 2025 Earnings with Record Underwriting Profit
- Net Earnings Growth: In Q4 2025, net earnings reached $299 million ($3.58 per share), a 17.3% increase from $255 million ($3.03 per share) in Q4 2024, demonstrating significant improvement in profitability despite challenges from non-core losses.
- Core Operating Earnings Rise: Core net operating earnings were $305 million ($3.65 per share), reflecting a 16.4% year-over-year increase, driven by record underwriting profits, although lower returns from alternative investments impacted overall earnings.
- Special Cash Dividend Announced: The company declared a special cash dividend of $1.50 per share payable on February 25, 2026, totaling approximately $125 million, which not only rewards shareholders but also showcases the company's robust capital management capabilities.
- Capital Management Strategy: In 2025, AFG returned over $700 million to shareholders through buybacks and dividends, reinforcing its strategic commitment to pursuing healthy, profitable organic growth and acquisition opportunities.
See More
American Financial Group Reports Strong Q4 Earnings Beat
- Earnings Beat: American Financial Group (AFG) reported a Q4 non-GAAP EPS of $3.65, surpassing expectations by $0.34, indicating strong profitability and boosting investor confidence.
- Revenue Performance: Revenue declined 4.2% year-over-year to $2.06 billion but exceeded forecasts by $230 million, demonstrating the company's resilience in maintaining revenue streams amid challenging conditions.
- Record Underwriting Profit: The underwriting profit for Q4 increased by 41% year-over-year, setting a new quarterly record, showcasing the company's success in risk management and underwriting strategies, thereby strengthening its competitive position in the insurance sector.
- Investor Sentiment: Despite the strong performance, market sentiment regarding AFG's long-term investment value remains cautious, particularly with its baby bonds yielding over 7%, prompting investors to closely monitor future market developments.
See More
American Financial Group Reports Strong Q4 2025 Earnings Highlights
- Net Earnings Growth: In Q4 2025, American Financial Group reported net earnings of $299 million ($3.58 per share), a 17.3% increase from $255 million ($3.03 per share) in Q4 2024, indicating a significant enhancement in profitability and reflecting strong performance in the insurance market.
- Core Operating Earnings Increase: The core net operating earnings for Q4 2025 were $305 million ($3.65 per share), up 17.0% from $262 million ($3.12 per share) in Q4 2024, demonstrating the company's record underwriting profits despite lower returns from alternative investments.
- Capital Return Strategy: The company returned $707 million to shareholders in 2025, including $334 million in special dividends ($4.00 per share) and $99 million in share repurchases, showcasing effective capital management and commitment to shareholder value.
- Special Dividend Announcement: The Board declared a special dividend of $1.50 per share, payable on February 25, 2026, totaling approximately $125 million, which further boosts investor confidence in the company's future growth while reflecting strong cash flow and profitability.
See More
American Financial Group Set to Release Q4 Earnings
- Earnings Announcement Date: American Financial Group (AFG) is set to announce its Q4 2023 earnings on February 3rd after market close, with consensus EPS estimate at $3.31, reflecting a 6.1% year-over-year increase, while revenue is expected to be $1.83 billion, down 14.9% year-over-year.
- Historical Performance Review: Over the past two years, AFG has beaten EPS estimates 50% of the time and has achieved a 100% success rate in beating revenue estimates, indicating a strong track record in revenue management.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen two upward revisions and two downward revisions, while revenue estimates have not seen any upward revisions and have experienced two downward adjustments, reflecting market caution regarding the company's future performance.
- Investor Focus: Despite facing short-term challenges, AFG's anticipated premium growth rebound in 2026 and the momentum in its specialty businesses may present potential value opportunities for long-term investors.
See More
Analysis of High Insider Ownership Growth Companies in Australia
- Market Resilience: The Australian market shows signs of resilience following a recent sell-off, prompting investors to seek potential opportunities, particularly in growth companies with high insider ownership, indicating strong confidence from insiders and promising earnings potential.
- High Insider Ownership Companies: In Australia, companies like Wisr (ASX:WZR) and Titomic (ASX:TTT) have insider ownership of 10.2% and 14.8%, respectively, with projected earnings growth rates of 96.3% and 74.9%, showcasing strong market performance and investment appeal.
- Australian Finance Group Outlook: Australian Finance Group (ASX:AFG) is expected to grow earnings at 18.1% annually, surpassing the market average of 12.4%, although its weak debt coverage raises concerns; nonetheless, it suggests potential for stock price appreciation, attracting investor interest.
- Chrysos Corporation Confidence: Chrysos (ASX:C79) has seen substantial insider buying in the past three months, with an expected annual earnings growth of 65% and reaffirmed fiscal 2026 revenue guidance, indicating a strong growth trajectory despite limited cash runway.
See More
American Financial Group to Attend BofA Conference
- Executives at Conference: Co-CEOs Carl H. Lindner III and S. Craig Lindner, along with CFO Brian S. Hertzman, will participate in the BofA Securities 2026 Financial Services Conference on February 10, 2026, where, despite no formal company presentation, several investor meetings will be held.
- Investor Materials Release: AFG will post a link to the investor materials used in the meetings on its Investor Relations page just prior to the conference, ensuring attendees can access relevant information in advance, thereby enhancing investor engagement and transparency.
- Company Background: American Financial Group is an insurance holding company based in Cincinnati, Ohio, primarily engaged in property and casualty insurance through Great American Insurance Group, focusing on specialized commercial products for businesses, showcasing its deep roots in the insurance industry.
- Long-standing History: Great American Insurance Group's origins date back to 1872 with the founding of its flagship company, Great American Insurance Company, reflecting the company's long-term stability and market influence in the insurance sector.
See More
American Financial Group Reports Strong Q4 2025 Earnings with Record Underwriting Profit
- Net Earnings Growth: In Q4 2025, net earnings reached $299 million ($3.58 per share), a 17.3% increase from $255 million ($3.03 per share) in Q4 2024, demonstrating significant improvement in profitability despite challenges from non-core losses.
- Core Operating Earnings Rise: Core net operating earnings were $305 million ($3.65 per share), reflecting a 16.4% year-over-year increase, driven by record underwriting profits, although lower returns from alternative investments impacted overall earnings.
- Special Cash Dividend Announced: The company declared a special cash dividend of $1.50 per share payable on February 25, 2026, totaling approximately $125 million, which not only rewards shareholders but also showcases the company's robust capital management capabilities.
- Capital Management Strategy: In 2025, AFG returned over $700 million to shareholders through buybacks and dividends, reinforcing its strategic commitment to pursuing healthy, profitable organic growth and acquisition opportunities.
See More
American Financial Group Reports Strong Q4 Earnings Beat
- Earnings Beat: American Financial Group (AFG) reported a Q4 non-GAAP EPS of $3.65, surpassing expectations by $0.34, indicating strong profitability and boosting investor confidence.
- Revenue Performance: Revenue declined 4.2% year-over-year to $2.06 billion but exceeded forecasts by $230 million, demonstrating the company's resilience in maintaining revenue streams amid challenging conditions.
- Record Underwriting Profit: The underwriting profit for Q4 increased by 41% year-over-year, setting a new quarterly record, showcasing the company's success in risk management and underwriting strategies, thereby strengthening its competitive position in the insurance sector.
- Investor Sentiment: Despite the strong performance, market sentiment regarding AFG's long-term investment value remains cautious, particularly with its baby bonds yielding over 7%, prompting investors to closely monitor future market developments.
See More
American Financial Group Reports Strong Q4 2025 Earnings Highlights
- Net Earnings Growth: In Q4 2025, American Financial Group reported net earnings of $299 million ($3.58 per share), a 17.3% increase from $255 million ($3.03 per share) in Q4 2024, indicating a significant enhancement in profitability and reflecting strong performance in the insurance market.
- Core Operating Earnings Increase: The core net operating earnings for Q4 2025 were $305 million ($3.65 per share), up 17.0% from $262 million ($3.12 per share) in Q4 2024, demonstrating the company's record underwriting profits despite lower returns from alternative investments.
- Capital Return Strategy: The company returned $707 million to shareholders in 2025, including $334 million in special dividends ($4.00 per share) and $99 million in share repurchases, showcasing effective capital management and commitment to shareholder value.
- Special Dividend Announcement: The Board declared a special dividend of $1.50 per share, payable on February 25, 2026, totaling approximately $125 million, which further boosts investor confidence in the company's future growth while reflecting strong cash flow and profitability.
See More
American Financial Group Set to Release Q4 Earnings
- Earnings Announcement Date: American Financial Group (AFG) is set to announce its Q4 2023 earnings on February 3rd after market close, with consensus EPS estimate at $3.31, reflecting a 6.1% year-over-year increase, while revenue is expected to be $1.83 billion, down 14.9% year-over-year.
- Historical Performance Review: Over the past two years, AFG has beaten EPS estimates 50% of the time and has achieved a 100% success rate in beating revenue estimates, indicating a strong track record in revenue management.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen two upward revisions and two downward revisions, while revenue estimates have not seen any upward revisions and have experienced two downward adjustments, reflecting market caution regarding the company's future performance.
- Investor Focus: Despite facing short-term challenges, AFG's anticipated premium growth rebound in 2026 and the momentum in its specialty businesses may present potential value opportunities for long-term investors.
See More
Analysis of High Insider Ownership Growth Companies in Australia
- Market Resilience: The Australian market shows signs of resilience following a recent sell-off, prompting investors to seek potential opportunities, particularly in growth companies with high insider ownership, indicating strong confidence from insiders and promising earnings potential.
- High Insider Ownership Companies: In Australia, companies like Wisr (ASX:WZR) and Titomic (ASX:TTT) have insider ownership of 10.2% and 14.8%, respectively, with projected earnings growth rates of 96.3% and 74.9%, showcasing strong market performance and investment appeal.
- Australian Finance Group Outlook: Australian Finance Group (ASX:AFG) is expected to grow earnings at 18.1% annually, surpassing the market average of 12.4%, although its weak debt coverage raises concerns; nonetheless, it suggests potential for stock price appreciation, attracting investor interest.
- Chrysos Corporation Confidence: Chrysos (ASX:C79) has seen substantial insider buying in the past three months, with an expected annual earnings growth of 65% and reaffirmed fiscal 2026 revenue guidance, indicating a strong growth trajectory despite limited cash runway.
See More
American Financial Group to Attend BofA Conference
- Executives at Conference: Co-CEOs Carl H. Lindner III and S. Craig Lindner, along with CFO Brian S. Hertzman, will participate in the BofA Securities 2026 Financial Services Conference on February 10, 2026, where, despite no formal company presentation, several investor meetings will be held.
- Investor Materials Release: AFG will post a link to the investor materials used in the meetings on its Investor Relations page just prior to the conference, ensuring attendees can access relevant information in advance, thereby enhancing investor engagement and transparency.
- Company Background: American Financial Group is an insurance holding company based in Cincinnati, Ohio, primarily engaged in property and casualty insurance through Great American Insurance Group, focusing on specialized commercial products for businesses, showcasing its deep roots in the insurance industry.
- Long-standing History: Great American Insurance Group's origins date back to 1872 with the founding of its flagship company, Great American Insurance Company, reflecting the company's long-term stability and market influence in the insurance sector.
See More
