Great American Insurance Affirms A+ Rating, Demonstrates Strong Financial Strength
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2025
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Source: Newsfilter
- Rating Affirmation: AM Best has affirmed Great American Insurance Company and its affiliates' Financial Strength Rating at A+ (Superior), reflecting their strong balance sheet and stable operating performance, which is expected to enhance market confidence and attract more investor interest.
- Capital Adequacy: Great American's risk-adjusted capitalization is assessed as very strong, indicating its competitive position and resilience against market fluctuations, enabling it to maintain stable profitability.
- Shareholder Return Strategy: Despite a high dividend payout ratio, Great American's consistent profitability and strong investment income will support its capital management strategy, ensuring future growth potential.
- Market Leadership: Great American ranks as the second-largest workers' compensation provider in Florida, demonstrating its strong competitive position in specific geographic areas while also facing potential regulatory risks.
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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: 128.810
Low
136.00
Averages
137.50
High
139.00
Current: 128.810
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 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.
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