American Financial ( (AFG) ) has released its Q1 earnings. Here is a breakdown of the information American Financial presented to its investors.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
American Financial Group, Inc. (AFG) is a Cincinnati-based insurance holding company primarily engaged in property and casualty insurance through its Great American Insurance Group, focusing on specialized commercial products for businesses.
In its first quarter earnings report for 2025, AFG announced net earnings of $154 million, or $1.84 per share, a decrease from the previous year’s $242 million, or $2.89 per share. The company highlighted a return on equity of 13.3% and capital returns to shareholders totaling approximately $292 million through dividends and share repurchases.
Key financial metrics revealed a decline in core net operating earnings to $152 million from $231 million year-over-year, attributed to lower underwriting profit and reduced returns from alternative investments. The Specialty Property and Casualty Insurance operations reported a combined ratio of 94.0%, impacted by increased catastrophe losses, particularly from California wildfires. Despite these challenges, the company achieved a 7% renewal rate increase in its P&C Group, excluding workers’ compensation.
AFG’s management remains optimistic about future growth, emphasizing their strategy of returning capital to shareholders and investing in core businesses for profitable growth. The company also announced a pending sale of the Charleston Harbor Resort & Marina, expected to close in the third quarter, which could result in a significant after-tax gain.
Looking ahead, AFG’s management is focused on maintaining underwriting discipline and capitalizing on new business opportunities while navigating economic volatility and competitive market conditions. The company aims to achieve premium growth for the full year 2025, leveraging its diversified Specialty P&C portfolio.