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Business Wire
06-05-2025
- Business
- Business Wire
American Financial Group, Inc. Announces First Quarter Results
CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) today reported 2025 first quarter net earnings of $154 million ($1.84 per share) compared to $242 million ($2.89 per share) for the 2024 first quarter. Net earnings included after-tax non-core net realized gains on securities of $2 million ($0.03 per share) in the 2025 first quarter and $11 million ($0.13 per share) in the 2024 first quarter. Annualized return on equity was 13.3% and 21.2% for the first quarters of 2025 and 2024, respectively, and is calculated excluding accumulated other comprehensive income (AOCI). Other details may be found in the table on the following page. Core net operating earnings were $152 million ($1.81 per share) for the 2025 first quarter compared to $231 million ($2.76 per share) in the 2024 first quarter. The year-over-year decrease reflects lower property and casualty (P&C) insurance underwriting profit and lower returns in AFG's alternative investment portfolio. Additional details for the 2025 and 2024 first quarters may be found in the table below. Core net operating earnings for the first quarters of 2025 and 2024 generated annualized returns on equity of 13.1% and 20.2%, respectively, which is calculated excluding AOCI. AFG's book value per share was $52.50 at March 31, 2025. AFG paid cash dividends of $2.80 per share during the first quarter, including a $2.00 per share special dividend paid in March. For the three months ended March 31, 2025, AFG's growth in book value per share plus dividends was 4.0%. Book value per share excluding AOCI was $54.63 per share at March 31, 2025, compared to $56.03 at the end of 2024. For the three months ended March 31, 2025, AFG's growth in book value per share excluding AOCI plus dividends was 2.5%. AFG's net earnings, determined in accordance with U.S. generally accepted accounting principles (GAAP), include certain items that may not be indicative of its ongoing core operations. The table below identifies such items and reconciles net earnings to core net operating earnings, a non-GAAP financial measure. AFG believes that its core net operating earnings provides management, financial analysts, ratings agencies, and investors with an understanding of the results from the ongoing operations of the Company by excluding the impact of net realized gains and losses and other items that are not necessarily indicative of operating trends. AFG's management uses core net operating earnings to evaluate financial performance against historical results because it believes this provides a more comparable measure of its continuing business. Core net operating earnings is also used by AFG's management as a basis for strategic planning and forecasting. Footnote (a) is contained in the accompanying Notes to Financial Schedules at the end of this release. Expand S. Craig Lindner and Carl H. Lindner III, AFG's Co-Chief Executive Officers, issued this statement: 'Our first quarter results were solid in the face of elevated industry catastrophe losses and heightened levels of economic volatility. In addition, we returned over $290 million to our shareholders during the first quarter of 2025 through a combination of regular dividends, special dividends and share repurchases. Our entrepreneurial, opportunistic culture and disciplined operating philosophy continue to serve us well in environments such as these, and position us for long-term success.' Messrs. Lindner continued: 'AFG continued to have significant excess capital at March 31, 2025. Returning capital to shareholders in the form of regular and special cash dividends and through opportunistic share repurchases is an important and effective component of our capital management strategy. In addition, our capital will be deployed into AFG's core businesses as we identify the potential for healthy, profitable organic growth, and opportunities to expand our specialty niche businesses through acquisitions and start-ups that meet our target return thresholds.' Specialty Property and Casualty Insurance Operations The Specialty P&C insurance operations generated a 94.0% combined ratio in the first quarter of 2025, 3.9 points higher than the 90.1% reported in the first quarter of 2024. First quarter 2025 results include 4.5 points related to catastrophe losses, due primarily to losses from the California wildfires. By comparison, catastrophe losses added 2.3 points to the combined ratio in the 2024 first quarter. First quarter 2025 results benefited from 1.3 points of favorable prior year reserve development, compared to 3.3 points in the first quarter of 2024. Underwriting profit was $94 million for the 2025 first quarter compared to $154 million in the comparable 2024 period. Higher year-over-year underwriting profit in our Specialty Financial Group was more than offset by lower underwriting profit in our Property and Transportation and Specialty Casualty Groups. First quarter 2025 gross and net written premiums were 2% and 1% lower, respectively, than the comparable period in 2024. We continue to achieve year-over-year premium growth in selected businesses as a result of a combination of new business opportunities, a good renewal rate environment, and increased exposures. However, strategic decisions to optimize long-term results, including the non-renewal of certain under-performing accounts, and proactive underwriting measures to address the impact of social inflation and competitive market conditions in selected lines of business tempered growth in the quarter. Average renewal pricing across our P&C Group, excluding workers' compensation, was up approximately 7% for the quarter. Including workers' compensation, renewal rates were up 5% overall. We believe we are achieving overall renewal rate increases in excess of prospective loss ratio trends to meet or exceed targeted returns. Historically, AFG has reported results from its internal reinsurance facility that assumes business from several of our Specialty P&C businesses as the Specialty-Other Group. Beginning in the first quarter of 2025, we are presenting the results of the business assumed by our internal reinsurance facility within the same groups as the ceding businesses. The overall results for AFG's Specialty Property & Casualty Insurance Operations are not impacted by this reclassification. Comparable prior year results have been recast accordingly. We believe this presentation better reflects the performance of the underlying operating businesses, is consistent with how management views and evaluates results, and enhances our financial reporting. The Property and Transportation Group reported an underwriting profit of $37 million in the first quarter of 2025 compared to $60 million in the first quarter of 2024. The decrease was due primarily to lower year-over-year underwriting profit in our crop insurance business and the impact of particularly strong 2024 results in our property & inland marine business. Catastrophe losses in this group were $10 million in the first quarter of 2025, compared to $9 million in the first quarter of 2024. The businesses in the Property and Transportation Group achieved a 92.5% calendar year combined ratio overall in the first quarter of 2025, 4.0 points higher than the 88.5% reported in the comparable 2024 period. First quarter 2025 gross and net written premiums in this group were both 6% lower than the comparable prior year period. The decrease was primarily due to the non-renewal of a few large policies in our agricultural and transportation businesses coupled with elevated pricing competition in our transportation businesses. These decreases were partially offset by new business opportunities, a favorable rate environment and higher exposures. Overall renewal rates in this group increased approximately 7% on average in the first quarter of 2025. The Specialty Casualty Group reported an underwriting profit of $20 million in the first quarter of 2025 compared to $61 million in the comparable 2024 period, reflecting lower underwriting profit in our workers' compensation and executive liability businesses and higher catastrophe losses. Underwriting profitability in our workers' compensation and executive liability businesses continues to be strong despite the lower year-over-year profitability. Catastrophe losses for this group were $27 million in the first quarter of 2025 compared to $19 million in the prior year quarter. The businesses in the Specialty Casualty Group achieved a 97.6% calendar year combined ratio in the first quarter of 2025, 5.4 points higher than the 92.2% reported in the comparable period in 2024. First quarter 2025 gross and net written premiums decreased 3% and 4%, respectively, when compared to the same prior year period. The lower year-over-year premiums were primarily attributed to our excess liability, executive liability, and workers' compensation businesses, and were partially offset by higher year-over-year premiums in our mergers & acquisitions business and new business opportunities and favorable renewal pricing in several of our other businesses. Excluding our workers' compensation businesses, renewal rates in this group were up 9%; overall renewal rates in this group were up about 6% in the first quarter of 2025. The Specialty Financial Group reported an underwriting profit of $37 million in the first quarter of 2025, compared to $33 million in the comparable 2024 period. Favorable prior year reserve development and improved accident year results were partially offset by higher year-over-year catastrophe losses. Catastrophe losses for this group were $35 million in the first quarter of 2025 and were attributed primarily to the California wildfires. By comparison, catastrophe losses in this group in the first quarter of 2024 were $7 million. This group continued to achieve excellent underwriting margins and reported an 87.0% combined ratio for the first quarter of 2025, only 0.4 points higher than the comparable period in 2024 despite the elevated catastrophe losses. Gross and net written premiums increased by 16% and 18%, respectively, in the 2025 first quarter when compared to the same 2024 period, primarily due to growth in our financial institutions business. Renewal pricing in this group was up approximately 2% in the first quarter. Carl Lindner III stated, 'Our Specialty P&C businesses performed well during the first quarter of 2025 despite elevated catastrophe losses stemming from the California wildfires. Maintaining underwriting discipline has been paramount, as several of our businesses faced heightened price competition during the quarter. We achieved strong rate increases in our most social inflation-exposed lines of businesses and non-renewed several larger accounts with unfavorable loss experience. While these actions moderated our growth this quarter, they have positioned us for future success. We continue to expect premium growth for the full year in 2025. The vast majority of the businesses in our diversified Specialty P&C portfolio met or exceeded our targeted returns.' Further details about AFG's Specialty P&C operations may be found in the accompanying schedules and in our Quarterly Investor Supplement, which is posted on our website. Investments Net Investment Income – Excluding the impact of alternative investments, net investment income in our property and casualty insurance operations for the three months ended March 31, 2025, increased 6% year-over-year as a result of the impact of rising interest rates and higher balances of invested assets. Property and casualty net investment income including the impact of alternative investments was approximately 17% lower than the comparable 2024 period. The annualized return on alternative investments was approximately 1.8% for the 2025 first quarter compared to 9.0% for the prior year quarter, due primarily to a decline in the fair value of several underlying investments within our traditional private equity portfolio. Earnings from alternative investments may vary from quarter to quarter based on the reported results of the underlying investments and generally are reported on a quarter lag. Elevated economic uncertainty affecting broad-based equity markets could continue to temper returns in AFG's traditional private equity portfolio in 2025. The average annual return on alternative investments over the five calendar years ended December 31, 2024, was approximately 12%. Longer term, we continue to remain optimistic regarding the prospects of attractive returns from our alternative investment portfolio, with an expectation of annual returns averaging 10% or better. In March 2025, AFG announced that it had reached agreements to sell the Charleston Harbor Resort & Marina. Assuming the successful completion of the diligence period and satisfaction of other customary conditions, the transaction is expected to close in the third quarter of 2025. AFG currently expects to recognize an after-tax core operating gain of approximately $100 million ($1.20 per share) on the sale. This transaction was not contemplated in AFG's original business plan assumptions. Non-Core Net Realized Gains (Losses) – AFG recorded first quarter 2025 net realized gains of $2 million ($0.03 per share) after tax, which included $5 million ($0.06 per share) in after-tax net gains to adjust equity securities that the Company continued to own at March 31, 2025, to fair value. By comparison, AFG recorded first quarter 2024 net realized gains of $11 million ($0.13 per share) after tax. After-tax unrealized losses related to fixed maturities were $148 million at March 31, 2025. Our portfolio continues to be high quality, with 95% of our fixed maturity portfolio rated investment grade and 96% of our P&C fixed maturity portfolio with a National Association of Insurance Commissioners' designation of NAIC 1 or 2, its highest two categories. More information about the components of our investment portfolio may be found in our Quarterly Investor Supplement, which is posted on our website. About American Financial Group, Inc. American Financial Group is an insurance holding company, based in Cincinnati, Ohio. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. Great American Insurance Group's roots go back to 1872 with the founding of its flagship company, Great American Insurance Company. Forward Looking Statements This press release, and any related oral statements, contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this press release not dealing with historical results are forward-looking and are based on estimates, assumptions, and projections. Examples of such forward-looking statements include statements relating to: the Company's expectations concerning market and other conditions and their effect on future premiums, revenues, earnings, investment activities and the amount and timing of share repurchases or special dividends; recoverability of asset values; expected losses and the adequacy of reserves for asbestos, environmental pollution and mass tort claims; rate changes; and improved loss experience. Actual results and/or financial condition could differ materially from those contained in or implied by such forward-looking statements for a variety of reasons including, but not limited to: the risks and uncertainties AFG describes in the 'Risk Factors' section of its most recent Annual Report on Form 10-K, as updated by its other reports filed with the Securities and Exchange Commission; whether or not the sale of Charleston Harbor Resort & Marina closes and AFG's net gain as a result of the sale; changes in financial, political and economic conditions, including changes in interest and inflation rates, currency fluctuations and extended economic recessions or expansions in the U.S. and/or abroad; performance of securities markets; new legislation or declines in credit quality or credit ratings that could have a material impact on the valuation of securities in AFG's investment portfolio; the availability of capital; changes in insurance law or regulation, including changes in statutory accounting rules, including modifications to capital requirements; changes in the legal environment affecting AFG or its customers; tax law and accounting changes; levels of natural catastrophes and severe weather, terrorist activities (including any nuclear, biological, chemical or radiological events), incidents of war or losses resulting from pandemics, civil unrest and other major losses; disruption caused by cyber-attacks or other technology breaches or failures by AFG or its business partners and service providers, which could negatively impact AFG's business or reputation and/or expose AFG to litigation; development of insurance loss reserves and establishment of other reserves, particularly with respect to amounts associated with asbestos and environmental claims; availability of reinsurance and ability of reinsurers to pay their obligations; competitive pressures; the ability to obtain adequate rates and policy terms; changes in AFG's credit ratings or the financial strength ratings assigned by major ratings agencies to AFG's operating subsidiaries; and the impact of the conditions in the international financial markets and the global economy relating to AFG's international operations. The forward-looking statements herein are made only as of the date of this press release. The Company assumes no obligation to publicly update any forward-looking statements. Conference Call The Company will hold a conference call to discuss 2025 first quarter results at 11:30 a.m. (ET) tomorrow, Wednesday, May 7, 2025. There are two ways to access the call. Participants should register for the call here now, or any time up to and during the time of the call, and will immediately receive the dial-in number and a unique pin to access the call. While you may register at any time up to and during the time of the call, you are encouraged to join the call 10 minutes prior to the start of the event. The conference call and accompanying webcast slides will also be broadcast live over the internet. To access the event, click the following link: Alternatively, you can choose Events from the Investor Relations page at A replay of the webcast will be available via the same link on our website approximately two hours after the completion of the call. Footnote (b) is contained in the accompanying Notes to Financial Schedules at the end of this release. Expand AMERICAN FINANCIAL GROUP, INC. SPECIALTY P&C OPERATIONS (Dollars in Millions) Three months ended March 31, Pct. Change 2025 2024 Gross written premiums $ 2,291 $ 2,336 (2 %) Net written premiums $ 1,611 $ 1,634 (1 %) Ratios (GAAP): Loss & LAE ratio 61.0 % 58.6 % Underwriting expense ratio 33.0 % 31.5 % Specialty Combined Ratio 94.0 % 90.1 % Combined Ratio – P&C Segment 94.1 % 90.1 % Supplemental Information: (c) Gross Written Premiums: Property & Transportation $ 897 $ 959 (6 %) Specialty Casualty 1,068 1,097 (3 %) Specialty Financial 326 280 16 % $ 2,291 $ 2,336 (2 %) Net Written Premiums: Property & Transportation $ 563 $ 597 (6 %) Specialty Casualty 772 803 (4 %) Specialty Financial 276 234 18 % $ 1,611 $ 1,634 (1 %) Combined Ratio (GAAP): Property & Transportation 92.5 % 88.5 % Specialty Casualty 97.6 % 92.2 % Specialty Financial 87.0 % 86.6 % Aggregate Specialty Group 94.0 % 90.1 % Three months ended March 31, 2025 2024 Reserve Development (Favorable)/Adverse: Property & Transportation $ (19 ) $ (46 ) Specialty Casualty 12 (11 ) Specialty Financial (13 ) 6 Specialty Group (20 ) (51 ) Other - 1 Total Reserve Development $ (20 ) $ (50 ) Points on Combined Ratio: Property & Transportation (3.9 ) (8.8 ) Specialty Casualty 1.6 (1.4 ) Specialty Financial (4.6 ) 2.4 Aggregate Specialty Group (1.3 ) (3.3 ) Total P&C Segment (1.3 ) (3.2 ) Expand Footnote (c) is contained in the accompanying Notes to Financial Schedules at the end of this release. Expand AMERICAN FINANCIAL GROUP, INC. Notes to Financial Schedules a) Components of core net operating earnings (in millions): Expand b) Shareholders' Equity at March 31, 2025, includes ($179) million ($2.13 per share loss) in Accumulated Other Comprehensive Income (Loss) compared to ($240 million) ($2.85 per share loss) in Accumulated Other Comprehensive Income (Loss) at December 31, 2024. c) Supplemental Notes: Property & Transportation includes primarily 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 coverages. Specialty Casualty includes primarily excess and surplus, general liability, executive liability, professional liability, umbrella and excess liability, specialty coverages in targeted markets, customized programs for small to mid-sized businesses and workers' compensation insurance. Specialty Financial includes risk management insurance programs for lending and leasing institutions (including equipment leasing and collateral and lender-placed mortgage property insurance), surety and fidelity products and trade credit insurance. Expand
Business Wire
30-04-2025
- Business
- Business Wire
American Financial Group, Inc. Management to Participate in the 2025 Wells Fargo Financial Services Investor Conference
CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) announced today that Carl H. Lindner III and S. Craig Lindner, Co-Chief Executive Officers, and Brian S. Hertzman, Senior Vice President and Chief Financial Officer, will participate in the 2025 Wells Fargo Financial Services Investor Conference on Tuesday, May 13, 2025. While there will be no Company presentation, AFG will host several investor meetings. The investor material to be used in the meetings will be posted via a link under Events on the Investor Relations page of AFG's website, just prior to the conference. About American Financial Group, Inc. American Financial Group is an insurance holding company, based in Cincinnati, Ohio. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. Great American Insurance Group's roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.
Yahoo
18-04-2025
- Business
- Yahoo
Jim Cramer on American Financial Group, Inc. (AFG): A Longtime Favorite from the Lindner Family
We recently published a list of . In this article, we are going to take a look at where American Financial Group (NYSE:AFG) stands against other stocks that Jim Cramer discusses. On Wednesday, Mad Money host Jim Cramer weighed in on how companies are grappling with the challenge of issuing guidance during the earnings season. 'So far this earnings season, the great dilemma is how the heck are you supposed to deal with your guidance? How do you come up with a forecast when you got no idea what the future's going to look like? I don't have it. You don't have it. They don't have it.' READ ALSO 12 Stocks on Jim Cramer's Radar Recently and Jim Cramer Discussed These 12 Stocks Recently Cramer pointed to a series of recent developments that have added to the uncertainty. Among the most disruptive, he said, is the sudden rollout of a sweeping tariff policy, which includes a 10% base tariff on all imported goods. It has triggered retaliatory measures from several trading partners. Cramer mentioned that China has stopped accepting deliveries of Boeing aircraft. On top of that, he noted a noticeable decline in international tourism. 'The whole thing's a bit of a mess,' he said. He added: 'So aside from purely domestic companies with little economic sensitivity, how on earth can executives give you any kind of forecast for 2025 here? Coming into earnings season, I figured most of them would just simply pull their outlooks. I mean, who could blame them?' As the earnings season is underway, however, Cramer said he is seeing a variety of responses. Some companies, especially the major banks, are opting to reiterate their full-year outlooks. But he noted that these institutions generally do not issue detailed guidance on metrics like revenue or earnings per share in the first place. Meanwhile, several companies have managed to surpass Wall Street's expectations for the quarter, only to stick with previously issued full-year forecasts. 'But here's the bottom line: With earnings season in full swing, I'm surprised more companies haven't pulled their full year forecast like Delta. The most common strategy that's been seen so far is beat and maintain from a handful of companies like the banks and a couple of healthcare companies holding up so far.' For this article, we compiled a list of 6 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 16. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey's database of over 1,000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A hand holding a blank insurance policy, signifying the wide variety of coverages available. Number of Hedge Fund Holders: 21 When a caller asked Cramer about American Financial Group, Inc. (NYSE:AFG), he said, 'Oh, you know what? To the Lindner family, I've always liked that stock.' American Financial Group (NYSE:AFG) offers a range of specialty insurance products, including coverage for transportation, property, casualty, and financial risks. For 2025, the company expects a 5% rise in net written premiums, building on the $7.1 billion reported the previous year. It is targeting a combined ratio of roughly 92.5% and expects a reinvestment rate near 5.75%. American Financial Group (NYSE:AFG) also expects an annual return of about 8% from its $2.7 billion alternative investment portfolio. Based on these assumptions, the company projects core net operating earnings per share of approximately $10.50 and a core operating return on equity, excluding AOCI, of around 18%. Overall, AFG ranks 5th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of AFG an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AFG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
American Financial Group, Inc. Announces Its Conference Call and Webcast to Discuss 2025 First Quarter Results
CINCINNATI, April 15, 2025--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) expects to release its 2025 first quarter results after 5:00 p.m. (ET) on Tuesday, May 6, 2025. The release will be available shortly thereafter on AFG's website at In conjunction with its release, AFG will hold a conference call to discuss 2025 first quarter results at 11:30 a.m. (ET) on Wednesday, May 7, 2025. There are two ways to access the call. By Telephone Participants should register for the call here now or any time up to and during the time of the call, and will immediately receive the dial-in number and a unique PIN to access the call. Registration details are also available by visiting While you may register at any time up to and during the time of the call, you are encouraged to join the call 10 minutes prior to the start of the event. Via the Internet The conference call and accompanying webcast slides will also be broadcast live over the internet. To access the event, click on the following link: A replay of the webcast will be available via the same link on our website, approximately two hours after the completion of the call. About American Financial Group, Inc. American Financial Group is an insurance holding company, based in Cincinnati, Ohio. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. Great American Insurance Group's roots go back to 1872 with the founding of its flagship company, Great American Insurance Company. View source version on Contacts Diane P. Weidner, IRC, CPA (inactive)Vice President - Investor & Media Relations513-369-5713 Websites: Sign in to access your portfolio
Yahoo
28-01-2025
- Business
- Yahoo
American Financial Group Management to Participate in the BofA Securities 2025 Financial Services Conference
CINCINNATI, January 28, 2025--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) announced today that Carl H. Lindner III and S. Craig Lindner, Co-Chief Executive Officers, and Brian S. Hertzman, Senior Vice President and Chief Financial Officer, will participate in the BofA Securities 2025 Financial Services Conference on Tuesday, February 11, 2025. While there will be no Company presentation, AFG will host several investor meetings. The investor material to be used in the meetings will be posted via a link under Events on the Investor Relations page of AFG's website, just prior to the conference. About American Financial Group, Inc. American Financial Group is an insurance holding company, based in Cincinnati, Ohio. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses. Great American Insurance Group's roots go back to 1872 with the founding of its flagship company, Great American Insurance Company. View source version on Contacts Diane P. Weidner, IRC, CPA (inactive)Vice President - Investor & Media Relations513-369-5713 Websites:
