Underwriting profitability remains resilient despite revenue growth fluctuations, as evidenced by the 2026Q1 combined ratio of 87.1% and a 24.5% year-over-year EPS growth.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Revenue | 8.15B | 8.17B | 8.28B | 7.73B | 6.77B | 6.23B | 5.67B | 6.12B | 6.99B | 6.87B | 6.5B | 6.14B | 5.73B | 5.1B | 4.96B | 4.64B | 4.5B | 4.32B | 4.29B | 4.38B | 4.25B | 3.98B | 3.87B | 3.32B | 3.71B | 3.92B | 3.82B | 3.36B | 4.06B | 4.03B | 4.12B |
| Revenue Growth % | -1.08% | -1.26% | 7.12% | 14.1% | 8.7% | 9.89% | -7.29% | -12.49% | 1.81% | 5.65% | 5.74% | 7.19% | 12.35% | 2.95% | 6.76% | 3.25% | 4.1% | 0.64% | -1.97% | 3.03% | 6.67% | 3.01% | 16.4% | -10.41% | -5.36% | 2.7% | 13.57% | -17.3% | 0.92% | -2.17% | 13.38% |
| Medical Costs & Claims | 5.51B | 4.39B | 6.8B | 6.37B | 5.58B | 4.86B | 5.37B | 5.49B | 6.06B | 5.63B | 5.28B | 5.17B | 4.75B | 4.02B | 4.02B | 3.71B | 3.33B | 2.17B | 2.55B | 2.32B | 2.88B | 3.1B | 1.16B | 1.08B | 1.93B | 1.25B | 2.7B | 2.25B | 2.99B | 1.18B | 1.16B |
| Medical Cost Ratio % | 67.64% | 53.68% | 82.21% | 82.47% | 82.34% | 77.98% | 94.69% | 89.73% | 86.65% | 82.07% | 81.27% | 84.12% | 82.91% | 78.72% | 81.08% | 80.01% | 74.05% | 50.23% | 59.51% | 53.09% | 67.78% | 77.69% | 30.01% | 32.5% | 52.01% | 31.87% | 70.67% | 67.07% | 73.54% | 29.29% | 28.14% |
| Gross Profit | 2.64B | 3.79B | 1.47B | 1.35B | 1.2B | 1.37B | 301M | 628M | 933M | 1.23B | 1.22B | 976M | 980M | 1.09B | 938M | 928M | 1.17B | 2.15B | 1.74B | 2.05B | 1.37B | 888.9M | 2.71B | 2.24B | 1.78B | 2.67B | 1.12B | 1.11B | 1.07B | 2.85B | 2.96B |
| Gross Margin % | 32.36% | 46.32% | 17.79% | 17.53% | 17.66% | 22.02% | 5.31% | 10.27% | 13.35% | 17.93% | 18.73% | 15.88% | 17.09% | 21.28% | 18.92% | 19.99% | 25.95% | 49.77% | 40.49% | 46.91% | 32.22% | 22.31% | 69.99% | 67.5% | 47.99% | 68.13% | 29.33% | 32.93% | 26.46% | 70.71% | 71.86% |
| Gross Profit Growth % | - | 157.03% | 8.71% | 13.29% | -12.83% | 355.81% | -52.07% | -32.69% | -24.21% | 1.15% | 24.69% | -0.41% | -9.76% | 15.78% | 1.08% | -20.48% | -45.72% | 23.68% | -15.38% | 50.01% | 54.06% | -67.17% | 20.69% | 26.04% | -33.34% | 138.55% | 1.16% | 2.93% | -62.24% | -3.73% | 10.87% |
| Operating Expenses | 1.52B | 2.71B | 349M | 282M | 73M | 37M | -38M | -6M | 294M | 507M | 430M | 411M | 354M | 397M | 401M | 370M | 473M | 1.34B | 1.42B | 1.42B | 675M | 561.8M | 2.12B | 1.95B | 1.61B | 2.58B | 1.01B | 804.37M | 801.22M | 52.3M | 76.1M |
| OpEx / Revenue % | 18.68% | 33.19% | 4.22% | 3.65% | 1.08% | 0.59% | -0.67% | -0.1% | 4.21% | 7.39% | 6.62% | 6.69% | 6.17% | 7.78% | 8.09% | 7.97% | 10.52% | 30.97% | 33.14% | 32.32% | 15.88% | 14.1% | 54.87% | 58.6% | 43.38% | 65.93% | 26.45% | 23.94% | 19.72% | 1.3% | 1.85% |
| Depreciation & Amortization | 89M | 86M | 81M | 78M | 100M | 187M | 299M | 259M | 210M | 107M | 134M | 134M | 144M | 142M | 257M | 180M | 202M | 198M | 220.5M | 194.3M | 167M | 213M | 174.2M | 176.86M | 174.99M | 147.59M | 117.39M | 94.98M | 106.04M | 76.4M | 79.4M |
| Combined Ratio % | 86.32% | 86.87% | 86.42% | 86.12% | 83.42% | 78.57% | 94.02% | 89.63% | 90.86% | 89.45% | 87.89% | 90.81% | 89.08% | 86.5% | 89.17% | 87.98% | 84.57% | 81.2% | 92.64% | 85.41% | 83.66% | 91.79% | 84.88% | 91.09% | 95.39% | 97.81% | 97.12% | 91.01% | 93.26% | 30.59% | 29.98% |
| Operating Income | 1.11B | 1.07B | 1.12B | 1.07B | 1.12B | 1.33B | 339M | 634M | 639M | 724M | 787M | 565M | 626M | 689M | 537M | 558M | 694M | 812M | 315.9M | 638.9M | 694.4M | 327.1M | 585M | 296M | 171M | 86M | 110M | 302.06M | 273.75M | 2.79B | 2.88B |
| Operating Margin % | 13.68% | 13.13% | 13.58% | 13.88% | 16.58% | 21.43% | 5.98% | 10.37% | 9.14% | 10.55% | 12.11% | 9.19% | 10.92% | 13.5% | 10.83% | 12.02% | 15.43% | 18.8% | 7.36% | 14.59% | 16.34% | 8.21% | 15.12% | 8.91% | 4.61% | 2.19% | 2.88% | 8.99% | 6.74% | 69.41% | 70.02% |
| Operating Income Growth % | - | -4.54% | 4.75% | -4.45% | -15.88% | 293.81% | -46.53% | -0.78% | -11.74% | -8.01% | 39.29% | -9.74% | -9.14% | 28.31% | -3.76% | -19.6% | -14.53% | 157.04% | -50.56% | -7.99% | 112.29% | -44.09% | 97.64% | 73.1% | 98.84% | -21.82% | -63.58% | 10.34% | -90.2% | -3.01% | 13.22% |
| EBITDA | 1.2B | 1.16B | 1.21B | 1.15B | 1.22B | 1.52B | 638M | 893M | 849M | 831M | 921M | 699M | 770M | 831M | 794M | 738M | 896M | 1.01B | 536.4M | 833.2M | 861.4M | 540.1M | 759.2M | 472.86M | 345.99M | 233.59M | 227.39M | 397.05M | 379.79M | 2.87B | 2.96B |
| EBITDA Margin % | 14.77% | 14.18% | 14.56% | 14.89% | 18.06% | 24.43% | 11.25% | 14.6% | 12.15% | 12.1% | 14.17% | 11.38% | 13.43% | 16.28% | 16.02% | 15.89% | 19.92% | 23.38% | 12.5% | 19.03% | 20.27% | 13.56% | 19.63% | 14.23% | 9.33% | 5.96% | 5.96% | 11.82% | 9.35% | 71.31% | 71.94% |
| Interest Expense | 84M | 80M | 76M | 76M | 85M | 94M | 88M | 68M | 62M | 85M | 77M | 75M | 74M | 71M | 75M | 74M | 78M | 67M | 70M | 71.3M | 72.5M | 79.5M | 81.1M | 57.32M | 60.41M | 60.74M | 67.64M | 63.67M | 57.68M | 52.3M | 76.1M |
| Non-Operating Income | -84M | -80M | -76M | -76M | -85M | -94M | -88M | -68M | -62M | -85M | -77M | -75M | -74M | -71M | -75M | -74M | -78M | -67M | -70M | -71.3M | -72.5M | -79.5M | -81.1M | -57.32M | -67.43M | -60.74M | -67.53M | -63.67M | -57.68M | 2.74B | 2.81B |
| Pretax Income | 1.11B | 1.07B | 1.12B | 1.07B | 1.12B | 1.33B | 339M | 634M | 639M | 724M | 787M | 565M | 626M | 689M | 537M | 558M | 694M | 812M | 315.9M | 638.9M | 694.4M | 327.1M | 585M | 296M | 171M | 86M | 110M | 302.06M | 273.75M | 330.2M | 353.3M |
| Pretax Margin % | 13.68% | 13.13% | 13.58% | 13.88% | 16.58% | 21.43% | 5.98% | 10.37% | 9.14% | 10.55% | 12.11% | 9.19% | 10.92% | 13.5% | 10.83% | 12.02% | 15.43% | 18.8% | 7.36% | 14.59% | 16.34% | 8.21% | 15.12% | 8.91% | 4.61% | 2.19% | 2.88% | 8.99% | 6.74% | 8.2% | 8.58% |
| Income Tax | 236M | 231M | 237M | 221M | 225M | 254M | 25M | 143M | 122M | 247M | 119M | 195M | 220M | 236M | 135M | 239M | 268M | 282M | 115.9M | 225.8M | 234.6M | 105.6M | 184.5M | -47.45M | 17.88M | 10.08M | 29.04M | 98.2M | 94.07M | 130.7M | 91.3M |
| Effective Tax Rate % | 21.17% | 21.53% | 21.09% | 20.6% | 20.04% | 19.03% | 7.37% | 22.56% | 19.09% | 34.12% | 15.12% | 34.51% | 35.14% | 34.25% | 25.14% | 42.83% | 38.62% | 34.73% | 36.69% | 35.34% | 33.78% | 32.28% | 31.54% | -16.03% | 10.46% | 11.72% | 26.4% | 32.51% | 34.36% | 39.58% | 25.84% |
| Net Income | 879M | 842M | 887M | 852M | 898M | 2B | 732M | 897M | 530M | 475M | 649M | 352M | 452M | 471M | 488M | 342M | 482M | 519M | 195.8M | 383.2M | 453.4M | 206.6M | 360M | 294M | 85M | -15M | -56M | 141.44M | 124.4M | 192.3M | 233.3M |
| Net Margin % | 10.78% | 10.3% | 10.72% | 11.02% | 13.26% | 32.02% | 12.91% | 14.67% | 7.58% | 6.92% | 9.99% | 5.73% | 7.88% | 9.23% | 9.84% | 7.37% | 10.72% | 12.01% | 4.56% | 8.75% | 10.67% | 5.19% | 9.31% | 8.85% | 2.29% | -0.38% | -1.47% | 4.21% | 3.06% | 4.78% | 5.67% |
| Net Income Growth % | 10.01% | -5.07% | 4.11% | -5.12% | -54.99% | 172.54% | -18.39% | 69.25% | 11.58% | -26.81% | 84.38% | -22.12% | -4.03% | -3.48% | 42.69% | -29.05% | -7.13% | 165.07% | -48.9% | -15.48% | 119.46% | -42.61% | 22.45% | 245.88% | 666.67% | 73.21% | -139.59% | 13.7% | -35.31% | -17.57% | 22.02% |
| EPS (Diluted) | 10.55 | 10.08 | 10.57 | 10.05 | 10.53 | 23.30 | 8.21 | 9.86 | 5.85 | 5.28 | 7.33 | 3.94 | 4.97 | 5.16 | 5.09 | 3.33 | 4.36 | 4.45 | 1.67 | 3.10 | 3.75 | 1.75 | 3.21 | 2.75 | 0.82 | -0.15 | -0.63 | 1.57 | 1.33 | 0.43 | 2.53 |
| EPS Growth % | 10.6% | -4.64% | 5.17% | -4.56% | -54.81% | 183.8% | -16.73% | 68.55% | 10.8% | -27.97% | 86.04% | -20.72% | -3.68% | 1.38% | 52.85% | -23.62% | -2.02% | 166.47% | -46.13% | -17.33% | 114.29% | -45.48% | 16.73% | 235.37% | 646.67% | 76.19% | -140.13% | 18.05% | 209.3% | -83% | -1.56% |
| EPS (Basic) | - | 10.05 | 10.57 | 10.06 | 10.55 | 23.49 | 8.25 | 9.98 | 5.96 | 5.38 | 7.47 | 4.02 | 5.15 | 5.29 | 5.48 | 3.51 | 4.41 | 4.58 | 1.71 | 3.25 | 3.84 | 1.78 | 3.26 | 2.76 | 0.82 | -0.15 | -0.63 | 1.58 | 1.35 | 0.43 | 2.56 |
| Diluted Shares Outstanding | 83.3M | 83.5M | 83.9M | 84.8M | 85.3M | 85.6M | 89.2M | 91M | 90.6M | 89.8M | 88.5M | 89.4M | 91M | 91.2M | 95.9M | 102.9M | 110.5M | 116.8M | 116.7M | 123.2M | 120.5M | 117.8M | 112.15M | 106.91M | 103.66M | 102.27M | 88.42M | 90.31M | 93.28M | 91.29M | 92.29M |
Crop insurance volatility exposure
According to the provided quarterly data, AFG's revenue growth has fluctuated significantly, ranging from a 4.0% contraction in 2025Q4 to double-digit expansion in early 2024, suggesting that the company's top-line trajectory remains highly sensitive to seasonal agricultural cycles and shifting competitive dynamics in specialty P&C markets.
The volatility in revenue growth appears to reflect the company's strategic decision to prioritize underwriting discipline over volume, particularly in lines where pricing adequacy is challenged. Investors should monitor whether the recent deceleration in growth signals a broader retreat from competitive segments or merely a temporary adjustment to market conditions.
As reported in financial statements, AFG has maintained a disciplined combined ratio profile, with the 2026Q1 figure of 87.1% demonstrating that the company continues to generate robust underwriting profits despite the inherent volatility of its niche specialty insurance portfolio and exposure to severe weather-related loss events.
The consistent ability to keep the combined ratio well below the 100% threshold suggests that AFG's decentralized underwriting model effectively manages risk selection. However, the significant variance in the loss ratio, which spiked to 84.8% in 2025Q1, warrants further investigation into the impact of catastrophe frequency on long-term margin stability.
Based on the historical income statement data, the 2025 fiscal year marked a period of heightened earnings volatility, with net income swinging from $154 million in 2025Q1 to $299 million by 2025Q4, largely driven by the cyclical nature of the company's significant agricultural insurance business segment.
This period highlights the inherent sensitivity of AFG's bottom line to commodity price fluctuations and harvest outcomes, which are central to the Property & Transportation segment. Analysts should consider whether this earnings profile necessitates a higher risk premium compared to more diversified, less weather-dependent specialty P&C peers.
Analysis of recent financial filings suggests that while current underwriting ratios appear strong, the potential for persistent social inflation in casualty lines may be creating latent reserve risks that could erode future profitability if loss cost trends continue to outpace the company's current rate increase assumptions.
The reliance on niche casualty lines exposes AFG to litigation-driven severity, which may not be fully captured in short-term loss ratio metrics. Investors should monitor for any signs of adverse prior-year reserve development, which could indicate that current underwriting profits are being artificially bolstered by overly optimistic historical loss estimates.
Quick answers to the most common questions about buying AFG stock.
For fiscal year 2025, American Financial Group, Inc. (AFG) reported total revenue of $8.17B. This represents a 98.6% increase compared to $4.12B in 1996.
American Financial Group, Inc. (AFG) is profitable, generating $842.0M in net income for the fiscal year ending 2025 with a net profit margin of 10.3%.
American Financial Group, Inc. (AFG) reported an operating income of $1.07B, resulting in an operating profit margin of 13.1%. This margin reflects the operational efficiency of the business before interest and taxes.
American Financial Group, Inc. (AFG) generated $3.79B in gross profit for the year, representing a gross profit margin of 46.3%. This demonstrates the company's core pricing power and production efficiency.