Revenue growth has been flat to slightly negative (-1.26% in Q2 2026), but underwriting profitability remains solid with a combined ratio of 84.1% and a loss ratio of 50.2% in Q2 2026, though the EPS miss of $2.99 vs. $3.50 estimate warrants monitoring.
American Financial Group, Inc. (AFG) annual income statement — 30-year revenue, gross profit & net income history
| 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 | 8.17B | 8.12B | 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 % | -1.34% | -1.93% | 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 | 6.04B | 6.69B | 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 % | 73.95% | 82.38% | 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 | 2.13B | 1.43B | 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 % | 26.05% | 17.62% | 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 % | - | -2.92% | 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 | 927M | 357M | 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 % | 11.34% | 4.4% | 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 | 91M | 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 % | 85.29% | 86.78% | 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 | 1.2B | 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 % | 14.71% | 13.22% | 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 | 1.29B | 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 % | 15.82% | 14.28% | 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 | 89M | 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 | -89M | -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 | 1.2B | 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 % | 14.71% | 13.22% | 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 | 249M | 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 % | 20.72% | 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 | 953M | 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 % | 11.66% | 10.37% | 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 % | 24.74% | -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) | 11.48 | 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 % | 25.55% | -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 | 83M | 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 |
Quick answers to the most common questions about buying AFG stock.
For fiscal year 2025, American Financial Group, Inc. (AFG) reported total revenue of $8.12B. This represents a 97.3% 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 10.4%.
American Financial Group, Inc. (AFG) reported an operating income of $1.07B, resulting in an operating profit margin of 13.2%. This margin reflects the operational efficiency of the business before interest and taxes.
American Financial Group, Inc. (AFG) generated $1.43B in gross profit for the year, representing a gross profit margin of 17.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Social inflation and crop volatility
Metrics are mathematically derived from official filings.
Premium Growth Flat Amid Strategic Shift
AFG's revenue growth has been flat to slightly negative over the past year, with a -1.26% contraction in the latest quarter, reflecting a strategic focus on underwriting discipline rather than top-line expansion.
Revenue growth has been inconsistent, with quarterly figures ranging from -5.0% to +3.2% over the last ten quarters. The recent divestiture of the annuity business has transformed AFG into a pure-play P&C insurer, which may explain the lack of aggressive premium growth. The flat trajectory suggests management is prioritizing profitability over volume, consistent with their historical willingness to walk away from underpriced risks.
Underwriting Profitability Remains Solid
AFG's combined ratio has consistently stayed below 90% over the past ten quarters, with the latest quarter at 84.1%, indicating strong underwriting discipline and a healthy margin of safety.
The combined ratio has ranged from 81.4% to 90.3%, with the most recent quarter showing a significant improvement to 84.1%. This suggests that despite the EPS miss in Q2 2026, underwriting profitability remains robust. The loss ratio of 50.2% in Q2 2026 is notably lower than the prior quarter's 82.8%, indicating a favorable quarter for claims, possibly due to lower catastrophe losses or favorable reserve development.
Reserve Releases May Mask Underlying Trends
Prior-year reserve development appears to be a significant factor in AFG's earnings, as evidenced by the volatile loss ratios and the Q2 2026 EPS miss, which may indicate adverse development in casualty lines.
The loss ratio swung from 82.8% in Q1 2026 to 50.2% in Q2 2026, a dramatic improvement that is unlikely to be driven solely by current accident year performance. This suggests that reserve releases from prior years may have boosted earnings in the latest quarter. However, the Q2 2026 EPS miss of $2.99 vs. $3.50 estimate, combined with persistent social inflation concerns, raises questions about the adequacy of reserves for long-tail casualty lines. Investors should monitor reserve development disclosures closely.
Investment Income Quietly Supports Earnings
Investment income data is not disclosed in the provided table, but AFG's $1.7 billion cash pile and rising rate environment suggest a favorable tailwind for net investment income, which may be offsetting underwriting volatility.
While investment income figures are unavailable, the company's significant cash position and the current higher-for-longer interest rate environment likely provide a stable source of earnings. This is particularly important given the cyclicality of underwriting results. The lack of disclosure in the data table warrants further investigation into the investment portfolio's composition and yield, as it may be a key driver of overall profitability.
Q2 2026 Miss Signals Potential Inflection
The Q2 2026 EPS miss of $2.99 vs. $3.50 estimate, coupled with a lack of guidance, marks a potential inflection point, suggesting possible deterioration in underwriting profitability or elevated catastrophe losses.
Despite a strong combined ratio of 84.1% in Q2 2026, the EPS miss indicates that analysts' expectations were not met, possibly due to higher-than-expected catastrophe losses or adverse reserve development. The absence of formal guidance from management adds to the uncertainty, suggesting they may be cautious about near-term earnings power. This quarter could represent a turning point, and investors should closely monitor renewal pricing and combined ratio trends in the coming quarters.
Social Inflation and Crop Volatility Risks
Persistent social inflation in U.S. casualty markets and increased frequency of severe convective storms pose significant risks to AFG's underwriting margins, potentially eroding the capital buffer for special dividends.
The flat revenue trajectory and the Q2 2026 EPS miss may be early indicators that social inflation is materializing, necessitating reserve strengthening for older accident years. Additionally, the crop insurance business, a key segment, is highly sensitive to weather volatility, which could lead to unpredictable earnings swings. These factors could pressure the combined ratio and reduce the company's ability to maintain its generous special dividend policy. Investors should monitor reserve development and crop yield data closely.