Underwriting profitability remains resilient with an 81.4% combined ratio in 2025Q4, though revenue growth faces cyclical pressure as evidenced by a 4.5% decline in the same period.
| 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'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Revenue | 8.03B | 8.12B | 8.01B | 7.45B | 6.81B | 6.23B | 5.58B | 5.97B | 6.99B | 6.8B | 6.45B | 6.28B | 5.65B | 5.02B | 4.72B | 4.75B | 4.5B | 294.1M | 344.1M | 364.7M | 414.99B | 342.42B | 266.65B |
| Revenue Growth % | -0.9% | 1.34% | 7.49% | 9.43% | 9.36% | 11.62% | -6.61% | -14.52% | 2.76% | 5.41% | 2.76% | 11.11% | 12.61% | 6.4% | -0.72% | 5.63% | 1429.07% | -14.53% | -5.65% | -99.91% | 21.19% | 28.42% | - |
| Medical Costs & Claims | 1.06B | 4.39B | 0 | 0 | 0 | -325M | 0 | 0 | -161M | -64M | -46M | 134M | -62M | -74M | 404M | 363M | 378M | 463M | 549.9M | 463.8M | 477.65B | 519.9B | 447B |
| Medical Cost Ratio % | 13.21% | 54.06% | 0% | 0% | 0% | -5.22% | 0% | 0% | -2.3% | -0.94% | -0.71% | 2.13% | -1.1% | -1.47% | 8.57% | 7.64% | 8.41% | 157.43% | 159.81% | 127.17% | 115.1% | 151.83% | 167.64% |
| Gross Profit | 5.11B | 3.73B | 8.01B | 7.45B | 6.81B | 6.55B | 5.58B | 5.97B | 7.15B | 6.87B | 6.5B | 6.14B | 5.71B | 5.09B | 4.31B | 4.39B | 4.12B | -168.9M | -205.8M | -99.1M | -62.67B | -177.49B | -180.36B |
| Gross Margin % | 63.69% | 45.94% | 100% | 100% | 100% | 105.22% | 100% | 100% | 102.3% | 100.94% | 100.71% | 97.87% | 101.1% | 101.47% | 91.43% | 92.36% | 91.59% | -57.43% | -59.81% | -27.17% | -15.1% | -51.83% | -67.64% |
| Gross Profit Growth % | - | -53.45% | 7.49% | 9.43% | 3.94% | 17.44% | -6.61% | -16.45% | 4.15% | 5.65% | 5.74% | 7.56% | 12.2% | 18.09% | -1.71% | 6.51% | 2538.72% | 17.93% | -107.67% | 99.84% | 64.69% | 1.59% | - |
| Operating Expenses | 601M | 2.66B | 41M | 36M | 36M | 41M | 47M | 47M | 825M | 776M | 690M | 627M | 4.95B | 4.26B | 4.1B | 3.83B | 3.43B | -368.9M | -618.9M | -561M | -303.64B | -580.94B | -528.82B |
| OpEx / Revenue % | 7.49% | 32.72% | 0.51% | 0.48% | 0.53% | 0.66% | 0.84% | 0.79% | 11.8% | 11.41% | 10.69% | 9.99% | 87.61% | 84.85% | 87.02% | 80.57% | 76.27% | -125.43% | -179.86% | -153.83% | -73.17% | -169.66% | -198.32% |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 187M | 0 | 0 | 210M | 107M | 134M | 134M | -730M | -771M | -474M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Combined Ratio % | 20.7% | 86.78% | 0.51% | 0.48% | 0.53% | -4.56% | 0.84% | 0.79% | 9.5% | 10.47% | 9.98% | 12.12% | 86.52% | 83.38% | 95.59% | 88.21% | 84.68% | 32% | -20.05% | -26.65% | 41.93% | -17.82% | -30.68% |
| Operating Income | 4.57B | 7.93B | 7.97B | 7.42B | 6.77B | 1.1B | 5.53B | 5.93B | 728M | 955M | 968M | 884M | 730M | 771M | 474M | 560M | 689M | 200M | 413.1M | 461.9M | 240.97B | 403.45B | 348.46B |
| Operating Margin % | 56.97% | 97.72% | 99.49% | 99.52% | 99.47% | 17.73% | 99.16% | 99.21% | 10.42% | 14.04% | 15% | 14.08% | 12.92% | 15.36% | 10.05% | 11.79% | 15.32% | 68% | 120.05% | 126.65% | 58.07% | 117.82% | 130.68% |
| Operating Income Growth % | - | -0.46% | 7.46% | 9.48% | 513.59% | -80.04% | -6.66% | 714.15% | -23.77% | -1.34% | 9.5% | 21.1% | -5.32% | 62.66% | -15.36% | -18.72% | 244.5% | -51.59% | -10.57% | -99.81% | -40.27% | 15.78% | - |
| EBITDA | 2.55B | 1.15B | 7.97B | 7.42B | 6.77B | 1.29B | 5.53B | 5.93B | 938M | 1.06B | 1.1B | 1.02B | 0 | 0 | 0 | 560M | 689M | 200M | 413.1M | 461.9M | 240.97B | 403.45B | 348.46B |
| EBITDA Margin % | 31.8% | 14.2% | 99.49% | 99.52% | 99.47% | 20.73% | 99.16% | 99.21% | 13.42% | 15.62% | 17.08% | 16.21% | 0% | 0% | 0% | 11.79% | 15.32% | 68% | 120.05% | 126.65% | 58.07% | 117.82% | 130.68% |
| Interest Expense | 84M | 80M | 76M | 76M | 85M | 94M | 88M | 68M | 62M | 85M | 77M | 74M | 73M | 71M | 85M | 85M | 78M | 70M | 71.3M | 72.5M | 73.23B | 71.89B | 57.32B |
| Non-Operating Income | 1.81B | -80M | 7.97B | 7.42B | 6.77B | -325M | 5.53B | 5.93B | -161M | -64M | -46M | 134M | -18M | 4M | -138M | -83M | -78M | -185.9M | -297.1M | -308.2M | 240.53B | 402.78B | -9.87B |
| Pretax Income | 1.12B | 1.07B | 1.12B | 1.07B | 1.12B | 1.33B | 339M | 634M | 639M | 724M | 787M | 565M | 626M | 689M | 537M | 560M | 689M | 315.9M | 638.9M | 697.6M | 356.81B | 589.54B | 301.01B |
| Pretax Margin % | 13.9% | 13.17% | 14.03% | 14.4% | 16.49% | 21.44% | 6.08% | 10.61% | 9.14% | 10.65% | 12.2% | 9% | 11.08% | 13.73% | 11.39% | 11.79% | 15.32% | 107.41% | 185.67% | 191.28% | 85.98% | 172.17% | 112.89% |
| Income Tax | 236M | 231M | 237M | 221M | 225M | 254M | 25M | 143M | 122M | 247M | 119M | 195M | 220M | 236M | 135M | 240M | 266M | 115.9M | 225.8M | 235.7M | 115.84B | 186.09B | -47.45B |
| Effective Tax Rate % | 21.15% | 21.61% | 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% | 42.86% | 38.61% | 36.69% | 35.34% | 33.79% | 32.47% | 31.57% | -15.77% |
| Net Income | 879M | 842M | 887M | 852M | 898M | 1.34B | 732M | 897M | 530M | 475M | 649M | 352M | 452M | 471M | 488M | 343M | 479M | 195.8M | 383.2M | 453.4M | 206.58B | 359.86B | 348.46B |
| Net Margin % | 10.95% | 10.37% | 11.07% | 11.43% | 13.19% | 21.5% | 13.12% | 15.02% | 7.58% | 6.98% | 10.06% | 5.61% | 8% | 9.39% | 10.35% | 7.22% | 10.65% | 66.58% | 111.36% | 124.32% | 49.78% | 105.09% | 130.68% |
| Net Income Growth % | 10.01% | -5.07% | 4.11% | -5.12% | -32.93% | 82.92% | -18.39% | 69.25% | 11.58% | -26.81% | 84.38% | -22.12% | -4.03% | -3.48% | 42.27% | -28.39% | 144.64% | -48.9% | -15.48% | -99.78% | -42.59% | 3.27% | - |
| EPS (Diluted) | 10.55 | 10.08 | 10.57 | 10.05 | 10.53 | 12.62 | 8.21 | 9.86 | 5.85 | 5.29 | 7.33 | 3.94 | 4.97 | 5.16 | 5.09 | 3.33 | 4.33 | 1.68 | 3.11 | 3.76 | 2691.12 | 4962.42 | 4827.55 |
| EPS Growth % | 10.71% | -4.64% | 5.17% | -4.56% | -16.56% | 53.72% | -16.73% | 68.55% | 10.59% | -27.83% | 86.04% | -20.72% | -3.68% | 1.38% | 52.85% | -23.09% | 157.74% | -45.98% | -17.29% | -99.86% | -45.77% | 2.79% | - |
| EPS (Basic) | - | 10.10 | 10.57 | 10.06 | 10.55 | 12.70 | 8.25 | 9.98 | 5.96 | 5.41 | 7.47 | 4.02 | 4.97 | 5.16 | 5.09 | 3.39 | 4.39 | 1.71 | 3.26 | 3.84 | 2736.78 | 5013.27 | 4879.61 |
| 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 | 116.7M | 123.2M | 120.5M | 76.76M | 72.52M | 72.18M |
Social inflation litigation exposure
As reported in recent financial statements, AFGB maintained a combined ratio of 81.4% in 2025Q4, signaling robust underwriting discipline that significantly outperforms industry benchmarks and suggests the company is successfully navigating the current hard market cycle through its specialized, niche-focused underwriting model across its diverse P&C segments.
The company's ability to sustain combined ratios well below the 100% threshold indicates that its decentralized underwriting brands are effectively pricing risk in idiosyncratic markets. Investors should monitor whether this margin strength persists as the company fully transitions to a pure-play P&C insurer, as the lack of annuity-related earnings may increase volatility in reported operating margins.
Based on the provided quarterly data, the company reported erratic loss figures, including negative loss ratios in 2024, which suggests that prior-year reserve releases are significantly impacting current earnings quality and warrant further investigation into the actuarial assumptions underpinning these specialty casualty and transportation insurance segments.
The presence of negative loss ratios in multiple periods implies that historical claims were likely over-reserved, providing a non-recurring boost to net income. Analysts should be cautious, as relying on these releases to support current profitability may mask potential deterioration in the underlying loss environment caused by rising litigation costs.
According to recent SEC filings, AFGB experienced a 4.5% decline in revenue during 2025Q4, reflecting a mixed growth trajectory that appears sensitive to the cyclical nature of its specialty lines and the broader competitive environment within the US commercial insurance market during the current fiscal period.
The deceleration in top-line growth suggests that the company may be prioritizing underwriting discipline and rate adequacy over aggressive market share expansion. This strategy appears consistent with the Lindner family's long-term focus on profitability, though it leaves the firm vulnerable to periods of stagnant premium volume if niche market demand softens.
While AFGB reports strong operating margins, the accelerating trend of social inflation in US casualty markets, as noted in industry research, poses a significant risk that could lead to unfavorable reserve development and erode the underwriting profitability that currently supports the company's premium valuation relative to peers.
The company's exposure to executive liability and specialty casualty lines makes it particularly susceptible to rising jury awards and legal costs. Investors should investigate whether current reserve levels are sufficient to absorb a sustained increase in litigation severity, as this could force a shift in the company's historical reserve release pattern.
Quick answers to the most common questions about buying AFGB stock.
For fiscal year 2025, American Financial Group, Inc. (AFGB) reported total revenue of $8.12B. This represents a 97.0% decline compared to $266.65B in 2003.
American Financial Group, Inc. (AFGB) 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. (AFGB) reported an operating income of $7.93B, resulting in an operating profit margin of 97.7%. This margin reflects the operational efficiency of the business before interest and taxes.
American Financial Group, Inc. (AFGB) generated $3.73B in gross profit for the year, representing a gross profit margin of 45.9%. This demonstrates the company's core pricing power and production efficiency.