Operating cash flow remains resilient with an OCF/NI ratio of 2.48 in 2026Q1, supporting a capital return strategy that included $403 million in dividend payments during 2024Q4.
| 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 |
|---|
| Cash from Operations | 1.67B | 1.53B | 1.15B | 1.97B | 1.15B | 1.71B | 2.18B | 2.46B | 2.08B | 1.8B | 1.15B | 1.35B | 1.23B | 760M | 817M | 667M | 864M | 972.9M | 788.5M | 967.6M | 1.02T | 534.08B | 470.67B |
| Operating CF Growth % | 319.02% | 33.07% | -41.52% | 70.86% | -32.73% | -21.48% | -11.12% | 17.91% | 15.47% | 56.87% | -15% | 9.91% | 61.97% | -6.98% | 22.49% | -22.8% | -11.19% | 23.39% | -18.51% | -99.91% | 91.42% | 13.47% | - |
| Operating CF / Revenue % | 20.74% | 18.89% | 14.38% | 26.44% | 16.93% | 27.53% | 39.13% | 30.38% | 29.8% | 26.53% | 17.82% | 21.55% | 21.78% | 15.15% | 17.32% | 14.04% | 19.21% | 330.81% | 229.15% | 265.31% | 246.36% | 155.97% | 176.52% |
| Net Income | 879M | 842M | 887M | 852M | 898M | 1.08B | 325M | 897M | 530M | 475M | 649M | 352M | 452M | 471M | 488M | 320M | 423M | 195.8M | 383.2M | 453.4M | 206.58B | 359.86B | 293.81B |
| Depreciation & Amortization | 47M | 0 | 81M | 0 | 100M | 0 | 299M | 0 | 210M | 107M | 134M | -134M | 144M | 142M | 257M | 192M | 214M | 220.5M | 194.3M | 167M | 213.03B | 174.22B | 176.86B |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 19M | 0 | 20M | 0 | 23M | 30M | 28M | 27M | 25M | 36M | 26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | -327M | 0 | -618M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 419M | 81M | -26M | 111M | 308M | 244M | 1.74B | 883M | 1.52B | 877M | 875M | 644M | 236M | 51M | 72M | 155M | 227M | 556.6M | 211M | 347.2M | 602.74B | -534.08B | -470.67B |
| Working Capital Changes | 320M | 610M | 210M | 1.01B | 155M | 389M | 418M | 676M | 245M | 559M | -240M | 231M | 374M | 60M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -845M | -835M | 95M | 414M | 110M | -436M | -1.56B | -3.06B | -5.35B | -3.29B | -3.3B | -4.57B | -3.63B | -2.92B | -1.43B | -74M | -92M | 420M | 52.8M | -144.9M | -103.41B | -316.42B | -35.63B |
| Capital Expenditures | -77M | 0 | -133M | -72M | -86M | -62M | -60M | -44M | -80M | -109M | -49M | -102M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Acquisitions | -4M | 0 | 21M | -205M | 21M | 1.45B | -420M | 4M | -20M | 55M | -260M | 75M | 811M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -2.66B | 0 | -4.64B | -3.77B | -1.52B | -10.94B | -13.51B | -11.33B | -14.01B | -13.73B | -11.08B | -10.05B | -1.8B | -1.42B | -1.83B | -1.61B | -1.02B | 66.6M | -31M | -6.8M | 14.25B | -94.79B | -11.32B |
| Sale/Maturity of Investments | 2.49B | 0 | 4.85B | 4.46B | 1.48B | 9.08B | 12.43B | 8.31B | 8.73B | 10.49B | 8.17B | 5.51B | 1.42B | 1.9B | 1.86B | 1.39B | 1.02B | -6.25B | -3.64B | -2.83B | -4.13T | -5.61T | -8.01T |
| Other Investing | -598M | -835M | -5M | -6M | 216M | 32M | -1M | -3M | 30M | 2M | -83M | -10M | -4.44B | -2.92B | -1.43B | 143M | -91M | 6.61B | 3.72B | 2.69B | 4.02T | 5.39T | 7.99T |
| Cash from Financing | -117M | -377M | -1.07B | -2.03B | -1.36B | -1.96B | -123M | 1.41B | 2.44B | 1.72B | 3.03B | 3.1B | 2.1B | 2.09B | 989M | 2B | 820M | -697.9M | -450.6M | -209.4M | -129.7B | 44.73B | -484.6B |
| Dividends Paid | -571M | -606M | -788M | -684M | -1.21B | -2.37B | -334M | -444M | -394M | -417M | -185M | -176M | -167M | -160M | -67M | -67M | -63M | -50.7M | -41.9M | -38.2M | -33.1B | -35.13B | -31.34B |
| Share Repurchases | -101M | -99M | 0 | -213M | -11M | -319M | -313M | 0 | -6M | 0 | -133M | -126M | -191M | -70M | -415M | -315M | -292M | -47.4M | -199.1M | 0 | 0 | 0 | 0 |
| Stock Issued | 11M | 12M | 17M | 15M | 16M | 66M | 22M | 36M | 33M | 37M | 35M | 61M | 47M | 54M | 46M | 39M | 32M | 22.6M | 18.3M | 38.7M | 66.2M | 91.48M | 1.52B |
| Debt Issuance (Net) | 1000K | 1000K | 0 | -1000K | -1000K | 0 | 1000K | 1000K | 0 | -1000K | 1000K | -1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 0 |
| Other Financing | 142M | -28M | -295M | -1.13B | 324M | 670M | 18M | 1.65B | 2.84B | 2.17B | 2.72B | 3.45B | 2.32B | 2.36B | 1.42B | 2.36B | 1.02B | 178.6M | 188.7M | 185M | 33B | 79.77B | -453.26B |
| Net Change in Cash | 77M | 321M | 181M | 353M | -1.26B | 466M | -649M | 799M | -823M | 231M | 887M | -123M | -296M | -66M | 381M | 225M | -21M | 448.1M | -513.1M | 857.2M | -389.89B | 262.39B | -49.56B |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | -1.16B | 1.15B | -1.15B | 0 | -5.62B | -3.27B | -2.92B | -4.68B | -3.56B | -2.69B | -1.06B | -2.37B | -1.61B | -246.9M | -903.8M | 243.9M | -1.18T | 0 | 0 |
| Cash at Beginning | 1.73B | 1.41B | 1.23B | 872M | 2.13B | 1.67B | 2.31B | 1.51B | 2.34B | 2.11B | 1.22B | 1.34B | 1.64B | 1.71B | 1.32B | 1.1B | 1.12B | 815.9M | 1.33B | 471.8M | 861.74B | 599.35B | 643.11B |
| Cash at End | 1.35B | 1.73B | 1.41B | 1.23B | 872M | 2.13B | 1.67B | 2.31B | 1.51B | 2.34B | 2.11B | 1.22B | 1.34B | 1.64B | 1.71B | 1.32B | 1.1B | 1.26B | 815.9M | 1.33B | 471.85B | 861.74B | 593.55B |
| Free Cash Flow | 1.59B | 1.4B | 1.02B | 1.9B | 1.07B | 1.65B | 2.12B | 2.41B | 2B | 1.7B | 1.1B | 1.25B | 1.23B | 760M | 817M | 667M | 864M | 972.9M | 788.5M | 967.6M | 1.02T | 534.08B | 470.67B |
| FCF Growth % | 14.08% | 37.19% | -46.31% | 77.88% | -35.41% | -22.19% | -11.98% | 20.42% | 18.17% | 53.95% | -11.99% | 1.62% | 61.97% | -6.98% | 22.49% | -22.8% | -11.19% | 23.39% | -18.51% | -99.91% | 91.42% | 13.47% | - |
| FCF Margin % | 19.78% | 17.22% | 12.72% | 25.47% | 15.67% | 26.53% | 38.05% | 29.84% | 28.66% | 24.92% | 17.06% | 19.92% | 21.78% | 15.15% | 17.32% | 14.04% | 19.21% | 330.81% | 229.15% | 265.31% | 246.36% | 155.97% | 176.52% |
| FCF per Share | 19.06 | 16.74 | 12.15 | 22.38 | 12.51 | 19.3 | 23.8 | 26.51 | 22.11 | 18.88 | 12.44 | 13.99 | 13.53 | 8.33 | 8.52 | 6.48 | 7.82 | 8.34 | 6.4 | 8.03 | 13.24K | 7.21K | 6.52K |
Reserve development and litigation
According to the provided quarterly cash flow data, AFGC consistently demonstrates a strong ability to convert net income into operating cash, with the OCF/NI ratio reaching as high as 2.87 in 2023Q4, highlighting the company's capacity to generate significant float from its specialty insurance operations.
The consistent premium-to-claims spread suggests that the company's decentralized underwriting units are effectively pricing risk to ensure cash inflows precede loss payments. Investors should monitor the occasional volatility in operating cash flow, as seen in 2024Q2, which may reflect the timing of large-scale claim settlements or seasonal shifts in the crop insurance portfolio.
Based on reported financial statements, AFGC maintains an active investment strategy, frequently cycling through hundreds of millions in purchases and sales, such as the $1.5 billion in portfolio activity observed in 2024Q4, which underscores the company's focus on optimizing yield within its massive investment asset base.
The high volume of portfolio turnover suggests that management is actively adjusting duration and credit exposure to capture interest rate tailwinds. This liquidity provides a strategic buffer, allowing the firm to pivot its asset allocation rapidly should market conditions for its specialty insurance niches deteriorate.
As indicated by historical cash flow records, AFGC utilizes a significant portion of its generated cash to fund shareholder returns, with dividend payments reaching $403 million in 2024Q4, reflecting a commitment to returning excess capital rather than retaining it for potentially dilutive, large-scale acquisitions.
The reliance on special dividends appears to be a core component of the company's capital allocation philosophy, signaling confidence in the underlying cash generation of its specialty units. However, the periodic use of buybacks suggests that management remains opportunistic, scaling back repurchases when market valuations or internal capital requirements warrant a more conservative stance.
Data from recent filings reveals a notable disconnect between net income and operating cash flow, with OCF/NI ratios frequently exceeding 2.0, which may indicate that non-cash accruals and reserve adjustments are playing a substantial role in the company's reported profitability metrics over the last ten quarters.
This divergence warrants further investigation into the nature of prior-year reserve releases, as these accounting adjustments can artificially inflate net income without a corresponding increase in actual cash liquidity. Analysts should be cautious, as a reliance on reserve releases to bolster earnings may mask underlying trends in current-year underwriting performance.
Quick answers to the most common questions about buying AFGC stock.
American Financial Group, Inc. (AFGC) generated $1.53B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
American Financial Group, Inc. (AFGC) generated $1.40B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
American Financial Group, Inc. (AFGC) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, American Financial Group, Inc. (AFGC) returned $606.0M to shareholders via cash dividends and spent $99.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.