AFGC's underwriting discipline remains a core strength, evidenced by a 81.4% combined ratio in 2025Q4, though revenue growth has decelerated to 3.7% as of 2026Q1.
| 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 | 8.08B | 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% | -30.98% | 15.65% | 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 | 0 | 0 | -154M | -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% | 0% | 0% | -1.91% | -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 | 6.39B | 5.58B | 8.24B | 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% | 102.67% | 100% | 101.91% | 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% | 6.52% | 14.59% | -32.27% | 15.2% | 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 | 878M | 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% | 10.86% | 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 | 259M | 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% | 0.66% | 0.84% | 8.96% | 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 | 4.51B | 1.07B | 7.97B | 7.42B | 6.77B | 1.1B | 5.53B | 812M | 728M | 955M | 968M | 884M | 730M | 771M | 474M | 560M | 689M | 200M | 413.1M | 461.9M | 240.97B | 403.45B | 348.46B |
| Operating Margin % | 56.21% | 13.22% | 99.49% | 99.52% | 99.47% | 17.73% | 99.16% | 10.05% | 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 % | - | -86.54% | 7.46% | 9.48% | 513.59% | -80.04% | 581.28% | 11.54% | -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 | 1.07B | 938M | 1.06B | 1.1B | 1.02B | 0 | 0 | 0 | 823M | 981M | 606.4M | 904.5M | 937.1M | 649.39M | 844.87M | 348.46B |
| EBITDA Margin % | 31.8% | 14.2% | 99.49% | 99.52% | 99.47% | 20.73% | 99.16% | 13.25% | 13.42% | 15.62% | 17.08% | 16.21% | 0% | 0% | 0% | 17.33% | 21.81% | 206.19% | 262.86% | 256.95% | 0.16% | 0.25% | 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 | -154M | -161M | -64M | -46M | 944M | -18M | 4M | -138M | -83M | -78M | -185.9M | 185.6M | 37.2M | 240.53B | 402.78B | -9.87B |
| Pretax Income | 1.12B | 1.07B | 1.12B | 1.07B | 1.12B | 1.33B | 339M | 1.11B | 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% | 13.71% | 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 | 239M | 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% | 21.57% | 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% | 11.1% | 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 | 2675.49 | 4859.82 | 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% | -44.95% | 0.67% | - |
| EPS (Basic) | - | 10.08 | 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 | 2720.27 | 4906.90 | 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 | 77.21M | 74.05M | 72.18M |
Underwriting volatility and litigation
As reported in recent financial filings, AFGC's revenue growth has fluctuated significantly, moving from a 10.6% expansion in 2024Q3 to a 3.7% increase by 2026Q1, suggesting that the company is navigating a challenging pricing environment within its core specialty insurance niches.
The deceleration in top-line growth appears to reflect a transition in the commercial insurance cycle where competitive pressures may be limiting rate increases. Investors should monitor whether this trend indicates a strategic withdrawal from certain lines to preserve underwriting discipline or a broader loss of market share in key specialty segments.
Based on the provided data, AFGC maintained a combined ratio of 81.4% in 2025Q4, which underscores a robust underwriting performance that significantly outperforms the industry benchmark of 100% and suggests that the company's decentralized niche model remains highly effective at managing loss costs.
The ability to sustain such low combined ratios implies that the company is successfully pricing risk in its specialized portfolios despite potential inflationary pressures. This margin profile suggests that AFGC is not currently reliant on investment income to achieve overall profitability, providing a substantial buffer against market volatility.
According to historical income statement data, the company reported erratic loss figures, including negative loss ratios in early 2024, which suggests that significant prior-year reserve releases may be artificially inflating current-period earnings and warranting deeper scrutiny of the underlying accident-year loss development.
The extreme variance in reported claims, ranging from negative values to $1.1 billion in 2025Q4, indicates that accounting adjustments for prior-year reserves are a primary driver of quarterly net income fluctuations. Analysts should investigate whether these releases are sustainable or if they are masking a potential deterioration in current-year underwriting profitability.
As indicated by the company's financial structure, AFGC maintains an exceptionally low debt-to-equity ratio of 0.38, which suggests a fortress balance sheet that provides significant solvency protection but may simultaneously indicate an inefficient capital structure that limits potential return on equity for shareholders.
While this conservative leverage profile protects the firm against systemic shocks, it may suggest that management is failing to optimize its cost of capital in a high-interest-rate environment. Investors should monitor whether this excess liquidity will be deployed through further special dividends or if it remains a drag on long-term ROE.
Quick answers to the most common questions about buying AFGC stock.
For fiscal year 2025, American Financial Group, Inc. (AFGC) reported total revenue of $8.12B. This represents a 97.0% decline compared to $266.65B in 2003.
American Financial Group, Inc. (AFGC) 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. (AFGC) 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. (AFGC) 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.