Underwriting discipline remains a core driver of profitability, as evidenced by the 81.6% combined ratio reported in 2025Q4 despite volatile revenue growth that saw a 4.9% contraction in 2025Q1.
| 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 | 8.05B | 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 % | 0.31% | 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 | 0 | 0 | 0 | -161M | -64M | -46M | 134M | -62M | -74M | 404M | 363M | 378M | 463M | 549.9M | 463.8M | 477.65B | 519.9B | 447B |
| Medical Cost Ratio % | 13.18% | 54.06% | 0% | 0% | 0% | 0% | 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 | 5.14B | 3.73B | 8.01B | 7.45B | 6.81B | 6.39B | 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 % | 63.79% | 45.94% | 100% | 100% | 100% | 102.67% | 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% | 6.52% | 14.59% | -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 | 623M | 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 % | 7.74% | 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 % | 20.92% | 86.78% | 0.51% | 0.48% | 0.53% | 0.66% | 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 | 2.5B | 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 % | 31.08% | 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 | 937M | 1.15B | 1.2B | 1.15B | 1.21B | 1.29B | 5.53B | 5.93B | 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 % | 11.64% | 14.2% | 14.98% | 15.42% | 17.74% | 20.73% | 99.16% | 99.21% | 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 | -45M | -80M | -46M | -95M | -267M | -325M | 5.53B | 5.93B | 27M | 146M | 104M | 134M | 31M | 11M | -138M | -83M | -78M | -185.9M | -297.1M | -308.2M | 240.53B | 402.78B | -9.87B |
| Pretax Income | 1.11B | 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 % | 13.85% | 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 % | 21.17% | 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 % | 10.92% | 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 filings, American Financial Group's revenue growth has exhibited significant volatility, fluctuating between a 14.3% expansion in 2024Q1 and a 4.9% contraction in 2025Q1, suggesting that the company is navigating a challenging pricing environment within its core specialty insurance segments.
The inconsistent top-line performance indicates that the firm's decentralized underwriting model may be struggling to maintain consistent volume in a competitive P&C market. Investors should monitor whether the recent revenue deceleration reflects a strategic retreat from unprofitable niches or a broader loss of pricing power in the specialty casualty space.
Based on the 2025Q4 combined ratio of 81.6%, the company appears to be maintaining robust underwriting profitability, which suggests that its niche-focused strategy effectively shields the firm from the commodity pricing pressures often seen in broader commercial insurance markets during competitive cycles.
A combined ratio well below the 100% threshold implies that the company is generating substantial underwriting profit, independent of investment returns. This performance warrants further investigation into whether such efficiency is sustainable or if it relies on favorable loss development patterns that may not persist in future periods.
According to historical data, the company's reported loss ratios have occasionally dipped into negative territory, such as the -1.3% figure in 2024Q1, which suggests that prior-year reserve releases are playing a material role in smoothing earnings and potentially masking underlying attritional loss trends.
The reliance on reserve adjustments to bolster net income creates uncertainty regarding the true economic profitability of current-year underwriting. Analysts should be cautious, as any shift toward adverse development could quickly erode the reported margins and signal that past pricing assumptions were overly optimistic.
While the company maintains a strong balance sheet, the rising tide of social inflation and nuclear jury verdicts in the United States poses a significant threat to the Specialty Casualty segment, potentially undermining the long-term sustainability of the firm's current underwriting profit margins.
The decentralized nature of the business units may inadvertently create blind spots regarding the cumulative impact of litigation trends across the portfolio. Investors should monitor whether the company's loss reserves are adequately calibrated to account for the increasing severity of legal settlements, which may not be fully captured in historical loss data.
Quick answers to the most common questions about buying AFGD stock.
For fiscal year 2025, American Financial Group, Inc. (AFGD) reported total revenue of $8.12B. This represents a 97.0% decline compared to $266.65B in 2003.
American Financial Group, Inc. (AFGD) 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. (AFGD) 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. (AFGD) 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.