Underwriting operations remain highly efficient at converting premiums to cash, with the OCF/NI ratio frequently exceeding 2.0x, including a 2.48 ratio reported in 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'09 | 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 | 914M | 972M | 788M | 967M | 1.02T | 0 | 77.85B |
| 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% | -5.47% | -5.97% | 23.35% | -18.51% | -99.91% | - | -100% | - |
| Operating CF / Revenue % | 20.6% | 18.75% | 14.38% | 26.44% | 16.93% | 27.53% | 39.13% | 41.11% | 29.8% | 26.53% | 17.82% | 21.55% | 21.78% | 15.15% | 17.32% | 14.04% | 19.21% | - | 330.5% | 229% | 265.15% | 246.36% | 0% | 29.2% |
| Net Income | 879M | 842M | 887M | 852M | 898M | 1.08B | 325M | 897M | 530M | 475M | 649M | 352M | 452M | 471M | 488M | 320M | 423M | 530M | 200M | 413M | 462M | 240.97B | 403.45B | 348.46B |
| Depreciation & Amortization | 69M | 86M | 81M | 0 | 100M | 0 | 299M | 0 | 210M | 107M | 134M | -134M | 144M | 142M | 257M | 192M | 214M | 198M | 220M | 194M | 167M | 213.03B | 174.22B | 176.86B |
| Stock-Based Compensation | 8M | 0 | 0 | 0 | 19M | 0 | 20M | 0 | 23M | 30M | 28M | 27M | 25M | 36M | 26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | -219M | 0 | -618M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 389M | -5M | -26M | 111M | 308M | 244M | 1.74B | 883M | 1.52B | 877M | 875M | 644M | 236M | 51M | 72M | -2.75B | -2.73B | -3.25B | 2.33B | -134M | 16.21T | -14.79T | -845.86B | -603.17B |
| Working Capital Changes | 320M | 610M | 210M | 1.01B | 47M | 389M | 418M | 676M | 245M | 559M | -240M | 231M | 374M | 60M | -1.28B | 2.91B | 2.95B | 3.44B | -1.78B | 315M | -16.21T | 15.36T | 268.19B | 77.85B |
| Cash from Investing | -845M | -835M | 95M | 414M | -1.05B | -436M | -1.56B | -3.06B | -5.35B | -3.29B | -3.3B | -4.57B | -3.63B | -2.92B | -1.43B | -74M | -92M | -33M | 420M | 52M | -144M | -103.41B | -316.42B | -35.63B |
| Capital Expenditures | -41M | 0 | -133M | -72M | -86M | -62M | -60M | -44M | -80M | -109M | -49M | -102M | 0 | 0 | -71M | -86M | -74M | -62M | -46M | -40M | -72M | -79.47B | -56.37B | -29.7B |
| Acquisitions | -4M | 0 | 21M | -205M | 21M | 1.45B | -420M | 4M | -20M | 55M | -260M | 75M | 811M | 0 | 0 | 0 | 0 | 4.85B | 6.25B | 3.64B | 2.83B | 4.13T | 5.61T | 8.01T |
| Purchase of Investments | -2.66B | -2.1B | -4.64B | -3.77B | -6.55B | -10.94B | -13.51B | -11.33B | -14.01B | -13.73B | -11.08B | -10.05B | -7.04B | -6.76B | -4.87B | -45M | -11M | -51M | 66M | -31M | -6M | 14.25B | -94.79B | -11.32B |
| Sale/Maturity of Investments | 2.49B | 2.15B | 4.85B | 4.46B | 5.57B | 9.08B | 12.43B | 8.31B | 8.73B | 10.49B | 8.17B | 5.51B | 3.27B | 3.51B | 2.89B | 1.29B | 1.54B | -4.85B | -6.25B | -3.64B | -2.83B | -4.13T | -5.61T | -8.01T |
| Other Investing | -634M | -889M | -5M | -6M | -4M | 32M | -1M | -3M | 30M | 2M | -83M | -10M | -4.44B | -2.92B | -1.43B | -1.24B | -1.55B | 80M | 400M | 123M | -66M | -38.19B | -165.26B | 5.39B |
| 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 | -14M | -2M | -910.2M | -696.8M | -449.6M | -209.2M | -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 | -59.9M | -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 | -81M | -47M | -199M | 0 | 0 | 0 | 0 |
| Stock Issued | 11M | 12M | 17M | 15M | 16M | 66M | 22M | 36M | 33M | 37M | 35M | 61M | 47M | 54M | 46M | 39M | 32M | 14.9M | 22.6M | 18.3M | 38.7M | 25.81B | 91.48B | 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 | -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 | 1.44B | 347M | 201M | -580.5M | 178.6M | 188.7M | 185M | -74.21M | 0 | -453.26B |
| Net Change in Cash | 77M | 321M | 181M | 353M | -1.26B | 466M | -649M | 799M | -823M | 231M | 887M | -123M | -296M | -66M | 381M | 225M | -21M | -145M | 449M | -514M | 858M | -389.89B | -271.69B | -520.23B |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 1.15B | -1.15B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -354M | -791M | -115.8M | -246.2M | -904.4M | 244.2M | -1.18T | 0 | -77.85B |
| 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 | 1.26B | 815M | 1.33B | 471M | 861.74B | 1.13T | 1.11T |
| 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 | 1.12B | 1.26B | 815M | 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 | 746M | 581M | 790M | 852M | 926M | 748M | 895M | 942.88B | -56.37B | 48.16B |
| 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% | 1.88% | 28.4% | -26.46% | -7.28% | -7.99% | 23.8% | -16.42% | -99.91% | 1772.58% | -217.07% | - |
| FCF Margin % | 19.64% | 17.1% | 12.72% | 25.47% | 15.67% | 26.53% | 38.05% | 40.37% | 28.66% | 24.92% | 17.06% | 19.92% | 21.78% | 15.15% | 15.82% | 12.23% | 17.57% | - | 314.86% | 217.38% | 245.41% | 227.21% | -16.46% | 18.06% |
| 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 | 7.78 | 5.65 | 7.15 | 7.28 | 7.93 | 6.07 | 7.44 | 11.93K | -802.21 | 620.43 |
Social inflation casualty exposure
According to the provided quarterly data, AFGE consistently generates positive operating cash flow, with the OCF/NI ratio frequently exceeding 2.0x, which suggests that the firm's underwriting operations are highly efficient at converting premium intake into liquid cash reserves despite the inherent volatility of the P&C cycle.
The firm's ability to maintain strong operating cash flow relative to net income indicates that underwriting cash generation is a primary driver of liquidity. This consistent cash surplus appears to provide the necessary float to support both investment activities and shareholder returns without relying on external financing.
Based on the reported financial figures, AFGE actively manages its investment portfolio with quarterly purchase and sale volumes often exceeding $1 billion, reflecting a dynamic approach to reinvesting insurance float into higher-yielding assets as interest rate environments shift across the ten-quarter observation period.
The high turnover in the investment portfolio suggests that management is aggressively positioning the balance sheet to capture yield improvements. Investors should monitor whether this high-frequency trading of assets is intended to optimize duration or if it reflects a need to maintain liquidity for potential claim spikes.
As evidenced by the quarterly cash flow statements, AFGE consistently returns capital to shareholders through dividends and buybacks, with dividend payments reaching as high as $403 million in 2024Q4, demonstrating a clear commitment to distributing excess cash generated from the firm's specialty underwriting operations.
The significant dividend outflows relative to net income suggest that the company views itself as a mature cash generator rather than a high-growth reinvestment vehicle. This capital return strategy appears sustainable as long as the underwriting combined ratio remains disciplined and reserve development does not require significant capital retention.
Data from the last ten quarters reveals a notable disconnect between net income and operating cash flow, with the OCF/NI ratio swinging from -0.42 in 2024Q2 to 2.87 in 2023Q4, which implies that non-cash accruals and reserve adjustments are significantly impacting the reported earnings profile.
This volatility in the cash-to-earnings relationship warrants further investigation into the timing of reserve releases and the impact of deferred tax assets or liabilities. It appears that headline net income may not always be a reliable proxy for the actual cash-generating capacity of the underlying insurance business.
Quick answers to the most common questions about buying AFGE stock.
American Financial Group, Inc. (AFGE) 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. (AFGE) 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. (AFGE) 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. (AFGE) 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.