American Financial Group (AFG) 2025 Keefe Bruyette & Woods Insurance Conference presentation summary

Business overview and strategy

• Over 55% of gross written premium comes from businesses with top 10 market rankings in their segments, reflecting strong market positioning and specialization.

• Maintained a specialty P&C combined ratio under 94% for 12 consecutive years, with a 91.2% ratio for 2024.

• Focuses on niche markets with diversified specialty insurance offerings, including property, transportation, casualty, and financial lines.

• Strategic alignment of interests through significant management ownership and incentive-based programs for business leaders.

• History of targeted acquisitions, divestitures, and start-ups to focus on core specialty P&C operations.

Financial performance and capital management

• Achieved record premium production in 2024, with $10.5 billion in gross written premiums and $7.1 billion in net written premiums.

• Core net operating earnings for 2024 were $902 million, with a core operating ROE of 19.3%.

• Returned $399 million to shareholders in the first half of 2025, including dividends and share repurchases.

• Maintained strong financial ratings (A+ from AM Best and S&P, A1 from Moody's) and above-target capital levels.

• Regular annual dividend increased for the 20th consecutive year, with $6.3 billion returned to shareholders over five years.

Underwriting and investment results

• Outperformed peers by 7.7 points in combined ratio over the past decade, with a 4.9–10.4 point annual advantage.

• Pretax P&C returns consistently above industry, with 24.9% in 2024 and 19.2% average over 10 years.

• Investment portfolio valued at $16.0 billion, with 66% in fixed maturities (95% investment grade) and 17% in alternatives.

• Achieved 1.31% annual investment outperformance over the industry for 17 years, equating to $2.0 billion in pre-tax value.

• Short duration fixed maturity portfolio positioned to benefit from higher interest rates, with a 5.24% annualized yield in Q2 2025.