American Financial Group (AFG) 2025 Oppenheimer Virtual Insurance Summit 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.

• Emphasizes entrepreneurial culture, strategic alignment of interests, and superior capital management.

• Core values include integrity, discipline, specialization, and customer focus, shaping business priorities and expectations.

• Strategic alignment is reinforced by significant management ownership and incentive-based programs for business leaders.

Financial performance and capital management

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

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

• Returned $791M to shareholders in 2024 and $399M in the first half of 2025 through dividends and share repurchases.

• Regular annual dividend increased for the 20th consecutive year, with a 12.4% CAGR since 2014.

• Maintains a strong balance sheet with above-target capital levels and no debt maturities until 2030.

Underwriting and investment outperformance

• Outperformed peers by 7.7 points in combined ratio over the past decade, with a 10-year average of 90.9%.

• Specialty P&C pricing trends have enabled the company to stay ahead of loss ratio trends and maintain reserve adequacy.

• Investment portfolio valued at $16B, with 95% investment grade fixed maturities and a short duration of 2.8 years.

• Alternative investments total $2.8B, with a five-year average annual return of 12%.

• Achieved 1.31% annual investment outperformance over the industry for 17 years, equating to $2B in pre-tax value.