American Financial Group (AFG) 2025 Piper Sandler Home Office Visit presentation summary

Business overview and strategy

• Specializes in property and casualty insurance for niche markets, with over 55% of gross written premium from businesses ranked in the top 10 of their markets.

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

• Core values include integrity, discipline, specialization, and customer focus.

• Significant management ownership and innovative incentive programs align leadership with shareholder interests.

• Focused on long-term value creation through underwriting excellence, investment outperformance, and intelligent capital deployment.

Financial performance and highlights

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

• Specialty P&C combined ratio was 91.2% for 2024, outperforming peers by 7.7 points over the past decade.

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

• Book value per share, excluding AOCI, was $56.03 at year-end 2024.

• Specialty P&C net written premium grew from $5.0 billion in 2020 to $7.1 billion in 2024.

Underwriting and investment results

• Maintained a combined ratio under 94% for 12 consecutive years, with 2024 at 91.2%.

• Outperformed industry peers in underwriting and investment returns over 10- and 17-year periods.

• Investment portfolio valued at $16.0 billion as of June 2025, with 66% in fixed maturities and 95% investment grade.

• Alternative investments totaled $2.8 billion, averaging a 12% annual return over five years.

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