American Financial Group (AFG) Q2 2025 earnings summary

Executive summary

• Core net operating earnings for Q2 2025 were $179 million ($2.14 per share), down from $215 million ($2.56 per share) in Q2 2024, reflecting lower underwriting profit and alternative investment returns.

• Net earnings for the quarter were $174 million ($2.07 per share), down from $209 million ($2.49 per share) in Q2 2024.

• Annualized core operating return on equity was 15.5% for Q2 2025, compared to 18.5% in Q2 2024.

• Over $100 million was returned to shareholders via dividends and share repurchases in Q2 2025.

• Book value per share at June 30, 2025, was $54.15; growth in book value per share plus dividends was 4.7% for the quarter.

Financial highlights

• Net investment income (excluding alternatives) rose 10% year-over-year, but overall P&C net investment income declined 5% due to lower alternative returns.

• Net earned premiums for Q2 2025 were $1.65 billion, up from $1.59 billion in Q2 2024.

• Combined ratio for Q2 2025 was 93.1%, up from 90.5% in Q2 2024.

• Book value per share excluding AOCI was $55.74 at June 30, 2025.

• Catastrophe losses were $38 million in Q2 2025 (2.3 points on combined ratio).

Outlook and guidance

• Management expects continued premium growth for the full year 2025, supported by favorable pricing and new business opportunities.

• Long-term alternative investment returns are expected to average 10% or better.

• Operations are expected to generate significant excess capital for the remainder of 2025, supporting potential acquisitions, special dividends, or share repurchases.

• Forward-looking statements are subject to risks and uncertainties, including those detailed in SEC filings.

• Economic and social inflation, supply chain disruptions, and macro factors may impact premiums, loss trends, and investment returns.