American Financial Group (AFG) Q3 2025 earnings summary

Executive summary

• Core net operating earnings rose to $224 million ($2.69 per share), up 16% year-over-year, with net earnings at $215 million ($2.58 per share) after non-core items.

• Annualized core operating return on equity reached 19% for Q3 2025, up from 16.2% in the prior year.

• Net investment income increased 5% year-over-year, supported by higher interest rates and larger invested asset balances.

• Board declared a $2.00 per share special dividend, payable November 26, 2025.

Financial highlights

• Underwriting profit in specialty P&C insurance grew 19%, with a 93 combined ratio, improving by over 1 point year-over-year.

• Pretax core operating earnings increased to $280 million from $245 million year-over-year.

• Gross and net written premiums declined 2% and 4% year-over-year, mainly due to crop premium timing; excluding crop, gross written premiums grew 3%.

• Book value per share (excluding AOCI) was $57.59 at September 30, 2025; book value plus dividends grew 14.9% for the nine months.

• Q3 2025 catastrophe losses were $23 million, down from $90 million in Q3 2024.

Outlook and guidance

• Premium growth for full year 2025 expected in below single digits, with a rebound projected for 2026 due to new startups and completed underwriting actions.

• Optimism for long-term returns from alternative investments, targeting annual returns averaging 10% or better.

• Operations expected to generate significant excess capital through 2025 and into 2026, supporting further acquisitions, special dividends, or share repurchases.

• Management expects continued premium growth and strong underwriting results, supported by a favorable P&C market and higher investment yields.

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