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Mar 31, 2025
AFG Q1 2025 Earnings Report
AFG reported a drop in earnings and underwriting profits despite growth in select segments.
Key Takeaways
American Financial Group's Q1 2025 results showed lower earnings compared to last year, impacted by increased catastrophe losses and reduced investment returns, though core operating earnings remained strong and capital was significantly returned to shareholders.
Net income was $154 million, down from $242 million in Q1 2024.
Core net operating earnings reached $152 million.
Special dividends and buybacks returned $292 million to shareholders.
Catastrophe losses from California wildfires pressured underwriting margins.
Revenue by Segment
Forward Guidance
AFG expects full-year premium growth and aims to maintain underwriting discipline while navigating economic and competitive headwinds.
Positive Outlook
- Continued premium growth anticipated for full year 2025
- Strong rate increases in inflation-sensitive lines
- Selective underwriting to improve long-term profitability
- Specialty Financial Group saw 18% net premium growth
- Capital deployment remains focused on high-return opportunities
Challenges Ahead
- Increased catastrophe losses, particularly from wildfires
- Lower investment income due to alternative portfolio underperformance
- Competitive pricing pressure in transportation and executive liability lines
- Book value per share declined slightly from end of 2024
Historical Earnings Impact
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Avg. Return Before/After Earnings
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