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Sep 30
AFG Q3 2025 Earnings Report
AFG reported strong Q3 2025 results with higher net income and core EPS, supported by underwriting profits and increased investment income.
Key Takeaways
American Financial Group delivered improved results in Q3 2025, with higher net income and strong core EPS growth driven by underwriting and investment gains, despite a decline in premiums.
Net income rose to $215 million, up from $181 million a year ago.
Core EPS increased 16% to $2.69, reflecting improved underwriting and investment income.
Specialty P&C underwriting profit grew 19% YoY, despite lower gross and net premiums.
Combined ratio improved to 93.0% due to reduced catastrophe losses and favorable reserve development.
AFG
AFG
AFG Revenue by Segment
Revenue by Segment
P&C Net Earned Premiums Revenue
CapyFin.comNet Investment Income Revenue
CapyFin.comRealized Gains on Securities Revenue
CapyFin.comMgd Inv Entities Income Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
AFG expects premium growth to rebound in 2026, supported by start-up investments and improved underwriting discipline, while maintaining a strong capital position.
Positive Outlook
- Strong capital position with continued dividend payouts and potential share repurchases.
- Growth anticipated from new start-ups and recent underwriting actions.
- Mid-teen rate increases in social inflation-exposed lines.
- Improved crop insurance profitability expected in Q4.
- Continued focus on niche expansion through M&A and organic growth.
Challenges Ahead
- Flat or declining premiums in some business lines due to timing and ceding decisions.
- Declines in gross/net premiums partly due to crop premium timing.
- Negative renewal pricing trend in Specialty Financial segment.
- Underperformance in some social inflation-exposed businesses.
- Workers’ comp pricing increases remained modest.