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Dec 31, 2025
AFG Q4 2025 Earnings Report
American Financial Group reported higher fourth-quarter earnings driven by record underwriting profit despite lower alternative investment returns.
Key Takeaways
AFG delivered strong Q4 2025 results with record underwriting profit and higher net earnings, with revenue of $1.81 billion from net earned premiums, partially offset by weaker alternative investment returns.
Fourth-quarter net earnings increased year over year to $299 million.
Net earned premiums totaled $1.81 billion in the quarter.
Core operating earnings per share improved to $3.65.
The specialty P&C combined ratio improved to 84.1%.
Revenue by Segment
Forward Guidance
AFG does not provide formal guidance, but management outlined expectations based on its 2026 business plan assumptions.
Positive Outlook
- Expected core operating EPS of approximately $11.00 in 2026.
- Targeted core operating ROE of about 18%.
- Projected net written premium growth of 3% to 5%.
- Assumed combined ratio of approximately 92.5%.
- Long-term optimism for alternative investment returns.
Challenges Ahead
- Quarterly earnings may be volatile due to alternative investments.
- Results remain sensitive to catastrophe losses.
- Premium growth depends on market and pricing conditions.
- Macroeconomic and interest rate uncertainty could impact investments.
- Competitive pressures may affect underwriting margins.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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