On this page of StockholderLetter.com we present the latest annual shareholder letter from AMERICAN FINANCIAL GROUP INC — ticker symbol AFG. Reading current and past AFG letters to shareholders can bring important insights into the investment thesis.

 •  4/3/2026 Letter Continued (Full PDF)
 •  4/3/2023 AFG Stockholder Letter
 •  4/4/2024 AFG Stockholder Letter
 •  4/4/2025 AFG Stockholder Letter
 •  More "Insurance Brokers" Category Stockholder Letters
 •  AFG Benford's Law Stock Score = 73

AFG Shareholder/Stockholder Letter Transcript:

Specialty Property and
Casualty Insurance
Annual Report 2025


2025 FINANCIAL HIGHLIGHTS
Delivering value
to shareholders
TOTAL CAPITAL RETURNED
TO SHAREHOLDERS
RECORD GROSS
WRITTEN PREMIUMS
707M
10.7B


CORE OPERATING
RETURN ON EQUITY
SPECIALTY P&C
GROUP GAAP
COMBINED RATIO
18.2
91.0

1
2 0 25 A N N UA L R E P O R T
GROWTH IN
ADJUSTED BOOK
VALUE PER SHARE
EXCLUDING AOCI
PLUS DIVIDENDS

17.2


TO OUR FELLOW
SHAREHOLDERS,
AFG continued its longstanding record of strong financial
performance and capital management in 2025, underscoring
its position as a leading Specialty property and casualty
(P&C) insurance provider while creating value for our
shareholders. These results are crucial to ensuring the
ongoing trust and confidence of our policyholders, agents,
shareholders and business partners.
DURING 2025, AFG:

Reported full-year net earnings of $842 million, or $10.08 per share,
generating a strong return on equity of 17.8%

Produced full-year core net operating earnings of $860 million, or
$10.29 per share, and a core operating return on equity of 18.2%

Grew book value per share, excluding accumulated other comprehensive
income (AOCI), to $58.38 as of December 31, 2025

Delivered $9.63 per share in total value creation, measured as the change
in book value per share excluding AOCI plus dividends   an impressive 17.2%
10-YEAR VIEW OF TOTAL VALUE CREATION (Growth in BVPS, excluding AOCI + Dividends)
As of December 31
$90
80
70
12%
CAGR
60
50
40
30
20
10
0
2015
2
2016
2017
2018
A M E R I C A N F I N A N C I A L G R O U P, I N C .
2019
2020
2021
2022
2023
2024
2025

BUSINESS
HIGHLIGHTS
SPECIALTY P&C
OPERATIONS
Insurance has an indelible impact on our economy and plays a critical role in helping our
policyholders manage enterprise risk. Public and private businesses, non-profit organizations
and other commercial entities rely on us to provide the right mix of products and services
needed to recover and restore operations following covered losses, enabling them to get back
to work and serve their customers as seamlessly as possible.
Our portfolio of Specialty P&C insurance businesses dates back more than 150 years, and our
long-standing commitment to specialization, innovation, and customer focus has helped to ensure
we are ready when our policyholders need us most.
These Specialty P&C businesses are leaders in the markets they serve, with more than 55% of
our gross written premium produced by businesses with top-10 market rankings (based on gross
written premiums). We have developed this market leadership through years of specialty
knowledge and expertise. We offer a wide range of coverage solutions, backed by our industry
knowledge and experienced claims handling. This mix of diverse P&C businesses enables us to
successfully navigate various economic cycles, nimbly react to market opportunities, and deliver
exceptional service to our policyholders and agents. Over the past 10 years, the statutory
combined operating ratio of our P&C operations has outperformed the P&C commercial lines
industry by an average of more than seven and a half points.
An increasingly sophisticated business environment underscores the value of Specialty
insurance offerings. In addition to our own in-house underwriting and claims expertise, we
work closely with the specialist independent agents and brokers who distribute our products
to ensure that the right products are available to meet policyholders    evolving risk profiles.
Our Specialty P&C operations produced a calendar year GAAP combined ratio of 91.0%
in 2025 and our P&C Segment   s statutory combined operating ratio outperformed the
composite commercial P&C insurance industry by four and a half points. These results reflect
exceptionally strong performance by our crop insurance operations and lower year-over-year
catastrophe losses.
In 2025, gross written premiums grew 2%, to $10.7 billion, and net written premiums were flat,
at $7.1 billion. Our growth in gross written premiums established a new company record for
premium production. We grew our top line through new business opportunities, strong renewal
rates and increased exposures.
3
2 0 25 A N N UA L R E P O R T

4/3/2026 Letter Continued (Full PDF)

 

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.