we discuss ideas like this as they happen in more detail. All active investors are welcome to join on a free trial and ask any question in our chat room full of sophisticated traders and investors.Today's article is about financial instruments of the company, which we already wrote about in its previous quarter. We talk about American Financial Group, Inc. (NYSE: AFG ) andDenislav leads the investing group Trade With Beta , features of the service include: frequent picks for mispriced preferred stocks and b ...

Key Takeaways AFG is positioned for growth via increased exposures, strong renewal rates, and strategic acquisitions.AFG boasts 35 consecutive quarters of renewal rate increases; 2025 combined ratio expected at 92.5%.AFG's strong capital position supports acquisitions, special dividends, and buybacks.American Financial Group, Inc. (AFG) is well-poised to gain from increased exposures, a good renewal rate environment, improved combined ratio, and prudent capital deployment.New business opportunities, increas ...

Group 1 - American Financial Group (NYSE: AFG) shares have been relatively flat this year, with a decline of over 15% from their highs in late 2024 [1] - The company has paid special dividends despite the modest performance of its shares [1] - Concerns regarding property and casualty (P&C) premium inflation are impacting the company's stock performance [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2025 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ____ to ____ Commission File No. 1-13653 AMERICAN FINANCIAL GROUP, INC. Incorporated under the Laws of Ohio IRS Employer I.D. No. 31-1544320 301 East Fourth Street, Cinci ...

Financial Data and Key Metrics Changes - AFG reported core net operating earnings of $2.14 per share, a decrease from $2.56 per share in the prior year period [9] - The annualized core operating return on equity was reported despite tempered overall results from alternative investments [6] - Net investment income, excluding alternatives, increased by 10% year over year due to higher interest rates [6][10] - The company returned over $100 million to shareholders through dividends and share repurchases [7][12] Business Line Data and Key Metrics Changes - Specialty Property and Casualty Insurance businesses generated a combined ratio of 93.1%, up from 90.5% in the prior year [15] - Gross and net written premiums in the Specialty Property and Casualty group were up 107% year over year, with a 65% increase when excluding the crop business [16] - The Specialty Casualty Group achieved a combined ratio of 93.9%, 4.8 points higher than the previous year, with gross and net written premiums increasing by 42% [20] - The Specialty Financial Group reported a combined ratio of 86.1, an improvement from 89.7 in the prior year, with gross and net written premiums up 15% and 12% respectively [22] Market Data and Key Metrics Changes - Multifamily construction starts are down approximately 20% year over year, indicating a tightening supply which is expected to drive higher rental and occupancy rates [12] - The overall renewal rate increases for the Property and Casualty Group were approximately 6%, with a 7% increase excluding workers' compensation [17] Company Strategy and Development Direction - The company continues to focus on disciplined operating philosophy and capital management to create long-term value for shareholders [13][23] - AFG is optimistic about the prospects of attractive returns from its alternative investment portfolio, expecting annual returns averaging 10% or better [12] - The company is evaluating opportunities for acquisitions, special dividends, or share repurchases as it generates significant excess capital [13] Management's Comments on Operating Environment and Future Outlook - Management noted a favorable pricing environment and increased exposures contributing to growth in Specialty Property and Casualty businesses [15] - The company remains cautious about social inflation impacts and has taken steps to non-renew certain accounts in its social services businesses [34] - Management expressed optimism regarding the crop business, citing better conditions compared to the previous year, although it is still early to predict profitability [56] Other Important Information - The company has a $16 billion investment portfolio, with approximately two-thirds invested in fixed maturities [10] - The annualized return on alternative investments was approximately 1.2% for the second quarter, down from 5.1% in the prior year [11] Q&A Session Summary Question: Insights on lender placed business within Specialty Financial - Management indicated that the lender placed property business is significant and tends to grow in a weak economy, with opportunities arising from market disruptions [27][28] Question: Comments on social inflation and non-renewals - Management confirmed that they have completed non-renewals in housing accounts and are nearing completion in daycare accounts, focusing on profitable segments [34] Question: Positioning in inland marine and trade credit business - Management noted growth opportunities in ocean marine and trade credit, although tariffs may impact the business [43][48] Question: Crop profitability outlook - Management stated it is too early to determine if the year will be above average for crop profitability, but conditions appear favorable [56] Question: Workers' compensation pricing environment - Management reported a slight decrease in overall workers' compensation pricing but noted a firming market in California [62] Question: Pricing and rate adequacy in professional lines - Management expressed cautious optimism about stabilizing pricing in public D&O business, with overall rates remaining flat [68]

Financial Data and Key Metrics Changes - AFG reported core net operating earnings of $2.14 per share, a decrease from $2.56 per share in the prior year period [8] - The annualized core operating return on equity was reported despite tempered overall results from alternative investments [6] - Net investment income, excluding alternatives, increased by 10% year over year due to higher interest rates [6][10] Business Line Data and Key Metrics Changes - Specialty Property and Casualty Insurance businesses generated a combined ratio of 93.1%, up from 90.5% in the prior year [15] - Gross and net written premiums in the Specialty Property and Casualty businesses were up 107% year over year, with a 65% increase when excluding the crop business [16] - The Specialty Casualty Group achieved a combined ratio of 93.9%, 4.8 points higher than the previous year, with gross and net written premiums increasing by 42% [20] Market Data and Key Metrics Changes - Multifamily construction starts are down approximately 20% year over year, indicating a tightening supply which is expected to drive higher rental and occupancy rates [12] - The overall renewal rate increases for the Property and Casualty Group were approximately 6%, with a 7% increase excluding workers' compensation [17] Company Strategy and Development Direction - AFG continues to focus on disciplined operating philosophy and capital management to create long-term value for shareholders [13] - The company is optimistic about the prospects of attractive returns from its alternative investment portfolio, expecting annual returns averaging 10% or better [12] - AFG is evaluating opportunities for acquisitions, special dividends, or share repurchases due to expected significant excess capital generation [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of reserves and the favorable pricing environment in the Specialty Property and Casualty businesses [15] - The company anticipates premium growth for the full year in 2025, driven by increased exposures and new business opportunities [15] - Management noted that the current economic environment presents opportunities for growth, particularly in the lender-placed property business [28] Other Important Information - AFG returned over $100 million to shareholders during the quarter, including $39 million in share repurchases and a $0.80 per share dividend [12] - The company reported a 5% decrease in overall P&C net investment income compared to the previous year due to lower returns on alternative investments [11] Q&A Session Summary Question: Insights on lender-placed business growth - Management indicated that the lender-placed property business is significant and tends to grow in weak economic conditions, with a gross written premium of about $700 million [28] Question: Nonrenewals in social inflationary lines - Management confirmed that they are completing nonrenewals in housing accounts and expect to finish nonrenewals in daycare accounts by year-end [34] Question: Growth opportunities in inland marine and trade credit - Management expressed confidence in growth opportunities in ocean marine and trade credit, despite potential impacts from tariffs [45][49] Question: Crop profitability outlook - Management stated it is too early to determine if 2025 will be above average for crop profitability, but conditions appear favorable [58] Question: Workers' compensation pricing environment - Management noted a moderating price trend in workers' compensation, with California seeing its first price increase in a decade [66] Question: Pricing and rate adequacy in professional lines - Management reported flat pricing in public D&O business but noted signs of stabilization [72]

American Financial Group, Inc. Investor Supplement - Second Quarter 2025 August 5, 2025 American Financial Group, Inc. Corporate Headquarters Great American Insurance Group Tower 301 E Fourth Street Cincinnati, OH 45202 513 579 6739 | Table of Contents - Investor Supplement - Second Quarter 2025 | 2 | | --- | --- | | Financial Highlights | 3 | | Summary of Earnings | 4 | | Earnings Per Share Summary | 5 | | Property and Casualty Insurance Segment | | | Property and Casualty Insurance - Summary Underwriting ...

Core Insights - American Financial Group, Inc. (AFG) reported second-quarter 2025 net operating earnings per share of $2.14, exceeding the Zacks Consensus Estimate by 2.9%, but reflecting a 16.4% year-over-year decline due to reduced underwriting profit and lower returns on alternative investments [1][8]. Financial Performance - Total revenues for the quarter reached $1.8 billion, marking a 3.2% increase year over year, driven by higher property & casualty (P&C) insurance net earned premiums, although it fell short of the Zacks Consensus Estimate by 9.2% [3][8]. - Net investment income decreased by 2.1% year over year to $184 million, which was above internal estimates but below the Zacks Consensus Estimate of $188 million [3][8]. - Total costs and expenses rose by 4% year over year to $1.7 billion, attributed to higher losses, loss adjustment expenses, and commissions, yet this was lower than the internal estimate of $1.8 billion [4]. Segment Analysis - The Specialty P&C Insurance segment generated $1.8 billion in net written premiums, reflecting a 7% year-over-year increase, supported by new business opportunities and favorable renewal rates [5]. - Net written premiums in the Property & Transportation Group grew by 10% year over year to $759 million, although this was below the internal estimate of $853.3 million [6]. - The Specialty Casualty Group saw a 2% year-over-year increase in net written premiums to $765 million, also falling short of the internal estimate [6]. - Specialty Financial net written premiums rose by 12% year over year to $279 million, again below the internal estimate [6]. Underwriting and Profitability - Pre-tax core operating earnings for the P&C Insurance segment were $273 million, down 14.4% year over year [7]. - The underwriting profit for the Specialty P&C Insurance segment decreased by 24.5% year over year to $114 million, with lower profits in Specialty Casualty and Property and Transportation Groups offsetting gains in Specialty Financial [7]. - The combined ratio for the Specialty Group worsened by 260 basis points year over year to 93.1%, influenced by a deterioration of 250 bps in Property & Transportation and 480 bps in Specialty Casualty, despite a 630 bps improvement in Specialty Financial [8][9]. Capital and Returns - As of June 30, 2025, AFG had total cash and investments of $16 billion, a 1.2% increase from the end of 2024, exceeding internal estimates [10]. - Long-term debt remained stable at $1.5 billion, unchanged from the end of 2024 [10]. - The book value per share, excluding accumulated other comprehensive income, was $55.74, down 0.5% from the end of 2024 [10]. - The annualized return on equity for the second quarter was 15%, contracting by 300 basis points year over year [11]. Dividend Policy - AFG paid cash dividends of 80 cents per share during the second quarter [12].

Exhibit 99.2 American Financial Group, Inc. Investor Supplement - Second Quarter 2025 August 5, 2025 American Financial Group, Inc. Corporate Headquarters Great American Insurance Group Tower 301 E Fourth Street Cincinnati, OH 45202 513 579 6739 American Financial Group, Inc. Table of Contents - Investor Supplement - Second Quarter 2025 | Section | Page | | --- | --- | | Table of Contents - Investor Supplement - Second Quarter 2025 | 2 | | Financial Highlights | 3 | | Summary of Earnings | 4 | | Earnings Pe ...

American Financial Group (AFG) came out with quarterly earnings of $2.14 per share, beating the Zacks Consensus Estimate of $2.08 per share. This compares to earnings of $2.56 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +2.88%. A quarter ago, it was expected that this property and casualty insurer would post earnings of $2.17 per share when it actually produced earnings of $1.81, delivering a surprise of -16.59%.Over the l ...