American Financial (US:AFG) ZACKS·2025-02-05 01:30Financial Performance - American Financial Group (AFG) reported revenue of $2.08 billion for the quarter ended December 2024, reflecting a year-over-year increase of 7.2% [1] - Earnings per share (EPS) for the quarter was $3.12, up from $2.84 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.01 billion by 3.46%, while the EPS fell short of the consensus estimate of $3.20 by 2.50% [1] Key Metrics - The Property and Casualty (P&C) underwriting expense ratio was 25.3%, better than the average estimate of 26.5% from five analysts [4] - The P&C loss and LAE (Loss Adjustment Expense) ratio was reported at 63.8%, compared to the average estimate of 61.4% [4] - The combined ratio for Specialty was 89%, slightly worse than the average estimate of 87.8% [4] Revenue Breakdown - P&C insurance net earned premiums were $1.85 billion, exceeding the average estimate of $1.79 billion, representing a year-over-year change of 6.8% [4] - Net investment income was reported at $194 million, surpassing the average estimate of $188.38 million, with a year-over-year increase of 22% [4] - Specialty Financial net earned premium was $279 million, compared to the average estimate of $261.83 million, marking a 14.3% increase year-over-year [4] Stock Performance - Shares of American Financial have returned +3.3% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]