American Financial (AFG) Reports Q1 Earnings: What Key Metrics Have to Say

Core Insights - American Financial Group (AFG) reported a revenue of $1.86 billion for the quarter ended March 2025, reflecting a decrease of 1.4% year-over-year and falling short of the Zacks Consensus Estimate of $1.93 billion, resulting in a surprise of -3.79% [1] - The earnings per share (EPS) for the quarter was $1.81, down from $2.76 in the same quarter last year, with an EPS surprise of -16.59% against the consensus estimate of $2.17 [1] Financial Performance Metrics - The company’s shares have returned +10.4% over the past month, compared to the Zacks S&P 500 composite's +11.5% change, indicating a performance in line with the broader market [3] - In the Property and Transportation segment, the Loss and LAE Ratio was reported at 62.1%, better than the estimated 66.8% [4] - The Underwriting Expense Ratio for Property and Transportation was 30.4%, slightly above the average estimate of 30.1% [4] - The Combined Ratio for Property and Transportation was 92.5%, outperforming the estimated 96.8% [4] - In the Specialty Casualty segment, the Loss and LAE Ratio was 67.6%, worse than the estimated 62.8% [4] - The Underwriting Expense Ratio for Specialty Casualty was 30%, above the average estimate of 27.7% [4] - The Combined Ratio for Property and Casualty - Specialty was reported at 94%, in line with the average estimate of 94.7% [4] - The Underwriting Expense Ratio for Specialty Financial was 45.9%, better than the estimated 46.9% [4] Revenue and Premiums - Net investment income was reported at $173 million, below the average estimate of $203.73 million, representing a year-over-year decline of 12.6% [4] - Net earned premium in the Property and Transportation segment was $500 million, significantly lower than the estimated $675.75 million, reflecting a -2.5% change year-over-year [4] - In the Specialty Casualty segment, net earned premium was $794 million, exceeding the average estimate of $759.90 million, with an 8.8% year-over-year increase [4] - Specialty Financial's net earned premium was reported at $286 million, above the average estimate of $270.42 million, indicating a year-over-year increase of 17.7% [4] - Other income (loss) was reported at $27 million, below the average estimate of $37.94 million, representing a year-over-year decline of 30.8% [4]