American Financial (AFG) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - American Financial Group (AFG) reported $1.86 billion in revenue for Q2 2025, a year-over-year increase of 3.2%, but fell short of the Zacks Consensus Estimate of $2.05 billion by 9.22% [1] - The company's EPS for the quarter was $2.14, down from $2.56 a year ago, but exceeded the consensus estimate of $2.08 by 2.88% [1] Financial Performance Metrics - The Property and Transportation segment reported a Loss and LAE Ratio of 67.2%, slightly above the average estimate of 66.7% [4] - The Combined Ratio for Property and Transportation was 95.2%, better than the estimated 96.4% [4] - The Underwriting Expense Ratio for Property and Transportation was 28%, below the average estimate of 29.7% [4] - Specialty Financial's Underwriting Expense Ratio was 48%, in line with the average estimate of 48.2% [4] - Specialty Financial's Combined Ratio was 86.1%, outperforming the average estimate of 89.8% [4] - Specialty Casualty's Combined Ratio was 93.9%, worse than the average estimate of 91.8% [4] - The Property and Casualty segment had a Loss and LAE Ratio of 61.1%, better than the average estimate of 61.7% [4] Revenue Breakdown - Net investment income was reported at $184 million, slightly below the average estimate of $187.55 million, representing a year-over-year decline of 2.1% [4] - Net earned premiums totaled $1.65 billion, below the estimated $1.79 billion, but showed a year-over-year increase of 3.9% [4] - Specialty Casualty's net earned premium was $799 million, exceeding the average estimate of $788.83 million, with an 8.1% year-over-year increase [4] - Property and Transportation's net earned premium was $576 million, below the average estimate of $688.54 million, reflecting a year-over-year increase of 6.1% [4] - Specialty Financial's net earned premium was $272 million, slightly below the average estimate of $277.55 million, with a year-over-year increase of 12.9% [4] Stock Performance - Shares of American Financial have returned -2.2% over the past month, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]