American Financial (AFG) Reports Q3 Earnings: What Key Metrics Have to Say

Core Insights - American Financial Group (AFG) reported a revenue of $2.25 billion for the quarter ended September 2025, reflecting a decrease of 1.5% year-over-year, while EPS increased to $2.69 from $2.31 in the same quarter last year, indicating a positive growth in earnings [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.06 billion by 8.87%, and the EPS surpassed the consensus estimate of $2.35 by 14.47% [1] Financial Performance Metrics - AFG's shares have returned -11.7% over the past month, contrasting with the Zacks S&P 500 composite's increase of 2.1%, and the stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3] - In the Property and Transportation segment, the Loss and LAE Ratio was reported at 77.8%, better than the average estimate of 78.3% [4] - The Underwriting Expense Ratio for Property and Transportation was 16.3%, outperforming the estimated 18.4% [4] - The Combined Ratio for Property and Transportation stood at 94.1%, lower than the average estimate of 96.7% [4] - In the Specialty Casualty segment, the Loss and LAE Ratio was 66.8%, worse than the average estimate of 64.8% [4] - The Underwriting Expense Ratio for Specialty Casualty was reported at 29%, exceeding the estimated 27.4% [4] - The Combined Ratio for Property and Casualty - Specialty was 93%, better than the average estimate of 94.2% [4] - The Underwriting Expense Ratio for Specialty Financial was 49.3%, higher than the estimated 46.3% [4] - The net earned premium for Property and Transportation was $576 million, significantly below the average estimate of $755.54 million, representing a year-over-year decline of 41.3% [4] - The net earned premium for Specialty Casualty was $810 million, surpassing the estimated $784.04 million, with an 8.9% increase year-over-year [4] - Total net earned premiums amounted to $2.01 billion, compared to the estimated $1.86 billion, reflecting a 2% decrease year-over-year [4] - Net investment income was reported at $205 million, exceeding the estimated $191.38 million, with a year-over-year increase of 2.5% [4] - The net earned premium for Specialty Financial was $268 million, slightly below the average estimate of $276.54 million, indicating a year-over-year change of -0.4% [4]