AFG

MKT CAP $11.8BP/E 12.5DIV YIELD 4.86%FCF YIELD —REV TTM $8.3B −0.2%NET INCOME $953M +24.7%NET DEBT $383M52W 124.18 – 148.71NEXT EARNINGS Nov 3 EST.SEC XBRL · TTM TO Invalid Date

How AFG rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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New in FY2025

AFG’s insurance subsidiaries continue to have capital at or in excess of the levels required by ratings agencies in order to maintain their current ratings, and the parent company does not have any debt maturities until 2030.
December 31, 2025 2024 Principal amount of long-term debt $ 1,848 $ 1,498 Total capital 6,718 6,204 Ratio of debt to total capital: Including subordinated debt 27.5 % 24.1 % Excluding subordinated debt 17.5 % 13.3 % The ratio of debt to total capital is a non-GAAP measure that management believes is useful for investors, analysts and ratings agencies to evaluate AFG’s financial strength and liquidity and to provide insight into how AFG finances its operations.
At December 31, 2025, the capital ratios of all AFG insurance companies exceeded the RBC requirements.
Cash flows from operating, investing and financing activities as detailed in AFG’s Consolidated Statement of Cash Flows are shown below (in millions): Year ended December 31, 2025 2024 2023 Net cash provided by operating activities $ 1,533 $ 1,152 $ 1,970 Net cash provided by (used in) investing activities (835) 95 414 Net cash used in financing activities (377) (1,066) (2,031) Net change in cash and cash equivalents $ 321 $ 181 $ 353 Net Cash Provided by Operating Activities AFG’s property and casualty insurance operations typically produce positive net operating cash flows as premiums collected and investment income exceed policy acquisition costs, claims payments and operating expenses.
AFG’s net cash provided by operating activities is impacted by the level and timing of premiums, claim and expense payments and recoveries from reinsurers.
The changes in the assets and liabilities of the managed investment entities included in operating activities increased cash flows from operating activities by $70 million in 2025, reduced cash flows from operating activities by $80 million in 2024 and increased cash flows from operating activities by $305 million in 2023, resulting in a $150 million increase in cash flows from operating activities in 2025 compared to 2024 and a $385 million decrease in cash flows from operating activities in 2024 compared to 2023.
Excluding the impact of the managed investment entities, net cash provided by operating activities was $1.46 billion, $1.23 billion and $1.67 billion in 2025, 2024 and 2023, respectively.
Net investment activity in the managed investment entities was a $10 million use of cash in 2025 compared to a $377 million source of cash in 2024, resulting in a $387 million decrease in net cash provided by investing activities in 2025 compared to 2024.
Excluding the activity of the managed investment entities, investing activities resulted in uses of cash of $825 million in 2025 and $282 million in 2024, an increase of $543 million reflecting the investment of cash in fixed maturity investments.
Net cash provided by investing activities was $95 million in 2024 compared to $414 million in 2023, a decrease of $319 million.
Net cash used in financing activities was $377 million in 2025 compared to $1.07 billion in 2024, a decrease of $689 million.
The net proceeds from AFG’s issuance of $350 million in 5.00% Senior Notes in September 2025 was a $344 million source of cash in 2025.
AFG paid cash dividends totaling $606 million in 2025 compared to $788 million in 2024, resulting in a $182 million decrease in net cash used in financing activities in 2025 compared to 2024.
In 2025, AFG repurchased $99 million of its Common Stock compared to no repurchases in 2024.
Retirements of managed investment entity liabilities exceeded issuances by $28 million in 2025 compared to $295 million in 2024, resulting in a $267 million decrease in net cash used in financing activities in 2025 compared to 2024.
In September 2025, AFG issued $350 million in 5.00% Senior Notes due in September 2035.
The net proceeds of this offering were used for general corporate purposes.
During 2025, AFG repurchased 799,398 shares of its Common Stock for $99 million and paid special cash dividends totaling $334 million ($2.00 per share in both March and November).
On February 3, 2026, AFG declared a special cash dividend of $1.50 per share, payable on February 25, 2026.
The aggregate amount of this special dividend will be approximately $125 million.
At December 31, 2025, AFG (parent) held approximately $529 million in cash and investments.
There were no borrowings under AFG’s credit facility, or under any other parent company short-term borrowing arrangements, during 2025 or 2024.
At December 31, 2025, AFG’s insurance companies owned equity securities with a fair value of $785 million.
Property and casualty reserves for unpaid losses and loss adjustment expenses were $15.09 billion at December 31, 2025 and include case reserves and claims incurred but not reported (“IBNR”).
Condensed Parent Only Cash Flows AFG’s parent holding company only condensed cash flows from operating, investing and financing activities are shown below (in millions): Year ended December 31, 2025 2024 2023 Net cash provided by operating activities $ 582 $ 712 $ 719 Net cash provided by (used in) investing activities (182) 72 225 Net cash used in financing activities (348) (769) (901) Net change in cash and cash equivalents $ 52 $ 15 $ 43 Parent Net Cash Provided by Operating Activities Parent holding company cash flows from operating activities consist primarily of dividends and tax payments received from AFG’s insurance subsidiaries, reduced by tax payments to the IRS and holding company interest and other expenses.
Parent holding company net cash provided by operating activities was $582 million in 2025 compared to $712 million in 2024 and $719 million in 2023.
The decrease in net cash provided by operating activities in 2025 compared to 2024 and 2023 was due primarily to lower cash dividends received from subsidiaries.
Parent Net Cash Provided by (Used in) Investing Activities Parent holding company investing activities consist of capital contributions to and returns of capital from subsidiaries and parent company investment activity.
Parent holding company net cash used in investing activities was $182 million in 2025 compared to net cash provided by investing activities of $72 million in 2024 and $225 million in 2023.
The $254 million increase in net cash used in investing activities reflects the investment of cash in fixed maturity securities and lower maturities and redemptions of investments in 2025 compared to 2024.
The $153 million decrease in net cash provided by investing activities in 2024 compared to 2023 was due primarily to lower balances of invested assets.
Parent Net Cash Used in Financing Activities Parent company financing activities consist primarily of the issuance and retirement of long-term debt, repurchases of AFG Common Stock and dividends to shareholders.
Significant long-term debt and Common Stock transactions are discussed above under “Parent Holding Company Liquidity.” Parent holding company net cash used in financing activities was $348 million in 2025 compared to $769 million in 2024 and $901 million in 2023.
The $421 million decrease in net cash used in financing activities in 2025 compared to 2024 reflects $344 million in net proceeds from AFG’s issuance of $350 million in 5.00% Senior Notes in September 2025 and lower dividends paid to shareholders (due primarily to special dividends of $4.00 per share in 2025 compared to special dividends of $6.50 per share in 2024), partially offset by $99 million in repurchases of Common Stock in 2025 compared to no repurchases in 2024.
The $132 million decrease in net cash used in financing activities in 2024 compared to 2023 reflects no repurchases of Common Stock in 2024 compared to repurchases of Common Stock of $213 million in 2023, partially offset by higher dividends paid to shareholders (due primarily to special dividends of $6.50 per share in 2024 compared to special dividends of $5.50 per share in 2023).
AFG’s investment portfolio at December 31, 2025, contained $11.05 billion in fixed maturity securities classified as available for sale and carried at fair value with unrealized gains and losses included in accumulated other comprehensive income (loss) and $91 million in fixed maturities classified as trading with holding gains and losses included in net investment income.
In addition, AFG’s investment portfolio includes $567 million in equity securities carried at fair value with holding gains and losses included in realized gains (losses) on securities and $218 million in equity securities carried at fair value with holding gains and losses included in net investment income.
AFG’s investment portfolio also includes $2.42 billion in investments accounted for using the equity method (limited partnerships and similar investments).
At December 31, 2025, the average life of AFG’s fixed maturities was about 4.4 years.
For AFG’s fixed maturity portfolio, approximately 90% was priced using pricing services at December 31, 2025 and 3% was priced using non-binding broker quotes.

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Gone since FY2024

AFG’s insurance subsidiaries continue to have capital at or in excess of the levels required by ratings agencies in order to maintain their current ratings, and the parent company does not have any near-term debt maturities.
December 31, 2024 2023 Principal amount of long-term debt $ 1,498 $ 1,498 Total capital 6,204 6,075 Ratio of debt to total capital: Including subordinated debt 24.1 % 24.7 % Excluding subordinated debt 13.3 % 13.5 % The ratio of debt to total capital is a non-GAAP measure that management believes is useful for investors, analysts and ratings agencies to evaluate AFG’s financial strength and liquidity and to provide insight into how AFG finances its operations.
At December 31, 2024, the capital ratios of all AFG insurance companies exceeded the RBC requirements.
Cash flows from operating, investing and financing activities as detailed in AFG’s Consolidated Statement of Cash Flows are shown below (in millions): Year ended December 31, 2024 2023 2022 Net cash provided by operating activities $ 1,152 $ 1,970 $ 1,153 Net cash provided by (used in) investing activities 95 414 (1,051) Net cash used in financing activities (1,066) (2,031) (1,361) Net change in cash and cash equivalents $ 181 $ 353 $ (1,259) Net Cash Provided by Operating Activities AFG’s property and casualty insurance operations typically produce positive net operating cash flows as premiums collected and investment income exceed policy acquisition costs, claims payments and operating expenses.
AFG’s net cash provided by operating activities is impacted by the level and timing of property and casualty premiums, claim and expense payments and recoveries from reinsurers.
The changes in the assets and liabilities of the managed investment entities included in operating activities reduced cash flows from operating activities by $80 million in 2024, increased cash flows from operating activities by $305 million in 2023 and reduced cash flows from operating activities by $183 million in 2022, resulting in a $385 million decrease in cash flows from operating activities in 2024 compared to 2023 and a $488 million increase in cash flows from operating activities in 2023 compared to 2022.
Excluding the impact of the managed investment entities, net cash provided by operating activities was $1.23 billion, $1.67 billion and $1.34 billion in 2024, 2023 and 2022, respectively.
Net cash provided by investing activities was $414 million in 2023 compared to net cash used by investing activities of $1.05 billion in 2022, an increase in cash provided by investing activities of $1.47 billion.
Net investment activity in the managed investment entities was a $762 million source of cash in 2023 compared to a $180 million use of cash in 2022, resulting in a $942 million increase in net cash provided by investing activities in 2023 compared to 2022.
Excluding the acquisition of CRS in 2023 and the activity of the managed investment entities, investing activities resulted in uses of cash of $114 million in 2023 and $871 million in 2022, reflecting the opportunistic investment of cash on hand in the property and casualty operations during the rising interest rate environment in 2022.
Net cash used in financing activities was $2.03 billion in 2023 compared to $1.36 billion in 2022, an increase of $670 million.
Debt retirements were a $21 million use of cash in 2023 compared to $477 million in 2022, a decrease of $456 million.
In 2023, AFG repurchased $213 million of its Common Stock compared to $11 million in 2022, resulting in a $202 million increase in net cash used in financing activities in 2023 compared to 2022.
AFG paid cash dividends totaling $684 million in 2023 compared to $1.21 billion in 2022, resulting in a $529 million decrease in net cash used in financing activities in 2023 compared to 2022.
Retirements of managed investment entity liabilities exceeded issuances by $1.13 billion in 2023 compared to issuances exceeding retirements by $324 million in 2022, resulting in a $1.45 billion increase in net cash used in financing activities in 2023 compared to 2022.
During 2022, AFG repurchased 89,368 shares of its Common Stock for $11 million and paid special cash dividends totaling $1.02 billion ($2.00 per share in March, $8.00 per share in May and $2.00 per share in November).
In 2022, AFG repurchased $472 million principal amount of its senior notes for $477 million cash.
At December 31, 2024, AFG (parent) held approximately $389 million in cash and investments.
There were no borrowings under AFG’s credit facility, or under any other parent company short-term borrowing arrangements, during 2024 or 2023.
At December 31, 2024, AFG’s insurance companies owned equity securities with a fair value of $751 million.
Property and casualty reserves for unpaid losses and loss adjustment expenses were $14.18 billion at December 31, 2024 and include case reserves and claims incurred but not reported (“IBNR”).
Condensed Parent Only Cash Flows AFG’s parent holding company only condensed cash flows from operating, investing and financing activities are shown below (in millions): Year ended December 31, 2024 2023 2022 Net cash provided by operating activities $ 712 $ 719 $ 327 Net cash provided by investing activities 72 225 992 Net cash used in financing activities (769) (901) (1,683) Net change in cash and cash equivalents $ 15 $ 43 $ (364) Parent Net Cash Provided by Operating Activities Parent holding company cash flows from operating activities consist primarily of dividends and tax payments received from AFG’s insurance subsidiaries, reduced by tax payments to the IRS and holding company interest and other expenses.
Parent holding company net cash provided by operating activities was $712 million in 2024 compared to $719 million in 2023 and $327 million in 2022.
The $7 million decrease in net cash provided by operating activities in 2024 as compared to 2023 and the $392 million increase in net cash provided by operating activities in 2023 as compared to 2022 were due primarily to higher cash dividends received from subsidiaries in 2023 compared to the other periods.
Parent Net Cash Provided by Investing Activities Parent holding company investing activities consist of capital contributions to and returns of capital from subsidiaries and parent company investment activity.
Parent holding company net cash provided by investing activities was $72 million in 2024, $225 million in 2023 and $992 million in 2022.
The $153 million decrease in net cash provided by investing activities in 2024 as compared to 2023 was due primarily to lower balances of invested assets.
The $767 million decrease in net cash provided by investing activities in 2023 as compared to 2022 was due to the increase in capital contributions to subsidiaries to fund the purchase of CRS in July 2023 and lower balances of invested assets.
Parent Net Cash Used in Financing Activities Parent company financing activities consist primarily of the issuance and retirement of long-term debt, repurchases of AFG Common Stock, dividends to shareholders, and, to a lesser extent, proceeds from employee stock option exercises.
Significant long-term debt and common stock transactions are discussed above under “Parent Holding Company Liquidity.” Parent holding company net cash used in financing activities was $769 million in 2024 compared to $901 million in 2023 and $1.68 billion in 2022.
The $132 million decrease in net cash used in financing activities in 2024 as compared to 2023 reflects no repurchases of common stock in 2024 compared to repurchases of common stock of $213 million in 2023, partially offset by higher dividends paid to shareholders (due primarily to special dividends of $6.50 per share in 2024 compared to special dividends of $5.50 per share in 2023).
The $782 million decrease in net cash used in financing activities in 2023 as compared to 2022 reflects lower dividends paid to shareholders (due primarily to special dividends of $5.50 per share in 2023 compared to special dividends of $12.00 per share in 2022) and lower net retirements of long-term debt in 2023 compared to 2022.
AFG’s investment portfolio at December 31, 2024, contained $10.40 billion in fixed maturity securities classified as available for sale and carried at fair value with unrealized gains and losses included in accumulated other comprehensive income (loss) and $76 million in fixed maturities classified as trading with holding gains and losses included in net investment income.
In addition, AFG’s investment portfolio includes $522 million in equity securities carried at fair value with holding gains and losses included in realized gains (losses) on securities and $229 million in equity securities carried at fair value with holding gains and losses included in net investment income.
AFG’s investment portfolio also includes $2.28 billion in investments accounted for using the equity method (limited partnerships and similar investments).
At December 31, 2024, the average life of AFG’s fixed maturities was about 4.2 years.
For AFG’s fixed maturity portfolio, approximately 88% was priced using pricing services at December 31, 2024 and 4% was priced using non-binding broker quotes.
Included in the pricing of mortgage-backed securities (“MBS”) are estimates of the rate of future prepayments and defaults of principal over the remaining life of the underlying collateral.
The following table demonstrates the sensitivity of such fair values to reasonably likely changes in interest rates by illustrating the estimated effect on AFG’s fixed maturity portfolio that an immediate increase of 100 basis points in the interest rate yield curve would have had at December 31, 2024 (dollars in millions).
Fair value of fixed maturity portfolio $ 10,474 Percentage impact on fair value of 100 bps increase in interest rates (3.0 %) Pretax impact on fair value of fixed maturity portfolio $ (314) Approximately 94% of the fixed maturities held by AFG at December 31, 2024, were rated “investment grade” (credit rating of AAA to BBB) by nationally recognized rating agencies, 3% were rated “non-investment grade” and 3% were not rated.

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Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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