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American Financial Group: Inside 38 Quarters Of Pricing Power And The Discipline Driving Underwriting Margins!

American Financial Group’s 2025 full-year results reflect a strong performance anchored by its diversified specialty insurance businesses and disciplined capital management approach. The company reported core net operating earnings of $10.29 per share, with a robust core operating return on equity (ROE) of 18.2%, and an exceptional fourth quarter core ROE of 25.2%. Such performance was supported by a favorable underwriting environment, particularly in crop insurance, and well-managed investment income from their $17.2 billion portfolio. The insurer returned more than $700 million to shareholders in 2025 through dividends and share repurchases, exemplifying a shareholder-friendly capital deployment strategy. Importantly, the company’s leverage ratio remained below 28%, with strong financial strength ratings from AM Best and Standard & Poor’s (A+), and no debt maturities until 2030, signaling solid balance sheet stability. Growth in book value per share plus dividends reached 17.2% for the year, indicative of value creation over the longer term.