Thu, May 8, 5:55 PM (15 days ago)
**American Financial Group, Inc. (AFG) - Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,856 million, down from $1,906 million in Q1 2024. - **Net Earnings:** $154 million, down from $242 million in Q1 2024. - **Earnings per Share (EPS):** $1.84, down from $2.89 in Q1 2024. - **Net Investment Income:** $173 million, down from $198 million in Q1 2024. - **Net Written Premiums:** $1,611 million, down from $1,634 million in Q1 2024. - **Combined Ratio:** 94.0%, up from 90.1% in Q1 2024. - **Cash and Cash Equivalents:** $1,276 million, down from $1,406 million in Q1 2024. **Profit Margins and Cash Flow:** - **Operating Cash Flow:** $342 million, up from $107 million in Q1 2024. - **Investing Cash Flow:** $23 million, up from $(155) million in Q1 2024. - **Financing Cash Flow:** $(495) million, down from $(90) million in Q1 2024. **Earnings Changes and Quarterly Performance:** - **Year-over-Year Decrease:** Due to lower underwriting profit and lower net investment income from AFG’s alternative investment portfolio. - **Quarterly Performance:** AFG reported a decrease in premium growth and underwriting results, partially offset by higher investment income. **Trends and Uncertainties:** - **Premium Growth:** Continued strong underwriting results in the ongoing generally favorable property and casualty insurance market. - **Interest Rate Environment:** Elevated interest rates expected to continue positively impacting investment income on fixed maturity investments. - **Uncertainties:** Adequacy of insurance reserves and contingencies arising from former railroad and manufacturing operations. **Future Operations Impact:** - **Premium Growth:** Expected in many of AFG’s business units. - **Underwriting Results:** Continued strong results anticipated in the favorable property and casualty insurance market. - **Investment Income:** Elevated interest rate environment expected to positively impact fixed maturity investments. **Ticker:** AFG