American Financial Group Reports Q3 2025 Net Income of $215 Million, Acquires Radion Insurance Holdings

American Financial Group, Inc. (AFG) reported its financial results for the third quarter and the first nine months of 2025, revealing a net income of $215 million, or $2.58 per diluted share, compared to $181 million, or $2.16 per diluted share, in the same period of 2024. The increase in net earnings for the third quarter was attributed to higher underwriting profits, increased net investment income, and net realized gains on securities, which contrasted with net realized losses in the prior year. For the first nine months, however, net earnings decreased to $543 million from $632 million year-over-year, primarily due to lower underwriting profits and investment income, alongside higher special charges related to asbestos and environmental liabilities.

Total revenues for the third quarter of 2025 were $2.331 billion, slightly down from $2.369 billion in the previous year. The decline was driven by a decrease in net earned premiums, which fell to $2.013 billion from $2.055 billion, reflecting a 2% drop. In the first nine months, total revenues also decreased to $6.111 billion from $6.175 billion. The company’s property and casualty insurance segment reported net earned premiums of $5.240 billion for the first nine months, a modest increase from $5.186 billion in the same period of 2024.

AFG's strategic developments included the acquisition of Radion Insurance Holdings, LLC, which was completed in July 2025 for $7 million, making Radion a wholly-owned subsidiary. This acquisition is expected to enhance AFG's capabilities in healthcare coverage for small and midsize businesses. The company also reported a significant increase in its total assets, which rose to $33.834 billion as of September 30, 2025, compared to $30.836 billion at the end of 2024, driven by higher cash and investment balances.

Operationally, AFG's property and casualty insurance segment generated an underwriting profit of $138 million in the third quarter of 2025, up from $115 million in the same quarter of 2024. The combined ratio improved to 93.0% from 94.3%, indicating better underwriting performance. The company reported a total of 83.4 million shares outstanding as of September 30, 2025, with a slight decrease in the average number of shares compared to the previous year. AFG's management anticipates continued premium growth and strong underwriting results, supported by a favorable property and casualty insurance market and elevated interest rates positively impacting investment income into 2026.