American Financial Group Reports $887 Million Net Income for Fiscal Year 2024

American Financial Group, Inc. (AFG) reported a net income of $887 million, or $10.57 per diluted share, for the fiscal year ending December 31, 2024, marking a 4% increase from the previous year's net income of $852 million, or $10.05 per share. The company's total revenue for 2024 reached $8.32 billion, up from $7.83 billion in 2023, driven primarily by a 9% increase in gross written premiums, which totaled $10.53 billion compared to $9.66 billion in 2023. This growth was attributed to strong performance across AFG's specialty property and casualty insurance segments, particularly in the property and transportation and specialty financial lines.

In terms of operational metrics, AFG's property and casualty insurance segment reported net earned premiums of $7.04 billion for 2024, an 8% increase from $6.53 billion in 2023. The combined ratio for the segment was 91.2%, slightly higher than the previous year's 90.3%, indicating a modest decline in underwriting profitability. The loss and loss adjustment expense (LAE) ratio increased to 63.3% from 61.6% in 2023, reflecting higher claims costs, while the underwriting expense ratio improved to 27.9% from 28.8%. The underwriting profit for the segment was $626 million, down from $633 million in 2023.

Strategically, AFG completed the acquisition of Crop Risk Services (CRS) in July 2023, enhancing its position in the crop insurance market. This acquisition contributed to AFG's status as the fifth-largest writer of U.S. crop insurance. The company also reported a significant increase in its investment income, which rose to $784 million in 2024, up from $729 million in 2023, benefiting from higher yields on fixed maturity investments. AFG's investment portfolio totaled $15.85 billion at year-end, with a focus on maintaining a high-quality, diversified asset base.

AFG's workforce remained stable, with approximately 8,700 employees as of December 31, 2024. The company emphasized its commitment to employee engagement and development, reporting a voluntary turnover rate of 7.1% in 2024. Looking ahead, AFG's management anticipates continued premium growth and strong underwriting results, supported by favorable market conditions in the property and casualty insurance sector. The company expects to leverage its strong financial position to navigate potential challenges and capitalize on growth opportunities in 2025 and beyond.