AFG

American Financial Group is a specialty property & casualty insurer with a long record of underwriting discipline and high returns on capital. Even in a softer FY2025 the franchise delivered a 17.5% return on equity and a 10.3% net margin — strong for the insurance industry — while stockholders' equity grew 7.9% to $4.82B, reflecting solid internal capital generation. Operating cash flow jumped 33.1% to $1.53B, underscoring healthy underlying cash conversion.

FY2025 was a modest down year: revenue slipped 1.8% to $8.17B, net income fell 5.1% to $842M and diluted EPS eased 4.6% to $10.08, broadly consistent with the past few years' normalization from the elevated $2.00B of FY2021. This is a mature, cyclical specialty franchise rather than a grower, and the slight dip is well within normal underwriting/investment-cycle variation. The balance sheet carries insurer-typical leverage (liabilities/equity 5.77x, mostly reserves), with $1.73B cash (+22.8%) and $1.82B of debt.