Fundamentals snapshot
AFG · NYQ · Financial Services · Insurance - Property & Casualty
Current price
$143.35
52-week range
$122.11 - $150.02
Market cap
$11.91B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $602.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
American Financial Group is an insurance company that sells specialized coverage for businesses, such as policies for commercial trucks, farms, and liability protection (coverage against legal claims) for company executives. It makes money by collecting more in customer payments, called premiums, than it pays out for accidents and other claims. This is important because an insurer's ability to accurately price its policies and manage risk is key to its long-term profitability.
American Financial Group (AFG) started back in 1959, not as an insurance giant, but as a company focused on savings and loans. Its insurance roots trace all the way back to 1872 with the founding of the Great American Insurance Company. A key turning point was in the 1970s when businessman Carl H. Lindner took control and began to focus the company on insurance, selling off many other non-insurance businesses. Over the years, through a series of strategic acquisitions (buying other companies), AFG has grown into a large holding company (a parent company that owns other companies) that specializes in property and casualty insurance for businesses.
Think of American Financial Group as a company that sells safety nets to other businesses. Through its Great American Insurance Group, it provides property and casualty insurance, which helps businesses manage unique financial risks. This isn't like the car or home insurance you might buy; it's specialized coverage for things like commercial trucks, farms, or potential lawsuits against a company's executives. AFG's products are sold through a network of independent insurance agents and brokers, who act as the middlemen between AFG and the businesses buying the insurance.
This is one of the main ways AFG makes money. This segment provides insurance for physical things that can be damaged or cause damage. This includes coverage for commercial vehicles like buses and trucks, as well as insurance for goods being transported on land or sea (known as inland and ocean marine insurance). They also offer specialized insurance for agricultural businesses. Essentially, if a business owns or moves valuable property, this part of AFG helps protect them from financial loss if something goes wrong.
This part of the business focuses on protecting companies from lawsuits and other liabilities (legal responsibilities for harm). It includes something called 'excess and surplus' insurance, which covers risks that are too unusual or large for standard insurance companies to take on. It also provides 'executive and professional liability' coverage, which can protect a company's leaders or professionals like lawyers from legal claims. This segment also offers workers' compensation insurance, which covers employees' medical expenses and lost wages if they get hurt on the job.
This segment offers insurance products related to financial transactions and risks. For example, it provides risk management programs for banks and leasing companies to protect the money they lend. It also offers 'fidelity and surety' products, where a surety bond is a promise by one party to assume responsibility for the debt or obligation of another party if that party defaults. Another product is 'trade credit insurance,' which protects businesses if their customers don't pay for goods or services they've received.
The company's leadership is focused on growing its specialized insurance businesses. Their main strategy is to expand organically (by selling more of their own products) and through strategic acquisitions (buying other companies that fit well with their existing businesses). They are also committed to returning value to shareholders (the people who own stock in the company) through dividends (a portion of the company's profits paid out to shareholders) and by repurchasing their own stock, which can help increase the value of the remaining shares. Management believes that disciplined underwriting (carefully selecting which risks to insure) and smart investing are key to long-term success.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $602.0M. Interest coverage 14.4x.
American Financial Group, Inc.'s profit covers its interest bill about 14.4 times over. which is stronger than most peers shown here.
Total debt $2.04B Interest coverage 14.41x This is the baseline the peer rows are being compared against.
Total debt $2.97B Interest coverage 13.00x -10% vs AFG Has roughly the same debt cushion as AFG.
Total debt $2.21B Interest coverage 10.91x -24% vs AFG Carries about 1.3x less debt cushion than AFG.
Total debt $1.59B Interest coverage 17.84x +24% vs AFG Carries about 1.2x more debt cushion than AFG.
Total debt $1.49B Interest coverage 19.24x +34% vs AFG Carries about 1.3x more debt cushion than AFG.
Total debt $3.10B Interest coverage 18.97x +32% vs AFG Carries about 1.3x more debt cushion than AFG.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know