Insurance holding company American Financial Group (NYSE:AFG) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 4.5% year on year to $2.33 billion. Its non-GAAP profit of $2.69 per share was 7.2% above analysts’ consensus estimates.
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American Financial Group (AFG) Q3 CY2025 Highlights:
Company Overview
With roots dating back to 1872 and a business model that empowers local decision-making, American Financial Group (NYSE:AFG) is an insurance holding company that specializes in commercial property and casualty insurance products for businesses through its Great American Insurance Group.
Revenue Growth
Insurers earn revenue three ways. The core insurance business itself, often called underwriting and represented in the income statement as premiums earned, is one way. Investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities is the second way. Fees from various sources such as policy administration, annuities, or other value-added services is the third. Thankfully, American Financial Group’s 8.1% annualized revenue growth over the last five years was decent. Its growth was slightly above the average insurance company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. American Financial Group’s recent performance shows its demand has slowed as its annualized revenue growth of 5.5% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, American Financial Group reported modest year-on-year revenue growth of 4.5% but beat Wall Street’s estimates by 7.7%.
Net premiums earned made up 90.3% of the company’s total revenue during the last five years, meaning American Financial Group lives and dies by its underwriting activities because non-insurance operations barely move the needle.
Net premiums earned commands greater market attention due to its reliability and consistency, whereas investment and fee income are often seen as more volatile revenue streams that fluctuate with market conditions.
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Book Value Per Share (BVPS)
Insurers are balance sheet businesses, collecting premiums upfront and paying out claims over time. Premiums collected but not yet paid out, often referred to as the float, are invested and create an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.
We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.
American Financial Group’s BVPS declined at a 4.8% annual clip over the last five years. However, BVPS growth has accelerated recently, growing by 9.5% annually over the last two years from $47.32 to $56.72 per share.
Over the next 12 months, Consensus estimates call for American Financial Group’s BVPS to grow by 8.8% to $55.78, mediocre growth rate.
Key Takeaways from American Financial Group’s Q3 Results
We were impressed by how significantly American Financial Group blew past analysts’ revenue expectations this quarter. We were also happy its book value per share outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 1.6% to $133.50 immediately following the results.
American Financial Group may have had a good quarter, but does that mean you should invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.