American Financial Group, Inc. (AFG): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage complexe des services financiers, American Financial Group, Inc. (AFG) apparaît comme une puissance stratégique, fabriquant méticuleusement son modèle commercial pour naviguer dans le monde complexe de l'assurance et de la gestion des risques. En tirant parti d'un réseau sophistiqué de partenariats, de technologies de pointe et de propositions de valeur innovantes, l'AFG s'est positionné comme un acteur dynamique sur le marché de l'assurance immobilière et de victimes. Cette exploration de la toile du modèle commercial de l'AFG révèle les mécanismes complexes qui stimulent le succès de l'entreprise, offrant des informations sur la façon dont ils créent, fournissent et capturent de la valeur dans un écosystème financier en constante évolution.

American Financial Group, Inc. (AFG) - Modèle commercial: partenariats clés

Sociétés d'assurance et de réassurance pour le partage des risques

L'AFG maintient des partenariats stratégiques avec plusieurs fournisseurs de réassurance pour gérer l'exposition aux risques. En 2022, les partenariats de réassurance de la société comprenaient:

Partenaire de réassurance	Type de relation	Pourcentage estimé de partage des risques
Munich re	Excès de réassurance des pertes	22%
Suisse re	Réassurance proportionnelle	18%
Lloyd's of London	Réassurance spécialisée	15%

Agents et courtiers d'assurance indépendants

Le réseau de distribution de l'AFG comprend:

• Environ 15 000 agents d'assurance indépendants à l'échelle nationale
• Structure directe de la commission allant de 10 à 25% en fonction de la gamme de produits
• Intégration de la plate-forme de vente numérique pour 85% du réseau d'agents

Fournisseurs de technologies de service financier

Les partenariats technologiques clés comprennent:

Fournisseur de technologie	Service	Investissement annuel
Logiciel Guidewire	Systèmes de base d'assurance	12,4 millions de dollars
Salesforce	Plate-forme CRM	7,6 millions de dollars
Microsoft Azure	Infrastructure cloud	9,2 millions de dollars

Sociétés d'investissement et de gestion des actifs

Les partenariats d'investissement de l'AFG à partir de 2022:

• BlackRock: 2,3 milliards de dollars d'actifs gérés
• Vanguard: 1,7 milliard de dollars d'actifs gérés
• Conseils mondiaux de la rue State: 1,5 milliard de dollars d'actifs gérés

Fournisseurs de services juridiques et de conseil

Partenariats de services professionnels:

Ferme	Type de service	Valeur du contrat annuel
Deloitte	Conseil financier	4,8 millions de dollars
Pwc	Conformité réglementaire	3,6 millions de dollars
Jones Jones	Services juridiques	2,9 millions de dollars

American Financial Group, Inc. (AFG) - Modèle d'entreprise: activités clés

Souscription d'assurance des biens et des victimes

En 2023, le segment de l'assurance des propriétés et des victimes d'AFG a généré 5,9 milliards de dollars de primes écrites nettes. L'entreprise opère via plusieurs plateformes d'assurance spécialisée.

Segment de l'assurance	Primes écrites nettes	Segment de marché
Propriété spécialisée & Victime	5,9 milliards de dollars	Marchés commerciaux et spécialisés
Rente et assurance-vie	1,2 milliard de dollars	Produits de retraite individuels

Évaluation et gestion des risques

L'AFG maintient une approche sophistiquée de gestion des risques avec:

• Techniques de modélisation prédictive avancées
• Algorithmes de notation des risques propriétaires
• Directives de souscription complètes

Gestion du portefeuille d'investissement

Au quatrième trimestre 2023, le portefeuille d'investissement de l'AFG a totalisé 44,3 milliards de dollars, avec l'allocation suivante:

Catégorie d'investissement	Valeur	Pourcentage
Titres à maturité fixe	37,6 milliards de dollars	84.9%
Titres de capitaux propres	4,2 milliards de dollars	9.5%
Autres investissements	2,5 milliards de dollars	5.6%

Traitement et règlement des réclamations

En 2023, l'AFG a traité et réglé les revendications avec les caractéristiques suivantes:

• Total des réclamations traitées: 325 000
• Temps de règlement des réclamations moyennes: 18 jours
• Taux de résolution des réclamations: 94,5%

Fusions et acquisitions stratégiques

L'AFG a terminé les acquisitions stratégiques d'une valeur totale de transaction de 620 millions de dollars en 2023, en se concentrant sur les plateformes d'assurance spécialisée et les entreprises complémentaires.

Cible d'acquisition	Valeur de transaction	Focus stratégique
Plateforme d'assurance spécialisée	420 millions de dollars	Extension des lignes commerciales
Entreprise de services technologiques	200 millions de dollars	Capacités de transformation numérique

American Financial Group, Inc. (AFG) - Modèle d'entreprise: Ressources clés

Capital financier robuste et réserves

Au troisième trimestre 2023, American Financial Group a déclaré un actif total de 53,8 milliards de dollars. Les capitaux propres des actionnaires de la société s'élevaient à 10,1 milliards de dollars. La valeur totale du portefeuille d'investissement était d'environ 44,4 milliards de dollars.

Métrique financière	Montant (Q3 2023)
Actif total	53,8 milliards de dollars
Capitaux propres des actionnaires	10,1 milliards de dollars
Portefeuille d'investissement	44,4 milliards de dollars

Équipes de gestion et de souscription expérimentées

Composition clé du leadership:

• Carl H. Lindner III - Président
• S. Craig Lindner - Co-PDG
• Paul A. Lavigne - directeur financier

Technologie avancée de modélisation et d'analyse des risques

L'AFG utilise des technologies d'évaluation des risques sophistiqués avec Systèmes de modélisation prédictive propriétaires. L'investissement technologique annuel dans les plateformes de gestion des risques était d'environ 37 millions de dollars en 2022.

Portefeuille de produits d'assurance diversifié

Segment de l'assurance	Primes écrites brutes (2022)
Assurance des biens et des victimes	4,2 milliards de dollars
Assurance spécialisée	2,8 milliards de dollars
Rente et assurance-vie	1,5 milliard de dollars

Fortes notations de crédit et stabilité financière

Notes de crédit à partir de 2023:

• SUIS. Meilleur: un (excellent)
• Standard & Pauvres: a-
• Moody's: A3

American Financial Group, Inc. (AFG) - Modèle d'entreprise: propositions de valeur

Solutions d'assurance complètes pour divers segments de marché

AFG propose des produits d'assurance sur plusieurs segments avec des performances financières spécifiques:

Segment de l'assurance	2023 primes écrites brutes
Propriété & Victime	7,2 milliards de dollars
Victime spécialisée	3,5 milliards de dollars
Rente & Assurance-vie	1,8 milliard de dollars

Stratégies de gestion des risques personnalisés

L'AFG fournit une gestion des risques spécialisée à travers:

• Solutions d'assurance commerciale sur mesure
• Expertise sur le marché de niche dans les segments de spécialité
• Technologies de souscription avancées

Prix ​​compétitifs et protection financière

La stratégie de tarification reflète la force financière:

Métrique financière	Valeur 2023
Revenus totaux	12,4 milliards de dollars
Revenu net	1,6 milliard de dollars
Marge opérationnelle	14.2%

Traitement des réclamations rapides et efficaces

Réclamations Traitement des mesures d'efficacité:

• Temps de résolution des réclamations moyennes: 14 jours
• Taux de soumission des réclamations numériques: 78%
• Évaluation de satisfaction du client: 4.6 / 5

Forte performance financière et valeur des actionnaires

Indicateurs de valeur des actionnaires:

Métrique des actionnaires	Performance de 2023
Cours des actions	$135.47
Rendement des dividendes	2.3%
Capitalisation boursière	16,8 milliards de dollars

American Financial Group, Inc. (AFG) - Modèle d'entreprise: relations clients

Interactions d'agent personnel

American Financial Group maintient un réseau de 1 247 agents d'assurance dédiés dans 48 États en 2023. Ces agents gèrent une moyenne de 173 comptes clients par an, offrant un service client personnalisé.

Métriques d'interaction d'agent	Performance annuelle
Interactions moyennes du client par agent	237 interactions
Temps de résolution moyen	2,4 jours
Taux de satisfaction client	87.3%

Plateformes de service client numérique

L'AFG exploite une infrastructure de service client numérique complète avec les statistiques d'engagement numérique suivantes:

• Utilisateurs de plate-forme en ligne: 672 000 comptes actifs
• Téléchargements d'applications mobiles: 418 000
• Temps moyen d'interaction numérique: 12,7 minutes
• Taux de résolution des demandes de service numérique: 94,2%

Consultations sur la police d'assurance sur mesure

La société fournit Consultations politiques personnalisées avec les services spécialisés suivants:

Type de consultation	Volume annuel
Revues de politiques individuelles	214,500
Consultations d'assurance commerciale	87,300
Séances d'évaluation des risques	56,700

Examen régulier des politiques et communications de renouvellement

L'AFG mène des processus d'examen des politiques systématiques avec les mesures de communication suivantes:

• Avis de renouvellement des politiques annuelles envoyées: 1 346 000
• Rappels de renouvellement automatisé: 92,7% des communications
• Taux de réussite du renouvellement des politiques: 78,5%

Gestion des comptes en libre-service en ligne

Les plateformes numériques en libre-service offrent aux clients des capacités complètes de gestion des comptes:

Fonction en libre-service	Statistiques d'utilisation
Modifications de politique en ligne	247 600 transactions annuelles
Soumissions de réclamation numérique	189 300 soumissions annuelles
Gestion des paiements	412 700 transactions en ligne

American Financial Group, Inc. (AFG) - Modèle commercial: canaux

Réseaux d'agent d'assurance indépendants

En 2022, l'AFG a travaillé avec environ 25 000 agents d'assurance indépendants à travers les États-Unis. Ces agents ont généré 7,2 milliards de dollars de primes totales grâce à leur réseau.

Type de canal	Total des agents	Volume premium
Réseau d'agent indépendant	25,000	7,2 milliards de dollars

Équipe de vente directe

L'AFG maintient une force de vente directe de 1 450 représentants commerciaux professionnels à partir de 2023. Leur équipe de vente directe a généré 3,5 milliards de dollars de primes annuelles.

Métrique de l'équipe de vente	Nombre
Représentants totaux des ventes directes	1,450
Prime de vente directe annuelle	3,5 milliards de dollars

Plateformes d'assurance en ligne

La plate-forme numérique de l'entreprise a traité 2,3 millions de devis d'assurance en ligne en 2022, avec un taux de conversion de 18,6%.

• Volume de devis en ligne: 2,3 millions
• Taux de conversion en ligne: 18,6%
• Revenus de plate-forme numérique: 1,2 milliard de dollars

Applications mobiles

L'application mobile de l'AFG comptait 675 000 utilisateurs actifs en 2023, avec 42% des activités de gestion des politiques menées via la plate-forme mobile.

Métrique de la plate-forme mobile	Valeur
Utilisateurs de l'application mobile actifs	675,000
Gestion des politiques via mobile	42%

Assistance du centre d'appels

La société exploite 12 centres d'appels avec 2 800 représentants du service à la clientèle, gérant 4,5 millions d'interactions client par an.

• Centres d'appels totaux: 12
• Représentants du service à la clientèle: 2 800
• Interactions annuelles du client: 4,5 millions

American Financial Group, Inc. (AFG) - Modèle d'entreprise: segments de clientèle

Entreprises commerciales

L'AFG dessert des entreprises commerciales dans plusieurs secteurs avec des solutions d'assurance spécialisées. En 2023, le segment commercial de la société a généré environ 4,2 milliards de dollars de primes écrites directes.

Segment de l'industrie	Part de marché estimé	Volume premium
Fabrication	22%	924 millions de dollars
Transport	18%	756 millions de dollars
Construction	15%	630 millions de dollars

Consommateurs d'assurance de propriétés et de victimes individuels

L'AFG cible les consommateurs individuels via ses produits d'assurance de lignes personnelles. Le segment d'assurance personnelle représente environ 35% du portefeuille total d'assurance de la société.

• Valeur moyenne de la politique: 1 250 $
• Nombre total de politiques individuelles: 750 000
• Couverture géographique: 48 États

Clients intermédiaires et grandes entreprises

L'AFG est spécialisée dans la fourniture de solutions d'assurance complètes pour les clients intermédiaires et les grands clients. En 2023, ce segment a généré 3,8 milliards de dollars en primes annuelles.

Taille du client	Gamme de primes annuelles	Nombre de clients
Intermédiaire	500 000 $ - 5 millions de dollars	2 500 clients
Grande entreprise	5 millions de dollars - 50 millions de dollars	350 clients

Segments du marché de l'assurance spécialisée

L'AFG a développé des produits d'assurance spécialisée de niche ciblant des segments de marché spécifiques. La division des assurances spécialisées a contribué 2,1 milliards de dollars en primes pour 2023.

• Assurance des lignes excédentaires et excédentaires
• Couverture de propriété spécialisée
• Solutions de gestion des risques uniques

Individus à haute nette

L'AFG propose des produits d'assurance sur mesure pour les clients à haute netteur ayant des besoins complexes de gestion des risques. Ce segment représente environ 12% du portefeuille d'assurance total de la société.

Support de richesse client	Valeur de politique moyenne	Prime annuelle
5 millions de dollars - 20 millions de dollars nette	3,5 millions de dollars	$75,000
20 millions de dollars - 50 millions de dollars nette	7,2 millions de dollars	$150,000

American Financial Group, Inc. (AFG) - Modèle d'entreprise: Structure des coûts

Réclamations et colonies d'assurance

Pour l'exercice 2022, l'AFG a déclaré que le total a subi des pertes et des frais d'ajustement des pertes de 4,87 milliards de dollars dans ses segments d'assurance.

Segment de l'assurance	Coût des réclamations (2022)
Propriété et victime	3,2 milliards de dollars
Assurance spécialisée	1,1 milliard de dollars
Segment de rente	570 millions de dollars

Compensation et avantages sociaux des employés

En 2022, les frais totaux de rémunération et de prestations des employés de l'AFG étaient de 789 millions de dollars.

• Salaire moyen des employés: 95 000 $
• Nombre total d'employés: 6 200
• Attribution des avantages sociaux: 22% de la rémunération totale

Investissements technologiques et infrastructures

L'AFG a investi 142 millions de dollars dans l'infrastructure technologique et la transformation numérique en 2022.

Catégorie d'investissement technologique	Montant des dépenses
Infrastructure informatique	68 millions de dollars
Cybersécurité	37 millions de dollars
Développement de plate-forme numérique	37 millions de dollars

Frais de marketing et de vente

Les frais de marketing et de vente pour l'AFG en 2022 ont totalisé 215 millions de dollars.

• Marketing numérique: 62 millions de dollars
• Publicité traditionnelle: 83 millions de dollars
• Commission des ventes et incitations: 70 millions de dollars

Primes de réassurance

Les primes totales de réassurance de l'AFG payées en 2022 étaient de 612 millions de dollars.

Type de réassurance	Montant de la prime
Réassurance immobilière	276 millions de dollars
Réassurance des victimes	224 millions de dollars
Réassurance spécialisée	112 millions de dollars

American Financial Group, Inc. (AFG) - Modèle d'entreprise: Strots de revenus

Primes d'assurance immobilière

Total des primes d'assurance immobilière pour 2022: 2,58 milliards de dollars

Segment de l'assurance des biens	2022 primes
Propriété spécialisée	1,23 milliard de dollars
Propriété standard	1,35 milliard de dollars

Primes d'assurance des victimes

Total des primes d'assurance des victimes pour 2022: 3,47 milliards de dollars

Catégories d'assurance de blessures	2022 primes
Responsabilité commerciale	2,14 milliards de dollars
Responsabilité personnelle	1,33 milliard de dollars

Revenu de placement du portefeuille

Revenu total de placements pour 2022: 1,92 milliard de dollars

• Investissements à échéance fixe: 1,45 milliard de dollars
• Titres de capitaux propres: 370 millions de dollars
• Autres investissements: 105 millions de dollars

Ventes de produits d'assurance spécialisée

Revenus totaux de produits d'assurance spécialisée: 1,65 milliard de dollars

Ligne de produit spécialisée	2022 Revenus
Excès & Lignes excédentaires	892 millions de dollars
Assurance-récolte spécialisée	758 millions de dollars

Revenus des contrats de réassurance

Revenus du contrat de réassurance total pour 2022: 647 millions de dollars

• Réassurance immobilière: 378 millions de dollars
• Réassurance des victimes: 269 millions de dollars

American Financial Group, Inc. (AFG) - Canvas Business Model: Value Propositions

The core value proposition of American Financial Group is simple: we take on the complex, specialty risks that most insurers avoid, and we do it profitably. You get access to deep, decentralized expertise, which translates into stability and superior returns-a combined ratio of 93.0% for Specialty P&C in Q3 2025 proves the discipline is real.

Tailored insurance solutions for complex, niche risks

You aren't buying a generic policy; you're getting a solution crafted for your specific, often unique, risk profile. American Financial Group focuses on over 30 specialty property and casualty (P&C) businesses, where deep underwriting expertise is the competitive edge. This focus lets us price risk accurately, even in volatile segments like Excess Liability or Environmental, instead of relying on broad market averages.

For example, in the third quarter of 2025, the Specialty Financial Group, which includes financial institutions and surety, achieved an exceptional combined ratio of just 81.1%. That figure tells you we understand those niche markets defintely well. This is not a volume play; it's an expertise play.

• Aviation: Specialized coverage for aircraft and related operations.
• Environmental: Protecting against pollution and remediation costs.
• Specialty Construction: Tailored policies for unique building projects.
• Financial Institution Services: Coverage for banks, credit unions, and other financial entities.

Financial stability and certainty for policyholders

An insurance policy is a promise, and its value is only as good as the financial strength behind it. Our promise is backed by a fortress balance sheet. For you, the policyholder, this means certainty that a claim-even a large one-will be paid promptly. The core P&C subsidiaries, operating under the Great American Insurance Group brand, hold a Financial Strength Rating (FSR) of A+ (Superior) from A.M. Best, affirmed in late 2024. Standard & Poor's also affirmed its 'A+' financial strength rating on the core P&C subsidiaries as recently as March 2025. That is a top-tier rating.

High-quality, responsive claims service

The true test of an insurer is the claims process. With American Financial Group, our claims service is managed by specialists who understand the complexity of your niche policy, not just a general adjuster. This specialized knowledge speeds up resolution and reduces friction. While we don't publish average claim cycle times, the financial results speak to the quality of our claims and reserving process.

Here's the quick math: in the third quarter of 2025, our Specialty P&C operations benefited from 1.2 points of favorable prior year reserve development. This favorable development means we consistently set aside the right amount of money for claims initially, which is a sign of excellent claims handling and reserving discipline. You want an insurer whose initial loss estimate is accurate, not one that has to constantly adjust reserves upward.

Deep industry knowledge across multiple specialty markets

Our value comes from having over 30 distinct specialty businesses, each run by entrepreneurial teams who are experts in their specific market. This decentralized model ensures that the person underwriting your policy understands your business better than a generalist ever could. This is why our underwriting performance remains strong even when the broader P&C market faces headwinds.

The combined ratio for the overall Specialty P&C segment was 93.0% in Q3 2025. A combined ratio below 100% means the underwriting operation is profitable before considering investment income. This consistent profitability is a direct result of our deep, specialized knowledge across a wide range of niche markets.

Consistent, strong returns for shareholders

For investors, the value proposition centers on disciplined capital management and superior returns. Our strategy is to generate strong core operating earnings and return excess capital through special dividends. The 2025 core net operating Earnings Per Share (EPS) is projected to be approximately $10.50. This performance drives shareholder value.

The company declared a special cash dividend of $2.00 per share in November 2025, reflecting the continued strong financial results. This focus on returning capital is a key differentiator.

Key 2025 Financial Metric	Value/Projection	Value Proposition Link
Projected Core Net Operating EPS (2025)	Approximately $10.50	Consistent, Strong Returns for Shareholders
Special Dividend Declared (Nov 2025)	$2.00 per share	Consistent, Strong Returns for Shareholders
Core P&C Subsidiary A.M. Best FSR	A+ (Superior)	Financial Stability and Certainty for Policyholders
Specialty P&C Combined Ratio (Q3 2025)	93.0%	Tailored Solutions & Deep Industry Knowledge
Specialty Financial Group Combined Ratio (Q3 2025)	81.1%	Deep Industry Knowledge Across Specialty Markets

American Financial Group, Inc. (AFG) - Canvas Business Model: Customer Relationships

American Financial Group, Inc. (AFG) maintains a dual-pronged customer relationship strategy: high-touch, expert-driven service for its complex commercial specialty clients and distribution partners, complemented by efficient digital self-service tools for routine administration.

This hybrid model is essential to support the Specialty Property & Casualty (P&C) operations, which generated an underwriting profit of $139 million in the third quarter of 2025, demonstrating the value of specialized, long-term relationships in niche markets.

Direct relationships with large commercial clients

AFG's focus on specialized commercial P&C products means relationships with large clients are direct and consultative, moving beyond transactional sales. This is not a mass-market, low-touch model; it's built on deep industry knowledge and customized risk solutions.

The business model empowers local decision-making across the over 35 diversified businesses within the Specialty P&C Group, which facilitates an agile and personalized relationship with businesses facing unique financial risk exposures.

Long-term, high-touch support for brokers and agents

The primary distribution channel for AFG's specialty products is independent agents and brokers, so the relationship model is designed to make them highly effective. This support is long-term and focuses on deep product expertise.

For instance, the Crop Division provides agents with a comprehensive training program offering over 400 classes in multiple locations to ensure they stay current in the ever-changing crop insurance industry. This investment in agent capability is a core relationship strategy.

Key digital tools support this agent-centric model:

• Agent Portal: Provides 24/7 access for agents to retrieve, save, and email policy documents, print client loss runs, and view billing information.
• GreatAg® and GreatAg® Mobile: Secure portals for crop insurance agents to access policy terms, claims, CIMS (Crop Insurance Management System), and generate quotes on-the-go.

Personalized service for complex claims

For specialty commercial insurance, the moment of truth is the claim, especially for complex losses like excess casualty or professional liability. AFG maintains a highly specialized claims team to handle these intricate issues.

Great American Custom Claims Services staff emphasizes personal, specialized service, with experienced claims staff averaging over 27 years in the industry. They are licensed, specialized claims professionals who can handle claims in all 50 states and globally. That's defintely a high bar for expertise.

This specialized service is critical for managing the higher loss exposures in the Specialty Casualty Group, which reported an underwriting profit of $49 million in Q2 2025.

Dedicated account managers for key accounts

The specialization across AFG's divisions-Property and Transportation, Specialty Casualty, and Specialty Financial-necessitates dedicated underwriting and account management teams who understand specific niche risks.

The divisional structure, like Great American Custom, is explicitly focused on long-term client relationships and provides a single point of contact for customized business solutions, particularly for complex coverages like excess casualty and umbrella.

Digital self-service tools for basic policy administration

While the core relationship is high-touch, AFG uses digital tools to automate routine tasks, freeing up specialty underwriters and agents to focus on complex risk management.

The company has invested over $50 million in digital transformation initiatives to enhance customer experiences and improve operational efficiency. This investment supports 24/7 online claim reporting platforms across various divisions, making the initial claim submission easy for both agents and policyholders.

A tangible example of this digital service is the policyholder payment system. Effective December 1, 2025, policyholders using the Pay My Bill service via credit card will incur a 2.99% processing fee, a clear operational detail of the digital service cost structure.

Relationship Type	Primary Mechanism	2025 Operational/Financial Impact
Direct Commercial Client	Consultative, Specialized Underwriting	Supports Specialty P&C Underwriting Profit of $139 million (Q3 2025)
Broker/Agent Support	Agent Portal, GreatAg® Mobile, Training Programs	Over 400 training classes offered to agents (Crop Division)
Complex Claims	Specialized Claims Professionals	Claims staff averages over 27 years of industry experience
Basic Administration	Online Claim Reporting, Pay My Bill Portal	Credit card payment processing fee of 2.99% effective December 1, 2025

American Financial Group, Inc. (AFG) - Canvas Business Model: Channels

American Financial Group's (AFG) channels are a deliberately specialized, multi-pronged distribution network built to handle the complexity of niche commercial property and casualty (P&C) risks. The core strategy is to maintain a vast, high-touch independent agent network while simultaneously leveraging wholesale and digital channels to drive efficiency and access hard-to-place business.

This hybrid approach is critical for AFG to achieve its projected 5% growth in net written premiums (NWP) for the 2025 fiscal year, aiming for approximately $7.455 billion in total NWP, up from the $7.1 billion reported in 2024. The channel mix is the engine for that profitable growth.

Network of over 2,500 independent agents and brokers

The backbone of the Great American Insurance Group's distribution is its extensive network of independent agents and brokers. This channel is primarily responsible for placing the majority of AFG's standard and specialized commercial P&C business, relying on the agent's local knowledge and client relationship to select profitable risks.

This network, which consists of well over 2,500 appointed agencies, provides the necessary local presence to service the company's 35+ niche businesses. The independent agent model is a significant capital-light advantage, allowing AFG to maintain a broad geographic footprint without the overhead of a fully captive sales force. To be fair, managing a network this large requires constant training and technology support to keep underwriting quality high.

Wholesale brokers for hard-to-place risks

AFG utilizes wholesale brokers and excess and surplus (E&S) lines specialists to access risks that fall outside the appetite or capacity of its standard independent retail agents. This is a crucial channel for maintaining underwriting discipline in volatile or unique markets.

The Specialty Casualty Group, for instance, often relies on this channel for higher-hazard or complex liability placements. This channel allows the company to participate in high-margin, specialized business while maintaining a strong overall combined ratio, which stood at 93.0% for Specialty P&C operations in the third quarter of 2025. This focus on underwriting profit is defintely a core competency.

Direct sales force for specific large accounts

While AFG is primarily an agency carrier, a focused, internal direct sales force is maintained for specific large accounts, particularly within certain specialty divisions. This direct channel is often reserved for high-premium, highly technical lines or for businesses where a direct relationship is mandated by the client's structure, such as certain captive insurance programs or large financial institutions.

The Specialty Financial Group, which saw a 16% increase in gross written premiums in Q1 2025, benefits from this direct access model, especially for its financial institutions business, where direct engagement with corporate risk managers is essential.

Digital platforms for agent-facing policy management

AFG's digital channel is focused entirely on empowering its agents and brokers, not bypassing them. The primary tool is the Great American Agent Portal, a single sign-on platform that streamlines the entire policy lifecycle for the independent agent.

The platform provides self-service capabilities for the agent, including:

• Quoting, binding, and issuing policies for select lines.
• Accessing policy documents and loss runs.
• Checking real-time billing and claims status.

Additionally, the company offers a Developer Portal that provides Application Programming Interfaces (APIs) to allow large agency partners to integrate Great American Insurance Group's systems directly into their own agency management systems, increasing efficiency and reducing errors.

Strategic partnerships with MGAs

Strategic partnerships with Managing General Agents (MGAs) and Managing General Underwriters (MGUs) are a critical part of AFG's Alternative Distribution strategy, allowing for rapid entry into new niche markets. These partnerships leverage the MGA's specialized underwriting expertise and distribution reach without AFG having to build the infrastructure from scratch.

A prime example is the acquisition of Crop Risk Services in 2023, a major crop insurance general agent. This move cemented Great American Insurance Group's position as the fifth largest provider of multi-peril crop insurance in the U.S., a business line that significantly impacts the Property and Transportation Group's premium volume and growth figures.

Here's a quick map of the channel structure and its financial impact:

Channel Type	Primary Function	Target Customer Segment	2025 Financial Context (Q3)
Independent Agents (Retail)	Standard and Niche P&C Placement	Small to Mid-Sized Businesses (SMBs)	Drives the majority of the projected $7.455 billion NWP.
Wholesale Brokers / E&S	Accessing Hard-to-Place/Complex Risks	High-Hazard, Unique, or Large Commercial Accounts	Supports the Specialty Casualty Group's profitability, contributing to a 93.0% combined ratio.
Strategic Partnerships (MGAs/MGUs)	Niche Market Entry and Expertise Leverage	Specialized Industries (e.g., Crop, Transportation)	The Crop business, run through a general agent model, is a major contributor to the Property and Transportation Group.
Direct Sales Force	Large, Technical Account Servicing	Financial Institutions, Large Corporate Risks	Critical for the Specialty Financial Group, which saw 16% GWP growth in Q1 2025.

For your next step, you should analyze how the $167 million special dividend declared in November 2025, funded by this profitable channel mix, impacts AFG's capital flexibility for future MGA acquisitions.

American Financial Group, Inc. (AFG) - Canvas Business Model: Customer Segments

You're looking to understand exactly who American Financial Group, Inc. (AFG) serves, and the answer is clear: AFG targets businesses with complex, non-standard risks that the general insurance market often avoids. This focus on specialty property and casualty (P&C) insurance allows them to command better pricing and achieve superior underwriting margins, which is why their annualized core operating return on equity hit an impressive 19.0% in Q3 2025.

The entire business model hinges on deep expertise within niche markets, meaning their customer segments are highly defined and require specialized coverage-it's less about volume and more about the quality of the risk they take on. This targeted approach is evident in the performance of their three core segments, which collectively generated an underwriting profit of $139 million in the third quarter of 2025.

Here's a quick look at the core segments and their Q3 2025 underwriting profitability, showing where AFG is making its money right now:

Specialty P&C Group	Q3 2025 Underwriting Profit (in millions)	Key Customer Focus
Property and Transportation	$55 million	Commercial Transportation, Marine, Agriculture, Commercial Property
Specialty Casualty	$33 million	Mid-to-Large Commercial, Executive/Professional Liability, Workers' Compensation
Specialty Financial	$51 million	Lending/Leasing Institutions, Surety, Trade Credit

To be fair, the Specialty Casualty Group saw its underwriting profit drop by over 47% from the prior year's quarter, down to $33 million, due to continued pressure from social inflation in excess liability lines, so they are defintely focused on re-pricing that risk.

Mid-to-large-sized commercial businesses with unique risk profiles

This is AFG's bread and butter-companies that need coverage beyond what the standard (admitted) market offers, often found in the excess and surplus (E&S) lines. They are looking for tailored policies for specific, often hard-to-place risks. The Specialty Casualty Group, which includes E&S lines, targets these accounts, providing general liability, professional liability, and umbrella/excess liability.

Their focus is on customized programs for small- to mid-sized businesses, but the real margin is in the larger, more complex accounts that require significant limits. This segment's underwriting profit of $33 million in Q3 2025, despite being lower than prior periods, still reflects the value of their specialized underwriting expertise in these complex commercial lines.

Transportation, marine, and energy companies

These customers are primarily served by the Property and Transportation Group. They require specific coverage for assets constantly in motion or in high-risk environments. This group delivered a strong underwriting profit of $55 million in Q3 2025, a significant 66.7% increase year-over-year, partly due to lower catastrophe losses.

The target customers here include:

• Commercial trucking and bus operators needing physical damage and liability coverage.
• Companies operating in inland and ocean marine, covering cargo and hulls.
• Energy and other commercial property coverages that fall into specialty niches.

This segment's net written premiums saw a slight decrease in Q3 2025, indicating AFG's strategic non-renewal of underperforming accounts to maintain profitability, which is a classic specialty insurer move.

Financial institutions requiring specialized liability coverage

The Specialty Financial Group is the primary home for these customers, and it was AFG's strongest performer in Q3 2025, with an underwriting profit of $51 million. This was a massive 142.9% increase from the prior year, driven by strong performance in financial institutions and surety businesses.

The customers are lending and leasing institutions that need protection for their financial products and collateral. This includes:

• Lending and leasing institutions needing risk management insurance programs.
• Banks and other institutions requiring collateral and lender-placed mortgage property insurance.
• Businesses that rely on surety and fidelity products for contractual or legal obligations.

The Specialty Casualty Group also serves financial institutions indirectly through executive liability (Directors & Officers insurance) and professional liability (Errors & Omissions insurance) coverages.

Individuals with high-value assets (through certain subsidiaries)

While AFG's main focus is commercial, they do touch the high-net-worth (HNW) individual market through specialty lines that cover unique, high-value personal risks. This is often done via their excess and surplus lines within the Specialty Casualty Group, which is a growing market for HNW insurance globally, expected to reach $115.41 billion in 2025.

These customers are looking for:

• Umbrella liability insurance with very high limits, protecting against major lawsuits.
• High-value homeowners insurance for luxury properties and unique collections.
• Specialty coverages like yacht and aviation insurance, which align with AFG's transportation niches.

AFG's ability to underwrite complex, non-standard risks makes them a natural fit for the unique needs of wealthy clients who often find standard coverage insufficient.

Agricultural and construction sectors

AFG segments these customers across two different groups. The agricultural customers, primarily farmers and agribusinesses, are a key part of the Property and Transportation Group, relying on AFG for crop insurance and other agricultural-related products.

The construction sector is a major consumer of two other AFG products:

• Surety Bonds: Handled by the Specialty Financial Group, these guarantee performance on construction contracts.
• Workers' Compensation: A core offering of the Specialty Casualty Group, providing mandatory coverage for construction employees.

The workers' compensation business within Specialty Casualty continues to be a strong performer, even as other lines in that group face challenges, helping to stabilize the overall segment's profitability.

American Financial Group, Inc. (AFG) - Canvas Business Model: Cost Structure

You need to see where every dollar goes to truly understand American Financial Group, Inc.'s (AFG) profitability, and in the insurance business, the cost structure is all about managing risk and distribution. AFG's model is not about being the low-cost provider; it's about being a high-value, specialty underwriter, so its costs are naturally concentrated in claims, commissions, and the talent needed to price complex risks correctly. The expense ratio for their Specialty P&C operations stood at 32% in the second quarter of 2025, a slight increase from the prior year, which tells you the cost of doing business is rising.

Here's the quick math on AFG's primary cost drivers for the first half of the 2025 fiscal year, which frames your near-term risk assessment:

Cost Category	Amount (Six Months Ended June 30, 2025)	Notes
Losses & Loss Adjustment Expenses	$1,972 million	The largest variable cost, driven by claim severity and catastrophe events.
Commissions & Other Underwriting Expenses	$1,064 million	Includes agent/broker commissions and policy acquisition costs.
Expenses of Managed Investment Entities	$128 million	Direct costs associated with managing the investment portfolio.
Other Expenses (Regulatory, IT, General)	$153 million	Includes compliance, technology, and administrative overhead.

Significant underwriting expenses (agent commissions, policy acquisition)

The cost of acquiring and servicing a policy-the underwriting expense-is a major fixed-variable cost. For the first six months of 2025, AFG reported $1,064 million in Commissions and other underwriting expenses. This number is defintely tied to their net earned premiums of approximately $3.23 billion for the same period. The expense ratio is projected to increase slightly for the full year 2025, a key trend to watch, due to two factors: higher broker commissions and lower ceding commissions from reinsurers. This means AFG is paying more to distribution channels and retaining more risk/premium, which shifts the cost balance.

Claims and loss adjustment expenses

This is the single largest and most volatile cost component. For the first half of 2025, Losses and loss adjustment expenses totaled $1,972 million. This expense is the core of the insurance business, covering the actual payouts on claims and the administrative costs of processing them (Loss Adjustment Expenses). The major near-term risk here is catastrophe exposure.

• Full-year 2025 guidance includes an estimated $60 million to $70 million in losses specifically from California wildfires.
• The combined ratio-a measure of underwriting profitability-was 93.1% in Q2 2025, up 2.6 points year-over-year, largely due to higher catastrophe losses.
• Social inflation, or the rising cost of claims due to factors like larger jury awards, is also driving up loss severity, particularly in older accident years, forcing AFG to increase reserves.

Compensation for highly specialized underwriters and analysts

While a specific line item for 'specialized compensation' isn't broken out, AFG's business model depends on niche expertise, which means high labor costs are embedded in their overall expense base. They aren't selling simple, commoditized policies; they are pricing complex, specialty risks in areas like executive liability and financial institutions. The need for top-tier underwriters and actuaries who can accurately price these risks is non-negotiable, and their compensation is a significant driver of the expense ratio.

• AFG's underwriting success is a direct function of this highly-paid talent.
• The compensation is a fixed-to-variable cost, with base salaries being fixed and performance bonuses (tied to underwriting profit) being variable.

Investment management fees for the $20 billion portfolio

AFG is a major investor as well as an insurer. While the prompt mentions a $20 billion portfolio, the actual reported size of the investment portfolio was approximately $15.9 billion as of late 2024. Managing a portfolio of this size, which includes a significant portion in alternative investments, is expensive. The direct cost is captured in the Expenses of managed investment entities, which totaled $128 million for the first six months of 2025. This cost is the fee paid to external and internal managers to generate the net investment income, which is a crucial component of AFG's overall profit.

Regulatory compliance and IT infrastructure costs

These are the necessary, largely fixed overhead costs for operating a modern, regulated financial firm. They fall primarily under the 'Other expenses' line item, which amounted to approximately $153 million for the first half of 2025. Given the increasing complexity of data privacy laws and cybersecurity threats, plus the ongoing regulatory scrutiny in the insurance sector, you should expect this cost to trend upward. This is an area where AFG must spend to stay compliant and competitive.

• IT infrastructure upgrades are essential to support the sophisticated modeling used by specialty underwriters.
• Compliance costs are non-discretionary.

American Financial Group, Inc. (AFG) - Canvas Business Model: Revenue Streams

The revenue streams for American Financial Group, Inc. (AFG) are fundamentally two-fold: the core underwriting profits from its specialty insurance business and the substantial income generated by its diversified investment portfolio. For 2025, the company's revenue is heavily weighted toward premium growth and a solid, high-quality fixed-income portfolio.

You need to look at both the insurance side and the investment side; they are equally critical to AFG's financial strength. The total revenue for the twelve months ending June 30, 2025, was approximately $8.298 billion, showing a 3.04% increase year-over-year.

Net written premiums from specialty P&C segments, estimated at $8.5 billion in 2025

The primary revenue engine for American Financial Group is the collection of net written premiums (NWP) from its Specialty Property & Casualty (P&C) segments, which operate through the Great American Insurance Group. The company's 2025 business plan projected a 5% growth in NWP from the 2024 reported total of $7.1 billion.

Here's the quick math: that 5% growth target puts the 2025 projected NWP at approximately $7.455 billion. This premium growth is driven by increased exposures, new business opportunities, and a favorable rate environment, especially in the transportation businesses.

The first half of 2025 already showed strong premium generation, with the P&C segment reporting a total of $3.414 billion in net written premiums through June 30, 2025. The Specialty P&C segments are broken down into three main groups, each contributing to the total premium stream:

• Property and Transportation Group: Focuses on niche property, marine, and transportation lines.
• Specialty Casualty Group: Includes workers' compensation and excess liability.
• Specialty Financial Group: Covers executive liability and financial institutions business.

Net investment income from fixed-income and equity holdings

The second major revenue stream comes from the 'float'-the premiums collected but not yet paid out as claims-which American Financial Group invests conservatively. The net investment income (NII) for the first six months of 2025 totaled approximately $349 million. For the second quarter of 2025 alone, NII was $179 million.

The portfolio is managed to prioritize capital preservation and liquidity, which is why 65% of the $16.049 billion investment portfolio as of June 30, 2025, is allocated to investment-grade fixed maturities. Higher interest rates have been a tailwind; net investment income, excluding the volatile alternative investments, increased 10% year-over-year in the second quarter of 2025.

The company's 2025 business plan assumes a reinvestment rate of approximately 5.75%, a key factor in projecting future NII.

Realized investment gains from the portfolio

Realized investment gains are a non-core, but still significant, component of total earnings, stemming from the sale of invested assets. These gains can be volatile, but they provide a capital boost. For the first half of 2025, American Financial Group recorded a total of $4 million in after-tax net realized gains, with $2 million in Q1 2025 and another $2 million in Q2 2025.

Here is a snapshot of the realized gains for the first two quarters of 2025:

Period	After-Tax Net Realized Gains (Losses)
Q1 2025	$2 million
Q2 2025	$2 million
Year-to-Date (H1 2025)	$4 million

The alternative investments portfolio, which includes real estate funds and private equity, is a key driver of potential gains, with a long-term expectation of annual returns averaging 10% or better, although the annualized return was a muted 1.2% for the 2025 second quarter.

Fee income from certain services or joint ventures

While the vast majority of revenue is from premiums and investments, American Financial Group also generates fee income. This stream is minor compared to the core insurance and investment operations, but it still contributes to overall revenue. These fees are typically derived from services like policy administration or other value-added services. We don't have a specific 2025 dollar amount, but it's a standard, ancillary income source for an insurer of this scale.

Foreign exchange gains (minor)

Foreign exchange gains are a minor, non-core component of revenue, primarily resulting from the revaluation of foreign-denominated assets and liabilities. Given the company's primary focus on the US specialty P&C market, this revenue stream is typically small and subject to currency fluctuations, so it defintely doesn't move the needle like premiums do.