American Financial GroupAFE 80 ROA % is 2.35% as of Mar. 2026, which is 18% above its 10-year median of 2.00. GuruFocus rates AFE with a GF Score™ of 80/100. The stock has 3 warning signs investors should review. Among 508 Insurance companies, American Financial Group ranks better than 50.59% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. American Financial Group's annualizedNet Income for the quarter that ended in Mar. 2026 was $764.00 Mil.
American Financial Group's average Total Assets over the quarter that ended in Mar. 2026 was $32,497.50 Mil. Therefore, American Financial Group's annualized ROA % for the quarter that ended in Mar. 2026 was 2.35%.
The historical rank and industry rank for American Financial Group's ROA % or its related term are showing as below:
AFE'
s ROA % Range Over the Past 10 Years
Min: 0.82 Med: 2 Max: 3.89
Current: 2.75
During the past 13 years, American Financial Group's highest ROA % was 3.89%. The lowest was 0.82%. And the median was 2.00%.
AFE's ROA % is ranked better than 50.59% of 508
companies
in the Insurance industry
Industry Median: 2.7
vs AFE: 2.75
American Financial Group (NYSE:AFE) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Property & Casualty subindustry, American Financial Group's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Financial Group ROA % vs Insurance Industry
For the Insurance industry and Financial Services sector, American Financial Group's ROA % distribution charts can be found below:
* The bar in red indicates where American Financial Group's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
American Financial Group (AFE) has a ROA % of 2.35% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on American Financial Group and its competitors. This is 18% above median its historical median of 2.00. Over the past decade, American Financial Group's ROA % has ranged from 0.82 to 3.89. According to the industry distribution chart, American Financial Group ranks #251 out of 508 companies in the Insurance industry, placing it in the top 49.4%.
Is American Financial Group's ROA % too high?
American Financial Group's current ROA % of 2.35% is 18% above median its 10-year median of 2.00. Over the past 10 years, this metric has ranged from a low of 0.82 to a high of 3.89. The Insurance industry median ROA % is 2.70. American Financial Group's value of 2.35% is 13% below this industry median. Based on the distribution chart, American Financial Group ranks #251 out of 508 companies in the Insurance industry, which is above the industry midpoint. Overall, American Financial Group has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does American Financial Group's ROA % compare to CNA and AIZ?
According to the Insurance industry distribution chart, American Financial Group ranks #251 out of 508 companies for ROA %. This puts American Financial Group in the upper half of its industry. The industry median ROA % is 2.70. American Financial Group's value of 2.35% is 13% below this benchmark. Historically, American Financial Group's own ROA % has ranged from 0.82 to 3.89 over the past decade. While the company's 10-year median is 2.00 vs. the industry median of 2.70, American Financial Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for an Insurance company?
The median ROA % among Insurance companies is 2.70, based on 508 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Financial Group's current ROA % of 2.35% is 13% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on American Financial Group and its competitors. For the Insurance industry, the median ROA % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Financial Group's current ROA % is 2.35%, which is 18% above median its own 10-year median of 2.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Financial Group stock overvalued right now?
American Financial Group (AFE) has a current ROA % of 2.35%. The current ROA % is 2.35%, which is 18% above median its 10-year median of 2.00 and 13% below the Insurance industry median of 2.70. American Financial Group's overall GF Score™ is 80/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For American Financial Group (AFE), the current ROA % is 2.35% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
American Financial Group Inc is an insurance holding company. Through its subsidiaries, it is engaged in the property and casualty insurance business, focusing on specialized commercial products for businesses. The group operates through two segments: Property and Casualty Insurance, which generates maximum revenue, and Other. The Property and Casualty Insurance segment is further divided into different sub-segments, such as Property and transportation, Specialty casualty, and Specialty financial. These sub-segments offer insurance coverage for vehicles and commercial property, customized programs for small to mid-sized businesses, workers' compensation insurance, risk management insurance programs for lending and leasing institutions, trade credit insurance, and other insurance products.
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