American Financial GroupAFE 80 ROE % is 16.09% as of Mar. 2026, which is 6% below its 10-year median of 17.05. GuruFocus rates AFE with a GF Score™ of 80/100. The stock has 3 warning signs investors should review. Among 504 Insurance companies, American Financial Group ranks better than 75.4% on this metric.
The historical rank and industry rank for American Financial Group's ROE % or its related term are showing as below:
AFE'
s ROE % Range Over the Past 10 Years
Min: 9.27 Med: 17.05 Max: 33.81
Current: 19
During the past 13 years, American Financial Group's highest ROE % was 33.81%. The lowest was 9.27%. And the median was 17.05%.
AFE's ROE % is ranked better than 75.4% of 504
companies
in the Insurance industry
Industry Median: 11.675
vs AFE: 19.00
American Financial Group (NYSE:AFE) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, American Financial Group's ROE % distribution charts can be found below:
* The bar in red indicates where American Financial Group's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
American Financial Group (AFE) has a ROE % of 16.09% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on American Financial Group and its competitors. This is near median its historical median of 17.05. Over the past decade, American Financial Group's ROE % has ranged from 9.27 to 33.81. According to the industry distribution chart, American Financial Group ranks #124 out of 504 companies in the Insurance industry, placing it in the top 24.6%.
Is American Financial Group's ROE % too high?
American Financial Group's current ROE % of 16.09% is near median its 10-year median of 17.05. Over the past 10 years, this metric has ranged from a low of 9.27 to a high of 33.81. The Insurance industry median ROE % is 11.68. American Financial Group's value of 16.09% is 37.8% above this industry median. Based on the distribution chart, American Financial Group ranks #124 out of 504 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. 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 ROE % compare to CNA and AIZ?
According to the Insurance industry distribution chart, American Financial Group ranks #124 out of 504 companies for ROE %. This places American Financial Group in the top 25% of its industry — outperforming the majority of peers. The industry median ROE % is 11.68. American Financial Group's value of 16.09% is 37.8% above this benchmark. Historically, American Financial Group's own ROE % has ranged from 9.27 to 33.81 over the past decade. While the company's 10-year median is 17.05 vs. the industry median of 11.68, American Financial Group has consistently been above 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 ROE % for an Insurance company?
The median ROE % among Insurance companies is 11.68, based on 504 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Financial Group's current ROE % of 16.09% is 37.8% above 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on American Financial Group and its competitors. For the Insurance industry, the median ROE % is 11.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Financial Group's current ROE % is 16.09%, which is near median its own 10-year median of 17.05. 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 ROE % of 16.09%. The current ROE % is 16.09%, which is near median its 10-year median of 17.05 and 37.8% above the Insurance industry median of 11.68. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For American Financial Group (AFE), the current ROE % is 16.09% 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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