3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
American Financial Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -2.14%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for American Financial Group's 3-Year ROIIC % or its related term are showing as below:
AFG's 3-Year ROIIC % is ranked worse than 81.14% of 334
companies
in the Insurance industry
Industry Median: 5.09
vs AFG: -2.14
American Financial Group (NYSE:AFG) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
American Financial Group 3-Year ROIIC % Related Terms
American Financial Group 3-Year ROIIC % Historical 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.
For the Insurance - Property & Casualty subindustry, American Financial Group's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, American Financial Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where American Financial Group's 3-Year ROIIC % falls into.
American Financial Group 3-Year ROIIC % Calculation
American Financial Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 904.7591 (Dec. 2025) - 965.9168 (Dec. 2022) )
/
( 30125.9 (Dec. 2025) - 27262.65 (Dec. 2022) )
=
-61.1577
/
2863.25
=
-2.14%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
American Financial Group (AFG) has a 3-Year ROIIC % of -2.14 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on American Financial Group and its competitors. According to the industry distribution chart, American Financial Group ranks #271 out of 334 companies in the Insurance industry, placing it in the top 81.1%.
Is American Financial Group's 3-Year ROIIC % too high?
American Financial Group's current 3-Year ROIIC % is -2.14. Based on the distribution chart, American Financial Group ranks #271 out of 334 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, American Financial Group has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does American Financial Group's 3-Year ROIIC % compare to CNA and ORI?
According to the Insurance industry distribution chart, American Financial Group ranks #271 out of 334 companies for 3-Year ROIIC %. This places American Financial Group in the lower half of its industry. The industry median 3-Year ROIIC % is 5.09. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Insurance company?
The median 3-Year ROIIC % among Insurance companies is 5.09, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on American Financial Group and its competitors. For the Insurance industry, the median 3-Year ROIIC % is 5.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Financial Group's current 3-Year ROIIC % is -2.14. 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?
Based on GuruFocus' analysis, American Financial Group (AFG) is currently considered Fairly Valued. The stock's GF Value™ is $127.30, compared to a current price of $139.94 — trading 9.9% above its estimated fair value. The current 3-Year ROIIC % is -2.14. American Financial Group's overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For American Financial Group (AFG), the current 3-Year ROIIC % is -2.14 as of Dec. 2025. 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.
Is American Financial Group (AFG) Overvalued in 2026?
Based on GuruFocus' analysis, American Financial Group stock appears to be overvalued.
The current stock price of $139.94 is trading 9.9% above its estimated GF Value™ of $127.30.
GuruFocus considers American Financial Group to be Fairly Valued.
Key valuation signals for AFG:
3-Year ROIIC %: -2.14
GF Value™: $127.30 vs. price of $139.94 (9.9% above fair value)
No single metric tells the full story. See the AFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
79GF Score
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