Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
American Financial Group's 3-Year RORE % for the quarter that ended in Mar. 2026 was 0.33%.
The industry rank for American Financial Group's 3-Year RORE % or its related term are showing as below:
AFG's 3-Year RORE % is ranked worse than 65.34% of 476
companies
in the Insurance industry
Industry Median: 11.865
vs AFG: 0.33
American Financial Group (NYSE:AFG) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
American Financial Group 3-Year RORE % Related Terms
American Financial Group 3-Year RORE % 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 RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Insurance Industry
For the Insurance industry and Financial Services sector, American Financial Group's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where American Financial Group's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
American Financial Group (AFG) has a 3-Year RORE % of 0.33 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on American Financial Group and its competitors. According to the industry distribution chart, American Financial Group ranks #311 out of 476 companies in the Insurance industry, placing it in the top 65.3%.
Is American Financial Group's 3-Year RORE % too high?
American Financial Group's current 3-Year RORE % is 0.33. The Insurance industry median 3-Year RORE % is 11.87. American Financial Group's value of 0.33 is 97.2% below this industry median. Based on the distribution chart, American Financial Group ranks #311 out of 476 companies in the Insurance industry, which is below the industry midpoint. Overall, American Financial Group has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does American Financial Group's 3-Year RORE % compare to CNA and ORI?
According to the Insurance industry distribution chart, American Financial Group ranks #311 out of 476 companies for 3-Year RORE %. This places American Financial Group in the lower half of its industry. The industry median 3-Year RORE % is 11.87. American Financial Group's value of 0.33 is 97.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Insurance company?
The median 3-Year RORE % among Insurance companies is 11.87, based on 476 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Financial Group's current 3-Year RORE % of 0.33 is 97.2% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on American Financial Group and its competitors. For the Insurance industry, the median 3-Year RORE % is 11.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Financial Group's current 3-Year RORE % is 0.33. 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 $138.67 — trading 8.9% above its estimated fair value. The current 3-Year RORE % is 0.33 and 97.2% below the Insurance industry median of 11.87. American Financial Group's overall GF Score™ is 80/100 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For American Financial Group (AFG), the current 3-Year RORE % is 0.33 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.
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 $138.67 is trading 8.9% above its estimated GF Value™ of $127.30.
GuruFocus considers American Financial Group to be Fairly Valued.
Key valuation signals for AFG:
3-Year RORE %: 0.33
GF Value™: $127.30 vs. price of $138.67 (8.9% above fair value)
Industry Position: 97.2% below the Insurance median (#311 of 476)
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.
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