American Financial Group to issue $350 million in senior notes

CINCINNATI - American Financial Group, Inc. (NYSE:AFG), a $11.6 billion market cap insurer with a robust financial health score according to InvestingPro, announced Tuesday it will offer $350 million of 5.0% Senior Notes due September 23, 2035. The notes were priced at 99.162% of their principal amount.

The insurance holding company expects to generate approximately $344 million in net proceeds from the offering, which it plans to use for general corporate purposes, potentially including repurchases of outstanding common shares. The company maintains strong liquidity with a current ratio of 1.96, indicating healthy financial flexibility.

The offering is scheduled to close on September 23, 2025, subject to customary closing conditions. BofA Securities, Inc., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC are serving as joint book-running managers, while PNC Capital Markets LLC, Fifth Third Securities, Inc., MUFG Securities Americas Inc., and U.S. Bancorp Investments, Inc. are acting as co-managers.

The company is conducting the offering under an effective shelf registration statement filed with the Securities and Exchange Commission on February 27, 2024.

American Financial Group, based in Cincinnati, operates through Great American Insurance Group, focusing primarily on specialized commercial property and casualty insurance products for businesses. The company traces its origins to 1872 with the founding of Great American Insurance Company. Currently offering a significant 6.63% dividend yield and maintaining dividend payments for 40 consecutive years, AFG presents an attractive value proposition. For detailed analysis and additional insights, access the comprehensive Pro Research Report available on InvestingPro.

The information in this article is based on a company press release statement.

In other recent news, American Financial Group reported its second-quarter earnings for 2025, with an earnings per share (EPS) of $2.14, slightly surpassing the forecast of $2.13. The company also reported revenue of $1.92 billion, significantly exceeding the expected $1.73 billion. These results highlight a strong financial performance for the quarter. In response to the earnings report, Keefe, Bruyette & Woods adjusted its price target for American Financial to $124, maintaining a Market Perform rating. Meanwhile, Jefferies raised its price target to $130 from $125, continuing to hold a Hold rating on the stock. Jefferies also noted that American Financial is expected to focus on margins rather than growth in the near term. These developments reflect varied perspectives from analysts on the company’s future performance.

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