Street Calls of the Week
American Financial Group Inc. (NYSE:AFG), currently trading at $143.91 and identified as undervalued by InvestingPro’s Fair Value model, disclosed Tuesday that it has entered into a purchase agreement for the issuance and sale of $350 million aggregate principal amount of 5.000% senior notes due September 2035. The transaction was completed on September 16 with BofA Securities, Inc., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC acting as representatives of the underwriters.
According to the company’s statement, the senior notes will be issued under an indenture dated November 12, 1997, as supplemented by a tenth supplemental indenture dated September 23, 2025, with U.S. Bank Trust Company, National Association serving as trustee.
The offering is being conducted as an underwritten public offering pursuant to a registration statement on Form S-3 (File No. 333-277425) previously filed with the Securities and Exchange Commission. The company referenced additional details about the senior notes in the prospectus supplement dated September 16, 2025, and filed with the SEC on September 17, 2025.
American Financial Group is a Cincinnati-based insurance holding company. Its common stock and several subordinated debentures are listed on the New York Stock Exchange under the symbols AFG, AFGB, AFGC, AFGD, and AFGE.
This information is based on a press release statement and related exhibits filed with the SEC.
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. Additionally, American Financial Group announced the issuance of $350 million in 5.0% Senior Notes due September 23, 2035, with net proceeds anticipated to be approximately $344 million.
These funds are planned for general corporate purposes, potentially including the repurchase of outstanding common shares. In the realm of analyst assessments, Jefferies raised its price target on American Financial to $130 from $125, maintaining a Hold rating, citing a focus on margins. Meanwhile, Keefe, Bruyette & Woods adjusted its price target to $124 from $127, maintaining a Market Perform rating. These developments reflect ongoing interest and analysis from financial institutions regarding American Financial Group’s performance and strategy.
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