Business Analysis of American Financial Group

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of American Financial Group

AMERICAN FINANCIAL GROUP

Business Overview

American Financial Group, Inc., through its subsidiaries, provides property and casualty insurance products in the United States. It operates through four segments: Property and Casualty Insurance, Annuity, Run-Off Long-Term Care and Life, and Other. The company offers property and transportation insurance products, such as physical damage and liability coverage for buses, trucks and recreational vehicles, inland and ocean marine, agricultural-related products, and other property coverages; specialty casualty insurance, including primarily excess and surplus, general liability, executive liability, professional liability, umbrella and excess liability, and specialty coverage in targeted markets and customized programs for small to mid-sized businesses; and specialty financial insurance products comprising risk management insurance programs for leasing and financing institutions, surety and fidelity products, and trade credit insurance. It sells its property and casualty insurance products through independent insurance agents and brokers, as well as through employee agents. The company also provides traditional fixed and fixed-indexed annuities to the retail, financial institutions, and education markets; and engages in the commercial real estate operations in Cincinnati, Whitefield, New Hampshire, Chesapeake Bay, Charleston, Palm Beach, and greater Chicago. American Financial Group, Inc. was founded in 1872 and is headquartered in Cincinnati, Ohio.

American Financial Group

American Financial Group


R&P Rank: 419
Sector: Insurance
Industry:Property & Casualty Insurance
H.Q Location:Ohio
Website: www.AFGinc.com
Company Address:
GREAT AMERICAN INSURANCE GROUP TOWER, 301 E. 4TH STREET, CINCINNATI OH 45202
Ph:513-579-2121

Business Analysis of American Financial Group

The Insurance Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how American Financial Group compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by American Financial Group to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of American Financial Group with an interactive chart.

  1. Revenue Growth: American Financial Group reported a revenue growth of 5.7% year-on-year during 2016. Property & Casualty Insurance Industry grew at 6.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, American Financial Group spent 76.1% of its total revenues on COGS. Property & Casualty Insurance industry average (COGS share of revenue) in the same period was 65.6%
  3. R&D share of Revenues: American Financial Group R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, American Financial Group spent 8.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Property & Casualty Insurance industry average SG&A spending in the same period was 14.9%
  5. Inventory share of Revenues: American Financial Group Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, American Financial Group invested 9.8% of its total revenues on Accounts Payable (A/P) Property & Casualty Insurance industry average Accounts Payable investment in the same period was 18.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, American Financial Group invested 37.6% of its total revenues on Accounts Receivable (A/R). Property & Casualty Insurance industry average Accounts Receivable investment in the same period was 33.0%
  8. PP&E share of Revenues: American Financial Group PP&E share of Revenues details are not available because either company does not share the data or we do not have it
  9. Intangibles share of Revenues: As a percentage of revenue, American Financial Group invested 3.1% of its total revenues on Intangibles. Property & Casualty Insurance industry average Intangibles investment in the same period was 29.7%
  10. Net Margins: American Financial Group Net Margins in the year 2016 were 10.0%. Property & Casualty Insurance industry average Net Margins in the same period were 8.2%

Sector and Industry Association of American Financial Group

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

American Financial Group is associated with Financials Sector Group, Insurance Sector, and Property & Casualty Insurance Industry.

Insurance sector is comprised of the following industries: Life Insurance; Property & Casualty Insurance; Surety & Title Insurance; Insurance Brokerage; Diversified Insurance. The definitions for each of the industries is as follows:

  • Life Insurance industry includes companies engaged principally in life insurance.
  • Property & Casualty Insurance industry includes companies engaged principally in accident, fire, automotive, marine, malpractice and other classes of non-life insurance.
  • Surety & Title Insurance industry includes companies providing title & surety insurance.
  • Insurance Brokerage industry includes insurance brokers and agencies.
  • Diversified Insurance industry includes companies with life, health, property & casualty, and reinsurance interests, none of which predominates.

Industry Ranking of American Financial Group

With $6.5 billion revenues, American Financial Group ranked number 13 of all the companies in the US Property & Casualty Insurance industry. There were a total of 66 public companies in the US Property & Casualty Insurance industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Property & Casualty Insurance industry by revenues during 2016 were:

  1. Berkshire Hathaway ($223.6 billion)
  2. AIG ($52.4 billion)
  3. Allstate ($36.5 billion)
  4. Chubb ($31.5 billion)
  5. Travelers Companies ($27.6 billion)
  6. Progressive ($23.4 billion)
  7. Hartford Financial Services Group ($18.3 billion)
  8. Loews ($13.1 billion)
  9. XL Group ($10.5 billion)
  10. CNA Financial ($9.4 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of American Financial Groupand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of american-financial-group

CNA Financial (CNA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Cna Financial Corp with $9 billion revenues in the year 2016 was the number 10 Property & Casualty Insurance company. Read this report to know the top competitors of CNA Financial and identify growth and cost optimization opportunities of CNA Financial

Willis Towers Watson (WLTW) Business Analysis – Analyze Historical Performance, Strategic...

Willis Towers Watson Plc with $8 billion revenues in the year 2016 was the number 11 Property & Casualty Insurance company. Read this report to know the top competitors of Willis Towers Watson and identify growth and cost optimization opportunities of Willis Towers Watson

W. R. Berkley (WRB) Business Analysis – Analyze Historical Performance, Strategic...

W. R. Berkley Corp with $8 billion revenues in the year 2016 was the number 12 Property & Casualty Insurance company. Read this report to know the top competitors of W. R. Berkley and identify growth and cost optimization opportunities of W. R. Berkley

Alleghany (Y) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Alleghany Corp with $6 billion revenues in the year 2016 was the number 14 Property & Casualty Insurance company. Read this report to know the top competitors of Alleghany and identify growth and cost optimization opportunities of Alleghany

Old Republic International (ORI) Business Analysis – Analyze Historical Performance, Strategic...

Old Republic International Corp with $6 billion revenues in the year 2016 was the number 15 Property & Casualty Insurance company. Read this report to know the top competitors of Old Republic International and identify growth and cost optimization opportunities of Old Republic International

Everest Re Group (RE) Business Analysis – Analyze Historical Performance, Strategic...

Everest Re Group Ltd with $6 billion revenues in the year 2016 was the number 16 Property & Casualty Insurance company. Read this report to know the top competitors of Everest Re Group and identify growth and cost optimization opportunities of Everest Re Group

Revenues Analysis

American Financial Group (AFG) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of American Financial Group Inc (AFG) from 2012 to 2016. American Financial Group generated a total of $6.5 billion revenues during 2016. American Financial Group reported a revenue growth of 5.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

American Financial Group (AFG) Revenues And Revenue Growth From 2002 To...

This report provides the last fifteen years revenues and revenue growth of American Financial Group Inc (AFG) from 2002 to 2016. American Financial Group generated a total of $6.5 billion revenues during 2016. American Financial Group reported a revenue growth of 5.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

American Financial Group (AFG) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of American Financial Group Inc (AFG) revenue growth with Property & Casualty Insurance industry growth during the last five years from 2012 to 2016. American Financial Group reported a revenue growth of 5.7% year-over-year during 2016. The Property & Casualty Insurance industry growth was 6.6% year-over-year during 2016. American Financial Group growth was slower than the industry during 2016.