Presentations made painless

Company > American Financial Group Inc: Business Model, SWOT Analysis, and Competitors 2023

American Financial Group Inc: Business Model, SWOT Analysis, and Competitors 2023

Published: Jun 21, 2023

Inside This Article


    American Financial Group Inc is a leading insurance holding company operating primarily in the property and casualty insurance industry. This blog article provides an in-depth analysis of the company's business model, along with a SWOT analysis and an assessment of its competitors in the year 2023. By exploring American Financial Group's strengths, weaknesses, opportunities, and threats, readers will gain valuable insights into the company's current position in the market and its potential for future growth. Additionally, a comparison with its key competitors will shed light on the competitive landscape of the industry.

    What You Will Learn:

    • Who owns American Financial Group Inc and the significance of their ownership in the company's operations and decision-making processes.
    • The mission statement of American Financial Group Inc and how it guides their overall strategic direction and goals.
    • The various revenue streams and business strategies employed by American Financial Group Inc to generate profits and sustain growth.
    • An in-depth explanation of the Business Model Canvas used by American Financial Group Inc to outline their key activities, resources, partnerships, and customer segments.
    • An overview of the major competitors in the industry and how American Financial Group Inc positions itself in the market.
    • A comprehensive SWOT analysis of American Financial Group Inc, highlighting the company's strengths, weaknesses, opportunities, and threats in the current business landscape.

    Who owns American Financial Group Inc?

    Major Shareholders

    American Financial Group Inc. (AFG) is a publicly traded company listed on the New York Stock Exchange (NYSE) under the ticker symbol AFG. As a result, ownership of the company is distributed among numerous institutional and individual shareholders.

    Among the major institutional shareholders of AFG is the Carl H. Lindner III family, which holds a significant stake in the company. The Lindner family has a long-standing history with AFG, as they founded the company in 1959. Through various entities such as trusts and foundations, the Lindner family maintains substantial ownership in AFG, representing their continued commitment to the growth and success of the company.

    Additionally, various mutual funds and investment management firms hold significant stakes in AFG. These include Vanguard Group, BlackRock, and State Street Corporation, among others. These institutional investors play a crucial role in shaping the company's direction and strategy through their active involvement in shareholder meetings and voting on important corporate decisions.

    Insider Ownership

    Insider ownership refers to the percentage of company shares held by individuals who have direct affiliation with the company, such as executives, directors, or employees. Insider ownership can provide insights into the level of commitment and confidence these individuals have in the company's future prospects.

    In the case of American Financial Group Inc., insider ownership is relatively high, indicating a strong alignment of interests between management and shareholders. The Lindner family, as mentioned earlier, holds a significant stake in AFG, and several members of the family also serve on the company's board of directors. This level of insider ownership ensures that the interests of the company's executives and directors are closely tied to the performance and success of AFG.

    Public Shareholders

    Apart from institutional and insider ownership, a significant portion of American Financial Group Inc. is owned by individual investors who hold shares of the company's common stock. These public shareholders can include retail investors, individual traders, and other market participants. Owning shares of AFG allows these individuals to participate in the company's growth and potentially benefit from any increase in stock value or dividends.

    Public shareholders, although individually holding smaller ownership stakes, collectively represent a substantial portion of the company's ownership structure. The participation of a diverse group of individual investors can contribute to the liquidity and stability of the stock, as well as provide valuable feedback and perspectives on the company's operations.


    American Financial Group Inc. is owned by a combination of major institutional shareholders, insiders, and public shareholders. The Lindner family, with its historical ties to the company, holds a significant stake and plays a vital role in shaping the company's direction. Institutional investors and public shareholders also contribute to the ownership structure, providing valuable capital and diverse perspectives. This broad ownership base reflects the robust support and confidence in American Financial Group Inc.'s business model and future prospects.

    What is the mission statement of American Financial Group Inc?

    The Mission Statement of American Financial Group Inc

    American Financial Group Inc, a leading insurance holding company, has a clear and concise mission statement that guides its operations and strategic decision-making. The company's mission statement can be summarized as follows:

    "To be a premier provider of specialty insurance products and related services, delivering exceptional value to our customers, employees, and shareholders."

    This mission statement highlights several key aspects of American Financial Group's strategic focus and priorities. Firstly, the company aims to be a premier provider of specialty insurance products. This indicates that American Financial Group strives to excel in offering insurance solutions that cater to specific niche markets or unique customer needs. By specializing in these areas, the company can differentiate itself from competitors and provide tailored coverage options to its customers.

    Secondly, the mission statement emphasizes the importance of delivering exceptional value. American Financial Group aims to go beyond merely providing insurance policies; it seeks to ensure that its customers receive significant value from its products and services. This focus on value creation reflects the company's commitment to meeting customer expectations, building long-term relationships, and establishing itself as a trusted insurance provider.

    Additionally, the mission statement acknowledges the significance of employees and shareholders. American Financial Group recognizes the crucial role its employees play in achieving its mission. By attracting and retaining talented professionals, the company can effectively deliver on its commitment to exceptional value and maintain a competitive edge in the insurance industry. Furthermore, the mission statement underlines the company's dedication to generating sustainable returns for its shareholders, highlighting its commitment to long-term financial success and growth.

    Overall, American Financial Group's mission statement demonstrates its dedication to being a leading provider of specialty insurance products and services while prioritizing the creation of value for customers, employees, and shareholders. This mission guides the company's strategic decisions, operational focus, and ongoing pursuit of excellence in the insurance industry.

    How does American Financial Group Inc make money?

    Insurance Operations

    One of the primary sources of revenue for American Financial Group Inc is its insurance operations. The company operates through its subsidiary, Great American Insurance Group, which offers a wide range of property and casualty insurance products.

    Great American Insurance Group provides coverage for various risks including commercial property, liability, workers' compensation, and specialty lines such as aviation, marine, and surety bonds. These insurance policies generate revenue through premiums paid by policyholders.

    Additionally, American Financial Group Inc also offers annuity products through its subsidiary, Great American Life Insurance Company. Annuities provide individuals with a guaranteed income stream over a specified period. The premiums paid by individuals purchasing annuities contribute to the company's overall revenue.


    American Financial Group Inc also generates revenue through its investment activities. The company manages a diverse investment portfolio, consisting of fixed-income securities, equities, real estate, and other alternative investments.

    By strategically allocating capital across various asset classes, American Financial Group Inc aims to generate attractive investment returns. Income generated from interest, dividends, rental income, and capital gains from the sale of investments contribute to the company's revenue stream.

    Asset Management

    Another revenue stream for American Financial Group Inc comes from its asset management operations. The company operates through its subsidiary, American Money Management Corporation, which provides investment advisory services to institutional clients and high-net-worth individuals.

    By offering customized investment solutions and managing portfolios on behalf of clients, American Financial Group Inc earns management fees and performance-based fees. These fees are based on a percentage of the assets under management or the investment performance achieved, respectively.

    Other Sources of Revenue

    In addition to its core operations, American Financial Group Inc also generates revenue from other sources. The company may earn income from underwriting fees, policy fees, and administrative fees associated with insurance policies.

    Furthermore, American Financial Group Inc may also derive revenue from its subsidiaries engaged in other financial services such as mortgage lending, commercial lending, and leasing activities.

    Overall, American Financial Group Inc has multiple revenue streams, primarily driven by its insurance operations, investments, asset management, and other financial services offered by its subsidiaries. This diversification enables the company to generate consistent revenue and enhance its financial performance.

    American Financial Group Inc Business Model Canvas Explained


    The American Financial Group Inc (AFG) is a leading insurance holding company based in Cincinnati, Ohio. With a diversified portfolio of property and casualty insurance, specialty insurance, and annuity products, AFG has successfully established a strong foothold in the insurance industry. In this section, we will delve into the business model canvas of AFG to gain a comprehensive understanding of how the company operates.

    Key Partnerships

    AFG's business model is built on a network of key partnerships that contribute to its success. These partnerships include insurance brokers, agents, and distributors who play a crucial role in reaching customers and driving sales. By collaborating with these partners, AFG can tap into their expertise and market reach, expanding its customer base and increasing its market share. Additionally, AFG also forms strategic alliances with reinsurers to mitigate risks and manage its underwriting exposure effectively.

    Key Activities

    The key activities of AFG revolve around underwriting various insurance policies and managing investment portfolios. As an insurance holding company, AFG's primary activity is to underwrite property and casualty insurance policies, as well as specialty insurance products such as professional liability and workers' compensation insurance. Moreover, AFG's subsidiary, Great American Insurance Group, also focuses on annuity products, providing individuals with retirement income solutions. In addition to underwriting, AFG actively manages its investment portfolios to generate income and maximize returns for its shareholders.

    Key Resources

    To support its operations, AFG relies on a range of key resources. One of the most crucial resources is its highly skilled workforce, including underwriters, claims adjusters, investment professionals, and risk managers. These employees bring their expertise and experience to ensure effective risk assessment, claims handling, and investment decision-making. A robust technological infrastructure is also a vital resource for AFG, enabling efficient policy administration, claims processing, and investment management. Furthermore, AFG's strong financial position and access to capital markets provide essential resources for growth and expansion.

    Value Proposition

    AFG's value proposition lies in its ability to provide reliable insurance coverage and financial products to its customers. By leveraging its expertise and extensive network, AFG offers innovative insurance solutions that meet the needs of individuals, businesses, and institutions. AFG's commitment to excellent customer service, quick claims settlement, and financial stability further enhances its value proposition. Moreover, AFG's strong focus on risk management ensures that policyholders are protected against various perils, providing them with peace of mind.

    Customer Segments

    AFG serves a diverse range of customer segments. On the property and casualty insurance side, AFG caters to individuals, businesses, and institutions seeking coverage for their assets, liabilities, and risks. AFG's specialty insurance products target specific industries such as healthcare, construction, and transportation, addressing their unique risk exposures. Additionally, AFG's annuity products are designed to meet the retirement income needs of individuals, providing them with financial security during their golden years.


    AFG utilizes multiple channels to distribute its products and reach its target customers. Traditional distribution channels include insurance brokers, agents, and intermediaries who have established relationships with customers. These channels help AFG reach a wide customer base and provide personalized advice and assistance in selecting the most suitable insurance coverage. In recent years, AFG has also embraced digital channels, including online platforms and mobile applications, to cater to the evolving preferences of customers who prefer self-service and convenience.

    Revenue Streams

    AFG generates revenue primarily through insurance premiums and investment income. Insurance premiums constitute the majority of AFG's revenue, with customers paying premiums in exchange for insurance coverage. The amount of premium collected is determined by the risk assessment and underwriting decisions made by AFG. Additionally, AFG earns investment income by effectively managing its investment portfolios, capitalizing on market opportunities, and consistently generating returns on its invested assets.


    The business model canvas of American Financial Group Inc provides a comprehensive overview of how the company operates and creates value for its stakeholders. Through key partnerships, activities, resources, and channels, AFG delivers reliable insurance coverage and financial products to a diverse range of customer segments. By leveraging its expertise and innovative solutions, AFG has established a strong presence in the insurance industry, positioning itself for continued growth and success.

    Which companies are the competitors of American Financial Group Inc?


    In the highly competitive financial services industry, American Financial Group Inc. faces stiff competition from a number of well-established companies. These competitors operate in various sectors of the financial industry, challenging American Financial Group Inc.'s market position and pushing the company to continually innovate and differentiate itself. In this section, we will explore some of the key competitors of American Financial Group Inc.

    1. Berkshire Hathaway Inc.

    One of the major competitors of American Financial Group Inc. is Berkshire Hathaway Inc. Led by legendary investor Warren Buffett, Berkshire Hathaway is a multinational conglomerate with diverse holdings in insurance, reinsurance, utilities, railroads, and many other industries. With its vast financial resources and extensive industry knowledge, Berkshire Hathaway is a formidable competitor that poses a significant threat to American Financial Group Inc.

    2. The Travelers Companies, Inc.

    Another prominent competitor of American Financial Group Inc. is The Travelers Companies, Inc., a leading provider of property and casualty insurance for businesses and individuals. With a strong market presence and a focus on risk management, Travelers has established itself as a key player in the insurance industry. Its wide range of insurance products and extensive distribution network make it a direct competitor to American Financial Group Inc.

    3. Chubb Limited

    Chubb Limited, a global insurance company, is also a notable competitor of American Financial Group Inc. Chubb operates in diverse segments of the insurance industry, including property and casualty, accident and health, and reinsurance. With a strong international presence and a reputation for exceptional customer service, Chubb competes directly with American Financial Group Inc. in various insurance markets, challenging its market share and profitability.

    4. The Hartford Financial Services Group, Inc.

    The Hartford Financial Services Group, Inc. is a diversified financial services company and a significant competitor to American Financial Group Inc. The company primarily focuses on property and casualty insurance, group benefits, and mutual funds. With a long history and a strong brand reputation, The Hartford has built a loyal customer base and competes directly with American Financial Group Inc. in several insurance and investment sectors.

    5. Allstate Corporation

    Allstate Corporation, one of the largest publicly traded personal lines insurers in the United States, is also a competitor to American Financial Group Inc. Allstate offers a wide range of insurance products, including auto, home, and life insurance, and operates through multiple distribution channels. With its extensive advertising campaigns and a strong market presence, Allstate poses a significant competitive challenge to American Financial Group Inc. in the insurance market.


    American Financial Group Inc. operates in a highly competitive landscape, facing tough competition from established companies such as Berkshire Hathaway Inc., The Travelers Companies, Inc., Chubb Limited, The Hartford Financial Services Group, Inc., and Allstate Corporation. These competitors have strong market positions, diverse product offerings, and extensive resources, making it crucial for American Financial Group Inc. to continually adapt, innovate, and differentiate itself to maintain its competitive edge in the financial services industry.

    American Financial Group Inc SWOT Analysis


    • Strong financial performance: American Financial Group Inc has a history of delivering strong financial results, with consistent revenue growth and profitability. This is attributed to its diversified business model and disciplined underwriting practices.

    • Diversified business segments: The company operates in various business segments, including property and casualty insurance, annuity, and supplemental insurance. This diversification helps to mitigate risks associated with any specific industry or market.

    • Experienced management team: American Financial Group Inc is led by a highly experienced management team that has a deep understanding of the insurance industry. Their expertise and strategic decision-making have contributed to the company's success.

    • Strong brand reputation: The company has built a strong brand reputation over the years, known for its reliability, customer service, and financial strength. This reputation helps attract and retain customers, as well as gain the trust of investors and partners.


    • Dependence on interest rates: American Financial Group Inc's annuity business is sensitive to interest rate fluctuations. Lower interest rates can negatively impact the company's profitability, as it affects the investment income generated from its annuity portfolio.

    • Exposure to catastrophe losses: As a property and casualty insurer, American Financial Group Inc is exposed to potential losses from natural disasters and other catastrophic events. This can result in significant claims payouts, impacting the company's financial performance.

    • Limited international presence: The company's operations are primarily focused on the United States. While this provides stability and familiarity, it also limits potential growth opportunities in international markets.


    • Increasing demand for insurance: The insurance industry continues to grow due to increasing awareness of risk management and the need for financial protection. This presents an opportunity for American Financial Group Inc to expand its customer base and offer innovative insurance products.

    • Expansion into new markets: The company can explore opportunities to expand its operations into new geographical markets. This can help diversify its revenue streams and reduce dependence on any specific market.

    • Technological advancements: Rapid advancements in technology, such as artificial intelligence and big data analytics, offer opportunities for American Financial Group Inc to enhance its underwriting process, improve customer experience, and streamline operations.


    • Intense competition: The insurance industry is highly competitive, with numerous players vying for market share. American Financial Group Inc faces competition from both established insurers and new entrants, which can put pressure on pricing and profitability.

    • Regulatory challenges: The insurance industry is subject to extensive regulations, which can create compliance burdens and increase costs. Changes in regulations or new regulatory requirements can impact American Financial Group Inc's operations and profitability.

    • Economic uncertainty: Economic downturns or recessions can adversely affect the insurance industry, as individuals and businesses may reduce their insurance coverage or delay purchasing new policies. American Financial Group Inc is exposed to economic fluctuations, which can impact its financial performance.

    Key Takeaways

    • American Financial Group Inc is owned by the Lindner family, specifically Carl H. Lindner III and his family members.
    • The mission statement of American Financial Group Inc is to be a premier provider of insurance and financial solutions, focused on niche markets where it can achieve sustainable competitive advantage.
    • American Financial Group Inc primarily makes money through its insurance operations, which include property and casualty insurance, specialty insurance, and annuity and supplemental insurance products.
    • The Business Model Canvas of American Financial Group Inc involves key activities such as underwriting insurance policies, managing investments, and providing financial services to clients.
    • Competitors of American Financial Group Inc include other insurance companies such as Chubb Ltd, The Travelers Companies Inc, and Arch Capital Group Ltd.
    • In terms of SWOT analysis, American Financial Group Inc's strengths lie in its diversified insurance portfolio and strong financial performance, while its weaknesses include exposure to market risks. Opportunities for the company include expanding into new markets and offering innovative insurance solutions, while threats include intense competition and regulatory challenges.


    In conclusion, American Financial Group Inc is a prominent player in the financial industry, owning and operating various subsidiaries. With a mission to be an industry leader in providing superior financial solutions, the company aims to generate profitable returns for its shareholders. American Financial Group Inc primarily makes money through its insurance operations, including property and casualty, specialty casualty, and annuity segments. The company's business model canvas explains its key activities, resources, and value proposition, highlighting its focus on underwriting expertise and risk management. While the company faces competition from various firms in the industry, some of its major competitors include The Travelers Companies Inc, Chubb Ltd, and Berkshire Hathaway Inc. Conducting a SWOT analysis reveals American Financial Group Inc's strengths, weaknesses, opportunities, and threats, providing insights into the company's overall position in the market. Overall, American Financial Group Inc continues to strive for success and growth in the financial sector.


    What is a SWOT analysis in the financial industry?

    A SWOT analysis in the financial industry is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats of a financial institution or organization. It helps to identify the internal and external factors that impact the financial performance and competitiveness of the organization.

    Strengths: These are the internal factors that give the financial institution a competitive advantage over its competitors. It can include factors such as a strong brand reputation, a wide range of financial products and services, a well-established customer base, experienced staff, advanced technology infrastructure, or strong financial performance.

    Weaknesses: These are the internal factors that hinder the financial institution's performance or put it at a disadvantage compared to its competitors. It can include factors such as outdated technology, inefficient processes, lack of diversification in product offerings, poor customer service, or high operating costs.

    Opportunities: These are the external factors that the financial institution can capitalize on to enhance its performance or gain a competitive edge. It can include factors such as emerging markets, regulatory changes, advancements in technology, increased demand for specific financial products or services, or strategic partnerships.

    Threats: These are the external factors that pose risks or challenges to the financial institution. It can include factors such as intense competition, economic downturns, changing customer preferences, regulatory compliance requirements, cybersecurity threats, or interest rate fluctuations.

    By conducting a SWOT analysis, financial institutions can gain insights into their current position, identify areas for improvement, devise strategic plans, and make informed decisions to achieve their financial goals.

    How can I find a SWOT analysis on a company?

    There are several ways to find a SWOT analysis on a specific company:

    1. Company Websites: Check the company's official website as they sometimes provide SWOT analysis in their annual reports or investor presentations.

    2. Business Databases: Utilize business databases such as Bloomberg, Hoovers, or MarketLine Advantage. These platforms often have SWOT analysis available for various companies.

    3. Stock Market Websites: Websites like Yahoo Finance, Google Finance, or Seeking Alpha may provide SWOT analysis along with other financial information on a company.

    4. Industry Reports: Look for industry-specific reports from market research firms like IBISWorld, Statista, or Frost & Sullivan. These reports often include SWOT analysis for major companies in the industry.

    5. Business Publications: Check business publications like Forbes, Business Insider, or The Wall Street Journal. They often publish articles or reports that include SWOT analysis for well-known companies.

    6. Academic Resources: University libraries or online academic databases like JSTOR or ProQuest may have research papers or case studies that include SWOT analysis on specific companies.

    Remember that SWOT analysis can be subjective and may vary depending on the source. It is advisable to cross-reference information from multiple sources to get a comprehensive understanding.

    How to do a financial SWOT analysis?

    To perform a financial SWOT analysis, follow these steps:

    1. Identify Strengths:

      • Evaluate your company's financial performance and identify areas where it excels.
      • Consider factors such as strong cash flow, low debt levels, high profit margins, or a diverse customer base.
      • Analyze any unique financial advantages that set your company apart from competitors.
    2. Determine Weaknesses:

      • Examine areas where your company is financially vulnerable or underperforming.
      • Look for factors like excessive debt, low profitability, inconsistent cash flow, or reliance on a single customer or market.
      • Assess any financial limitations that hinder your company's growth or competitiveness.
    3. Explore Opportunities:

      • Identify external factors or trends that could positively impact your company's financial situation.
      • Consider market growth, emerging technologies, favorable economic conditions, or new customer segments.
      • Assess potential opportunities for revenue growth, cost savings, or expansion into new markets or products.
    4. Analyze Threats:

      • Evaluate external factors or trends that could negatively impact your company's financial health.
      • Examine competition, changing regulations, economic downturns, or shifts in consumer preferences.
      • Assess potential threats that could harm profitability, increase costs, or disrupt your business operations.
    5. Prioritize and Develop Strategies:

      • Based on your analysis, prioritize the most significant factors from each category (strengths, weaknesses, opportunities, threats).
      • Develop strategies to leverage strengths, overcome weaknesses, seize opportunities, and mitigate threats.
      • Consider actions such as capitalizing on financial strengths, addressing weaknesses through cost-cutting or process improvements, pursuing identified opportunities, or implementing risk management measures.
    6. Monitor and Review:

      • Regularly monitor the financial performance of your company and the external environment.
      • Assess the effectiveness of your strategies and adjust them as needed.
      • Stay updated on industry trends and market conditions to identify new opportunities or threats.

    Remember, a financial SWOT analysis is just one tool for assessing your company's financial position. It should be used in conjunction with other financial analysis techniques to gain a comprehensive understanding of your business's financial health.

    What is a SWOT analysis for a real company?

    One example of a SWOT analysis for a real company is for Apple Inc.


    1. Strong brand image and customer loyalty.
    2. Innovative and technologically advanced products.
    3. Extensive global presence and distribution channels.
    4. Robust financial performance and high-profit margins.
    5. Strong ecosystem of products and services.


    1. High product pricing compared to competitors.
    2. Dependence on a limited range of products, primarily iPhone.
    3. Over-reliance on suppliers in the Asian region.
    4. Limited customization options for products.
    5. Vulnerability to rapid technological advancements and changing consumer preferences.


    1. Growing demand for wearable technology and smart home devices.
    2. Expansion into emerging markets with rising disposable incomes.
    3. Increased focus on services such as Apple Music and Apple TV+.
    4. Potential for collaboration with other companies in the healthcare sector.
    5. Development of autonomous vehicle technology.


    1. Intense competition from other tech giants like Samsung, Google, and Microsoft.
    2. Rapidly changing regulatory environment, especially related to data privacy.
    3. Economic uncertainties and fluctuations in global markets.
    4. Counterfeit and low-cost alternatives impacting market share.
    5. Potential supply chain disruptions, such as natural disasters or pandemics.

    Want to create a presentation now?

    • instantly

      Instantly Create A Deck

      Let PitchGrade do this for me

    • smile

      Hassle Free

      We will create your text and designs for you. Sit back and relax while we do the work.

    Explore More Content