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09/16/2025 – 05:34 PM
CINCINNATI – American Financial Group, Inc. (NYSE: AFG) announced today a registered offering of $350 million in Senior Notes with a 5.0% interest rate, maturing on September 23, 2035. The notes were priced at 99.162% of their principal amount, signaling robust investor confidence in the insurer’s long-term stability. This move comes amid a fluctuating interest rate environment, prompting companies to strategically lock in rates that offer a balance between attracting investors and managing debt servicing costs.
AFG anticipates net proceeds of approximately $344 million from the offering. The company intends to allocate these funds towards general corporate purposes, including potential repurchases of its outstanding common shares. This buyback strategy could be seen as a move to bolster shareholder value, particularly as AFG perceives its stock to be undervalued.
The offering is expected to close on September 23, 2025, pending customary closing conditions. BofA Securities, Inc., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC are serving as joint book-running managers for the offering. PNC Capital Markets LLC, Fifth Third Securities, Inc., MUFG Securities Americas Inc. and U.S. Bancorp Investments, Inc. are acting as co-managers. The involvement of these major financial institutions underscores the significance and scale of AFG’s debt offering.
The offering is being made under an effective shelf registration statement filed with the Securities and Exchange Commission (SEC) on February 27, 2024. This shelf registration allows AFG to issue securities on a delayed or continuous basis, providing financial flexibility to capitalize on favorable market conditions. The company has filed a prospectus and related prospectus supplement with the SEC.
Copies of the prospectus and related prospectus supplement are available on the SEC website.
American Financial Group, Inc., based in Cincinnati, Ohio, is an insurance holding company operating primarily in property and casualty insurance through Great American Insurance Group. Focusing on specialized commercial products, AFG has built a longstanding presence, with roots dating back to 1872. The company’s strategic focus on specialized commercial products allows it to carve out a niche and potentially command higher margins compared to more commoditized insurance lines.
Forward-Looking Statements
This press release contains forward-looking statements. These statements are subject to risks and uncertainties. Actual results and/or financial condition could differ materially from those contained in or implied by such forward-looking statements. Factors that could cause such differences include: the risks and uncertainties AFG describes in its filings with the Securities and Exchange Commission; changes in financial, political and economic conditions; performance of securities markets; new legislation or declines in credit quality or credit ratings; the availability of capital; changes in insurance law or regulation; tax law and accounting changes; levels of natural catastrophes and severe weather; terrorist activities; disruption caused by cyber-attacks; development of insurance loss reserves; availability of reinsurance; competitive pressures; the ability to obtain adequate rates and policy terms; changes in AFG’s credit ratings; and the impact of international financial markets and the global economy.
These forward-looking statements are made only as of the date of this press release, and the Company assumes no obligation to update them.
Source: American Financial Group, Inc.
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