American Family Insurance reports strong financial results for 2025

American Family Insurance reports strong financial results for 2025

American Family Insurance reported strong financial results for 2025, marked by improved profitability, higher member equity and asset growth, and continued expense discipline. Results were supported by lower catastrophe losses and deliberate customer-driven strategic actions, while overall industry growth moderated.

The company's combined ratio improved substantially in 2025, reflecting fewer severe weather events as well as intentional decisions to strengthen long-term financial stability. Continued focus on expense and portfolio management further reduced the expense ratio, reinforcing American Family's commitment to delivering value, protection and reliability for its policyholders.

"Insurance is ultimately a promise that we will be there when our customers need us most," said Bill Westrate, chair and CEO of American Family Insurance. "In 2025, we honored our commitments to our policyholders while also strengthening financial resilience, operating with greater efficiency, and investing in technology and enhanced experiences for our customers."

2025 results

Revenue declines slightly as strategic actions take effect

Total revenue decreased to $19.5 billion in 2025 from $20.0 billion in 2024, as direct written premium declined 5.6%. Revenue was impacted by strategic actions, including the 2024 sale of The General, the exit from personal lines at affiliate Main Street America Insurance, and targeted underwriting changes in commercial lines.

Policy retention and new business also declined in 2025, consistent with broader industry trends. American Family ended the year with 12.1 million policies in force, down 11% from 2024 or 3% excluding the effect of the aforementioned strategic actions.

Combined and expense ratios see significant improvement

American Family Insurance reported a combined ratio of 84.6% for all property and casualty lines, improving 12.4 points from 96.6% in 2024. Results benefited from fewer large catastrophe losses, which helped offset losses from January wildfires and early spring wind and hailstorms.

The expense ratio decreased to 31.9%, improving from 33.1% in 2024 and marking the company's lowest expense ratio since at least 1992. This is a direct reflection of the company's commitment to effective exposure and expense management to deliver even greater value for customers.

A net underwriting gain of $2.6 billion in property-casualty lines was reported in 2025, compared to a net underwriting gain of $603 million in 2024, driven primarily by reduced catastrophe and non-catastrophe losses year-over-year.

Quiet weather contributes to fewer claims in 2025

Following the three highest catastrophe loss years in company history, the number of severe weather events were notably lower. In 2025, $2.4 billion was paid in catastrophe claims, down from $3.3 billion in 2024. An additional $7.0 billion in non-catastrophe claims were paid, in service to our customers through the normal course of business, down from $8.2 billion in 2024, with the majority of that decrease attributed to the sale of The General operating company. In total, $9.4 billion was paid for all claims in 2025.

Life insurance policy growth and strong growth in members' equity are notable

Life insurance policies in force increased by 0.4% in 2025, while American Family Life Insurance Company reported a decrease in its gain from operations to $122 million, from $129 million in 2024. Higher investment income was offset by higher expenses, lower premium income and an increase in policyholder benefits.

Members' equity increased to $14.3 billion at the end of 2025, up from $10.6 billion in 2024, due primarily to underwriting results, investment income and capital gains. Group assets also rose to $45.5 billion from $42.2 billion in 2024.

"While industry growth slowed as profitability recovered, we are taking deliberate steps to achieve the right balance between profit and growth," said Troy Van Beek, chief financial officer and treasurer. "Our disciplined approach and long-term strategies position us to respond to uncertainty while continuing to deliver industry-leading service to our customers."

Commitment to strengthening communities continues

Through the American Family Insurance Dreams Foundation, employees and agency owners contributed $16 million to charity and volunteered more than 105,000 hours in 2025. The PGA TOUR Champions American Family Insurance Championship raised $2.035 million, bringing total event donations to nearly $22 million since 2016.

The company also announced a $10 million donation to the American Family Children's Hospital to support expansion of the sixth-floor intensive care unit, reinforcing its commitment to community health and well-being.

"Our strong financial position enables us to invest in innovation, expand our national presence, and support the communities we are proud to serve," Westrate said. "As we enter our 99th year in 2026, we are positioned to deliver exceptional value for our customers today and for generations to come."

For more, see the 2025 annual report on amfam.com.

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About American Family Insurance
American Family Insurance, a mutual holding company based in Madison, Wis., has been serving customers since 1927. We inspire, protect and restore dreams through our insurance products, exceptional service from our agency owners and employees, community investments and creative partnerships. American Family Insurance is the nation's 12th-largest property/casualty insurance company, ranking No. 202 on the Fortune 500 list. American Family has a current 'a+' credit rating through AM Best, and has distinction as a "Standing the Test of Time" company, which is represented by having an AM Best financial strength rating of 'A' or better for at least 75 years. The company offers American Family-brand products through a network of exclusive agency owners as well as nationwide through key strategic partnerships. American Family Insurance also includes Homesiteand Main Street America Insurance. The company has approximately 10,500 employees nationwide.