A Message from Lisa Corless

When I think about the 113 years we’ve spent building exceptional relationships with agent partners and supporting our mutual customers, I’m proud of the trust we’ve earned and the promises we’ve kept.

Even as we’ve evolved and enhanced the way we serve our customers, we’ve strengthened our position as an industry leader through focus, discipline and the commitment of our teammates, qualities that have defined AF Group for more than a century.

In 2025, this tradition and commitment continued, marked by sustainable growth despite the challenges of a soft workers’ compensation market and the impact of the California wildfires. Overcoming these challenges reinforced the strength of our operating model and the dedication of our teammates, who remain focused on serving customers with excellence every day.

We also made meaningful progress in advancing our use of artificial intelligence, integrating new capabilities that enhanced efficiency and enabled teammates to focus more time on delivering service and value.

Throughout the year, we strengthened our portfolio, expanded product capabilities and invested in tools that improved service to customers and agent partners. Just as importantly, our teammates remained committed to one another and the communities we serve, bringing our People First culture to life every day.

To our agent partners, customers and teammates, thank you for your continued trust and partnership. Your support made our success in 2025 possible, and I look forward to our continued growth together.

Lisa Corless | President & CEO

113 years of building exceptional relationships with agent partners to provide support for our mutual customers:

Business Performance Overview: Focus and Discipline

AF Group’s performance in 2025 reflects an organization built to navigate complexity with effectiveness and consistency. These results were not accidental but rather, a reflection of a disciplined operating model supported by diversification and thoughtful execution. We maintained profitability in a challenging external environment, closing the year with a combined ratio just under 100 percent and net income exceeding $200 million.

While certain underwriting impacts were unavoidable, they were specific, measurable and contained within expectations, reinforcing confidence in the strength of the business.

At the same time, AF Group continued to generate meaningful results, with $3.34 billion in gross written premium, demonstrating our ability to compete effectively even in a soft market.

Overall, our results reinforced a key principle: stability is created not by avoiding challenges, but by managing them with discipline and clarity of purpose.

Financial Results: Balanced Results in a Dynamic Environment

AF Group’s financial results in 2025 reflect a careful balance between growth, risk management and overall profitability. In a year when underwriting conditions were pressured — particularly in workers’ compensation — investment and other income played a critical role, helping offset those impacts and supporting strong overall performance.

Our combined ratio, while slightly elevated, reflects the influence of discrete events, including wildfire losses and bad-debt cleanup. Importantly, these were non-recurring factors, not indicators of ongoing performance challenges.

Premium volume finished below plan due to persistent market softness; however, performance trends improved in the second half of the year, particularly in submissions and new business activity — an encouraging sign heading into 2026.

This outcome highlights AF Group’s ability to deliver consistent financial results while adapting to changing market dynamics.

A Strong Culture and a Clear Path Forward

AF Group’s success is driven not only by financial results, but by the strength of its people and its commitment to community. Just as we support our customers whenever they need us, we partner with amazing human service organizations that serve the communities where we live and work across the country.