A Message from Lisa Corless

When I think about the 113 years we have spent building exceptional relationships with agent partners and supporting our mutual customers, I reflect on the events that shaped our history. Through breakthroughs, challenges and change, we have continued to learn, grow and adapt.

This year was no different. We faced unexpected headwinds, but our response proved that how we navigate adversity matters more than the conditions themselves. With focus, discipline and a shared commitment to long-term success, our teammates once again demonstrated the resilience that has defined our organization for more than a century.

It was a year of disciplined growth despite a continued soft workers’ compensation market, financial challenges from wildfire losses and residual impacts from our 2024 cybersecurity event. Overcoming these obstacles reinforced the strength of our operating model and our teammates’ commitment to creating long-term value while maintaining a culture of excellence.

We also made meaningful progress in artificial intelligence with a people-centered focus: empowering teammates to leverage technology more effectively, so they can spend more time where their expertise, judgment and relationships matter most.

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.