Analogy-making is at the core of human intelligence and creativity with applications to such diverse tasks as commonsense reasoning, learning, language acquisition, and story telling. This paper contributes to the foundations of artificial general intelligence by introducing an abstract algebraic framework of analogical proportions of the form `$a$ is to $b$ what $c$ is to $d$' in the general setting of universal algebra. This enables us to compare mathematical objects possibly across different domains in a uniform way which is crucial for AI-systems. The main idea is to define solutions to analogical proportions in terms of generalizations and to derive abstract terms of concrete elements from a `known' source domain which can then be instantiated in an `unknown' target domain to obtain analogous elements. We extensively compare our framework with two prominent and recently introduced frameworks of analogical proportions from the literature in the concrete domains of sets, numbers, and words and show that our framework is strictly more general in all of these cases which provides strong evidence for the applicability of our framework. In a broader sense, this paper is a first step towards an algebraic theory of analogical reasoning and learning systems with potential applications to fundamental AI-problems like commonsense reasoning and computational learning and creativity.