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Investments (Tables)
 12 Months Ended
Dec. 31, 2012
Investments, Debt and Equity Securities [Abstract]  
Available for sale fixed maturities and equity securities
Available for sale fixed maturities and equity securities at December 31 consisted of the following (in millions): 

2012
 
2011
Amortized
Cost
 
Fair
Value
 
Gross Unrealized
 
Amortized
Cost
 
Fair
Value
 
Gross Unrealized
Gains
 
Losses
 
Gains
 
Losses
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government and government agencies
$
373

 
$
388

 
$
15

 
$
—

 
$
363

 
$
382

 
$
19

 
$
—

States, municipalities and political subdivisions
4,144

 
4,468

 
329

 
(5
)
 
3,613

 
3,877

 
267

 
(3
)
Foreign government
242

 
260

 
18

 
—

 
236

 
254

 
18

 
—

Residential MBS
3,921

 
4,204

 
337

 
(54
)
 
3,858

 
3,848

 
170

 
(180
)
Commercial MBS
2,583

 
2,918

 
335

 
—

 
2,628

 
2,840

 
218

 
(6
)
Corporate and other
10,820

 
11,880

 
1,067

 
(7
)
 
9,864

 
10,606

 
802

 
(60
)
Total fixed maturities
$
22,083

 
$
24,118

 
$
2,101

 
$
(66
)
 
$
20,562

 
$
21,807

 
$
1,494

 
$
(249
)
Common stocks
$
600

 
$
749

 
$
157

 
$
(8
)
 
$
610

 
$
797

 
$
207

 
$
(20
)
Perpetual preferred stocks
$
178

 
$
190

 
$
13

 
$
(1
)
 
$
134

 
$
131

 
$
5

 
$
(8
)
Available for sale securities in a continuous unrealized loss position
The following tables show gross unrealized losses (in millions) on fixed maturities and equity securities by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2012 and 2011.

 
  
Less Than Twelve Months
 
Twelve Months or More
 
Unrealized
Loss
 
Fair
Value
 
Fair Value as
% of  Cost
 
Unrealized
Loss
 
Fair
Value
 
Fair Value as
% of  Cost
 
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government and government agencies
$
—

 
$
22

 
100
%
 
$
—

 
$
—

 
—
%
 
States, municipalities and political subdivisions
(5
)
 
285

 
98
%
 
—

 
24

 
100
%
 
Foreign government
—

 
—

 
—
%
 
—

 
—

 
—
%
 
Residential MBS
(3
)
 
146

 
98
%
 
(51
)
 
411

 
89
%
 
Commercial MBS
—

 
16

 
100
%
 
—

 
—

 
—
%
 
Corporate and other
(3
)
 
383

 
99
%
 
(4
)
 
108

 
96
%
 
Total fixed maturities
$
(11
)
 
$
852

 
99
%
 
$
(55
)
 
$
543

 
91
%
 
Common stocks
$
(8
)
 
$
88

 
92
%
 
$
—

 
$
—

 
—
%
 
Perpetual preferred stocks
$
—

 
$
7

 
100
%
 
$
(1
)
 
$
25

 
96
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2011
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government and government agencies
$
—

 
$
2

 
100
%
 
$
—

 
$
—

 
—
%
 
States, municipalities and political subdivisions
(2
)
 
120

 
98
%
 
(1
)
 
59

 
98
%
 
Foreign government
—

 
1

 
100
%
 
—

 
—

 
—
%
 
Residential MBS
(59
)
 
1,141

 
95
%
 
(121
)
 
473

 
80
%
 
Commercial MBS
(6
)
 
183

 
97
%
 
—

 
18

 
100
%
 
Corporate and other
(43
)
 
940

 
96
%
 
(17
)
 
114

 
87
%
 
Total fixed maturities
$
(110
)
 
$
2,387

 
96
%
 
$
(139
)
 
$
664

 
83
%
 
Common stocks
$
(19
)
 
$
169

 
90
%
 
$
(1
)
 
$
4

 
80
%
 
Perpetual preferred stocks
$
(1
)
 
$
23

 
96
%
 
$
(7
)
 
$
31

 
82
%
Roll forward of cumulative credit portion of other-than-temporary impairments on fixed maturity securities
A progression of the credit portion of other-than-temporary impairments on fixed maturity securities for which the non-credit portion of an impairment has been recognized in other comprehensive income is shown below (in millions).
 
2012
 
2011
 
2010
Balance at January 1
$
187

 
$
143

 
$
99

Additional credit impairments on:
 
 
 
 
 
Previously impaired securities
5

 
44

 
44

Securities without prior impairments
2

 
8

 
9

Reductions — disposals
(2
)
 
(8
)
 
(9
)
Balance at December 31
$
192

 
$
187

 
$
143
Available for sale fixed maturity securities by contractual maturity date
  
Amortized
 
Fair Value
Cost
 
Amount
 
%
Maturity
 
 
 
 
 
One year or less
$
867

 
$
887

 
4
%
After one year through five years
5,526

 
5,963

 
25

After five years through ten years
6,675

 
7,394

 
31

After ten years
2,511

 
2,752

 
11

 
15,579

 
16,996

 
71

MBS
6,504

 
7,122

 
29

Total
$
22,083

 
$
24,118

 
100
%
Components of the net unrealized gain on securities, included in Accumulated Other Comprehensive Income
The following table shows (in millions) the components of the net unrealized gain on securities that is included in Accumulated Other Comprehensive Income in AFG’s Balance Sheet.
 
Pretax
 
Deferred Tax and
Amounts  Attributable
to Noncontrolling
Interests
 
Net
December 31, 2012
 
 
 
 
 
Unrealized gain on:
 
 
 
 
 
Fixed maturities
$
2,035

 
$
(726
)
 
$
1,309

Equity securities
161

 
(57
)
 
104

Deferred policy acquisition costs
(710
)
 
247

 
(463
)
Annuity benefits accumulated
(136
)
 
48

 
(88
)
Life, accident and health reserves
(117
)
 
41

 
(76
)
Other liabilities
57

 
(20
)
 
37

 
$
1,290

 
$
(467
)
 
$
823

December 31, 2011
 
 
 
 
 
Unrealized gain on:
 
 
 
 
 
Fixed maturities
$
1,245

 
$
(444
)
 
$
801

Equity securities
184

 
(65
)
 
119

Deferred policy acquisition costs
(537
)
 
188

 
(349
)
Annuity benefits accumulated
(30
)
 
11

 
(19
)
Other liabilities
40

 
(14
)
 
26

 
$
902

 
$
(324
)
 
$
578
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments are summarized as follows (in millions):
 
Fixed
Maturities
 
Equity
Securities
 
Mortgage
Loans
and Other
Investments
 
Other (a)
 
Tax
Effects
 
Noncon-
trolling
Interests
 
Total
Year ended December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized before impairments
$
55

 
$
192

 
$
(3
)
 
$
(8
)
 
$
(83
)
 
$
(2
)
 
$
151

Realized — impairments
(9
)
 
(24
)
 
—

 
7

 
9

 
—

 
(17
)
Change in unrealized
790

 
(23
)
 
—

 
(379
)
 
(136
)
 
(7
)
 
245

Year ended December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized before impairments
$
68

 
$
88

 
$
(24
)
 
$
(4
)
 
$
(45
)
 
$
(2
)
 
$
81

Realized — impairments
(57
)
 
(6
)
 
(5
)
 
16

 
18

 
1

 
(33
)
Change in unrealized
407

 
(48
)
 
—

 
(218
)
 
(49
)
 
(5
)
 
87

Year ended December 31, 2010
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized before impairments
$
146

 
$
36

 
$
(5
)
 
$
(14
)
 
$
(57
)
 
$
(2
)
 
$
104

Realized — impairments
(79
)
 
(1
)
 
(6
)
 
24

 
22

 
—

 
(40
)
Change in unrealized
751

 
49

 
—

 
(293
)
 
(177
)
 
(2
)
 
328


(a)
Primarily adjustments to deferred policy acquisition costs and reserves related to annuities and long-term care business.
Gross realized gains and losses on available for sale fixed maturity and equity security investments
Gross realized gains and losses (excluding impairment writedowns and mark-to-market of derivatives) on available for sale fixed maturity and equity security investment transactions included in the Statement of Cash Flows consisted of the following (in millions):
  
2012
 
2011
 
2010
Fixed maturities:
 
 
 
 
 
Gross gains
$
55

 
$
77

 
$
108

Gross losses
(4
)
 
(9
)
 
(11
)
Equity securities:
 
 
 
 
 
Gross gains
196

 
90

 
35

Gross losses
(4
)
 
(1
)
 
—