Derivatives (Tables)

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives included in Balance Sheet at fair value

The following derivatives are included in AFG’s Balance Sheet at fair value (in millions):

		December 31, 2012				December 31, 2011
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	110	$	—	$	99	$	—
Interest rate swaptions	Other investments	1		—		5		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		465		—		361
Equity index call options	Other investments	132		—		66		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		17		—		23
		$	243	$	482	$	170	$	384

Summary of gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives

The following table summarizes the gain (loss) included in the Statement of Earnings for changes in the fair value of these derivatives for 2012, 2011 and 2010 (in millions):

Derivative	Statement of Earnings Line	2012			2011			2010
MBS with embedded derivatives	Realized gains	$	5		$	—		$	50
Interest rate swaptions	Realized gains	(4		)	(24		)	(7		)
Fixed-indexed annuities (embedded derivative)	Annuity benefits	(57		)	(29		)	(23		)
Equity index call options	Annuity benefits	66			(13		)	41
Reinsurance contracts (embedded derivative)	Investment income	(6		)	(9		)	(9		)
		$	4		$	(75	)	$	52