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Shareholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2012
Stockholders' Equity Note [Abstract]  
Summary of stock options activity
Data for stock options issued under AFG’s stock incentive plans is presented below:
 
Shares
 
Average
Exercise
Price
 
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic
Value
(in millions)
Outstanding at January 1, 2012
7,922,474

 
$
27.05

 
 
 
 
Granted
1,076,500

 
$
38.10

 
 
 
 
Exercised
(1,702,782
)
 
$
23.86

 
 
 
 
Forfeited/Cancelled
(76,450
)
 
$
31.22

 
 
 
 
Outstanding at December 31, 2012
7,219,742

 
$
29.40

 
5.5 years
 
$
73

 
 
 
 
 
 
 
 
Options exercisable at December 31, 2012
4,405,197

 
$
28.13

 
4.0 years
 
$
50
Assumptions used in estimating weighted average fair value of options on grant date
The weighted average fair value of options granted during 2012, 2011 and 2010 was$13.02 per share, $12.49 per share and $8.90 per share, respectively, based on the following assumptions:
 
2012
 
2011
 
2010
Expected dividend yield
1.8
%
 
1.9
%
 
2.2
%
Expected volatility
39
%
 
38
%
 
39
%
Expected term (in years)
7.3

 
7.3

 
7.5

Risk-free rate
1.4
%
 
3.0
%
 
3.2
%
Summary of restricted stock awards activity
The restricted Common Stock that AFG has granted generally vests over a three or four year period. Data relating to grants of restricted stock is presented below:
 
Shares
 
Average
Grant Date
Fair Value
Outstanding at January 1, 2012
415,122

 
$
27.85

Granted
133,931

 
$
38.09

Vested
(103,804
)
 
$
29.08

Outstanding at December 31, 2012
445,249

 
$
30.65
Accumulated other comprehensive income (loss), net of tax
The progression of the components of accumulated other comprehensive income follows (in millions):
 
 
 
Other Comprehensive Income
 
 
 
 
 
 
AOCI
Beginning
Balance
 
Pretax
 
Tax
 
Noncontrolling
interests
 
Net
 
Other (b)
 
AOCI
Ending
Balance
 
Year ended December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on securities
$
578

(a)
$
388

 
$
(136
)
 
$
(7
)
 
$
245

 
$
—

 
$
823

(a)
Foreign currency translation adjustments
10

 
6

 
—

 
(1
)
 
5

 
(1
)
 
14

 
Pension and other postretirement plans adjustments
(8
)
 
2

 
—

 
—

 
2

 
—

 
(6
)
 
Total
$
580

 
$
396

 
$
(136
)
 
$
(8
)
 
$
252

 
$
(1
)
 
$
831

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on securities
$
491

(a)
$
141

 
$
(49
)
 
$
(5
)
 
$
87

 
$
—

 
$
578

(a)
Foreign currency translation adjustments
12

 
(1
)
 
—

 
(1
)
 
(2
)
 
—

 
10

 
Pension and other postretirement plans adjustments
(8
)
 
—

 
—

 
—

 
—

 
—

 
(8
)
 
Total
$
495

 
$
140

 
$
(49
)
 
$
(6
)
 
$
85

 
$
—

 
$
580

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2010
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on securities
$
167

 
$
507

 
$
(177
)
 
$
(2
)
 
$
328

 
$
(4
)
 
$
491

(a)
Foreign currency translation adjustments
5

 
8

 
—

 
—

 
8

 
(1
)
 
12

 
Pension and other postretirement plans adjustments
(8
)
 
—

 
—

 
—

 
—

 
—

 
(8
)
 
Total
$
164

 
$
515

 
$
(177
)
 
$
(2
)
 
$
336

 
$
(5
)
 
$
495

 
 
(a)
Includes net unrealized gains of $33 million at December 31, 2012 compared to net unrealized losses of $16 million and $11 million at December 31, 2011 and 2010, respectively, related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.
(b)
Other reflects the cumulative effect of accounting change in 2010 and the acquisition of noncontrolling interest in a subsidiary in 2012.