Segments of Operations

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segments of Operations

Segments of Operations

AFG manages its business as four segments: (i) Property and casualty insurance, (ii) Annuity, (iii) Run-off long-term care and life and (iv) Other, which includes holding company costs and the operations attributable to the noncontrolling interests of the managed investment entities.

AFG reports its property and casualty insurance business in the following Specialty sub-segments: (i) Property and transportation, which includes physical damage and liability coverage for buses, trucks and recreational vehicles, inland and ocean marine, agricultural-related products and other property coverages, (ii) Specialty casualty, which includes primarily excess and surplus, general liability, executive liability, professional liability, umbrella and excess liability, specialty coverage in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance, and (iii) Specialty financial, which includes risk management insurance programs for leasing and financing institutions (including collateral and lender-placed mortgage property insurance), surety and fidelity products and trade credit insurance. AFG’s annuity business markets traditional fixed and fixed-indexed annuities in the retail, financial institutions and education markets. AFG’s reportable segments and their components were determined based primarily upon similar economic characteristics, products and services.

The following tables (in millions) show AFG’s revenues and earnings before income taxes by segment and sub-segment.

	Three months ended March 31,
	2014		2013
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	301	$	293
Specialty casualty	313		259
Specialty financial	117		116
Other specialty	23		19
Total premiums earned	754		687
Net investment income	67		66
Other income	2		3
Total property and casualty insurance	823		756
Annuity:
Net investment income	275		248
Other income	18		14
Total annuity	293		262
Run-off long-term care and life	51		50
Other	25		23
Total revenues before realized gains	1,192		1,091
Realized gains on securities	19		57
Total revenues	$	1,211	$	1,148

	Three months ended March 31,
	2014			2013
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	6		$	10
Specialty casualty	38			19
Specialty financial	10			13
Other specialty	5			6
Other lines	(1		)	(5		)
Total underwriting	58			43
Investment and other income, net	54			56
Total property and casualty insurance	112			99
Annuity	73			76
Run-off long-term care and life	(2		)	(1		)
Other (a)	(41		)	(56		)
Total earnings before realized gains and income taxes	142			118
Realized gains on securities	19			57
Total earnings before income taxes	$	161		$	175

(a) Includes holding company expenses and earnings (losses) of managed investment entities attributable to noncontrolling interests (earnings of less than $1 million for the first three months of 2014 and losses of $11 million for the first three months of 2013).