Derivatives (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives included in Balance Sheet at fair value

The following derivatives that do not qualify for hedge accounting under GAAP are included in AFG’s Balance Sheet at fair value (in millions):

		December 31, 2016				December 31, 2015
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	107	$	—	$	130	$	—
Public company warrants	Equity securities	4		—		4		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		1,759		—		1,369
Equity index call options	Equity index call options	492		—		241		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		8		—		7
		$	603	$	1,767	$	375	$	1,376

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 AFG’s Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting for 2016, 2015 and 2014 (in millions):

Derivative	Statement of Earnings Line	2016			2015			2014
MBS with embedded derivatives	Realized gains on securities	$	(9	)	$	(16	)	$	3
Public company warrants	Realized gains on securities	—			—			—
Interest rate swaptions	Realized gains on securities	—			—			(2		)
Fixed-indexed annuities (embedded derivative) (*)	Annuity benefits	(211		)	(17		)	(182		)
Equity index call options	Annuity benefits	141			(56		)	181
Reinsurance contracts (embedded derivative)	Net investment income	(1		)	6			(3		)
		$	(80	)	$	(83	)	$	(3	)

(*) The change in fair value of the embedded derivative includes losses related to unlocking of actuarial assumptions of $17 million in 2016 compared to losses of $28 million in 2015 and gains related to unlocking of actuarial assumptions of $58 million in 2014.