Insurance (Tables)

12 Months Ended

Dec. 31, 2016

Reconciliation of beginning and ending liability for unpaid losses and loss adjustment expenses

The following table provides an analysis of changes in the liability for losses and loss adjustment expenses over the past three years (in millions):



	2016			2015			2014
Balance at beginning of period	$	8,127		$	7,872		$	6,410
Less reinsurance recoverables, net of allowance	2,201			2,227			2,122
Net liability at beginning of period	5,926			5,645			4,288
Provision for losses and LAE occurring in the current year	2,730			2,662			2,488
Net increase (decrease) in the provision for claims of prior years:
Special A&E charges	36			67			24
Neon exited lines charge	57			—			—
Other	(61		)	(34		)	(18		)
Total losses and LAE incurred	2,762			2,695			2,494
Payments for losses and LAE of:
Current year	(841		)	(828		)	(789		)
Prior years	(1,512		)	(1,575		)	(1,340		)
Total payments	(2,353		)	(2,403		)	(2,129		)
Reserves of businesses acquired (disposed) (*)	(40		)	—			1,028
Foreign currency translation and other	(34		)	(11		)	(36		)
Net liability at end of period	6,261			5,926			5,645
Add back reinsurance recoverables, net of allowance	2,302			2,201			2,227
Gross unpaid losses and LAE included in the balance sheet	$	8,563		$	8,127		$	7,872


(*)	Reflects the November 2016 reinsurance to close transaction at Neon (discussed below) and the acquisition of Summit in April 2014 (discussed in Note B — “Acquisitions and Sale of Businesses”).

Short-duration insurance contracts, reconciliation of claims development to liability

A reconciliation of incurred and paid claims development information to the aggregate carrying amount of the liability for unpaid losses and LAE, with separate disclosure of reinsurance recoverables on unpaid claims is shown below (in millions):



	2016		2015
Unpaid losses and allocated LAE, net of reinsurance:
Specialty
Property and transportation	$	1,020	$	971
Specialty casualty	3,356		3,170
Specialty financial	228		219
Other specialty	240		240
Total Specialty (excluding foreign reserves)	4,844		4,600

Other reserves
Reserves for foreign operations	710		648
A&E reserves	337		327
Unallocated LAE	310		296
Other	60		55
Total other reserves	1,417		1,326
Total reserves, net of reinsurance	6,261		5,926

Add back reinsurance recoverables, net of allowance	2,302		2,201
Gross unpaid losses and LAE included in the balance sheet	$	8,563	$	8,127

Short-duration insurance contracts, claims development

The following claims development tables and associated disclosures related to short-duration insurance contracts are prepared by sub-segment within the property and casualty insurance business for the most recent 10 accident years. AFG determines its claim counts at the claimant or policy feature level depending on the particular facts and circumstances of the underlying claim. While the methodology is generally consistent within each sub-segment, there are minor differences between and within the sub-segments. The methods used to summarize claim counts have not changed significantly over the time periods reported in the tables below.



Property and transportation
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2016
	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	657	$	595	$	577	$	572	$	572	$	569	$	569	$	568	$	568	$	568	$	1	126,900
2008			923		871		852		853		856		854		855		856		854		3		157,173
2009					526		506		523		516		511		511		508		508		4		140,530
2010							702		662		668		676		679		679		683		10		140,614
2011									830		816		831		845		856		868		16		140,408
2012											890		884		897		909		922		27		146,584
2013													911		898		902		908		40		142,139
2014															868		852		841		67		137,214
2015																	840		802		106		134,407
2016																			760		250		109,187
																	Total		$	7,714



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		% (a)
2007	$	284	$	450	$	492	$	523	$	539	$	553	$	559	$	562	$	563	$	564	99.3	%
2008			352		706		761		799		824		835		846		846		847		99.2	%
2009					229		348		413		456		479		493		497		499		98.2	%
2010							328		505		556		618		649		660		665		97.4	%
2011									373		679		742		787		821		840		96.8	%
2012											582		725		793		841		868		94.1	%
2013													449		721		784		831		91.5	%
2014															337		646		711		84.5	%
2015																	367		594		74.1	%
2016																			296		38.9	%
																	Total		$	6,715
									Unpaid losses and LAE — years 2007 through 2016										999
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																21
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	1,020



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	46.5	%	29.5	%	7.9	%	6.1	%	3.6	%	2.1	%	1.0	%	0.3	%	0.1	%	0.2	%
Cumulative	46.5	%	76.0	%	83.9	%	90.0	%	93.6	%	95.7	%	96.7	%	97.0	%	97.1	%	97.3	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2016).



Specialty casualty
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2016
	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	1,036	$	957	$	892	$	852	$	828	$	821	$	818	$	794	$	802	$	803	$	40	62,676
2008			905		891		874		860		871		856		855		849		855		48		59,886
2009					864		867		845		826		816		811		812		807		58		53,097
2010							847		863		864		842		856		846		845		74		52,771
2011									831		831		819		828		814		808		89		50,635
2012											874		865		859		859		855		124		49,732
2013													938		921		915		910		159		49,239
2014															1,011		984		984		263		51,808
2015																	1,057		1,023		380		52,001
2016																			1,105		636		47,436
																	Total		$	8,995



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		% (a)
2007	$	166	$	357	$	477	$	563	$	623	$	664	$	692	$	708	$	724	$	733	91.3	%
2008			162		355		490		588		653		702		727		751		768		89.8	%
2009					160		366		494		575		636		673		698		713		88.4	%
2010							179		393		539		623		676		712		734		86.9	%
2011									165		369		506		595		643		674		83.4	%
2012											163		368		495		596		658		77.0	%
2013													171		377		530		638		70.1	%
2014															182		398		556		56.5	%
2015																	170		398		38.9	%
2016																			181		16.4	%
																	Total		$	6,053
									Unpaid losses and LAE — years 2007 through 2016										2,942
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																414
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	3,356



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	19.0	%	23.7	%	16.1	%	11.0	%	7.0	%	4.7	%	3.0	%	2.2	%	2.0	%	1.1	%
Cumulative	19.0	%	42.7	%	58.8	%	69.8	%	76.8	%	81.5	%	84.5	%	86.7	%	88.7	%	89.8	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2016).



Specialty financial
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2016
	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	170	$	165	$	159	$	149	$	145	$	144	$	142	$	141	$	140	$	136	$	1	21,643
2008			190		207		212		209		203		199		198		197		198		1		27,287
2009					193		193		187		184		188		186		187		186		1		27,438
2010							139		146		133		133		135		133		130		3		21,921
2011									140		158		157		155		148		146		14		16,364
2012											164		163		151		139		137		15		21,029
2013													141		145		137		131		15		28,220
2014															146		157		156		22		28,814
2015																	156		159		36		35,880
2016																			179		75		29,464
																	Total		$	1,558



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		% (a)
2007	$	82	$	114	$	126	$	133	$	134	$	135	$	135	$	135	$	136	$	135	99.3	%
2008			103		153		185		189		189		191		193		194		194		98.0	%
2009					112		145		157		166		171		182		185		186		100.0	%
2010							61		93		104		122		133		131		128		98.5	%
2011									59		113		116		124		131		132		90.4	%
2012											71		104		109		117		121		88.3	%
2013													70		100		107		114		87.0	%
2014															62		108		125		80.1	%
2015																	72		109		68.6	%
2016																			87		48.6	%
																	Total		$	1,331
									Unpaid losses and LAE — years 2007 through 2016										227
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																1
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	228



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	49.9	%	25.3	%	7.7	%	6.1	%	3.3	%	1.4	%	0.1	%	0.3	%	0.4	%	(0.7	%)
Cumulative	49.9	%	75.2	%	82.9	%	89.0	%	92.3	%	93.7	%	93.8	%	94.1	%	94.5	%	93.8	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2016).



Other specialty
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2016
	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims (a)
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	45	$	42	$	42	$	42	$	40	$	39	$	36	$	36	$	33	$	30	$	10	—
2008			49		49		49		49		48		46		45		45		44		4		—
2009					41		41		41		40		37		37		36		38		11		—
2010							36		39		40		39		40		40		40		4		—
2011									39		43		42		43		43		44		5		—
2012											42		40		39		40		41		10		—
2013													46		47		46		47		6		—
2014															58		57		59		21		—
2015																	59		60		27		—
2016																			61		44		—
																	Total		$	464



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		% (b)
2007	$	6	$	10	$	12	$	15	$	17	$	18	$	19	$	20	$	21	$	21	70.0	%
2008			10		16		23		31		35		37		37		37		38		86.4	%
2009					8		12		15		19		22		22		24		26		68.4	%
2010							8		14		21		24		27		33		35		87.5	%
2011									12		20		25		28		34		36		81.8	%
2012											8		17		21		25		28		68.3	%
2013													7		16		22		34		72.3	%
2014															13		21		30		50.8	%
2015																	10		26		43.3	%
2016																			9		14.8	%
																	Total		$	283
									Unpaid losses and LAE — years 2007 through 2016										181
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																59
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	240



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	19.9	%	16.9	%	12.1	%	12.6	%	8.7	%	5.5	%	3.4	%	2.9	%	2.8	%	—	%
Cumulative	19.9	%	36.8	%	48.9	%	61.5	%	70.2	%	75.7	%	79.1	%	82.0	%	84.8	%	84.8	%


(a)	The amounts shown in Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty property and casualty insurance sub-segments. Accordingly, the liability for incurred claims and allocated LAE represents additional reserves held on claims counted in the tables provided for the other sub-segments (above).


(b)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2016).



Total Specialty Group
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2016
	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	1,908	$	1,759	$	1,670	$	1,615	$	1,585	$	1,573	$	1,565	$	1,539	$	1,543	$	1,537	$	52	211,219
2008			2,067		2,018		1,987		1,971		1,978		1,955		1,953		1,947		1,951		56		244,346
2009					1,624		1,607		1,596		1,566		1,552		1,545		1,543		1,539		74		221,065
2010							1,724		1,710		1,705		1,690		1,710		1,698		1,698		91		215,306
2011									1,840		1,848		1,849		1,871		1,861		1,866		124		207,407
2012											1,970		1,952		1,946		1,947		1,955		176		217,345
2013													2,036		2,011		2,000		1,996		220		219,598
2014															2,083		2,050		2,040		373		217,836
2015																	2,112		2,044		549		222,288
2016																			2,105		1,005		186,087
																	Total		$	18,731



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		% (a)
2007	$	538	$	931	$	1,107	$	1,234	$	1,313	$	1,370	$	1,405	$	1,425	$	1,444	$	1,453	94.5	%
2008			627		1,230		1,459		1,607		1,701		1,765		1,803		1,828		1,847		94.7	%
2009					509		871		1,079		1,216		1,308		1,370		1,404		1,424		92.5	%
2010							576		1,005		1,220		1,387		1,485		1,536		1,562		92.0	%
2011									609		1,181		1,389		1,534		1,629		1,682		90.1	%
2012											824		1,214		1,418		1,579		1,675		85.7	%
2013													697		1,214		1,443		1,617		81.0	%
2014															594		1,173		1,422		69.7	%
2015																	619		1,127		55.1	%
2016																			573		27.2	%
																	Total		$	14,382
									Unpaid losses and LAE — years 2007 through 2016										4,349
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																495
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	4,844



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	33.0	%	26.1	%	11.8	%	8.5	%	5.3	%	3.4	%	2.0	%	1.3	%	1.1	%	0.6	%
Cumulative	33.0	%	59.1	%	70.9	%	79.4	%	84.7	%	88.1	%	90.1	%	91.4	%	92.5	%	93.1	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2016).

Short-duration insurance contracts, schedule of historical claims duration



Property and transportation
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2016
	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	657	$	595	$	577	$	572	$	572	$	569	$	569	$	568	$	568	$	568	$	1	126,900
2008			923		871		852		853		856		854		855		856		854		3		157,173
2009					526		506		523		516		511		511		508		508		4		140,530
2010							702		662		668		676		679		679		683		10		140,614
2011									830		816		831		845		856		868		16		140,408
2012											890		884		897		909		922		27		146,584
2013													911		898		902		908		40		142,139
2014															868		852		841		67		137,214
2015																	840		802		106		134,407
2016																			760		250		109,187
																	Total		$	7,714



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		% (a)
2007	$	284	$	450	$	492	$	523	$	539	$	553	$	559	$	562	$	563	$	564	99.3	%
2008			352		706		761		799		824		835		846		846		847		99.2	%
2009					229		348		413		456		479		493		497		499		98.2	%
2010							328		505		556		618		649		660		665		97.4	%
2011									373		679		742		787		821		840		96.8	%
2012											582		725		793		841		868		94.1	%
2013													449		721		784		831		91.5	%
2014															337		646		711		84.5	%
2015																	367		594		74.1	%
2016																			296		38.9	%
																	Total		$	6,715
									Unpaid losses and LAE — years 2007 through 2016										999
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																21
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	1,020



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	46.5	%	29.5	%	7.9	%	6.1	%	3.6	%	2.1	%	1.0	%	0.3	%	0.1	%	0.2	%
Cumulative	46.5	%	76.0	%	83.9	%	90.0	%	93.6	%	95.7	%	96.7	%	97.0	%	97.1	%	97.3	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2016).



Specialty casualty
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2016
	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	1,036	$	957	$	892	$	852	$	828	$	821	$	818	$	794	$	802	$	803	$	40	62,676
2008			905		891		874		860		871		856		855		849		855		48		59,886
2009					864		867		845		826		816		811		812		807		58		53,097
2010							847		863		864		842		856		846		845		74		52,771
2011									831		831		819		828		814		808		89		50,635
2012											874		865		859		859		855		124		49,732
2013													938		921		915		910		159		49,239
2014															1,011		984		984		263		51,808
2015																	1,057		1,023		380		52,001
2016																			1,105		636		47,436
																	Total		$	8,995



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		% (a)
2007	$	166	$	357	$	477	$	563	$	623	$	664	$	692	$	708	$	724	$	733	91.3	%
2008			162		355		490		588		653		702		727		751		768		89.8	%
2009					160		366		494		575		636		673		698		713		88.4	%
2010							179		393		539		623		676		712		734		86.9	%
2011									165		369		506		595		643		674		83.4	%
2012											163		368		495		596		658		77.0	%
2013													171		377		530		638		70.1	%
2014															182		398		556		56.5	%
2015																	170		398		38.9	%
2016																			181		16.4	%
																	Total		$	6,053
									Unpaid losses and LAE — years 2007 through 2016										2,942
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																414
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	3,356



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	19.0	%	23.7	%	16.1	%	11.0	%	7.0	%	4.7	%	3.0	%	2.2	%	2.0	%	1.1	%
Cumulative	19.0	%	42.7	%	58.8	%	69.8	%	76.8	%	81.5	%	84.5	%	86.7	%	88.7	%	89.8	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2016).



Specialty financial
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2016
	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	170	$	165	$	159	$	149	$	145	$	144	$	142	$	141	$	140	$	136	$	1	21,643
2008			190		207		212		209		203		199		198		197		198		1		27,287
2009					193		193		187		184		188		186		187		186		1		27,438
2010							139		146		133		133		135		133		130		3		21,921
2011									140		158		157		155		148		146		14		16,364
2012											164		163		151		139		137		15		21,029
2013													141		145		137		131		15		28,220
2014															146		157		156		22		28,814
2015																	156		159		36		35,880
2016																			179		75		29,464
																	Total		$	1,558



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		% (a)
2007	$	82	$	114	$	126	$	133	$	134	$	135	$	135	$	135	$	136	$	135	99.3	%
2008			103		153		185		189		189		191		193		194		194		98.0	%
2009					112		145		157		166		171		182		185		186		100.0	%
2010							61		93		104		122		133		131		128		98.5	%
2011									59		113		116		124		131		132		90.4	%
2012											71		104		109		117		121		88.3	%
2013													70		100		107		114		87.0	%
2014															62		108		125		80.1	%
2015																	72		109		68.6	%
2016																			87		48.6	%
																	Total		$	1,331
									Unpaid losses and LAE — years 2007 through 2016										227
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																1
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	228



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	49.9	%	25.3	%	7.7	%	6.1	%	3.3	%	1.4	%	0.1	%	0.3	%	0.4	%	(0.7	%)
Cumulative	49.9	%	75.2	%	82.9	%	89.0	%	92.3	%	93.7	%	93.8	%	94.1	%	94.5	%	93.8	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2016).



Other specialty
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2016
	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims (a)
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	45	$	42	$	42	$	42	$	40	$	39	$	36	$	36	$	33	$	30	$	10	—
2008			49		49		49		49		48		46		45		45		44		4		—
2009					41		41		41		40		37		37		36		38		11		—
2010							36		39		40		39		40		40		40		4		—
2011									39		43		42		43		43		44		5		—
2012											42		40		39		40		41		10		—
2013													46		47		46		47		6		—
2014															58		57		59		21		—
2015																	59		60		27		—
2016																			61		44		—
																	Total		$	464



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		% (b)
2007	$	6	$	10	$	12	$	15	$	17	$	18	$	19	$	20	$	21	$	21	70.0	%
2008			10		16		23		31		35		37		37		37		38		86.4	%
2009					8		12		15		19		22		22		24		26		68.4	%
2010							8		14		21		24		27		33		35		87.5	%
2011									12		20		25		28		34		36		81.8	%
2012											8		17		21		25		28		68.3	%
2013													7		16		22		34		72.3	%
2014															13		21		30		50.8	%
2015																	10		26		43.3	%
2016																			9		14.8	%
																	Total		$	283
									Unpaid losses and LAE — years 2007 through 2016										181
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																59
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	240



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	19.9	%	16.9	%	12.1	%	12.6	%	8.7	%	5.5	%	3.4	%	2.9	%	2.8	%	—	%
Cumulative	19.9	%	36.8	%	48.9	%	61.5	%	70.2	%	75.7	%	79.1	%	82.0	%	84.8	%	84.8	%


(a)	The amounts shown in Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty property and casualty insurance sub-segments. Accordingly, the liability for incurred claims and allocated LAE represents additional reserves held on claims counted in the tables provided for the other sub-segments (above).


(b)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2016).



Total Specialty Group
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2016
	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	1,908	$	1,759	$	1,670	$	1,615	$	1,585	$	1,573	$	1,565	$	1,539	$	1,543	$	1,537	$	52	211,219
2008			2,067		2,018		1,987		1,971		1,978		1,955		1,953		1,947		1,951		56		244,346
2009					1,624		1,607		1,596		1,566		1,552		1,545		1,543		1,539		74		221,065
2010							1,724		1,710		1,705		1,690		1,710		1,698		1,698		91		215,306
2011									1,840		1,848		1,849		1,871		1,861		1,866		124		207,407
2012											1,970		1,952		1,946		1,947		1,955		176		217,345
2013													2,036		2,011		2,000		1,996		220		219,598
2014															2,083		2,050		2,040		373		217,836
2015																	2,112		2,044		549		222,288
2016																			2,105		1,005		186,087
																	Total		$	18,731



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2007–2015 is Supplementary Information and Unaudited)
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		% (a)
2007	$	538	$	931	$	1,107	$	1,234	$	1,313	$	1,370	$	1,405	$	1,425	$	1,444	$	1,453	94.5	%
2008			627		1,230		1,459		1,607		1,701		1,765		1,803		1,828		1,847		94.7	%
2009					509		871		1,079		1,216		1,308		1,370		1,404		1,424		92.5	%
2010							576		1,005		1,220		1,387		1,485		1,536		1,562		92.0	%
2011									609		1,181		1,389		1,534		1,629		1,682		90.1	%
2012											824		1,214		1,418		1,579		1,675		85.7	%
2013													697		1,214		1,443		1,617		81.0	%
2014															594		1,173		1,422		69.7	%
2015																	619		1,127		55.1	%
2016																			573		27.2	%
																	Total		$	14,382
									Unpaid losses and LAE — years 2007 through 2016										4,349
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																495
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	4,844



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	33.0	%	26.1	%	11.8	%	8.5	%	5.3	%	3.4	%	2.0	%	1.3	%	1.1	%	0.6	%
Cumulative	33.0	%	59.1	%	70.9	%	79.4	%	84.7	%	88.1	%	90.1	%	91.4	%	92.5	%	93.1	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2016).

Statutory information

Net earnings and capital and surplus on a statutory basis for the insurance subsidiaries were as follows (in millions):



	Net Earnings						Capital and Surplus
	2016		2015		2014		2016		2015
Property and casualty companies	$	461	$	408	$	318	$	2,939	$	2,488
Life insurance companies	167		399		349		1,976		1,721

Reinsurance information

The following table shows (in millions) (i) amounts deducted from property and casualty written and earned premiums in connection with reinsurance ceded, (ii) written and earned premiums included in income for reinsurance assumed and (iii) reinsurance recoveries, which represent ceded losses and loss adjustment expenses.



	2016			2015			2014
Direct premiums written	$	5,858		$	5,713		$	5,387
Reinsurance assumed	123			119			90
Reinsurance ceded	(1,595		)	(1,505		)	(1,457		)
Net written premiums	$	4,386		$	4,327		$	4,020

Direct premiums earned	$	5,745		$	5,613		$	5,195
Reinsurance assumed	118			105			75
Reinsurance ceded	(1,535		)	(1,494		)	(1,392		)
Net earned premiums	$	4,328		$	4,224		$	3,878

Reinsurance recoveries	$	810		$	936		$	895

Schedule of reserve liabilities for annuity benefits accumulated

For certain products, the liability for “annuity benefits accumulated” includes reserves for excess benefits expected to be paid on future deaths and annuitizations (“EDAR”), guaranteed withdrawal benefits and accrued persistency and premium bonuses. The liabilities included in AFG’s Balance Sheet for these benefits, excluding the impact of unrealized gains on securities, were as follows at December 31 (in millions):



	2016		2015
Expected death and annuitization	$	223	$	214
Guaranteed withdrawal benefits	278		203
Accrued persistency and premium bonuses	6		11

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

+ References + Details