Segments of Operations (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

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

	Three months ended September 30,					Nine months ended September 30,
	2017			2016		2017			2016
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	527		$	493	$	1,226		$	1,197
Specialty casualty	568			497		1,613			1,496
Specialty financial	142			145		435			416
Other specialty	30			24		80			75
Total premiums earned	1,267			1,159		3,354			3,184
Net investment income	94			93		276			265
Other income (a)	1			3		21			46
Total property and casualty insurance	1,362			1,255		3,651			3,495
Annuity:
Net investment income	375			351		1,082			1,010
Other income	26			26		79			76
Total annuity	401			377		1,161			1,086
Run-off long-term care and life	12			13		35			37
Other	72			58		211			173
Total revenues before realized gains (losses)	1,847			1,703		5,058			4,791
Realized gains (losses) on securities	(12		)	2		(1		)	(32		)
Realized gains on subsidiaries	—			—		—			2
Total revenues	$	1,835		$	1,705	$	5,057		$	4,761

Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	6		$	44		$	70		$	91
Specialty casualty	2			13			46			65
Specialty financial	(3		)	19			42			64
Other specialty	4			2			3			7
Other lines (b)	(90		)	(36		)	(92		)	(101		)
Total underwriting	(81		)	42			69			126
Investment and other income, net (a)	87			79			271			269
Total property and casualty insurance	6			121			340			395
Annuity	102			107			283			236
Run-off long-term care and life	2			1			4			—
Other (c)	(69		)	(53		)	(169		)	(131		)
Total earnings before realized gains (losses) and income taxes	41			176			458			500
Realized gains (losses) on securities	(12		)	2			(1		)	(32		)
Realized gains on subsidiaries	—			—			—			2
Total earnings before income taxes	$	29		$	178		$	457		$	470

(a) Includes pretax income of $13 million (before noncontrolling interest) from the sale of a hotel in the first quarter of 2017 and pretax income of $32 million (before noncontrolling interest) from the sale of an apartment property in the second quarter of 2016.

(b) Includes special charges of $89 million and $36 million in the third quarter of 2017 and 2016, respectively, to increase asbestos and environmental (“A&E”) reserves and a $65 million special charge related to the exit of certain lines of business with AFG’s Lloyd’s-based insurer, Neon, in the second quarter of 2016.

(c) Includes holding company interest and expenses, including losses on retirement of debt of $4 million in the third quarter of 2017 and $7 million in the second quarter of 2017, and special charges of $24 million and $5 million in the third quarter of 2017 and 2016, respectively, to increase A&E reserves related to AFG’s former railroad and manufacturing operations.