Derivatives (Tables)

9 Months Ended

Sep. 30, 2017

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):

		September 30, 2017				December 31, 2016
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	111	$	—	$	107	$	—
Public company warrants	Equity securities	3		—		4		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		2,293		—		1,759
Equity index call options	Equity index call options	629		—		492		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		10		—		8
		$	743	$	2,303	$	603	$	1,767

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 the third quarter and first nine months of 2017 and 2016 (in millions):

		Three months ended September 30,						Nine months ended September 30,
Derivative	Statement of Earnings Line	2017			2016			2017			2016
MBS with embedded derivatives	Realized gains on securities	$	—		$	(4	)	$	(3	)	$	—
Public company warrants	Realized gains on securities	(1		)	1			(1		)	—
Fixed-indexed annuities (embedded derivative)	Annuity benefits	(127		)	(109		)	(386		)	(188		)
Equity index call options	Annuity benefits	116			105			338			81
Reinsurance contracts (embedded derivative)	Net investment income	—			—			(2		)	(6		)
		$	(12	)	$	(7	)	$	(54	)	$	(113	)