Insurance (Tables)

12 Months Ended

Dec. 31, 2019

Insurance [Abstract]

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):

	2019			2018			2017
Balance at beginning of period	$	9,741		$	9,678		$	8,563
Less reinsurance recoverables, net of allowance	2,942			2,957			2,302
Net liability at beginning of period	6,799			6,721			6,261
Provision for losses and LAE occurring in the current year	3,414			3,195			3,019
Net increase (decrease) in the provision for claims of prior years:
Special A&E charges	18			18			89
Neon exited lines charge	7			—			(18		)
Other	(168		)	(210		)	(135		)
Total losses and LAE incurred	3,271			3,003			2,955
Payments for losses and LAE of:
Current year	(1,076		)	(963		)	(942		)
Prior years	(1,790		)	(1,639		)	(1,586		)
Total payments	(2,866		)	(2,602		)	(2,528		)
Reserves of businesses disposed (*)	—			(319		)	—
Foreign currency translation and other	4			(4		)	33
Net liability at end of period	7,208			6,799			6,721
Add back reinsurance recoverables, net of allowance	3,024			2,942			2,957
Gross unpaid losses and LAE included in the balance sheet	$	10,232		$	9,741		$	9,678

(*)

Reflects the reinsurance to close transactions at Neon (discussed below).

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):

	2019
Unpaid losses and allocated LAE, net of reinsurance:
Specialty
Property and transportation	$	1,171
Specialty casualty	4,056
Specialty financial	221
Other specialty	313
Total Specialty (excluding foreign reserves)	5,761
Other reserves
Reserves for foreign operations:
Neon Lloyd’s business	357
Other subsidiaries	289
A&E reserves	383
Unallocated LAE	361
Other	57
Total other reserves	1,447
Total reserves, net of reinsurance	7,208
Add back reinsurance recoverables, net of allowance	3,024
Gross unpaid losses and LAE included in the balance sheet	$	10,232

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, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	679	$	639	$	645	$	652	$	655	$	655	$	660	$	657	$	655	$	655	$	3	138,105
2011			811		799		813		827		837		850		846		844		843		5		138,309
2012					864		857		871		883		894		890		886		881		8		143,122
2013							882		870		872		878		878		877		873		10		138,864
2014									844		828		817		820		815		808		15		132,971
2015											818		784		779		777		777		23		134,618
2016													746		716		714		706		46		120,884
2017															889		847		843		80		140,067
2018																	932		902		119		128,428
2019																			1,111		288		138,508
																	Total		$	8,399

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	316	$	486	$	535	$	596	$	626	$	637	$	642	$	647	$	649	$	650	99.2	%
2011			365		667		727		771		803		821		829		833		834		98.9	%
2012					572		708		772		816		842		856		882		869		98.6	%
2013							438		702		760		804		831		847		858		98.3	%
2014									329		632		693		744		770		783		96.9	%
2015											359		582		667		707		736		94.7	%
2016													294		521		577		618		87.5	%
2017															379		640		696		82.6	%
2018																	396		676		74.9	%
2019																			527		47.4	%
																	Total		$	7,247
							Unpaid losses and LAE — years 2010 through 2019												1,152
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																19
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	1,171

	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	47.1	%	29.8	%	7.7	%	6.0	%	3.6	%	1.8	%	1.5	%	(0.1	%)	0.2	%	0.2	%
Cumulative	47.1	%	76.9	%	84.6	%	90.6	%	94.2	%	96.0	%	97.5	%	97.4	%	97.6	%	97.8	%

(a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).

Specialty casualty
(Dollars in Millions)
	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	871	$	887	$	888	$	867	$	880	$	870	$	868	$	866	$	855	$	846	$	28	56,716
2011			852		849		839		848		834		828		826		817		810		37		54,755
2012					901		892		885		885		883		877		849		842		53		54,682
2013							968		949		945		940		945		926		916		77		54,929
2014									1,035		1,008		1,008		1,006		982		967		98		56,445
2015											1,081		1,043		1,041		1,042		1,024		126		57,427
2016													1,131		1,122		1,116		1,101		236		56,000
2017															1,211		1,221		1,204		372		56,073
2018																	1,277		1,307		548		57,081
2019																			1,308		773		51,198
																	Total		$	10,325

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	191	$	412	$	560	$	645	$	700	$	736	$	757	$	771	$	783	$	798	94.3	%
2011			174		383		522		612		662		694		714		731		745		92.0	%
2012					173		385		516		621		684		723		745		761		90.4	%
2013							182		396		554		666		729		766		797		87.0	%
2014									190		412		574		680		755		801		82.8	%
2015											178		411		577		702		792		77.3	%
2016													186		418		584		713		64.8	%
2017															200		422		612		50.8	%
2018																	210		475		36.3	%
2019																			212		16.2	%
																	Total		$	6,706
							Unpaid losses and LAE — years 2010 through 2019												3,619
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																437
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	4,056

	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	18.7	%	22.9	%	16.4	%	11.5	%	7.3	%	4.3	%	2.7	%	1.9	%	1.6	%	1.8	%
Cumulative	18.7	%	41.6	%	58.0	%	69.5	%	76.8	%	81.1	%	83.8	%	85.7	%	87.3	%	89.1	%

(a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).

Specialty financial
(Dollars in Millions)
	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	138	$	145	$	132	$	132	$	135	$	133	$	130	$	127	$	126	$	126	$	1	21,925
2011			138		157		155		153		147		144		143		139		137		—		16,369
2012					163		163		151		139		137		135		132		127		1		21,076
2013							140		145		137		131		127		126		122		4		28,460
2014									146		157		156		153		147		142		5		29,436
2015											156		160		158		153		145		10		37,562
2016													179		184		187		182		18		45,054
2017															212		215		212		27		48,421
2018																	212		217		30		46,198
2019																			194		77		35,369
																	Total		$	1,604

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019			% (a)
2010	$	61	$	93	$	104	$	122	$	132	$	130	$	128	$	126	$	126	$	126		100.0	%
2011			58		111		115		123		130		131		131		132		132			96.4	%
2012					71		104		109		117		121		126		128		126			99.2	%
2013							70		100		107		113		117		117		118			96.7	%
2014									62		109		125		128		137		139			97.9	%
2015											72		110		129		133		132			91.0	%
2016													88		141		158		161			88.5	%
2017															120		169		186			87.7	%
2018																	112		163			75.1	%
2019																			99			51.0	%
																	Total		$	1,382
							Unpaid losses and LAE — years 2010 through 2019												222
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																(1		)
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	221

	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	50.5	%	27.7	%	7.9	%	5.4	%	4.2	%	0.9	%	0.2	%	(0.8	%)	—	%	—	%
Cumulative	50.5	%	78.2	%	86.1	%	91.5	%	95.7	%	96.6	%	96.8	%	96.0	%	96.0	%	96.0	%

(a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).

Other specialty
(Dollars in Millions)
	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims (a)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	36	$	39	$	40	$	39	$	40	$	40	$	40	$	40	$	40	$	39	$	1	—
2011			39		43		42		43		43		44		44		43		42		1		—
2012					42		40		39		40		41		39		39		36		2		—
2013							46		47		46		47		50		53		58		3		—
2014									58		57		59		59		60		61		6		—
2015											59		60		63		66		76		3		—
2016													61		61		65		71		15		—
2017															63		65		70		23		—
2018																	86		90		53		—
2019																			108		87		—
																	Total		$	651

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (b)
2010	$	8	$	14	$	21	$	24	$	27	$	33	$	35	$	36	$	37	$	37	94.9	%
2011			12		20		25		28		34		36		37		38		39		92.9	%
2012					8		17		21		25		28		30		30		32		88.9	%
2013							7		16		22		34		37		44		51		87.9	%
2014									13		21		30		36		43		50		82.0	%
2015											10		26		31		50		62		81.6	%
2016													9		19		31		47		66.2	%
2017															10		19		30		42.9	%
2018																	12		23		25.6	%
2019																			9		8.3	%
																	Total		$	380
							Unpaid losses and LAE — years 2010 through 2019												271
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																42
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	313

	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	16.6	%	16.5	%	13.2	%	14.9	%	10.5	%	9.8	%	4.9	%	3.5	%	2.5	%	—	%
Cumulative	16.6	%	33.1	%	46.3	%	61.2	%	71.7	%	81.5	%	86.4	%	89.9	%	92.4	%	92.4	%

(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, 2019).

Total Specialty Group
(Dollars in Millions)
	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	1,724	$	1,710	$	1,705	$	1,690	$	1,710	$	1,698	$	1,698	$	1,690	$	1,676	$	1,666	$	33	216,746
2011			1,840		1,848		1,849		1,871		1,861		1,866		1,859		1,843		1,832		43		209,433
2012					1,970		1,952		1,946		1,947		1,955		1,941		1,906		1,886		64		218,880
2013							2,036		2,011		2,000		1,996		2,000		1,982		1,969		94		222,253
2014									2,083		2,050		2,040		2,038		2,004		1,978		124		218,852
2015											2,114		2,047		2,041		2,038		2,022		162		229,607
2016													2,117		2,083		2,082		2,060		315		221,938
2017															2,375		2,348		2,329		502		244,561
2018																	2,507		2,516		750		231,707
2019																			2,721		1,225		225,075
																	Total		$	20,979

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	576	$	1,005	$	1,220	$	1,387	$	1,485	$	1,536	$	1,562	$	1,580	$	1,595	$	1,611	96.7	%
2011			609		1,181		1,389		1,534		1,629		1,682		1,711		1,734		1,750		95.5	%
2012					824		1,214		1,418		1,579		1,675		1,735		1,785		1,788		94.8	%
2013							697		1,214		1,443		1,617		1,714		1,774		1,824		92.6	%
2014									594		1,174		1,422		1,588		1,705		1,773		89.6	%
2015											619		1,129		1,404		1,592		1,722		85.2	%
2016													577		1,099		1,350		1,539		74.7	%
2017															709		1,250		1,524		65.4	%
2018																	730		1,337		53.1	%
2019																			847		31.1	%
																	Total		$	15,715
							Unpaid losses and LAE — years 2010 through 2019												5,264
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																497
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	5,761

	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	32.6	%	25.7	%	12.1	%	8.9	%	5.6	%	3.1	%	2.1	%	0.8	%	0.9	%	1.0	%
Cumulative	32.6	%	58.3	%	70.4	%	79.3	%	84.9	%	88.0	%	90.1	%	90.9	%	91.8	%	92.8	%

(a)

Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).

Short-duration insurance contracts, schedule of historical claims duration

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, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	679	$	639	$	645	$	652	$	655	$	655	$	660	$	657	$	655	$	655	$	3	138,105
2011			811		799		813		827		837		850		846		844		843		5		138,309
2012					864		857		871		883		894		890		886		881		8		143,122
2013							882		870		872		878		878		877		873		10		138,864
2014									844		828		817		820		815		808		15		132,971
2015											818		784		779		777		777		23		134,618
2016													746		716		714		706		46		120,884
2017															889		847		843		80		140,067
2018																	932		902		119		128,428
2019																			1,111		288		138,508
																	Total		$	8,399

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	316	$	486	$	535	$	596	$	626	$	637	$	642	$	647	$	649	$	650	99.2	%
2011			365		667		727		771		803		821		829		833		834		98.9	%
2012					572		708		772		816		842		856		882		869		98.6	%
2013							438		702		760		804		831		847		858		98.3	%
2014									329		632		693		744		770		783		96.9	%
2015											359		582		667		707		736		94.7	%
2016													294		521		577		618		87.5	%
2017															379		640		696		82.6	%
2018																	396		676		74.9	%
2019																			527		47.4	%
																	Total		$	7,247
							Unpaid losses and LAE — years 2010 through 2019												1,152
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																19
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	1,171

	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	47.1	%	29.8	%	7.7	%	6.0	%	3.6	%	1.8	%	1.5	%	(0.1	%)	0.2	%	0.2	%
Cumulative	47.1	%	76.9	%	84.6	%	90.6	%	94.2	%	96.0	%	97.5	%	97.4	%	97.6	%	97.8	%

(a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).

Specialty casualty
(Dollars in Millions)
	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	871	$	887	$	888	$	867	$	880	$	870	$	868	$	866	$	855	$	846	$	28	56,716
2011			852		849		839		848		834		828		826		817		810		37		54,755
2012					901		892		885		885		883		877		849		842		53		54,682
2013							968		949		945		940		945		926		916		77		54,929
2014									1,035		1,008		1,008		1,006		982		967		98		56,445
2015											1,081		1,043		1,041		1,042		1,024		126		57,427
2016													1,131		1,122		1,116		1,101		236		56,000
2017															1,211		1,221		1,204		372		56,073
2018																	1,277		1,307		548		57,081
2019																			1,308		773		51,198
																	Total		$	10,325

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	191	$	412	$	560	$	645	$	700	$	736	$	757	$	771	$	783	$	798	94.3	%
2011			174		383		522		612		662		694		714		731		745		92.0	%
2012					173		385		516		621		684		723		745		761		90.4	%
2013							182		396		554		666		729		766		797		87.0	%
2014									190		412		574		680		755		801		82.8	%
2015											178		411		577		702		792		77.3	%
2016													186		418		584		713		64.8	%
2017															200		422		612		50.8	%
2018																	210		475		36.3	%
2019																			212		16.2	%
																	Total		$	6,706
							Unpaid losses and LAE — years 2010 through 2019												3,619
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																437
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	4,056

	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	18.7	%	22.9	%	16.4	%	11.5	%	7.3	%	4.3	%	2.7	%	1.9	%	1.6	%	1.8	%
Cumulative	18.7	%	41.6	%	58.0	%	69.5	%	76.8	%	81.1	%	83.8	%	85.7	%	87.3	%	89.1	%

(a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).

Specialty financial
(Dollars in Millions)
	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	138	$	145	$	132	$	132	$	135	$	133	$	130	$	127	$	126	$	126	$	1	21,925
2011			138		157		155		153		147		144		143		139		137		—		16,369
2012					163		163		151		139		137		135		132		127		1		21,076
2013							140		145		137		131		127		126		122		4		28,460
2014									146		157		156		153		147		142		5		29,436
2015											156		160		158		153		145		10		37,562
2016													179		184		187		182		18		45,054
2017															212		215		212		27		48,421
2018																	212		217		30		46,198
2019																			194		77		35,369
																	Total		$	1,604

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019			% (a)
2010	$	61	$	93	$	104	$	122	$	132	$	130	$	128	$	126	$	126	$	126		100.0	%
2011			58		111		115		123		130		131		131		132		132			96.4	%
2012					71		104		109		117		121		126		128		126			99.2	%
2013							70		100		107		113		117		117		118			96.7	%
2014									62		109		125		128		137		139			97.9	%
2015											72		110		129		133		132			91.0	%
2016													88		141		158		161			88.5	%
2017															120		169		186			87.7	%
2018																	112		163			75.1	%
2019																			99			51.0	%
																	Total		$	1,382
							Unpaid losses and LAE — years 2010 through 2019												222
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																(1		)
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	221

	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	50.5	%	27.7	%	7.9	%	5.4	%	4.2	%	0.9	%	0.2	%	(0.8	%)	—	%	—	%
Cumulative	50.5	%	78.2	%	86.1	%	91.5	%	95.7	%	96.6	%	96.8	%	96.0	%	96.0	%	96.0	%

(a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).

Other specialty
(Dollars in Millions)
	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims (a)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	36	$	39	$	40	$	39	$	40	$	40	$	40	$	40	$	40	$	39	$	1	—
2011			39		43		42		43		43		44		44		43		42		1		—
2012					42		40		39		40		41		39		39		36		2		—
2013							46		47		46		47		50		53		58		3		—
2014									58		57		59		59		60		61		6		—
2015											59		60		63		66		76		3		—
2016													61		61		65		71		15		—
2017															63		65		70		23		—
2018																	86		90		53		—
2019																			108		87		—
																	Total		$	651

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (b)
2010	$	8	$	14	$	21	$	24	$	27	$	33	$	35	$	36	$	37	$	37	94.9	%
2011			12		20		25		28		34		36		37		38		39		92.9	%
2012					8		17		21		25		28		30		30		32		88.9	%
2013							7		16		22		34		37		44		51		87.9	%
2014									13		21		30		36		43		50		82.0	%
2015											10		26		31		50		62		81.6	%
2016													9		19		31		47		66.2	%
2017															10		19		30		42.9	%
2018																	12		23		25.6	%
2019																			9		8.3	%
																	Total		$	380
							Unpaid losses and LAE — years 2010 through 2019												271
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																42
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	313

	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	16.6	%	16.5	%	13.2	%	14.9	%	10.5	%	9.8	%	4.9	%	3.5	%	2.5	%	—	%
Cumulative	16.6	%	33.1	%	46.3	%	61.2	%	71.7	%	81.5	%	86.4	%	89.9	%	92.4	%	92.4	%

(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, 2019).

Total Specialty Group
(Dollars in Millions)
	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	1,724	$	1,710	$	1,705	$	1,690	$	1,710	$	1,698	$	1,698	$	1,690	$	1,676	$	1,666	$	33	216,746
2011			1,840		1,848		1,849		1,871		1,861		1,866		1,859		1,843		1,832		43		209,433
2012					1,970		1,952		1,946		1,947		1,955		1,941		1,906		1,886		64		218,880
2013							2,036		2,011		2,000		1,996		2,000		1,982		1,969		94		222,253
2014									2,083		2,050		2,040		2,038		2,004		1,978		124		218,852
2015											2,114		2,047		2,041		2,038		2,022		162		229,607
2016													2,117		2,083		2,082		2,060		315		221,938
2017															2,375		2,348		2,329		502		244,561
2018																	2,507		2,516		750		231,707
2019																			2,721		1,225		225,075
																	Total		$	20,979

	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	576	$	1,005	$	1,220	$	1,387	$	1,485	$	1,536	$	1,562	$	1,580	$	1,595	$	1,611	96.7	%
2011			609		1,181		1,389		1,534		1,629		1,682		1,711		1,734		1,750		95.5	%
2012					824		1,214		1,418		1,579		1,675		1,735		1,785		1,788		94.8	%
2013							697		1,214		1,443		1,617		1,714		1,774		1,824		92.6	%
2014									594		1,174		1,422		1,588		1,705		1,773		89.6	%
2015											619		1,129		1,404		1,592		1,722		85.2	%
2016													577		1,099		1,350		1,539		74.7	%
2017															709		1,250		1,524		65.4	%
2018																	730		1,337		53.1	%
2019																			847		31.1	%
																	Total		$	15,715
							Unpaid losses and LAE — years 2010 through 2019												5,264
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																497
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	5,761

	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	32.6	%	25.7	%	12.1	%	8.9	%	5.6	%	3.1	%	2.1	%	0.8	%	0.9	%	1.0	%
Cumulative	32.6	%	58.3	%	70.4	%	79.3	%	84.9	%	88.0	%	90.1	%	90.9	%	91.8	%	92.8	%

(a)

Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).

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
	2019		2018		2017		2019		2018
Property and casualty companies	$	584	$	546	$	484	$	3,342	$	2,867
Life (annuity) insurance companies	34		802		286		2,868		2,701

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.

	2019			2018			2017
Direct premiums written	$	7,044		$	6,626		$	6,310
Reinsurance assumed	255			214			192
Reinsurance ceded	(1,957		)	(1,817		)	(1,751		)
Net written premiums	$	5,342		$	5,023		$	4,751
Direct premiums earned	$	6,848		$	6,472		$	6,112
Reinsurance assumed	226			204			157
Reinsurance ceded	(1,889		)	(1,811		)	(1,690		)
Net earned premiums	$	5,185		$	4,865		$	4,579
Reinsurance recoveries	$	1,404		$	1,249		$	1,379

Schedule of reserve liabilities for annuity benefits accumulated

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):

	2019		2018
Expected death and annuitization	$	232	$	229
Guaranteed withdrawal benefits	625		472
Accrued persistency and premium bonuses	1		1