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Shareholders' Equity
 6 Months Ended
Jun. 30, 2020
Stockholders' Equity Note [Abstract]  
Shareholders' Equity Shareholders’ Equity
AFG is authorized to issue 12.5 million shares of Voting Preferred Stock and 12.5 million shares of Nonvoting Preferred Stock, each without par value.

Accumulated Other Comprehensive Income, Net of Tax (“AOCI”)   Comprehensive income is defined as all changes in shareholders’ equity except those arising from transactions with shareholders. Comprehensive income includes net earnings and other comprehensive income, which consists primarily of changes in net unrealized gains or losses on available for sale securities.
The progression of the components of accumulated other comprehensive income follows (in millions):
Other Comprehensive Income (Loss)
AOCI
Beginning
Balance		PretaxTaxNet
of
tax		Attributable to
noncontrolling
interests 		Attributable to
shareholders 		AOCI
Ending
Balance
Quarter ended June 30, 2020
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period
$1,293  $(272) $1,021  $—  $1,021  
Reclassification adjustment for realized (gains) losses included in net earnings (*)
(9) 2  (7) —  (7) 
Total net unrealized gains (losses) on securities
$16  1,284  (270) 1,014  —  1,014  $1,030  
Net unrealized gains on cash flow hedges44  4  (1) 3  —  3  47  
Foreign currency translation adjustments(21) 4  —  4  —  4  (17) 
Pension and other postretirement plans adjustments(7) —  —  —  —  —  (7) 
Total
$32  $1,292  $(271) $1,021  $—  $1,021  $1,053  
Quarter ended June 30, 2019
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period
$450  $(94) $356  $—  $356  
Reclassification adjustment for realized (gains) losses included in net earnings (*)
(10) 2  (8) —  (8) 
Total net unrealized gains on securities
$464  440  (92) 348  —  348  $812  
Net unrealized gains on cash flow hedges—  23  (5) 18  —  18  18  
Foreign currency translation adjustments(12) (1) 1  —  (1) (1) (13) 
Pension and other postretirement plans adjustments(8) —  —  —  —  —  (8) 
Total
$444  $462  $(96) $366  $(1) $365  $809  
Six months ended June 30, 2020
Net unrealized gains (losses) on securities:
Unrealized holding gains on securities arising during the period
$198  $(42) $156  $—  $156  
Reclassification adjustment for realized (gains) losses included in net earnings (*)
15  (3) 12  —  12  
Total net unrealized gains (losses) on securities
$862  213  (45) 168  —  168  $1,030  
Net unrealized gains on cash flow hedges
17  38  (8) 30  —  30  47  
Foreign currency translation adjustments
(9) (6) —  (6) (2) (8) (17) 
Pension and other postretirement plans adjustments
(7) —  —  —  —  —  (7) 
Total
$863  $245  $(53) $192  $(2) $190  $1,053  
Six months ended June 30, 2019
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period
$937  $(197) $740  $—  $740  
Reclassification adjustment for realized (gains) losses included in net earnings (*)
(14) 3  (11) —  (11) 
Total net unrealized gains on securities
$83  923  (194) 729  —  729  $812  
Net unrealized gains (losses) on cash flow hedges
(11) 37  (8) 29  —  29  18  
Foreign currency translation adjustments
(16) 3  1  4  (1) 3  (13) 
Pension and other postretirement plans adjustments
(8) —  —  —  —  —  (8) 
Total
$48  $963  $(201) $762  $(1) $761  $809  
(*)The reclassification adjustment out of net unrealized gains (losses) on securities affected the following lines in AFG’s Statement of Earnings:
OCI componentAffected line in the statement of earnings
PretaxRealized gains (losses) on securities
TaxProvision (credit) for income taxes
Stock Incentive Plans   Under AFG’s stock incentive plans, employees of AFG and its subsidiaries are eligible to receive equity awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units and stock awards. In the first six months of 2020, AFG issued 227,867 shares of restricted Common Stock (fair value of $104.15 per share) under the Stock Incentive Plan.

Total compensation expense related to stock incentive plans of AFG and its subsidiaries was $4 million and $6 million in the second quarters of 2020 and 2019, respectively, and $9 million and $12 million in the first six months of 2020 and 2019, respectively.