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Segments of Operations
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segments of Operations Segments of Operations
AFG manages its business as three segments: (i) Property and casualty insurance, (ii) Annuity and (iii) Other, which includes holding company assets and costs, revenues and costs of AFG’s limited insurance operations outside of property and casualty insurance and annuity segments, and operations attributable to the noncontrolling interests of the managed investment entities.

AFG reports its property and casualty insurance business in the following Specialty sub-segments: (i) Property and transportation, which includes physical damage and liability coverage for buses and trucks, inland and ocean marine, agricultural-related products and other commercial property coverages, (ii) Specialty casualty, which includes primarily excess and surplus, executive and professional liability, general liability, umbrella and excess liability, specialty coverages in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance, and (iii) Specialty financial, which includes risk management insurance programs for lending and leasing institutions (including equipment leasing and collateral and lender-placed mortgage property insurance), fidelity and surety products and trade credit insurance. Premiums and underwriting profit included under Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty sub-segments and amortization of deferred gains on retroactive reinsurance transactions related to the sales of businesses in prior years. AFG’s annuity business sells traditional fixed and indexed annuities in the retail, financial institutions, broker-dealer and registered investment advisor markets. AFG’s reportable segments and their components were determined based primarily upon similar economic characteristics, products and services.

As discussed in Note B — “Acquisitions and Sale of Businesses,” AFG initiated actions to exit the Lloyd’s of London insurance market, which included placing its Lloyd’s subsidiaries including its Lloyd’s Managing Agency, Neon Underwriting Ltd., into run-off in December 2019. Beginning with the first quarter of 2020, the results for AFG’s Specialty casualty sub-segment exclude the run-off operations of Neon (“Neon exited lines”). AFG completed the sale of Neon in December 2020.

Sales of property and casualty insurance outside of the United States represented 5% of AFG’s revenues in 2020 and 7% of AFG’s revenues in 2019 and 2018. Approximately one-half and two-thirds of these 2020 and 2019 sales, respectively, were through the Neon Lloyd’s of London business.
The following tables (in millions) show AFG’s assets, revenues and earnings before income taxes by segment and sub-segment.
202020192018
Assets
Property and casualty insurance (a)$19,689 $19,098 $17,681 
Annuity47,626 45,074 39,952 
Other6,251 5,958 5,823 
Total assets$73,566 $70,130 $63,456 
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation$1,871 $1,828 $1,729 
Specialty casualty2,235 2,597 2,403 
Specialty financial613 610 598 
Other specialty180 150 135 
Other lines (b)200 — — 
Total premiums earned5,099 5,185 4,865 
Net investment income (c)399 472 438 
Other income8 11 10 
Total property and casualty insurance5,506 5,668 5,313 
Annuity:
Net investment income1,699 1,792 1,638 
Other income131 120 125 
Total annuity1,830 1,912 1,763 
Other261 370 340 
Total revenues before realized gains (losses)7,597 7,950 7,416 
Realized gains (losses) on securities289 287 (266)
Realized gains on subsidiaries23 — — 
Total revenues$7,909 $8,237 $7,150 
(a)Not allocable to sub-segments.
(b)Represents premiums earned in the Neon exited lines during 2020. Neon’s $384 million and $306 million in earned premiums during 2019 and 2018, respectively, are included in the Specialty casualty sub-segment.
(c)Includes a loss of $5 million in the Neon exited lines in 2020 (primarily from the change in fair value of equity securities).
202020192018
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation$181 $79 $120 
Specialty casualty223 175 141 
Specialty financial50 92 66 
Other specialty(28)(21)(5)
Other lines (a)(202)(113)(20)
Total underwriting224 212 302 
Investment and other income, net (b)360 437 407 
Total property and casualty insurance584 649 709 
Annuity171 362 361 
Other (c)(219)(190)(165)
Total earnings before realized gains (losses) and income taxes536 821 905 
Realized gains (losses) on securities289 287 (266)
Realized gains on subsidiaries23 — — 
Total earnings before income taxes$848 $1,108 $639 
(a)Includes an underwriting loss of $135 million in 2020 in the Neon exited lines. Neon’s $36 million and $63 million underwriting losses in 2019 and 2018, respectively, are included in the Specialty casualty sub-segment. Also includes special charges to increase asbestos and environmental (“A&E”) reserves of $47 million in 2020 and $18 million in both 2019 and 2018, and a $76 million charge in 2019 related to the Neon exited lines.
(b)Includes $10 million in 2020 in net expenses from the Neon exited lines, before noncontrolling interest.
(c)Includes holding company interest and expenses, including losses on retirement of debt of $5 million in both 2020 and 2019, respectively, and special charges to increase A&E reserves related to AFG’s former railroad and manufacturing operations ($21 million in 2020, $11 million in 2019 and $9 million in 2018). Also includes the results of AFG’s run-off life and long-term care businesses, including a $4 million loss recognition charge recorded in the run-off long-term care business in 2020.