Leases Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lease liability and right-of-use asset

AFG’s operating lease right-of-use asset (net of deferred rent and lease incentives) and operating lease liability are included in other assets and other liabilities, respectively, in AFG’s Balance Sheet at December 31 and are presented in the following table (in millions):

	2020		2019
Right-of-use asset (*)	$	139	$	158
Lease liability	159		180

(*)Net of deferred rent and lease incentives of $20 million at December 31, 2020 and $22 million at December 31, 2019.

Lease activity

The following table details AFG’s lease activity for the years ended December 31, 2020 and December 31, 2019 (in millions):

	2020		2019
Lease expense:
Operating leases	$	47	$	46
Short-term leases	—		1
Total lease expense	$	47	$	47

Other operating lease liability information

Other operating lease information for the years ended December 31, 2020 and December 31, 2019 (in millions):

	2020		2019
Cash paid for lease liabilities reported in operating cash flows	$	50	$	49
Right-of-use assets obtained under new leases	25		19

Undiscounted contractual maturities of operating lease liabilities

The following table presents the undiscounted contractual maturities of AFG’s operating lease liability at December 31, 2020 (in millions):

Operating lease payments:
2021	$	43
2022	35
2023	29
2024	23
2025	20
Thereafter	28
Total lease payments	178
Impact of discounting	(19)
Operating lease liability	$	159

Schedule of weighted-average remaining lease term and weighted-average discount rate

Weighted-average remaining lease term	5.4 years
Weighted-average discount rate	3.9	%