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Investments (Tables)
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Available for sale fixed maturities
Available for sale fixed maturities at March 31, 2023 and December 31, 2022, consisted of the following (in millions):
Amortized
Cost		Allowance for Expected Credit LossesGross UnrealizedNet
Unrealized		Fair
Value
GainsLosses
March 31, 2023
Fixed maturities:
U.S. government and government agencies$236 $— $— $(11)$(11)$225 
States, municipalities and political subdivisions
1,024 — 4 (35)(31)993 
Foreign government
238 — — (12)(12)226 
Residential MBS
1,743 2 23 (175)(152)1,589 
Commercial MBS
80 — — (2)(2)78 
Collateralized loan obligations
1,950 1 3 (53)(50)1,899 
Other asset-backed securities
2,395 8 2 (148)(146)2,241 
Corporate and other
2,917 5 22 (141)(119)2,793 
Total fixed maturities$10,583 $16 $54 $(577)$(523)$10,044 
December 31, 2022
Fixed maturities:
U.S. government and government agencies$233 $— $— $(14)$(14)$219 
States, municipalities and political subdivisions
1,234 — 3 (51)(48)1,186 
Foreign government
240 — — (14)(14)226 
Residential MBS
1,757 2 23 (180)(157)1,598 
Commercial MBS
88 — — (3)(3)85 
Collateralized loan obligations
1,988 1 1 (67)(66)1,921 
Other asset-backed securities
2,435 7 1 (184)(183)2,245 
Corporate and other
2,761 1 11 (156)(145)2,615 
Total fixed maturities$10,736 $11 $39 $(669)$(630)$10,095 
Equity securities reported at fair value
Equity securities which are reported at fair value with holding gains and losses recognized in net earnings, consisted of the following at March 31, 2023 and December 31, 2022 (in millions):
March 31, 2023December 31, 2022
Actual CostFair ValueActual CostFair Value
Fair Valueover (under) CostFair Valueover (under) Cost
Common stocks$595 $579 $(16)$556 $553 $(3)
Perpetual preferred stocks434 429 (5)436 457 21 
Total equity securities carried at fair value
$1,029 $1,008 $(21)$992 $1,010 $18 
Investments accounted for using the equity method
The following table shows the carrying value and net investment income from investments accounted for using the equity method (in millions):
Net Investment Income
Carrying ValueThree months ended March 31,
March 31, 2023December 31, 202220232022
Real estate-related investments (*)$1,297 $1,229 $47 $100 
Private equity401 438 8 33 
Private debt35 33 2 — 
Total investments accounted for using the equity method$1,733 $1,700 $57 $133 
(*)92% of the carrying value relates to underlying investments in multi-family properties at both March 31, 2023 and December 31, 2022.
Available for sale securities in a continuous unrealized loss position
The following table shows gross unrealized losses (dollars in millions) on available for sale fixed maturities by investment category and length of time that individual securities have been in a continuous unrealized loss position at the following balance sheet dates.
Less Than Twelve MonthsTwelve Months or More
Unrealized
Loss		Fair
Value		Fair Value as
% of Cost		Unrealized
Loss		Fair
Value		Fair Value as
% of Cost
March 31, 2023
Fixed maturities:
U.S. government and government agencies$(1)$43 98 %$(10)$173 95 %
States, municipalities and political subdivisions
(17)468 96 %(18)240 93 %
Foreign government(2)14 88 %(10)209 95 %
Residential MBS(18)397 96 %(157)939 86 %
Commercial MBS— 20 100 %(2)49 96 %
Collateralized loan obligations(12)697 98 %(41)908 96 %
Other asset-backed securities(17)600 97 %(131)1,457 92 %
Corporate and other(39)945 96 %(102)933 90 %
Total fixed maturities$(106)$3,184 97 %$(471)$4,908 91 %
December 31, 2022
Fixed maturities:
U.S. government and government agencies$(4)$111 97 %$(10)$107 91 %
States, municipalities and political subdivisions
(50)967 95 %(1)15 94 %
Foreign government(5)90 95 %(9)134 94 %
Residential MBS(115)1,078 90 %(65)315 83 %
Commercial MBS(2)44 96 %(1)33 97 %
Collateralized loan obligations(44)1,224 97 %(23)587 96 %
Other asset-backed securities(100)1,361 93 %(84)740 90 %
Corporate and other(105)1,665 94 %(51)413 89 %
Total fixed maturities$(425)$6,540 94 %$(244)$2,344 91 %
Roll forward of allowance for credit losses on fixed maturity securities A progression of the allowance for expected credit losses on fixed maturity securities is shown below (in millions):
Structured
Securities (*)		Corporate and OtherTotal
Balance at January 1, 2023$10 $1 $11 
Provision for expected credit losses on securities with no previous allowance1 5 6 
Additions (reductions) to previously recognized expected credit losses— (1)(1)
Reductions due to sales or redemptions— — — 
Balance at March 31, 2023$11 $5 $16 
Balance at January 1, 2022$8 $1 $9 
Provision for expected credit losses on securities with no previous allowance— — — 
Additions (reductions) to previously recognized expected credit losses(2)— (2)
Reductions due to sales or redemptions— — — 
Balance at March 31, 2022$6 $1 $7 
(*)Includes mortgage-backed securities, collateralized loan obligations and other asset-backed securities.
Available for sale fixed maturity securities by contractual maturity date
The table below sets forth the scheduled maturities of AFG’s available for sale fixed maturities as of March 31, 2023 (dollars in millions). Securities with sinking funds are reported at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers.
AmortizedFair Value
Cost, net (*)Amount%
Maturity
One year or less$350 $345 3 %
After one year through five years2,633 2,514 25 %
After five years through ten years1,043 1,008 10 %
After ten years384 370 4 %
4,410 4,237 42 %
Collateralized loan obligations and other ABS (average life of approximately 3 years)
4,336 4,140 41 %
MBS (average life of approximately 6 years)
1,821 1,667 17 %
Total$10,567 $10,044 100 %
(*)Amortized cost, net of allowance for expected credit losses.
Net investment income earned and investment expenses incurred The following table shows (in millions) investment income earned and investment expenses incurred.
Three months ended March 31,
20232022
Investment income:
Fixed maturities$122 $80 
Equity securities:
Dividends9 7 
Change in fair value (*)16 7 
Equity in earnings of partnerships and similar investments
57 133 
Other18 7 
Gross investment income222 234 
Investment expenses(5)(4)
Net investment income$217 $230 
(*)Although the change in the fair value of the majority of AFG’s equity securities is recorded in realized gains (losses) on securities, AFG records holding gains and losses in net investment income on limited partnerships and similar investments that do not qualify for equity method accounting and certain other securities classified at purchase as “fair value through net investment income.”
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized gains (losses) and changes in unrealized appreciation (depreciation) included in AOCI related to fixed maturity securities are summarized as follows (in millions):
Three months ended March 31, 2023Three months ended March 31, 2022
Realized gains (losses)Realized gains (losses)
Before ImpairmentsImpairment AllowanceTotalChange in UnrealizedBefore ImpairmentsImpairment AllowanceTotalChange in Unrealized
Fixed maturities$(23)$(5)$(28)$107 $(4)$2 $(2)$(311)
Equity securities(18)— (18)— (13)— (13)— 
Mortgage loans and other investments
— — — — — — — — 
Total pretax(41)(5)(46)107 (17)2 (15)(311)
Tax effects8 1 9 (23)3 — 3 66 
Net of tax
$(33)$(4)$(37)$84 $(14)$2 $(12)$(245)
Holding gains (losses) on equity securities still held AFG recorded net holding gains (losses) on equity securities during the first three months of 2023 and 2022 on securities that were still owned at March 31, 2023 and March 31, 2022 as follows (in millions):
Three months ended March 31,
20232022
Included in realized gains (losses)$(23)$(13)
Included in net investment income16 4 
$(7)$(9)
Gross realized gains and losses on available for sale fixed maturity and equity security investments
Gross realized gains and losses (excluding changes in impairment allowance and mark-to-market of derivatives) on available for sale fixed maturity investment transactions consisted of the following (in millions):
Three months ended March 31,
20232022
Gross gains$1 $1 
Gross losses(25)—