Derivatives (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives included in the Balance Sheet at fair value

The following table presents the classification of derivative assets and liabilities included in AFG’s Balance Sheet at fair value (in millions):

		December 31, 2023				December 31, 2022
	Balance Sheet Line	Asset		Liability		Asset		Liability
Derivatives designated and qualifying as cash flow hedges:
Interest rate swaps	Other assets/Other liabilities	$	1	$	22	$	—	$	37
Derivatives not designated as hedging instruments:
Fixed maturities with embedded derivatives	Fixed maturities	81		—		40		—
Total return swap	Other assets/Other liabilities	5		—		—		5
		$	87	$	22	$	40	$	42

Summary of gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives

The following table summarizes the gains (losses) included in AFG’s Statement of Earnings for changes in the fair value of derivatives for 2023, 2022 and 2021 (in millions):

		Non-designated hedges - gains (losses) included in net earnings						Qualifying cash flow hedges - gains (losses) reclassified from AOCI to net earnings
	Statement of Earnings Line	2023		2022		2021		2023		2022		2021
Derivative instruments of continuing operations:
Interest rate swaps	Net investment income	$	—	$	—	$	—	$	(26)	$	—	$	—
Fixed maturities with embedded derivatives	Realized gains (losses) on securities	(2)		(12)		(6)		—		—		—
Fixed maturities with embedded derivatives	Net investment income	(4)		—		—		—		—		—
Total return swap	Other expenses	13		(5)		—		—		—		—
Total earnings (losses) of continuing operations		$	7	$	(17)	$	(6)	$	(26)	$	—	$	—
Derivative instruments of discontinued operations (*):
Interest rate swaps	Net earnings from discontinued operations	$	—	$	—	$	—	$	—	$	—	$	14
MBS with embedded derivatives	Net earnings from discontinued operations	—		—		(1)		—		—		—
Fixed-indexed and variable-indexed annuities (embedded derivative)	Net earnings from discontinued operations	—		—		(222)		—		—		—
Equity index call options	Net earnings from discontinued operations	—		—		237		—		—		—
Equity index put options	Net earnings from discontinued operations	—		—		5		—		—		—
Reinsurance contract (embedded derivative)	Net earnings from discontinued operations	—		—		1		—		—		—
Total earnings (losses) of discontinued operations		—		—		20		—		—		14
Earnings (losses)		$	7	$	(17)	$	14	$	(26)	$	—	$	14

(*)Earnings (losses) for 2021 are through the May 31, 2021 effective date of the sale of the annuity business.