Segments of Operations

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segments of Operations

Segments of Operations

AFG manages its business as two segments: Property and casualty insurance and Other, which includes holding company costs.

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 and other specialty transportation niches, 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 a deferred gain on a retroactive reinsurance transaction related to the sale of a business. AFG’s reportable segments and their components were determined based primarily upon similar economic characteristics, products and services.

The following tables (in millions) show AFG’s revenues and earnings before income taxes by segment and sub-segment.

	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	981	$	828	$	2,037	$	1,837
Specialty casualty	744		734		2,213		2,149
Specialty financial	269		232		753		623
Other specialty	61		61		183		190
Total premiums earned	2,055		1,855		5,186		4,799
Net investment income	195		170		589		568
Other income	2		5		6		13
Total property and casualty insurance	2,252		2,030		5,781		5,380
Other	119		157		384		435
Total revenues before realized gains (losses)	2,371		2,187		6,165		5,815
Realized gains (losses) on securities	(2)		(19)		10		(67)
Realized loss on subsidiary	—		(4)		—		(4)
Total revenues	$	2,369	$	2,164	$	6,175	$	5,744
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	34	$	42	$	129	$	117
Specialty casualty	76		78		258		261
Specialty financial	22		29		80		65
Other specialty	(15)		(6)		(45)		(22)
Other lines	(2)		(1)		(4)		(1)
Total underwriting	115		142		418		420
Investment and other income, net	176		156		532		527
Total property and casualty insurance	291		298		950		947
Other (*)	(60)		(56)		(156)		(138)
Total earnings (loss) before realized gains (losses) and income taxes	231		242		794		809
Realized gains (losses) on securities	(2)		(19)		10		(67)
Realized loss on subsidiary	—		(4)		—		(4)
Total earnings before income taxes	$	229	$	219	$	804	$	738

(*)Includes holding company interest and expenses, which includes a gain of $1 million on retirement of debt in the first nine months of 2023 and special charges of $14 million and $15 million in the third quarter of 2024 and 2023, respectively, to increase asbestos and environmental liabilities related to AFG’s former railroad and manufacturing operations.