Segment Reporting

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Reporting Disclosure

3.    SEGMENT INFORMATION

The Company reports its results of operations in three segments: Legacy Financial Guarantee Insurance, Specialty Property and Casualty Insurance and Insurance Distribution, separate from Corporate and Other, which is consistent with the manner in which the Company's chief operating decision maker ("CODM") reviews the business to assess performance and allocate resources. See Note 1. Background and Business Description for a description of each of the Company's business segments.

The following tables summarize the components of the Company’s total revenues and expenses, pretax income (loss), net income (loss), net income (loss) attributable to common shareholders and total assets by reportable business segment. Information provided below for “Corporate and Other” primarily relates to the operations of AFG, which will include investment income on its investment portfolio and costs to maintain the operations of AFG, including public company reporting, and business development costs for the acquisition and development of new business initiatives.

	Legacy Financial Guarantee Insurance		Specialty Property & Casualty Insurance		Insurance Distribution		Corporate & Other		Consolidated (2)
Three Months Ended March 31, 2022
Revenues:
Net premiums earned	$	13	$	1					$	15
Net investment income	5		—				—		5
Net gains on derivative contracts	57								57
Commission income					$	9			9
Other revenues (1)	34		—		—		—		34
Total revenues (2)	109		2		9		—		119
Expenses:
Loss and loss expenses	23		1						24
Operating expenses (3)	21		3		1		3		29
Sub-producer commissions (3)					5				5
Depreciation expense (3)	—		—		—		—		—
Intangible amortization	14				1				14
Interest expense	44								44
Total expenses (2)	102		4		6		3		116
Pretax income (loss)	$	6	$	(2)	$	2	$	(3)	$	3
Total assets (2)	$	11,075	$	191	$	97	$	168	$	11,531

	Legacy Financial Guarantee Insurance		Specialty Property & Casualty Insurance		Insurance Distribution		Corporate & Other		Consolidated (2)
Three Months Ended March 31, 2021
Revenues:
Net premiums earned	$	14	$	—					$	14
Net investment income	49		—				—		49
Net gains on derivative contracts	25								25
Commission income					$	7			7
Other revenues (1)	29		—		—		4		33
Total revenues (2)	118		—		7		4		129
Expenses:
Loss and loss expenses	8		—						8
Operating expenses (3)	17		1		1		10		29
Sub-producer commissions (3)					4				4
Depreciation expense (3)	—		—		—		—		—
Intangible amortization	19				1				19
Interest expense	50								50
Total expenses	94		1		5		10		110
Pretax income (loss) (2)	$	24	$	(1)	$	2	$	(6)	$	19
Total assets (2)	$	12,470	$	108	$	98	$	165	$	12,840

(1)Other revenues include the following line items on the Consolidated Statements of Total Comprehensive Income: Net investment gains (losses), including impairments, Net realized gains (losses) on extinguishment of debt, income (loss) on variable interest entities and other income (expense).

(2)Inter-segment revenues and inter-segment pre-tax income (loss) amounts are insignificant and are not presented separately. Total assets noted in the Corporate and Other Column is net of AFG's investment in surplus notes issued by the Legacy Financial Guarantee Segment with fair values of $77 and $114 at March 31, 2022 and 2021.

(3)The Consolidated Statements of Comprehensive Income presents the sum of these items as Operating Expenses.