Segment Reporting

3 Months Ended

Mar. 31, 2023

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) 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, capital management and business development costs for the acquisition and development of new business initiatives.

	Three Months Ended March 31, 2023										Three Months Ended March 31, 2022
	Legacy Financial Guarantee Insurance		Specialty Property & Casualty Insurance		Insurance Distribution		Corporate & Other		Consoli-dated (2)		Legacy Financial Guarantee Insurance		Specialty Property & Casualty Insurance		Insurance Distribution		Corporate & Other		Consoli-dated (2)
Revenues:
Net premiums earned	$	7	$	7					$	14	$	13	$	1					$	15
Commission income					$	14			14						$	9			9
Program fees			1						1				—						—
Net investment income	31		1				$	2	34		5		—				$	—	5
Net investment gains (losses), including impairments	(4)		—				—		(4)		10		—				—		10
Net gains (losses) on derivative contracts	(3)						—		(4)		57								57
Other (1)	2		—		—		—		2		24		—		—		—		24
Total revenues (2)	32		9		15		2		58		109		2		9		—		119
Expenses:
Losses and loss adjustment expenses	13		5						18		23		1						24
Amortization of deferred acquisition costs, net	—		1						1		—		—						—
Commission expenses					8				8						5				5
General and administrative expenses (3)	28		4		2		2		36		21		3		1		3		29
Depreciation expense (3)	—		—		—		—		—		—		—		—		—		—
Intangible amortization	6				1				7		14				1				14
Interest expense	16								16		44								44
Total expenses (2)	64		10		11		2		86		102		4		6		3		116
Pretax income (loss)	$	(32)	$	(1)	$	4	$	—	$	(29)	$	6	$	(2)	$	2	$	(3)	$	3
Total assets (2)	$	7,503	$	349	$	140	$	227	$	8,219	$	11,075	$	191	$	97	$	168	$	11,531

(1)Other revenues include the following line item on the Consolidated Statements of Total Comprehensive Income: Income (loss) on variable interest entities and other income.

(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 $0 and $77 at March 31, 2023 and 2022.

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