Segment Reporting

9 Months Ended

Sep. 30, 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 September 30, 2023										Three Months Ended September 30, 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	$	6	$	12					$	18	$	7	$	4					$	11
Commission income					$	15			15						$	7			7
Program fees			2						2				1						1
Net investment income (loss)	27		1				$	3	30		9		—		—		$	1	11
Net investment gains (losses), including impairments	1		—				—		1		14		—				—		14
Net gains (losses) on derivative contracts	4						—		4		37						—		37
Other (1)	3		—		—		—		3		(1)		—		—		—		(1)
Total revenues (2)	41		16		15		3		74		67		6		7		1		80
Expenses:
Losses and loss adjustment expenses	(86)		10						(76)		(356)		3						(353)
Amortization of deferred acquisition costs, net	—		2						2		—		1						1
Commission expenses					8				8						4				4
General and administrative expenses (3)	35		4		3		7		49		20		3		1		6		31
Depreciation expense (3)	—		—		—		—		—		—		—		—		—		—
Intangible amortization	6				1				7		5				1				6
Interest expense	16								16		49								49
Total expenses (2)	(28)		15		12		7		6		(282)		7		6		6		(262)
Pretax income	$	69	$	—	$	2	$	(4)	$	68	$	349	$	(1)	$	1	$	(6)	$	342
Total assets (2)	$	7,018	$	457	$	160	$	213	$	7,847	$	8,902	$	259	$	94	$	157	$	9,412
	Nine Months Ended September 30, 2023										Nine Months Ended September 30, 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	$	20	$	27					$	47	31		8						39
Commission income					39				39						22				22
Program fees			6						6				2						2
Net investment income (loss)	90		3				7		100		(9)		1				2		(6)
Net investment gains (losses), including impairments	(7)		—				—		(7)		31		—				—		31
Net gains (losses) on derivative contracts	2						—		1		123						1		124
Net realized gains on extinguishment of debt	—								—		57								57
Other (1)	7		—		—		—		7		17		—		—		—		17
Total revenues (2)	112		35		39		7		194		250		11		22		2		286
Expenses:
Losses and loss adjustment expenses	(71)		20						(51)		(347)		5						(341)
Amortization of deferred acquisition costs, net	—		5						5		—		1						2
Commission expenses					22				22						13				13
General and administrative expenses (3)	87		12		7		14		120		64		10		4		11		88
Depreciation expense (3)	1		—		—		—		1		1		—		—		—		1
Intangible amortization	18				3				21		32				2				34
Interest expense	48								48		138								138
Total expenses (2)	83		36		33		14		166		(112)		16		19		11		(66)
Pretax income (loss)	29		(1)		7		(8)		28		362		(5)		3		(8)		352

(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 $— and $69 at September 30, 2023 and 2022.

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