Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

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, 2024										Three Months Ended September 30, 2023
	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	$	27					$	33	$	6	$	12					$	18
Commission income					$	23			23						$	15			15
Program fees			4						4				2						2
Net investment income	34		2		—		$	2	38		27		1		—		$	3	30
Net investment gains (losses), including impairments	(1)		—				(1)		(1)		1		—				—		1
Net gains (losses) on derivative contracts	(1)				2		5		5		4				—		—		4
Other (1)	6		7		(1)		—		13		3		—		—		—		3
Total revenues (2)	44		40		24		6		114		41		16		15		3		74
Expenses:
Losses and loss adjustment expenses (benefit)	17		20						38		(86)		10						(76)
Amortization of deferred acquisition costs, net	—		6						6		—		2						2
Commission expenses					9				9						8				8
General and administrative expenses (3)	14		5		12		24		55		35		4		3		7		49
Depreciation expense (3)	—		—		—		—		1		—		—		—		—		—
Intangible amortization	6				6				13		6				1				7
Interest expense	16				4				20		16				—				16
Total expenses (2)	54		31		32		24		141		(28)		15		12		7		6
Pretax income (loss)	$	(9)	$	9	$	(8)	$	(18)	$	(27)	$	69	$	—	$	2	$	(4)	$	68
Total assets (2)	$	7,358	$	812	$	937	$	150	$	9,256	$	7,018	$	457	$	160	$	213	$	7,847

	Nine Months Ended September 30, 2024										Nine Months Ended September 30, 2023
	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	$	19	$	80					$	99	$	20	$	27					$	47
Commission income					$	54			54						$	39			39
Program fees			10						10				6						6
Net investment income (loss)	105		5		—		$	6	116		90		3				$	7	100
Net investment gains (losses), including impairments	(1)		—				4		3		(7)		—				—		(7)
Net gains (losses) on derivative contracts	1				2		4		7		2						—		1
Other (1)	27		7		(1)		—		33		7		—		—		—		7
Total revenues (2)	151		102		55		14		321		112		35		39		7		194
Expenses:
Losses and loss adjustment expenses	(9)		63						54		(71)		20						(51)
Amortization of deferred acquisition costs, net	—		16						16		—		5						5
Commission expenses					27				27						22				22
General and administrative expenses (3)	58		13		18		47		137		87		12		7		14		120
Depreciation expense (3)	1		—		—		1		2		1		—		—		—		1
Intangible amortization	25				9				33		18				3				21
Interest expense	48				4				51		48				—				48
Total expenses (2)	122		92		58		48		320		83		36		33		14		166
Pretax income (loss)	$	28	$	10	$	(3)	$	(34)	$	1	$	29	$	(1)	$	7	$	(8)	$	28

(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.

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

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the consideration transferred to acquire Beat and the estimated fair values of the identified assets acquired and liabilities assumed at the acquisition date, as well as the fair value of the noncontrolling interest, at the acquisition date:

Fair value of consideration transferred:
Cash	$	252
Common shares	29
Total consideration	281
Recognized amounts of assets acquired, liabilities assumed and noncontrolling interests:
Cash and equivalents	8
Short-term investments	29
Commission receivables	5
Contract assets	43
Other assets	11
Intangible assets	312
Goodwill	350
Advanced commissions	(49)
Premium payable	(6)
Deferred tax liability	(74)
Other liabilities	(20)
Redeemable noncontrolling interest	(179)
Nonredeemable noncontrolling interests	(148)
Total	281