XML 24 R9.htm IDEA: XBRL DOCUMENT v3.24.3
Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting Disclosure
2.    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. Business and Basis of Presentation 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, 2024Three Months Ended September 30, 2023
Legacy Financial Guarantee InsuranceSpecialty Property & Casualty InsuranceInsurance DistributionCorporate & Other
Consoli-dated (2)
Legacy Financial Guarantee InsuranceSpecialty Property & Casualty InsuranceInsurance DistributionCorporate & OtherConsoli-dated (2)
Revenues:
Net premiums earned$6 $27 $33 $6 $12 $18 
Commission income$23 23 $15 15 
Program fees4 4 2 2 
Net investment income34 2 — $2 38 27 1 — $3 30 
Net investment gains (losses), including impairments(1)— (1)(1)1 — — 1 
Net gains (losses) on derivative contracts(1)2 5 5 4 — — 4 
Other (1)
6 7 (1)— 13 3 — — — 3 
Total revenues (2)
44 40 24 6 114 41 16 15 3 74 
Expenses:
Losses and loss adjustment expenses (benefit)17 20 38 (86)10 (76)
Amortization of deferred acquisition costs, net— 6 6 — 2 2 
Commission expenses9 9 8 8 
General and administrative expenses (3)
14 5 12 24 55 35 4 3 7 49 
Depreciation expense (3)
— — — — 1 — — — — — 
Intangible amortization6 6 13 6 1 7 
Interest expense16 4 20 16 — 16 
Total expenses (2)
54 31 32 24 141 (28)15 12 7 6 
Pretax income (loss)$(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, 2024Nine Months Ended September 30, 2023
Legacy Financial Guarantee InsuranceSpecialty Property & Casualty InsuranceInsurance DistributionCorporate & Other
Consoli-dated (2)
Legacy Financial Guarantee InsuranceSpecialty Property & Casualty InsuranceInsurance DistributionCorporate & OtherConsoli-dated (2)
Revenues:
Net premiums earned$19 $80 $99 $20 $27 $47 
Commission income$54 54 $39 39 
Program fees10 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 contracts1 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 expenses27 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 amortization25 9 33 18 3 21 
Interest expense48 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.