Condensed Consolidating Information (Tables)

9 Months Ended

Sep. 30, 2011

Condensed Consolidating Information [Abstract]

Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET
(In millions)

					AAG		All Other		Consol.
	AFG		GAFRI		Holding		Subs		Entries			Consolidated
SEPTEMBER 30, 2011
Assets:
Cash and investments	$	353	$	41	$	—	$	24,561	$	(1	)	$	24,954
Recoverables from reinsurers and prepaid reinsurance premiums		—		—		—		3,478		—			3,478
Agents’ balances and premiums receivable		—		—		—		866		—			866
Deferred policy acquisition costs		—		—		—		1,127		—			1,127
Assets of managed investment entities		—		—		—		2,439		—			2,439
Other assets		97		8		8		2,193		(40	)		2,266
Investment in subsidiaries and affiliates		4,867		2,061		2,149		651		(9,728	)		—
Total assets	$	5,317	$	2,110	$	2,157	$	35,315	$	(9,769	)	$	35,130
Liabilities and Equity:
Unpaid losses and loss adjustment expenses and unearned premiums	$	—	$	—	$	—	$	8,249	$	—		$	8,249
Annuity, life, accident and health benefits and reserves		—		—		—		16,484		(1	)		16,483
Liabilities of managed investment entities		—		—		—		2,229		—			2,229
Long-term debt		600		1		219		118		(1	)		937
Other liabilities		252		19		113		2,410		(182	)		2,612
Total liabilities		852		20		332		29,490		(184	)		30,510
Total shareholders’ equity		4,465		2,090		1,825		5,670		(9,585	)		4,465
Noncontrolling interests		—		—		—		155		—			155
Total liabilities and equity	$	5,317	$	2,110	$	2,157	$	35,315	$	(9,769	)	$	35,130
DECEMBER 31, 2010
Assets:
Cash and investments	$	412	$	33	$	—	$	22,228	$	(3	)	$	22,670
Recoverables from reinsurers and prepaid reinsurance premiums		—		—		—		3,386		—			3,386
Agents’ balances and premiums receivable		—		—		—		535		—			535
Deferred policy acquisition costs		—		—		—		1,244		—			1,244
Assets of managed investment entities		—		—		—		2,537		—			2,537
Other assets		36		6		5		2,050		(15	)		2,082
Investment in subsidiaries and affiliates		4,816		1,899		1,996		671		(9,382	)		—
Total assets	$	5,264	$	1,938	$	2,001	$	32,651	$	(9,400	)	$	32,454
Liabilities and Equity:
Unpaid losses and loss adjustment expenses and unearned premiums	$	—	$	—	$	—	$	7,947	$	—		$	7,947
Annuity, life, accident and health benefits and reserves		—		—		—		14,556		(1	)		14,555
Liabilities of managed investment entities		—		—		—		2,323		—			2,323
Long-term debt		600		1		219		133		(1	)		952
Other liabilities		194		19		110		1,888		(154	)		2,057
Total liabilities		794		20		329		26,847		(156	)		27,834
Total shareholders’ equity		4,470		1,918		1,672		5,654		(9,244	)		4,470
Noncontrolling interests		—		—		—		150		—			150
Total liabilities and equity	$	5,264	$	1,938	$	2,001	$	32,651	$	(9,400	)	$	32,454

Condensed Consolidating Statement of Earnings

						AAG		All Other		Consol.
	AFG			GAFRI		Holding		Subs		Entries			Consolidated
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011
Revenues:
Property and casualty insurance premiums	$	—		$	—	$	—	$	835	$	—		$	835
Life, accident and health premiums		—			—		—		107		—			107
Realized gains (losses)		—			—		—		8		—			8
Income of managed investment entities		—			—		—		28		—			28
Investment and other income		(2	)		3		—		364		(8	)		357
Equity in earnings of subsidiaries		169			37		39		—		(245	)		—
Total revenues		167			40		39		1,342		(253	)		1,335
Costs and Expenses:
Insurance benefits and expenses		—			—		—		1,059		—			1,059
Interest charges on borrowed money		16			—		6		4		(5	)		21
Expenses of managed investment entities		—			—		—		17		—			17
Other operating and general expenses		7			3		2		72		(1	)		83
Total costs and expenses		23			3		8		1,152		(6	)		1,180
Operating earnings before income taxes		144			37		31		190		(247	)		155
Provision (credit) for income taxes		48			12		9		59		(80	)		48
Net earnings, including noncontrolling interests		96			25		22		131		(167	)		107
Less: Net earnings (loss) attributable to noncontrolling interests		—			—		—		11		—			11
Net Earnings Attributable to Shareholders	$	96		$	25	$	22	$	120	$	(167	)	$	96

						AAG		All Other			Consol.
	AFG		GAFRI			Holding		Subs			Entries			Consolidated
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2010
Revenues:
Property and casualty insurance premiums	$	—	$	—		$	—	$	736		$	—		$	736
Life, accident and health premiums		—		—			—		112			—			112
Realized gains (losses)		—		(2	)		—		37			—			35
Income of managed investment entities		—		—			—		19			—			19
Investment and other income		3		3			—		352			(5	)		353
Equity in earnings of subsidiaries		242		48			76		—			(366	)		—
Total revenues		245		49			76		1,256			(371	)		1,255
Costs and Expenses:
Insurance benefits and expenses		—		—			—		919			—			919
Interest charges on borrowed money		15		—			6		6			(6	)		21
Expenses of managed investment entities		—		—			—		15			—			15
Other operating and general expenses		16		6			2		68			—			92
Total costs and expenses		31		6			8		1,008			(6	)		1,047
Operating earnings before income taxes		214		43			68		248			(365	)		208
Provision (credit) for income taxes		82		21			22		97			(140	)		82
Net earnings, including noncontrolling interests		132		22			46		151			(225	)		126
Less: Net earnings (loss) attributable to noncontrolling interests		—		—			—		(6	)		—			(6	)
Net Earnings Attributable to Shareholders	$	132	$	22		$	46	$	157		$	(225	)	$	132

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS
(In millions)

					AAG		All Other			Consol.
	AFG		GAFRI		Holding		Subs			Entries			Consolidated
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
Revenues:
Property and casualty insurance premiums	$	—	$	—	$	—	$	2,043		$	—		$	2,043
Life, accident and health premiums		—		—		—		324			—			324
Realized gains (losses)		—		—		—		25			(1	)		24
Income of managed investment entities		—		—		—		24			—			24
Investment and other income		—		8		—		1,066			(22	)		1,052
Equity in earnings of subsidiaries		447		126		144		—			(717	)		—
Total revenues		447		134		144		3,482			(740	)		3,467
Costs and Expenses:
Insurance benefits and expenses		—		—		—		2,763			—			2,763
Interest charges on borrowed money		48		—		19		12			(16	)		63
Expenses of managed investment entities		—		—		—		53			—			53
Other operating and general expenses		39		12		4		218			(4	)		269
Total costs and expenses		87		12		23		3,046			(20	)		3,148
Operating earnings before income taxes		360		122		121		436			(720	)		319
Provision (credit) for income taxes		126		42		41		163			(246	)		126
Net earnings, including noncontrolling interests		234		80		80		273			(474	)		193
Less: Net earnings (loss) attributable to noncontrolling interests		—		—		—		(41	)		—			(41	)
Net Earnings Attributable to Shareholders	$	234	$	80	$	80	$	314		$	(474	)	$	234

						AAG		All Other			Consol.
	AFG		GAFRI			Holding		Subs			Entries			Consolidated
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010
Revenues:
Property and casualty insurance premiums	$	—	$	—		$	—	$	1,887		$	—		$	1,887
Life, accident and health premiums		—		—			—		340			—			340
Realized gains (losses)		—		(2	)		—		52			—			50
Income of managed investment entities		—		—			—		24			—			24
Investment and other income		3		8			—		1,045			(16	)		1,040
Equity in earnings of subsidiaries		621		129			172		—			(922	)		—
Total revenues		624		135			172		3,348			(938	)		3,341
Costs and Expenses:
Insurance benefits and expenses		—		—			—		2,454			—			2,454
Interest charges on borrowed money		42		—			19		13			(17	)		57
Expenses of managed investment entities		—		—			—		38			—			38
Other operating and general expenses		37		13			5		224			—			279
Total costs and expenses		79		13			24		2,729			(17	)		2,828
Operating earnings before income taxes		545		122			148		619			(921	)		513
Provision (credit) for income taxes		199		49			50		236			(335	)		199
Net earnings, including noncontrolling interests		346		73			98		383			(586	)		314
Less: Net earnings (loss) attributable to noncontrolling interests		—		—			—		(32	)		—			(32	)
Net Earnings Attributable to Shareholders	$	346	$	73		$	98	$	415		$	(586	)	$	346

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
(In millions)

							AAG			All Other			Consol.
	AFG			GAFRI			Holding			Subs			Entries			Consolidated
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
Operating Activities:
Net earnings, including noncontrolling interests	$	234		$	80		$	80		$	273		$	(474	)	$	193
Adjustments:
Equity in net earnings of subsidiaries		(295	)		(83	)		(95	)		—			473			—
Dividends from subsidiaries		275			3			8			—			(286	)		—
Other operating activities, net		13			(2	)		2			454			1			468
Net cash provided by (used in) operating activities		227			(2	)		(5	)		727			(286	)		661
Investing Activities:
Purchases of investments, property and equipment		(42	)		—			—			(4,599	)		—			(4,641	)
Returns of capital from (capital contributions to) subsidiaries		45			(12	)		(1	)		—			(32	)		—
Proceeds from maturities and redemptions of investments		4			9			—			1,669			—			1,682
Proceeds from sales of investments, property and equipment		5			—			—			952			—			957
Managed investment entities:
Purchases of investments		—			—			—			(1,085	)		—			(1,085	)
Proceeds from sales and redemptions of investments		—			—			—			1,170			—			1,170
Other investing activities, net		—			—			—			(14	)		—			(14	)
Net cash provided by (used in) investing activities		12			(3	)		(1	)		(1,907	)		(32	)		(1,931	)
Financing Activities:
Annuity receipts		—			—			—			2,468			—			2,468
Annuity surrenders, benefits and withdrawals		—			—			—			(971	)		—			(971	)
Additional long-term borrowings		—			—			—			2			—			2
Reductions of long-term debt		—			—			—			(17	)		—			(17	)
Retirement of managed investment entities’ liabilities		—			—			—			(60	)		—			(60	)
Issuances of Common Stock		19			—			—			—			—			19
Capital contributions from (returns of capital to) parent		—			12			6			(50	)		32			—
Repurchases of Common Stock		(263	)		—			—			—			—			(263	)
Cash dividends paid		(50	)		—			—			(286	)		286			(50	)
Other financing activities, net		—			—			—			34			—			34
Net cash provided by (used in) financing activities		(294	)		12			6			1,120			318			1,162
Net change in cash and cash equivalents		(55	)		7			—			(60	)		—			(108	)
Cash and cash equivalents at beginning of period		370			20			—			709			—			1,099
Cash and cash equivalents at end of period	$	315		$	27		$	—		$	649		$	—		$	991

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
(In millions)

							AAG			All Other			Consol.
	AFG			GAFRI			Holding			Subs			Entries			Consolidated
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010
Operating Activities:
Net earnings, including noncontrolling interests	$	346		$	73		$	98		$	383		$	(586	)	$	314
Adjustments:
Equity in net earnings of subsidiaries		(395	)		(78	)		(114	)		—			587			—
Dividends from subsidiaries		359			—			16			—			(375	)		—
Other operating activities, net		(52	)		(2	)		4			518			(1	)		467
Net cash provided by (used in) operating activities		258			(7	)		4			901			(375	)		781
Investing Activities:
Purchases of investments, property and equipment		(6	)		—			—			(4,119	)		—			(4,125	)
Purchase of subsidiaries		—			—			—			(128	)		—			(128	)
Capital contributions to subsidiaries		(12	)		(2	)		(5	)		—			19			—
Proceeds from maturities and redemptions of investments		—			6			—			1,503			—			1,509
Proceeds from sales of investments, property and equipment		—			—			—			1,228			—			1,228
Managed investment entities:
Purchases of investments		—			—			—			(617	)		—			(617	)
Proceeds from sales and redemptions of investments		—			—			—			658			—			658
Other investing activities, net		—			—			—			101			—			101
Net cash provided by (used in) investing activities		(18	)		4			(5	)		(1,374	)		19			(1,374	)
Financing Activities:
Annuity receipts		—			—			—			1,661			—			1,661
Annuity surrenders, benefits and withdrawals		—			—			—			(914	)		—			(914	)
Additional long-term borrowings		128			—			—			30			—			158
Reductions of long-term debt		—			—			—			(36	)		—			(36	)
Retirement of managed investment entities’ liabilities		—			—			—			(42	)		—			(42	)
Issuances of Common Stock		26			—			—			1			—			27
Capital contributions from parent		—			12			1			6			(19	)		—
Repurchases of Common Stock		(201	)		—			—			—			—			(201	)
Cash dividends paid		(46	)		—			—			(375	)		375			(46	)
Other financing activities, net		(1	)		—			—			7			—			6
Net cash provided by (used in) financing activities		(94	)		12			1			338			356			613
Net change in cash and cash equivalents		146			9			—			(135	)		—			20
Cash and cash equivalents at beginning of period		197			12			—			911			—			1,120
Cash and cash equivalents at end of period	$	343		$	21		$	—		$	776		$	—		$	1,140