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Long-Term Debt
 12 Months Ended
Dec. 31, 2011
Long-Term Debt [Abstract]  
Long-Term Debt
J.   Long-Term Debt
The carrying value of long-term debt consisted of the following at December 31 (in millions):
                 
    2011     2010  
Direct obligations of AFG:
               
9-7/8% Senior Notes due June 2019
  $ 350     $ 350  
7% Senior Notes due September 2050
    132       132  
7-1/8% Senior Debentures due February 2034
    115       115  
Other
    3       3  
 
           
 
               
 
    600       600  
 
           
Subsidiaries:
               
Obligations of AAG Holding (guaranteed by AFG):
               
7-1/2% Senior Debentures due November 2033
    112       112  
7-1/4% Senior Debentures due January 2034
    86       86  
Notes payable secured by real estate due 2012 through 2016
    64       65  
Secured borrowings ($17 and $18 guaranteed by AFG)
    30       41  
National Interstate bank credit facility
    22       20  
American Premier Underwriters 10-7/8% Subordinated Notes
    —       8  
 
           
 
               
 
    314       332  
 
           
Payable to Subsidiary Trusts:
               
AAG Holding Variable Rate Subordinated Debentures due May 2033
    20       20  
 
           
 
               
 
  $ 934     $ 952  
 
           
At December 31, 2011, scheduled principal payments on debt for the subsequent five years were as follows: 2012 — $34 million, 2013 — $20 million, 2014 — $2 million, 2015 — $14 million and 2016 — $45 million.
As shown below at December 31 (in millions), the majority of AFG’s long-term debt is unsecured obligations of the holding company and its subsidiaries:
                 
    2011     2010  
 
               
Unsecured obligations
  $ 840     $ 846  
Obligations secured by real estate
    64       65  
Other secured borrowings
    30       41  
 
           
 
               
 
  $ 934     $ 952  
 
           
AFG can borrow up to $500 million under its revolving credit facility which expires in August 2013. Amounts borrowed under this agreement bear interest at rates ranging from 1.75% to 3.00% (currently 2%) over LIBOR based on AFG’s credit rating. No amounts were borrowed under this facility at December 31, 2011.
In May 2011, American Premier Underwriters, Inc. (“American Premier”) paid $8 million to redeem its outstanding 10-7/8% Subordinated Notes at maturity. In September 2010, AFG issued $132 million of 7% Senior Notes due in 2050.
Cash interest payments on long-term debt were $74 million in 2011, $68 million in 2010 and $64 million in 2009. Interest expense in the Statement of Earnings includes interest credited on funds held by AFG’s insurance subsidiaries under reinsurance contracts and other similar agreements as follows: $10 million in 2011 and 2010 and $7 million in 2009.