Condensed Consolidating Information (Tables)

12 Months Ended

Dec. 31, 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
DECEMBER 31, 2011
Assets:
Cash and investments	$	456	$	32	$	—	$	25,090	$	(1	)	$	25,577
Recoverables from reinsurers and prepaid reinsurance premiums		—		—		—		3,351		—			3,351
Agents’ balances and premiums receivable		—		—		—		565		—			565
Deferred policy acquisition costs		—		—		—		1,105		—			1,105
Assets of managed investment entities		—		—		—		3,058		—			3,058
Other assets		105		5		5		2,309		(38	)		2,386
Investment in subsidiaries and affiliates		4,866		2,055		2,146		643		(9,710	)		—
Total assets	$	5,427	$	2,092	$	2,151	$	36,121	$	(9,749	)	$	36,042
Liabilities and Equity:
Unpaid losses and loss adjustment expenses and unearned premiums	$	—	$	—	$	—	$	8,004	$	—		$	8,004
Annuity, life, accident and health benefits and reserves		—		—		—		17,148		(1	)		17,147
Liabilities of managed investment entities		—		—		—		2,787		—			2,787
Long-term debt		600		—		220		115		(1	)		934
Other liabilities		282		20		109		2,266		(198	)		2,479
Total liabilities		882		20		329		30,320		(200	)		31,351
Total shareholders’ equity		4,545		2,072		1,822		5,655		(9,549	)		4,545
Noncontrolling interests		—		—		—		146		—			146
Total liabilities and equity	$	5,427	$	2,092	$	2,151	$	36,121	$	(9,749	)	$	36,042
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 YEAR ENDED DECEMBER 31, 2011
Revenues:
Property and casualty insurance premiums	$	—	$	—		$	—	$	2,759		$	—		$	2,759
Life, accident and health premiums		—		—			—		430			—			430
Realized gains (losses)		—		(1	)		—		75			(1	)		73
Income of managed investment entities		—		—			—		72			—			72
Investment and other income		2		11			—		1,430			(27	)		1,416
Equity in earnings of subsidiaries		710		189			216		—			(1,115	)		—
Total revenues		712		199			216		4,766			(1,143	)		4,750
Costs and Expenses:
Insurance benefits and expenses		—		—			—		3,671			—			3,671
Interest charges on borrowed money		64		—			25		16			(20	)		85
Expenses of managed investment entities		—		—			—		71			—			71
Other operating and general expenses		65		15			5		284			(6	)		363
Total costs and expenses		129		15			30		4,042			(26	)		4,190
Operating earnings before income taxes		583		184			186		724			(1,117	)		560
Provision (credit) for income taxes		240		62			64		283			(409	)		240
Net earnings, including noncontrolling interests		343		122			122		441			(708	)		320
Less: Net earnings (loss) attributable to noncontrolling interests		—		—			—		(23	)		—			(23	)
Net Earnings Attributable to Shareholders	$	343	$	122		$	122	$	464		$	(708	)	$	343
FOR THE YEAR ENDED DECEMBER 31, 2010
Revenues:
Property and casualty insurance premiums	$	—	$	—		$	—	$	2,550		$	—		$	2,550
Life, accident and health premiums		—		—			—		451			—			451
Realized gains (losses)		—		(2	)		—		90			—			88
Income of managed investment entities		—		—			—		23			—			23
Investment and other income		4		11			—		1,392			(22	)		1,385
Equity in earnings of subsidiaries		850		195			242		—			(1,287	)		—
Total revenues		854		204			242		4,506			(1,309	)		4,497
Costs and Expenses:
Insurance benefits and expenses		—		—			—		3,297			—			3,297
Interest charges on borrowed money		58		—			25		17			(22	)		78
Expenses of managed investment entities		—		—			—		55			—			55
Other operating and general expenses		51		16			5		306			—			378
Total costs and expenses		109		16			30		3,675			(22	)		3,808
Operating earnings before income taxes		745		188			212		831			(1,287	)		689
Provision (credit) for income taxes		266		72			72		314			(458	)		266
Net earnings, including noncontrolling interests		479		116			140		517			(829	)		423
Less: Net earnings (loss) attributable to noncontrolling interests		—		—			—		(56	)		—			(56	)
Net Earnings Attributable to Shareholders	$	479	$	116		$	140	$	573		$	(829	)	$	479

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS
(In millions)

						AAG		All Other		Consol.
	AFG		GAFRI			Holding		Subs		Entries			Consolidated
FOR THE YEAR ENDED DECEMBER 31, 2009
Revenues:
Property and casualty insurance premiums	$	—	$	—		$	—	$	2,412	$	—		$	2,412
Life, accident and health premiums		—		—			—		444		—			444
Realized gains (losses)		—		(7	)		—		44		1			38
Investment and other income		2		10			—		1,437		(23	)		1,426
Equity in earnings of subsidiaries		896		73			115		—		(1,084	)		—
Total revenues		898		76			115		4,337		(1,106	)		4,320
Costs and Expenses:
Insurance benefits and expenses		—		—			—		2,978		—			2,978
Interest charges on borrowed money		50		—			25		15		(23	)		67
Other operating and general expenses		47		20			6		391		(1	)		463
Total costs and expenses		97		20			31		3,384		(24	)		3,508
Operating earnings before income taxes		801		56			84		953		(1,082	)		812
Provision (credit) for income taxes		282		17			26		327		(370	)		282
Net earnings, including noncontrolling interests		519		39			58		626		(712	)		530
Less: Net earnings (loss) attributable to noncontrolling interests		—		—			—		11		—			11
Net Earnings Attributable to Shareholders	$	519	$	39		$	58	$	615	$	(712	)	$	519

Condensed Consolidating Statement of Cash Flows

							AAG			All Other			Consol.
	AFG			GAFRI			Holding			Subs			Entries			Consolidated
FOR THE YEAR ENDED DECEMBER 31, 2011
Operating Activities:
Net earnings, including noncontrolling interests	$	343		$	122		$	122		$	441		$	(708	)	$	320
Adjustments:
Equity in net earnings of subsidiaries		(440	)		(124	)		(142	)		—			706			—
Dividends from subsidiaries		542			3			38			—			(583	)		—
Other operating activities, net		17			(1	)		2			327			2			347
Net cash provided by (used in) operating activities		462			—			20			768			(583	)		667
Investing Activities:
Purchases of investments, property and equipment		(54	)		—			—			(5,940	)		—			(5,994	)
Returns of capital from (capital contributions to) subsidiaries		(27	)		14			(1	)		—			14			—
Proceeds from maturities and redemptions of investments		4			9			—			2,230			—			2,243
Proceeds from sales of investments, property and equipment		5			—			—			1,489			—			1,494
Managed investment entities:
Purchases of investments		—			—			—			(1,563	)		—			(1,563	)
Proceeds from sales and redemptions of investments		—			—			—			1,391			—			1,391
Other investing activities, net		—			—			—			(10	)		—			(10	)
Net cash provided by (used in) investing activities		(72	)		23			(1	)		(2,403	)		14			(2,439	)
Financing Activities:
Annuity receipts		—			—			—			3,326			—			3,326
Annuity surrenders, benefits and withdrawals		—			—			—			(1,321	)		—			(1,321	)
Net transfers from (to) variable annuity assets		—			—			—			39			—			39
Additional long-term borrowings		—			—			—			2			—			2
Reductions of long-term debt		—			—			—			(20	)		—			(20	)
Issuances of managed investment entities’ liabilities		—			—			—			394			—			394
Retirement of managed investment entities’ liabilities		—			—			—			(66	)		—			(66	)
Issuances of Common Stock		37			—			—			2			—			39
Capital contributions from (returns of capital to) parent		—			16			(19	)		(143	)		146			—
Repurchases of Common Stock		(315	)		—			—			—			—			(315	)
Cash dividends paid		(67	)		(40	)		—			(383	)		423			(67	)
Other financing activities, net		—			—			—			(14	)		—			(14	)
Net cash provided by (used in) financing activities		(345	)		(24	)		(19	)		1,816			569			1,997
Net change in cash and cash equivalents		45			(1	)		—			181			—			225
Cash and cash equivalents at beginning of year		370			20			—			709			—			1,099
Cash and cash equivalents at end of year	$	415		$	19		$	—		$	890		$	—		$	1,324

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
(In millions)

							AAG			All Other			Consol.
	AFG			GAFRI			Holding			Subs			Entries			Consolidated
FOR THE YEAR ENDED DECEMBER 31, 2010
Operating Activities:
Net earnings, including noncontrolling interests	$	479		$	116		$	140		$	517		$	(829	)	$	423
Adjustments:
Equity in net earnings of subsidiaries		(548	)		(121	)		(159	)		—			828			—
Dividends from subsidiaries		550			—			16			—			(566	)		—
Other operating activities, net		—			(2	)		1			441			1			441
Net cash provided by (used in) operating activities		481			(7	)		(2	)		958			(566	)		864
Investing Activities:
Purchases of investments, property and equipment		(13	)		(5	)		—			(5,417	)		—			(5,435	)
Purchase of subsidiaries		—			—			—			(128	)		—			(128	)
Capital contributions to subsidiaries		(97	)		(7	)		(5	)		—			109			—
Proceeds from maturities and redemptions of investments		—			11			—			2,141			—			2,152
Proceeds from sales of investments, property and equipment		—			—			—			1,593			—			1,593
Managed investment entities:
Purchases of investments		—			—			—			(1,008	)		—			(1,008	)
Proceeds from sales and redemptions of investments		—			—			—			1,018			—			1,018
Other investing activities, net		—			—			—			103			—			103
Net cash provided by (used in) investing activities		(110	)		(1	)		(5	)		(1,698	)		109			(1,705	)
Financing Activities:
Annuity receipts		—			—			—			2,282			—			2,282
Annuity surrenders, benefits and withdrawals		—			—			—			(1,221	)		—			(1,221	)
Net transfers from (to) variable annuity assets		—			—			—			7			—			7
Additional long-term borrowings		128			—			—			31			—			159
Reductions of long-term debt		—			—			—			(39	)		—			(39	)
Retirement of managed investment entities’ liabilities		—			—			—			(45	)		—			(45	)
Issuances of Common Stock		31			—			—			1			—			32
Capital contributions from parent		—			16			7			86			(109	)		—
Repurchases of Common Stock		(292	)		—			—			—			—			(292	)
Cash dividends paid		(63	)		—			—			(566	)		566			(63	)
Other financing activities, net		(2	)		—			—			2			—			—
Net cash provided by (used in) financing activities		(198	)		16			7			538			457			820
Net change in cash and cash equivalents		173			8			—			(202	)		—			(21	)
Cash and cash equivalents at beginning of year		197			12			—			911			—			1,120
Cash and cash equivalents at end of year	$	370		$	20		$	—		$	709		$	—		$	1,099

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
(In millions)

							AAG			All Other			Consol.
	AFG			GAFRI			Holding			Subs			Entries			Consolidated
FOR THE YEAR ENDED DECEMBER 31, 2009
Operating Activities:
Net earnings, including noncontrolling interests	$	519		$	39		$	58		$	626		$	(712	)	$	530
Adjustments:
Equity in net earnings of subsidiaries		(583	)		(51	)		(79	)		—			713			—
Dividends from subsidiaries		636			3			—			—			(639	)		—
Other operating activities, net		14			4			(3	)		371			(1	)		385
Net cash provided by (used in) operating activities		586			(5	)		(24	)		997			(639	)		915
Investing Activities:
Purchases of investments, property and equipment		(14	)		(15	)		—			(4,991	)		—			(5,020	)
Purchase of subsidiaries		—			—			—			(5	)		—			(5	)
Capital contributions to subsidiaries		(170	)		(141	)		(116	)		—			427			—
Proceeds from maturities and redemptions of investments		1			2			—			1,942			—			1,945
Proceeds from sales of investments, property and equipment		15			1			—			2,319			—			2,335
Other investing activities, net		—			—			—			(38	)		—			(38	)
Net cash provided by (used in) investing activities		(168	)		(153	)		(116	)		(773	)		427			(783	)
Financing Activities:
Annuity receipts		—			—			—			1,434			—			1,434
Annuity surrenders, benefits and withdrawals		—			—			—			(1,273	)		—			(1,273	)
Net transfers from (to) variable annuity assets		—			—			—			(10	)		—			(10	)
Additional long-term borrowings		522			—			—			59			—			581
Reductions of long-term debt		(776	)		—			—			(9	)		—			(785	)
Issuances of Common Stock		14			—			—			1			—			15
Capital contributions from parent		—			168			140			119			(427	)		—
Repurchases of Common Stock		(81	)		—			—			—			—			(81	)
Cash dividends paid		(60	)		—			—			(639	)		639			(60	)
Other financing activities, net		—			—			—			(97	)		—			(97	)
Net cash provided by (used in) financing activities		(381	)		168			140			(415	)		212			(276	)
Net change in cash and cash equivalents		37			10			—			(191	)		—			(144	)
Cash and cash equivalents at beginning of year		160			2			—			1,102			—			1,264
Cash and cash equivalents at end of year	$	197		$	12		$	—		$	911		$	—		$	1,120