Segments of Operations

12 Months Ended

Dec. 31, 2011

Segments of Operations [Abstract]

Segments of Operations

C. Segments of Operations

AFG manages its business as three segments: (i) property and casualty insurance, (ii) annuity and supplemental insurance and (iii) other, which includes holding company assets and costs, and the assets and operations of the managed investment entities.

AFG reports its property and casualty insurance business in the following Specialty sub-segments: (i) Property and transportation, which includes physical damage and liability coverage for buses, trucks and recreational vehicles, inland and ocean marine, agricultural-related products and other property coverages, (ii) Specialty casualty, which includes primarily excess and surplus, general liability, executive liability, umbrella and excess liability, customized programs for small to mid-sized businesses and California workers’ compensation, and (iii) Specialty financial, which includes risk management insurance programs for lending and leasing institutions (including collateral and mortgage protection insurance), surety and fidelity products and trade credit insurance. AFG’s annuity and supplemental insurance business markets traditional fixed and indexed annuities and a variety of supplemental insurance products such as Medicare supplement.

AFG’s reportable segments and their components were determined based primarily upon similar economic characteristics, products and services.

Sales of property and casualty insurance outside of the United States represented 5% of AFG’s revenues in 2011, and 4% in both 2010 and 2009.

The following tables (in millions) show AFG’s assets, revenues and operating earnings before income taxes by significant business segment and sub-segment.

	2011			2010			2009
Assets
Property and casualty insurance (a)	$	11,882		$	11,609		$	11,863
Annuity and supplemental insurance		20,451			17,766			15,476
Other		3,709			3,079			344
Total assets	$	36,042		$	32,454		$	27,683
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	1,412		$	1,167		$	909
Specialty casualty		872			873			917
Specialty financial		408			446			517
Other		67			64			69
Total premiums earned		2,759			2,550			2,412
Investment income		296			341			414
Realized gains (losses)		97			88			123
Other income		65			64			106
Total property and casualty insurance		3,217			3,043			3,055
Annuity and supplemental insurance:
Investment income		944			856			784
Life, accident and health premiums		430			451			444
Realized gains (losses)		(23	)		—			(86	)
Other income		104			110			114
Total annuity and supplemental insurance		1,455			1,417			1,256
Other		78			37			9
Total revenues	$	4,750		$	4,497		$	4,320
Operating Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	113		$	140		$	236
Specialty casualty		39			47			63
Specialty financial		61			112			134
Other		18			9			(9	)
Other lines (b)		(51	)		(12	)		(7	)
Total underwriting		180			296			417
Investment and other income, net		263			299			338
Realized gains (losses)		97			88			123
Total property and casualty insurance		540			683			878
Annuity and supplemental insurance:
Operations		224			202			162
Realized gains (losses)		(23	)		—			(86	)
Total annuity and supplemental insurance		201			202			76
Other (c)		(181	)		(196	)		(142	)
Total operating earnings before income taxes	$	560		$	689		$	812

(a)	Not allocable to sub-segments.
(b)	Includes a second quarter 2011 special charge of $50 million to increase asbestos and environmental reserves.
(c)	Includes holding company expenses, a second quarter 2011 special charge of $9 million to increase asbestos and environmental reserves and $24 million and $64 million in losses of managed investment entities attributable to noncontrolling interests for the years ended December 31, 2011 and 2010, respectively.