Segments of Operations

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segments of Operations

Segments of Operations

AFG manages its business as five segments: (i) Property and casualty insurance, (ii) Annuity, (iii) Run-off long-term care and life, (iv) Medicare supplement and critical illness (sold in August 2012) and (v) Other, which includes holding company costs, and the operations attributable to the noncontrolling interests 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 workers’ compensation, and (iii) Specialty financial, which includes risk management insurance programs for leasing and financing institutions (including collateral and mortgage protection insurance), surety and fidelity products and trade credit insurance. AFG’s annuity business markets traditional fixed and fixed-indexed annuities in the retail, financial institutions and education markets. AFG’s reportable segments and their components were determined based primarily upon similar economic characteristics, products and services.

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

	Three months ended March 31,
	2013		2012
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	293	$	263
Specialty casualty	259		220
Specialty financial	116		103
Other specialty	19		17
Total premiums earned	687		603
Net investment income	66		70
Other income	3		3
Total property and casualty insurance	756		676
Annuity:
Net investment income	248		228
Other income	14		13
Total annuity	262		241
Run-off long-term care and life	50		47
Medicare supplement and critical illness (a)	—		80
Other	23		(1		)
Total revenues before realized gains	1,091		1,043
Realized gains on securities	57		44
Total revenues	$	1,148	$	1,087

Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	10		$	27
Specialty casualty	19			4
Specialty financial	13			16
Other specialty	6			1
Other lines, primarily A&E charges	(5		)	—
Total underwriting	43			48
Investment and other income, net	56			55
Total property and casualty insurance	99			103
Annuity	76			60
Run-off long-term care and life	(1		)	1
Medicare supplement and critical illness (a)	—			6
Other (b)	(56		)	(68		)
Total earnings before realized gains and income taxes	118			102
Realized gains on securities	57			44
Total earnings before income taxes	$	175		$	146

(a) Sold in August 2012.

(b) Includes holding company expenses and $11 million and $28 million in losses of managed investment entities attributable to noncontrolling interests for the first quarter of 2013 and 2012, respectively.