Derivatives (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives included in Balance Sheet at fair value

The following derivatives are included in AFG’s Balance Sheet at fair value (in millions):

		June 30, 2013				December 31, 2012
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	130	$	—	$	110	$	—
Public company warrants	Equity securities	15		—		—		—
Interest rate swaptions	Other investments	2		—		1		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		577		—		465
Equity index call options	Other investments	185		—		132		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		12		—		17
		$	332	$	589	$	243	$	482

Summary of gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives

The following table summarizes the gain (loss) included in the Statement of Earnings for changes in the fair value of these derivatives for the second quarter and first six months of 2013 and 2012 (in millions):

		Three months ended June 30,						Six months ended June 30,
Derivative	Statement of Earnings Line	2013			2012			2013			2012
MBS with embedded derivatives	Realized gains	$	(3	)	$	(1	)	$	(1	)	$	3
Public company warrants	Realized gains	(1		)	—			1			—
Interest rate swaptions	Realized gains	1			(3		)	1			(3		)
Fixed-indexed annuities (embedded derivative)	Annuity benefits	3			3			(77		)	(57		)
Equity index call options	Annuity benefits	16			(21		)	93			36
Reinsurance contracts (embedded derivative)	Investment income	4			(4		)	5			(3		)
		$	20		$	(26	)	$	22		$	(24	)