Segments of Operations

12 Months Ended

Dec. 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 assets and costs, and the assets and 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 lender-placed mortgage property 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.

Sales of property and casualty insurance outside of the United States represented 5% of AFG’s revenues in 2013, 2012 and 2011.

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

	2013		2012		2011
Assets
Property and casualty insurance (a)	$	11,717	$	12,163	$	11,740
Annuity	24,294		20,909		18,245
Run-off long-term care and life	2,408		2,304		1,785
Medicare supplement and critical illness (b)	—		—		359
Other	3,668		3,795		3,709
Total assets	$	42,087	$	39,171	$	35,838

Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	1,521		$	1,423	$	1,412
Specialty casualty	1,135			948		872
Specialty financial	469			405		408
Other specialty	79			71		67
Total premiums earned	3,204			2,847		2,759
Net investment income	263			275		291
Other income	15			24		26
Total property and casualty insurance	3,482			3,146		3,076
Annuity:
Net investment income	1,034			976		859
Other income	67			52		43
Total annuity	1,101			1,028		902
Run-off long-term care and life	194			191		190
Medicare supplement and critical illness (b)	—			212		325
Other	98			9		77
Total revenues before realized gains (losses)	4,875			4,586		4,570
Realized gains on securities	221			210		76
Realized gains (losses) on subsidiaries	(4		)	161		(3		)
Total revenues	$	5,092		$	4,957	$	4,643

(a)   Not allocable to sub-segments.

(b)   Sold in August 2012.

	2013			2012			2011
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	12		$	19		$	113
Specialty casualty	102			53			35
Specialty financial	67			44			65
Other specialty	25			15			18
Other lines (a)	(61		)	(44		)	(51		)
Total underwriting	145			87			180
Investment and other income, net	230			235			262
Total property and casualty insurance	375			322			442
Annuity (b)	323			256			188
Run-off long-term care and life (c)	(10		)	(157		)	—
Medicare supplement and critical illness (d)	—			28			34
Other (e)	(216		)	(283		)	(179		)
Total earnings before realized gains (losses) and income taxes	472			166			485
Realized gains on securities	221			210			76
Realized gains (losses) on subsidiaries	(4		)	161			(3		)
Total earnings before income taxes	$	689		$	537		$	558

(a) Includes special charges to increase asbestos and environmental (“A&E”) reserves of $54 million, $31 million and $50 million in 2013, 2012 and 2011, respectively.

(b) Includes a $5 million charge in the second quarter of 2013 to cover expected assessments from state guaranty funds related to insolvency and liquidation of an unaffiliated life insurance company.

(c) Includes a loss recognition charge of $153 million in the fourth quarter of 2012.

(d) Sold in August 2012.

(e) Includes holding company expenses, special charges to increase A&E reserves ($22 million in 2013, $2 million in 2012 and $9 million in 2011) and losses of managed investment entities attributable to noncontrolling interests ($26 million in 2013, $98 million in 2012 and $24 million in 2011). Holding company expenses in 2012 also include an $8 million loss on retirement of debt and a $15 million charge for a labor matter related to AFG’s former railroad operations.