Derivatives (Tables)

12 Months Ended

Dec. 31, 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):

		December 31, 2013				December 31, 2012
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	140	$	—	$	110	$	—
Public company warrants	Equity securities	19		—		—		—
Interest rate swaptions	Other investments	2		—		1		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		804		—		465
Equity index call options	Other investments	272		—		132		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		10		—		17
		$	433	$	814	$	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 2013, 2012 and 2011 (in millions):

Derivative	Statement of Earnings Line	2013			2012			2011
MBS with embedded derivatives	Realized gains on securities	$	(3	)	$	5		$	—
Public company warrants	Realized gains on securities	3			—			—
Interest rate swaptions	Realized gains on securities	1			(4		)	(24		)
Fixed-indexed annuities (embedded derivative) (*)	Annuity benefits	(182		)	(57		)	(29		)
Equity index call options	Annuity benefits	210			66			(13		)
Reinsurance contracts (embedded derivative)	Net investment income	7			(6		)	(9		)
		$	36		$	4		$	(75	)

(*) The change in fair value of the embedded derivative includes gains related to unlocking of actuarial assumptions of $2 million in 2013 and $36 million in 2012.