Derivatives (Tables)

6 Months Ended

Jun. 30, 2014

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, 2014				December 31, 2013
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	159	$	—	$	140	$	—
Public company warrants	Equity securities	17		—		19		—
Interest rate swaptions	Other investments	—		—		2		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		1,026		—		804
Equity index call options	Other investments	313		—		272		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		13		—		10
		$	489	$	1,039	$	433	$	814

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 2014 and 2013 (in millions):

		Three months ended June 30,						Six months ended June 30,
Derivative	Statement of Earnings Line	2014			2013			2014			2013
MBS with embedded derivatives	Realized gains on securities	$	4		$	(3	)	$	7		$	(1	)
Public company warrants	Realized gains on securities	—			(1		)	(2		)	1
Interest rate swaptions	Realized gains on securities	(1		)	1			(2		)	1
Fixed-indexed annuities (embedded derivative)	Annuity benefits	(78		)	3			(132		)	(77		)
Equity index call options	Annuity benefits	63			16			93			93
Reinsurance contracts (embedded derivative)	Net investment income	(1		)	4			(3		)	5
		$	(13	)	$	20		$	(39	)	$	22