Segments of Operations (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

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

	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	504	$	517	$	1,129	$	1,111
Specialty casualty	486		289		1,266		825
Specialty financial	115		121		348		350
Other specialty	27		22		74		59
Total premiums earned	1,132		949		2,817		2,345
Net investment income	76		65		219		196
Other income	4		1		8		10
Total property and casualty insurance	1,212		1,015		3,044		2,551
Annuity:
Net investment income	287		259		851		764
Other income	20		17		57		46
Total annuity	307		276		908		810
Run-off long-term care and life	48		50		147		147
Other	1		46		41		68
Total revenues before realized gains	1,568		1,387		4,140		3,576
Realized gains on securities	13		56		44		154
Total revenues	$	1,581	$	1,443	$	4,184	$	3,730

	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	11		$	16		$	(1	)	$	(5	)
Specialty casualty	32			19			100			70
Specialty financial	21			22			46			50
Other specialty	6			5			13			16
Other lines (a)	(24		)	(54		)	(25		)	(61		)
Total underwriting	46			8			133			70
Investment and other income, net	64			53			180			169
Total property and casualty insurance	110			61			313			239
Annuity (b)	86			78			243			231
Run-off long-term care and life	1			(4		)	(3		)	(7		)
Other (c)	(65		)	(49		)	(161		)	(174		)
Total earnings before realized gains and income taxes	132			86			392			289
Realized gains on securities	13			56			44			154
Total earnings before income taxes	$	145		$	142		$	436		$	443

(a) Includes special charges of $24 million and $54 million in the third quarter of 2014 and 2013, respectively, to increase asbestos and environmental (“A&E”) reserves.

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

(c) Includes holding company expenses and earnings (losses) of managed investment entities attributable to noncontrolling interest of ($29) million and $12 million for the third quarter and ($47) million and ($30) million for the first nine months of 2014 and 2013, respectively. Holding company expenses includes special charges totaling $6 million in the third quarter of 2014 and $22 million in the third quarter of 2013 to increase A&E reserves related to AFG’s former railroad and manufacturing operations.