Derivatives (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives included in Balance Sheet at fair value

The following derivatives that do not qualify for hedge accounting under GAAP are included in AFG’s Balance Sheet at fair value (in millions):

		September 30, 2014				December 31, 2013
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	161	$	—	$	140	$	—
Public company warrants	Equity securities	17		—		19		—
Interest rate swaptions	Other investments	—		—		2		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		1,085		—		804
Equity index call options	Other investments	288		—		272		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		12		—		10
		$	466	$	1,097	$	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 derivatives that do not qualify for hedge accounting for the third quarter and first nine months of 2014 and 2013 (in millions):

		Three months ended September 30,						Nine months ended September 30,
Derivative	Statement of Earnings Line	2014			2013			2014			2013
MBS with embedded derivatives	Realized gains on securities	$	—		$	1		$	7		$	—
Public company warrants	Realized gains on securities	—			—			(2		)	1
Interest rate swaptions	Realized gains on securities	—			—			(2		)	1
Fixed-indexed annuities (embedded derivative)	Annuity benefits	(21		)	(33		)	(153		)	(110		)
Equity index call options	Annuity benefits	19			32			112			125
Reinsurance contracts (embedded derivative)	Net investment income	1			2			(2		)	7
		$	(1	)	$	2		$	(40	)	$	24