Segments of Operations

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segments of Operations

Segments of Operations

AFG manages its business as four segments: (i) Property and casualty insurance, (ii) Annuity, (iii) Run-off long-term care and life and (iv) Other, which includes holding company costs and the 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, professional liability, umbrella and excess liability, specialty coverage

in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance, 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. Premiums and underwriting profit included under Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty sub-segments and amortization of deferred gains on retroactive reinsurance transactions related to the sales of businesses in prior years. 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. The following tables (in millions) show AFG’s revenues and earnings before income taxes by segment and sub-segment.

	Three months ended March 31,
	2015			2014
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	313		$	301
Specialty casualty	490			313
Specialty financial	120			117
Other specialty	23			23
Total premiums earned	946			754
Net investment income	79			67
Other income	6			2
Total property and casualty insurance	1,031			823
Annuity:
Net investment income	292			275
Other income	24			18
Total annuity	316			293
Run-off long-term care and life	46			51
Other	44			25
Total revenues before realized gains (loss)	1,437			1,192
Realized gains on securities	19			19
Realized loss on subsidiaries	(162		)	—
Total revenues	$	1,294		$	1,211

	Three months ended March 31,
	2015			2014
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	7		$	6
Specialty casualty	28			38
Specialty financial	22			10
Other specialty	3			5
Other lines	—			(1		)
Total underwriting	60			58
Investment and other income, net	73			54
Total property and casualty insurance	133			112
Annuity	75			73
Run-off long-term care and life	4			(2		)
Other (*)	(39		)	(41		)
Total earnings before realized gains (loss) and income taxes	173			142
Realized gains on securities	19			19
Realized loss on subsidiaries	(162		)	—
Total earnings before income taxes	$	30		$	161

(*) Includes holding company expenses. Also includes earnings of managed investment entities attributable to noncontrolling interest of less than $1 million for the first three months of 2014. Following the adoption of new guidance in the first quarter of 2015, there are no longer earnings of managed investment entities that are attributable to noncontrolling interests. See Note A — “Accounting Policies — Managed Investment Entities.”