Acquisitions and Sale of Businesses (Tables)

3 Months Ended

Mar. 31, 2015

The estimated impact of the third quarter sale of the run-off long-term care insurance business on AFG’s financial statements is shown below (in millions):



	March 31, 2015
Estimated sale proceeds (*)	$	14

Assets of businesses sold:
Cash and investments	$	1,397
Recoverables from reinsurers	603
Deferred policy acquisition costs	15
Other receivables	14
Other assets	7
Goodwill	2
Total assets	2,038
Liabilities of businesses sold:
Annuity benefits accumulated	270
Life, accident and health reserves	1,537
Other liabilities	27
Total liabilities	1,834
Reclassify net unrealized gain on marketable securities	28
Net assets of businesses sold	$	176

Pretax loss on subsidiaries	$	(162	)


(*)	Includes fair value of the potential additional consideration and is shown net of estimated expenses.

Revenues, costs and expenses, and earnings before income taxes for the subsidiaries to be sold were (in millions):



	Three months ended March 31,
	2015			2014
Life, accident and health net earned premiums:
Long-term care	$	17		$	19
Life operations	3			3
Net investment income	18			21
Realized gains (losses) on securities and other income	(2		)	1
Total revenues	36			44
Annuity benefits	2			2
Life, accident and health benefits:
Long-term care	21			29
Life operations	3			3
Annuity and supplemental insurance acquisition expenses	3			3
Other expenses	4			4
Total costs and expenses	33			41
Earnings before income taxes	$	3		$	3

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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