Segments of Operations (Tables)

9 Months Ended

Sep. 30, 2015

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,
	2015			2014		2015			2014
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	517		$	504	$	1,157		$	1,129
Specialty casualty	503			486		1,496			1,266
Specialty financial	131			115		380			348
Other specialty	22			27		71			74
Total premiums earned	1,173			1,132		3,104			2,817
Net investment income	83			76		245			219
Other income (*)	2			4		61			8
Total property and casualty insurance	1,258			1,212		3,410			3,044
Annuity:
Net investment income	317			287		915			851
Other income	22			20		68			57
Total annuity	339			307		983			908
Run-off long-term care and life	49			48		144			147
Other	49			1		137			41
Total revenues before realized gains (losses)	1,695			1,568		4,674			4,140
Realized gains (losses) on securities	(16		)	13		2			44
Realized gain (loss) on subsidiaries	5			—		(157		)	—
Total revenues	$	1,684		$	1,581	$	4,519		$	4,184


(*)	Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015.



	Three months ended September 30,						Nine months ended September 30,
	2015			2014			2015			2014
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	20		$	11		$	14		$	(1	)
Specialty casualty	31			32			96			100
Specialty financial	26			21			72			46
Other specialty	7			6			13			13
Other lines (a)	(69		)	(24		)	(70		)	(25		)
Total underwriting	15			46			125			133
Investment and other income, net (b)	75			64			272			180
Total property and casualty insurance	90			110			397			313
Annuity	67			86			230			243
Run-off long-term care and life	6			1			14			(3		)
Other (c)	(53		)	(65		)	(131		)	(161		)
Total earnings before realized gains (losses) and income taxes	110			132			510			392
Realized gains (losses) on securities	(16		)	13			2			44
Realized gain (loss) on subsidiaries	5			—			(157		)	—
Total earnings before income taxes	$	99		$	145		$	355		$	436


(a)	Includes special charges of $67 million and $24 million in the third quarter of 2015 and 2014, respectively, to increase asbestos and environmental (“A&E”) reserves.


(b)	Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015.

(c)

Primarily holding company expenses, including a $4 million loss on retirement of debt in the third quarter of 2015 and special charges of $12 million and $6 million in the third quarters of 2015 and 2014, respectively, to increase A&E reserves related to AFG’s former railroad and manufacturing operations. Also includes losses of managed investment entities attributable to noncontrolling interest of $29 million for the third quarter and $47 million for the first nine months of 2014. Following the adoption of new guidance in the first quarter of 2015, there are no longer earnings (losses) of managed investment entities that are attributable to noncontrolling interests. See Note A — “Accounting Policies — Managed Investment Entities.”