Derivatives (Tables)

9 Months Ended

Sep. 30, 2015

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, 2015				December 31, 2014
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	162	$	—	$	158	$	—
Public company warrants	Equity securities	—		—		19		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		1,198		—		1,160
Equity index call options	Other investments	122		—		322		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		9		—		13
		$	284	$	1,207	$	499	$	1,173

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 2015 and 2014 (in millions):

		Three months ended September 30,						Nine months ended September 30,
Derivative	Statement of Earnings Line	2015			2014			2015			2014
MBS with embedded derivatives	Realized gains on securities	$	(4	)	$	—		$	(7	)	$	7
Public company warrants	Realized gains on securities	—			—			—			(2		)
Interest rate swaptions	Realized gains on securities	—			—			—			(2		)
Fixed-indexed annuities (embedded derivative)	Annuity benefits	130			(21		)	99			(153		)
Equity index call options	Annuity benefits	(167		)	19			(144		)	112
Reinsurance contracts (embedded derivative)	Net investment income	1			1			4			(2		)
		$	(40	)	$	(1	)	$	(48	)	$	(40	)