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Shareholders' Equity (Tables)
 9 Months Ended
Sep. 30, 2015
Stockholders' Equity Note [Abstract]  
Components of accumulated other comprehensive income (loss)
The progression of the components of accumulated other comprehensive income follows (in millions): 
  
 
 
Other Comprehensive Income
 
 
 
  
AOCI
Beginning
Balance
 
Pretax
 
Tax
 
Net
of
tax
 
Attributable to
noncontrolling
interests
 
Attributable to
shareholders
 
AOCI
Ending
Balance
 
Quarter ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains (losses) on securities arising during the period
 
 
$
(171
)
 
$
61

 
$
(110
)
 
$
3

 
$
(107
)
 


 
Reclassification adjustment for realized (gains) losses included in net earnings (a)
 
 
16

 
(6
)
 
10

 
(1
)
 
9

 


 
Total net unrealized gains (losses) on securities (b)
$
587

 
(155
)
 
55

 
(100
)
 
2

 
(98
)
 
$
489

 
Net unrealized gains on cash flow hedges
—

 
3

 
(1
)
 
2

 
—

 
2

 
2

 
Foreign currency translation adjustments
(16
)
 
(5
)
 
(2
)
 
(7
)
 
—

 
(7
)
 
(23
)
 
Pension and other postretirement plans adjustments
(8
)
 
1

 
—

 
1

 
—

 
1

 
(7
)
 
Total
$
563

 
$
(156
)
 
$
52

 
$
(104
)
 
$
2

 
$
(102
)
 
$
461

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains (losses) on securities arising during the period
 
 
$
(111
)
 
$
38

 
$
(73
)
 
$
2

 
$
(71
)
 
 
 
Reclassification adjustment for realized (gains) losses included in net earnings (a)
 
 
(14
)
 
6

 
(8
)
 
—

 
(8
)
 
 
 
Total net unrealized gains (losses) on securities
$
805

 
(125
)
 
44

 
(81
)
 
2

 
(79
)
 
$
726

 
Foreign currency translation adjustments
(2
)
 
(2
)
 
—

 
(2
)
 
—

 
(2
)
 
(4
)
 
Pension and other postretirement plans adjustments
(4
)
 
—

 
—

 
—

 
—

 
—

 
(4
)
 
Total
$
799

 
$
(127
)
 
$
44

 
$
(83
)
 
$
2

 
$
(81
)
 
$
718

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains (losses) on securities arising during the period
 
 
$
(394
)
 
$
139

 
$
(255
)
 
$
5

 
$
(250
)
 


 
Reclassification adjustment for realized (gains) losses included in net earnings (a)
 
 
(4
)
 
1

 
(3
)
 
(1
)
 
(4
)
 


 
Total net unrealized gains (losses) on securities (b)
$
743

 
(398
)
 
140

 
(258
)
 
4

 
(254
)
 
$
489

 
Net unrealized gains on cash flow hedges
—

 
3

 
(1
)
 
2

 
—

 
2

 
2

 
Foreign currency translation adjustments
(8
)
 
(11
)
 
(4
)
 
(15
)
 
—

 
(15
)
 
(23
)
 
Pension and other postretirement plans adjustments
(8
)
 
1

 
—

 
1

 
—

 
1

 
(7
)
 
Total
$
727

 
$
(405
)
 
$
135

 
$
(270
)
 
$
4

 
$
(266
)
 
$
461

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains (losses) on securities arising during the period
 
 
$
300

 
$
(106
)
 
$
194

 
$
(4
)
 
$
190

 
 
 
Reclassification adjustment for realized (gains) losses included in net earnings (a)
 
 
(44
)
 
16

 
(28
)
 
1

 
(27
)
 
 
 
Total net unrealized gains on securities
$
563

 
256

 
(90
)
 
166

 
(3
)
 
163

 
$
726

 
Foreign currency translation adjustments
1

 
(5
)
 
—

 
(5
)
 
—

 
(5
)
 
(4
)
 
Pension and other postretirement plans adjustments
(4
)
 
—

 
—

 
—

 
—

 
—

 
(4
)
 
Total
$
560

 
$
251

 
$
(90
)
 
$
161

 
$
(3
)
 
$
158

 
$
718

 
 
(a)
The reclassification adjustment out of net unrealized gains on securities affected the following lines in AFG’s Consolidated Statement of Earnings:
 
OCI component
 
Affected line in the Consolidated Statement of Earnings
 
 
Pretax
 
Realized gains (losses) on securities
 
 
Tax
 
Provision for income taxes
 
 
Attributable to noncontrolling interests
 
Net earnings (loss) attributable to noncontrolling interests
 


(b)
Includes net unrealized gains of $53 million at September 30, 2015, $57 million at June 30, 2015 and $58 million at December 31, 2014 related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.
Assumptions used in estimating weighted average fair value of options on grant date
 
Nine months ended September 30,
 
2015
 
2014
Exercise price
$
63.15

 
$
56.47

Expected dividend yield
1.6
%
 
1.6
%
Expected volatility
25
%
 
26
%
Expected term (in years)
7.25

 
7.25

Risk-free rate
1.88
%
 
2.20
%
 
 
 
 
Grant date fair value
$
15.29

 
$
14.66