Acquisitions and Sale of Businesses (Tables)

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Schedule of estimated fair values of assets acquired and liabilities assumed

The allocation of the purchase price is shown in the table below (in millions):

	April 1, 2014
Total purchase price			$	259
Tangible assets acquired:
Cash and cash equivalents	$	1,078
Fixed maturities, available for sale	92
Recoverables from reinsurers	116
Agents’ balances and premiums receivable	41
Deferred tax assets, net (a)	67
Other receivables	21
Other assets	11
Total tangible assets acquired			1,426
Liabilities acquired:
Unpaid losses and loss adjustment expenses	1,142
Unearned premiums	3
Payable to reinsurers	3
Other liabilities	66
Total liabilities acquired			1,214
Net tangible assets acquired, at fair value			212
Excess purchase price over net tangible assets acquired			$	47
Allocation of excess purchase price:
Intangible assets acquired (b)			$	47
Deferred tax on intangible assets acquired (a)			(16		)
Goodwill			16
			$	47

(a) AFG’s net deferred tax assets are included in Other assets in AFG’s Balance Sheet at December 31, 2015.

(b) Included in Other assets in AFG’s Balance Sheet.

Summarized financial information

The impact of the sale of the run-off long-term care insurance business is shown below (in millions):

	December 24, 2015
Net sale proceeds (*)				$	13
Assets of businesses sold:
Cash and investments	$	1,334
Recoverables from reinsurers	630
Deferred policy acquisition costs	16
Other receivables	16
Other assets	(4		)
Goodwill	2
Total assets				1,994
Liabilities of businesses sold:
Annuity benefits accumulated	261
Life, accident and health reserves	1,525
Other liabilities	7
Total liabilities				1,793
Reclassify net unrealized gain on marketable securities				22
Net assets of businesses sold				179
Loss on subsidiaries, pretax				(166		)
Tax benefit				58
Loss on subsidiaries, net of tax				$	(108	)

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

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

	Year ended December 31,
	2015			2014			2013
Life, accident and health net earned premiums:
Long-term care	$	73		$	74		$	76
Life operations	11			11			12
Net investment income	73			75			68
Realized gains (losses) on securities and other income	(11		)	(6		)	10
Total revenues	146			154			166
Annuity benefits	8			7			9
Life, accident and health benefits:
Long-term care	91			119			113
Life operations	11			11			12
Annuity and supplemental insurance acquisition expenses	12			11			14
Other expenses	16			14			12
Total costs and expenses	138			162			160
Earnings before income taxes	$	8		$	(8	)	$	6