Segments of Operations

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segments of Operations

Segments of Operations

AFG manages its business as four segments: (i) Property and casualty insurance, (ii) Annuity, (iii) Run-off long-term care and life and (iv) Other, which includes holding company costs and the operations attributable to the noncontrolling interests of the managed investment entities.

AFG reports its property and casualty insurance business in the following Specialty sub-segments: (i) Property and transportation, which includes physical damage and liability coverage for buses, trucks and recreational vehicles, inland and ocean marine, agricultural-related products and other property coverages, (ii) Specialty casualty, which includes primarily excess and surplus, general liability, executive liability, professional liability, umbrella and excess liability, specialty coverage in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance, and (iii) Specialty financial, which includes risk management insurance programs for leasing and financing institutions (including collateral and lender-placed mortgage property insurance), surety and fidelity products and trade credit insurance. Premiums and underwriting profit included under Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty sub-segments and amortization of deferred gains on retroactive reinsurance transactions related to the sales of businesses in prior years. AFG’s annuity business markets traditional fixed and fixed-indexed annuities in the retail, financial institutions and education markets. AFG’s reportable segments and their components were determined based primarily upon similar economic characteristics, products and services.

The following tables (in millions) show AFG’s revenues and earnings before income taxes by segment and sub-segment.

	Three months ended March 31,
	2016			2015
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	339		$	313
Specialty casualty	502			490
Specialty financial	132			120
Other specialty	25			23
Total premiums earned	998			946
Net investment income	83			79
Other income	3			6
Total property and casualty insurance	1,084			1,031
Annuity:
Net investment income	315			292
Other income	26			27
Total annuity	341			319
Run-off long-term care and life (a)	12			46
Other	56			44
Total revenues before realized gains (losses)	1,493			1,440
Realized gains (losses) on securities	(18		)	19
Realized losses on subsidiaries	—			(162		)
Total revenues	$	1,475		$	1,297

Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	32		$	7
Specialty casualty	29			28
Specialty financial	23			22
Other specialty	2			3
Other lines	1			—
Total underwriting	87			60
Investment and other income, net	75			73
Total property and casualty insurance	162			133
Annuity	53			75
Run-off long-term care and life (a)	(1		)	4
Other (b)	(40		)	(39		)
Total earnings before realized gains (losses) and income taxes	174			173
Realized gains (losses) on securities	(18		)	19
Realized losses on subsidiaries	—			(162		)
Total earnings before income taxes	$	156		$	30

(a) AFG sold substantially all of its run-off long-term care insurance business in December 2015.

(b) Includes holding company interest and expenses.