Derivatives (Tables)

6 Months Ended

Jun. 30, 2016

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):

		June 30, 2016				December 31, 2015
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	127	$	—	$	130	$	—
Public company warrants	Equity securities	2		—		4		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		1,557		—		1,369
Equity index call options	Other investments	368		—		241		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		13		—		7
		$	497	$	1,570	$	375	$	1,376

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 AFG’s Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting for the second quarter and first six months of 2016 and 2015 (in millions):

		Three months ended June 30,						Six months ended June 30,
Derivative	Statement of Earnings Line	2016			2015			2016			2015
MBS with embedded derivatives	Realized gains on securities	$	3		$	(1	)	$	4		$	(3	)
Public company warrants	Realized gains on securities	1			—			(1		)	—
Fixed-indexed annuities (embedded derivative)	Annuity benefits	(62		)	19			(79		)	(31		)
Equity index call options	Annuity benefits	16			3			(24		)	23
Reinsurance contracts (embedded derivative)	Net investment income	(3		)	3			(6		)	3
		$	(45	)	$	24		$	(106	)	$	(8	)