Derivatives (Tables)

3 Months Ended

Mar. 31, 2018

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):

		March 31, 2018				December 31, 2017
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	111	$	—	$	105	$	—
Public company warrants	Equity securities	3		—		4		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		2,549		—		2,542
Equity index call options	Equity index call options	591		—		701		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		3		—		4
		$	705	$	2,552	$	810	$	2,546

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 first three months of 2018 and 2017 (in millions):

		Three months ended March 31,
Derivative	Statement of Earnings Line	2018			2017
MBS with embedded derivatives	Realized gains on securities	$	(4	)	$	—
Public company warrants	Realized gains on securities	(1		)	—
Fixed-indexed annuities (embedded derivative)	Annuity benefits	63			(147		)
Equity index call options	Annuity benefits	(38		)	141
Reinsurance contract (embedded derivative)	Net investment income	1			(1		)
		$	21		$	(7	)