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Derivatives (Tables)
 9 Months Ended
Sep. 30, 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):
 
 
 
 
September 30, 2018
 
December 31, 2017
Derivative
 
Balance Sheet Line
 
Asset
 
Liability
 
Asset
 
Liability
MBS with embedded derivatives
 
Fixed maturities
 
$
110

 
$
—

 
$
105

 
$
—

Public company warrants
 
Equity securities
 
3

 
—

 
4

 
—

Fixed-indexed and variable-indexed annuities (embedded derivative)
 
Annuity benefits accumulated
 
—

 
3,105

 
—

 
2,542

Equity index call options
 
Equity index call options
 
759

 
—

 
701

 
—

Equity index put options
 
Other liabilities
 
—

 
—

 
—

 
—

Reinsurance contracts (embedded derivative)
 
Other liabilities
 
—

 
2

 
—

 
4

 
 
 
 
$
872

 
$
3,107

 
$
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 gains (losses) included in AFG’s Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting for the third quarter and first nine months of 2018 and 2017 (in millions): 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
Derivative
 
Statement of Earnings Line
 
2018
 
2017
 
2018
 
2017
MBS with embedded derivatives
 
Realized gains (losses) on securities
 
$
(3
)
 
$
—

 
$
(8
)
 
$
(3
)
Public company warrants
 
Realized gains (losses) on securities
 
1

 
(1
)
 
—

 
(1
)
Fixed-indexed and variable-indexed annuities (embedded derivative) (*)
 
Annuity benefits
 
(223
)
 
(127
)
 
(286
)
 
(386
)
Equity index call options
 
Annuity benefits
 
219

 
116

 
271

 
338

Equity index put options
 
Annuity benefits
 
—

 
—

 
—

 
—

Reinsurance contract (embedded derivative)
 
Net investment income
 
—

 
—

 
2

 
(2
)
 
 
 
 
$
(6
)
 
$
(12
)
 
$
(21
)
 
$
(54
)


(*)
The change in fair value of the embedded derivative for the nine months ended September 30, 2018 includes a $44 million charge in the second quarter of 2018 related to the unlocking of actuarial assumptions.