Segments of Operations

AFG manages its business as three segments: (i) Property and casualty insurance, (ii) Annuity and (iii) Other, which includes holding company costs, revenues and costs of AFG’s limited insurance operations outside of property and casualty insurance and annuities, and 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 commercial property coverages, (ii) Specialty casualty, which includes primarily excess and surplus, general liability, executive liability, professional liability, umbrella and excess liability, specialty coverages 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 lending and leasing institutions (including equipment leasing and 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 sells traditional fixed, fixed-indexed and variable-indexed annuities in the retail, financial institutions, broker-dealer and registered investment advisor 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,
	2019		2018
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	361	$	350
Specialty casualty	629		579
Specialty financial	146		149
Other specialty	37		29
Total premiums earned	1,173		1,107
Net investment income	104		100
Other income	3		2
Total property and casualty insurance	1,280		1,209
Annuity:
Net investment income	435		394
Other income	27		26
Total annuity	462		420
Other	98		83
Total revenues before realized gains (losses)	1,840		1,712
Realized gains (losses) on securities	184		(93		)
Total revenues	$	2,024	$	1,619



Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	39		$	33
Specialty casualty	36			41
Specialty financial	13			15
Other specialty	—			3
Other lines (*)	(1		)	(1		)
Total underwriting	87			91
Investment and other income, net	95			93
Total property and casualty insurance	182			184
Annuity	90			125
Other	(43		)	(42		)
Total earnings before realized gains (losses) and income taxes	229			267
Realized gains (losses) on securities	184			(93		)
Total earnings before income taxes	$	413		$	174


(*)	Includes holding company interest and expenses.