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Shareholders' Equity
 3 Months Ended
Mar. 31, 2020
Stockholders' Equity Note [Abstract]  
Shareholders' Equity Shareholders’ Equity

AFG is authorized to issue 12.5 million shares of Voting Preferred Stock and 12.5 million shares of Nonvoting Preferred Stock, each without par value.

Accumulated Other Comprehensive Income, Net of Tax (“AOCI”)   Comprehensive income is defined as all changes in shareholders’ equity except those arising from transactions with shareholders. Comprehensive income includes net earnings and other comprehensive income, which consists primarily of changes in net unrealized gains or losses on available for sale securities.
The progression of the components of accumulated other comprehensive income follows (in millions):
 
 
 
Other Comprehensive Income (Loss)
 
 
 
AOCI
Beginning
Balance
 
Pretax
 
Tax
 
Net
of
tax
 
Attributable to
noncontrolling
interests
 
Attributable to
shareholders
 
AOCI
Ending
Balance
Three months ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding losses on securities arising during the period
 
 
$
(1,095
)
 
$
230

 
$
(865
)
 
$
—

 
$
(865
)
 


Reclassification adjustment for realized (gains) losses included in net earnings (*)
 
 
24

 
(5
)
 
19

 
—

 
19

 


Total net unrealized gains (losses) on securities
$
862

 
(1,071
)
 
225

 
(846
)
 
—

 
(846
)
 
$
16

Net unrealized gains on cash flow hedges
17

 
34

 
(7
)
 
27

 
—

 
27

 
44

Foreign currency translation adjustments
(9
)
 
(10
)
 
—

 
(10
)
 
(2
)
 
(12
)
 
(21
)
Pension and other postretirement plans adjustments
(7
)
 
—

 
—

 
—

 
—

 
—

 
(7
)
Total
$
863

 
$
(1,047
)
 
$
218

 
$
(829
)
 
$
(2
)
 
$
(831
)
 
$
32

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains on securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains on securities arising during the period
 
 
$
487

 
$
(103
)
 
$
384

 
$
—

 
$
384

 
 
Reclassification adjustment for realized (gains) losses included in net earnings (*)
 
 
(4
)
 
1

 
(3
)
 
—

 
(3
)
 
 
Total net unrealized gains on securities
$
83

 
483

 
(102
)
 
381

 
—

 
381

 
$
464

Net unrealized gains (losses) on cash flow hedges
(11
)
 
14

 
(3
)
 
11

 
—

 
11

 
—

Foreign currency translation adjustments
(16
)
 
4

 
—

 
4

 
—

 
4

 
(12
)
Pension and other postretirement plans adjustments
(8
)
 
—

 
—

 
—

 
—

 
—

 
(8
)
Total
$
48

 
$
501

 
$
(105
)
 
$
396

 
$
—

 
$
396

 
$
444


(*)    The reclassification adjustment out of net unrealized gains (losses) on securities affected the following lines in AFG’s Statement of Earnings:
 
OCI component
 
Affected line in the statement of earnings
 
 
Pretax
 
Realized gains (losses) on securities
 
 
Tax
 
Provision (credit) for income taxes
 


Stock Incentive Plans   Under AFG’s stock incentive plans, employees of AFG and its subsidiaries are eligible to receive equity awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units and stock awards. In the first three months of 2020, AFG issued 227,867 shares of restricted Common Stock (fair value of $104.15 per share) under the Stock Incentive Plan.

Total compensation expense related to stock incentive plans of AFG and its subsidiaries was $5 million and $6 million in the first three months of 2020 and 2019, respectively.