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Segments of Operations
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segments of Operations 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 annuity segments, 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 and trucks, inland and ocean marine, agricultural-related products and other commercial property coverages, (ii) Specialty casualty, which includes primarily excess and surplus, executive and professional liability, general 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), fidelity and surety 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 and 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.

As discussed in Note B — “Acquisitions and Sale of Businesses,” AFG initiated actions to exit the Lloyd’s of London insurance market, which included placing its Lloyd’s subsidiaries including its Lloyd’s Managing Agency, Neon Underwriting Ltd., into run-off in December 2019. Beginning prospectively with the first quarter of 2020, the results for AFG’s Specialty casualty sub-segment exclude the run-off operations of Neon (“Neon exited lines”).

The following tables (in millions) show AFG’s revenues and earnings before income taxes by segment and sub-segment.
Three months ended September 30,Nine months ended September 30,
2020201920202019
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation$574 $583 $1,350 $1,323 
Specialty casualty560 658 1,663 1,921 
Specialty financial155 161 455 458 
Other specialty50 40 132 113 
Other lines (a)42 — 174 — 
Total premiums earned1,381 1,442 3,774 3,815 
Net investment income (b)112 124 277 352 
Other income— 5 8 10 
Total property and casualty insurance1,493 1,571 4,059 4,177 
Annuity:
Net investment income464 448 1,270 1,334 
Other income30 32 95 90 
Total annuity494 480 1,365 1,424 
Other58 90 194 284 
Total revenues before realized gains (losses)2,045 2,141 5,618 5,885 
Realized gains (losses) on securities45 (18)(302)222 
Realized losses on subsidiaries(30)— (30)— 
Total revenues$2,060 $2,123 $5,286 $6,107 
(a)Represents premiums earned in the Neon exited lines during the third quarter and first nine months of 2020. Neon’s $97 million and $274 million in earned premiums during the third quarter and first nine months of 2019, respectively, are included in the Specialty casualty sub-segment.
(b)Includes income of $1 million for the third quarter of 2020 and a loss of $5 million in the Neon exited lines in the first nine months of 2020 (primarily from the change in fair value of equity securities).
Three months ended September 30,Nine months ended September 30,
2020201920202019
Earnings (Loss) Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation$47 $38 $107 $81 
Specialty casualty53 23 132 106 
Specialty financial13 26 30 60 
Other specialty(9)1 (22)(11)
Other lines (a)(86)(34)(133)(36)
Total underwriting18 54 114 200 
Investment and other income, net (b)100 118 249 328 
Total property and casualty insurance118 172 363 528 
Annuity78 73 90 234 
Other (c)(77)(50)(157)(135)
Total earnings before realized gains (losses) and income taxes
119 195 296 627 
Realized gains (losses) on securities45 (18)(302)222 
Realized losses on subsidiaries(30)— (30)— 
Total earnings (loss) before income taxes$134 $177 $(36)$849 
(a)Includes an underwriting loss of $38 million in the third quarter of 2020 and $82 million in the first nine months of 2020 in the Neon exited lines. Neon’s $19 million and $33 million underwriting losses in the third quarter and first nine months of 2019, respectively, are included in the Specialty casualty sub-segment. Also includes special charges of $47 million and $18 million in the third quarter of 2020 and 2019, respectively, to increase asbestos and environmental (“A&E”) reserves.
(b)Includes $2 million and $10 million in the third quarter and first nine months of 2020, respectively, in net expenses from the Neon exited lines, before noncontrolling interest.
(c)Includes holding company interest and expenses, including special charges of $21 million and $11 million in the third quarter of 2020 and 2019, respectively, to increase A&E reserves related to AFG’s former railroad and manufacturing operations. Also includes the results of AFG’s run-off life and long-term care businesses, including a $4 million loss recognition charge recorded in the run-off long-term care business in September 2020.