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Shareholders' Equity
 9 Months Ended
Sep. 30, 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		PretaxTaxNet
of
tax		Attributable to
noncontrolling
interests 		Attributable to
shareholders 		OtherAOCI
Ending
Balance
Quarter ended September 30, 2020
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period
$245 $(51)$194 $— $194 
Reclassification adjustment for realized (gains) losses included in net earnings (*)(15)3 (12)— (12)
Total net unrealized gains (losses) on securities
$1,030 230 (48)182 — 182 $— $1,212 
Net unrealized gains (losses) on cash flow hedges47 (7)1 (6)— (6)— 41 
Foreign currency translation adjustments(17)— — — — — 4 (13)
Pension and other postretirement plans adjustments
(7)— — — — — — (7)
Total
$1,053 $223 $(47)$176 $— $176 $4 $1,233 
Quarter ended September 30, 2019
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period
$136 $(29)$107 $— $107 
Reclassification adjustment for realized (gains) losses included in net earnings (*)1 — 1 — 1 
Total net unrealized gains (losses) on securities
$812 137 (29)108 — 108 $— $920 
Net unrealized gains on cash flow hedges18 9 (2)7 — 7 — 25 
Foreign currency translation adjustments(13)(6)(1)(7)(1)(8)— (21)
Pension and other postretirement plans adjustments
(8)1 — 1 — 1 — (7)
Total
$809 $141 $(32)$109 $(1)$108 $— $917 
Nine months ended September 30, 2020
Net unrealized gains (losses) on securities:
Unrealized holding gains on securities arising during the period
$443 $(93)$350 $— $350 
Reclassification adjustment for realized (gains) losses included in net earnings (*)— — — — — 
Total net unrealized gains (losses) on securities
$862 443 (93)350 — 350 $— $1,212 
Net unrealized gains on cash flow hedges
17 31 (7)24 — 24 — 41 
Foreign currency translation adjustments
(9)(6)— (6)(2)(8)4 (13)
Pension and other postretirement plans adjustments
(7)— — — — — — (7)
Total
$863 $468 $(100)$368 $(2)$366 $4 $1,233 
Nine months ended September 30, 2019
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period
$1,073 $(226)$847 $— $847 
Reclassification adjustment for realized (gains) losses included in net earnings (*)(13)3 (10)— (10)
Total net unrealized gains (losses) on securities
$83 1,060 (223)837 — 837 $— $920 
Net unrealized gains (losses) on cash flow hedges
(11)46 (10)36 — 36 — 25 
Foreign currency translation adjustments
(16)(3)— (3)(2)(5)— (21)
Pension and other postretirement plans adjustments
(8)1 — 1 — 1 — (7)
Total
$48 $1,104 $(233)$871 $(2)$869 $— $917 
(*)The reclassification adjustment out of net unrealized gains (losses) on securities affected the following lines in AFG’s Statement of Earnings:
OCI componentAffected line in the statement of earnings
PretaxRealized gains (losses) on securities
TaxProvision (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 nine 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 in both the third quarters of 2020 and 2019, and $15 million and $17 million in the first nine months of 2020 and 2019, respectively.