Segments of Operations (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting Information, by Segment

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,
	2020		2019		2020		2019
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	574	$	583	$	1,350	$	1,323
Specialty casualty	560		658		1,663		1,921
Specialty financial	155		161		455		458
Other specialty	50		40		132		113
Other lines (a)	42		—		174		—
Total premiums earned	1,381		1,442		3,774		3,815
Net investment income (b)	112		124		277		352
Other income	—		5		8		10
Total property and casualty insurance	1,493		1,571		4,059		4,177
Annuity:
Net investment income	464		448		1,270		1,334
Other income	30		32		95		90
Total annuity	494		480		1,365		1,424
Other	58		90		194		284
Total revenues before realized gains (losses)	2,045		2,141		5,618		5,885
Realized gains (losses) on securities	45		(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,
	2020		2019		2020		2019
Earnings (Loss) Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	47	$	38	$	107	$	81
Specialty casualty	53		23		132		106
Specialty financial	13		26		30		60
Other specialty	(9)		1		(22)		(11)
Other lines (a)	(86)		(34)		(133)		(36)
Total underwriting	18		54		114		200
Investment and other income, net (b)	100		118		249		328
Total property and casualty insurance	118		172		363		528
Annuity	78		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 securities	45		(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.