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Derivatives (Tables)
 9 Months Ended
Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives included in Balance Sheet at fair value The following derivatives that do not qualify for hedge accounting under GAAP are included in AFG’s Balance Sheet at fair value (in millions):
 September 30, 2020December 31, 2019
DerivativeBalance Sheet LineAssetLiabilityAssetLiability
MBS with embedded derivativesFixed maturities$172 $— $102 $— 
Public company warrantsEquity securities— — — — 
Fixed-indexed and variable-indexed annuities (embedded derivative)
Annuity benefits accumulated
— 3,657 — 3,730 
Equity index call optionsEquity index call options697 — 924 — 
Equity index put optionsOther liabilities— 4 — 1 
Reinsurance contracts (embedded derivative)Other liabilities— 4 — 4 
$869 $3,665 $1,026 $3,735 
Summary of gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives
The following table summarizes the gains (losses) included in AFG’s Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting for the third quarter and first nine months of 2020 and 2019 (in millions):
Three months ended September 30,Nine months ended September 30,
DerivativeStatement of Earnings Line2020201920202019
MBS with embedded derivatives
Realized gains (losses) on securities
$(5)$3 $2 $15 
Public company warrants
Realized gains (losses) on securities
— (1)— (1)
Fixed-indexed and variable-indexed annuities (embedded derivative) (*)
Annuity benefits(5)70 41 (643)
Equity index call optionsAnnuity benefits203 30 (42)544 
Equity index put options
Annuity benefits2 — 1 1 
Reinsurance contract (embedded derivative)
Net investment income1 — — (2)
$196 $102 $2 $(86)
(*)The change in fair value of the embedded derivative includes a favorable adjustment related to the unlocking of actuarial assumptions of $240 million in the third quarter of 2020 and $181 million in the third quarter of 2019.