Quarterly Operating Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

The following are quarterly results of consolidated operations for the two years ended December 31, 2020 (in millions, except per share amounts). Quarterly earnings per share do not add to year-to-date amounts due to changes in shares outstanding.


	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Total Year
2020
Revenues	$	1,275	$	1,951	$	2,060	$	2,623	$	7,909
Net earnings (loss), including noncontrolling interests	(304)		167		164		694		721
Net earnings (loss) attributable to shareholders	(301)		177		164		692		732
Earnings (loss) attributable to shareholders per Common Share:
Basic	$	(3.34)	$	1.98	$	1.86	$	7.99	$	8.25
Diluted	(3.34)		1.97		1.86		7.93		8.20
Average number of Common Shares:
Basic	90.3		89.7		88.2		86.6		88.7
Diluted	90.3		90.0		88.5		87.2		89.2
2019
Revenues	$	2,024	$	1,960	$	2,123	$	2,130	$	8,237
Net earnings (losses), including noncontrolling interests	326		209		143		191		869
Net earnings (losses) attributable to shareholders	329		210		147		211		897
Earnings (losses) attributable to shareholders per Common Share:
Basic	$	3.68	$	2.34	$	1.64	$	2.33	$	9.98
Diluted	3.63		2.31		1.62		2.31		9.85
Average number of Common Shares:
Basic	89.4		89.7		90.0		90.2		89.9
Diluted	90.7		91.0		91.1		91.3		91.0

Quarterly information on realized gains (losses)

Pretax realized gains (losses) on securities were as follows (in millions):


	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Total Year
2020 — change in fair value of equity securities	$	(535)	$	202	$	30	$	207	$	(96)
2020 — other realized gains (losses)	(16)		2		15		384		385
2019 — change in fair value of equity securities	182		44		(15)		67		278
2019 — other realized gains (losses)	2		12		(3)		(2)		9

Quarterly Information on Net Investment Income

Net investment income, which includes mark-to-market income/(losses) on alternative investments (partnerships and similar investments), was as follows (in millions):


	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Total Year
2020 — net investment income before alternative investments	$	511	$	520	$	511	$	465	$	2,007
2020 — alternative investments	33		(52)		61		83		125
2019 — net investment income before alternative investments	516		531		531		545		2,123
2019 — alternative investments	26		49		57		48		180

Quarterly information on the impact of items on fair value accounting for annuities

The impact of unlocking, changes in the fair value of derivatives related to FIAs, and other impacts of changes in the stock market and interest rates on the accounting for FIAs over or under the cost of the equity index options purchased to mitigate the risk in the index-based component of those FIAs, and beginning with the fourth quarter of 2020, the impact of the block reinsurance transaction entered into in October 2020 were as follows, net of the related acceleration/deceleration of the amortization of deferred policy acquisition costs and deferred sales inducements (in millions):


	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Total Year
2020	$	(38)	$	(59)	$	(43)	$	(48)	$	(188)
2019	(11)		(33)		(27)		24		(47)

Quarterly information on favorable (adverse) development on unpaid loss and loss adjustment expenses

Favorable prior year development of AFG’s liability for property and casualty losses and loss adjustment expenses (”LAE”) was as follows (in millions):


	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Total Year
2020	$	42	$	77	$	—	$	8	$	127
2019	45		41		12		45		143

Quarterly information on catastrophe losses

AFG’s property and casualty operations recorded catastrophe losses, including reinstatement premiums, as follows (in millions):


	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Total Year
2020	$	(9)	$	(26)	$	(57)	$	(38)	$	(130)
2019	(12)		(12)		(22)		(15)		(61)