Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2021

Stockholders' Equity Note [Abstract]

Components of accumulated other comprehensive income (loss)

The progression of the components of accumulated other comprehensive income follows (in millions):

			Other Comprehensive Income (Loss)
	AOCI Beginning Balance		Pretax		Tax		Net of tax		Attributable to noncontrolling interests		Attributable to shareholders		AOCI Ending Balance
Quarter ended June 30, 2021
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period			$	168	$	(35)	$	133	$	—	$	133
Reclassification adjustment for realized (gains) losses included in net earnings (*)			(9)		2		(7)		—		(7)
Reclassification for unrealized gains on securities of subsidiaries sold			(1,119)		235		(884)		—		(884)
Total net unrealized gains (losses) on securities	$	963	(960)		202		(758)		—		(758)		$	205
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding gains on cash flow hedges arising during the period			7		(1)		6		—		6
Reclassification adjustment for investment income included in net earnings from discontinued operations			(5)		1		(4)		—		(4)
Reclassification for unrealized gains on cash flow hedges of subsidiaries sold			(37)		8		(29)		—		(29)
Total net unrealized gains (losses) on cash flow hedges	27		(35)		8		(27)		—		(27)		—
Foreign currency translation adjustments	(16)		—		—		—		—		—		(16)
Pension and other postretirement plans (“OPRP”) adjustments:
Unrealized holding losses on pension and OPRP arising during the period			(1)		—		(1)		—		(1)
Reclassification adjustment for pension settlement loss included in other expense in net earnings			11		(2)		9		—		9
Total Pension and OPRP adjustments	(7)		10		(2)		8		—		8		1
Total	$	967	$	(985)	$	208	$	(777)	$	—	$	(777)	$	190
Quarter ended June 30, 2020
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period			$	1,293	$	(272)	$	1,021	$	—	$	1,021
Reclassification adjustment for realized (gains) losses included in net earnings (*)			(9)		2		(7)		—		(7)
Total net unrealized gains (losses) on securities	$	16	1,284		(270)		1,014		—		1,014		$	1,030
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding gains on cash flow hedges arising during the period			16		(4)		12		—		12
Reclassification adjustment for investment income included in net earnings from discontinued operations			(12)		3		(9)		—		(9)
Total net unrealized gains on cash flow hedges	44		4		(1)		3		—		3		47
Foreign currency translation adjustments	(21)		4		—		4		—		4		(17)
Pension and other postretirement plans adjustments	(7)		—		—		—		—		—		(7)
Total	$	32	$	1,292	$	(271)	$	1,021	$	—	$	1,021	$	1,053

			Other Comprehensive Income (Loss)
	AOCI Beginning Balance		Pretax		Tax		Net of tax		Attributable to noncontrolling interests		Attributable to shareholders		AOCI Ending Balance
Six months ended June 30, 2021
Net unrealized gains (losses) on securities:
Unrealized holding gains on securities arising during the period			$	(187)	$	39	$	(148)	$	—	$	(148)
Reclassification adjustment for realized (gains) losses included in net earnings (*)			(23)		5		(18)		—		(18)
Reclassification for unrealized gains of subsidiaries sold			(1,119)		235		(884)		—		(884)
Total net unrealized gains (losses) on securities	$	1,255	(1,329)		279		(1,050)		—		(1,050)		$	205
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding losses on cash flow hedges arising during the period			(1)		—		(1)		—		(1)
Reclassification adjustment for investment income included in net earnings from discontinued operations			(14)		3		(11)		—		(11)
Reclassification for unrealized gains on cash flow hedges of subsidiaries sold			(37)		8		(29)		—		(29)
Total net unrealized gains (losses) on cash flow hedges	41		(52)		11		(41)		—		(41)		—
Foreign currency translation adjustments	(16)		—		—		—		—		—		(16)
Pension and OPRP adjustments:
Unrealized holding losses on pension and OPRP arising during the period			(1)		—		(1)		—		(1)
Reclassification adjustment for pension settlement loss included in other expense in net earnings			11		(2)		9		—		9
Total Pension and OPRP adjustments	(7)		10		(2)		8		—		8		1
Total	$	1,273	$	(1,371)	$	288	$	(1,083)	$	—	$	(1,083)	$	190
Six months ended June 30, 2020
Net unrealized gains (losses) on securities:
Unrealized holding gains on securities arising during the period			$	198	$	(42)	$	156	$	—	$	156
Reclassification adjustment for realized (gains) losses included in net earnings (*)			15		(3)		12		—		12
Total net unrealized gains (losses) on securities	$	862	213		(45)		168		—		168		$	1,030
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding gains on cash flow hedges arising during the period			61		(13)		48		—		48
Reclassification adjustment for investment income included in net earnings from discontinued operations			(23)		5		(18)		—		(18)
Total net unrealized gains on cash flow hedges	17		38		(8)		30		—		30		47
Foreign currency translation adjustments	(9)		(6)		—		(6)		(2)		(8)		(17)
Pension and other postretirement plans adjustments	(7)		—		—		—		—		—		(7)
Total	$	863	$	245	$	(53)	$	192	$	(2)	$	190	$	1,053

(*)The reclassification adjustment out of net unrealized gains (losses) on securities affected the following lines in AFG’s Statement of Earnings:

OCI component	Affected line in the statement of earnings
Pretax - continuing operations	Realized gains (losses) on securities
Pretax - discontinued operations	Net earnings (loss) from discontinued operations
Tax - continuing operations	Provision (credit) for income taxes
Tax - discontinued operations	Net earnings (loss) from discontinued operations