XML 35 R13.htm IDEA: XBRL DOCUMENT v3.22.0.1
Segments of Operations
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segments of Operations Segments of Operations
Subsequent to the sale of its annuity operations, see Note B — Discontinued Operations,” AFG manages its business as two segments: Property and casualty insurance and Other, which includes holding company assets, costs and operations attributable to the noncontrolling interests of the managed investment entities.

AFG reports its property and casualty insurance business in the following Specialty sub-segments: (i) Property and transportation, which includes physical damage and liability coverage for buses and trucks and other specialty transportation niches, inland and ocean marine, agricultural-related products and other commercial property coverages, (ii) Specialty casualty, which includes primarily excess and surplus, executive and professional liability, general liability, umbrella and excess liability, specialty coverages in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance, and (iii) Specialty financial, which includes risk management insurance programs for lending and leasing institutions (including equipment leasing and collateral and lender-placed mortgage property insurance), fidelity and surety products and trade credit insurance. Premiums and underwriting profit included under Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty sub-segments and amortization of deferred gains on retroactive reinsurance transactions related to the sales of businesses in prior years. AFG’s reportable segments and their components were determined based primarily upon similar economic characteristics, products and services.

As discussed in Note C — “Acquisitions and Sale of Businesses,” AFG initiated actions to exit the Lloyd’s of London insurance market, which included placing its Lloyd’s subsidiaries including its Lloyd’s Managing Agency, Neon Underwriting Ltd., into run-off in December 2019. Beginning with the first quarter of 2020, the results for AFG’s Specialty casualty sub-segment exclude the run-off operations of Neon (“Neon exited lines”). AFG completed the sale of Neon in December 2020.

Sales of property and casualty insurance outside of the United States represented 4% of AFG’s revenues in 2021, 5% in 2020 and 7% in 2019. Approximately one-half and two-thirds of these 2020 and 2019 sales, respectively, were through the Neon Lloyd’s of London business.
The following tables (in millions) show AFG’s assets, revenues and earnings before income taxes by segment and sub-segment.
20212020
Assets
Property and casualty insurance (a)$21,312 $19,620 
Other7,619 6,205 
Total assets of continuing operations28,931 25,825 
Assets of discontinued annuity operations— 47,885 
Total assets$28,931 $73,710 

202120202019
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation$2,144 $1,871 $1,828 
Specialty casualty2,408 2,235 2,597 
Specialty financial642 613 610 
Other specialty210 180 150 
Other lines (b)— 200 — 
Total premiums earned5,404 5,099 5,185 
Net investment income (c)663 399 472 
Other income27 8 11 
Total property and casualty insurance6,094 5,506 5,668 
Other293 266 353 
Real estate-related entities (d)51 49 37 
Total revenues before realized gains (losses)6,438 5,821 6,058 
Realized gains (losses) on securities110 (75)155 
Realized gains on subsidiaries4 23 — 
Total revenues$6,552 $5,769 $6,213 
(a)Not allocable to sub-segments.
(b)Represents premiums earned in the Neon exited lines during 2020. Neon’s $384 million in earned premiums during 2019 are included in the Specialty casualty sub-segment.
(c)Includes a loss of $5 million in the Neon exited lines in 2020 (primarily from the change in fair value of equity securities).
(d)Represents investment income from the real estate and real estate-related entities acquired from the discontinued annuity operations while they were held by those operations. Subsequent to the sale of the annuity group, this income is included in the segment of the acquirer.
202120202019
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation$279 $181 $79 
Specialty casualty377 223 175 
Specialty financial96 50 92 
Other specialty(15)(28)(21)
Other lines (a)(4)(202)(113)
Total underwriting733 224 212 
Investment and other income, net (b)657 360 437 
Total property and casualty insurance1,390 584 649 
Other (c)(220)(215)(196)
Real estate-related entities (d)51 22 26 
Total earnings before realized gains (losses) and income taxes1,221 391 479 
Realized gains (losses) on securities110 (75)155 
Realized gains on subsidiaries4 23 — 
Total earnings before income taxes$1,335 $339 $634 
(a)Includes an underwriting loss of $135 million in 2020 in the Neon exited lines. Neon’s $36 million underwriting loss in 2019 is included in the Specialty casualty sub-segment. Also includes special charges to increase asbestos and environmental (“A&E”) reserves of $47 million in 2020 and $18 million in 2019, and a $76 million charge in 2019 related to the Neon exited lines.
(b)Includes $10 million in 2020 in net expenses from the Neon exited lines, before noncontrolling interest.
(c)Includes holding company interest and expenses, including losses on retirement of debt of $5 million in both 2020 and 2019, respectively, and special charges to increase A&E reserves related to AFG’s former railroad and manufacturing operations ($21 million in 2020 and $11 million in 2019).
(d)Represents investment income (net of DAC) from the real estate and real estate-related entities acquired from the discontinued annuity operations while they were held by those operations. Subsequent to the sale of the annuity group, this income is included in the segment of the acquirer.