Segments of Operations

3 Months Ended

Mar. 31, 2022

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 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.

The following tables (in millions) show AFG’s revenues and earnings from continuing operations before income taxes by segment and sub-segment.

	Three months ended March 31,
	2022		2021
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	443	$	394
Specialty casualty	639		571
Specialty financial	163		157
Other specialty	57		51
Total premiums earned	1,302		1,173
Net investment income	223		159
Other income	4		4
Total property and casualty insurance	1,529		1,336
Other	74		67
Real estate-related entities (*)	—		29
Total revenues before realized gains (losses)	1,603		1,432
Realized gains (losses) on securities	(15)		77
Total revenues	$	1,588	$	1,509

(*)Represents investment income from the real estate and real estate-related entities acquired from AFG’s discontinued annuity operations while they were held by those operations. Subsequent to the sale of the annuity operations, this income is included in the segment of the acquirer.

	Three months ended March 31,
	2022		2021
Earnings From Continuing Operations Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	62	$	56
Specialty casualty	124		56
Specialty financial	29		25
Other specialty	(7)		(3)
Other lines	(1)		—
Total underwriting	207		134
Investment and other income, net	215		154
Total property and casualty insurance	422		288
Other (a)	(46)		(59)
Real estate-related entities (b)	—		29
Total earnings from continuing operations before realized gains (losses) and income taxes	376		258
Realized gains (losses) on securities	(15)		77
Total earnings from continuing operations before income taxes	$	361	$	335

(a)Includes holding company interest and expenses, including a $2 million loss on retirement of debt in the first three months of 2022.

(b)Represents investment income from the real estate and real estate-related entities acquired from AFG’s discontinued annuity operations while they were held by those operations. Subsequent to the sale of the annuity operations, this income is included in the segment of the acquirer.