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Investments (Tables)
 3 Months Ended
Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Available for sale fixed maturities
Available for sale fixed maturities at March 31, 2022 and December 31, 2021, consisted of the following (in millions):
Amortized
Cost		Allowance for Expected Credit LossesGross UnrealizedNet
Unrealized		Fair
Value
GainsLosses
March 31, 2022
Fixed maturities:
U.S. Government and government agencies
$216 $— $1 $(8)$(7)$209 
States, municipalities and political subdivisions
1,648 — 22 (13)9 1,657 
Foreign government
266 — — (9)(9)257 
Residential MBS
1,550 — 36 (55)(19)1,531 
Commercial MBS
100 — — — — 100 
Collateralized loan obligations
1,907 1 2 (14)(12)1,894 
Other asset-backed securities
2,725 5 5 (68)(63)2,657 
Corporate and other
2,542 1 16 (53)(37)2,504 
Total fixed maturities$10,954 $7 $82 $(220)$(138)$10,809 
December 31, 2021
Fixed maturities:
U.S. Government and government agencies
$216 $— $2 $(2)$— $216 
States, municipalities and political subdivisions
1,758 — 74 — 74 1,832 
Foreign government
248 — — (2)(2)246 
Residential MBS
915 — 48 (3)45 960 
Commercial MBS
102 — 2 — 2 104 
Collateralized loan obligations
1,643 1 3 (2)1 1,643 
Other asset-backed securities
2,677 7 17 (11)6 2,676 
Corporate and other
2,634 1 55 (8)47 2,680 
Total fixed maturities$10,193 $9 $201 $(28)$173 $10,357 
Equity securities reported at fair value
Equity securities which are reported at fair value with holding gains and losses recognized in net earnings, consisted of the following at March 31, 2022 and December 31, 2021 (in millions):
March 31, 2022December 31, 2021
Actual CostFair ValueActual CostFair Value
Fair Value over CostFair Valueover Cost
Common stocks$496 $578 $82 $491 $586 $95 
Perpetual preferred stocks407 444 37 403 456 53 
Total equity securities carried at fair value
$903 $1,022 $119 $894 $1,042 $148 
Investments accounted for using the equity method
Investments accounted for using the equity method held by AFG’s continuing operations, by category, carrying value and net investment income are as follows (in millions):
Net Investment Income
Carrying ValueThree months ended March 31,
March 31, 2022December 31, 202120222021
Real estate-related investments (*)$1,195 $1,130 $100 $54 
Private equity391 352 33 21 
Private debt33 35 — 3 
Total investments accounted for using the equity method$1,619 $1,517 $133 $78 
(*)Includes 88% with underlying investments in multi-family properties, 1% in single family properties and 11% in other property types as of both March 31, 2022 and December 31, 2021.
Available for sale securities in a continuous unrealized loss position
The following table shows gross unrealized losses (dollars in millions) on available for sale fixed maturities by investment category and length of time that individual securities have been in a continuous unrealized loss position at the following balance sheet dates.
Less Than Twelve MonthsTwelve Months or More
Unrealized
Loss		Fair
Value		Fair Value as
% of Cost		Unrealized
Loss		Fair
Value		Fair Value as
% of Cost
March 31, 2022
Fixed maturities:
U.S. Government and government agencies
$(3)$114 97 %$(5)$61 92 %
States, municipalities and political subdivisions
(12)444 97 %(1)12 92 %
Foreign government(9)241 96 %— — — %
Residential MBS(55)1,213 96 %— 11 100 %
Commercial MBS— 52 100 %— — — %
Collateralized loan obligations(12)1,302 99 %(2)78 98 %
Other asset-backed securities(63)2,053 97 %(5)82 94 %
Corporate and other(49)1,226 96 %(4)68 94 %
Total fixed maturities$(203)$6,645 97 %$(17)$312 95 %
December 31, 2021
Fixed maturities:
U.S. Government and government agencies
$(1)$92 99 %$(1)$22 96 %
States, municipalities and political subdivisions
— 9 100 %— 13 100 %
Foreign government(2)160 99 %— — — %
Residential MBS(3)419 99 %— 7 100 %
Commercial MBS— 34 100 %— — — %
Collateralized loan obligations(1)806 100 %(1)77 99 %
Other asset-backed securities(8)1,250 99 %(3)81 96 %
Corporate and other(8)500 98 %— 26 100 %
Total fixed maturities$(23)$3,270 99 %$(5)$226 98 %
Roll forward of allowance for credit losses on fixed maturity securities A progression of the allowance for expected credit losses on fixed maturity securities held by AFG’s continuing operations is shown below (in millions):
Structured
Securities (*)		Corporate and OtherTotal
Balance at January 1, 2022$8 $1 $9 
Initial allowance for purchased securities with credit deterioration— — — 
Provision for expected credit losses on securities with no previous allowance— — — 
Additions (reductions) to previously recognized expected credit losses(2)— (2)
Reductions due to sales or redemptions— — — 
Balance at March 31, 2022$6 $1 $7 
Balance at January 1, 2021$10 $2 $12 
Initial allowance for purchased securities with credit deterioration— — — 
Provision for expected credit losses on securities with no previous allowance— — — 
Additions (reductions) to previously recognized expected credit losses(1)— (1)
Reductions due to sales or redemptions— (1)(1)
Balance at March 31, 2021$9 $1 $10 
(*)Includes mortgage-backed securities, collateralized loan obligations and other asset-backed securities.
Available for sale fixed maturity securities by contractual maturity date
The table below sets forth the scheduled maturities of AFG’s available for sale fixed maturities as of March 31, 2022 (dollars in millions). Securities with sinking funds are reported at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers.
AmortizedFair Value
Cost, net (*)Amount%
Maturity
One year or less$923 $930 9 %
After one year through five years2,572 2,539 23 %
After five years through ten years825 816 8 %
After ten years351 342 3 %
4,671 4,627 43 %
Collateralized loan obligations and other ABS (average life of approximately 3 years)
4,626 4,551 42 %
MBS (average life of approximately 5 years)
1,650 1,631 15 %
Total$10,947 $10,809 100 %
(*)Amortized cost, net of allowance for expected credit losses.
Net investment income earned and investment expenses incurred The following table shows (in millions) investment income earned and investment expenses incurred in AFG’s continuing operations.
Three months ended March 31,
20222021
Investment income:
Fixed maturities$80 $72 
Equity securities:
Dividends7 8 
Change in fair value (*)7 26 
Equity in earnings of partnerships and similar investments
133 78 
Other7 6 
Gross investment income234 190 
Investment expenses(4)(2)
Net investment income$230 $188 
(*)Although the change in the fair value of the majority of AFG’s equity securities is recorded in realized gains (losses) on securities, AFG records holding gains and losses in net investment income on its portfolio of limited partnerships and similar investments that do not qualify for equity method accounting and certain other securities classified at purchase as “fair value through net investment income.”
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized gains (losses) and changes in unrealized appreciation (depreciation) from continuing operations included in AOCI related to fixed maturity securities are summarized as follows (in millions):
Three months ended March 31, 2022Three months ended March 31, 2021
Realized gains (losses)Realized gains (losses)
Before ImpairmentsImpairment AllowanceTotalChange in UnrealizedBefore ImpairmentsImpairment AllowanceTotalChange in Unrealized
Fixed maturities$(4)$2 $(2)$(311)$(1)$1 $— $(44)
Equity securities(13)— (13)— 77 — 77 — 
Mortgage loans and other investments
— — — — — — — — 
Total pretax(17)2 (15)(311)76 1 77 (44)
Tax effects3 — 3 66 (16)— (16)9 
Net of tax
$(14)$2 $(12)$(245)$60 $1 $61 $(35)
Holding gains (losses) on equity securities still held AFG recorded net holding gains (losses) on equity securities from continuing operations during the first three months of 2022 and 2021 on securities that were still owned at March 31, 2022 and March 31, 2021 as follows (in millions):
Three months ended March 31,
20222021
Included in realized gains (losses)$(13)$67 
Included in net investment income4 26 
$(9)$93 
Gross realized gains and losses on available for sale fixed maturity and equity security investments
Gross realized gains and losses (excluding changes in impairment allowance and mark-to-market of derivatives) on available for sale fixed maturity investment transactions from continuing operations consisted of the following (in millions):
Three months ended March 31,
20222021
Gross gains$1 $2 
Gross losses— (1)