Segments of Operations

6 Months Ended

Jun. 30, 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 June 30,				Six months ended June 30,
	2022		2021		2022		2021
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	505	$	453	$	948	$	847
Specialty casualty	657		588		1,296		1,159
Specialty financial	171		157		334		314
Other specialty	60		52		117		103
Total premiums earned	1,393		1,250		2,695		2,423
Net investment income	156		143		379		302
Other income	6		1		10		5
Total property and casualty insurance	1,555		1,394		3,084		2,730
Other	77		68		151		135
Real estate-related entities (*)	—		22		—		51
Total revenues before realized gains (losses)	1,632		1,484		3,235		2,916
Realized gains (losses) on securities	(93)		43		(108)		120
Realized gain on subsidiaries	—		4		—		4
Total revenues	$	1,539	$	1,531	$	3,127	$	3,040

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

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Earnings From Continuing Operations Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	39	$	62	$	101	$	118
Specialty casualty	130		71		254		127
Specialty financial	37		21		66		46
Other specialty	(9)		(1)		(16)		(4)
Other lines	(1)		(1)		(2)		(1)
Total underwriting	196		152		403		286
Investment and other income, net	149		136		364		290
Total property and casualty insurance	345		288		767		576
Other (a)	(46)		(69)		(92)		(128)
Real estate-related entities (b)	—		22		—		51
Total earnings from continuing operations before realized gains (losses) and income taxes	299		241		675		499
Realized gains (losses) on securities	(93)		43		(108)		120
Realized gain on subsidiaries	—		4		—		4
Total earnings from continuing operations before income taxes	$	206	$	288	$	567	$	623

(a)Includes holding company interest and expenses, including losses of $9 million and $11 million on retirement of debt in the second quarter and first six months of 2022, respectively.

(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 the annuity operations. Subsequent to the sale of the annuity operations, income from these investments is included in the segment of the acquirer.