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Shareholders' Equity
 6 Months Ended
Jun. 30, 2022
Stockholders' Equity Note [Abstract]  
Shareholders' Equity Shareholders’ Equity
AFG is authorized to issue 12.5 million shares of Voting Preferred Stock and 12.5 million shares of Nonvoting Preferred Stock, each without par value.

Accumulated Other Comprehensive Income (Loss), Net of Tax (“AOCI”)   Comprehensive income is defined as all changes in shareholders’ equity except those arising from transactions with shareholders. Comprehensive income includes net earnings and other comprehensive income (loss), which consists primarily of changes in net unrealized gains or losses on available for sale fixed maturity securities.

The progression of the components of accumulated other comprehensive income (loss) follows (in millions):
Other Comprehensive Income (Loss)
AOCI Beginning BalancePretaxTaxNet of taxAOCI Ending Balance
Quarter ended June 30, 2022
Net unrealized gains (losses) on securities:
Unrealized holding losses on securities arising during the period$(286)$61 $(225)
Reclassification adjustment for realized (gains) losses included in net earnings (*)11 (3)8 
Total net unrealized losses on securities
$(109)(275)58 (217)$(326)
Total net unrealized losses on cash flow hedges
(4)(5)1 (4)(8)
Foreign currency translation adjustments(19)5 (1)4 (15)
Pension and other postretirement plans adjustments (“OPRP”)1 — — — 1 
Total$(131)$(275)$58 $(217)$(348)
Quarter ended June 30, 2021
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period$168 $(35)$133 
Reclassification adjustment for realized (gains) losses included in net earnings (*)(9)2 (7)
Reclassification for unrealized gains on securities of subsidiaries sold
(1,119)235 (884)
Total net unrealized gains (losses) on securities$963 (960)202 (758)$205 
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding gains on cash flow hedges arising during the period7 (1)6 
Reclassification adjustment for investment income included in net earnings from discontinued operations(5)1 (4)
Reclassification for unrealized gains on cash flow hedges of subsidiaries sold
(37)8 (29)
Total net unrealized gains (losses) on cash flow hedges27 (35)8 (27)— 
Foreign currency translation adjustments(16)— — — (16)
Pension and OPRP adjustments:
Unrealized holding losses on pension and OPRP arising during the period(1)— (1)
Reclassification adjustment for pension settlement loss included in other expense in net earnings11 (2)9 
Total pension and OPRP adjustments(7)10 (2)8 1 
Total$967 $(985)$208 $(777)$190 
Other Comprehensive Income (Loss)
AOCI Beginning BalancePretaxTaxNet of taxAOCI Ending Balance
Six months ended June 30, 2022
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period$(599)$127 $(472)
Reclassification adjustment for realized losses included in net earnings (*)13 (3)10 
Total net unrealized gains (losses) on securities
$136 (586)124 (462)$(326)
Net unrealized losses on cash flow hedges
— (10)2 (8)(8)
Foreign currency translation adjustments
(18)3 — 3 (15)
Pension and other postretirement plan adjustments1 — — — 1 
Total$119 $(593)$126 $(467)$(348)
Six months ended June 30, 2021
Net unrealized gains (losses) on securities:
Unrealized holding gains on securities arising during the period
$(187)$39 $(148)
Reclassification adjustment for realized (gains) losses included in net earnings (*)(23)5 (18)
Reclassification for unrealized gains on securities of subsidiaries sold(1,119)235 (884)
Total net unrealized gains (losses) on securities$1,255 (1,329)279 (1,050)$205 
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding losses on cash flow hedges arising during the period(1)— (1)
Reclassification adjustment for investment income included in net earnings from discontinued operations(14)3 (11)
Reclassification for unrealized gains on cash flow hedges of subsidiaries sold
(37)8 (29)
Total net unrealized gains (losses) on cash flow hedges41 (52)11 (41)— 
Foreign currency translation adjustments(16)— — — (16)
Pension and OPRP adjustments:
Unrealized holding losses on pension and OPRP arising during the period(1)— (1)
Reclassification adjustment for pension settlement loss included in other expense in net earnings11 (2)9 
Total pension and OPRP adjustments(7)10 (2)8 1 
Total$1,273 $(1,371)$288 $(1,083)$190 
(*)The reclassification adjustment out of net unrealized gains (losses) on securities affected the following lines in AFG’s Statement of Earnings:
OCI componentAffected line in the statement of earnings
Pretax
Realized gains (losses) on securities
TaxProvision for income taxes

Stock Incentive Plans   Under AFG’s stock incentive plans, employees of AFG and its subsidiaries are eligible to receive equity awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units and stock awards. In the first six months of 2022, AFG issued 151,080 shares of restricted Common Stock (fair value of $133.94 per share) under the Stock Incentive Plan.

Total compensation expense related to stock incentive plans of AFG and its subsidiaries was $4 million and $2 million in the second quarter of 2022 and 2021 and $10 million and $7 million in the first six months of 2022 and 2021, respectively.