Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2022

Stockholders' Equity Note [Abstract]

Components of accumulated other comprehensive income (loss)

The progression of the components of accumulated other comprehensive income (loss) follows (in millions):

			Other Comprehensive Income (Loss)
	AOCI Beginning Balance		Pretax		Tax		Net of tax		AOCI 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 period			7		(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 hedges	27		(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 earnings			11		(2)		9
Total pension and OPRP adjustments	(7)		10		(2)		8		1
Total	$	967	$	(985)	$	208	$	(777)	$	190

			Other Comprehensive Income (Loss)
	AOCI Beginning Balance		Pretax		Tax		Net of tax		AOCI 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 adjustments	1		—		—		—		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 hedges	41		(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 earnings			11		(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 component	Affected line in the statement of earnings
Pretax	Realized gains (losses) on securities
Tax	Provision for income taxes