Segments of Operations

9 Months Ended

Sep. 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 September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	857	$	700	$	1,805	$	1,547
Specialty casualty	677		613		1,973		1,772
Specialty financial	171		163		505		477
Other specialty	62		53		179		156
Total premiums earned	1,767		1,529		4,462		3,952
Net investment income	145		165		524		467
Other income	2		4		12		9
Total property and casualty insurance	1,914		1,698		4,998		4,428
Other	105		73		256		208
Real estate-related entities (*)	—		—		—		51
Total revenues before realized gains (losses)	2,019		1,771		5,254		4,687
Realized gains (losses) on securities	(35)		(17)		(143)		103
Realized gain on subsidiaries	—		—		—		4
Total revenues	$	1,984	$	1,754	$	5,111	$	4,794

(*)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 September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Earnings From Continuing Operations Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	39	$	45	$	140	$	163
Specialty casualty	118		110		372		237
Specialty financial	15		26		81		72
Other specialty	(14)		(12)		(30)		(16)
Other lines	(3)		(1)		(5)		(2)
Total underwriting	155		168		558		454
Investment and other income, net	134		161		498		451
Total property and casualty insurance	289		329		1,056		905
Other (a)	(44)		(45)		(136)		(173)
Real estate-related entities (b)	—		—		—		51
Total earnings from continuing operations before realized gains (losses) and income taxes	245		284		920		783
Realized gains (losses) on securities	(35)		(17)		(143)		103
Realized gain on subsidiaries	—		—		—		4
Total earnings from continuing operations before income taxes	$	210	$	267	$	777	$	890

(a)Includes holding company interest and expenses, including a gain of $1 million and a loss of $10 million on retirement of debt in the third quarter and first nine 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.