Segments of Operations

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segments of Operations

Segments of 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 a deferred gain on a retroactive reinsurance transaction related to the sale of a business. 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 before income taxes by segment and sub-segment.

	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	534	$	505	$	1,009	$	948
Specialty casualty	711		657		1,415		1,296
Specialty financial	195		171		391		334
Other specialty	67		60		129		117
Total premiums earned	1,507		1,393		2,944		2,695
Net investment income	191		156		398		379
Other income	3		6		8		10
Total property and casualty insurance	1,701		1,555		3,350		3,084
Other	141		77		278		151
Total revenues before realized gains (losses)	1,842		1,632		3,628		3,235
Realized gains (losses) on securities	(2)		(93)		(48)		(108)
Total revenues	$	1,840	$	1,539	$	3,580	$	3,127

Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	32	$	39	$	75	$	101
Specialty casualty	95		130		183		254
Specialty financial	10		37		36		66
Other specialty	(14)		(9)		(16)		(16)
Other lines	1		(1)		—		(2)
Total underwriting	124		196		278		403
Investment and other income, net	175		149		371		364
Total property and casualty insurance	299		345		649		767
Other (*)	(42)		(46)		(82)		(92)
Total earnings before realized gains (losses) and income taxes	257		299		567		675
Realized gains (losses) on securities	(2)		(93)		(48)		(108)
Total earnings before income taxes	$	255	$	206	$	519	$	567

(*)Includes holding company interest and expenses, including a loss of $1 million and a gain of $1 million on retirement of debt in the second quarter and first six months of 2023, respectively, and losses of $9 million and $11 million on retirement of debt in the second quarter and first six months of 2022, respectively.