Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2023

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, 2023
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period			$	(66)	$	14	$	(52)
Reclassification adjustment for realized (gains) losses included in net earnings (*)			2		(1)		1
Total net unrealized gains (losses) on securities	$	(413)	(64)		13		(51)		$	(464)
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges arising during the period			$	(21)	$	4	$	(17)
Reclassification adjustment for investment income included in net earnings (*)			6		(1)		5
Total net unrealized gains (losses) on cash flow hedges	(21)		(15)		3		(12)		(33)
Foreign currency translation adjustments	(20)		2		1		3		(17)
Pension and other postretirement plan adjustments	3		—		—		—		3
Total	$	(451)	$	(77)	$	17	$	(60)	$	(511)
Quarter ended June 30, 2022
Net unrealized gains (losses) on securities:
Unrealized holding gains (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 gains (losses) on securities	$	(109)	(275)		58		(217)		$	(326)
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges arising during the period			(3)		1		(2)
Reclassification adjustment for investment income included in net earnings (*)			(2)		—		(2)
Total net unrealized gains (losses) on cash flow hedges	(4)		(5)		1		(4)		(8)
Foreign currency translation adjustments	(19)		5		(1)		4		(15)
Pension and other postretirement plan adjustments	1		—		—		—		1
Total	$	(131)	$	(275)	$	58	$	(217)	$	(348)

			Other Comprehensive Income (Loss)
	AOCI Beginning Balance		Pretax		Tax		Net of tax		AOCI Ending Balance
Six months ended June 30, 2023
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period			$	12	$	(3)	$	9
Reclassification adjustment for realized (gains) losses included in net earnings (*)			31		(7)		24
Total net unrealized gains (losses) on securities	$	(497)	43		(10)		33		$	(464)
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges arising during the period			(16)		3		(13)
Reclassification adjustment for investment income included in net earnings (*)			11		(2)		9
Total net unrealized gains (losses) on cash flow hedges	(29)		(5)		1		(4)		(33)
Foreign currency translation adjustments	(20)		2		1		3		(17)
Pension and other postretirement plan adjustments	3		—		—		—		3
Total	$	(543)	$	40	$	(8)	$	32	$	(511)
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 (gains) losses included in net earnings (*)			13		(3)		10
Total net unrealized gains (losses) on securities	$	136	(586)		124		(462)		$	(326)
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges arising during the period			(8)		2		(6)
Reclassification adjustment for investment income included in net earnings (*)			(2)		—		(2)
Total net unrealized gains (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)

(*)The reclassification adjustments affected the following lines in AFG’s Statement of Earnings:

OCI component	Affected line in the statement of earnings
Pretax - Net unrealized gains (losses) on securities	Realized gains (losses) on securities
Pretax - Net unrealized gains (losses) on cash flow hedges	Net investment income
Tax	Provision for income taxes