Shareholders' Equity (Tables)

9 Months Ended

Sep. 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 September 30, 2023
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period			$	(81)	$	17	$	(64)
Reclassification adjustment for realized (gains) losses included in net earnings (*)			9		(2)		7
Total net unrealized gains (losses) on securities	$	(464)	(72)		15		(57)		$	(521)
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges arising during the period			(9)		2		(7)
Reclassification adjustment for investment income included in net earnings (*)			8		(2)		6
Total net unrealized gains (losses) on cash flow hedges	(33)		(1)		—		(1)		(34)
Foreign currency translation adjustments	(17)		—		(1)		(1)		(18)
Pension and other postretirement plan adjustments	3		—		—		—		3
Total	$	(511)	$	(73)	$	14	$	(59)	$	(570)
Quarter ended September 30, 2022
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period			$	(292)	$	61	$	(231)
Reclassification adjustment for realized (gains) losses included in net earnings (*)			4		(1)		3
Total net unrealized gains (losses) on securities	$	(326)	(288)		60		(228)		$	(554)
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges arising during the period			(26)		5		(21)
Reclassification adjustment for investment income included in net earnings (*)			(1)		1		—
Total net unrealized gains (losses) on cash flow hedges	(8)		(27)		6		(21)		(29)
Foreign currency translation adjustments	(15)		(4)		(1)		(5)		(20)
Pension and other postretirement plan adjustments	1		—		—		—		1
Total	$	(348)	$	(319)	$	65	$	(254)	$	(602)

			Other Comprehensive Income (Loss)
	AOCI Beginning Balance		Pretax		Tax		Net of tax		AOCI Ending Balance
Nine months ended September 30, 2023
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period			$	(69)	$	14	$	(55)
Reclassification adjustment for realized (gains) losses included in net earnings (*)			40		(9)		31
Total net unrealized gains (losses) on securities	$	(497)	(29)		5		(24)		$	(521)
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges arising during the period			(25)		5		(20)
Reclassification adjustment for investment income included in net earnings (*)			19		(4)		15
Total net unrealized gains (losses) on cash flow hedges	(29)		(6)		1		(5)		(34)
Foreign currency translation adjustments	(20)		2		—		2		(18)
Pension and other postretirement plan adjustments	3		—		—		—		3
Total	$	(543)	$	(33)	$	6	$	(27)	$	(570)
Nine months ended September 30, 2022
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period			$	(884)	$	186	$	(698)
Reclassification adjustment for realized (gains) losses included in net earnings (*)			10		(2)		8
Total net unrealized gains (losses) on securities	$	136	(874)		184		(690)		$	(554)
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) on cash flow hedges arising during the period			(34)		7		(27)
Reclassification adjustment for investment income included in net earnings (*)			(3)		1		(2)
Total net unrealized gains (losses) on cash flow hedges	—		(37)		8		(29)		(29)
Foreign currency translation adjustments	(18)		(1)		(1)		(2)		(20)
Pension and other postretirement plan adjustments	1		—		—		—		1
Total	$	119	$	(912)	$	191	$	(721)	$	(602)

(*)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