Segments of Operations

6 Months Ended

Jun. 30, 2024

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,
	2024		2023		2024		2023
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	543	$	534	$	1,056	$	1,009
Specialty casualty	739		711		1,469		1,415
Specialty financial	241		195		484		391
Other specialty	62		67		122		129
Total premiums earned	1,585		1,507		3,131		2,944
Net investment income	189		191		394		398
Other income	2		3		4		8
Total property and casualty insurance	1,776		1,701		3,529		3,350
Other	126		141		265		278
Total revenues before realized gains (losses)	1,902		1,842		3,794		3,628
Realized gains (losses) on securities	(2)		(2)		12		(48)
Total revenues	$	1,900	$	1,840	$	3,806	$	3,580
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	39	$	32	$	95	$	75
Specialty casualty	108		95		182		183
Specialty financial	25		10		58		36
Other specialty	(21)		(14)		(30)		(16)
Other lines	(1)		1		(2)		—
Total underwriting	150		124		303		278
Investment and other income, net	169		175		356		371
Total property and casualty insurance	319		299		659		649
Other (*)	(46)		(42)		(96)		(82)
Total earnings before realized gains (losses) and income taxes	273		257		563		567
Realized gains (losses) on securities	(2)		(2)		12		(48)
Total earnings before income taxes	$	271	$	255	$	575	$	519

(*)Includes holding company interest and expenses, which includes 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.