Long-Term Debt

3 Months Ended

Mar. 31, 2012

Long-Term Debt [Abstract]

Long-Term Debt

I. Long-Term Debt

The carrying value of long-term debt consisted of the following (in millions):

	March 31, 2012		December 31, 2011
Direct obligations of AFG:
9-7/8% Senior Notes due June 2019	$	350	$	350
7% Senior Notes due September 2050		132		132
7-1/8% Senior Debentures due February 2034		115		115
Other		3		3
		600		600
Subsidiaries:
Obligations of AAG Holding (guaranteed by AFG):
7-1/2% Senior Debentures due November 2033		112		112
7-1/4% Senior Debentures due January 2034		86		86
Notes payable secured by real estate due 2012 through 2016		64		64
Secured borrowings ($16 and $17 guaranteed by AFG)		27		30
National Interstate bank credit facility		22		22
		311		314
Payable to Subsidiary Trusts:
AAG Holding Variable Rate Subordinated Debentures due May 2033		20		20
	$	931	$	934

Scheduled principal payments on debt for the balance of 2012 and the subsequent five years were as follows: 2012 – $31 million; 2013 – $20 million; 2014 – $2 million; 2015 – $14 million; 2016 – $45 million and 2017 – none.

As shown below (in millions), the majority of AFG’s long-term debt is unsecured obligations of the holding company and its subsidiaries:

	March 31, 2012		December 31, 2011
Unsecured obligations	$	840	$	840
Obligations secured by real estate		64		64
Other secured borrowings		27		30
	$	931	$	934

AFG can borrow up to $500 million under its revolving credit facility which expires in August 2013. Amounts borrowed under this agreement bear interest at rates ranging from 1.75% to 3.00% (currently 2%) over LIBOR based on AFG’s credit rating. No amounts were borrowed under this facility at March 31, 2012.