Segments of Operations

3 Months Ended

Mar. 31, 2012

Segments of Operations [Abstract]

Segments of Operations

B. Segments of Operations

AFG manages its business as three segments: (i) property and casualty insurance, (ii) annuity and supplemental insurance and (iii) other, which includes holding company costs and amounts 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, trucks and recreational vehicles, inland and ocean marine, agricultural-related products and other property coverages, (ii) Specialty casualty, which includes primarily excess and surplus, general liability, executive liability, umbrella and excess liability, customized programs for small to mid-sized businesses and workers’ compensation, and (iii) Specialty financial, which includes risk management insurance programs for lending and leasing institutions (including collateral and mortgage protection insurance), surety and fidelity products and trade credit insurance. AFG’s annuity and supplemental insurance business markets traditional fixed and indexed annuities and a variety of supplemental insurance products such as Medicare supplement.

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 operating earnings before income taxes by significant business segment and sub-segment.

	Three months ended March  31,
	2012			2011
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	263		$	255
Specialty casualty		220			216
Specialty financial		103			112
Other		17			16
Total premiums earned		603			599
Investment income		71			75
Realized gains		31			—
Other income		13			15
Total property and casualty insurance		718			689
Annuity and supplemental insurance:
Investment income		252			228
Life, accident and health premiums		105			110
Realized gains (losses)		13			(3	)
Other income		26			24
Total annuity and supplemental insurance		396			359
Other		(1	)		(9	)
Total revenues	$	1,113		$	1,039
Operating Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	27		$	36
Specialty casualty		4			1
Specialty financial		16			16
Other		1			2
Total underwriting		48			55
Investment and other income, net		55			69
Realized gains		31			—
Total property and casualty insurance		134			124
Annuity and supplemental insurance:
Operations		67			54
Realized gains (losses)		13			(3	)
Total annuity and supplemental insurance		80			51
Other (*)		(68	)		(73	)
Total operating earnings before income taxes	$	146		$	102

(*) Includes holding company expenses and $28 million and $35 million in losses of managed investment entities attributable to noncontrolling interests for the first quarter of 2012 and 2011, respectively.