Sale of Operations

6 Months Ended

Jun. 30, 2012

Sale of Operations [Abstract]

Sale of Operations

B. Sale of Operations In May 2012 AFG reached a definitive agreement to sell its Medicare supplement and critical illness business to Cigna Corporation for approximately $295 million in cash. The sale is expected to close in the third quarter of 2012, and result in a pretax gain of approximately $150 – $165 million. Since the transaction will include the ongoing ceding of business to Cigna in a reinsurance transaction, the operations being sold are not reported as discontinued operations. Following the sale, AFG’s supplemental insurance operations will consist solely of its run-off long-term care business. Long-term care insurance is highly sensitive to actuarial assumptions and subject to significant uncertainties.

Summarized financial information for the Medicare supplement and critical illness businesses being sold is shown below (in millions):

	June 30, 2012		December 31, 2011
Assets:
Cash and investments	$	213	$	205
Deferred policy acquisition costs		107		110
Other assets		84		88
Total assets	$	404	$	403
Liabilities:
Accident and health reserves	$	262	$	264
Other liabilities		18		15
Total liabilities	$	280	$	279

	Six months ended June 30,
	2012		2011
Total revenues	$	159	$	164
Total costs and expenses		141		154
Operating earnings before income taxes	$	18	$	10