Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables summarize the components of the Company’s total revenues and expenses, pretax income (loss), net income (loss), net income (loss) attributable to common shareholders and total assets by reportable business segment. Information provided below for “Corporate and Other” primarily relates to the operations of AFG, which will include investment income on its investment portfolio and costs to maintain the operations of AFG, including public company reporting, capital management and business development costs for the acquisition and development of new business initiatives.

	Legacy Financial Guarantee Insurance		Specialty Property & Casualty Insurance		Insurance Distribution		Corporate & Other		Consolidated (2)
Three Months Ended June 30, 2022
Revenues:
Net premiums earned	$	11	$	3					$	14
Net investment income (loss)	(22)		—				$	1	(21)
Net gains on derivative contracts	28						1		29
Net realized gains on extinguishment of debt	57								57
Commission income					$	6			6
Other (1)	1		—		—		—		2
Total revenues (2)	75		4		6		2		86
Expenses:
Loss and loss expenses (benefit)	(14)		2						(12)
Operating expenses (3)	23		3		2		1		29
Depreciation expense (3)	—		—		—		—		—
Intangible amortization	13				1				13
Sub-producer commissions (3)					4				4
Interest expense	45								45
Total expenses (2)	68		5		6		1		80
Pretax income (loss)	$	7	$	(1)	$	—	$	1	$	6
Total assets (2)	$	9,579	$	229	$	94	$	159	$	10,061
Six Months Ended June 30, 2022
Revenues:
Net premiums earned	$	24	$	4					$	28
Net investment income (loss)	(18)		1				$	1	(16)
Net gains on derivative contracts	85		—				1		86
Net realized gains on extinguishment of debt	57		—						57
Commission income					$	15			15
Other (1)	35		1		—		—		36
Total revenues (2)	184		5		15		2		206
Expenses:
Loss and loss expenses (benefit)	9		3						12
Operating expenses (3)	44		7		3		4		58
Depreciation expense (3)	1		—		—		—		1
Intangible amortization	26				1				28
Sub-producer commissions (3)					8				8
Interest expense	89								89
Total expenses (2)	170		9		13		4		197
Pretax income (loss)	$	13	$	(4)	$	2	$	(3)	$	9

	Legacy Financial Guarantee Insurance		Specialty Property & Casualty Insurance		Insurance Distribution		Corporate & Other		Consolidated (2)
Three Months Ended June 30, 2021
Revenues:
Net premiums earned	$	11	$	—					$	11
Net investment income	41		—				$	—	42
Net gains (losses) on derivative contracts	(11)								(11)
Net realized gains on extinguishment of debt	—		—						—
Commission income					$	6			6
Other (1)	1		—		—		—		1
Total revenues (2)	42		—		6		—		49
Expenses:
Loss and loss expenses (benefit)	(26)		—						(26)
Operating expenses (3)	21		2		1		—		24
Depreciation expense (3)	—		—		—		—		—
Intangible amortization	13				1				14
Sub-producer commissions (3)					4				4
Interest expense	50								50
Total expenses	59		2		6		—		66
Pretax income (loss) (2)	$	(16)	$	(2)	$	—	$	—	$	(18)
Total assets (2)	$	12,532	$	109	$	97	$	169	$	12,907
Six Months Ended June 30, 2021
Revenues:
Net premiums earned	$	25	$	—					$	25
Net investment income	90		—				$	—	91
Net gains on derivative contracts	14		—						14
Net realized gains on extinguishment of debt	33		—						33
Commission income					$	13			13
Other revenues (1)	(2)		—		—		4		2
Total revenues (2)	160		—		13		4		178
Expenses:
Loss and loss expenses (benefit)	(18)		—						(18)
Operating expenses (3)	38		3		3		10		54
Depreciation expense (3)	1		—		—		—		1
Intangible amortization	31				1				33
Sub-producer commissions (3)					7				7
Interest expense	100								100
Total expenses	152		3		11		10		177
Pretax income (loss) (2)	$	8	$	(3)	$	2	$	(6)	$	1

(1)Other revenues include the following line items on the Consolidated Statements of Total Comprehensive Income: Net investment gains (losses), including impairments, income (loss) on variable interest entities and other income (expense).

(2)Inter-segment revenues and inter-segment pre-tax income (loss) amounts are insignificant and are not presented separately. Total assets noted in the Corporate and Other Column is net of AFG's investment in surplus notes issued by the Legacy Financial Guarantee Segment with fair values of $61 and $116 at June 30, 2022 and 2021.

(3)The Consolidated Statements of Comprehensive Income presents the sum of these items as Operating Expenses.