American Financial (AFG) 10-Q 7 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 01, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	AMERICAN FINANCIAL GROUP INC
Entity Central Index Key	1,042,046
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		87,609,012

Consolidated Balance Sheet (Una

Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Assets:
Cash and cash equivalents	$ 1,216	$ 1,343
Investments:
Fixed maturities, available for sale at fair value (amortized cost — $31,005 and $29,074)	32,260	30,734
Fixed maturities, trading at fair value	279	266
Equity securities, available for sale at fair value (cost — $1,332 and $1,283)	1,535	1,501
Equity securities, trading at fair value	169	195
Mortgage loans	1,054	1,117
Policy loans	223	228
Real estate and other investments	908	826
Total cash and investments	37,644	36,210
Recoverables from reinsurers	3,075	3,238
Prepaid reinsurance premiums	499	469
Agents’ balances and premiums receivable	959	889
Deferred policy acquisition costs	965	821
Assets of managed investment entities	3,629	3,108
Other receivables	660	910
Variable annuity assets (separate accounts)	655	662
Other assets	1,137	1,027
Goodwill	201	201
Total assets	49,424	47,535
Liabilities and Equity:
Unpaid losses and loss adjustment expenses	7,744	7,872
Unearned premiums	2,004	1,956
Annuity benefits accumulated	25,203	23,764
Life, accident and health reserves	2,156	2,175
Payable to reinsurers	511	645
Liabilities of managed investment entities	3,309	2,819
Long-term debt	1,024	1,061
Variable annuity liabilities (separate accounts)	655	662
Other liabilities	1,834	1,527
Total liabilities	44,440	42,481
Shareholders’ equity:
Common Stock, no par value — 200,000,000 shares authorized — 87,540,412 and 87,708,793 shares outstanding	88	88
Capital surplus	1,183	1,152
Retained earnings:
Appropriated — managed investment entities	0	(2)
Unappropriated	2,968	2,914
Accumulated other comprehensive income, net of tax	563	727
Total shareholders’ equity	4,802	4,879
Noncontrolling interests	182	175
Total equity	4,984	5,054
Total liabilities and equity	$ 49,424	$ 47,535

Consolidated Balance Sheet (Un3

Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Fixed maturities, available for sale at amortized cost	$ 31,005	$ 29,074
Equity securities, available for sale at cost	$ 1,332	$ 1,283
Common Stock, par value (USD per share)	$ 0	$ 0
Common Stock, shares authorized	200,000,000	200,000,000
Common Stock, shares outstanding	87,540,412	87,708,793

Consolidated Statement of Earni

Consolidated Statement of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Property and casualty insurance net earned premiums	$ 985	$ 931	$ 1,931	$ 1,685
Life, accident and health net earned premiums	27	27	52	55
Net investment income	404	379	792	740
Realized gains (losses) on:
Securities	(1)	12	18	31
Subsidiaries	0	0	(162)	0
Income (loss) of managed investment entities:
Investment income	38	27	72	55
Loss on change in fair value of assets/liabilities	(2)	(10)	(5)	(10)
Other income	90	26	137	47
Total revenues	1,541	1,392	2,835	2,603
Costs and Expenses:
Property and casualty insurance: Losses and loss adjustment expenses	601	602	1,177	1,031
Property and casualty insurance: Commissions and other underwriting expenses	338	300	651	567
Annuity benefits	151	166	335	334
Life, accident and health benefits	33	39	65	82
Annuity and supplemental insurance acquisition expenses	64	41	102	76
Interest charges on borrowed money	19	17	39	35
Expenses of managed investment entities	28	21	52	41
Other expenses	81	76	158	146
Total costs and expenses	1,315	1,262	2,579	2,312
Earnings before income taxes	226	130	256	291
Provision for income taxes	77	47	82	101
Net earnings, including noncontrolling interests	149	83	174	190
Less: Net earnings (loss) attributable to noncontrolling interests	8	(23)	14	(19)
Net Earnings Attributable to Shareholders	$ 141	$ 106	$ 160	$ 209
Earnings Attributable to Shareholders per Common Share:
Basic (USD per share)	$ 1.60	$ 1.18	$ 1.82	$ 2.33
Diluted (USD per share)	$ 1.57	$ 1.15	$ 1.79	$ 2.28
Average number of Common Shares:
Basic (shares)	87.7	89.6	87.6	89.6
Diluted (shares)	89.5	91.6	89.4	91.6
Cash dividends per Common Share (USD per share)	$ 0.250	$ 0.22	$ 0.5	$ 0.44
Supplemental disclosure of Realized gains on securities:
Realized gains before impairments	$ 29	$ 13	$ 52	$ 33
Losses on securities with impairment	(30)	(1)	(34)	(2)
Non-credit portion recognized in other comprehensive income (loss)	0	0	0	0
Impairment charges recognized in earnings	(30)	(1)	(34)	(2)
Total realized gains (losses) on securities	$ (1)	$ 12	$ 18	$ 31

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net earnings, including noncontrolling interests	$ 149	$ 83	$ 174	$ 190
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period	(214)	130	(145)	267
Reclassification adjustment for realized gains included in net earnings	(1)	(8)	(13)	(20)
Total net unrealized gains (losses) on securities	(215)	122	(158)	247
Net unrealized gains (losses) on cash flow hedges	(1)	0	0	0
Foreign currency translation adjustments	0	2	(8)	(3)
Other comprehensive income (loss), net of tax	(216)	124	(166)	244
Total comprehensive income (loss), net of tax	(67)	207	8	434
Less: Comprehensive income (loss) attributable to noncontrolling interests	5	(21)	12	(14)
Comprehensive income (loss) attributable to shareholders	$ (72)	$ 228	$ (4)	$ 448

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity (Unaudited) - USD ($) $ in Millions	Total	Total	Common Shares	Common Stock and Capital Surplus	Retained Earnings Approp.	Retained Earnings Unapprop.	Accumulated Other Comprehensive Inc. (Loss)	Noncontrolling Interests
Beginning Balance, shares at Dec. 31, 2013			89,513,386
Beginning Balance at Dec. 31, 2013	$ 4,769	$ 4,599		$ 1,213	$ 49	$ 2,777	$ 560	$ 170
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	190	209				209		(19)
Other comprehensive income (loss)	244	239					239	5
Allocation of losses of managed investment entities	0	(18)			(18)			18
Dividends on Common Stock	(39)	(39)				(39)
Shares issued:
Exercise of stock options, shares			669,921
Exercise of stock options	24	24		24
Other benefit plans, shares			217,423
Other benefit plans	7	7		7
Dividend reinvestment plan, shares			6,568
Stock-based compensation expense	9	9		9
Shares acquired and retired, shares			(765,074)
Shares acquired and retired	(44)	(44)		(11)		(33)
Shares exchanged - benefit plans, shares			(23,790)
Shares exchanged - benefit plans	(1)	(1)				(1)
Other	(1)							(1)
Ending Balance, shares at Jun. 30, 2014			89,618,434
Ending Balance at Jun. 30, 2014	$ 5,158	4,985		1,242	31	2,913	799	173
Beginning Balance, shares at Dec. 31, 2014	87,708,793		87,708,793
Beginning Balance at Dec. 31, 2014	$ 5,054	4,879		1,240	(2)	2,914	727	175
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of accounting change for variable interest entities	2	2			2
Net earnings	174	160				160		14
Other comprehensive income (loss)	(166)	(164)					(164)	(2)
Dividends on Common Stock	(44)	(44)				(44)
Shares issued:
Exercise of stock options, shares			852,691
Exercise of stock options	34	34		34
Other benefit plans, shares			259,311
Other benefit plans	5	5		5
Dividend reinvestment plan, shares			7,041
Dividend reinvestment plan	0	0		0
Stock-based compensation expense	10	10		10
Shares acquired and retired, shares			(1,254,791)
Shares acquired and retired	(78)	(78)		(18)		(60)
Shares exchanged - benefit plans, shares			(32,633)
Shares exchanged - benefit plans	(2)	(2)				(2)
Other	$ (5)							(5)
Ending Balance, shares at Jun. 30, 2015	87,540,412		87,540,412
Ending Balance at Jun. 30, 2015	$ 4,984	$ 4,802		$ 1,271	$ 0	$ 2,968	$ 563	$ 182

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating Activities:
Net earnings, including noncontrolling interests	$ 174	$ 190
Adjustments:
Depreciation and amortization	84	57
Annuity benefits	335	334
Realized (gains) losses on investing activities	81	(32)
Net purchases of trading securities	(5)	(33)
Deferred annuity and life policy acquisition costs	(90)	(102)
Change in:
Reinsurance and other receivables	314	283
Other assets	(83)	(54)
Insurance claims and reserves	(64)	11
Payable to reinsurers	(134)	(66)
Other liabilities	53	(37)
Managed investment entities’ assets/liabilities	(107)	(45)
Other operating activities, net	18	(7)
Net cash provided by operating activities	576	499
Investing Activities:
Purchases of fixed maturities	(3,728)	(3,426)
Purchases of equity securities	(152)	(274)
Purchases of mortgage loans	(62)	(180)
Purchases of real estate, property and equipment	(32)	(20)
Purchases of businesses	0	(267)
Proceeds from maturities and redemptions of fixed maturities	1,688	1,609
Proceeds from repayments of mortgage loans	127	41
Proceeds from sales of fixed maturities	231	183
Proceeds from sales of equity securities	149	65
Proceeds from sales of real estate, property and equipment	92	3
Cash and cash equivalents of businesses acquired	0	1,078
Managed investment entities:
Purchases of investments	(808)	(650)
Proceeds from sales and redemptions of investments	439	813
Other investing activities, net	(58)	55
Net cash used in investing activities	(2,114)	(970)
Financing Activities:
Annuity receipts	2,012	1,916
Annuity surrenders, benefits and withdrawals	(937)	(827)
Net transfers from variable annuity assets	20	16
Reductions of long-term debt	(37)	(1)
Issuances of managed investment entities’ liabilities	639	200
Retirement of managed investment entities’ liabilities	(192)	(297)
Issuances of Common Stock	34	24
Repurchases of Common Stock	(78)	(44)
Cash dividends paid on Common Stock	(44)	(39)
Other financing activities, net	(6)	0
Net cash provided by financing activities	1,411	948
Net Change in Cash and Cash Equivalents	(127)	477
Cash and cash equivalents at beginning of period	1,343	1,639
Cash and cash equivalents at end of period	$ 1,216	$ 2,116

Accounting Policies

Accounting Policies	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies Basis of Presentation The accompanying consolidated financial statements for American Financial Group, Inc. and its subsidiaries (“AFG”) are unaudited; however, management believes that all adjustments (consisting only of normal recurring accruals unless otherwise disclosed herein) necessary for fair presentation have been made. The results of operations for interim periods are not necessarily indicative of results to be expected for the year. The financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes necessary to be in conformity with U.S. generally accepted accounting principles (“GAAP”). Certain reclassifications have been made to prior periods to conform to the current year’s presentation. All significant intercompany balances and transactions have been eliminated. The results of operations of companies since their formation or acquisition are included in the consolidated financial statements. Events or transactions occurring subsequent to June 30, 2015 , and prior to the filing of this Form 10-Q, have been evaluated for potential recognition or disclosure herein. The preparation of the financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Changes in circumstances could cause actual results to differ materially from those estimates. Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. The standards establish a hierarchy of valuation techniques based on whether the assumptions that market participants would use in pricing the asset or liability (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect AFG’s assumptions about the assumptions market participants would use in pricing the asset or liability. Other than recording an estimated loss on the pending sale of its long-term care business (see Note B — “ Acquisitions and Sale of Businesses ” ), AFG did not have any significant nonrecurring fair value measurements in the first six months of 2015 . Investments Fixed maturity and equity securities classified as “available for sale” are reported at fair value with unrealized gains and losses included in accumulated other comprehensive income (“AOCI”) in AFG’s Balance Sheet. Fixed maturity and equity securities classified as “trading” are reported at fair value with changes in unrealized holding gains or losses during the period included in net investment income. Mortgage and policy loans are carried primarily at the aggregate unpaid balance. Premiums and discounts on fixed maturity securities are amortized using the interest method. Mortgage-backed securities (“MBS”) are amortized over a period based on estimated future principal payments, including prepayments. Prepayment assumptions are reviewed periodically and adjusted to reflect actual prepayments and changes in expectations. Gains or losses on securities are determined on the specific identification basis. When a decline in the value of a specific investment is considered to be other-than-temporary at the balance sheet date, a provision for impairment is charged to earnings (included in realized gains (losses) on securities) and the cost basis of that investment is reduced. If management can assert that it does not intend to sell an impaired fixed maturity security and it is not more likely than not that it will have to sell the security before recovery of its amortized cost basis, then the other-than-temporary impairment is separated into two components: (i) the amount related to credit losses (recorded in earnings) and (ii) the amount related to all other factors (recorded in other comprehensive income). The credit-related portion of an other-than-temporary impairment is measured by comparing a security’s amortized cost to the present value of its current expected cash flows discounted at its effective yield prior to the impairment charge. Both components are shown in the Statement of Earnings. If management intends to sell an impaired security, or it is more likely than not that it will be required to sell the security before recovery, an impairment charge to earnings is recorded to reduce the amortized cost of that security to fair value. Derivatives Derivatives included in AFG’s Balance Sheet are recorded at fair value. Changes in fair value of derivatives are included in earnings, unless the derivatives are designated and qualify as highly effective cash flow hedges. Derivatives that do not qualify for hedge accounting under GAAP consist primarily of (i) components of certain fixed maturity securities (primarily interest-only MBS) and (ii) the equity-based component of certain annuity products (included in annuity benefits accumulated) and related call options (included in other investments) designed to be consistent with the characteristics of the liabilities and used to mitigate the risk embedded in those annuity products. To qualify for hedge accounting, at the inception of a derivative contract, AFG formally documents the relationship between the terms of the hedge and the hedged items and its risk management objective. This documentation includes defining how hedge effectiveness and ineffectiveness will be measured on a retrospective and prospective basis. Changes in the fair value of derivatives that are designated and qualify as highly effective cash flow hedges are recorded in AOCI and are reclassified into earnings when the variability of the cash flows from the hedged items impacts earnings. Any hedge ineffectiveness is immediately recorded in current period earnings. When the change in the fair value of a qualifying cash flow hedge is included in earnings, it is included in the same line item in the Consolidated Statement of Earnings as the cash flows from the hedged item. AFG uses interest rate swaps that qualify as highly effective cash flow hedges to mitigate interest rate risk related to certain floating-rate securities included in AFG’s portfolio of fixed maturity securities. For derivatives that are designated and qualify as highly effective fair value hedges, changes in the fair value of the derivative, along with changes in the fair value of the hedged item attributable to the hedged risk, are recognized in current period earnings. AFG has entered into an interest rate swap that qualifies as a highly effective fair value hedge to mitigate the interest rate risk associated with fixed-rate long-term debt by economically converting certain fixed-rate debt obligations to floating-rate obligations. Since the terms of the swap match the terms of the hedged debt, changes in the fair value of the swap are offset by changes in the fair value of the hedged debt attributable to changes in interest rates. Accordingly, the net impact on AFG’s current period earnings is that the interest expense associated with the hedged debt is effectively recorded at the floating rate. Goodwill Goodwill represents the excess of cost of subsidiaries over AFG’s equity in their underlying net assets. Goodwill is not amortized, but is subject to an impairment test at least annually. An entity is not required to complete the quantitative annual goodwill impairment test on a reporting unit if the entity elects to perform a qualitative analysis and determines that it is more likely than not that the reporting unit’s fair value exceeds its carrying amount. Reinsurance Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policies. AFG’s property and casualty insurance subsidiaries report as assets (i) the estimated reinsurance recoverable on paid and unpaid losses, including an estimate for losses incurred but not reported, and (ii) amounts paid or due to reinsurers applicable to the unexpired terms of policies in force. Payable to reinsurers includes ceded premiums due to reinsurers as well as ceded premiums retained by AFG’s property and casualty insurance subsidiaries under contracts to fund ceded losses as they become due. AFG’s insurance subsidiaries also assume reinsurance from other companies. Earnings on reinsurance assumed is recognized based on information received from ceding companies. A subsidiary cedes life insurance policies to a third party on a funds withheld basis whereby the subsidiary retains the assets (securities) associated with the reinsurance contract. Interest is credited to the reinsurer based on the actual investment performance of the retained assets. This reinsurance contract is considered to contain an embedded derivative (that must be adjusted to fair value) because the yield on the payable is based on a specific block of the ceding company’s assets, rather than the overall creditworthiness of the ceding company. AFG determined that changes in the fair value of the underlying portfolio of fixed maturity securities is an appropriate measure of the value of the embedded derivative. The securities related to this contract are classified as “trading.” The adjustment to fair value on the embedded derivative offsets the investment income recorded on the adjustment to fair value of the related trading portfolio. Deferred Policy Acquisition Costs (“DPAC”) Policy acquisition costs (principally commissions, premium taxes and certain underwriting and policy issuance costs) directly related to the successful acquisition or renewal of an insurance contract are deferred. DPAC also includes capitalized costs associated with sales inducements offered to fixed annuity policyholders such as enhanced interest rates and premium and persistency bonuses. For the property and casualty companies, DPAC is limited based upon recoverability without any consideration for anticipated investment income and is charged against income ratably over the terms of the related policies. A premium deficiency is recognized if the sum of expected claims costs, claims adjustment expenses and unamortized acquisition costs exceed the related unearned premiums. A premium deficiency is first recognized by charging any unamortized acquisition costs to expense to the extent required to eliminate the deficiency. If the premium deficiency is greater than unamortized acquisition costs, a liability is accrued for the excess deficiency and reported with unpaid losses and loss adjustment expenses. DPAC related to annuities is deferred to the extent deemed recoverable and amortized, with interest, in relation to the present value of actual and expected gross profits on the policies. Expected gross profits consist principally of estimated future investment margin (estimated future net investment income less interest credited on policyholder funds) and surrender, mortality, and other life and annuity policy charges, less death, annuitization and guaranteed withdrawal benefits in excess of account balances and estimated future policy administration expenses. To the extent that realized gains and losses result in adjustments to the amortization of DPAC related to annuities, such adjustments are reflected as components of realized gains (losses) on securities. DPAC related to traditional life and health insurance is amortized over the expected premium paying period of the related policies, in proportion to the ratio of annual premium revenues to total anticipated premium revenues. See “ Life, Accident and Health Reserves ” below for details on the impact of loss recognition on the accounting for traditional life and health insurance contracts. DPAC includes the present value of future profits on business in force of annuity and life, accident and health insurance companies acquired (“PVFP”). PVFP represents the portion of the costs to acquire companies that is allocated to the value of the right to receive future cash flows from insurance contracts existing at the date of acquisition. PVFP is amortized with interest in relation to expected gross profits of the acquired policies for annuities and universal life products and in relation to the premium paying period for traditional life and health insurance products. DPAC and certain other balance sheet amounts related to annuity, long-term care and life businesses are also adjusted, net of tax, for the change in expense that would have been recorded if the unrealized gains (losses) from securities had actually been realized. These adjustments are included in unrealized gains (losses) on marketable securities, a component of AOCI in AFG’s Balance Sheet. Managed Investment Entities A company is considered the primary beneficiary of, and therefore must consolidate, a variable interest entity (“VIE”) based primarily on its ability to direct the activities of the VIE that most significantly impact that entity’s economic performance and the obligation to absorb losses of, or receive benefits from, the entity that could potentially be significant to the VIE. AFG manages, and has investments in, collateralized loan obligations (“CLOs”) that are VIEs (see Note H — “ Managed Investment Entities ” ). Both the management fees (payment of which is subordinate to other obligations of the CLOs) and the investments in the CLOs are considered variable interests. AFG has determined that it is the primary beneficiary of the CLOs because (i) its role as asset manager gives it the power to direct the activities that most significantly impact the economic performance of the CLOs and (ii) it has exposure to CLO losses (through its investments in the CLO debt tranches) and the right to receive benefits (through its subordinated management fees and returns on its investments), both of which could potentially be significant to the CLOs. In February 2015, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2015-02, which amends certain consolidation accounting guidance, including the VIE guidance that applies to collateralized financing entities such as CLOs. The new guidance, which AFG intends to adopt effective January 1, 2016, will affect how fee arrangements with CLO asset managers impact the determination of the primary beneficiary of these entities. Due to the significance of AFG’s investments in the CLOs that it manages, management does not expect the new guidance to impact the consolidation of its currently outstanding CLOs. The new guidance also impacts the consolidation analysis that applies to limited partnerships and similar entities. Management does not expect this guidance to impact the accounting for AFG’s existing investments in those entities. Because AFG has no right to use the CLO assets and no obligation to pay the CLO liabilities, the assets and liabilities of the CLOs are shown separately in AFG’s Balance Sheet. AFG has elected the fair value option for reporting on the CLO assets and liabilities to improve the transparency of financial reporting related to the CLOs. The net gain or loss from accounting for the CLO assets and liabilities at fair value is presented separately in AFG’s Statement of Earnings. Effective January 1, 2015, AFG adopted (on a modified retrospective basis) ASU 2014-13, which addresses the diversity in practice regarding the accounting for assets and liabilities of a consolidated collateralized financing entity (such as a CLO) when an election has been made to account for that entity’s assets and liabilities at fair value. The fair values of a CLO’s assets may differ from the separately measured fair values of its liabilities even though the CLO liabilities only have recourse to the CLO assets. Under the new guidance, AFG has elected to set the carrying value of the CLO liabilities equal to the fair value of the CLO assets (which have more observable fair values) as an alternative to reporting those liabilities at a separately measured fair value. CLO earnings attributable to AFG’s shareholders continue to be measured by the change in the fair value of AFG’s investments in the CLOs and management fees earned. Prior to the adoption of this guidance, measuring both the CLO assets and CLO liabilities at separately determined fair values resulted in a difference between the carrying value of the CLO assets and the carrying value of the CLO liabilities that was not attributable to AFG’s ownership interest in the CLOs and CLO earnings (losses) that were not attributable to AFG’s shareholders. Accordingly, in periods prior to 2015, the difference between the fair value of the CLO assets and the fair value of the CLO liabilities was recorded as “appropriated retained earnings — managed investment entities” in AFG’s Balance Sheet and the earnings (losses) that were not attributable to AFG’s shareholders were included in net earnings (loss) attributable to noncontrolling interests in AFG’s Statement of Earnings. Under the guidance adopted in 2015, there is no longer any excess carrying value of CLO assets over the carrying value of CLO liabilities to be reported as “appropriated retained earnings — managed investment entities” in AFG’s Balance Sheet or any CLO earnings to be attributed to noncontrolling interests in AFG’s Statement of Earnings. In accordance with the guidance, the amount reported as “appropriated retained earnings — managed investment entities” at December 31, 2014 was reclassified to “liabilities of managed investment entities” on January 1, 2015 as the cumulative effect of an accounting change. While the new guidance impacted the presentation of individual CLO-related line items in AFG’s Statement of Earnings, it had no overall impact on AFG’s Net Earnings Attributable to Shareholders. Unpaid Losses and Loss Adjustment Expenses The net liabilities stated for unpaid claims and for expenses of investigation and adjustment of unpaid claims represent management’s best estimate and are based upon (i) the accumulation of case estimates for losses reported prior to the close of the accounting period on direct business written; (ii) estimates received from ceding reinsurers and insurance pools and associations; (iii) estimates of unreported losses (including possible development on known claims) based on past experience; (iv) estimates based on experience of expenses for investigating and adjusting claims; and (v) the current state of the law and coverage litigation. Establishing reserves for asbestos, environmental and other mass tort claims involves considerably more judgment than other types of claims due to, among other things, inconsistent court decisions, an increase in bankruptcy filings as a result of asbestos-related liabilities, novel theories of coverage, and judicial interpretations that often expand theories of recovery and broaden the scope of coverage. Loss reserve liabilities are subject to the impact of changes in claim amounts and frequency and other factors. Changes in estimates of the liabilities for losses and loss adjustment expenses are reflected in the Statement of Earnings in the period in which determined. Despite the variability inherent in such estimates, management believes that the liabilities for unpaid losses and loss adjustment expenses are adequate. Annuity Benefits Accumulated Annuity receipts and benefit payments are recorded as increases or decreases in annuity benefits accumulated rather than as revenue and expense. Increases in this liability for interest credited are charged to expense and decreases for policy charges are credited to other income. For certain products, annuity benefits accumulated also includes reserves for accrued persistency and premium bonuses, guaranteed withdrawals and excess benefits expected to be paid on future deaths and annuitizations (“EDAR”). The liabilities for EDAR and guaranteed withdrawals are accrued for and modified using assumptions consistent with those used in determining DPAC and DPAC amortization, except that amounts are determined in relation to the present value of total expected assessments. Total expected assessments consist principally of estimated future investment margin, surrender, mortality, and other life and annuity policy charges, and unearned revenues once they are recognized as income. Annuity benefits accumulated also includes amounts advanced from the Federal Home Loan Bank of Cincinnati. Unearned Revenue Certain upfront policy charges on annuities are deferred as unearned revenue (included in other liabilities) and recognized in net earnings using the same assumptions and estimated gross profits used to amortize DPAC. Life, Accident and Health Reserves Liabilities for future policy benefits under traditional life, accident and health policies are computed using the net level premium method. Computations are based on the original projections of investment yields, mortality, morbidity and surrenders and include provisions for unfavorable deviations unless a loss recognition event (premium deficiency) occurs. Claim reserves and liabilities established for accident and health claims are modified as necessary to reflect actual experience and developing trends. For long-duration contracts (such as traditional life and long-term care policies), loss recognition occurs when, based on current expectations as of the measurement date, existing contract liabilities plus the present value of future premiums (including reasonably expected rate increases) are not expected to cover the present value of future claims payments and related settlement and maintenance costs (excluding overhead) as well as unamortized acquisition costs. If a block of business is determined to be in loss recognition, a charge is recorded in earnings in an amount equal to the excess of the present value of expected future claims costs and unamortized acquisition costs over existing reserves plus the present value of expected future premiums (with no provision for adverse deviation). The charge is recorded first to reduce unamortized acquisition costs and then as an additional reserve (if unamortized acquisition costs have been reduced to zero). In addition, reserves for traditional life and long-term care policies are subject to adjustment for loss recognition charges that would have been recorded if the unrealized gains from securities had actually been realized. This adjustment is included in unrealized gains (losses) on marketable securities, a component of AOCI in AFG’s Balance Sheet. Variable Annuity Assets and Liabilities Separate accounts related to variable annuities represent the fair value of deposits invested in underlying investment funds on which AFG earns a fee. Investment funds are selected and may be changed only by the policyholder, who retains all investment risk. AFG’s variable annuity contracts contain a guaranteed minimum death benefit (“GMDB”) to be paid if the policyholder dies before the annuity payout period commences. In periods of declining equity markets, the GMDB may exceed the value of the policyholder’s account. A GMDB liability is established for future excess death benefits using assumptions together with a range of reasonably possible scenarios for investment fund performance that are consistent with DPAC capitalization and amortization assumptions. Premium Recognition Property and casualty premiums are earned generally over the terms of the policies on a pro rata basis. Unearned premiums represent that portion of premiums written which is applicable to the unexpired terms of policies in force. On reinsurance assumed from other insurance companies or written through various underwriting organizations, unearned premiums are based on information received from such companies and organizations. For traditional life, accident and health products, premiums are recognized as revenue when legally collectible from policyholders. For interest-sensitive life and universal life products, premiums are recorded in a policyholder account, which is reflected as a liability. Revenue is recognized as amounts are assessed against the policyholder account for mortality coverage and contract expenses. Noncontrolling Interests For Balance Sheet purposes, noncontrolling interests represents the interests of shareholders other than AFG in consolidated entities. In the Statement of Earnings, net earnings and losses attributable to noncontrolling interests represents such shareholders’ interest in the earnings and losses of those entities. Income Taxes Deferred income taxes are calculated using the liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases and are measured using enacted tax rates. A valuation allowance is established to reduce total deferred tax assets to an amount that will more likely than not be realized. AFG recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained under examination by the appropriate taxing authority. Interest and penalties on AFG’s reserve for uncertain tax positions are recognized as a component of tax expense. Stock-Based Compensation All share-based grants are recognized as compensation expense on a straight-line basis over their vesting periods based on their calculated fair value at the date of grant. AFG uses the Black-Scholes pricing model to measure the fair value of employee stock options. See Note K — “ Shareholders’ Equity ” for further information. Benefit Plans AFG provides retirement benefits to qualified employees of participating companies through the AFG 401(k) Retirement and Savings Plan, a defined contribution plan. AFG makes all contributions to the retirement fund portion of the plan and matches a percentage of employee contributions to the savings fund. Company contributions are expensed in the year for which they are declared. AFG and many of its subsidiaries provide health care and life insurance benefits to eligible retirees. AFG also provides postemployment benefits to former or inactive employees (primarily those on disability) who were not deemed retired under other company plans. The projected future cost of providing these benefits is expensed over the period employees earn such benefits. Earnings Per Share Although basic earnings per share only considers shares of common stock outstanding during the period, the calculation of diluted earnings per share includes the following adjustments to weighted average common shares related to stock-based compensation plans: second quarter of 2015 and 2014 — 1.8 million and 2.0 million ; first six months of 2015 and 2014 — 1.8 million and 2.0 million , respectively. AFG’s weighted average diluted shares outstanding excludes the following anti-dilutive potential common shares related to stock compensation plans: second quarter of 2015 and 2014 — 1.5 million and 1.2 million ; first six months of 2015 and 2014 — 1.4 million and 0.9 million , respectively. Adjustments to net earnings attributable to shareholders in the calculation of diluted earnings per share were nominal in the 2015 and 2014 periods. Statement of Cash Flows For cash flow purposes, “investing activities” are defined as making and collecting loans and acquiring and disposing of debt or equity instruments and property and equipment. “Financing activities” include obtaining resources from owners and providing them with a return on their investments, borrowing money and repaying amounts borrowed. Annuity receipts, surrenders, benefits and withdrawals are also reflected as financing activities. All other activities are considered “operating.” Short-term investments having original maturities of three months or less when purchased are considered to be cash equivalents for purposes of the financial statements.

Acquisitions and Sale of Busine

Acquisitions and Sale of Businesses	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Acquisitions and Sale of Businesses	Acquisitions and Sale of Businesses Acquisition of Summit Holding Southeast, Inc. On April 1, 2014, AFG acquired Summit Holding Southeast, Inc. and its related companies (“Summit”), from Liberty Mutual Insurance for $259 million using cash on hand at the parent company. Immediately following the acquisition, AFG made a capital contribution of $140 million , bringing its total capital investment in the Summit business to $399 million . Summit, which is based in Lakeland, Florida and is a leading provider of specialty workers’ compensation solutions in the southeastern United States, generated $539 million in net written premiums in 2014, including $410 million after the acquisition date. Summit continues to operate under the Summit brand as a member of AFG’s Great American Insurance Group. Summit is included in the Specialty casualty sub-segment and generated $129 million and $258 million in net earned premiums and $7 million and $12 million in underwriting profit in the second quarter and first six months of 2015 , respectively. Expenses related to the acquisition were less than $1 million and were expensed as incurred. The purchase price was allocated to the acquired assets and liabilities of Summit based on management’s best estimate of fair value as of the acquisition date. The allocation of the purchase price is shown in the table below (in millions): Total purchase price $ 259 Tangible assets acquired: Cash and cash equivalents $ 1,078 Fixed maturities, available for sale 92 Recoverables from reinsurers 116 Agents’ balances and premiums receivable 41 Deferred tax assets, net (a) 67 Other receivables 21 Other assets 11 Total tangible assets acquired 1,426 Liabilities acquired: Unpaid losses and loss adjustment expenses 1,142 Unearned premiums 3 Payable to reinsurers 3 Other liabilities 66 Total liabilities acquired 1,214 Net tangible assets acquired, at fair value 212 Excess purchase price over net tangible assets acquired $ 47 Allocation of excess purchase price: Intangible assets acquired (b) $ 47 Deferred tax on intangible assets acquired (a) (16 ) Goodwill 16 $ 47 (a) Included with AFG’s net deferred tax liabilities, which are included in Other liabilities in AFG’s Consolidated Balance Sheet. (b) Included in Other assets in AFG’s Consolidated Balance Sheet. Acquisition of Renewal Rights On March 27, 2014, AFG completed a renewal rights agreement with Selective Insurance Company of America to acquire Selective’s pooled public entity book of business for $8 million . At the acquisition date, this book of business had approximately $38 million in in-force gross written premiums. The acquired business generated $33 million of gross written premiums and $23 million of net written premiums in 2014. Sale of Long-term Care Business AFG ceased new sales of long-term care insurance, which is included in the run-off long-term care and life segment, in January 2010. AFG has continued to service and accept renewal premiums on its outstanding policies, which are guaranteed renewable. On April 13, 2015, AFG reached an agreement to sell all of its run-off long-term care insurance business to HC2 Holdings, Inc. (“HC2”) for an initial payment of $7 million in cash and HC2 securities (subject to adjustment based on certain items, including operating results through the closing date). AFG may also receive up to $13 million of additional proceeds from HC2 in the future based on the release of certain statutory liabilities of the legal entities sold by AFG. The legal entities involved in the transaction, United Teacher Associates Insurance Company and Continental General Insurance Company, contain all of AFG’s long-term care insurance reserves, as well as smaller blocks of annuity and life insurance business. The transaction is expected to close in the second half of 2015, subject to customary conditions, including receipt of required regulatory approvals. Including the significant tax benefit from the sale, AFG expects to receive after-tax proceeds of between $105 million and $115 million from the transaction (based on final proceeds received and final net assets at closing), excluding any potential additional proceeds from the release of statutory liabilities. Based on the status of ongoing negotiations at the end of the first quarter, management determined that the potential sale of the run-off long-term care business met the GAAP “held for sale” criteria as of March 31, 2015. Accordingly, AFG recorded a loss in the first quarter of 2015 to establish a liability (included in other liabilities in AFG’s Balance Sheet) equal to the excess of the net carrying value of the assets and liabilities to be disposed over the estimated net sale proceeds. The loss may be adjusted at the closing date based on the final proceeds received and final net assets disposed. At March 31, 2015, and June 30, 2015, the carrying value of the assets and liabilities to be disposed represented approximately 4% of both AFG’s assets and liabilities and are detailed in the table below. Under accounting guidance effective on January 1, 2015, only disposals of components of an entity that represent a strategic shift and that have a major effect on a reporting entity’s operations and financial results are reported as discontinued operations. Due to the run-off nature of the business and the immaterial expected impact on AFG’s results of operations, the pending sale of AFG’s long-term care insurance business has not been reported as a discontinued operation. The estimated impact of the pending sale of the run-off long-term care insurance business, which was recorded in AFG’s financial statements as of March 31, 2015, is shown below (in millions): Estimated sale proceeds (*) $ 14 Assets of businesses sold: Cash and investments $ 1,397 Recoverables from reinsurers 603 Deferred policy acquisition costs 15 Other receivables 14 Other assets 7 Goodwill 2 Total assets 2,038 Liabilities of businesses sold: Annuity benefits accumulated 270 Life, accident and health reserves 1,537 Other liabilities 27 Total liabilities 1,834 Reclassify net unrealized gain on marketable securities 28 Net assets of businesses sold $ 176 Pretax loss on subsidiaries recorded in the first quarter of 2015 $ (162 ) (*) Includes fair value of the potential additional consideration and is shown net of estimated expenses. Revenues, costs and expenses, and earnings before income taxes for the subsidiaries to be sold were (in millions): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Life, accident and health net earned premiums: Long-term care $ 20 $ 19 $ 37 $ 38 Life operations 2 2 5 5 Net investment income 19 18 37 39 Realized gains (losses) on securities and other income — 1 (2 ) 2 Total revenues 41 40 77 84 Annuity benefits 2 2 4 4 Life, accident and health benefits: Long-term care 25 28 46 57 Life operations 2 3 5 6 Annuity and supplemental insurance acquisition expenses 3 4 6 7 Other expenses 5 3 9 7 Total costs and expenses 37 40 70 81 Earnings before income taxes $ 4 $ — $ 7 $ 3

Segments of Operations

Segments of Operations	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Segments of Operations	Segments of Operations AFG manages its business as four segments: (i) Property and casualty insurance, (ii) Annuity, (iii) Run-off long-term care and life and (iv) Other, which includes holding company costs and the 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, 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, professional liability, umbrella and excess liability, specialty coverage 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 leasing and financing institutions (including collateral and lender-placed mortgage property insurance), surety and fidelity 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 deferred gains on retroactive reinsurance transactions related to the sales of businesses in prior years. AFG’s annuity business markets traditional fixed and fixed-indexed annuities in the retail, financial institutions and education markets. 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, 2015 2014 2015 2014 Revenues Property and casualty insurance: Premiums earned: Specialty Property and transportation $ 327 $ 324 $ 640 $ 625 Specialty casualty 503 467 993 780 Specialty financial 129 116 249 233 Other specialty 26 24 49 47 Total premiums earned 985 931 1,931 1,685 Net investment income 83 76 162 143 Other income (*) 53 2 59 4 Total property and casualty insurance 1,121 1,009 2,152 1,832 Annuity: Net investment income 306 289 598 564 Other income 22 19 46 37 Total annuity 328 308 644 601 Run-off long-term care and life 49 48 95 99 Other 44 15 88 40 Total revenues before realized gains (losses) 1,542 1,380 2,979 2,572 Realized gains (losses) on securities (1 ) 12 18 31 Realized loss on subsidiaries — — (162 ) — Total revenues $ 1,541 $ 1,392 $ 2,835 $ 2,603 (*) Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015 . Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Earnings Before Income Taxes Property and casualty insurance: Underwriting: Specialty Property and transportation $ (13 ) $ (18 ) $ (6 ) $ (12 ) Specialty casualty 37 30 65 68 Specialty financial 24 15 46 25 Other specialty 3 2 6 7 Other lines (1 ) — (1 ) (1 ) Total underwriting 50 29 110 87 Investment and other income, net (a) 124 62 197 116 Total property and casualty insurance 174 91 307 203 Annuity 88 84 163 157 Run-off long-term care and life 4 (2 ) 8 (4 ) Other (b) (39 ) (55 ) (78 ) (96 ) Total earnings before realized gains (losses) and income taxes 227 118 400 260 Realized gains (losses) on securities (1 ) 12 18 31 Realized loss on subsidiaries — — (162 ) — Total earnings before income taxes $ 226 $ 130 $ 256 $ 291 (a) Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015 . (b) Includes holding company expenses. Also includes losses of managed investment entities attributable to noncontrolling interest of $18 million for both the second quarter and the first six months of 2014 . Following the adoption of new guidance in the first quarter of 2015, there are no longer earnings (losses) of managed investment entities that are attributable to noncontrolling interests. See Note A — “ Accounting Policies — Managed Investment Entities .”

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Accounting standards for measuring fair value are based on inputs used in estimating fair value. The three levels of the hierarchy are as follows: Level 1 — Quoted prices for identical assets or liabilities in active markets (markets in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis). AFG’s Level 1 financial instruments consist primarily of publicly traded equity securities and highly liquid government bonds for which quoted market prices in active markets are available and short-term investments of managed investment entities. Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar assets or liabilities in inactive markets (markets in which there are few transactions, the prices are not current, price quotations vary substantially over time or among market makers, or in which little information is released publicly); and valuations based on other significant inputs that are observable in active markets. AFG’s Level 2 financial instruments include separate account assets, corporate and municipal fixed maturity securities, mortgage-backed securities (“MBS”) and investments of managed investment entities priced using observable inputs. Level 2 inputs include benchmark yields, reported trades, corroborated broker/dealer quotes, issuer spreads and benchmark securities. When non-binding broker quotes can be corroborated by comparison to similar securities priced using observable inputs, they are classified as Level 2. Level 3 — Valuations derived from market valuation techniques generally consistent with those used to estimate the fair values of Level 2 financial instruments in which one or more significant inputs are unobservable or when the market for a security exhibits significantly less liquidity relative to markets supporting Level 2 fair value measurements. The unobservable inputs may include management’s own assumptions about the assumptions market participants would use based on the best information available in the circumstances. AFG’s Level 3 is comprised of financial instruments whose fair value is estimated based on non-binding broker quotes or internally developed using significant inputs not based on, or corroborated by, observable market information, and prior to 2015 certain liabilities of the CLOs. Under new guidance adopted in the first quarter of 2015, discussed in Note A — “ Accounting Policies — Managed Investment Entities ,” AFG has elected to set the carrying value of the CLO liabilities equal to the fair value of the CLO assets (which have more observable fair values) as an alternative to reporting those liabilities at separately measured fair values. Following the adoption of the new guidance, the CLO liabilities are categorized within the fair value hierarchy on the same basis (proportionally) as the related CLO assets. Since the portion of the CLO liabilities allocated to Level 3 is derived from the fair value of the CLO assets, beginning with the first quarter of 2015, these amounts are excluded from the progression of Level 3 financial instruments. AFG’s management is responsible for the valuation process and uses data from outside sources (including nationally recognized pricing services and broker/dealers) in establishing fair value. AFG’s internal investment professionals are a group of approximately 20 analysts whose primary responsibility is to manage AFG’s investment portfolio. These professionals monitor individual investments as well as overall industries and are active in the financial markets on a daily basis. The group is led by AFG’s chief investment officer, who reports directly to one of AFG’s Co-CEOs. Valuation techniques utilized by pricing services and prices obtained from external sources are reviewed by AFG’s internal investment professionals who are familiar with the securities being priced and the markets in which they trade to ensure the fair value determination is representative of an exit price. To validate the appropriateness of the prices obtained, these investment managers consider widely published indices (as benchmarks), recent trades, changes in interest rates, general economic conditions and the credit quality of the specific issuers. In addition, the Company communicates directly with the pricing service regarding the methods and assumptions used in pricing, including verifying, on a test basis, the inputs used by the service to value specific securities. In April 2015, AFG reached an agreement to sell all of its run-off long-term care insurance business. As discussed in Note B — “ Acquisitions and Sale of Businesses ,” AFG recorded a loss in the first quarter of 2015 to write down the net carrying value of the assets and liabilities to be disposed to the estimated net sale proceeds of $14 million (estimated fair value less costs to sell). The estimate of fair value was derived using significant unobservable inputs (Level 3). Assets and liabilities measured and carried at fair value in the financial statements are summarized below (in millions): Level 1 Level 2 Level 3 Total June 30, 2015 Assets: Available for sale (“AFS”) fixed maturities: U.S. Government and government agencies $ 142 $ 204 $ 15 $ 361 States, municipalities and political subdivisions — 6,996 84 7,080 Foreign government — 177 — 177 Residential MBS — 3,818 296 4,114 Commercial MBS — 2,275 48 2,323 Asset-backed securities (“ABS”) — 4,051 332 4,383 Corporate and other 48 13,177 597 13,822 Total AFS fixed maturities 190 30,698 1,372 32,260 Trading fixed maturities 13 266 — 279 Equity securities 1,396 190 118 1,704 Assets of managed investment entities (“MIE”) 243 3,357 29 3,629 Variable annuity assets (separate accounts) (*) — 655 — 655 Other investments — derivatives — 278 — 278 Other assets — derivatives — 1 — 1 Total assets accounted for at fair value $ 1,842 $ 35,445 $ 1,519 $ 38,806 Liabilities: Liabilities of managed investment entities $ 222 $ 3,061 $ 26 $ 3,309 Derivatives in annuity benefits accumulated — — 1,258 1,258 Derivatives in long-term debt — (2 ) — (2 ) Other liabilities — derivatives — 10 — 10 Total liabilities accounted for at fair value $ 222 $ 3,069 $ 1,284 $ 4,575 December 31, 2014 Assets: Available for sale fixed maturities: U.S. Government and government agencies $ 164 $ 174 $ 15 $ 353 States, municipalities and political subdivisions — 6,647 100 6,747 Foreign government — 194 — 194 Residential MBS — 4,142 300 4,442 Commercial MBS — 2,407 44 2,451 Asset-backed securities — 3,661 226 3,887 Corporate and other 36 12,078 546 12,660 Total AFS fixed maturities 200 29,303 1,231 30,734 Trading fixed maturities 12 254 — 266 Equity securities 1,306 297 93 1,696 Assets of managed investment entities 174 2,903 31 3,108 Variable annuity assets (separate accounts) (*) — 662 — 662 Other investments — derivatives — 322 — 322 Total assets accounted for at fair value $ 1,692 $ 33,741 $ 1,355 $ 36,788 Liabilities: Liabilities of managed investment entities $ 118 $ — $ 2,701 $ 2,819 Derivatives in annuity benefits accumulated — — 1,160 1,160 Other liabilities — derivatives — 13 — 13 Total liabilities accounted for at fair value $ 118 $ 13 $ 3,861 $ 3,992 (*) Variable annuity liabilities equal the fair value of variable annuity assets. Transfers between Level 1 and Level 2 for all periods presented were a result of increases or decreases in trade frequency. During the second quarter of 2015 , there were five common stocks, two perpetual preferred stocks and one mandatory redeemable preferred stock with aggregate fair values of $26 million , $14 million and $10 million , respectively, that transferred from Level 2 to Level 1. During the first six months of 2015 , there were six common stocks, four perpetual preferred stocks and one mandatory redeemable preferred stock with aggregate fair values of $79 million , $19 million and $10 million , respectively, that transferred from Level 2 to Level 1. During the second quarter and first six months of 2014 , one perpetual preferred stock with a fair value of less than $1 million and nine perpetual preferred stocks with an aggregate fair value of $55 million , respectively, were transferred from Level 1 to Level 2. Approximately 4% of the total assets carried at fair value on June 30, 2015 , were Level 3 assets. Approximately 72% ( $1.10 billion ) of the Level 3 assets were priced using non-binding broker quotes, for which there is a lack of transparency as to the inputs used to determine fair value. Details as to the quantitative inputs are neither provided by the brokers nor otherwise reasonably obtainable by AFG. Since internally developed Level 3 asset fair values represent less than 1% of the total assets measured at fair value and approximately 6% of AFG’s shareholders’ equity, changes in unobservable inputs used to determine internally developed fair values would not have a material impact on AFG’s financial position. The only significant Level 3 assets or liabilities carried at fair value in the financial statements that were not measured using broker quotes are the derivatives embedded in AFG’s fixed-indexed annuity liabilities, which are measured using a discounted cash flow approach and had a fair value of $1.26 billion at June 30, 2015 . The following table presents information about the unobservable inputs used by management in determining fair value of these embedded derivatives. See Note F — “ Derivatives .” Unobservable Input Range Adjustment for insurance subsidiary’s credit risk 0.30% – 2.10% over the risk free rate Risk margin for uncertainty in cash flows 0.52% reduction in the discount rate Surrenders 4% – 16% of indexed account value Partial surrenders 2% – 10% of indexed account value Annuitizations 1% – 1.5% of indexed account value Deaths 1.5% – 3.0% of indexed account value Budgeted option costs 2.0% – 3.25% of indexed account value The range of adjustments for insurance subsidiary’s credit risk reflects credit spread variations across the yield curve. The range of projected surrender rates reflects the specific surrender charges and other features of AFG’s individual fixed-indexed annuity products with an expected range of 5% to 11% in the majority of future calendar years ( 4% to 16% over all periods). Increasing the budgeted option cost or risk margin for uncertainty in cash flows assumptions in the table above would increase the fair value of the fixed-indexed annuity embedded derivatives, while increasing any of the other unobservable inputs in the table above would decrease the fair value of the embedded derivatives. Changes in balances of Level 3 financial assets and liabilities carried at fair value during the second quarter and first six months of 2015 and 2014 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. All transfers are reflected in the table at fair value as of the end of the reporting period. Total realized/unrealized gains (losses) included in Balance at March 31, 2015 Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at June 30, 2015 AFS fixed maturities: U.S. government agency $ 15 $ — $ — $ — $ — $ — $ — $ 15 State and municipal 61 — (2 ) 25 — — — 84 Residential MBS 306 (1 ) (2 ) — (9 ) 16 (14 ) 296 Commercial MBS 44 — — — — 4 — 48 Asset-backed securities 211 1 — 115 (7 ) 12 — 332 Corporate and other 583 (3 ) (17 ) 35 (11 ) 10 — 597 Equity securities 84 (4 ) 3 35 — — — 118 Assets of MIE 29 (4 ) — 4 — — — 29 Embedded derivatives (1,243 ) 19 — (48 ) 14 — — (1,258 ) Total realized/unrealized gains (losses) included in Balance at March 31, 2014 Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at June 30, 2014 AFS fixed maturities: U.S. government agency $ 15 $ — $ — $ — $ — $ — $ — $ 15 State and municipal 61 — — — — — — 61 Residential MBS 272 2 2 — (7 ) 6 (19 ) 256 Commercial MBS 28 — — — — — — 28 Asset-backed securities 206 3 — 10 (15 ) — — 204 Corporate and other 322 4 — 20 (30 ) — (3 ) 313 Equity securities 41 — 2 16 — 22 — 81 Assets of MIE 29 (1 ) — — (1 ) — — 27 Liabilities of MIE (*) (2,322 ) (9 ) — (155 ) 164 — — (2,322 ) Embedded derivatives (904 ) (78 ) — (56 ) 12 — — (1,026 ) (*) Total realized/unrealized gains (losses) included in net income includes gains of $1 million related to liabilities outstanding as of June 30, 2014 . See Note H — “ Managed Investment Entities .” Total realized/unrealized gains (losses) included in Balance at December 31, 2014 Impact of accounting change (*) Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at June 30, 2015 AFS fixed maturities: U.S. government agency $ 15 $ — $ — $ — $ — $ — $ — $ — $ 15 State and municipal 100 — — (2 ) 25 — — (39 ) 84 Residential MBS 300 — (2 ) 1 — (16 ) 57 (44 ) 296 Commercial MBS 44 — — — — — 4 — 48 Asset-backed securities 226 — 1 — 120 (48 ) 33 — 332 Corporate and other 546 — (3 ) (11 ) 79 (24 ) 10 — 597 Equity securities 93 — (4 ) 1 45 — — (17 ) 118 Assets of MIE 31 — (6 ) — 4 — — — 29 Liabilities of MIE (2,701 ) 2,701 — — — — — — — Embedded derivatives (1,160 ) — (31 ) — (95 ) 28 — — (1,258 ) (*) The impact of implementing new guidance adopted in 2015, as discussed above and in Note A — “ Accounting Policies — Managed Investment Entities .” Total realized/unrealized gains (losses) included in Balance at December 31, 2013 Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at June 30, 2014 AFS fixed maturities: U.S. government agency $ 15 $ — $ — $ — $ — $ — $ — $ 15 State and municipal 61 — — — — — — 61 Residential MBS 316 3 6 — (15 ) 38 (92 ) 256 Commercial MBS 28 — — — — — — 28 Asset-backed securities 75 3 1 60 (16 ) 81 — 204 Corporate and other 335 5 3 21 (46 ) — (5 ) 313 Equity securities 31 1 4 46 (9 ) 22 (14 ) 81 Assets of MIE 30 (2 ) — — (1 ) — — 27 Liabilities of MIE (*) (2,411 ) (8 ) — (200 ) 297 — — (2,322 ) Embedded derivatives (804 ) (132 ) — (111 ) 21 — — (1,026 ) (*) Total realized/unrealized gains (losses) included in net income includes gains of $5 million related to liabilities outstanding as of June 30, 2014 . See Note H — “ Managed Investment Entities .” Fair Value of Financial Instruments The carrying value and fair value of financial instruments that are not carried at fair value in the financial statements are summarized below (in millions): Carrying Value Fair Value Level 1 Level 2 Level 3 June 30, 2015 Financial assets: Cash and cash equivalents $ 1,216 $ 1,216 $ 1,216 $ — $ — Mortgage loans 1,054 1,058 — — 1,058 Policy loans 223 223 — — 223 Total financial assets not accounted for at fair value $ 2,493 $ 2,497 $ 1,216 $ — $ 1,281 Financial liabilities: Annuity benefits accumulated (*) $ 25,002 $ 24,291 $ — $ — $ 24,291 Long-term debt 1,026 1,120 — 1,083 37 Total financial liabilities not accounted for at fair value $ 26,028 $ 25,411 $ — $ 1,083 $ 24,328 December 31, 2014 Financial assets: Cash and cash equivalents $ 1,343 $ 1,343 $ 1,343 $ — $ — Mortgage loans 1,117 1,124 — — 1,124 Policy loans 228 228 — — 228 Total financial assets not accounted for at fair value $ 2,688 $ 2,695 $ 1,343 $ — $ 1,352 Financial liabilities: Annuity benefits accumulated (*) $ 23,561 $ 23,187 $ — $ — $ 23,187 Long-term debt 1,061 1,180 — 1,106 74 Total financial liabilities not accounted for at fair value $ 24,622 $ 24,367 $ — $ 1,106 $ 23,261 (*) Excludes $201 million and $203 million of life contingent annuities in the payout phase at June 30, 2015 and December 31, 2014 , respectively. The carrying amount of cash and cash equivalents approximates fair value. Fair values for mortgage loans are estimated by discounting the future contractual cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. The fair value of policy loans is estimated to approximate carrying value; policy loans have no defined maturity dates and are inseparable from insurance contracts. The fair value of annuity benefits was estimated based on expected cash flows discounted using forward interest rates adjusted for the Company’s credit risk and includes the impact of maintenance expenses and capital costs. Fair values of long-term debt are based primarily on quoted market prices.

Investments

Investments	6 Months Ended
	Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Investments	Investments Available for sale fixed maturities and equity securities at June 30, 2015 and December 31, 2014 , consisted of the following (in millions): June 30, 2015 December 31, 2014 Amortized Cost Fair Value Gross Unrealized Amortized Cost Fair Value Gross Unrealized Gains Losses Gains Losses Fixed maturities: U.S. Government and government agencies $ 356 $ 361 $ 7 $ (2 ) $ 347 $ 353 $ 8 $ (2 ) States, municipalities and political subdivisions 6,869 7,080 265 (54 ) 6,393 6,747 364 (10 ) Foreign government 167 177 10 — 184 194 10 — Residential MBS 3,756 4,114 371 (13 ) 4,046 4,442 411 (15 ) Commercial MBS 2,204 2,323 120 (1 ) 2,294 2,451 158 (1 ) Asset-backed securities 4,355 4,383 42 (14 ) 3,872 3,887 37 (22 ) Corporate and other 13,298 13,822 609 (85 ) 11,938 12,660 751 (29 ) Total fixed maturities $ 31,005 $ 32,260 $ 1,424 $ (169 ) $ 29,074 $ 30,734 $ 1,739 $ (79 ) Common stocks $ 889 $ 1,076 $ 217 $ (30 ) $ 885 $ 1,087 $ 227 $ (25 ) Perpetual preferred stocks $ 443 $ 459 $ 21 $ (5 ) $ 398 $ 414 $ 21 $ (5 ) The non-credit related portion of other-than-temporary impairment charges is included in other comprehensive income. Cumulative non-credit charges taken for securities still owned at June 30, 2015 and December 31, 2014 , respectively, were $216 million and $220 million . Gross unrealized gains on such securities at June 30, 2015 and December 31, 2014 were $148 million and $151 million , respectively. Gross unrealized losses on such securities at June 30, 2015 and December 31, 2014 were $7 million and $8 million , respectively. These amounts represent the non-credit other-than-temporary impairment charges recorded in AOCI adjusted for subsequent changes in fair values and nearly all relate to residential MBS. The following tables show gross unrealized losses (dollars in millions) on fixed maturities and equity securities by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2015 and December 31, 2014 . Less Than Twelve Months Twelve Months or More Unrealized Loss Fair Value Fair Value as % of Cost Unrealized Loss Fair Value Fair Value as % of Cost June 30, 2015 Fixed maturities: U.S. Government and government agencies $ — $ 55 100 % $ (2 ) $ 15 88 % States, municipalities and political subdivisions (50 ) 2,059 98 % (4 ) 55 93 % Residential MBS (5 ) 338 99 % (8 ) 208 96 % Commercial MBS (1 ) 43 98 % — 19 100 % Asset-backed securities (10 ) 1,144 99 % (4 ) 361 99 % Corporate and other (80 ) 3,335 98 % (5 ) 78 94 % Total fixed maturities $ (146 ) $ 6,974 98 % $ (23 ) $ 736 97 % Common stocks $ (30 ) $ 291 91 % $ — $ — — % Perpetual preferred stocks $ (2 ) $ 105 98 % $ (3 ) $ 23 88 % December 31, 2014 Fixed maturities: U.S. Government and government agencies $ — $ 39 100 % $ (2 ) $ 15 88 % States, municipalities and political subdivisions (2 ) 222 99 % (8 ) 408 98 % Residential MBS (4 ) 298 99 % (11 ) 209 95 % Commercial MBS (1 ) 38 97 % — 11 100 % Asset-backed securities (11 ) 1,389 99 % (11 ) 622 98 % Corporate and other (16 ) 588 97 % (13 ) 433 97 % Total fixed maturities $ (34 ) $ 2,574 99 % $ (45 ) $ 1,698 97 % Common stocks $ (25 ) $ 260 91 % $ — $ — — % Perpetual preferred stocks $ (1 ) $ 45 98 % $ (4 ) $ 55 93 % At June 30, 2015 , the gross unrealized losses on fixed maturities of $169 million relate to approximately 1,040 securities. Investment grade securities (as determined by nationally recognized rating agencies) represented approximately 83% of the gross unrealized loss and 90% of the fair value. AFG analyzes its MBS securities for other-than-temporary impairment each quarter based upon expected future cash flows. Management estimates expected future cash flows based upon its knowledge of the MBS market, cash flow projections (which reflect loan to collateral values, subordination, vintage and geographic concentration) received from independent sources, implied cash flows inherent in security ratings and analysis of historical payment data. In the first six months of 2015 , AFG recorded less than $1 million in other-than-temporary impairment charges related to its residential MBS. In the first six months of 2015 , AFG recorded approximately $10 million and $4 million in other-than-temporary impairment charges related to corporate bonds and municipal bonds, respectively. AFG recorded $25 million other-than-temporary impairment charges on common stocks in the first six months of 2015 . At June 30, 2015 , the gross unrealized losses on common stocks of $30 million relate to 47 securities, none of which has been in an unrealized loss position for more than 12 months. At June 30, 2015 , the gross unrealized losses on preferred stocks of $5 million relate to 22 securities. All of the preferred stocks that have been in an unrealized loss position for 12 months or more ( 3 securities) have investment grade ratings. Management believes AFG will recover its cost basis in the securities with unrealized losses and that AFG has the ability to hold the securities until they recover in value and had no intent to sell them at June 30, 2015 . A progression of the credit portion of other-than-temporary impairments on fixed maturity securities for which the non-credit portion of an impairment has been recognized in other comprehensive income is shown below (in millions): 2015 2014 Balance at March 31 $ 168 $ 177 Additional credit impairments on: Previously impaired securities — — Securities without prior impairments — — Reductions due to sales or redemptions (2 ) (2 ) Balance at June 30 $ 166 $ 175 Balance at January 1 $ 170 $ 194 Additional credit impairments on: Previously impaired securities 1 — Securities without prior impairments — — Reductions due to sales or redemptions (5 ) (19 ) Balance at June 30 $ 166 $ 175 The table below sets forth the scheduled maturities of available for sale fixed maturities as of June 30, 2015 (dollars in millions). Securities with sinking funds are reported at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers. Amortized Fair Value Cost Amount % Maturity One year or less $ 957 $ 978 3 % After one year through five years 4,854 5,172 16 % After five years through ten years 10,092 10,352 32 % After ten years 4,787 4,938 15 % 20,690 21,440 66 % ABS (average life of approximately 5 years) 4,355 4,383 14 % MBS (average life of approximately 4-1/2 years) 5,960 6,437 20 % Total $ 31,005 $ 32,260 100 % Certain risks are inherent in connection with fixed maturity securities, including loss upon default, price volatility in reaction to changes in interest rates, and general market factors and risks associated with reinvestment of proceeds due to prepayments or redemptions in a period of declining interest rates. There were no investments in individual issuers that exceeded 10% of Shareholders’ Equity at June 30, 2015 or December 31, 2014 . Net Unrealized Gain on Marketable Securities In addition to adjusting equity securities and fixed maturity securities classified as “available for sale” to fair value, GAAP requires that deferred policy acquisition costs and certain other balance sheet amounts related to annuity, long-term care and life businesses be adjusted to the extent that unrealized gains and losses from securities would result in adjustments to those balances had the unrealized gains or losses actually been realized. The following table shows (in millions) the components of the net unrealized gain on securities that is included in AOCI in AFG’s Balance Sheet. Pretax Deferred Tax and Amounts Attributable to Noncontrolling Interests Net June 30, 2015 Unrealized gain on: Fixed maturities — annuity segment (*) $ 859 $ (301 ) $ 558 Fixed maturities — all other 396 (146 ) 250 Equity securities 203 (73 ) 130 Deferred policy acquisition costs — annuity segment (383 ) 134 (249 ) Annuity benefits accumulated (107 ) 37 (70 ) Life, accident and health reserves (70 ) 24 (46 ) Unearned revenue 21 (7 ) 14 $ 919 $ (332 ) $ 587 December 31, 2014 Unrealized gain on: Fixed maturities — annuity segment (*) $ 1,157 $ (405 ) $ 752 Fixed maturities — all other 503 (185 ) 318 Equity securities 218 (79 ) 139 Deferred policy acquisition costs — annuity segment (531 ) 186 (345 ) Annuity benefits accumulated (112 ) 39 (73 ) Life, accident and health reserves (104 ) 36 (68 ) Unearned revenue 31 (11 ) 20 $ 1,162 $ (419 ) $ 743 (*) Unrealized gains on fixed maturity investments supporting AFG’s annuity benefits accumulated. Net Investment Income The following table shows (in millions) investment income earned and investment expenses incurred. Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Investment income: Fixed maturities $ 360 $ 338 $ 712 $ 665 Equity securities 17 16 34 32 Equity in earnings of partnerships and similar investments 5 7 8 13 Other 26 19 47 36 Gross investment income 408 380 801 746 Investment expenses (4 ) (1 ) (9 ) (6 ) Net investment income $ 404 $ 379 $ 792 $ 740 Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments are summarized as follows (in millions): Fixed Maturities Equity Securities Mortgage Loans and Other Investments Other (a) Total Pretax Tax Effects Noncon- trolling Interests Total Quarter ended June 30, 2015 Realized before impairments $ 7 $ 25 $ (2 ) $ (1 ) $ 29 $ (10 ) $ — $ 19 Realized — impairments (10 ) (23 ) — 3 (30 ) 11 — (19 ) Change in unrealized (623 ) (21 ) — 314 (330 ) 115 3 (212 ) Quarter ended June 30, 2014 Realized before impairments $ 9 $ 4 $ — $ — $ 13 $ (4 ) $ (1 ) $ 8 Realized — impairments — (1 ) — — (1 ) — — (1 ) Change in unrealized 295 30 — (137 ) 188 (66 ) (2 ) 120 Six months ended June 30, 2015 Realized before impairments $ 10 $ 46 $ (2 ) $ (2 ) $ 52 $ (18 ) $ — $ 34 Realized — impairments (15 ) (25 ) — 6 (34 ) 12 — (22 ) Change in unrealized (405 ) (15 ) — 177 (243 ) 85 2 (156 ) Six months ended June 30, 2014 Realized before impairments $ 22 $ 10 $ 1 $ — $ 33 $ (11 ) $ (1 ) $ 21 Realized — impairments (1 ) (1 ) — — (2 ) — — (2 ) Change in unrealized 611 43 — (273 ) 381 (134 ) (5 ) 242 (a) Primarily adjustments to deferred policy acquisition costs and reserves related to annuities and long-term care business. Gross realized gains and losses (excluding impairment write-downs and mark-to-market of derivatives) on available for sale fixed maturity and equity security investment transactions included in the Statement of Cash Flows consisted of the following (in millions): Six months ended June 30, 2015 2014 Fixed maturities: Gross gains $ 13 $ 18 Gross losses — (2 ) Equity securities: Gross gains 46 12 Gross losses — —

Derivatives

Derivatives	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	Derivatives As discussed under “ Derivatives ” in Note A — “ Accounting Policies ” to the financial statements, AFG uses derivatives in certain areas of its operations. Derivatives That Do Not Qualify for Hedge Accounting The following derivatives that do not qualify for hedge accounting under GAAP are included in AFG’s Balance Sheet at fair value (in millions): June 30, 2015 December 31, 2014 Derivative Balance Sheet Line Asset Liability Asset Liability MBS with embedded derivatives Fixed maturities $ 170 $ — $ 158 $ — Public company warrants Equity securities — — 19 — Interest rate swaptions Other investments — — — — Fixed-indexed annuities (embedded derivative) Annuity benefits accumulated — 1,258 — 1,160 Equity index call options Other investments 278 — 322 — Reinsurance contracts (embedded derivative) Other liabilities — 9 — 13 $ 448 $ 1,267 $ 499 $ 1,173 The MBS with embedded derivatives consist primarily of interest-only MBS with interest rates that float inversely with short-term rates. AFG records the entire change in the fair value of these securities in earnings. These investments are part of AFG’s overall investment strategy and represent a small component of AFG’s investment portfolio. Warrants to purchase shares of publicly traded companies, which represent a small component of AFG’s overall investment portfolio, are considered to be derivatives that must be marked to market through earnings. AFG exercised its most significant warrant position in the first quarter of 2015 . AFG has $200 million notional amount of pay-fixed interest rate swaptions (options to enter into pay-fixed/receive floating interest rate swaps at future dates expiring in the fourth quarter of 2015) outstanding at June 30, 2015 , which are used to mitigate interest rate risk in its annuity operations. AFG paid $4 million to purchase these swaptions, which represents its maximum potential economic loss over the life of the contracts. AFG’s fixed-indexed annuities, which represented just over one-half of annuity benefits accumulated at June 30, 2015 , provide policyholders with a crediting rate tied, in part, to the performance of an existing stock market index. AFG attempts to mitigate the risk in the index-based component of these products through the purchase of call options on the appropriate index. AFG receives collateral from its counterparties to support its purchased call option assets. This collateral ( $265 million at June 30, 2015 ) is included in other assets in AFG’s Balance Sheet with an offsetting liability to return the collateral, which is included in other liabilities. AFG’s strategy is designed so that an increase in the liabilities, due to an increase in the market index, will be generally offset by unrealized and realized gains on the call options purchased by AFG. Both the index-based component of the annuities and the related call options are considered derivatives. Fluctuations in interest rates and the stock market, among other factors, can cause volatility in the periodic measurement of fair value of the embedded derivative that management believes can be inconsistent with the long-term economics of these products. As discussed under “ Reinsurance ” in Note A to the financial statements , certain reinsurance contracts are considered to contain embedded derivatives. The following table summarizes the gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting for the second quarter and first six months of 2015 and 2014 (in millions): Three months ended June 30, Six months ended June 30, Derivative Statement of Earnings Line 2015 2014 2015 2014 MBS with embedded derivatives Realized gains on securities $ (1 ) $ 4 $ (3 ) $ 7 Public company warrants Realized gains on securities — — — (2 ) Interest rate swaptions Realized gains on securities — (1 ) — (2 ) Fixed-indexed annuities (embedded derivative) Annuity benefits 19 (78 ) (31 ) (132 ) Equity index call options Annuity benefits 3 63 23 93 Reinsurance contracts (embedded derivative) Net investment income 3 (1 ) 3 (3 ) $ 24 $ (13 ) $ (8 ) $ (39 ) Derivatives Designated and Qualifying as Cash Flow Hedges In the second quarter of 2015, AFG entered into two interest rate swaps (a five -year, $195 million notional amount swap and a fifteen -year, $132 million notional amount swap) under which AFG receives fixed-rate interest payments in exchange for variable interest payments based on three-month LIBOR. In the third quarter of 2014, AFG entered into a five -year $431 million notional amount interest rate swap under which AFG receives fixed-rate interest payments in exchange for variable interest payments based on one-month LIBOR. The purpose of each of these swaps is to effectively convert a portion of AFG’s floating rate fixed maturity securities to fixed rates by offsetting the variability in cash flows attributable to changes in LIBOR. The notional amounts amortize down over each swap’s respective life in anticipation of an expected decline in AFG’s portfolio of fixed maturity securities with floating interest rates based on LIBOR ( $673 million and $401 million total notional amounts at June 30, 2015 and December 31, 2014 , respectively). The fair value of the effective portion of the interest rate swaps in an asset position and included in other assets was $1 million and less than $1 million at June 30, 2015 and December 31, 2014 , respectively. The fair value of the effective portion of interest rate swaps in a liability position and included in other liabilities was $1 million at June 30, 2015 . The net unrealized gain or loss on cash flow hedges is included in AOCI, net of DPAC and tax. During the second quarter and first six months of 2015 , $1 million and $2 million , respectively, was reclassified from AOCI to net investment income. There was no ineffectiveness recorded in Net Earnings during these periods. Derivative Designated and Qualifying as a Fair Value Hedge In June 2015, AFG entered into an interest rate swap to mitigate the interest rate risk associated with its fixed-rate 9-7/8% Senior Notes due June 2019 by effectively converting the interest rate on those notes to a floating rate of three-month LIBOR plus 8.099% ( 8.3847% at June 30, 2015 ). Since the terms of the interest rate swap match the terms of the hedged debt, changes in the fair value of the interest rate swap are offset by changes in the fair value of the hedged debt attributable to changes in interest rates. The fair value of the interest rate swap (an asset of $2 million at June 30, 2015 ) and the offsetting adjustment to the carrying value of the 9-7/8% Senior Notes are both included in long-term debt on AFG’s Balance Sheet. Accordingly, the net impact on AFG’s current period earnings is that the interest expense associated with the hedged debt is effectively recorded at the floating rate. The net reduction in interest expense from the swap for the second quarter of 2015 was less than $1 million .

Deferred Policy Acquisition Cos

Deferred Policy Acquisition Costs	6 Months Ended
	Jun. 30, 2015
Deferred Policy Acquisition Costs Disclosures [Abstract]
Deferred Policy Acquisition Costs	Deferred Policy Acquisition Costs A progression of deferred policy acquisition costs is presented below (in millions): P&C Annuity and Run-off Long-term Care and Life Deferred Deferred Sales Consolidated Costs Costs Inducements PVFP Unrealized Total Total Balance at March 31, 2015 $ 217 $ 942 $ 128 $ 71 $ (602 ) $ 539 $ 756 Additions 137 46 1 — — 47 184 Amortization: Periodic amortization (130 ) (55 ) (7 ) (3 ) — (65 ) (195 ) Included in realized gains — 1 1 — — 2 2 Foreign currency translation (1 ) — — — — — (1 ) Change in unrealized — — — — 219 219 219 Balance at June 30, 2015 $ 223 $ 934 $ 123 $ 68 $ (383 ) $ 742 $ 965 Balance at March 31, 2014 $ 214 $ 898 $ 146 $ 82 $ (450 ) $ 676 $ 890 Additions 127 52 1 — — 53 180 Amortization: Periodic amortization (123 ) (33 ) (6 ) (3 ) — (42 ) (165 ) Included in realized gains — 1 — — — 1 1 Foreign currency translation 1 — — — — — 1 Change in unrealized — — — — (101 ) (101 ) (101 ) Balance at June 30, 2014 $ 219 $ 918 $ 141 $ 79 $ (551 ) $ 587 $ 806 Balance at December 31, 2014 $ 221 $ 925 $ 132 $ 74 $ (531 ) $ 600 $ 821 Additions 258 90 4 — — 94 352 Amortization: Periodic amortization (256 ) (84 ) (14 ) (6 ) — (104 ) (360 ) Included in realized gains — 3 1 — — 4 4 Foreign currency translation — — — — — — — Change in unrealized — — — — 148 148 148 Balance at June 30, 2015 $ 223 $ 934 $ 123 $ 68 $ (383 ) $ 742 $ 965 Balance at December 31, 2013 $ 211 $ 875 $ 149 $ 85 $ (345 ) $ 764 $ 975 Additions 251 102 5 — — 107 358 Amortization: Periodic amortization (244 ) (60 ) (13 ) (6 ) — (79 ) (323 ) Included in realized gains — 1 — — — 1 1 Foreign currency translation 1 — — — — — 1 Change in unrealized — — — — (206 ) (206 ) (206 ) Balance at June 30, 2014 $ 219 $ 918 $ 141 $ 79 $ (551 ) $ 587 $ 806 The present value of future profits (“PVFP”) amounts in the table above are net of $215 million and $209 million of accumulated amortization at June 30, 2015 and December 31, 2014 , respectively.

Managed Investment Entities

Managed Investment Entities	6 Months Ended
	Jun. 30, 2015
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract]
Managed Investment Entities	Managed Investment Entities AFG is the investment manager and its subsidiaries have investments ranging from 15.0% to 51.2% of the most subordinate debt tranche of thirteen collateralized loan obligation entities or “CLOs,” which are considered variable interest entities. AFG’s subsidiaries also own portions of the senior debt tranches of certain of these CLOs. Upon formation between 2004 and 2015, these entities issued securities in various senior and subordinate classes and invested the proceeds primarily in secured bank loans, which serve as collateral for the debt securities issued by each particular CLO. None of the collateral was purchased from AFG. AFG’s investments in the subordinate debt tranches of these entities receive residual income from the CLOs only after the CLOs pay expenses (including management fees to AFG), and interest on and returns of capital to senior levels of debt securities. There are no contractual requirements for AFG to provide additional funding for these entities. AFG has not provided and does not intend to provide any financial support to these entities. AFG’s maximum exposure to economic loss on its CLOs is limited to its investment in the CLOs, which had an aggregate fair value of $319 million (including $87 million invested in the most subordinate debt tranches) at June 30, 2015 , and $289 million at December 31, 2014 . In May 2015, AFG formed a new CLO, which issued $511 million face amount of liabilities (including $45 million face amount purchased by subsidiaries of AFG). During the first six months of 2014 , AFG subsidiaries purchased $6 million face amount of senior debt tranches of existing CLOs for $6 million . During the first six months of 2015 and 2014 , AFG subsidiaries received redemption proceeds of $1 million and $54 million , respectively, from its CLO investments. The revenues and expenses of the CLOs are separately identified in AFG’s Statement of Earnings, after the elimination of management fees and earnings attributable to shareholders of AFG as measured by the change in the fair value of AFG’s investments in the CLOs. See Note A — “ Accounting Policies — Managed Investment Entities ,” for a discussion of accounting guidance adopted on January 1, 2015 that impacts the measurement of the fair value of CLO liabilities. Selected financial information related to the CLOs is shown below (in millions): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Gains (losses) on change in fair value of assets/liabilities (a): Assets $ (7 ) $ (1 ) $ 26 $ (2 ) Liabilities 5 (9 ) (31 ) (8 ) Management fees paid to AFG 3 8 7 11 CLO earnings (losses) attributable to (b): AFG shareholders 5 6 8 11 Noncontrolling interests — (18 ) — (18 ) (a) Included in Revenues in AFG’s Statement of Earnings. (b) Included in Earnings before income taxes in AFG’s Statement of Earnings. The aggregate unpaid principal balance of the CLOs’ fixed maturity investments exceeded the fair value of the investments by $63 million and $83 million at June 30, 2015 and December 31, 2014 . The aggregate unpaid principal balance of the CLOs’ debt exceeded its carrying value by $134 million and $131 million at those dates. The CLO assets include $2 million in loans at both June 30, 2015 and December 31, 2014 for which the CLOs are not accruing interest because the loans are in default (aggregate unpaid principal balance of $10 million and $6 million at those dates, respectively).

Goodwill and Other Intangibles

Goodwill and Other Intangibles	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangibles	Goodwill and Other Intangibles There were no changes in the goodwill balance of $201 million during the first six months of 2015 . Included in other assets in AFG’s Balance Sheet is $45 million at June 30, 2015 and $49 million at December 31, 2014 in amortizable intangible assets related to property and casualty insurance acquisitions. These amounts are net of accumulated amortization of $14 million and $91 million , respectively. Amortization of intangibles was $2 million and $5 million in the second quarters and $4 million and $8 million in the first six months of 2015 and 2014 , respectively.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt The carrying value of long-term debt consisted of the following (in millions): June 30, December 31, Direct Senior Obligations of AFG: 9-7/8% Senior Notes due June 2019 $ 350 $ 350 6-3/8% Senior Notes due June 2042 230 230 5-3/4% Senior Notes due August 2042 125 125 7% Senior Notes due September 2050 132 132 Other 3 3 840 840 Direct Subordinated Obligations of AFG: 6-1/4% Subordinated Debentures due September 2054 150 150 Subsidiaries: Notes payable secured by real estate due 2015 through 2016 22 59 National Interstate bank credit facility 12 12 34 71 $ 1,024 $ 1,061 To achieve a desired balance between fixed and variable rate debt, AFG entered into an interest rate swap in June 2015, which effectively converts its 9-7/8% Senior Notes to a floating rate of three-month LIBOR plus 8.099% ( 8.3847% at June 30, 2015). The fair value of the interest rate swap (an asset of $2 million at June 30, 2015) and the offsetting adjustment to the carrying value of the notes are both included in the carrying value of the 9-7/8% Senior Notes in the table above. Scheduled principal payments on debt for the balance of 2015 , the subsequent five years and thereafter were as follows: 2015 — $12 million ; 2016 — $10 million ; 2017 — $12 million ; 2018 — none ; 2019 — $350 million ; 2020 — none and thereafter — $640 million . As shown below (in millions), the majority of AFG’s long-term debt is unsecured obligations of the holding company and its subsidiaries: June 30, December 31, Senior unsecured obligations $ 852 $ 852 Subordinated unsecured obligations 150 150 Obligations secured by real estate 22 59 $ 1,024 $ 1,061 AFG can borrow up to $500 million under its revolving credit facility which expires in December 2016. Amounts borrowed under this agreement bear interest at rates ranging from 1.00% to 1.875% (currently 1.375% ) over LIBOR based on AFG’s credit rating. No amounts were borrowed under this facility at June 30, 2015 or December 31, 2014 . National Interstate can borrow up to $100 million under its unsecured credit agreement, which expires in November 2017. At June 30, 2015 , there was $12 million outstanding under this agreement, bearing interest at 1.28% ( six -month LIBOR plus 0.875% ).

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Shareholders’ Equity AFG is authorized to issue 12.5 million shares of Voting Preferred Stock and 12.5 million shares of Nonvoting Preferred Stock, each without par value. Accumulated Other Comprehensive Income, Net of Tax (“AOCI”) Comprehensive income is defined as all changes in Shareholders’ Equity except those arising from transactions with shareholders. Comprehensive income includes net earnings and other comprehensive income, which consists primarily of changes in net unrealized gains or losses on available for sale securities. The progression of the components of accumulated other comprehensive income follows (in millions): Other Comprehensive Income AOCI Beginning Balance Pretax Tax Net of tax Attributable to noncontrolling interests Attributable to shareholders AOCI Ending Balance Quarter ended June 30, 2015 Net unrealized gains (losses) on securities: Unrealized holding gains (losses) on securities arising during the period $ (329 ) $ 115 $ (214 ) $ 3 $ (211 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) (1 ) — (1 ) — (1 ) Total net unrealized gains (losses) on securities (b) $ 799 (330 ) 115 (215 ) 3 (212 ) $ 587 Net unrealized gains (losses) on cash flow hedges 1 (1 ) — (1 ) — (1 ) — Foreign currency translation adjustments (16 ) — — — — — (16 ) Pension and other postretirement plans adjustments (8 ) — — — — — (8 ) Total $ 776 $ (331 ) $ 115 $ (216 ) $ 3 $ (213 ) $ 563 Quarter ended June 30, 2014 Net unrealized gains on securities: Unrealized holding gains (losses) on securities arising during the period $ 200 $ (70 ) $ 130 $ (3 ) $ 127 Reclassification adjustment for realized (gains) losses included in net earnings (a) (12 ) 4 (8 ) 1 (7 ) Total net unrealized gains on securities $ 685 188 (66 ) 122 (2 ) 120 $ 805 Foreign currency translation adjustments (4 ) 2 — 2 — 2 (2 ) Pension and other postretirement plans adjustments (4 ) — — — — — (4 ) Total $ 677 $ 190 $ (66 ) $ 124 $ (2 ) $ 122 $ 799 Six months ended June 30, 2015 Net unrealized gains (losses) on securities: Unrealized holding gains (losses) on securities arising during the period $ (223 ) $ 78 $ (145 ) $ 2 $ (143 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) (20 ) 7 (13 ) — (13 ) Total net unrealized gains (losses) on securities (b) $ 743 (243 ) 85 (158 ) 2 (156 ) $ 587 Net unrealized gains (losses) on cash flow hedges — — — — — — — Foreign currency translation adjustments (8 ) (8 ) — (8 ) — (8 ) (16 ) Pension and other postretirement plans adjustments (8 ) — — — — — (8 ) Total $ 727 $ (251 ) $ 85 $ (166 ) $ 2 $ (164 ) $ 563 Six months ended June 30, 2014 Net unrealized gains on securities: Unrealized holding gains (losses) on securities arising during the period $ 411 $ (144 ) $ 267 $ (6 ) $ 261 Reclassification adjustment for realized (gains) losses included in net earnings (a) (30 ) 10 (20 ) 1 (19 ) Total net unrealized gains on securities $ 563 381 (134 ) 247 (5 ) 242 $ 805 Foreign currency translation adjustments 1 (3 ) — (3 ) — (3 ) (2 ) Pension and other postretirement plans adjustments (4 ) — — — — — (4 ) Total $ 560 $ 378 $ (134 ) $ 244 $ (5 ) $ 239 $ 799 (a) The reclassification adjustment out of net unrealized gains on securities affected the following lines in AFG’s Consolidated Statement of Earnings: OCI component Affected line in the Consolidated Statement of Earnings Pretax Realized gains (losses) on securities Tax Provision for income taxes Attributable to noncontrolling interests Net earnings (loss) attributable to noncontrolling interests (b) Includes net unrealized gains of $57 million at both June 30, 2015 and March 31, 2015 and $58 million at December 31, 2014 related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings. Stock Incentive Plans Under AFG’s stock incentive plans, employees of AFG and its subsidiaries are eligible to receive equity awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units and stock awards. In the first six months of 2015 , AFG issued 171,130 shares of restricted Common Stock (fair value of $63.15 per share) and granted stock options for 716,818 shares of Common Stock (at an exercise price of $63.15 ) under the Stock Incentive Plan. In addition, AFG issued 54,732 shares of Common Stock (fair value of $62.55 per share) in the first quarter of 2015 under the Equity Bonus Plan. AFG uses the Black-Scholes option pricing model to calculate the fair value of its option grants. The expected dividend yield is based on AFG’s current dividend rate. To determine expected volatility, AFG considers its daily historical volatility as well as implied volatility on traded options. The expected term was estimated based on historical exercise patterns and post vesting cancellations. The risk-free rate for periods associated with the expected term is based upon the U.S. Treasury yield curve in effect on the grant date. Six months ended June 30, 2015 2014 Exercise price $ 63.15 $ 56.44 Expected dividend yield 1.6 % 1.6 % Expected volatility 25 % 26 % Expected term (in years) 7.25 7.25 Risk-free rate 1.88 % 2.20 % Grant date fair value $ 15.29 $ 14.65 Total compensation expense related to stock incentive plans of AFG and its subsidiaries was $7 million in both the second quarter of 2015 and 2014 and $13 million and $14 million in the first six months of 2015 and 2014 , respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The following is a reconciliation of income taxes at the statutory rate of 35% to the provision for income taxes as shown in the Statement of Earnings (dollars in millions): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Amount % of EBT Amount % of EBT Amount % of EBT Amount % of EBT Earnings before income taxes (“EBT”) $ 226 $ 130 $ 256 $ 291 Income taxes at statutory rate $ 80 35 % $ 46 35 % $ 90 35 % $ 102 35 % Effect of: Tax exempt interest (7 ) (3 %) (7 ) (5 %) (14 ) (5 %) (12 ) (4 %) Change in valuation allowance 1 — % 2 2 % — — % 3 1 % Losses of managed investment entities — — % 6 5 % — — % 6 2 % Subsidiaries not in AFG’s tax return 1 — % (2 ) (2 %) 2 1 % (1 ) — % Other 2 2 % 2 1 % 4 1 % 3 1 % Provision for income taxes as shown in the Statement of Earnings $ 77 34 % $ 47 36 % $ 82 32 % $ 101 35 % During the first six months of 2015 , there were no material changes to AFG’s liability for uncertain tax positions.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies As discussed in Note B — “ Acquisitions and Sale of Businesses ,” AFG recorded a $162 million pretax loss in the first six months of 2015 to establish a liability (included in other liabilities in AFG’s Balance Sheet) that effectively reduces the net carrying value of the assets and liabilities to be disposed in the pending sale of its run-off long-term care business to equal the estimated net sale proceeds from the sale. There have been no significant changes to the matters discussed and referred to in Note M — “Contingencies” of AFG’s 2014 Form 10-K, which covers property and casualty insurance reserves for claims related to environmental exposures, asbestos and other mass tort claims, as well as environmental and occupational injury and disease claims of former subsidiary railroad and manufacturing operations.

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements for American Financial Group, Inc. and its subsidiaries (“AFG”) are unaudited; however, management believes that all adjustments (consisting only of normal recurring accruals unless otherwise disclosed herein) necessary for fair presentation have been made. The results of operations for interim periods are not necessarily indicative of results to be expected for the year. The financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes necessary to be in conformity with U.S. generally accepted accounting principles (“GAAP”). Certain reclassifications have been made to prior periods to conform to the current year’s presentation. All significant intercompany balances and transactions have been eliminated. The results of operations of companies since their formation or acquisition are included in the consolidated financial statements. Events or transactions occurring subsequent to June 30, 2015 , and prior to the filing of this Form 10-Q, have been evaluated for potential recognition or disclosure herein. The preparation of the financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Changes in circumstances could cause actual results to differ materially from those estimates.
Fair Value Measurements	Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. The standards establish a hierarchy of valuation techniques based on whether the assumptions that market participants would use in pricing the asset or liability (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect AFG’s assumptions about the assumptions market participants would use in pricing the asset or liability. Other than recording an estimated loss on the pending sale of its long-term care business (see Note B — “ Acquisitions and Sale of Businesses ” ), AFG did not have any significant nonrecurring fair value measurements in the first six months of 2015 .
Investments	Investments Fixed maturity and equity securities classified as “available for sale” are reported at fair value with unrealized gains and losses included in accumulated other comprehensive income (“AOCI”) in AFG’s Balance Sheet. Fixed maturity and equity securities classified as “trading” are reported at fair value with changes in unrealized holding gains or losses during the period included in net investment income. Mortgage and policy loans are carried primarily at the aggregate unpaid balance. Premiums and discounts on fixed maturity securities are amortized using the interest method. Mortgage-backed securities (“MBS”) are amortized over a period based on estimated future principal payments, including prepayments. Prepayment assumptions are reviewed periodically and adjusted to reflect actual prepayments and changes in expectations. Gains or losses on securities are determined on the specific identification basis. When a decline in the value of a specific investment is considered to be other-than-temporary at the balance sheet date, a provision for impairment is charged to earnings (included in realized gains (losses) on securities) and the cost basis of that investment is reduced. If management can assert that it does not intend to sell an impaired fixed maturity security and it is not more likely than not that it will have to sell the security before recovery of its amortized cost basis, then the other-than-temporary impairment is separated into two components: (i) the amount related to credit losses (recorded in earnings) and (ii) the amount related to all other factors (recorded in other comprehensive income). The credit-related portion of an other-than-temporary impairment is measured by comparing a security’s amortized cost to the present value of its current expected cash flows discounted at its effective yield prior to the impairment charge. Both components are shown in the Statement of Earnings. If management intends to sell an impaired security, or it is more likely than not that it will be required to sell the security before recovery, an impairment charge to earnings is recorded to reduce the amortized cost of that security to fair value.
Derivatives	Derivatives Derivatives included in AFG’s Balance Sheet are recorded at fair value. Changes in fair value of derivatives are included in earnings, unless the derivatives are designated and qualify as highly effective cash flow hedges. Derivatives that do not qualify for hedge accounting under GAAP consist primarily of (i) components of certain fixed maturity securities (primarily interest-only MBS) and (ii) the equity-based component of certain annuity products (included in annuity benefits accumulated) and related call options (included in other investments) designed to be consistent with the characteristics of the liabilities and used to mitigate the risk embedded in those annuity products. To qualify for hedge accounting, at the inception of a derivative contract, AFG formally documents the relationship between the terms of the hedge and the hedged items and its risk management objective. This documentation includes defining how hedge effectiveness and ineffectiveness will be measured on a retrospective and prospective basis. Changes in the fair value of derivatives that are designated and qualify as highly effective cash flow hedges are recorded in AOCI and are reclassified into earnings when the variability of the cash flows from the hedged items impacts earnings. Any hedge ineffectiveness is immediately recorded in current period earnings. When the change in the fair value of a qualifying cash flow hedge is included in earnings, it is included in the same line item in the Consolidated Statement of Earnings as the cash flows from the hedged item. AFG uses interest rate swaps that qualify as highly effective cash flow hedges to mitigate interest rate risk related to certain floating-rate securities included in AFG’s portfolio of fixed maturity securities. For derivatives that are designated and qualify as highly effective fair value hedges, changes in the fair value of the derivative, along with changes in the fair value of the hedged item attributable to the hedged risk, are recognized in current period earnings. AFG has entered into an interest rate swap that qualifies as a highly effective fair value hedge to mitigate the interest rate risk associated with fixed-rate long-term debt by economically converting certain fixed-rate debt obligations to floating-rate obligations. Since the terms of the swap match the terms of the hedged debt, changes in the fair value of the swap are offset by changes in the fair value of the hedged debt attributable to changes in interest rates. Accordingly, the net impact on AFG’s current period earnings is that the interest expense associated with the hedged debt is effectively recorded at the floating rate.
Goodwill	Goodwill Goodwill represents the excess of cost of subsidiaries over AFG’s equity in their underlying net assets. Goodwill is not amortized, but is subject to an impairment test at least annually. An entity is not required to complete the quantitative annual goodwill impairment test on a reporting unit if the entity elects to perform a qualitative analysis and determines that it is more likely than not that the reporting unit’s fair value exceeds its carrying amount.
Reinsurance	Reinsurance Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policies. AFG’s property and casualty insurance subsidiaries report as assets (i) the estimated reinsurance recoverable on paid and unpaid losses, including an estimate for losses incurred but not reported, and (ii) amounts paid or due to reinsurers applicable to the unexpired terms of policies in force. Payable to reinsurers includes ceded premiums due to reinsurers as well as ceded premiums retained by AFG’s property and casualty insurance subsidiaries under contracts to fund ceded losses as they become due. AFG’s insurance subsidiaries also assume reinsurance from other companies. Earnings on reinsurance assumed is recognized based on information received from ceding companies. A subsidiary cedes life insurance policies to a third party on a funds withheld basis whereby the subsidiary retains the assets (securities) associated with the reinsurance contract. Interest is credited to the reinsurer based on the actual investment performance of the retained assets. This reinsurance contract is considered to contain an embedded derivative (that must be adjusted to fair value) because the yield on the payable is based on a specific block of the ceding company’s assets, rather than the overall creditworthiness of the ceding company. AFG determined that changes in the fair value of the underlying portfolio of fixed maturity securities is an appropriate measure of the value of the embedded derivative. The securities related to this contract are classified as “trading.” The adjustment to fair value on the embedded derivative offsets the investment income recorded on the adjustment to fair value of the related trading portfolio.
Deferred Policy Acquisition Costs (DPAC)	Deferred Policy Acquisition Costs (“DPAC”) Policy acquisition costs (principally commissions, premium taxes and certain underwriting and policy issuance costs) directly related to the successful acquisition or renewal of an insurance contract are deferred. DPAC also includes capitalized costs associated with sales inducements offered to fixed annuity policyholders such as enhanced interest rates and premium and persistency bonuses. For the property and casualty companies, DPAC is limited based upon recoverability without any consideration for anticipated investment income and is charged against income ratably over the terms of the related policies. A premium deficiency is recognized if the sum of expected claims costs, claims adjustment expenses and unamortized acquisition costs exceed the related unearned premiums. A premium deficiency is first recognized by charging any unamortized acquisition costs to expense to the extent required to eliminate the deficiency. If the premium deficiency is greater than unamortized acquisition costs, a liability is accrued for the excess deficiency and reported with unpaid losses and loss adjustment expenses. DPAC related to annuities is deferred to the extent deemed recoverable and amortized, with interest, in relation to the present value of actual and expected gross profits on the policies. Expected gross profits consist principally of estimated future investment margin (estimated future net investment income less interest credited on policyholder funds) and surrender, mortality, and other life and annuity policy charges, less death, annuitization and guaranteed withdrawal benefits in excess of account balances and estimated future policy administration expenses. To the extent that realized gains and losses result in adjustments to the amortization of DPAC related to annuities, such adjustments are reflected as components of realized gains (losses) on securities. DPAC related to traditional life and health insurance is amortized over the expected premium paying period of the related policies, in proportion to the ratio of annual premium revenues to total anticipated premium revenues. See “ Life, Accident and Health Reserves ” below for details on the impact of loss recognition on the accounting for traditional life and health insurance contracts. DPAC includes the present value of future profits on business in force of annuity and life, accident and health insurance companies acquired (“PVFP”). PVFP represents the portion of the costs to acquire companies that is allocated to the value of the right to receive future cash flows from insurance contracts existing at the date of acquisition. PVFP is amortized with interest in relation to expected gross profits of the acquired policies for annuities and universal life products and in relation to the premium paying period for traditional life and health insurance products. DPAC and certain other balance sheet amounts related to annuity, long-term care and life businesses are also adjusted, net of tax, for the change in expense that would have been recorded if the unrealized gains (losses) from securities had actually been realized. These adjustments are included in unrealized gains (losses) on marketable securities, a component of AOCI in AFG’s Balance Sheet.
Managed Investment Entities	Managed Investment Entities A company is considered the primary beneficiary of, and therefore must consolidate, a variable interest entity (“VIE”) based primarily on its ability to direct the activities of the VIE that most significantly impact that entity’s economic performance and the obligation to absorb losses of, or receive benefits from, the entity that could potentially be significant to the VIE. AFG manages, and has investments in, collateralized loan obligations (“CLOs”) that are VIEs (see Note H — “ Managed Investment Entities ” ). Both the management fees (payment of which is subordinate to other obligations of the CLOs) and the investments in the CLOs are considered variable interests. AFG has determined that it is the primary beneficiary of the CLOs because (i) its role as asset manager gives it the power to direct the activities that most significantly impact the economic performance of the CLOs and (ii) it has exposure to CLO losses (through its investments in the CLO debt tranches) and the right to receive benefits (through its subordinated management fees and returns on its investments), both of which could potentially be significant to the CLOs. In February 2015, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2015-02, which amends certain consolidation accounting guidance, including the VIE guidance that applies to collateralized financing entities such as CLOs. The new guidance, which AFG intends to adopt effective January 1, 2016, will affect how fee arrangements with CLO asset managers impact the determination of the primary beneficiary of these entities. Due to the significance of AFG’s investments in the CLOs that it manages, management does not expect the new guidance to impact the consolidation of its currently outstanding CLOs. The new guidance also impacts the consolidation analysis that applies to limited partnerships and similar entities. Management does not expect this guidance to impact the accounting for AFG’s existing investments in those entities. Because AFG has no right to use the CLO assets and no obligation to pay the CLO liabilities, the assets and liabilities of the CLOs are shown separately in AFG’s Balance Sheet. AFG has elected the fair value option for reporting on the CLO assets and liabilities to improve the transparency of financial reporting related to the CLOs. The net gain or loss from accounting for the CLO assets and liabilities at fair value is presented separately in AFG’s Statement of Earnings. Effective January 1, 2015, AFG adopted (on a modified retrospective basis) ASU 2014-13, which addresses the diversity in practice regarding the accounting for assets and liabilities of a consolidated collateralized financing entity (such as a CLO) when an election has been made to account for that entity’s assets and liabilities at fair value. The fair values of a CLO’s assets may differ from the separately measured fair values of its liabilities even though the CLO liabilities only have recourse to the CLO assets. Under the new guidance, AFG has elected to set the carrying value of the CLO liabilities equal to the fair value of the CLO assets (which have more observable fair values) as an alternative to reporting those liabilities at a separately measured fair value. CLO earnings attributable to AFG’s shareholders continue to be measured by the change in the fair value of AFG’s investments in the CLOs and management fees earned. Prior to the adoption of this guidance, measuring both the CLO assets and CLO liabilities at separately determined fair values resulted in a difference between the carrying value of the CLO assets and the carrying value of the CLO liabilities that was not attributable to AFG’s ownership interest in the CLOs and CLO earnings (losses) that were not attributable to AFG’s shareholders. Accordingly, in periods prior to 2015, the difference between the fair value of the CLO assets and the fair value of the CLO liabilities was recorded as “appropriated retained earnings — managed investment entities” in AFG’s Balance Sheet and the earnings (losses) that were not attributable to AFG’s shareholders were included in net earnings (loss) attributable to noncontrolling interests in AFG’s Statement of Earnings. Under the guidance adopted in 2015, there is no longer any excess carrying value of CLO assets over the carrying value of CLO liabilities to be reported as “appropriated retained earnings — managed investment entities” in AFG’s Balance Sheet or any CLO earnings to be attributed to noncontrolling interests in AFG’s Statement of Earnings. In accordance with the guidance, the amount reported as “appropriated retained earnings — managed investment entities” at December 31, 2014 was reclassified to “liabilities of managed investment entities” on January 1, 2015 as the cumulative effect of an accounting change. While the new guidance impacted the presentation of individual CLO-related line items in AFG’s Statement of Earnings, it had no overall impact on AFG’s Net Earnings Attributable to Shareholders.
Unpaid Losses and Loss Adjustment Expenses	Unpaid Losses and Loss Adjustment Expenses The net liabilities stated for unpaid claims and for expenses of investigation and adjustment of unpaid claims represent management’s best estimate and are based upon (i) the accumulation of case estimates for losses reported prior to the close of the accounting period on direct business written; (ii) estimates received from ceding reinsurers and insurance pools and associations; (iii) estimates of unreported losses (including possible development on known claims) based on past experience; (iv) estimates based on experience of expenses for investigating and adjusting claims; and (v) the current state of the law and coverage litigation. Establishing reserves for asbestos, environmental and other mass tort claims involves considerably more judgment than other types of claims due to, among other things, inconsistent court decisions, an increase in bankruptcy filings as a result of asbestos-related liabilities, novel theories of coverage, and judicial interpretations that often expand theories of recovery and broaden the scope of coverage. Loss reserve liabilities are subject to the impact of changes in claim amounts and frequency and other factors. Changes in estimates of the liabilities for losses and loss adjustment expenses are reflected in the Statement of Earnings in the period in which determined. Despite the variability inherent in such estimates, management believes that the liabilities for unpaid losses and loss adjustment expenses are adequate.
Annuity Benefits Accumulated	Annuity Benefits Accumulated Annuity receipts and benefit payments are recorded as increases or decreases in annuity benefits accumulated rather than as revenue and expense. Increases in this liability for interest credited are charged to expense and decreases for policy charges are credited to other income. For certain products, annuity benefits accumulated also includes reserves for accrued persistency and premium bonuses, guaranteed withdrawals and excess benefits expected to be paid on future deaths and annuitizations (“EDAR”). The liabilities for EDAR and guaranteed withdrawals are accrued for and modified using assumptions consistent with those used in determining DPAC and DPAC amortization, except that amounts are determined in relation to the present value of total expected assessments. Total expected assessments consist principally of estimated future investment margin, surrender, mortality, and other life and annuity policy charges, and unearned revenues once they are recognized as income. Annuity benefits accumulated also includes amounts advanced from the Federal Home Loan Bank of Cincinnati.
Unearned Revenue	Unearned Revenue Certain upfront policy charges on annuities are deferred as unearned revenue (included in other liabilities) and recognized in net earnings using the same assumptions and estimated gross profits used to amortize DPAC.
Life, Accident and Health Reserves	Life, Accident and Health Reserves Liabilities for future policy benefits under traditional life, accident and health policies are computed using the net level premium method. Computations are based on the original projections of investment yields, mortality, morbidity and surrenders and include provisions for unfavorable deviations unless a loss recognition event (premium deficiency) occurs. Claim reserves and liabilities established for accident and health claims are modified as necessary to reflect actual experience and developing trends. For long-duration contracts (such as traditional life and long-term care policies), loss recognition occurs when, based on current expectations as of the measurement date, existing contract liabilities plus the present value of future premiums (including reasonably expected rate increases) are not expected to cover the present value of future claims payments and related settlement and maintenance costs (excluding overhead) as well as unamortized acquisition costs. If a block of business is determined to be in loss recognition, a charge is recorded in earnings in an amount equal to the excess of the present value of expected future claims costs and unamortized acquisition costs over existing reserves plus the present value of expected future premiums (with no provision for adverse deviation). The charge is recorded first to reduce unamortized acquisition costs and then as an additional reserve (if unamortized acquisition costs have been reduced to zero). In addition, reserves for traditional life and long-term care policies are subject to adjustment for loss recognition charges that would have been recorded if the unrealized gains from securities had actually been realized. This adjustment is included in unrealized gains (losses) on marketable securities, a component of AOCI in AFG’s Balance Sheet.
Variable Annuity Assets and Liabilities	Variable Annuity Assets and Liabilities Separate accounts related to variable annuities represent the fair value of deposits invested in underlying investment funds on which AFG earns a fee. Investment funds are selected and may be changed only by the policyholder, who retains all investment risk. AFG’s variable annuity contracts contain a guaranteed minimum death benefit (“GMDB”) to be paid if the policyholder dies before the annuity payout period commences. In periods of declining equity markets, the GMDB may exceed the value of the policyholder’s account. A GMDB liability is established for future excess death benefits using assumptions together with a range of reasonably possible scenarios for investment fund performance that are consistent with DPAC capitalization and amortization assumptions.
Premium Recognition	Premium Recognition Property and casualty premiums are earned generally over the terms of the policies on a pro rata basis. Unearned premiums represent that portion of premiums written which is applicable to the unexpired terms of policies in force. On reinsurance assumed from other insurance companies or written through various underwriting organizations, unearned premiums are based on information received from such companies and organizations. For traditional life, accident and health products, premiums are recognized as revenue when legally collectible from policyholders. For interest-sensitive life and universal life products, premiums are recorded in a policyholder account, which is reflected as a liability. Revenue is recognized as amounts are assessed against the policyholder account for mortality coverage and contract expenses.
Noncontrolling Interests	Noncontrolling Interests For Balance Sheet purposes, noncontrolling interests represents the interests of shareholders other than AFG in consolidated entities. In the Statement of Earnings, net earnings and losses attributable to noncontrolling interests represents such shareholders’ interest in the earnings and losses of those entities.
Income Taxes	Income Taxes Deferred income taxes are calculated using the liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between financial reporting and tax bases and are measured using enacted tax rates. A valuation allowance is established to reduce total deferred tax assets to an amount that will more likely than not be realized. AFG recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained under examination by the appropriate taxing authority. Interest and penalties on AFG’s reserve for uncertain tax positions are recognized as a component of tax expense.
Stock-Based Compensation	Stock-Based Compensation All share-based grants are recognized as compensation expense on a straight-line basis over their vesting periods based on their calculated fair value at the date of grant. AFG uses the Black-Scholes pricing model to measure the fair value of employee stock options. See Note K — “ Shareholders’ Equity ” for further information.
Benefit Plans	Benefit Plans AFG provides retirement benefits to qualified employees of participating companies through the AFG 401(k) Retirement and Savings Plan, a defined contribution plan. AFG makes all contributions to the retirement fund portion of the plan and matches a percentage of employee contributions to the savings fund. Company contributions are expensed in the year for which they are declared. AFG and many of its subsidiaries provide health care and life insurance benefits to eligible retirees. AFG also provides postemployment benefits to former or inactive employees (primarily those on disability) who were not deemed retired under other company plans. The projected future cost of providing these benefits is expensed over the period employees earn such benefits.
Earnings Per Share	Earnings Per Share Although basic earnings per share only considers shares of common stock outstanding during the period, the calculation of diluted earnings per share includes the following adjustments to weighted average common shares related to stock-based compensation plans: second quarter of 2015 and 2014 — 1.8 million and 2.0 million ; first six months of 2015 and 2014 — 1.8 million and 2.0 million , respectively. AFG’s weighted average diluted shares outstanding excludes the following anti-dilutive potential common shares related to stock compensation plans: second quarter of 2015 and 2014 — 1.5 million and 1.2 million ; first six months of 2015 and 2014 — 1.4 million and 0.9 million , respectively. Adjustments to net earnings attributable to shareholders in the calculation of diluted earnings per share were nominal in the 2015 and 2014 periods.
Statement of Cash Flows	Statement of Cash Flows For cash flow purposes, “investing activities” are defined as making and collecting loans and acquiring and disposing of debt or equity instruments and property and equipment. “Financing activities” include obtaining resources from owners and providing them with a return on their investments, borrowing money and repaying amounts borrowed. Annuity receipts, surrenders, benefits and withdrawals are also reflected as financing activities. All other activities are considered “operating.” Short-term investments having original maturities of three months or less when purchased are considered to be cash equivalents for purposes of the financial statements.

Acquisitions and Sale of Busi22

Acquisitions and Sale of Businesses (Tables)	6 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Schedule of estimated fair values of assets acquired and liabilities assumed	The allocation of the purchase price is shown in the table below (in millions): Total purchase price $ 259 Tangible assets acquired: Cash and cash equivalents $ 1,078 Fixed maturities, available for sale 92 Recoverables from reinsurers 116 Agents’ balances and premiums receivable 41 Deferred tax assets, net (a) 67 Other receivables 21 Other assets 11 Total tangible assets acquired 1,426 Liabilities acquired: Unpaid losses and loss adjustment expenses 1,142 Unearned premiums 3 Payable to reinsurers 3 Other liabilities 66 Total liabilities acquired 1,214 Net tangible assets acquired, at fair value 212 Excess purchase price over net tangible assets acquired $ 47 Allocation of excess purchase price: Intangible assets acquired (b) $ 47 Deferred tax on intangible assets acquired (a) (16 ) Goodwill 16 $ 47 (a) Included with AFG’s net deferred tax liabilities, which are included in Other liabilities in AFG’s Consolidated Balance Sheet. (b) Included in Other assets in AFG’s Consolidated Balance Sheet.
Summarized financial information	The estimated impact of the pending sale of the run-off long-term care insurance business, which was recorded in AFG’s financial statements as of March 31, 2015, is shown below (in millions): Estimated sale proceeds (*) $ 14 Assets of businesses sold: Cash and investments $ 1,397 Recoverables from reinsurers 603 Deferred policy acquisition costs 15 Other receivables 14 Other assets 7 Goodwill 2 Total assets 2,038 Liabilities of businesses sold: Annuity benefits accumulated 270 Life, accident and health reserves 1,537 Other liabilities 27 Total liabilities 1,834 Reclassify net unrealized gain on marketable securities 28 Net assets of businesses sold $ 176 Pretax loss on subsidiaries recorded in the first quarter of 2015 $ (162 ) (*) Includes fair value of the potential additional consideration and is shown net of estimated expenses. Revenues, costs and expenses, and earnings before income taxes for the subsidiaries to be sold were (in millions): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Life, accident and health net earned premiums: Long-term care $ 20 $ 19 $ 37 $ 38 Life operations 2 2 5 5 Net investment income 19 18 37 39 Realized gains (losses) on securities and other income — 1 (2 ) 2 Total revenues 41 40 77 84 Annuity benefits 2 2 4 4 Life, accident and health benefits: Long-term care 25 28 46 57 Life operations 2 3 5 6 Annuity and supplemental insurance acquisition expenses 3 4 6 7 Other expenses 5 3 9 7 Total costs and expenses 37 40 70 81 Earnings before income taxes $ 4 $ — $ 7 $ 3

Segments of Operations (Tables)

Segments of Operations (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Segment Reporting Information, by Segment	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, 2015 2014 2015 2014 Revenues Property and casualty insurance: Premiums earned: Specialty Property and transportation $ 327 $ 324 $ 640 $ 625 Specialty casualty 503 467 993 780 Specialty financial 129 116 249 233 Other specialty 26 24 49 47 Total premiums earned 985 931 1,931 1,685 Net investment income 83 76 162 143 Other income (*) 53 2 59 4 Total property and casualty insurance 1,121 1,009 2,152 1,832 Annuity: Net investment income 306 289 598 564 Other income 22 19 46 37 Total annuity 328 308 644 601 Run-off long-term care and life 49 48 95 99 Other 44 15 88 40 Total revenues before realized gains (losses) 1,542 1,380 2,979 2,572 Realized gains (losses) on securities (1 ) 12 18 31 Realized loss on subsidiaries — — (162 ) — Total revenues $ 1,541 $ 1,392 $ 2,835 $ 2,603 (*) Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015 . Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Earnings Before Income Taxes Property and casualty insurance: Underwriting: Specialty Property and transportation $ (13 ) $ (18 ) $ (6 ) $ (12 ) Specialty casualty 37 30 65 68 Specialty financial 24 15 46 25 Other specialty 3 2 6 7 Other lines (1 ) — (1 ) (1 ) Total underwriting 50 29 110 87 Investment and other income, net (a) 124 62 197 116 Total property and casualty insurance 174 91 307 203 Annuity 88 84 163 157 Run-off long-term care and life 4 (2 ) 8 (4 ) Other (b) (39 ) (55 ) (78 ) (96 ) Total earnings before realized gains (losses) and income taxes 227 118 400 260 Realized gains (losses) on securities (1 ) 12 18 31 Realized loss on subsidiaries — — (162 ) — Total earnings before income taxes $ 226 $ 130 $ 256 $ 291 (a) Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015 . (b) Includes holding company expenses. Also includes losses of managed investment entities attributable to noncontrolling interest of $18 million for both the second quarter and the first six months of 2014 . Following the adoption of new guidance in the first quarter of 2015, there are no longer earnings (losses) of managed investment entities that are attributable to noncontrolling interests. See Note A — “ Accounting Policies — Managed Investment Entities .”

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Assets and liabilities measured at fair value	Assets and liabilities measured and carried at fair value in the financial statements are summarized below (in millions): Level 1 Level 2 Level 3 Total June 30, 2015 Assets: Available for sale (“AFS”) fixed maturities: U.S. Government and government agencies $ 142 $ 204 $ 15 $ 361 States, municipalities and political subdivisions — 6,996 84 7,080 Foreign government — 177 — 177 Residential MBS — 3,818 296 4,114 Commercial MBS — 2,275 48 2,323 Asset-backed securities (“ABS”) — 4,051 332 4,383 Corporate and other 48 13,177 597 13,822 Total AFS fixed maturities 190 30,698 1,372 32,260 Trading fixed maturities 13 266 — 279 Equity securities 1,396 190 118 1,704 Assets of managed investment entities (“MIE”) 243 3,357 29 3,629 Variable annuity assets (separate accounts) (*) — 655 — 655 Other investments — derivatives — 278 — 278 Other assets — derivatives — 1 — 1 Total assets accounted for at fair value $ 1,842 $ 35,445 $ 1,519 $ 38,806 Liabilities: Liabilities of managed investment entities $ 222 $ 3,061 $ 26 $ 3,309 Derivatives in annuity benefits accumulated — — 1,258 1,258 Derivatives in long-term debt — (2 ) — (2 ) Other liabilities — derivatives — 10 — 10 Total liabilities accounted for at fair value $ 222 $ 3,069 $ 1,284 $ 4,575 December 31, 2014 Assets: Available for sale fixed maturities: U.S. Government and government agencies $ 164 $ 174 $ 15 $ 353 States, municipalities and political subdivisions — 6,647 100 6,747 Foreign government — 194 — 194 Residential MBS — 4,142 300 4,442 Commercial MBS — 2,407 44 2,451 Asset-backed securities — 3,661 226 3,887 Corporate and other 36 12,078 546 12,660 Total AFS fixed maturities 200 29,303 1,231 30,734 Trading fixed maturities 12 254 — 266 Equity securities 1,306 297 93 1,696 Assets of managed investment entities 174 2,903 31 3,108 Variable annuity assets (separate accounts) (*) — 662 — 662 Other investments — derivatives — 322 — 322 Total assets accounted for at fair value $ 1,692 $ 33,741 $ 1,355 $ 36,788 Liabilities: Liabilities of managed investment entities $ 118 $ — $ 2,701 $ 2,819 Derivatives in annuity benefits accumulated — — 1,160 1,160 Other liabilities — derivatives — 13 — 13 Total liabilities accounted for at fair value $ 118 $ 13 $ 3,861 $ 3,992 (*) Variable annuity liabilities equal the fair value of variable annuity assets.
Unobservable inputs used by management in determining fair value of embedded derivatives	The following table presents information about the unobservable inputs used by management in determining fair value of these embedded derivatives. See Note F — “ Derivatives .” Unobservable Input Range Adjustment for insurance subsidiary’s credit risk 0.30% – 2.10% over the risk free rate Risk margin for uncertainty in cash flows 0.52% reduction in the discount rate Surrenders 4% – 16% of indexed account value Partial surrenders 2% – 10% of indexed account value Annuitizations 1% – 1.5% of indexed account value Deaths 1.5% – 3.0% of indexed account value Budgeted option costs 2.0% – 3.25% of indexed account value
Changes in balances of Level 3 financial assets and liabilities	Changes in balances of Level 3 financial assets and liabilities carried at fair value during the second quarter and first six months of 2015 and 2014 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. All transfers are reflected in the table at fair value as of the end of the reporting period. Total realized/unrealized gains (losses) included in Balance at March 31, 2015 Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at June 30, 2015 AFS fixed maturities: U.S. government agency $ 15 $ — $ — $ — $ — $ — $ — $ 15 State and municipal 61 — (2 ) 25 — — — 84 Residential MBS 306 (1 ) (2 ) — (9 ) 16 (14 ) 296 Commercial MBS 44 — — — — 4 — 48 Asset-backed securities 211 1 — 115 (7 ) 12 — 332 Corporate and other 583 (3 ) (17 ) 35 (11 ) 10 — 597 Equity securities 84 (4 ) 3 35 — — — 118 Assets of MIE 29 (4 ) — 4 — — — 29 Embedded derivatives (1,243 ) 19 — (48 ) 14 — — (1,258 ) Total realized/unrealized gains (losses) included in Balance at March 31, 2014 Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at June 30, 2014 AFS fixed maturities: U.S. government agency $ 15 $ — $ — $ — $ — $ — $ — $ 15 State and municipal 61 — — — — — — 61 Residential MBS 272 2 2 — (7 ) 6 (19 ) 256 Commercial MBS 28 — — — — — — 28 Asset-backed securities 206 3 — 10 (15 ) — — 204 Corporate and other 322 4 — 20 (30 ) — (3 ) 313 Equity securities 41 — 2 16 — 22 — 81 Assets of MIE 29 (1 ) — — (1 ) — — 27 Liabilities of MIE (*) (2,322 ) (9 ) — (155 ) 164 — — (2,322 ) Embedded derivatives (904 ) (78 ) — (56 ) 12 — — (1,026 ) (*) Total realized/unrealized gains (losses) included in net income includes gains of $1 million related to liabilities outstanding as of June 30, 2014 . See Note H — “ Managed Investment Entities .” Total realized/unrealized gains (losses) included in Balance at December 31, 2014 Impact of accounting change (*) Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at June 30, 2015 AFS fixed maturities: U.S. government agency $ 15 $ — $ — $ — $ — $ — $ — $ — $ 15 State and municipal 100 — — (2 ) 25 — — (39 ) 84 Residential MBS 300 — (2 ) 1 — (16 ) 57 (44 ) 296 Commercial MBS 44 — — — — — 4 — 48 Asset-backed securities 226 — 1 — 120 (48 ) 33 — 332 Corporate and other 546 — (3 ) (11 ) 79 (24 ) 10 — 597 Equity securities 93 — (4 ) 1 45 — — (17 ) 118 Assets of MIE 31 — (6 ) — 4 — — — 29 Liabilities of MIE (2,701 ) 2,701 — — — — — — — Embedded derivatives (1,160 ) — (31 ) — (95 ) 28 — — (1,258 ) (*) The impact of implementing new guidance adopted in 2015, as discussed above and in Note A — “ Accounting Policies — Managed Investment Entities .” Total realized/unrealized gains (losses) included in Balance at December 31, 2013 Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at June 30, 2014 AFS fixed maturities: U.S. government agency $ 15 $ — $ — $ — $ — $ — $ — $ 15 State and municipal 61 — — — — — — 61 Residential MBS 316 3 6 — (15 ) 38 (92 ) 256 Commercial MBS 28 — — — — — — 28 Asset-backed securities 75 3 1 60 (16 ) 81 — 204 Corporate and other 335 5 3 21 (46 ) — (5 ) 313 Equity securities 31 1 4 46 (9 ) 22 (14 ) 81 Assets of MIE 30 (2 ) — — (1 ) — — 27 Liabilities of MIE (*) (2,411 ) (8 ) — (200 ) 297 — — (2,322 ) Embedded derivatives (804 ) (132 ) — (111 ) 21 — — (1,026 ) (*) Total realized/unrealized gains (losses) included in net income includes gains of $5 million related to liabilities outstanding as of June 30, 2014 . See Note H — “ Managed Investment Entities .”
Fair value of financial instruments	The carrying value and fair value of financial instruments that are not carried at fair value in the financial statements are summarized below (in millions): Carrying Value Fair Value Level 1 Level 2 Level 3 June 30, 2015 Financial assets: Cash and cash equivalents $ 1,216 $ 1,216 $ 1,216 $ — $ — Mortgage loans 1,054 1,058 — — 1,058 Policy loans 223 223 — — 223 Total financial assets not accounted for at fair value $ 2,493 $ 2,497 $ 1,216 $ — $ 1,281 Financial liabilities: Annuity benefits accumulated (*) $ 25,002 $ 24,291 $ — $ — $ 24,291 Long-term debt 1,026 1,120 — 1,083 37 Total financial liabilities not accounted for at fair value $ 26,028 $ 25,411 $ — $ 1,083 $ 24,328 December 31, 2014 Financial assets: Cash and cash equivalents $ 1,343 $ 1,343 $ 1,343 $ — $ — Mortgage loans 1,117 1,124 — — 1,124 Policy loans 228 228 — — 228 Total financial assets not accounted for at fair value $ 2,688 $ 2,695 $ 1,343 $ — $ 1,352 Financial liabilities: Annuity benefits accumulated (*) $ 23,561 $ 23,187 $ — $ — $ 23,187 Long-term debt 1,061 1,180 — 1,106 74 Total financial liabilities not accounted for at fair value $ 24,622 $ 24,367 $ — $ 1,106 $ 23,261 (*) Excludes $201 million and $203 million of life contingent annuities in the payout phase at June 30, 2015 and December 31, 2014 , respectively.

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Available for sale fixed maturities and equity securities	Available for sale fixed maturities and equity securities at June 30, 2015 and December 31, 2014 , consisted of the following (in millions): June 30, 2015 December 31, 2014 Amortized Cost Fair Value Gross Unrealized Amortized Cost Fair Value Gross Unrealized Gains Losses Gains Losses Fixed maturities: U.S. Government and government agencies $ 356 $ 361 $ 7 $ (2 ) $ 347 $ 353 $ 8 $ (2 ) States, municipalities and political subdivisions 6,869 7,080 265 (54 ) 6,393 6,747 364 (10 ) Foreign government 167 177 10 — 184 194 10 — Residential MBS 3,756 4,114 371 (13 ) 4,046 4,442 411 (15 ) Commercial MBS 2,204 2,323 120 (1 ) 2,294 2,451 158 (1 ) Asset-backed securities 4,355 4,383 42 (14 ) 3,872 3,887 37 (22 ) Corporate and other 13,298 13,822 609 (85 ) 11,938 12,660 751 (29 ) Total fixed maturities $ 31,005 $ 32,260 $ 1,424 $ (169 ) $ 29,074 $ 30,734 $ 1,739 $ (79 ) Common stocks $ 889 $ 1,076 $ 217 $ (30 ) $ 885 $ 1,087 $ 227 $ (25 ) Perpetual preferred stocks $ 443 $ 459 $ 21 $ (5 ) $ 398 $ 414 $ 21 $ (5 )
Available for sale securities in a continuous unrealized loss position	The following tables show gross unrealized losses (dollars in millions) on fixed maturities and equity securities by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2015 and December 31, 2014 . Less Than Twelve Months Twelve Months or More Unrealized Loss Fair Value Fair Value as % of Cost Unrealized Loss Fair Value Fair Value as % of Cost June 30, 2015 Fixed maturities: U.S. Government and government agencies $ — $ 55 100 % $ (2 ) $ 15 88 % States, municipalities and political subdivisions (50 ) 2,059 98 % (4 ) 55 93 % Residential MBS (5 ) 338 99 % (8 ) 208 96 % Commercial MBS (1 ) 43 98 % — 19 100 % Asset-backed securities (10 ) 1,144 99 % (4 ) 361 99 % Corporate and other (80 ) 3,335 98 % (5 ) 78 94 % Total fixed maturities $ (146 ) $ 6,974 98 % $ (23 ) $ 736 97 % Common stocks $ (30 ) $ 291 91 % $ — $ — — % Perpetual preferred stocks $ (2 ) $ 105 98 % $ (3 ) $ 23 88 % December 31, 2014 Fixed maturities: U.S. Government and government agencies $ — $ 39 100 % $ (2 ) $ 15 88 % States, municipalities and political subdivisions (2 ) 222 99 % (8 ) 408 98 % Residential MBS (4 ) 298 99 % (11 ) 209 95 % Commercial MBS (1 ) 38 97 % — 11 100 % Asset-backed securities (11 ) 1,389 99 % (11 ) 622 98 % Corporate and other (16 ) 588 97 % (13 ) 433 97 % Total fixed maturities $ (34 ) $ 2,574 99 % $ (45 ) $ 1,698 97 % Common stocks $ (25 ) $ 260 91 % $ — $ — — % Perpetual preferred stocks $ (1 ) $ 45 98 % $ (4 ) $ 55 93 %
Roll forward of cumulative credit portion of other-than-temporary impairments on fixed maturity securities	A progression of the credit portion of other-than-temporary impairments on fixed maturity securities for which the non-credit portion of an impairment has been recognized in other comprehensive income is shown below (in millions): 2015 2014 Balance at March 31 $ 168 $ 177 Additional credit impairments on: Previously impaired securities — — Securities without prior impairments — — Reductions due to sales or redemptions (2 ) (2 ) Balance at June 30 $ 166 $ 175 Balance at January 1 $ 170 $ 194 Additional credit impairments on: Previously impaired securities 1 — Securities without prior impairments — — Reductions due to sales or redemptions (5 ) (19 ) Balance at June 30 $ 166 $ 175
Available for sale fixed maturity securities by contractual maturity date	The table below sets forth the scheduled maturities of available for sale fixed maturities as of June 30, 2015 (dollars in millions). Securities with sinking funds are reported at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers. Amortized Fair Value Cost Amount % Maturity One year or less $ 957 $ 978 3 % After one year through five years 4,854 5,172 16 % After five years through ten years 10,092 10,352 32 % After ten years 4,787 4,938 15 % 20,690 21,440 66 % ABS (average life of approximately 5 years) 4,355 4,383 14 % MBS (average life of approximately 4-1/2 years) 5,960 6,437 20 % Total $ 31,005 $ 32,260 100 %
Components of the net unrealized gain on securities, included in Accumulated Other Comprehensive Income	The following table shows (in millions) the components of the net unrealized gain on securities that is included in AOCI in AFG’s Balance Sheet. Pretax Deferred Tax and Amounts Attributable to Noncontrolling Interests Net June 30, 2015 Unrealized gain on: Fixed maturities — annuity segment (*) $ 859 $ (301 ) $ 558 Fixed maturities — all other 396 (146 ) 250 Equity securities 203 (73 ) 130 Deferred policy acquisition costs — annuity segment (383 ) 134 (249 ) Annuity benefits accumulated (107 ) 37 (70 ) Life, accident and health reserves (70 ) 24 (46 ) Unearned revenue 21 (7 ) 14 $ 919 $ (332 ) $ 587 December 31, 2014 Unrealized gain on: Fixed maturities — annuity segment (*) $ 1,157 $ (405 ) $ 752 Fixed maturities — all other 503 (185 ) 318 Equity securities 218 (79 ) 139 Deferred policy acquisition costs — annuity segment (531 ) 186 (345 ) Annuity benefits accumulated (112 ) 39 (73 ) Life, accident and health reserves (104 ) 36 (68 ) Unearned revenue 31 (11 ) 20 $ 1,162 $ (419 ) $ 743 (*) Unrealized gains on fixed maturity investments supporting AFG’s annuity benefits accumulated.
Net investment income earned and investment expenses incurred	The following table shows (in millions) investment income earned and investment expenses incurred. Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Investment income: Fixed maturities $ 360 $ 338 $ 712 $ 665 Equity securities 17 16 34 32 Equity in earnings of partnerships and similar investments 5 7 8 13 Other 26 19 47 36 Gross investment income 408 380 801 746 Investment expenses (4 ) (1 ) (9 ) (6 ) Net investment income $ 404 $ 379 $ 792 $ 740
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments	Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments are summarized as follows (in millions): Fixed Maturities Equity Securities Mortgage Loans and Other Investments Other (a) Total Pretax Tax Effects Noncon- trolling Interests Total Quarter ended June 30, 2015 Realized before impairments $ 7 $ 25 $ (2 ) $ (1 ) $ 29 $ (10 ) $ — $ 19 Realized — impairments (10 ) (23 ) — 3 (30 ) 11 — (19 ) Change in unrealized (623 ) (21 ) — 314 (330 ) 115 3 (212 ) Quarter ended June 30, 2014 Realized before impairments $ 9 $ 4 $ — $ — $ 13 $ (4 ) $ (1 ) $ 8 Realized — impairments — (1 ) — — (1 ) — — (1 ) Change in unrealized 295 30 — (137 ) 188 (66 ) (2 ) 120 Six months ended June 30, 2015 Realized before impairments $ 10 $ 46 $ (2 ) $ (2 ) $ 52 $ (18 ) $ — $ 34 Realized — impairments (15 ) (25 ) — 6 (34 ) 12 — (22 ) Change in unrealized (405 ) (15 ) — 177 (243 ) 85 2 (156 ) Six months ended June 30, 2014 Realized before impairments $ 22 $ 10 $ 1 $ — $ 33 $ (11 ) $ (1 ) $ 21 Realized — impairments (1 ) (1 ) — — (2 ) — — (2 ) Change in unrealized 611 43 — (273 ) 381 (134 ) (5 ) 242 (a) Primarily adjustments to deferred policy acquisition costs and reserves related to annuities and long-term care business.
Gross realized gains and losses on available for sale fixed maturity and equity security investments	Gross realized gains and losses (excluding impairment write-downs and mark-to-market of derivatives) on available for sale fixed maturity and equity security investment transactions included in the Statement of Cash Flows consisted of the following (in millions): Six months ended June 30, 2015 2014 Fixed maturities: Gross gains $ 13 $ 18 Gross losses — (2 ) Equity securities: Gross gains 46 12 Gross losses — —

Derivatives (Tables)

Derivatives (Tables)	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives included in Balance Sheet at fair value	The following derivatives that do not qualify for hedge accounting under GAAP are included in AFG’s Balance Sheet at fair value (in millions): June 30, 2015 December 31, 2014 Derivative Balance Sheet Line Asset Liability Asset Liability MBS with embedded derivatives Fixed maturities $ 170 $ — $ 158 $ — Public company warrants Equity securities — — 19 — Interest rate swaptions Other investments — — — — Fixed-indexed annuities (embedded derivative) Annuity benefits accumulated — 1,258 — 1,160 Equity index call options Other investments 278 — 322 — Reinsurance contracts (embedded derivative) Other liabilities — 9 — 13 $ 448 $ 1,267 $ 499 $ 1,173
Summary of gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives	The following table summarizes the gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting for the second quarter and first six months of 2015 and 2014 (in millions): Three months ended June 30, Six months ended June 30, Derivative Statement of Earnings Line 2015 2014 2015 2014 MBS with embedded derivatives Realized gains on securities $ (1 ) $ 4 $ (3 ) $ 7 Public company warrants Realized gains on securities — — — (2 ) Interest rate swaptions Realized gains on securities — (1 ) — (2 ) Fixed-indexed annuities (embedded derivative) Annuity benefits 19 (78 ) (31 ) (132 ) Equity index call options Annuity benefits 3 63 23 93 Reinsurance contracts (embedded derivative) Net investment income 3 (1 ) 3 (3 ) $ 24 $ (13 ) $ (8 ) $ (39 )

Deferred Policy Acquisition C27

Deferred Policy Acquisition Costs (Tables)	6 Months Ended
	Jun. 30, 2015
Deferred Policy Acquisition Costs Disclosures [Abstract]
Deferred Policy Acquisition Costs Details	A progression of deferred policy acquisition costs is presented below (in millions): P&C Annuity and Run-off Long-term Care and Life Deferred Deferred Sales Consolidated Costs Costs Inducements PVFP Unrealized Total Total Balance at March 31, 2015 $ 217 $ 942 $ 128 $ 71 $ (602 ) $ 539 $ 756 Additions 137 46 1 — — 47 184 Amortization: Periodic amortization (130 ) (55 ) (7 ) (3 ) — (65 ) (195 ) Included in realized gains — 1 1 — — 2 2 Foreign currency translation (1 ) — — — — — (1 ) Change in unrealized — — — — 219 219 219 Balance at June 30, 2015 $ 223 $ 934 $ 123 $ 68 $ (383 ) $ 742 $ 965 Balance at March 31, 2014 $ 214 $ 898 $ 146 $ 82 $ (450 ) $ 676 $ 890 Additions 127 52 1 — — 53 180 Amortization: Periodic amortization (123 ) (33 ) (6 ) (3 ) — (42 ) (165 ) Included in realized gains — 1 — — — 1 1 Foreign currency translation 1 — — — — — 1 Change in unrealized — — — — (101 ) (101 ) (101 ) Balance at June 30, 2014 $ 219 $ 918 $ 141 $ 79 $ (551 ) $ 587 $ 806 Balance at December 31, 2014 $ 221 $ 925 $ 132 $ 74 $ (531 ) $ 600 $ 821 Additions 258 90 4 — — 94 352 Amortization: Periodic amortization (256 ) (84 ) (14 ) (6 ) — (104 ) (360 ) Included in realized gains — 3 1 — — 4 4 Foreign currency translation — — — — — — — Change in unrealized — — — — 148 148 148 Balance at June 30, 2015 $ 223 $ 934 $ 123 $ 68 $ (383 ) $ 742 $ 965 Balance at December 31, 2013 $ 211 $ 875 $ 149 $ 85 $ (345 ) $ 764 $ 975 Additions 251 102 5 — — 107 358 Amortization: Periodic amortization (244 ) (60 ) (13 ) (6 ) — (79 ) (323 ) Included in realized gains — 1 — — — 1 1 Foreign currency translation 1 — — — — — 1 Change in unrealized — — — — (206 ) (206 ) (206 ) Balance at June 30, 2014 $ 219 $ 918 $ 141 $ 79 $ (551 ) $ 587 $ 806

Managed Investment Entities (Ta

Managed Investment Entities (Tables)	6 Months Ended
	Jun. 30, 2015
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract]
Selected financial information related to collateralized loan obligations	Selected financial information related to the CLOs is shown below (in millions): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Gains (losses) on change in fair value of assets/liabilities (a): Assets $ (7 ) $ (1 ) $ 26 $ (2 ) Liabilities 5 (9 ) (31 ) (8 ) Management fees paid to AFG 3 8 7 11 CLO earnings (losses) attributable to (b): AFG shareholders 5 6 8 11 Noncontrolling interests — (18 ) — (18 ) (a) Included in Revenues in AFG’s Statement of Earnings. (b) Included in Earnings before income taxes in AFG’s Statement of Earnings.

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Schedule of long-term debt instruments	The carrying value of long-term debt consisted of the following (in millions): June 30, December 31, Direct Senior Obligations of AFG: 9-7/8% Senior Notes due June 2019 $ 350 $ 350 6-3/8% Senior Notes due June 2042 230 230 5-3/4% Senior Notes due August 2042 125 125 7% Senior Notes due September 2050 132 132 Other 3 3 840 840 Direct Subordinated Obligations of AFG: 6-1/4% Subordinated Debentures due September 2054 150 150 Subsidiaries: Notes payable secured by real estate due 2015 through 2016 22 59 National Interstate bank credit facility 12 12 34 71 $ 1,024 $ 1,061
Summary of secured and unsecured long-term debt	As shown below (in millions), the majority of AFG’s long-term debt is unsecured obligations of the holding company and its subsidiaries: June 30, December 31, Senior unsecured obligations $ 852 $ 852 Subordinated unsecured obligations 150 150 Obligations secured by real estate 22 59 $ 1,024 $ 1,061

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
Components of accumulated other comprehensive income (loss)	The progression of the components of accumulated other comprehensive income follows (in millions): Other Comprehensive Income AOCI Beginning Balance Pretax Tax Net of tax Attributable to noncontrolling interests Attributable to shareholders AOCI Ending Balance Quarter ended June 30, 2015 Net unrealized gains (losses) on securities: Unrealized holding gains (losses) on securities arising during the period $ (329 ) $ 115 $ (214 ) $ 3 $ (211 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) (1 ) — (1 ) — (1 ) Total net unrealized gains (losses) on securities (b) $ 799 (330 ) 115 (215 ) 3 (212 ) $ 587 Net unrealized gains (losses) on cash flow hedges 1 (1 ) — (1 ) — (1 ) — Foreign currency translation adjustments (16 ) — — — — — (16 ) Pension and other postretirement plans adjustments (8 ) — — — — — (8 ) Total $ 776 $ (331 ) $ 115 $ (216 ) $ 3 $ (213 ) $ 563 Quarter ended June 30, 2014 Net unrealized gains on securities: Unrealized holding gains (losses) on securities arising during the period $ 200 $ (70 ) $ 130 $ (3 ) $ 127 Reclassification adjustment for realized (gains) losses included in net earnings (a) (12 ) 4 (8 ) 1 (7 ) Total net unrealized gains on securities $ 685 188 (66 ) 122 (2 ) 120 $ 805 Foreign currency translation adjustments (4 ) 2 — 2 — 2 (2 ) Pension and other postretirement plans adjustments (4 ) — — — — — (4 ) Total $ 677 $ 190 $ (66 ) $ 124 $ (2 ) $ 122 $ 799 Six months ended June 30, 2015 Net unrealized gains (losses) on securities: Unrealized holding gains (losses) on securities arising during the period $ (223 ) $ 78 $ (145 ) $ 2 $ (143 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) (20 ) 7 (13 ) — (13 ) Total net unrealized gains (losses) on securities (b) $ 743 (243 ) 85 (158 ) 2 (156 ) $ 587 Net unrealized gains (losses) on cash flow hedges — — — — — — — Foreign currency translation adjustments (8 ) (8 ) — (8 ) — (8 ) (16 ) Pension and other postretirement plans adjustments (8 ) — — — — — (8 ) Total $ 727 $ (251 ) $ 85 $ (166 ) $ 2 $ (164 ) $ 563 Six months ended June 30, 2014 Net unrealized gains on securities: Unrealized holding gains (losses) on securities arising during the period $ 411 $ (144 ) $ 267 $ (6 ) $ 261 Reclassification adjustment for realized (gains) losses included in net earnings (a) (30 ) 10 (20 ) 1 (19 ) Total net unrealized gains on securities $ 563 381 (134 ) 247 (5 ) 242 $ 805 Foreign currency translation adjustments 1 (3 ) — (3 ) — (3 ) (2 ) Pension and other postretirement plans adjustments (4 ) — — — — — (4 ) Total $ 560 $ 378 $ (134 ) $ 244 $ (5 ) $ 239 $ 799 (a) The reclassification adjustment out of net unrealized gains on securities affected the following lines in AFG’s Consolidated Statement of Earnings: OCI component Affected line in the Consolidated Statement of Earnings Pretax Realized gains (losses) on securities Tax Provision for income taxes Attributable to noncontrolling interests Net earnings (loss) attributable to noncontrolling interests (b) Includes net unrealized gains of $57 million at both June 30, 2015 and March 31, 2015 and $58 million at December 31, 2014 related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.
Assumptions used in estimating weighted average fair value of options on grant date	Six months ended June 30, 2015 2014 Exercise price $ 63.15 $ 56.44 Expected dividend yield 1.6 % 1.6 % Expected volatility 25 % 26 % Expected term (in years) 7.25 7.25 Risk-free rate 1.88 % 2.20 % Grant date fair value $ 15.29 $ 14.65

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Reconciliation of income taxes at the statutory rate and income taxes shown in the Statement of Earnings	The following is a reconciliation of income taxes at the statutory rate of 35% to the provision for income taxes as shown in the Statement of Earnings (dollars in millions): Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Amount % of EBT Amount % of EBT Amount % of EBT Amount % of EBT Earnings before income taxes (“EBT”) $ 226 $ 130 $ 256 $ 291 Income taxes at statutory rate $ 80 35 % $ 46 35 % $ 90 35 % $ 102 35 % Effect of: Tax exempt interest (7 ) (3 %) (7 ) (5 %) (14 ) (5 %) (12 ) (4 %) Change in valuation allowance 1 — % 2 2 % — — % 3 1 % Losses of managed investment entities — — % 6 5 % — — % 6 2 % Subsidiaries not in AFG’s tax return 1 — % (2 ) (2 %) 2 1 % (1 ) — % Other 2 2 % 2 1 % 4 1 % 3 1 % Provision for income taxes as shown in the Statement of Earnings $ 77 34 % $ 47 36 % $ 82 32 % $ 101 35 %

Accounting Policies (Details)

Accounting Policies (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Weighted average common shares adjustment related to stock-based compensation	1.8	2	1.8	2
Anti-dilutive potential common shares related to stock-based compensation plans	1.5	1.2	1.4	0.9
Maturities of short term investments			3 months

Acquisitions and Sale of Busi33

Acquisitions and Sale of Businesses (Details) - USD ($) $ in Millions		Apr. 01, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Business Acquisition [Line Items]
Total purchase price			$ 0	$ 267
Allocation of excess purchase price:
Goodwill			$ 201		$ 201
Summit Holding Southeast, Inc [Member]
Business Acquisition [Line Items]
Total purchase price		$ 259
Tangible assets acquired:
Cash and cash equivalents		1,078
Fixed maturities, available for sale		92
Recoverables from reinsurers		116
Agents’ balances and premiums receivable		41
Deferred tax assets, net	[1]	67
Other receivables		21
Other assets		11
Total tangible assets acquired		1,426
Liabilities acquired:
Unpaid losses and loss adjustment expenses		1,142
Unearned premiums		3
Payable to reinsurers		3
Other liabilities		66
Total liabilities acquired		1,214
Net tangible assets acquired, at fair value		212
Excess purchase price over net tangible assets acquired		47
Allocation of excess purchase price:
Intangible assets acquired	[2]	47
Deferred tax on intangible assets acquired	[1]	(16)
Goodwill		$ 16
[1]	Included with AFG’s net deferred tax liabilities, which are included in Other liabilities in AFG’s Consolidated Balance Sheet.
[2]	Included in Other assets in AFG’s Consolidated Balance Sheet.

Acquisitions and Sale of Busi34

Acquisitions and Sale of Businesses (Details 1) - Run-off long-term care insurance business [Member] - USD ($) $ in Millions		3 Months Ended	6 Months Ended
		Mar. 31, 2015	Jun. 30, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Estimated sale proceeds	[1]	$ 14
Assets of businesses sold:
Cash and investments		1,397
Recoverables from reinsurers		603
Deferred policy acquisition costs		15
Other receivables		14
Other assets		7
Goodwill		2
Total assets		2,038
Liabilities of businesses sold:
Annuity benefits accumulated		270
Life, accident and health reserves		1,537
Other liabilities		27
Total liabilities		1,834
Reclassify net unrealized gain on marketable securities		28
Net assets of businesses sold		176
Pretax loss on subsidiaries recorded in the first quarter of 2015		$ (162)	$ (162)
[1]	Includes fair value of the potential additional consideration and is shown net of estimated expenses.

Acquisitions and Sale of Busi35

Acquisitions and Sale of Businesses (Details 2) - Run-off long-term care insurance business [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Life, accident and health net earned premiums:
Long-term care	$ 20	$ 19	$ 37	$ 38
Life operations	2	2	5	5
Net investment income	19	18	37	39
Realized gains (losses) on securities and other income	0	1	(2)	2
Total revenues	41	40	77	84
Annuity benefits	2	2	4	4
Life, accident and health benefits:
Long-term care	25	28	46	57
Life operations	2	3	5	6
Annuity and supplemental insurance acquisition expenses	3	4	6	7
Other expenses	5	3	9	7
Total costs and expenses	37	40	70	81
Earnings before income taxes	$ 4	$ 0	$ 7	$ 3

Acquisitions and Sale of Busi36

Acquisitions and Sale of Businesses (Details Textual) - USD ($) $ in Millions	Apr. 01, 2014	Mar. 27, 2014	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2014
Acquisitions and Sale of Businesses [Line Items]
Payments to acquire business					$ 0	$ 267
Run-off long-term care insurance business [Member]
Acquisitions and Sale of Businesses [Line Items]
Sale proceeds					7
Additional sale proceeds based on the release of certain statutory liabilities of the legal entities sold					$ 13
Carrying value of the assets and liabilities of business sold as a percentage of total assets and liabilities				4.00%	4.00%
Summit Holding Southeast, Inc [Member]
Acquisitions and Sale of Businesses [Line Items]
Payments to acquire business	$ 259
Capital contributions to acquired business	140
Total capital investment in acquired business	399
Net written premiums of acquired business							$ 410	$ 539
Net earned premiums of acquired business			$ 129		$ 258
Underwriting profit of acquired business			$ 7		12
Selective Insurance Company of America Self-Insured Pooled Group [Member]
Acquisitions and Sale of Businesses [Line Items]
Payments to acquire business		$ 8
Net written premiums of acquired business								23
In-force gross written premiums of acquired book of business		$ 38
Gross written premiums of acquired business								$ 33
Minimum [Member] | Run-off long-term care insurance business [Member]
Acquisitions and Sale of Businesses [Line Items]
Expected after-tax cash proceeds from the sale of business					105
Maximum [Member] | Run-off long-term care insurance business [Member]
Acquisitions and Sale of Businesses [Line Items]
Expected after-tax cash proceeds from the sale of business					$ 115
Maximum [Member] | Summit Holding Southeast, Inc [Member]
Acquisitions and Sale of Businesses [Line Items]
Expenses related to the acquisition of business (are less than)	$ 1

Segments of Operations (Details

Segments of Operations (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2015		Jun. 30, 2014	Jun. 30, 2015		Jun. 30, 2014
Segment Reporting Information [Line Items]
Total premiums earned	$ 985		$ 931	$ 1,931		$ 1,685
Net investment income	404		379	792		740
Other income	90		26	137		47
Revenues before realized gains (losses)	1,542		1,380	2,979		2,572
Realized gains (losses) on securities	(1)		12	18		31
Realized loss on subsidiaries	0		0	(162)		0
Total revenues	1,541		1,392	2,835		2,603
Property and Casualty Insurance [Member]
Segment Reporting Information [Line Items]
Net investment income	83		76	162		143
Other income	53	[1]	2	59	[1]	4
Revenues before realized gains (losses)	1,121		1,009	2,152		1,832
Annuity [Member]
Segment Reporting Information [Line Items]
Net investment income	306		289	598		564
Other income	22		19	46		37
Revenues before realized gains (losses)	328		308	644		601
Run-off Long-term Care and Life [Member]
Segment Reporting Information [Line Items]
Revenues before realized gains (losses)	49		48	95		99
Other [Member]
Segment Reporting Information [Line Items]
Revenues before realized gains (losses)	44		15	88		40
Specialty Property and transportation [Member]
Segment Reporting Information [Line Items]
Total premiums earned	327		324	640		625
Specialty casualty [Member]
Segment Reporting Information [Line Items]
Total premiums earned	503		467	993		780
Specialty financial [Member]
Segment Reporting Information [Line Items]
Total premiums earned	129		116	249		233
Specialty Other [Member]
Segment Reporting Information [Line Items]
Total premiums earned	$ 26		$ 24	$ 49		$ 47
[1]	Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015.

Segments of Operations (Detai38

Segments of Operations (Details 1) - USD ($) $ in Millions		3 Months Ended			6 Months Ended
		Jun. 30, 2015		Jun. 30, 2014	Jun. 30, 2015		Jun. 30, 2014
Segment Reporting Information [Line Items]
Earnings before realized gains (losses) and income taxes		$ 227		$ 118	$ 400		$ 260
Realized gains (losses) on securities		(1)		12	18		31
Realized loss on subsidiaries		0		0	(162)		0
Earnings before income taxes		226		130	256		291
Property and Casualty Insurance [Member]
Segment Reporting Information [Line Items]
Property and casualty insurance underwriting		50		29	110		87
Investment and other income, net		124	[1]	62	197	[1]	116
Earnings before realized gains (losses) and income taxes		174		91	307		203
Annuity [Member]
Segment Reporting Information [Line Items]
Earnings before realized gains (losses) and income taxes		88		84	163		157
Run-off Long-term Care and Life [Member]
Segment Reporting Information [Line Items]
Earnings before realized gains (losses) and income taxes		4		(2)	8		(4)
Other [Member]
Segment Reporting Information [Line Items]
Earnings before realized gains (losses) and income taxes	[2]	(39)		(55)	(78)		(96)
Specialty Property and transportation [Member]
Segment Reporting Information [Line Items]
Property and casualty insurance underwriting		(13)		(18)	(6)		(12)
Specialty casualty [Member]
Segment Reporting Information [Line Items]
Property and casualty insurance underwriting		37		30	65		68
Specialty financial [Member]
Segment Reporting Information [Line Items]
Property and casualty insurance underwriting		24		15	46		25
Specialty Other [Member]
Segment Reporting Information [Line Items]
Property and casualty insurance underwriting		3		2	6		7
Other Lines [Member]
Segment Reporting Information [Line Items]
Property and casualty insurance underwriting		$ (1)		$ 0	$ (1)		$ (1)
[1]	Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015.
[2]	Includes holding company expenses. Also includes losses of managed investment entities attributable to noncontrolling interest of $18 million for both the second quarter and the first six months of 2014. Following the adoption of new guidance in the first quarter of 2015, there are no longer earnings (losses) of managed investment entities that are attributable to noncontrolling interests. See Note A — “Accounting Policies — Managed Investment Entities.”

Segments of Operations (Detai39

Segments of Operations (Details Textual) $ in Millions		3 Months Ended			6 Months Ended
		Jun. 30, 2015USD ($)		Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)segment		Jun. 30, 2014USD ($)
Segment Reporting Information [Line Items]
Number of segments | segment					4
Other income		$ 90		$ 26	$ 137		$ 47
Earnings (losses) of managed investment entities attributable to noncontrolling interests	[1]	0		(18)	0		(18)
Property and Casualty Insurance [Member]
Segment Reporting Information [Line Items]
Other income		53	[2]	2	$ 59	[2]	4
Property and Casualty Insurance [Member] | Real Estate Investment [Member]
Segment Reporting Information [Line Items]
Other income	[2]	$ 51
Other [Member]
Segment Reporting Information [Line Items]
Earnings (losses) of managed investment entities attributable to noncontrolling interests				$ (18)			$ (18)
[1]	Included in Earnings before income taxes in AFG’s Statement of Earnings.
[2]	Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015.

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions		Jun. 30, 2015	Dec. 31, 2014
Assets:
Available for sale (AFS) fixed maturities		$ 32,260	$ 30,734
Trading fixed maturities		279	266
Assets of managed investment entities (“MIE”)		3,629	3,108
Variable annuity assets (separate accounts)	[1]	655	662
Other investments — derivatives		278	322
Other assets — derivatives		1
Total assets accounted for at fair value		38,806	36,788
Liabilities:
Liabilities of managed investment entities		3,309	2,819
Total liabilities accounted for at fair value		4,575	3,992
Annuity benefits accumulated [Member]
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		1,258	1,160
Derivatives in long-term debt [Member]
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		(2)
Other liabilities — derivatives [Member]
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		10	13
U.S. Government and government agencies [Member]
Assets:
Available for sale (AFS) fixed maturities		361	353
States, municipalities and political subdivisions [Member]
Assets:
Available for sale (AFS) fixed maturities		7,080	6,747
Foreign government [Member]
Assets:
Available for sale (AFS) fixed maturities		177	194
Residential Mortgage Backed Securities [Member]
Assets:
Available for sale (AFS) fixed maturities		4,114	4,442
Commercial Mortgage Backed Securities [Member]
Assets:
Available for sale (AFS) fixed maturities		2,323	2,451
Asset-backed Securities [Member]
Assets:
Available for sale (AFS) fixed maturities		4,383	3,887
All other corporate [Member]
Assets:
Available for sale (AFS) fixed maturities		13,822	12,660
Fixed maturities [Member]
Assets:
Available for sale (AFS) fixed maturities		32,260	30,734
Trading fixed maturities		279	266
Equity securities [Member]
Assets:
Equity securities		1,704	1,696
Level 1 [Member]
Assets:
Assets of managed investment entities (“MIE”)		243	174
Variable annuity assets (separate accounts)	[1]	0	0
Other investments — derivatives		0	0
Other assets — derivatives		0
Total assets accounted for at fair value		1,842	1,692
Liabilities:
Liabilities of managed investment entities		222	118
Total liabilities accounted for at fair value		222	118
Level 1 [Member] | Annuity benefits accumulated [Member]
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		0	0
Level 1 [Member] | Derivatives in long-term debt [Member]
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		0
Level 1 [Member] | Other liabilities — derivatives [Member]
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		0	0
Level 1 [Member] | U.S. Government and government agencies [Member]
Assets:
Available for sale (AFS) fixed maturities		142	164
Level 1 [Member] | States, municipalities and political subdivisions [Member]
Assets:
Available for sale (AFS) fixed maturities		0	0
Level 1 [Member] | Foreign government [Member]
Assets:
Available for sale (AFS) fixed maturities		0	0
Level 1 [Member] | Residential Mortgage Backed Securities [Member]
Assets:
Available for sale (AFS) fixed maturities		0	0
Level 1 [Member] | Commercial Mortgage Backed Securities [Member]
Assets:
Available for sale (AFS) fixed maturities		0	0
Level 1 [Member] | Asset-backed Securities [Member]
Assets:
Available for sale (AFS) fixed maturities		0	0
Level 1 [Member] | All other corporate [Member]
Assets:
Available for sale (AFS) fixed maturities		48	36
Level 1 [Member] | Fixed maturities [Member]
Assets:
Available for sale (AFS) fixed maturities		190	200
Trading fixed maturities		13	12
Level 1 [Member] | Equity securities [Member]
Assets:
Equity securities		1,396	1,306
Level 2 [Member]
Assets:
Assets of managed investment entities (“MIE”)		3,357	2,903
Variable annuity assets (separate accounts)	[1]	655	662
Other investments — derivatives		278	322
Other assets — derivatives		1
Total assets accounted for at fair value		35,445	33,741
Liabilities:
Liabilities of managed investment entities		3,061	0
Total liabilities accounted for at fair value		3,069	13
Level 2 [Member] | Annuity benefits accumulated [Member]
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		0	0
Level 2 [Member] | Derivatives in long-term debt [Member]
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		(2)
Level 2 [Member] | Other liabilities — derivatives [Member]
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		10	13
Level 2 [Member] | U.S. Government and government agencies [Member]
Assets:
Available for sale (AFS) fixed maturities		204	174
Level 2 [Member] | States, municipalities and political subdivisions [Member]
Assets:
Available for sale (AFS) fixed maturities		6,996	6,647
Level 2 [Member] | Foreign government [Member]
Assets:
Available for sale (AFS) fixed maturities		177	194
Level 2 [Member] | Residential Mortgage Backed Securities [Member]
Assets:
Available for sale (AFS) fixed maturities		3,818	4,142
Level 2 [Member] | Commercial Mortgage Backed Securities [Member]
Assets:
Available for sale (AFS) fixed maturities		2,275	2,407
Level 2 [Member] | Asset-backed Securities [Member]
Assets:
Available for sale (AFS) fixed maturities		4,051	3,661
Level 2 [Member] | All other corporate [Member]
Assets:
Available for sale (AFS) fixed maturities		13,177	12,078
Level 2 [Member] | Fixed maturities [Member]
Assets:
Available for sale (AFS) fixed maturities		30,698	29,303
Trading fixed maturities		266	254
Level 2 [Member] | Equity securities [Member]
Assets:
Equity securities		190	297
Level 3 [Member]
Assets:
Assets of managed investment entities (“MIE”)		29	31
Variable annuity assets (separate accounts)	[1]	0	0
Other investments — derivatives		0	0
Other assets — derivatives		0
Total assets accounted for at fair value		1,519	1,355
Liabilities:
Liabilities of managed investment entities		26	2,701
Total liabilities accounted for at fair value		1,284	3,861
Level 3 [Member] | Annuity benefits accumulated [Member]
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		1,258	1,160
Level 3 [Member] | Derivatives in long-term debt [Member]
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		0
Level 3 [Member] | Other liabilities — derivatives [Member]
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		0	0
Level 3 [Member] | U.S. Government and government agencies [Member]
Assets:
Available for sale (AFS) fixed maturities		15	15
Level 3 [Member] | States, municipalities and political subdivisions [Member]
Assets:
Available for sale (AFS) fixed maturities		84	100
Level 3 [Member] | Foreign government [Member]
Assets:
Available for sale (AFS) fixed maturities		0	0
Level 3 [Member] | Residential Mortgage Backed Securities [Member]
Assets:
Available for sale (AFS) fixed maturities		296	300
Level 3 [Member] | Commercial Mortgage Backed Securities [Member]
Assets:
Available for sale (AFS) fixed maturities		48	44
Level 3 [Member] | Asset-backed Securities [Member]
Assets:
Available for sale (AFS) fixed maturities		332	226
Level 3 [Member] | All other corporate [Member]
Assets:
Available for sale (AFS) fixed maturities		597	546
Level 3 [Member] | Fixed maturities [Member]
Assets:
Available for sale (AFS) fixed maturities		1,372	1,231
Trading fixed maturities		0	0
Level 3 [Member] | Equity securities [Member]
Assets:
Equity securities		$ 118	$ 93
[1]	Variable annuity liabilities equal the fair value of variable annuity assets.

Fair Value Measurements (Deta41

Fair Value Measurements (Details 1) - Embedded derivatives [Member]	6 Months Ended
	Jun. 30, 2015
Unobservable inputs used by management in determining fair value of embedded derivatives
Risk margin for uncertainty in cash flows	0.52%
Minimum [Member]
Unobservable inputs used by management in determining fair value of embedded derivatives
Adjustment for insurance subsidiary's credit risk	0.30%
Surrenders	4.00%
Partial surrenders	2.00%
Annuitizations	1.00%
Deaths	1.50%
Budgeted option costs	2.00%
Maximum [Member]
Unobservable inputs used by management in determining fair value of embedded derivatives
Adjustment for insurance subsidiary's credit risk	2.10%
Surrenders	16.00%
Partial surrenders	10.00%
Annuitizations	1.50%
Deaths	3.00%
Budgeted option costs	3.25%

Fair Value Measurements (Deta42

Fair Value Measurements (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
US Treasury and Government [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	$ 15	$ 15	$ 15	$ 15
Impact of accounting change			0
Total realized/unrealized gains (losses) included in Net income	0	0	0	0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	0	0	0
Purchases and issuances	0	0	0	0
Sales and settlements	0	0	0	0
Transfer into Level 3	0	0	0	0
Transfer out of Level 3	0	0	0	0
Financial assets, Ending Balance	15	15	15	15
States, municipalities and political subdivisions [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	61	61	100	61
Impact of accounting change			0
Total realized/unrealized gains (losses) included in Net income	0	0	0	0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	(2)	0	(2)	0
Purchases and issuances	25	0	25	0
Sales and settlements	0	0	0	0
Transfer into Level 3	0	0	0	0
Transfer out of Level 3	0	0	(39)	0
Financial assets, Ending Balance	84	61	84	61
Residential Mortgage Backed Securities [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	306	272	300	316
Impact of accounting change			0
Total realized/unrealized gains (losses) included in Net income	(1)	2	(2)	3
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	(2)	2	1	6
Purchases and issuances	0	0	0	0
Sales and settlements	(9)	(7)	(16)	(15)
Transfer into Level 3	16	6	57	38
Transfer out of Level 3	(14)	(19)	(44)	(92)
Financial assets, Ending Balance	296	256	296	256
Commercial Mortgage Backed Securities [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	44	28	44	28
Impact of accounting change			0
Total realized/unrealized gains (losses) included in Net income	0	0	0	0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	0	0	0
Purchases and issuances	0	0	0	0
Sales and settlements	0	0	0	0
Transfer into Level 3	4	0	4	0
Transfer out of Level 3	0	0	0	0
Financial assets, Ending Balance	48	28	48	28
Asset-backed Securities [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	211	206	226	75
Impact of accounting change			0
Total realized/unrealized gains (losses) included in Net income	1	3	1	3
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	0	0	1
Purchases and issuances	115	10	120	60
Sales and settlements	(7)	(15)	(48)	(16)
Transfer into Level 3	12	0	33	81
Transfer out of Level 3	0	0	0	0
Financial assets, Ending Balance	332	204	332	204
All other corporate [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	583	322	546	335
Impact of accounting change			0
Total realized/unrealized gains (losses) included in Net income	(3)	4	(3)	5
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	(17)	0	(11)	3
Purchases and issuances	35	20	79	21
Sales and settlements	(11)	(30)	(24)	(46)
Transfer into Level 3	10	0	10	0
Transfer out of Level 3	0	(3)	0	(5)
Financial assets, Ending Balance	597	313	597	313
Equity securities [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	84	41	93	31
Impact of accounting change			0
Total realized/unrealized gains (losses) included in Net income	(4)	0	(4)	1
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	3	2	1	4
Purchases and issuances	35	16	45	46
Sales and settlements	0	0	0	(9)
Transfer into Level 3	0	22	0	22
Transfer out of Level 3	0	0	(17)	(14)
Financial assets, Ending Balance	118	81	118	81
Assets of Managed Investment Entities [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	29	29	31	30
Impact of accounting change			0
Total realized/unrealized gains (losses) included in Net income	(4)	(1)	(6)	(2)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	0	0	0
Purchases and issuances	4	0	4	0
Sales and settlements	0	(1)	0	(1)
Transfer into Level 3	0	0	0	0
Transfer out of Level 3	0	0	0	0
Financial assets, Ending Balance	$ 29	$ 27	$ 29	$ 27

Fair Value Measurements (Deta43

Fair Value Measurements (Details 3) - USD ($) $ in Millions		3 Months Ended			6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014		Jun. 30, 2015	Jun. 30, 2014
Liabilities of Managed Investment Entities [Member]
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial liabilities, Beginning Balance			$ (2,322)		$ (2,701)	$ (2,411)
Impact of accounting change	[1]				2,701
Total realized/unrealized gains (losses) included in Net income			(9)	[2]	0	(8)	[3]
Total realized/unrealized gains (losses) included in other comprehensive income (loss)			0		0	0
Purchases and issuances			(155)		0	(200)
Sales and settlements			164		0	297
Transfer into Level 3			0		0	0
Transfer out of Level 3			0		0	0
Financial liabilities, Ending Balance		$ 0	(2,322)		0	(2,322)
Embedded derivatives [Member]
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial liabilities, Beginning Balance		(1,243)	(904)		(1,160)	(804)
Impact of accounting change					0
Total realized/unrealized gains (losses) included in Net income		19	(78)		(31)	(132)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		0	0		0	0
Purchases and issuances		(48)	(56)		(95)	(111)
Sales and settlements		14	12		28	21
Transfer into Level 3		0	0		0	0
Transfer out of Level 3		0	0		0	0
Financial liabilities, Ending Balance		$ (1,258)	$ (1,026)		$ (1,258)	$ (1,026)
[1]	The impact of implementing new guidance adopted in 2015, as discussed above and in Note A — “Accounting Policies — Managed Investment Entities.”
[2]	Total realized/unrealized gains (losses) included in net income includes gains of $1 million related to liabilities outstanding as of June 30, 2014. See Note H — “Managed Investment Entities.”
[3]	Total realized/unrealized gains (losses) included in net income includes gains of $5 million related to liabilities outstanding as of June 30, 2014. See Note H — “Managed Investment Entities.”

Fair Value Measurements (Deta44

Fair Value Measurements (Details 4) - USD ($) $ in Millions		Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Financial assets:
Cash and cash equivalents		$ 1,216	$ 1,343	$ 2,116	$ 1,639
Mortgage loans		1,054	1,117
Policy loans		223	228
Financial liabilities:
Long-term debt		1,024	1,061
Level 1 [Member]
Financial assets:
Cash and cash equivalents		1,216	1,343
Mortgage loans		0	0
Policy loans		0	0
Total financial assets not accounted for at fair value		1,216	1,343
Financial liabilities:
Annuity benefits accumulated	[1]	0	0
Long-term debt		0	0
Total financial liabilities not accounted for at fair value		0	0
Level 2 [Member]
Financial assets:
Cash and cash equivalents		0	0
Mortgage loans		0	0
Policy loans		0	0
Total financial assets not accounted for at fair value		0	0
Financial liabilities:
Annuity benefits accumulated	[1]	0	0
Long-term debt		1,083	1,106
Total financial liabilities not accounted for at fair value		1,083	1,106
Level 3 [Member]
Financial assets:
Cash and cash equivalents		0	0
Mortgage loans		1,058	1,124
Policy loans		223	228
Total financial assets not accounted for at fair value		1,281	1,352
Financial liabilities:
Annuity benefits accumulated	[1]	24,291	23,187
Long-term debt		37	74
Total financial liabilities not accounted for at fair value		24,328	23,261
Carrying Value [Member]
Financial assets:
Cash and cash equivalents		1,216	1,343
Mortgage loans		1,054	1,117
Policy loans		223	228
Total financial assets not accounted for at fair value		2,493	2,688
Financial liabilities:
Annuity benefits accumulated	[1]	25,002	23,561
Long-term debt		1,026	1,061
Total financial liabilities not accounted for at fair value		26,028	24,622
Fair Value [Member]
Financial assets:
Cash and cash equivalents		1,216	1,343
Mortgage loans		1,058	1,124
Policy loans		223	228
Total financial assets not accounted for at fair value		2,497	2,695
Financial liabilities:
Annuity benefits accumulated	[1]	24,291	23,187
Long-term debt		1,120	1,180
Total financial liabilities not accounted for at fair value		$ 25,411	$ 24,367
[1]	Excludes $201 million and $203 million of life contingent annuities in the payout phase at June 30, 2015 and December 31, 2014, respectively.

Fair Value Measurements (Deta45

Fair Value Measurements (Details Textual) $ in Millions		3 Months Ended			6 Months Ended
		Jun. 30, 2015USD ($)stock	Mar. 31, 2015USD ($)	Jun. 30, 2014USD ($)stock	Jun. 30, 2015USD ($)stockprofessional	Jun. 30, 2014USD ($)stock	Dec. 31, 2014USD ($)
Fair Value Measurements (Textual) [Abstract]
AFG's internal investment professionals | professional					20
Level 3 assets as a percentage of total assets measured at fair value					4.00%
Percentage of level 3 assets that were priced using non-binding broker quotes					72.00%
Level 3 assets that were priced using non-binding broker quotes					$ 1,100
Percentage of internally developed Level 3 asset fair values to Shareholders' equity					6.00%
Total realized/unrealized gains (losses) included in net income on liabilities still outstanding				$ 1		$ 5
Life contingent annuities		$ 201			$ 201		$ 203
Maximum [Member]
Fair Value Measurements (Textual) [Abstract]
Percentage of internally developed Level 3 asset fair values to total assets (are less than)					1.00%
Fixed-indexed annuties (embedded derivative), majority of future years [Member] | Minimum [Member]
Fair Value Measurements (Textual) [Abstract]
Unobservable input surrenders used in Level 3 fair value determination					5.00%
Fixed-indexed annuties (embedded derivative), majority of future years [Member] | Maximum [Member]
Fair Value Measurements (Textual) [Abstract]
Unobservable input surrenders used in Level 3 fair value determination					11.00%
Fixed-indexed annuities (embedded derivative) [Member]
Fair Value Measurements (Textual) [Abstract]
Fair value of derivatives in annuity benefits accumulated measured using a discounted cash flow approach		$ 1,260			$ 1,260
Fixed-indexed annuities (embedded derivative) [Member] | Minimum [Member]
Fair Value Measurements (Textual) [Abstract]
Unobservable input surrenders used in Level 3 fair value determination					4.00%
Fixed-indexed annuities (embedded derivative) [Member] | Maximum [Member]
Fair Value Measurements (Textual) [Abstract]
Unobservable input surrenders used in Level 3 fair value determination					16.00%
Common stocks [Member]
Fair Value Measurements (Textual) [Abstract]
Number of stocks transferred from Level 2 to Level 1 | stock		5			6
Fair value of assets transferred from Level 2 to Level 1, during the second quarter		$ 26
Fair value of assets transferred from Level 2 to Level 1, during the first six months		$ 79			$ 79
Perpetual preferred stocks [Member]
Fair Value Measurements (Textual) [Abstract]
Number of stocks transferred from Level 2 to Level 1 | stock		2			4
Fair value of assets transferred from Level 2 to Level 1, during the second quarter		$ 14
Fair value of assets transferred from Level 2 to Level 1, during the first six months		$ 19			$ 19
Number of stocks transferred from Level 1 to Level 2 | stock				1		9
Fair value of assets transferred from Level 1 to Level 2, during the first six months				$ 55		$ 55
Perpetual preferred stocks [Member] | Maximum [Member]
Fair Value Measurements (Textual) [Abstract]
Fair value of assets transferred from Level 1 to Level 2, during the second quarter (are less than)				$ 1
Mandatory redeemable preferred stocks [Member]
Fair Value Measurements (Textual) [Abstract]
Number of stocks transferred from Level 2 to Level 1 | stock		1			1
Fair value of assets transferred from Level 2 to Level 1, during the second quarter		$ 10
Fair value of assets transferred from Level 2 to Level 1, during the first six months		$ 10			$ 10
Run-off long-term care insurance business [Member]
Fair Value Measurements (Textual) [Abstract]
Estimated sale proceeds of the run-off long-term care insurance business	[1]		$ 14
[1]	Includes fair value of the potential additional consideration and is shown net of estimated expenses.

Investments (Details)

Investments (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	$ 31,005	$ 29,074
Available for sale (AFS) fixed maturities	32,260	30,734
Equity securities, Available for sale, Amortized Cost	1,332	1,283
Equity securities, Available for sale, Fair Value	1,535	1,501
U.S. Government and government agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	356	347
Available for sale (AFS) fixed maturities	361	353
Fixed maturities, Available for sale, Gross Unrealized, Gains	7	8
Fixed maturities, Available for sale, Gross Unrealized, Losses	(2)	(2)
States, municipalities and political subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	6,869	6,393
Available for sale (AFS) fixed maturities	7,080	6,747
Fixed maturities, Available for sale, Gross Unrealized, Gains	265	364
Fixed maturities, Available for sale, Gross Unrealized, Losses	(54)	(10)
Foreign government [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	167	184
Available for sale (AFS) fixed maturities	177	194
Fixed maturities, Available for sale, Gross Unrealized, Gains	10	10
Fixed maturities, Available for sale, Gross Unrealized, Losses	0	0
Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	3,756	4,046
Available for sale (AFS) fixed maturities	4,114	4,442
Fixed maturities, Available for sale, Gross Unrealized, Gains	371	411
Fixed maturities, Available for sale, Gross Unrealized, Losses	(13)	(15)
Commercial Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	2,204	2,294
Available for sale (AFS) fixed maturities	2,323	2,451
Fixed maturities, Available for sale, Gross Unrealized, Gains	120	158
Fixed maturities, Available for sale, Gross Unrealized, Losses	(1)	(1)
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	4,355	3,872
Available for sale (AFS) fixed maturities	4,383	3,887
Fixed maturities, Available for sale, Gross Unrealized, Gains	42	37
Fixed maturities, Available for sale, Gross Unrealized, Losses	(14)	(22)
All other corporate [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	13,298	11,938
Available for sale (AFS) fixed maturities	13,822	12,660
Fixed maturities, Available for sale, Gross Unrealized, Gains	609	751
Fixed maturities, Available for sale, Gross Unrealized, Losses	(85)	(29)
Fixed maturities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	31,005	29,074
Available for sale (AFS) fixed maturities	32,260	30,734
Fixed maturities, Available for sale, Gross Unrealized, Gains	1,424	1,739
Fixed maturities, Available for sale, Gross Unrealized, Losses	(169)	(79)
Common stocks [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity securities, Available for sale, Amortized Cost	889	885
Equity securities, Available for sale, Fair Value	1,076	1,087
Equity securities, Available for sale, Gross Unrealized, Gains	217	227
Equity securities, Available for sale, Gross Unrealized, Losses	(30)	(25)
Perpetual preferred stocks [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity securities, Available for sale, Amortized Cost	443	398
Equity securities, Available for sale, Fair Value	459	414
Equity securities, Available for sale, Gross Unrealized, Gains	21	21
Equity securities, Available for sale, Gross Unrealized, Losses	$ (5)	$ (5)

Investments (Details 1)

Investments (Details 1) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
U.S. Government and government agencies [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ 0	$ 0
Fair Value - Less than twelve months	$ 55	$ 39
Fair Value as % of Cost - Less than twelve months	100.00%	100.00%
Unrealized Loss - Twelve months or more	$ (2)	$ (2)
Fair Value - Twelve months or more	$ 15	$ 15
Fair Value as % of Cost - Twelve months or more	88.00%	88.00%
States, municipalities and political subdivisions [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (50)	$ (2)
Fair Value - Less than twelve months	$ 2,059	$ 222
Fair Value as % of Cost - Less than twelve months	98.00%	99.00%
Unrealized Loss - Twelve months or more	$ (4)	$ (8)
Fair Value - Twelve months or more	$ 55	$ 408
Fair Value as % of Cost - Twelve months or more	93.00%	98.00%
Residential Mortgage Backed Securities [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (5)	$ (4)
Fair Value - Less than twelve months	$ 338	$ 298
Fair Value as % of Cost - Less than twelve months	99.00%	99.00%
Unrealized Loss - Twelve months or more	$ (8)	$ (11)
Fair Value - Twelve months or more	$ 208	$ 209
Fair Value as % of Cost - Twelve months or more	96.00%	95.00%
Commercial Mortgage Backed Securities [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (1)	$ (1)
Fair Value - Less than twelve months	$ 43	$ 38
Fair Value as % of Cost - Less than twelve months	98.00%	97.00%
Unrealized Loss - Twelve months or more	$ 0	$ 0
Fair Value - Twelve months or more	$ 19	$ 11
Fair Value as % of Cost - Twelve months or more	100.00%	100.00%
Asset-backed Securities [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (10)	$ (11)
Fair Value - Less than twelve months	$ 1,144	$ 1,389
Fair Value as % of Cost - Less than twelve months	99.00%	99.00%
Unrealized Loss - Twelve months or more	$ (4)	$ (11)
Fair Value - Twelve months or more	$ 361	$ 622
Fair Value as % of Cost - Twelve months or more	99.00%	98.00%
All other corporate [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (80)	$ (16)
Fair Value - Less than twelve months	$ 3,335	$ 588
Fair Value as % of Cost - Less than twelve months	98.00%	97.00%
Unrealized Loss - Twelve months or more	$ (5)	$ (13)
Fair Value - Twelve months or more	$ 78	$ 433
Fair Value as % of Cost - Twelve months or more	94.00%	97.00%
Fixed maturities [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (146)	$ (34)
Fair Value - Less than twelve months	$ 6,974	$ 2,574
Fair Value as % of Cost - Less than twelve months	98.00%	99.00%
Unrealized Loss - Twelve months or more	$ (23)	$ (45)
Fair Value - Twelve months or more	$ 736	$ 1,698
Fair Value as % of Cost - Twelve months or more	97.00%	97.00%
Common stocks [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (30)	$ (25)
Fair Value - Less than twelve months	$ 291	$ 260
Fair Value as % of Cost - Less than twelve months	91.00%	91.00%
Unrealized Loss - Twelve months or more	$ 0	$ 0
Fair Value - Twelve months or more	$ 0	$ 0
Fair Value as % of Cost - Twelve months or more	0.00%	0.00%
Perpetual preferred stocks [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (2)	$ (1)
Fair Value - Less than twelve months	$ 105	$ 45
Fair Value as % of Cost - Less than twelve months	98.00%	98.00%
Unrealized Loss - Twelve months or more	$ (3)	$ (4)
Fair Value - Twelve months or more	$ 23	$ 55
Fair Value as % of Cost - Twelve months or more	88.00%	93.00%

Investments (Details 2)

Investments (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Beginning Balance	$ 168	$ 177	$ 170	$ 194
Additional credit impairments on:
Previously impaired securities	0	0	1	0
Securities without prior impairments	0	0	0	0
Reductions due to sales or redemptions	(2)	(2)	(5)	(19)
Ending Balance	$ 166	$ 175	$ 166	$ 175

Investments (Details 3)

Investments (Details 3) - Jun. 30, 2015 - Fixed Maturity [Member] - USD ($) $ in Millions	Total
Amortized Cost Basis, Fiscal Year Maturity [Abstract]
One year or less	$ 957
After one year through five years	4,854
After five years through ten years	10,092
After ten years	4,787
Fixed maturities amortized cost, Subtotal	20,690
ABS (average life of approximately 5 years)	4,355
MBS (average life of approximately 4-1/2 years)	5,960
Amortized Cost	31,005
Fair Value, Fiscal Year Maturity [Abstract]
One year or less	978
After one year through five years	5,172
After five years through ten years	10,352
After ten years	4,938
Fixed maturities fair value, Subtotal	21,440
ABS (average life of approximately 5 years)	4,383
MBS (average life of approximately 4-1/2 years)	6,437
Fair Value	$ 32,260
Fair Value Percent, Fiscal Year Maturity [Abstract]
One year or less	3.00%
After one year through five years	16.00%
After five years through ten years	32.00%
After ten years	15.00%
Fixed maturities fair value, Subtotal, Percent	66.00%
ABS (average life of approximately 5 years)	14.00%
MBS (average life of approximately 4-1/2 years)	20.00%
Fair value, Total, Percent	100.00%

Investments (Details 4)

Investments (Details 4) - USD ($) $ in Millions		Jun. 30, 2015		Mar. 31, 2015	[1]	Dec. 31, 2014		Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Unrealized gain on:
Pretax		$ 919				$ 1,162
Deferred Tax and Amounts Attributable to Noncontrolling Interests		(332)				(419)
Net		587	[1]	$ 799		743	[1]	$ 805	$ 685	$ 563
Fixed maturities - annuity segment [Member]
Unrealized gain on:
Pretax	[2]	859				1,157
Deferred Tax and Amounts Attributable to Noncontrolling Interests	[2]	(301)				(405)
Net	[2]	558				752
Fixed maturities - all other [Member]
Unrealized gain on:
Pretax		396				503
Deferred Tax and Amounts Attributable to Noncontrolling Interests		(146)				(185)
Net		250				318
Equity securities [Member]
Unrealized gain on:
Pretax		203				218
Deferred Tax and Amounts Attributable to Noncontrolling Interests		(73)				(79)
Net		130				139
Deferred policy acquisition costs - annuity segment [Member]
Unrealized gain on:
Pretax		(383)				(531)
Deferred Tax and Amounts Attributable to Noncontrolling Interests		134				186
Net		(249)				(345)
Annuity benefits accumulated [Member]
Unrealized gain on:
Pretax		(107)				(112)
Deferred Tax and Amounts Attributable to Noncontrolling Interests		37				39
Net		(70)				(73)
Life, accident and health reserves [Member]
Unrealized gain on:
Pretax		(70)				(104)
Deferred Tax and Amounts Attributable to Noncontrolling Interests		24				36
Net		(46)				(68)
Unearned revenue [Member]
Unrealized gain on:
Pretax		21				31
Deferred Tax and Amounts Attributable to Noncontrolling Interests		(7)				(11)
Net		$ 14				$ 20
[1]	Includes net unrealized gains of $57 million at both June 30, 2015 and March 31, 2015 and $58 million at December 31, 2014 related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.
[2]	Unrealized gains on fixed maturity investments supporting AFG’s annuity benefits accumulated.

Investments (Details 5)

Investments (Details 5) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net Investment Income [Line Items]
Investment income	$ 408	$ 380	$ 801	$ 746
Investment expenses	(4)	(1)	(9)	(6)
Net investment income	404	379	792	740
Fixed maturities [Member]
Net Investment Income [Line Items]
Investment income	360	338	712	665
Equity securities [Member]
Net Investment Income [Line Items]
Investment income	17	16	34	32
Equity method investments [Member]
Net Investment Income [Line Items]
Investment income	5	7	8	13
Other [Member]
Net Investment Income [Line Items]
Investment income	$ 26	$ 19	$ 47	$ 36

Investments (Details 6)

Investments (Details 6) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	$ 29	$ 13	$ 52	$ 33
Realized — impairments	(30)	(1)	(34)	(2)
Fixed maturities [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	7	9	10	22
Realized — impairments	(10)	0	(15)	(1)
Change in unrealized	(623)	295	(405)	611
Equity securities [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	25	4	46	10
Realized — impairments	(23)	(1)	(25)	(1)
Change in unrealized	(21)	30	(15)	43
Mortgage Loans and Other Investments [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	(2)	0	(2)	1
Realized — impairments	0	0	0	0
Change in unrealized	0	0	0	0
Other [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	(1)	0	(2)	0
Realized — impairments	3	0	6	0
Change in unrealized	314	(137)	177	(273)
Total Pretax [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	29	13	52	33
Realized — impairments	(30)	(1)	(34)	(2)
Change in unrealized	(330)	188	(243)	381
Tax Effects [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	(10)	(4)	(18)	(11)
Realized — impairments	11	0	12	0
Change in unrealized	115	(66)	85	(134)
Noncontrolling Interests [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	0	(1)	0	(1)
Realized — impairments	0	0	0	0
Change in unrealized	3	(2)	2	(5)
Marketable Securities [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	19	8	34	21
Realized — impairments	(19)	(1)	(22)	(2)
Change in unrealized	$ (212)	$ 120	$ (156)	$ 242

Investments (Details 7)

Investments (Details 7) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Fixed maturities [Member]
Gross realized gains and losses on the sale of available for sale fixed maturity and equity security investments
Gross gains	$ 13	$ 18
Gross losses	0	(2)
Equity securities [Member]
Gross realized gains and losses on the sale of available for sale fixed maturity and equity security investments
Gross gains	46	12
Gross losses	$ 0	$ 0

Investments (Details Textual)

Investments (Details Textual) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)investmentsecurity	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)investment
Investment [Line Items]
Percentage (based on amount of unrealized loss) of available for sale fixed maturities that are in an unrealized loss position and rated investment grade			83.00%
Percentage (based on fair value) of available for sale fixed maturities that are in an unrealized loss position and rated investment grade			90.00%
Other than temporary impairment charges	$ 30	$ 1	$ 34	$ 2
Average life of ABS			5 years
Average life of MBS			4 years 6 months
The number of investments in individual issuers that exceeded 10% of Shareholders’ Equity | investment			0		0
Percentage increase in shareholders' equity			10.00%		10.00%
Residential Mortgage Backed Securities [Member]
Investment [Line Items]
Non-credit related portion of other-than-temporary impairment charges taken for securities still owned	216		$ 216		$ 220
Fixed maturities, Gross Unrealized, Losses	(13)		(13)		(15)
Securities with non-credit other-than-temporary impairment charges [Member]
Investment [Line Items]
Gross Unrealized, Gains	148		148		151
Gross Unrealized, Losses	(7)		(7)		(8)
Fixed maturities [Member]
Investment [Line Items]
Fixed maturities, Gross Unrealized, Losses	(169)		$ (169)		(79)
Number of available for sale securities in an unrealized loss position | security			1,040
Other than temporary impairment charges	10	$ 0	$ 15	$ 1
Corporate bonds [Member]
Investment [Line Items]
Other than temporary impairment charges			10
Municipal bonds [Member]
Investment [Line Items]
Other than temporary impairment charges			$ 4
Common stocks [Member]
Investment [Line Items]
Number of available for sale securities in an unrealized loss position | security			47
Other than temporary impairment charges			$ 25
Equity securities, Gross Unrealized, Losses	(30)		$ (30)		(25)
Preferred stocks [Member]
Investment [Line Items]
Number of available for sale securities in an unrealized loss position | security			22
Equity securities, Gross Unrealized, Losses	$ (5)		$ (5)		$ (5)
Maximum [Member] | Residential Mortgage Backed Securities [Member]
Investment [Line Items]
Other than temporary impairment charges			$ 1
Number of available for sale securities in an unrealized loss position for twelve months or longer [Member] | Common stocks [Member]
Investment [Line Items]
Number of available for sale securities in an unrealized loss position | security			0
Number of available for sale securities in an unrealized loss position for twelve months or longer [Member] | Preferred stocks [Member]
Investment [Line Items]
Number of available for sale securities in an unrealized loss position | security			3

Derivatives (Details)

Derivatives (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	$ 448	$ 499
Derivative liability, at fair value	1,267	1,173
MBS with embedded derivatives [Member] | Fixed maturities [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	170	158
Public company warrants [Member] | Equity securities [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	0	19
Interest rate swaptions [Member] | Other investments [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	0	0
Fixed-indexed annuities (embedded derivative) [Member] | Annuity benefits accumulated [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative liability, at fair value	1,258	1,160
Equity index call options [Member] | Other investments [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	278	322
Reinsurance contracts (embedded derivative) [Member] | Other liabilities [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative liability, at fair value	$ 9	$ 13

Derivatives (Details 1)

Derivatives (Details 1) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	$ 24	$ (13)	$ (8)	$ (39)
MBS with embedded derivatives [Member] | Realized gains on securities [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	(1)	4	(3)	7
Public company warrants [Member] | Realized gains on securities [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	0	0	0	(2)
Interest rate swaptions [Member] | Realized gains on securities [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	0	(1)	0	(2)
Fixed-indexed annuities (embedded derivative) [Member] | Annuity benefits [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	19	(78)	(31)	(132)
Equity index call options [Member] | Annuity benefits [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	3	63	23	93
Reinsurance contracts (embedded derivative) [Member] | Net investment income [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	$ 3	$ (1)	$ 3	$ (3)

Derivatives (Details Textual)

Derivatives (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Dec. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Indexed annuities as a percentage of annuity benefits	50.00%		50.00%
Carrying value of collateral received to support purchased call options	$ 265,000,000		$ 265,000,000
Not Designated as Hedging Instrument [Member] | Interest rate swaptions [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivative asset instrument outstanding	200,000,000		200,000,000
Payments to purchase swaptions			4,000,000
Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Contract term of derivative instrument		5 years
Notional amount of derivative instrument outstanding		$ 431,000,000
Gain (loss) reclassified from AOCI into net investment income	1,000,000		2,000,000
Gain (loss) on cash flow hedge ineffectiveness recorded in Net Earnings	$ 0		0
Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Five-year interest rate swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Contract term of derivative instrument	5 years
Notional amount of derivative instrument outstanding	$ 195,000,000		195,000,000
Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Fifteen-year interest rate swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Contract term of derivative instrument	15 years
Notional amount of derivative instrument outstanding	$ 132,000,000		132,000,000
Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivative instrument outstanding	673,000,000		673,000,000	$ 401,000,000
Other assets [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value (are less than in 2014)	1,000,000		1,000,000
Other assets [Member] | Maximum [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value (are less than in 2014)				$ 1,000,000
Other liabilities [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value (are less than in 2014)	$ (1,000,000)		$ (1,000,000)
Senior Notes [Member] | 9-7/8% Senior Notes due June 2019 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate, percentage	9.875%		9.875%
AFG [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest rate description of fair value hedge activity			three-month LIBOR plus 8.099%
AFG [Member] | Fair Value Hedge [Member] | Designated as Hedging Instrument [Member] | Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Effective interest rate, percentage	8.3847%		8.3847%
AFG [Member] | Maximum [Member] | Fair Value Hedge [Member] | Designated as Hedging Instrument [Member] | Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
The net reduction in interest expense from interest rate swaps (are less than)	$ 1,000,000
AFG [Member] | Long-term debt [Member] | Fair Value Hedge [Member] | Designated as Hedging Instrument [Member] | Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value (are less than in 2014)	$ 2,000,000		$ 2,000,000
AFG [Member] | Senior Notes [Member] | 9-7/8% Senior Notes due June 2019 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate, percentage	9.875%		9.875%
AFG [Member] | LIBOR [Member] | Fair Value Hedge [Member] | Designated as Hedging Instrument [Member] | Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Basis spread on variable interest rate	8.099%		8.099%

Deferred Policy Acquisition C58

Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Movement Analysis of Deferred Policy Acquisition Costs and Present Value of Future Profits [Roll Forward]
Deferred policy acquisition costs and present value of future profits, beginning balance	$ 756	$ 890	$ 821	$ 975
Deferred policy acquisition costs and present value of future profits, additions	184	180	352	358
Deferred policy acquisition costs and present value of future profits, periodic amortization	(195)	(165)	(360)	(323)
Deferred policy acquisition costs and present value of future profits, change included in realized gains	2	1	4	1
Deferred policy acquisition costs and present value of future profits, foreign currency translation	(1)	1	0	1
Deferred policy acquisition costs and present value of future profits, change in unrealized	219	(101)	148	(206)
Deferred policy acquisition costs and present value of future profits, ending balance	965	806	965	806
Property and Casualty Insurance [Member]
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Deferred policy acquisition costs, beginning balance	217	214	221	211
Deferred policy acquisition costs, additions	137	127	258	251
Deferred policy acquisition costs, periodic amortization	(130)	(123)	(256)	(244)
Deferred policy acquisition costs, foreign currency translation	(1)	1	0	1
Deferred policy acquisition costs, ending balance	223	219	223	219
Annuity and Run-off Long-term Care and Life [Member]
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Deferred policy acquisition costs, beginning balance	942	898	925	875
Deferred policy acquisition costs, additions	46	52	90	102
Deferred policy acquisition costs, periodic amortization	(55)	(33)	(84)	(60)
Deferred policy acquisition costs, change included in realized gains	1	1	3	1
Deferred policy acquisition costs, ending balance	934	918	934	918
Movement in Deferred Sales Inducements [Roll Forward]
Deferred sales inducements, beginning balance	128	146	132	149
Deferred sales inducements, additions	1	1	4	5
Deferred sales inducements, periodic amortization	(7)	(6)	(14)	(13)
Deferred sales inducements, change included in realized gains	1	0	1	0
Deferred sales inducements, ending balance	123	141	123	141
Movement in Present Value of Future Insurance Profits [Roll Forward]
Present value of future profits, beginning balance	71	82	74	85
Present value of future profits, periodic amortization	(3)	(3)	(6)	(6)
Present value of future profits, ending balance	68	79	68	79
Movement in Unrealized Gains (Losses) Related to Deferred Policy Acquisition Costs and Present Value of Future Profits [Roll Forward]
Unrealized investment gains (losses), beginning balance	(602)	(450)	(531)	(345)
Unrealized investment gains (losses), change in unrealized	219	(101)	148	(206)
Unrealized investment gains (losses), ending balance	(383)	(551)	(383)	(551)
Movement Analysis of Deferred Policy Acquisition Costs and Present Value of Future Profits [Roll Forward]
Deferred policy acquisition costs and present value of future profits, beginning balance	539	676	600	764
Deferred policy acquisition costs and present value of future profits, additions	47	53	94	107
Deferred policy acquisition costs and present value of future profits, periodic amortization	(65)	(42)	(104)	(79)
Deferred policy acquisition costs and present value of future profits, change included in realized gains	2	1	4	1
Deferred policy acquisition costs and present value of future profits, change in unrealized	219	(101)	148	(206)
Deferred policy acquisition costs and present value of future profits, ending balance	$ 742	$ 587	$ 742	$ 587

Deferred Policy Acquisition C59

Deferred Policy Acquisition Costs (Details Textual) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Deferred Policy Acquisition Costs Disclosures [Abstract]
Accumulated amortization of present value of future profits	$ 215	$ 209

Managed Investment Entities (De

Managed Investment Entities (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Gains (losses) on change in fair value of assets/liabilities:
Assets	[1]	$ (7)	$ (1)	$ 26	$ (2)
Liabilities	[1]	5	(9)	(31)	(8)
Management fees paid to AFG		3	8	7	11
CLO earnings (losses) attributable to:
AFG shareholders	[2]	5	6	8	11
Noncontrolling interests	[2]	$ 0	$ (18)	$ 0	$ (18)
[1]	Included in Revenues in AFG’s Statement of Earnings.
[2]	Included in Earnings before income taxes in AFG’s Statement of Earnings.

Managed Investment Entities (61

Managed Investment Entities (Details Textual) $ in Millions	1 Months Ended	6 Months Ended
	May. 31, 2015USD ($)	Jun. 30, 2015USD ($)collateralizedloanobligation	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Variable Interest Entity [Line Items]
Percentage of investment of most subordinate debt tranche, Minimum		15.00%
Percentage of investment of most subordinate debt tranche, Maximum		51.20%
Number of collateralized loan obligation entities | collateralizedloanobligation		13
Proceeds received by subsidiaries related to redemptions of managed investment entities liabilities		$ 1	$ 54
Difference between aggregate unpaid principal balance and fair value of CLOs' fixed maturity investments		63		$ 83
Difference between aggregate unpaid principal balance and carrying value of CLOs' debt		134		131
Carrying amount of CLO loans in default		2		2
Aggregate unpaid principal balance of CLO loans in default		10		6
Variable interest entity, primary beneficiary [Member]
Variable Interest Entity [Line Items]
Aggregate fair value of investment in collateralized loan obligations		319		$ 289
New Collateralized Loan Obligation Entities [Member]
Variable Interest Entity [Line Items]
Face value of liabilities issued by managed investment entities on issuance date	$ 511
Face amount of managed investment entities liabilities purchased by subsidiaries at issuance date	$ 45
Subordinated debt obligations [Member] | Variable interest entity, primary beneficiary [Member]
Variable Interest Entity [Line Items]
Aggregate fair value of investment in collateralized loan obligations		$ 87
Senior debt obligations [Member]
Variable Interest Entity [Line Items]
Face amount of managed investment entities liabilities purchased by subsidiaries after issuance date			6
Amount paid by subsidiaries to purchase managed investment entities liabilities after issuance date			$ 6

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the goodwill balance during the period			$ 0
Goodwill	$ 201		201		$ 201
Amortizable intangible assets related to property and casualty insurance acquisitions	45		45		49
Accumulated amortization	14		14		$ 91
Amortization of intangible assets	$ 2	$ 5	$ 4	$ 8

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Summary of Carrying value of long-term debt
Long-term debt	$ 1,024	$ 1,061
AFG [Member]
Summary of Carrying value of long-term debt
Other long-term debt	3	3
Long-term debt	840	840
Subsidiaries [Member]
Summary of Carrying value of long-term debt
Long-term debt	34	71
Notes payable secured by real estate due 2015 through 2016	22	59
National Interstate bank credit facility	12	12
Senior Notes [Member] | 9-7/8% Senior Notes due June 2019 [Member] | AFG [Member]
Summary of Carrying value of long-term debt
Senior Notes	350	350
Senior Notes [Member] | 6-3/8% Senior Notes due June 2042 [Member] | AFG [Member]
Summary of Carrying value of long-term debt
Senior Notes	230	230
Senior Notes [Member] | 5-3/4% Senior Notes due August 2042 [Member] | AFG [Member]
Summary of Carrying value of long-term debt
Senior Notes	125	125
Senior Notes [Member] | 7% Senior Notes due September 2050 [Member] | AFG [Member]
Summary of Carrying value of long-term debt
Senior Notes	132	132
Subordinated Debt [Member] | 6-1/4% Subordinated Debentures due September 2054 [Member] | AFG [Member]
Summary of Carrying value of long-term debt
Subordinated Debentures	$ 150	$ 150

Long-Term Debt (Details 1)

Long-Term Debt (Details 1) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Summary showing division of total long term debt
Obligations secured by real estate	$ 22	$ 59
Long-term debt	1,024	1,061
Senior unsecured obligations [Member]
Summary showing division of total long term debt
Unsecured obligations	852	852
Subordinated unsecured obligations [Member]
Summary showing division of total long term debt
Unsecured obligations	$ 150	$ 150

Long-Term Debt (Details Textual

Long-Term Debt (Details Textual) - USD ($)	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Long-term Debt, Fiscal Year Maturity [Abstract]
Scheduled principal payments on debt in 2015	$ 12,000,000	$ 12,000,000
Scheduled principal payments on debt in 2016	10,000,000	10,000,000
Scheduled principal payments on debt in 2017	12,000,000	12,000,000
Scheduled principal payments on debt in 2018	0	0
Scheduled principal payments on debt in 2019	350,000,000	350,000,000
Scheduled principal payments on debt in 2020	0	0
Scheduled principal payments on debt after 2020	640,000,000	640,000,000
AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Revolving credit line	500,000,000	500,000,000
Amount borrowed under AFG revolving credit facility	0	$ 0	$ 0
Interest rate description of fair value hedge activity		three-month LIBOR plus 8.099%
Interest rate description for revolving credit facility		1.00% to 1.875% (currently 1.375%) over LIBOR
National Interstate [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Revolving credit line	$ 100,000,000	$ 100,000,000
Interest rate on revolving debt facility	1.28%
Loans payable under National Interstate bank credit facility	$ 12,000,000	$ 12,000,000
Interest rate description for revolving credit facility		six-month LIBOR plus 0.875% (currently 1.28%)
LIBOR [Member] | AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	1.375%
LIBOR [Member] | AFG [Member] | Minimum [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	1.00%
LIBOR [Member] | AFG [Member] | Maximum [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	1.875%
LIBOR [Member] | National Interstate [Member] | Maximum [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	0.875%
Interest rate swaps [Member] | Fair Value Hedge [Member] | Designated as Hedging Instrument [Member] | AFG [Member]
Debt Instrument [Line Items]
Effective interest rate, percentage	8.3847%	8.3847%
Interest rate swaps [Member] | Fair Value Hedge [Member] | Designated as Hedging Instrument [Member] | LIBOR [Member] | AFG [Member]
Debt Instrument [Line Items]
Basis spread on variable interest rate	8.099%	8.099%
Long-term debt [Member] | Interest rate swaps [Member] | Fair Value Hedge [Member] | Designated as Hedging Instrument [Member] | AFG [Member]
Debt Instrument [Line Items]
Net derivatives, at fair value	$ 2,000,000	$ 2,000,000
9-7/8% Senior Notes due June 2019 [Member] | Senior Notes [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Stated interest rate, percentage	9.875%	9.875%
9-7/8% Senior Notes due June 2019 [Member] | Senior Notes [Member] | AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Stated interest rate, percentage	9.875%	9.875%
6-3/8% Senior Notes due June 2042 [Member] | Senior Notes [Member] | AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Stated interest rate, percentage	6.375%	6.375%
5-3/4% Senior Notes due August 2042 [Member] | Senior Notes [Member] | AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Stated interest rate, percentage	5.75%	5.75%
7% Senior Notes due September 2050 [Member] | Senior Notes [Member] | AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Stated interest rate, percentage	7.00%	7.00%
6-1/4% Subordinated Debentures due September 2054 [Member] | Subordinated Debt [Member] | AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Stated interest rate, percentage	6.25%	6.25%

Shareholders' Equity (Details)

Shareholders' Equity (Details) - Jun. 30, 2015 - $ / shares	Total
Voting Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, par value	$ 0
Preferred Stock, shares authorized	12,500,000
Nonvoting Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, par value	$ 0
Preferred Stock, shares authorized	12,500,000

Shareholders' Equity (Details 1

Shareholders' Equity (Details 1) - USD ($) $ in Millions		3 Months Ended			6 Months Ended
		Jun. 30, 2015		Jun. 30, 2014	Jun. 30, 2015		Jun. 30, 2014
Components of accumulated other comprehensive income
Unrealized holding gains (losses) on securities arising during the period, pretax		$ (329)		$ 200	$ (223)		$ 411
Unrealized holding gains (losses) on securities arising during the period, tax		115		(70)	78		(144)
Unrealized holding gains (losses) on securities arising during the period, net of tax		(214)		130	(145)		267
Unrealized holding gains (losses) on securities arising during the period, attributable to noncontrolling interests		3		(3)	2		(6)
Unrealized holding gains (losses) on securities arising during the period, attributable to shareholders		(211)		127	(143)		261
Reclassification adjustment for realized (gains) losses included in net earnings, pretax	[1]	(1)		(12)	(20)		(30)
Reclassification adjustment for realized (gains) losses included in net earnings, tax	[1]	0		4	7		10
Reclassification adjustment for realized (gains) losses included in net earnings, net of tax		(1)		(8)	(13)		(20)
Reclassification adjustment for realized (gains) losses included in net earnings, attributable to noncontrolling interests	[1]	0		1	0		1
Reclassification adjustment for realized (gains) losses included in net earnings, attributable to shareholders		(1)		(7)	(13)		(19)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated other comprehensive income, net unrealized gains on securities, beginning balance		799	[2]	685	743	[2]	563
Other comprehensive income, net unrealized gains on securities, pretax		(330)		188	(243)		381
Other comprehensive income, net unrealized gains on securities, tax		115		(66)	85		(134)
Total net unrealized gains (losses) on securities		(215)		122	(158)		247
Other comprehensive income, net unrealized gains on securities, attributable to noncontrolling interests		3		(2)	2		(5)
Other comprehensive income, net unrealized gains on securities, attributable to shareholders		(212)		120	(156)		242
Accumulated other comprehensive income, net unrealized gains on securities, ending balance		587	[2]	805	587	[2]	805
Accumulated other comprehensive income, net unrealized gains (losses) on cash flow hedges, beginning balance		1			0
Other comprehensive income, net unrealized gains (losses) on cash flow hedges, pretax		(1)			0
Other comprehensive income, net unrealized gains (losses) on cash flow hedges, tax		0			0
Other comprehensive income, net unrealized gains (losses) on cash flow hedges, net of tax		(1)		0	0		0
Other comprehensive income, net unrealized gains (losses) on cash flow hedges, attributable to noncontrolling interests		0			0
Other comprehensive income, net unrealized gains (losses) on cash flow hedges, attributable to shareholders		(1)			0
Accumulated other comprehensive income, net unrealized gains (losses) on cash flow hedges, ending balance		0			0
Accumulated other comprehensive income, foreign currency translation adjustments, beginning balance		(16)		(4)	(8)		1
Other comprehensive income, foreign currency translation adjustments, pretax		0		2	(8)		(3)
Other comprehensive income, foreign currency translation adjustments, net of tax		0		2	(8)		(3)
Other comprehensive income, foreign currency translation adjustments, attributable to noncontrolling interests		0		0	0		0
Other comprehensive income, foreign currency translation adjustments, attributable to shareholders		0		2	(8)		(3)
Accumulated other comprehensive income, foreign currency translation adjustments, ending balance		(16)		(2)	(16)		(2)
Accumulated other comprehensive income, pension and other postretirement plans adjustments, beginning balance		(8)		(4)	(8)		(4)
Other comprehensive income, pension and other postretirement plans adjustments, pretax		0		0	0		0
Other comprehensive income, pension and other postretirement plans adjustments, tax		0		0	0		0
Other comprehensive income, pension and other postretirement plans adjustments, net of tax		0		0	0		0
Other comprehensive income, pension and other postretirement plans adjustments, attributable to shareholders		0		0	0		0
Accumulated other comprehensive income, pension and other postretirement plans adjustments, ending balance		(8)		(4)	(8)		(4)
Accumulated other comprehensive income, total, beginning balance		776		677	727		560
Other comprehensive income, total, pretax		(331)		190	(251)		378
Other comprehensive income, total, tax		115		(66)	85		(134)
Other comprehensive income (loss), net of tax		(216)		124	(166)		244
Other comprehensive income, total, attributable to noncontrolling interests		3		(2)	2		(5)
Other comprehensive income, total, attributable to shareholders		(213)		122	(164)		239
Accumulated other comprehensive income, total, ending balance		$ 563		$ 799	$ 563		$ 799
[1]	The reclassification adjustment out of net unrealized gains on securities affected the following lines in AFG’s Consolidated Statement of Earnings: OCI component Affected line in the Consolidated Statement of Earnings Pretax Realized gains (losses) on securities Tax Provision for income taxes Attributable to noncontrolling interests Net earnings (loss) attributable to noncontrolling interests
[2]	Includes net unrealized gains of $57 million at both June 30, 2015 and March 31, 2015 and $58 million at December 31, 2014 related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.

Shareholders' Equity (Details 2

Shareholders' Equity (Details 2) - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Stock Options, Valuation Assumptions
Exercise price	$ 63.15	$ 56.44
Expected dividend yield	1.60%	1.60%
Expected volatility	25.00%	26.00%
Expected term (in years)	7 years 3 months	7 years 3 months
Risk-free rate	1.88%	2.20%
Grant date fair value	$ 15.29	$ 14.65

Shareholders' Equity (Details T

Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net of tax unrealized gains (losses) related to credit-only impaired securities	$ 57	$ 57		$ 57		$ 58
Common Stock options issued under stock incentive plan, average exercise price				$ 63.15	$ 56.44
Compensation expense related to stock incentive plans	$ 7		$ 7	$ 13	$ 14
Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Common Stock, shares issued				171,130
Restricted Common Stock, fair value per share				$ 63.15
Common Stock options issued under stock incentive plan				716,818
Common Stock options issued under stock incentive plan, average exercise price				$ 63.15
Annual Equity Bonus Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other benefit plans, shares		54,732
Common Stock issued, fair value per share		$ 62.55

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Earnings before income taxes (“EBT”)	$ 226	$ 130	$ 256	$ 291
Income taxes at statutory rate	80	46	90	102
Effect of tax exempt interest	(7)	(7)	(14)	(12)
Effect of change in valuation allowance	1	2	0	3
Effect of losses of managed investment entities	0	6	0	6
Effect of subsidiaries not in AFG's tax return	1	(2)	2	(1)
Effect of other income tax reconciliation	2	2	4	3
Provision for income taxes as shown on the Statement of Earnings	$ 77	$ 47	$ 82	$ 101
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Income taxes at statutory rate as a percentage of EBT	35.00%	35.00%	35.00%	35.00%
Effect of tax exempt interest as a percentage of EBT	(3.00%)	(5.00%)	(5.00%)	(4.00%)
Effect of change in valuation allowance as a percentage of EBT	0.00%	2.00%	0.00%	1.00%
Effect of losses of managed investment entities as a percentage of EBT	0.00%	5.00%	0.00%	2.00%
Effect of subsidiaries not in AFG's tax return as a percentage of EBT	0.00%	(2.00%)	1.00%	0.00%
Effect of other income tax reconciliation as a percentage of EBT	2.00%	1.00%	1.00%	1.00%
Provision for income taxes as shown on the Statement of Earnings as a percentage of EBT	34.00%	36.00%	32.00%	35.00%

Income Taxes (Details Textual)

Income Taxes (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Statutory rate of income taxes	35.00%	35.00%	35.00%	35.00%

Contingencies (Details)

Contingencies (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2015	Jun. 30, 2015
Run-off long-term care insurance business [Member]
Loss Contingencies [Line Items]
Pretax loss on subsidiaries recorded in the first six months of 2015	$ (162)	$ (162)