American Financial (AFG) 10-Q4 Nov 162016 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2016	Nov. 01, 2016
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	Sep. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		86,845,988

Consolidated Balance Sheet (Una

Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Assets:
Cash and cash equivalents	$ 1,639	$ 1,220
Investments:
Fixed maturities, available for sale at fair value (amortized cost — $33,586 and $31,565)	35,394	32,284
Fixed maturities, trading at fair value	348	254
Equity securities, available for sale at fair value (cost — $1,392 and $1,469)	1,553	1,553
Equity securities, trading at fair value	86	166
Mortgage loans	1,180	1,067
Policy loans	194	201
Real estate and other investments	1,411	991
Total cash and investments	41,805	37,736
Recoverables from reinsurers	2,814	2,636
Prepaid reinsurance premiums	634	480
Agents’ balances and premiums receivable	1,029	937
Deferred policy acquisition costs	867	1,184
Assets of managed investment entities	4,312	4,047
Other receivables	1,391	820
Variable annuity assets (separate accounts)	606	608
Other assets	1,188	1,190
Goodwill	199	199
Total assets	54,845	49,837
Liabilities and Equity:
Unpaid losses and loss adjustment expenses	8,661	8,127
Unearned premiums	2,328	2,060
Annuity benefits accumulated	29,222	26,622
Life, accident and health reserves	700	705
Payable to reinsurers	835	591
Liabilities of managed investment entities	4,067	3,781
Long-term debt	1,300	998
Variable annuity liabilities (separate accounts)	606	608
Other liabilities	1,768	1,575
Total liabilities	49,487	45,067
Shareholders’ equity:
Common Stock, no par value — 200,000,000 shares authorized — 86,812,651 and 87,474,452 shares outstanding	87	87
Capital surplus	1,242	1,214
Retained earnings	3,079	2,987
Accumulated other comprehensive income, net of tax	753	304
Total shareholders’ equity	5,161	4,592
Noncontrolling interests	197	178
Total equity	5,358	4,770
Total liabilities and equity	$ 54,845	$ 49,837

Consolidated Balance Sheet (Un3

Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Fixed maturities, available for sale at amortized cost	$ 33,586	$ 31,565
Equity securities, available for sale at cost	$ 1,392	$ 1,469
Common Stock, par value (USD per share)	$ 0	$ 0
Common Stock, shares authorized	200,000,000	200,000,000
Common Stock, shares outstanding	86,812,651	87,474,452

Consolidated Statement of Earni

Consolidated Statement of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Property and casualty insurance net earned premiums	$ 1,159	$ 1,173	$ 3,184	$ 3,104
Life, accident and health net earned premiums	6	28	18	80
Net investment income	433	425	1,267	1,217
Realized gains (losses) on:
Securities	2	(16)	(32)	2
Subsidiaries	0	5	2	(157)
Income (loss) of managed investment entities:
Investment income	48	40	141	112
Gain (loss) on change in fair value of assets/liabilities	11	(11)	9	(16)
Other income	46	43	172	185
Total revenues	1,705	1,687	4,761	4,527
Costs and Expenses:
Property and casualty insurance: Losses and loss adjustment expenses	765	825	2,033	2,002
Property and casualty insurance: Commissions and other underwriting expenses	356	336	1,038	987
Annuity benefits	189	208	640	543
Life, accident and health benefits	8	31	26	96
Annuity and supplemental insurance acquisition expenses	54	49	131	156
Interest charges on borrowed money	19	18	56	58
Expenses of managed investment entities	38	28	109	80
Other expenses	98	93	258	250
Total costs and expenses	1,527	1,588	4,291	4,172
Earnings before income taxes	178	99	470	355
Provision for income taxes	65	33	190	115
Net earnings, including noncontrolling interests	113	66	280	240
Less: Net earnings attributable to noncontrolling interests	4	3	16	17
Net Earnings Attributable to Shareholders	$ 109	$ 63	$ 264	$ 223
Earnings Attributable to Shareholders per Common Share:
Basic (USD per share)	$ 1.25	$ 0.72	$ 3.04	$ 2.54
Diluted (USD per share)	$ 1.23	$ 0.71	$ 2.98	$ 2.49
Average number of Common Shares:
Basic (shares)	86.9	87.5	86.8	87.6
Diluted (shares)	88.5	89.3	88.4	89.4
Cash dividends per Common Share (USD per share)	$ 0.28	$ 0.25	$ 0.84	$ 0.75
Supplemental disclosure of Realized gains on securities:
Realized gains before impairments	$ 18	$ 19	$ 75	$ 71
Losses on securities with impairment	(16)	(35)	(106)	(69)
Non-credit portion recognized in other comprehensive income (loss)	0	0	(1)	0
Impairment charges recognized in earnings	(16)	(35)	(107)	(69)
Total realized gains (losses) on securities	$ 2	$ (16)	$ (32)	$ 2

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net earnings, including noncontrolling interests	$ 113	$ 66	$ 280	$ 240
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period	89	(110)	427	(255)
Reclassification adjustment for realized (gains) losses included in net earnings	(1)	10	20	(3)
Total net unrealized gains (losses) on securities	88	(100)	447	(258)
Net unrealized gains on cash flow hedges	0	2	4	2
Foreign currency translation adjustments	(3)	(7)	4	(15)
Pension and other postretirement plans adjustments	0	1	1	1
Other comprehensive income (loss), net of tax	85	(104)	456	(270)
Total comprehensive income (loss), net of tax	198	(38)	736	(30)
Less: Comprehensive income attributable to noncontrolling interests	5	1	23	13
Comprehensive income (loss) attributable to shareholders	$ 193	$ (39)	$ 713	$ (43)

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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of accounting change for variable interest entities	$ 2	$ 2			$ 2
Beginning Balance, shares at Dec. 31, 2014			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]
Net earnings	240	223				223		17
Other comprehensive income (loss)	(270)	(266)					(266)	(4)
Dividends on Common Stock	(66)	(66)				(66)
Shares issued:
Exercise of stock options, shares			1,157,288
Exercise of stock options	37	37		37
Restricted stock awards, shares			171,130
Restricted stock awards	0	0		0
Other benefit plans, shares			97,817
Other benefit plans	6	6		6
Dividend reinvestment plan, shares			10,359
Dividend reinvestment plan	1	1		1
Stock-based compensation:
Stock-based compensation: Expense	14	14		14
Stock-based compensation: Excess tax benefits	9	9		9
Shares acquired and retired, shares			(1,767,240)
Shares acquired and retired	(113)	(113)		(25)		(88)
Shares exchanged - benefit plans, shares			(33,795)
Shares exchanged - benefit plans	(2)	(2)				(2)
Forfeitures of restricted stock, shares			(17,180)
Forfeitures of restricted stock	0	0		0
Other	(6)							(6)
Ending Balance, shares at Sep. 30, 2015			87,327,172
Ending Balance at Sep. 30, 2015	$ 4,906	4,724		1,282	0	2,981	461	182
Beginning Balance, shares at Dec. 31, 2015	87,474,452		87,474,452
Beginning Balance at Dec. 31, 2015	$ 4,770	4,592		1,301	0	2,987	304	178
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	280	264				264		16
Other comprehensive income (loss)	456	449					449	7
Dividends on Common Stock	(73)	(73)				(73)
Shares issued:
Exercise of stock options, shares			753,095
Exercise of stock options	26	26		26
Restricted stock awards, shares			318,940
Restricted stock awards	0	0		0
Other benefit plans, shares			82,087
Other benefit plans	6	6		6
Dividend reinvestment plan, shares			10,930
Dividend reinvestment plan	1	1		1
Stock-based compensation:
Stock-based compensation: Expense	15	15		15
Stock-based compensation: Excess tax benefits	7	7		7
Shares acquired and retired, shares			(1,796,009)
Shares acquired and retired	(124)	(124)		(27)		(97)
Shares exchanged - benefit plans, shares			(28,059)
Shares exchanged - benefit plans	(2)	(2)				(2)
Forfeitures of restricted stock, shares			(2,785)
Forfeitures of restricted stock	0	0		0
Other	$ (4)							(4)
Ending Balance, shares at Sep. 30, 2016	86,812,651		86,812,651
Ending Balance at Sep. 30, 2016	$ 5,358	$ 5,161		$ 1,329	$ 0	$ 3,079	$ 753	$ 197

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating Activities:
Net earnings, including noncontrolling interests	$ 280	$ 240
Adjustments:
Depreciation and amortization	91	118
Annuity benefits	640	543
Realized (gains) losses on investing activities	(6)	90
Net (purchases) sales of trading securities	73	(9)
Deferred annuity and life policy acquisition costs	(172)	(164)
Change in:
Reinsurance and other receivables	(972)	(468)
Other assets	(257)	68
Insurance claims and reserves	796	491
Payable to reinsurers	244	79
Other liabilities	230	(45)
Managed investment entities’ assets/liabilities	(235)	(53)
Other operating activities, net	(39)	17
Net cash provided by operating activities	673	907
Investing Activities:
Purchases of fixed maturities	(5,604)	(5,395)
Purchases of equity securities	(143)	(449)
Purchases of mortgage loans	(310)	(105)
Purchases of real estate, property and equipment	(37)	(65)
Proceeds from maturities and redemptions of fixed maturities	3,111	2,426
Proceeds from repayments of mortgage loans	197	231
Proceeds from sales of fixed maturities	496	235
Proceeds from sales of equity securities	193	193
Proceeds from sales of real estate, property and equipment	45	96
Managed investment entities:
Purchases of investments	(1,405)	(1,167)
Proceeds from sales and redemptions of investments	1,381	685
Other investing activities, net	(370)	(100)
Net cash used in investing activities	(2,446)	(3,415)
Financing Activities:
Annuity receipts	3,474	3,333
Annuity surrenders, benefits and withdrawals	(1,726)	(1,487)
Net transfers from variable annuity assets	29	32
Additional long-term borrowings	302	0
Reductions of long-term debt	0	(182)
Issuances of managed investment entities’ liabilities	1,028	693
Retirements of managed investment entities’ liabilities	(747)	(192)
Issuances of Common Stock	34	47
Repurchases of Common Stock	(124)	(113)
Cash dividends paid on Common Stock	(72)	(65)
Other financing activities, net	(6)	(7)
Net cash provided by financing activities	2,192	2,059
Net Change in Cash and Cash Equivalents	419	(449)
Cash and cash equivalents at beginning of period	1,220	1,343
Cash and cash equivalents at end of period	$ 1,639	$ 894

Accounting Policies

Accounting Policies	9 Months Ended
Accounting Policies	Sep. 30, 2016
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 September 30, 2016 , 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. AFG did not have any significant nonrecurring fair value measurements in the first nine months of 2016 . 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. In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, which, among other things, will require all equity securities currently classified as “available for sale” to be reported at fair value, with holding gains and losses recognized in net income, instead of AOCI. AFG will be required to adopt this guidance effective January 1, 2018. 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 statement of earnings as the cash flows from the hedged item. AFG uses interest rate swaps that are designated and 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. An AFG 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 ” ). 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) through its investment in the CLO debt tranches, it has exposure to CLO losses (limited to the amount AFG invested) and the right to receive CLO benefits that could potentially be significant to the CLOs. On January 1, 2016, AFG adopted ASU 2015-02, which amended certain consolidation accounting guidance, including the VIE guidance that applies to collateralized financing entities such as CLOs. The new guidance affects how fee arrangements with CLO asset managers impact the determination of the primary beneficiary of those entities. Due to the significance of AFG’s investments in the CLOs that it manages, the new guidance did not impact the consolidation of AFG’s currently outstanding CLOs. The new guidance also impacted the consolidation analysis that applies to limited partnerships and similar entities, but did not result in a change to 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 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 ASU 2014-13, 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. This difference was recorded as “appropriated retained earnings — managed investment entities” in AFG’s Balance Sheet. In accordance with the guidance adopted in 2015, 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. 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 (included in other income) 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. Debt Issuance Costs Debt issuance costs related to AFG’s outstanding debt are amortized over the life of the related debt using the effective interest method. Effective January 1, 2016, AFG adopted (on a retrospective basis) ASU 2015-03, which requires debt issuance costs to be presented in the balance sheet as a direct reduction in the carrying value of long-term debt (consistent with the treatment of debt discounts) with the periodic amortization of such costs included in interest expense. Debt issuance costs related to AFG’s revolving credit facilities will continue to be included in other assets in AFG’s Balance Sheet. Prior to AFG’s adoption of ASU 2015-03, AFG reported unamortized debt issuance costs as a deferred charge asset (included in other assets) in AFG’s Balance Sheet and the periodic amortization was included in other expenses in AFG’s Statement of Earnings. The updated guidance did not affect the overall recognition and measurement guidance for debt issuance costs. Accordingly, the guidance did not have an overall impact on AFG’s Shareholders’ Equity or results of operations. 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. 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: third quarter of 2016 and 2015 — 1.6 million and 1.8 million ; first nine months of 2016 and 2015 — 1.6 million and 1.8 million , respectively. AFG’s weighted average diluted shares outstanding excludes the following anti-dilutive potential common shares related to stock compensation plans: third quarter of 2016 and 2015 — 0.2 million and 0.9 million ; first nine months of 2016 and 2015 — 0.6 million and 1.2 million , respectively. Adjustments to net earnings attributable to shareholders in the calculation of diluted earnings per share were nominal in the 2016 and 2015 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.

Acquisition and Sale of Busines

Acquisition and Sale of Businesses	9 Months Ended
Acquisition and Sale of Businesses	Sep. 30, 2016
Disclosure Text Block [Abstract]
Acquisition and Sales of Businesses	Acquisition and Sale of Businesses Proposed Acquisition of Noncontrolling Interest in National Interstate Corporation On July 25, 2016, AFG announced that it reached an agreement with the Special Committee of the Board of Directors of National Interstate Corporation (“NATL”) to acquire all shares of NATL that it does not currently own. NATL is currently a 51% -owned subsidiary of AFG’s wholly-owned subsidiary, Great American Insurance Company (“GAI”). Shareholders of NATL, other than GAI, will receive $32.00 per share in cash in the transaction. In addition, NATL will pay a one-time special dividend to its shareholders of $0.50 per NATL share in cash immediately prior to the closing of the merger. The transaction remains subject to the approval of shareholders holding a majority of the shares of NATL not owned by AFG or its affiliates. On November 10, 2016, a special meeting will be held for NATL shareholders to vote on the proposed transaction. GAI has entered into a voting agreement with certain shareholders of NATL under which the shareholders agreed, among other things, to vote all common shares of NATL owned by such shareholders, totaling approximately 10% of the outstanding NATL common shares (and representing approximately 20% of the shares not owned by GAI), in favor of the transaction. Based on a $32.00 per share purchase price plus $0.50 special dividend, the purchase price to acquire the NATL shares not currently owned by GAI will be approximately $320 million . Because NATL is already a consolidated subsidiary of AFG, the acquisition will be accounted for as an equity transaction with the excess of the consideration paid over the carrying value of the noncontrolling interest acquired recorded as a direct reduction in AFG’s Capital Surplus (approximately $140 million based on balances as of September 30, 2016). In addition, the proposed transaction will allow NATL and its subsidiaries to become members of the AFG consolidated tax group, which will result in a tax benefit of approximately $66 million to AFG at the time the transaction is consummated, which is expected to be during the fourth quarter of 2016. Sale of Long-term Care Business On December 24, 2015, AFG completed the sale of substantially all of its run-off long-term care insurance business (which was included in the run-off long-term care and life segment) to HC2 Holdings, Inc. (“HC2”) for an initial payment of $7 million in cash and HC2 securities with a fair value of $11 million (subject to post-closing adjustments). AFG may also receive up to $13 million of additional proceeds from HC2 in the future contingent upon the release of certain statutory-basis liabilities of the legal entities sold by AFG. In connection with obtaining regulatory approval for the transaction, AFG agreed to provide up to an aggregate of $35 million of capital support for the insurance companies, on an as-needed basis to maintain specified surplus levels, subject to immediate reimbursement by HC2 through a five -year capital maintenance agreement. The legal entities involved in the transaction, United Teacher Associates Insurance Company (“UTA”) and Continental General Insurance Company (“CGIC”), contained substantially all of AFG’s long-term care insurance reserves ( 96% as measured by net statutory reserves as of November 30, 2015), as well as smaller blocks of annuity and life insurance business. Following the sale of these subsidiaries, AFG has only a small block of long-term care insurance ( 1,600 policies) with approximately $38 million of reserves at September 30, 2016. AFG had ceased new sales of long-term care insurance in January 2010, but continued to service and accept renewal premiums on its outstanding policies, which are guaranteed renewable. In addition to the $18 million in cash and securities received at closing and the $13 million of potential additional proceeds in the future from the release of statutory liabilities, AFG received a total of $97 million in tax benefits related to the sale. AFG received these tax benefits in the first nine months of 2016 through reduced estimated tax payments and a tax refund resulting from the carryback of the tax-basis capital loss. The receivables for these tax benefits were reflected in AFG’s financial statements at December 31, 2015 . Based on the status of ongoing negotiations at the end of the first quarter of 2015, management determined that the potential sale of the run-off long-term care insurance business met the GAAP “held for sale” criteria as of March 31, 2015. Accordingly, AFG recorded a $162 million pretax loss ( $105 million loss after tax) in the first quarter of 2015 to establish a liability equal to the excess of the net carrying value of the assets and liabilities to be disposed over the estimated net sale proceeds. At the closing date, the loss was adjusted to $166 million ( $108 million loss after tax) based on the actual proceeds received and the final carrying value of the net assets disposed. In the second quarter of 2016, AFG received additional proceeds based on the final closing balance sheet and adjusted certain accrued expense estimates associated with the sale, resulting in a $2 million pretax gain. At March 31, 2015 and at the sale date, the carrying value of the assets and liabilities disposed represented approximately 4% of both AFG’s assets and liabilities. Revenues, costs and expenses, and earnings before income taxes for the subsidiaries sold were (in millions): Three months ended September 30, 2015 Nine months ended September 30, 2015 Life, accident and health net earned premiums: Long-term care $ 19 $ 56 Life operations 3 8 Net investment income 19 56 Realized gains (losses) on securities and other income (4 ) (6 ) Total revenues 37 114 Annuity benefits 2 6 Life, accident and health benefits: Long-term care 21 67 Life operations 3 8 Annuity and supplemental insurance acquisition expenses 3 9 Other expenses 4 13 Total costs and expenses 33 103 Earnings before income taxes $ 4 $ 11

Segments of Operations

Segments of Operations	9 Months Ended
Segments of Operations	Sep. 30, 2016
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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Revenues Property and casualty insurance: Premiums earned: Specialty Property and transportation $ 493 $ 517 $ 1,197 $ 1,157 Specialty casualty 497 503 1,496 1,496 Specialty financial 145 131 416 380 Other specialty 24 22 75 71 Total premiums earned 1,159 1,173 3,184 3,104 Net investment income 93 83 265 245 Other income (a) 3 2 46 61 Total property and casualty insurance 1,255 1,258 3,495 3,410 Annuity: Net investment income 351 317 1,010 915 Other income 26 24 76 75 Total annuity 377 341 1,086 990 Run-off long-term care and life (b) 13 50 37 145 Other 58 49 173 137 Total revenues before realized gains (losses) 1,703 1,698 4,791 4,682 Realized gains (losses) on securities 2 (16 ) (32 ) 2 Realized gains (losses) on subsidiaries — 5 2 (157 ) Total revenues $ 1,705 $ 1,687 $ 4,761 $ 4,527 Earnings Before Income Taxes Property and casualty insurance: Underwriting: Specialty Property and transportation $ 44 $ 20 $ 91 $ 14 Specialty casualty 13 31 65 96 Specialty financial 19 26 64 72 Other specialty 2 7 7 13 Other lines (c) (36 ) (69 ) (101 ) (70 ) Total underwriting 42 15 126 125 Investment and other income, net (a) 79 75 269 272 Total property and casualty insurance 121 90 395 397 Annuity 107 67 236 230 Run-off long-term care and life (b) 1 6 — 14 Other (d) (53 ) (53 ) (131 ) (131 ) Total earnings before realized gains (losses) and income taxes 176 110 500 510 Realized gains (losses) on securities 2 (16 ) (32 ) 2 Realized gains (losses) on subsidiaries — 5 2 (157 ) Total earnings before income taxes $ 178 $ 99 $ 470 $ 355 (a) Includes pretax income of $32 million (before noncontrolling interest) from the sale of an apartment property in the second quarter of 2016 and $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015. (b) AFG sold substantially all of its run-off long-term care insurance business in December 2015. (c) Includes a special charge of $65 million related to the exit of certain lines of business within AFG’s Lloyd’s-based insurer, Neon, in the second quarter of 2016 and special charges of $36 million and $67 million in the third quarter of 2016 and 2015, respectively, to increase asbestos and environmental (“A&E”) reserves. (d) Includes holding company interest and expenses, including a $4 million loss on retirement of debt in the third quarter of 2015, and special charges of $5 million and $12 million in the third quarter of 2016 and 2015, respectively, to increase A&E reserves related to AFG’s former railroad and manufacturing operations.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 30, 2016
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, 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 25 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 December 2015, AFG completed the sale of substantially all of its run-off long-term care insurance business. Based on the status of ongoing negotiations at the end of the first quarter of 2015, management determined that the potential sale of the run-off long-term care insurance business met GAAP “held for sale” criteria as of March 31, 2015. Accordingly, 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 used to determine that loss 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 September 30, 2016 Assets: Available for sale (“AFS”) fixed maturities: U.S. Government and government agencies $ 133 $ 191 $ 8 $ 332 States, municipalities and political subdivisions — 6,956 91 7,047 Foreign government — 141 — 141 Residential MBS — 3,597 219 3,816 Commercial MBS — 1,815 34 1,849 Asset-backed securities (“ABS”) — 5,422 467 5,889 Corporate and other 35 15,576 709 16,320 Total AFS fixed maturities 168 33,698 1,528 35,394 Trading fixed maturities 12 336 — 348 Equity securities — AFS and trading 1,373 101 165 1,639 Assets of managed investment entities (“MIE”) 328 3,960 24 4,312 Variable annuity assets (separate accounts) () — 606 — 606 Other investments — equity index call options — 447 — 447 Other assets — derivatives — 14 — 14 Total assets accounted for at fair value $ 1,881 $ 39,162 $ 1,717 $ 42,760 Liabilities: Liabilities of managed investment entities $ 310 $ 3,734 $ 23 $ 4,067 Derivatives in annuity benefits accumulated — — 1,688 1,688 Derivatives in long-term debt — (6 ) — (6 ) Other liabilities — derivatives — 13 — 13 Total liabilities accounted for at fair value $ 310 $ 3,741 $ 1,711 $ 5,762 December 31, 2015 Assets: Available for sale fixed maturities: U.S. Government and government agencies $ 100 $ 192 $ 15 $ 307 States, municipalities and political subdivisions — 6,767 89 6,856 Foreign government — 154 — 154 Residential MBS — 3,305 224 3,529 Commercial MBS — 2,148 39 2,187 Asset-backed securities — 4,464 470 4,934 Corporate and other 50 13,634 633 14,317 Total AFS fixed maturities 150 30,664 1,470 32,284 Trading fixed maturities 13 241 — 254 Equity securities — AFS and trading 1,362 217 140 1,719 Assets of managed investment entities 309 3,712 26 4,047 Variable annuity assets (separate accounts) () — 608 — 608 Other investments — equity index call options — 241 — 241 Other assets — derivatives — 2 — 2 Total assets accounted for at fair value $ 1,834 $ 35,685 $ 1,636 $ 39,155 Liabilities: Liabilities of managed investment entities $ 289 $ 3,468 $ 24 $ 3,781 Derivatives in annuity benefits accumulated — — 1,369 1,369 Derivatives in long-term debt — (2 ) — (2 ) Other liabilities — derivatives — 8 — 8 Total liabilities accounted for at fair value $ 289 $ 3,474 $ 1,393 $ 5,156 () 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 observable trade activity. During the third quarter of 2016 , there was one common stock with a fair value of less than $1 million that transferred from Level 1 to Level 2. During the first nine months of 2016 , there were six perpetual preferred stocks with a fair value of $35 million that transferred from Level 2 to Level 1 and five perpetual preferred stocks and one common stock with aggregate fair values of $12 million and less than $1 million , respectively, that transferred from Level 1 to Level 2. During the third quarter of 2015 , there was one common stock with a fair value of less than $1 million transferred from Level 2 to Level 1. During the first nine months of 2015 , there were seven common stocks, four perpetual preferred stocks and one mandatory redeemable preferred stock with aggregate fair values of $80 million , $19 million and $10 million , respectively, transferred from Level 2 to Level 1. During the third quarter and first nine months of 2015 , seven perpetual preferred stocks with a fair value of $31 million were transferred from Level 1 to Level 2. Approximately 4% of the total assets carried at fair value on September 30, 2016 , were Level 3 assets. Approximately 76% ( $1.31 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 10% of AFG’s shareholders’ equity, any justifiable 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 $1.69 billion at September 30, 2016 . 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 0.4% – 2.9% over the risk free rate Risk margin for uncertainty in cash flows 0.58% reduction in the discount rate Surrenders 3% – 21% of indexed account value Partial surrenders 2% – 10% of indexed account value Annuitizations 0.25% – 1% of indexed account value Deaths 1.5% – 4.0% of indexed account value Budgeted option costs 1.75% – 3.5% 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 10% in the majority of future calendar years ( 3% to 21% 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 third quarter and first nine months of 2016 and 2015 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 June 30, 2016 Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at September 30, 2016 AFS fixed maturities: U.S. government agency $ 8 $ — $ — $ — $ — $ — $ — $ 8 State and municipal 91 — 1 — (1 ) — — 91 Residential MBS 231 (2 ) — — (8 ) — (2 ) 219 Commercial MBS 36 — — — (2 ) — — 34 Asset-backed securities 478 (1 ) 4 — (5 ) — (9 ) 467 Corporate and other 689 — (3 ) 37 (14 ) — — 709 Total AFS fixed maturities 1,533 (3 ) 2 37 (30 ) — (11 ) 1,528 Equity securities 166 5 5 10 (21 ) — — 165 Assets of MIE 26 (2 ) — — — — — 24 Total Level 3 assets $ 1,725 $ — $ 7 $ 47 $ (51 ) $ — $ (11 ) $ 1,717 Embedded derivatives $ (1,557 ) $ (109 ) $ — $ (53 ) $ 31 $ — $ — $ (1,688 ) Total Level 3 liabilities () $ (1,557 ) $ (109 ) $ — $ (53 ) $ 31 $ — $ — $ (1,688 ) Total realized/unrealized gains (losses) included in Balance at June 30, 2015 Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at September 30, 2015 AFS fixed maturities: U.S. government agency $ 15 $ — $ — $ — $ — $ — $ — $ 15 State and municipal 84 — 1 9 (1 ) — — 93 Residential MBS 296 (3 ) (1 ) — (8 ) 10 — 294 Commercial MBS 48 — (1 ) — (1 ) — (1 ) 45 Asset-backed securities 332 — — 110 (3 ) 20 (10 ) 449 Corporate and other 597 — 7 24 (13 ) 31 — 646 Total AFS fixed maturities 1,372 (3 ) 6 143 (26 ) 61 (11 ) 1,542 Equity securities 118 — (2 ) 7 — — — 123 Assets of MIE 29 (3 ) — — — — — 26 Total Level 3 assets $ 1,519 $ (6 ) $ 4 $ 150 $ (26 ) $ 61 $ (11 ) $ 1,691 Embedded derivatives $ (1,258 ) $ 130 $ — $ (88 ) $ 18 $ — $ — $ (1,198 ) Total Level 3 liabilities () $ (1,258 ) $ 130 $ — $ (88 ) $ 18 $ — $ — $ (1,198 ) () As discussed previously, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets. Total realized/unrealized gains (losses) included in Balance at December 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 September 30, 2016 AFS fixed maturities: U.S. government agency $ 15 $ (8 ) $ 1 $ — $ — $ — $ — $ 8 State and municipal 89 — 4 — (2 ) — — 91 Residential MBS 224 — 1 — (21 ) 33 (18 ) 219 Commercial MBS 39 (1 ) — — (4 ) — — 34 Asset-backed securities 470 (1 ) 1 15 (24 ) 41 (35 ) 467 Corporate and other 633 — 24 131 (89 ) 15 (5 ) 709 Total AFS fixed maturities 1,470 (10 ) 31 146 (140 ) 89 (58 ) 1,528 Equity securities 140 (12 ) 21 22 (21 ) 15 — 165 Assets of MIE 26 (6 ) — 4 — — — 24 Total Level 3 assets $ 1,636 $ (28 ) $ 52 $ 172 $ (161 ) $ 104 $ (58 ) $ 1,717 Embedded derivatives $ (1,369 ) $ (188 ) $ — $ (207 ) $ 76 $ — $ — $ (1,688 ) Total Level 3 liabilities (a) $ (1,369 ) $ (188 ) $ — $ (207 ) $ 76 $ — $ — $ (1,688 ) Total realized/unrealized gains (losses) included in Balance at December 31, 2014 Impact of accounting change (b) Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at September 30, 2015 AFS fixed maturities: U.S. government agency $ 15 $ — $ — $ — $ — $ — $ — $ — $ 15 State and municipal 100 — — (1 ) 34 (1 ) — (39 ) 93 Residential MBS 300 — (5 ) — — (24 ) 67 (44 ) 294 Commercial MBS 44 — — (1 ) — (1 ) 4 (1 ) 45 Asset-backed securities 226 — 1 — 230 (51 ) 53 (10 ) 449 Corporate and other 546 — (3 ) (4 ) 103 (37 ) 41 — 646 Total AFS fixed maturities 1,231 — (7 ) (6 ) 367 (114 ) 165 (94 ) 1,542 Equity securities 93 — (4 ) (1 ) 52 — — (17 ) 123 Assets of MIE 31 — (9 ) — 4 — — — 26 Total Level 3 assets $ 1,355 $ — $ (20 ) $ (7 ) $ 423 $ (114 ) $ 165 $ (111 ) $ 1,691 Liabilities of MIE $ (2,701 ) $ 2,701 $ — $ — $ — $ — $ — $ — $ — Embedded derivatives (1,160 ) — 99 — (183 ) 46 — — (1,198 ) Total Level 3 liabilities (a) $ (3,861 ) $ 2,701 $ 99 $ — $ (183 ) $ 46 $ — $ — $ (1,198 ) (a) As discussed previously, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets. (b) The impact of implementing new guidance adopted in 2015, as discussed above and in Note A — “ Accounting Policies — 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 Fair Value Value Total Level 1 Level 2 Level 3 September 30, 2016 Financial assets: Cash and cash equivalents $ 1,639 $ 1,639 $ 1,639 $ — $ — Mortgage loans 1,180 1,193 — — 1,193 Policy loans 194 194 — — 194 Total financial assets not accounted for at fair value $ 3,013 $ 3,026 $ 1,639 $ — $ 1,387 Financial liabilities: Annuity benefits accumulated () $ 29,018 $ 29,020 $ — $ — $ 29,020 Long-term debt 1,306 1,438 — 1,417 21 Total financial liabilities not accounted for at fair value $ 30,324 $ 30,458 $ — $ 1,417 $ 29,041 December 31, 2015 Financial assets: Cash and cash equivalents $ 1,220 $ 1,220 $ 1,220 $ — $ — Mortgage loans 1,067 1,074 — — 1,074 Policy loans 201 201 — — 201 Total financial assets not accounted for at fair value $ 2,488 $ 2,495 $ 1,220 $ — $ 1,275 Financial liabilities: Annuity benefits accumulated () $ 26,422 $ 25,488 $ — $ — $ 25,488 Long-term debt 1,000 1,120 — 1,105 15 Total financial liabilities not accounted for at fair value $ 27,422 $ 26,608 $ — $ 1,105 $ 25,503 (*) Excludes $204 million and $200 million of life contingent annuities in the payout phase at September 30, 2016 and December 31, 2015 , 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	9 Months Ended
Investments	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Investments	Investments Available for sale fixed maturities and equity securities at September 30, 2016 and December 31, 2015 , consisted of the following (in millions): September 30, 2016 December 31, 2015 Amortized Cost Gross Unrealized Net Unrealized Fair Value Amortized Cost Gross Unrealized Net Unrealized Fair Value Gains Losses Gains Losses Fixed maturities: U.S. Government and government agencies $ 328 $ 6 $ (2 ) $ 4 $ 332 $ 305 $ 5 $ (3 ) $ 2 $ 307 States, municipalities and political subdivisions 6,597 455 (5 ) 450 7,047 6,642 249 (35 ) 214 6,856 Foreign government 134 7 — 7 141 147 7 — 7 154 Residential MBS 3,530 300 (14 ) 286 3,816 3,236 308 (15 ) 293 3,529 Commercial MBS 1,764 85 — 85 1,849 2,111 77 (1 ) 76 2,187 Asset-backed securities 5,844 70 (25 ) 45 5,889 4,961 25 (52 ) (27 ) 4,934 Corporate and other 15,389 962 (31 ) 931 16,320 14,163 422 (268 ) 154 14,317 Total fixed maturities $ 33,586 $ 1,885 $ (77 ) $ 1,808 $ 35,394 $ 31,565 $ 1,093 $ (374 ) $ 719 $ 32,284 Equity Securities: Common stocks $ 939 $ 157 $ (27 ) $ 130 $ 1,069 $ 1,051 $ 146 $ (79 ) $ 67 $ 1,118 Perpetual preferred stocks 453 34 (3 ) 31 484 418 23 (6 ) 17 435 Total equity securities $ 1,392 $ 191 $ (30 ) $ 161 $ 1,553 $ 1,469 $ 169 $ (85 ) $ 84 $ 1,553 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 September 30, 2016 and December 31, 2015 , respectively, were $192 million and $205 million . Gross unrealized gains on such securities at September 30, 2016 and December 31, 2015 were $131 million and $134 million , respectively. Gross unrealized losses on such securities at September 30, 2016 and December 31, 2015 were $5 million and $6 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 September 30, 2016 and December 31, 2015 . 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 September 30, 2016 Fixed maturities: U.S. Government and government agencies $ — $ 51 100 % $ (2 ) $ 8 80 % States, municipalities and political subdivisions (2 ) 191 99 % (3 ) 50 94 % Residential MBS (7 ) 490 99 % (7 ) 158 96 % Commercial MBS — 23 100 % — 4 100 % Asset-backed securities (13 ) 924 99 % (12 ) 535 98 % Corporate and other (8 ) 470 98 % (23 ) 336 94 % Total fixed maturities $ (30 ) $ 2,149 99 % $ (47 ) $ 1,091 96 % Equity securities: Common stocks $ (27 ) $ 233 90 % $ — $ — — % Perpetual preferred stocks (2 ) 89 98 % (1 ) 6 86 % Total equity securities $ (29 ) $ 322 92 % $ (1 ) $ 6 86 % December 31, 2015 Fixed maturities: U.S. Government and government agencies $ (1 ) $ 112 99 % $ (2 ) $ 15 88 % States, municipalities and political subdivisions (33 ) 1,419 98 % (2 ) 50 96 % Residential MBS (7 ) 438 98 % (8 ) 201 96 % Commercial MBS — 95 100 % (1 ) 28 97 % Asset-backed securities (42 ) 2,706 98 % (10 ) 455 98 % Corporate and other (229 ) 4,661 95 % (39 ) 165 81 % Total fixed maturities $ (312 ) $ 9,431 97 % $ (62 ) $ 914 94 % Equity securities: Common stocks $ (79 ) $ 509 87 % $ — $ — — % Perpetual preferred stocks (3 ) 91 97 % (3 ) 22 88 % Total equity securities $ (82 ) $ 600 88 % $ (3 ) $ 22 88 % At September 30, 2016 , the gross unrealized losses on fixed maturities of $77 million relate to approximately 475 securities. Investment grade securities (as determined by nationally recognized rating agencies) represented approximately 49% of the gross unrealized loss and 74% 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 nine months of 2016 , AFG recorded $2 million in other-than-temporary impairment charges related to its residential MBS. In the first nine months of 2016 , AFG recorded approximately $34 million in other-than-temporary impairment charges related to corporate bonds and other fixed maturities. AFG recorded $79 million in other-than-temporary impairment charges on common stocks in the first nine months of 2016 . At September 30, 2016 , the gross unrealized losses on common stocks of $27 million relate to 32 securities, none of which has been in an unrealized loss position for more than 12 months. AFG recorded $4 million in other-than-temporary impairment charges on preferred stocks in the first nine months of 2016 . At September 30, 2016 , the gross unrealized losses on preferred stocks of $3 million relate to 14 securities. All of the preferred stocks that have been in an unrealized loss position for 12 months or more ( 1 security), 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 September 30, 2016 . 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): 2016 2015 Balance at June 30 $ 157 $ 166 Additional credit impairments on: Previously impaired securities — — Securities without prior impairments — 2 Reductions due to sales or redemptions (2 ) (2 ) Balance at September 30 $ 155 $ 166 Balance at January 1 $ 160 $ 170 Additional credit impairments on: Previously impaired securities 2 1 Securities without prior impairments — 2 Reductions due to sales or redemptions (7 ) (7 ) Balance at September 30 $ 155 $ 166 The table below sets forth the scheduled maturities of available for sale fixed maturities as of September 30, 2016 (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 $ 1,036 $ 1,053 3 % After one year through five years 5,686 6,047 17 % After five years through ten years 11,767 12,467 35 % After ten years 3,959 4,273 12 % 22,448 23,840 67 % ABS (average life of approximately 5 years) 5,844 5,889 17 % MBS (average life of approximately 4 years) 5,294 5,665 16 % Total $ 33,586 $ 35,394 100 % Certain risks are inherent in 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 September 30, 2016 or December 31, 2015 . 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 September 30, 2016 Unrealized gain on: Fixed maturities — annuity segment () $ 1,420 $ (497 ) $ 923 Fixed maturities — all other 388 (145 ) 243 Total fixed maturities 1,808 (642 ) 1,166 Equity securities 161 (58 ) 103 Total investments 1,969 (700 ) 1,269 Deferred policy acquisition costs — annuity segment (614 ) 215 (399 ) Annuity benefits accumulated (179 ) 63 (116 ) Life, accident and health reserves (1 ) — (1 ) Unearned revenue 30 (11 ) 19 Total net unrealized gain on marketable securities $ 1,205 $ (433 ) $ 772 December 31, 2015 Unrealized gain on: Fixed maturities — annuity segment () $ 523 $ (183 ) $ 340 Fixed maturities — all other 196 (72 ) 124 Total fixed maturities 719 (255 ) 464 Equity securities 84 (30 ) 54 Total investments 803 (285 ) 518 Deferred policy acquisition costs — annuity segment (233 ) 82 (151 ) Annuity benefits accumulated (64 ) 22 (42 ) Unearned revenue 11 (4 ) 7 Total net unrealized gain on marketable securities $ 517 $ (185 ) $ 332 () 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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Investment income: Fixed maturities $ 378 $ 370 $ 1,126 $ 1,082 Equity securities 20 20 59 54 Equity in earnings of partnerships and similar investments 16 18 31 26 Other 23 22 64 69 Gross investment income 437 430 1,280 1,231 Investment expenses (4 ) (5 ) (13 ) (14 ) Net investment income $ 433 $ 425 $ 1,267 $ 1,217 Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments are summarized as follows (in millions): Three months ended September 30, 2016 Three months ended September 30, 2015 Realized gains (losses) Realized gains (losses) Before Impairments Impairments Total Change in Unrealized Before Impairments Impairments Total Change in Unrealized Fixed maturities $ 5 $ (2 ) $ 3 $ 52 $ 7 $ (17 ) $ (10 ) $ (9 ) Equity securities 14 (16 ) (2 ) 89 13 (23 ) (10 ) (135 ) Mortgage loans and other investments — — — — — — — — Other () (1 ) 2 1 (5 ) (1 ) 5 4 (11 ) Total pretax 18 (16 ) 2 136 19 (35 ) (16 ) (155 ) Tax effects (7 ) 5 (2 ) (48 ) (7 ) 13 6 55 Noncontrolling interests — 1 1 (1 ) (1 ) 1 — 2 Net of tax and noncontrolling interests $ 11 $ (10 ) $ 1 $ 87 $ 11 $ (21 ) $ (10 ) $ (98 ) Nine months ended September 30, 2016 Nine months ended September 30, 2015 Realized gains (losses) Realized gains (losses) Before Impairments Impairments Total Change in Unrealized Before Impairments Impairments Total Change in Unrealized Fixed maturities $ 36 $ (37 ) $ (1 ) $ 1,089 $ 17 $ (32 ) $ (15 ) $ (414 ) Equity securities 46 (83 ) (37 ) 77 59 (48 ) 11 (150 ) Mortgage loans and other investments — — — — (2 ) — (2 ) — Other () (7 ) 13 6 (478 ) (3 ) 11 8 166 Total pretax 75 (107 ) (32 ) 688 71 (69 ) 2 (398 ) Tax effects (27 ) 38 11 (241 ) (25 ) 25 — 140 Noncontrolling interests (1 ) 3 2 (7 ) (1 ) 1 — 4 Net of tax and noncontrolling interests $ 47 $ (66 ) $ (19 ) $ 440 $ 45 $ (43 ) $ 2 $ (254 ) () 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): Nine months ended September 30, 2016 2015 Fixed maturities: Gross gains $ 44 $ 24 Gross losses (8 ) — Equity securities: Gross gains 49 59 Gross losses (3 ) —

Derivatives

Derivatives	9 Months Ended
Derivatives	Sep. 30, 2016
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): September 30, 2016 December 31, 2015 Derivative Balance Sheet Line Asset Liability Asset Liability MBS with embedded derivatives Fixed maturities $ 120 $ — $ 130 $ — Public company warrants Equity securities 3 — 4 — Fixed-indexed annuities (embedded derivative) Annuity benefits accumulated — 1,688 — 1,369 Equity index call options Other investments 447 — 241 — Reinsurance contracts (embedded derivative) Other liabilities — 13 — 7 $ 570 $ 1,701 $ 375 $ 1,376 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 overall 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 are required to be carried at fair value through earnings. AFG’s fixed-indexed annuities 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 ( $300 million at September 30, 2016 and $211 million at December 31, 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 the change in the fair value of the call option assets will generally offset the economic change in the liabilities from the index participation. 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 AFG’s Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting for the third quarter and first nine months of 2016 and 2015 (in millions): Three months ended September 30, Nine months ended September 30, Derivative Statement of Earnings Line 2016 2015 2016 2015 MBS with embedded derivatives Realized gains on securities $ (4 ) $ (4 ) $ — $ (7 ) Public company warrants Realized gains on securities 1 — — — Fixed-indexed annuities (embedded derivative) Annuity benefits (109 ) 130 (188 ) 99 Equity index call options Annuity benefits 105 (167 ) 81 (144 ) Reinsurance contracts (embedded derivative) Net investment income — 1 (6 ) 4 $ (7 ) $ (40 ) $ (113 ) $ (48 ) Derivatives Designated and Qualifying as Cash Flow Hedges As of September 30, 2016 , AFG has entered into four interest rate swaps that are designated and 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. 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 short-term LIBOR. Under the terms of the swaps, AFG receives fixed-rate interest payments in exchange for variable interest payments based on short-term LIBOR. The notional amounts of the interest rate swaps amortize down over each swap’s respective life (the swaps expire between August 2019 and June 2030) in anticipation of the expected decline in AFG’s portfolio of fixed maturity securities with floating interest rates based on short-term LIBOR. The total outstanding notional amount of AFG’s interest rate swaps increased to $677 million at September 30, 2016 compared to $614 million at December 31, 2015 , reflecting a $163 million notional amount swap entered into in the first quarter of 2016 , partially offset by the scheduled amortization discussed above. The fair value of the effective portion of the interest rate swaps in an asset position and included in other assets was $14 million at September 30, 2016 and $2 million at December 31, 2015 . The fair value of the effective portion of the interest rate swaps in a liability position and included in other liabilities was zero at September 30, 2016 and less than $1 million at December 31, 2015 . The net unrealized gain or loss on cash flow hedges is included in AOCI, net of DPAC and tax. Amounts reclassified from AOCI to net investment income were $2 million in both of the third quarters of 2016 and 2015 and $5 million and $4 million in the first nine months of 2016 and 2015 , respectively. 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% ( 8.9493% at September 30, 2016 ). 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 (asset of $6 million and $2 million at September 30, 2016 and December 31, 2015 , respectively) 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 was $1 million in the third quarter of 2016 , $3 million in the first nine months of 2016 and $1 million in both the third quarter and first nine months of 2015 .

Deferred Policy Acquisition Cos

Deferred Policy Acquisition Costs	9 Months Ended
Deferred Policy Acquisition Costs	Sep. 30, 2016
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 Subtotal Unrealized Total Total Balance at June 30, 2016 $ 234 $ 1,089 $ 116 $ 51 $ 1,256 $ (609 ) $ 647 $ 881 Additions 132 48 1 — 49 — 49 181 Amortization: Periodic amortization (134 ) (42 ) (6 ) (3 ) (51 ) — (51 ) (185 ) Included in realized gains — 1 — — 1 — 1 1 Foreign currency translation (1 ) — — — — — — (1 ) Change in unrealized — — — — — (10 ) (10 ) (10 ) Balance at September 30, 2016 $ 231 $ 1,096 $ 111 $ 48 $ 1,255 $ (619 ) $ 636 $ 867 Balance at June 30, 2015 $ 223 $ 934 $ 123 $ 68 $ 1,125 $ (383 ) $ 742 $ 965 Additions 138 74 3 — 77 — 77 215 Amortization: Periodic amortization (132 ) (36 ) (6 ) (3 ) (45 ) — (45 ) (177 ) Included in realized gains — 3 — — 3 — 3 3 Foreign currency translation (2 ) — — — — — — (2 ) Change in unrealized — — — — — (11 ) (11 ) (11 ) Balance at September 30, 2015 $ 227 $ 975 $ 120 $ 65 $ 1,160 $ (394 ) $ 766 $ 993 Balance at December 31, 2015 $ 226 $ 1,018 $ 119 $ 55 $ 1,192 $ (234 ) $ 958 $ 1,184 Additions 403 172 8 — 180 — 180 583 Amortization: Periodic amortization (396 ) (99 ) (17 ) (7 ) (123 ) — (123 ) (519 ) Included in realized gains — 5 1 — 6 — 6 6 Foreign currency translation (2 ) — — — — — — (2 ) Change in unrealized — — — — — (385 ) (385 ) (385 ) Balance at September 30, 2016 $ 231 $ 1,096 $ 111 $ 48 $ 1,255 $ (619 ) $ 636 $ 867 Balance at December 31, 2014 $ 221 $ 925 $ 132 $ 74 $ 1,131 $ (531 ) $ 600 $ 821 Additions 396 164 7 — 171 — 171 567 Amortization: Periodic amortization (388 ) (120 ) (20 ) (9 ) (149 ) — (149 ) (537 ) Included in realized gains — 6 1 — 7 — 7 7 Foreign currency translation (2 ) — — — — — — (2 ) Change in unrealized — — — — — 137 137 137 Balance at September 30, 2015 $ 227 $ 975 $ 120 $ 65 $ 1,160 $ (394 ) $ 766 $ 993 The present value of future profits (“PVFP”) amounts in the table above are net of $132 million and $125 million of accumulated amortization at September 30, 2016 and December 31, 2015 , respectively.

Managed Investment Entities

Managed Investment Entities	9 Months Ended
Managed Investment Entities	Sep. 30, 2016
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 60.7% of the most subordinate debt tranche of fourteen 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 2016, 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 $245 million (including $126 million invested in the most subordinate tranches) at September 30, 2016 , and $266 million at December 31, 2015 . At September 30, 2016, AFG had $40 million of additional subordinate CLO-related exposure to a temporary warehousing facility that was established in connection with the formation of a new CLO. The warehousing facility terminated with no loss to AFG when the new CLO was issued on November 3, 2016. In May 2016, AFG formed a new CLO, which issued $406 million face amount of liabilities (including $36 million face amount purchased by subsidiaries of AFG). During the first nine months of 2016 , AFG subsidiaries also purchased $19 million face amount of senior debt and subordinate tranches of existing CLOs for $15 million . 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 nine months of 2016 and 2015 , AFG subsidiaries received $69 million and $1 million , respectively, in sale and redemption proceeds 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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Gains (losses) on change in fair value of assets/liabilities (a): Assets $ 60 $ (53 ) $ 107 $ (27 ) Liabilities (49 ) 42 (98 ) 11 Management fees paid to AFG 4 4 12 11 CLO earnings (losses) attributable to AFG shareholders (b) 17 (3 ) 29 5 (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 $93 million and $214 million at September 30, 2016 and December 31, 2015 . The aggregate unpaid principal balance of the CLOs’ debt exceeded its carrying value by $159 million and $205 million at those dates. The CLO assets include $1 million in loans at both September 30, 2016 and December 31, 2015 , for which the CLOs are not accruing interest because the loans are in default (aggregate unpaid principal balance of $10 million at both those dates).

Goodwill and Other Intangibles

Goodwill and Other Intangibles	9 Months Ended
Goodwill and Other Intangibles	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangibles	Goodwill and Other Intangibles There were no changes in the goodwill balance of $199 million during the first nine months of 2016 . Included in other assets in AFG’s Balance Sheet is $36 million at September 30, 2016 and $41 million at December 31, 2015 in amortizable intangible assets related to property and casualty insurance acquisitions. These amounts are net of accumulated amortization of $23 million and $18 million , respectively. Amortization of intangibles was $2 million in both the third quarters of 2016 and 2015 and $6 million in both the first nine months of 2016 and 2015 .

Long-Term Debt

Long-Term Debt	9 Months Ended
Long-Term Debt	Sep. 30, 2016
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt consisted of the following (in millions): September 30, 2016 December 31, 2015 Principal Discount and Issue Costs Carrying Value Principal Discount and Issue Costs Carrying Value Direct Senior Obligations of AFG: 9-7/8% Senior Notes due June 2019 $ 350 $ (1 ) $ 349 $ 350 $ (1 ) $ 349 3-1/2% Senior Notes due August 2026 300 (4 ) 296 — — — 6-3/8% Senior Notes due June 2042 230 (7 ) 223 230 (7 ) 223 5-3/4% Senior Notes due August 2042 125 (4 ) 121 125 (4 ) 121 Other 3 — 3 3 — 3 1,008 (16 ) 992 708 (12 ) 696 Direct Subordinated Obligations of AFG: 6-1/4% Subordinated Debentures due September 2054 150 (5 ) 145 150 (5 ) 145 6% Subordinated Debentures due November 2055 150 (5 ) 145 150 (5 ) 145 300 (10 ) 290 300 (10 ) 290 Subsidiaries: National Interstate bank credit facility 18 — 18 12 — 12 $ 1,326 $ (26 ) $ 1,300 $ 1,020 $ (22 ) $ 998 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% ( 8.9493% at September 30, 2016 and 8.6110% at December 31, 2015 ). The fair value of the interest rate swap (asset of $6 million and $2 million at September 30, 2016 and December 31, 2015 , respectively) 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 2016 , the subsequent five years and thereafter were as follows: 2016 — $18 million ; 2017 — none ; 2018 — none ; 2019 — $350 million ; 2020 — none ; 2021 — none and thereafter — $958 million . As shown below (principal amount, in millions), the majority of AFG’s long-term debt is unsecured obligations of the holding company and its subsidiaries: September 30, December 31, Senior unsecured obligations $ 1,026 $ 720 Subordinated unsecured obligations 300 300 $ 1,326 $ 1,020 In August 2016, AFG issued $300 million in 3-1/2% Senior Notes due in 2026 at a price of 99.608% . The net proceeds of the offering will be used to fund a portion of the proposed acquisition of all shares of National Interstate Corporation common stock that are not currently owned by AFG (discussed in Note B — “ Acquisition and Sale of Businesses ” ). In June 2016, AFG replaced its existing credit facility with a new five -year, $500 million revolving credit facility which expires in June 2021. 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 September 30, 2016 or AFG’s previous credit facility at December 31, 2015 . National Interstate can borrow up to $100 million under its unsecured credit agreement, which expires in November 2017. At September 30, 2016 , there was $18 million outstanding under this agreement, including $6 million borrowed in September 2016. If the National Interstate merger (discussed in Note B — “ Acquisition and Sale of Businesses ” ) is consummated following the November 10, 2016 NATL shareholders’ meeting, the entire amount outstanding under this agreement will be repaid and the credit agreement will be terminated. This expected repayment is reflected in the scheduled principal payments information presented above.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
Shareholders' Equity	Sep. 30, 2016
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 September 30, 2016 Net unrealized gains (losses) on securities: Unrealized holding gains (losses) on securities arising during the period $ 138 $ (49 ) $ 89 $ (1 ) $ 88 Reclassification adjustment for realized (gains) losses included in net earnings (a) (2 ) 1 (1 ) — (1 ) Total net unrealized gains on securities (b) $ 685 136 (48 ) 88 (1 ) 87 $ 772 Net unrealized gains (losses) on cash flow hedges 5 (1 ) 1 — — — 5 Foreign currency translation adjustments (15 ) (2 ) (1 ) (3 ) — (3 ) (18 ) Pension and other postretirement plans adjustments (6 ) — — — — — (6 ) Total $ 669 $ 133 $ (48 ) $ 85 $ (1 ) $ 84 $ 753 Quarter ended September 30, 2015 Net unrealized gains (losses) on securities: Unrealized holding losses on securities arising during the period $ (171 ) $ 61 $ (110 ) $ 3 $ (107 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) 16 (6 ) 10 (1 ) 9 Total net unrealized gains (losses) on securities $ 587 (155 ) 55 (100 ) 2 (98 ) $ 489 Net unrealized gains on cash flow hedges — 3 (1 ) 2 — 2 2 Foreign currency translation adjustments (16 ) (5 ) (2 ) (7 ) — (7 ) (23 ) Pension and other postretirement plans adjustments (8 ) 1 — 1 — 1 (7 ) Total $ 563 $ (156 ) $ 52 $ (104 ) $ 2 $ (102 ) $ 461 Other Comprehensive Income AOCI Beginning Balance Pretax Tax Net of tax Attributable to noncontrolling interests Attributable to shareholders AOCI Ending Balance Nine months ended September 30, 2016 Net unrealized gains (losses) on securities: Unrealized holding gains (losses) on securities arising during the period $ 656 $ (229 ) $ 427 $ (6 ) $ 421 Reclassification adjustment for realized (gains) losses included in net earnings (a) 32 (12 ) 20 (1 ) 19 Total net unrealized gains on securities (b) $ 332 688 (241 ) 447 (7 ) 440 $ 772 Net unrealized gains on cash flow hedges 1 6 (2 ) 4 — 4 5 Foreign currency translation adjustments (22 ) 2 2 4 — 4 (18 ) Pension and other postretirement plans adjustments (7 ) 1 — 1 — 1 (6 ) Total $ 304 $ 697 $ (241 ) $ 456 $ (7 ) $ 449 $ 753 Nine months ended September 30, 2015 Net unrealized gains (losses) on securities: Unrealized holding losses on securities arising during the period $ (394 ) $ 139 $ (255 ) $ 5 $ (250 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) (4 ) 1 (3 ) (1 ) (4 ) Total net unrealized gains (losses) on securities $ 743 (398 ) 140 (258 ) 4 (254 ) $ 489 Net unrealized gains on cash flow hedges — 3 (1 ) 2 — 2 2 Foreign currency translation adjustments (8 ) (11 ) (4 ) (15 ) — (15 ) (23 ) Pension and other postretirement plans adjustments (8 ) 1 — 1 — 1 (7 ) Total $ 727 $ (405 ) $ 135 $ (270 ) $ 4 $ (266 ) $ 461 (a) The reclassification adjustment out of net unrealized gains on securities affected the following lines in AFG’s Statement of Earnings: OCI component Affected line in the 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 $51 million at September 30, 2016 compared to $48 million at June 30, 2016 and $51 million at December 31, 2015 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 nine months of 2016 , AFG issued 318,940 shares of restricted Common Stock (average fair value of $67.00 per share) under the Stock Incentive Plan. In addition, AFG issued 40,336 shares of Common Stock (fair value of $71.05 per share) in the first quarter of 2016 under the Equity Bonus Plan. AFG did not grant any stock options in the first nine months of 2016 . Total compensation expense related to stock incentive plans of AFG and its subsidiaries was $7 million and $5 million in the third quarters of 2016 and 2015 and $21 million and $18 million in the first nine months of 2016 and 2015 , respectively.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2016
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 AFG’s Statement of Earnings (dollars in millions): Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Amount % of EBT Amount % of EBT Amount % of EBT Amount % of EBT Earnings before income taxes (“EBT”) $ 178 $ 99 $ 470 $ 355 Income taxes at statutory rate $ 63 35 % $ 34 35 % $ 165 35 % $ 124 35 % Effect of: Tax exempt interest (5 ) (3 %) (6 ) (6 %) (18 ) (4 %) (20 ) (6 %) Change in valuation allowance 7 4 % 8 8 % 40 9 % 8 2 % Subsidiaries not in AFG’s tax return 2 1 % — — % 4 1 % 2 1 % Other (2 ) — % (3 ) (4 %) (1 ) (1 %) 1 — % Provision for income taxes as shown in the statement of earnings $ 65 37 % $ 33 33 % $ 190 40 % $ 115 32 % Excluding the $65 million charge related to the exit of certain lines of business within Neon, AFG’s Lloyd’s-based insurer, AFG’s effective tax rate for the nine months ended September 30, 2016 , was 36% . AFG maintains a full valuation allowance against the deferred tax benefits associated with losses related to Neon. During the first nine months of 2016 , there were no material changes to AFG’s liability for uncertain tax positions.

Contingencies

Contingencies	9 Months Ended
Contingencies	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies There have been no significant changes to the matters discussed and referred to in Note M — “Contingencies” of AFG’s 2015 Form 10-K, which covers property and casualty insurance reserves for claims related to environmental exposures, asbestos and other mass tort claims and environmental and occupational injury and disease claims of former subsidiary railroad and manufacturing operations, as well as contingencies related to the sale of substantially all of AFG’s run-off long-term care insurance business.

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
Accounting Policies (Policies)	Sep. 30, 2016
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 September 30, 2016 , 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. AFG did not have any significant nonrecurring fair value measurements in the first nine months of 2016 .
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. In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, which, among other things, will require all equity securities currently classified as “available for sale” to be reported at fair value, with holding gains and losses recognized in net income, instead of AOCI. AFG will be required to adopt this guidance effective January 1, 2018. 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 statement of earnings as the cash flows from the hedged item. AFG uses interest rate swaps that are designated and 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. An AFG 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 ” ). 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) through its investment in the CLO debt tranches, it has exposure to CLO losses (limited to the amount AFG invested) and the right to receive CLO benefits that could potentially be significant to the CLOs. On January 1, 2016, AFG adopted ASU 2015-02, which amended certain consolidation accounting guidance, including the VIE guidance that applies to collateralized financing entities such as CLOs. The new guidance affects how fee arrangements with CLO asset managers impact the determination of the primary beneficiary of those entities. Due to the significance of AFG’s investments in the CLOs that it manages, the new guidance did not impact the consolidation of AFG’s currently outstanding CLOs. The new guidance also impacted the consolidation analysis that applies to limited partnerships and similar entities, but did not result in a change to 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 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 ASU 2014-13, 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. This difference was recorded as “appropriated retained earnings — managed investment entities” in AFG’s Balance Sheet. In accordance with the guidance adopted in 2015, 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.
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 (included in other income) 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.
Debt Issuance Costs	Debt Issuance Costs Debt issuance costs related to AFG’s outstanding debt are amortized over the life of the related debt using the effective interest method. Effective January 1, 2016, AFG adopted (on a retrospective basis) ASU 2015-03, which requires debt issuance costs to be presented in the balance sheet as a direct reduction in the carrying value of long-term debt (consistent with the treatment of debt discounts) with the periodic amortization of such costs included in interest expense. Debt issuance costs related to AFG’s revolving credit facilities will continue to be included in other assets in AFG’s Balance Sheet. Prior to AFG’s adoption of ASU 2015-03, AFG reported unamortized debt issuance costs as a deferred charge asset (included in other assets) in AFG’s Balance Sheet and the periodic amortization was included in other expenses in AFG’s Statement of Earnings. The updated guidance did not affect the overall recognition and measurement guidance for debt issuance costs. Accordingly, the guidance did not have an overall impact on AFG’s Shareholders’ Equity or results of operations.
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.
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: third quarter of 2016 and 2015 — 1.6 million and 1.8 million ; first nine months of 2016 and 2015 — 1.6 million and 1.8 million , respectively. AFG’s weighted average diluted shares outstanding excludes the following anti-dilutive potential common shares related to stock compensation plans: third quarter of 2016 and 2015 — 0.2 million and 0.9 million ; first nine months of 2016 and 2015 — 0.6 million and 1.2 million , respectively. Adjustments to net earnings attributable to shareholders in the calculation of diluted earnings per share were nominal in the 2016 and 2015 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.

Acquisition and Sale of Busin22

Acquisition and Sale of Businesses (Tables)	9 Months Ended
Acquisition and Sale of Businesses (Tables)	Sep. 30, 2016
Disclosure Text Block [Abstract]
Summarized financial information	Revenues, costs and expenses, and earnings before income taxes for the subsidiaries sold were (in millions): Three months ended September 30, 2015 Nine months ended September 30, 2015 Life, accident and health net earned premiums: Long-term care $ 19 $ 56 Life operations 3 8 Net investment income 19 56 Realized gains (losses) on securities and other income (4 ) (6 ) Total revenues 37 114 Annuity benefits 2 6 Life, accident and health benefits: Long-term care 21 67 Life operations 3 8 Annuity and supplemental insurance acquisition expenses 3 9 Other expenses 4 13 Total costs and expenses 33 103 Earnings before income taxes $ 4 $ 11

Segments of Operations (Tables)

Segments of Operations (Tables)	9 Months Ended
Segments of Operations (Tables)	Sep. 30, 2016
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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Revenues Property and casualty insurance: Premiums earned: Specialty Property and transportation $ 493 $ 517 $ 1,197 $ 1,157 Specialty casualty 497 503 1,496 1,496 Specialty financial 145 131 416 380 Other specialty 24 22 75 71 Total premiums earned 1,159 1,173 3,184 3,104 Net investment income 93 83 265 245 Other income (a) 3 2 46 61 Total property and casualty insurance 1,255 1,258 3,495 3,410 Annuity: Net investment income 351 317 1,010 915 Other income 26 24 76 75 Total annuity 377 341 1,086 990 Run-off long-term care and life (b) 13 50 37 145 Other 58 49 173 137 Total revenues before realized gains (losses) 1,703 1,698 4,791 4,682 Realized gains (losses) on securities 2 (16 ) (32 ) 2 Realized gains (losses) on subsidiaries — 5 2 (157 ) Total revenues $ 1,705 $ 1,687 $ 4,761 $ 4,527 Earnings Before Income Taxes Property and casualty insurance: Underwriting: Specialty Property and transportation $ 44 $ 20 $ 91 $ 14 Specialty casualty 13 31 65 96 Specialty financial 19 26 64 72 Other specialty 2 7 7 13 Other lines (c) (36 ) (69 ) (101 ) (70 ) Total underwriting 42 15 126 125 Investment and other income, net (a) 79 75 269 272 Total property and casualty insurance 121 90 395 397 Annuity 107 67 236 230 Run-off long-term care and life (b) 1 6 — 14 Other (d) (53 ) (53 ) (131 ) (131 ) Total earnings before realized gains (losses) and income taxes 176 110 500 510 Realized gains (losses) on securities 2 (16 ) (32 ) 2 Realized gains (losses) on subsidiaries — 5 2 (157 ) Total earnings before income taxes $ 178 $ 99 $ 470 $ 355 (a) Includes pretax income of $32 million (before noncontrolling interest) from the sale of an apartment property in the second quarter of 2016 and $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015. (b) AFG sold substantially all of its run-off long-term care insurance business in December 2015. (c) Includes a special charge of $65 million related to the exit of certain lines of business within AFG’s Lloyd’s-based insurer, Neon, in the second quarter of 2016 and special charges of $36 million and $67 million in the third quarter of 2016 and 2015, respectively, to increase asbestos and environmental (“A&E”) reserves. (d) Includes holding company interest and expenses, including a $4 million loss on retirement of debt in the third quarter of 2015, and special charges of $5 million and $12 million in the third quarter of 2016 and 2015, respectively, to increase A&E reserves related to AFG’s former railroad and manufacturing operations.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Sep. 30, 2016
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 September 30, 2016 Assets: Available for sale (“AFS”) fixed maturities: U.S. Government and government agencies $ 133 $ 191 $ 8 $ 332 States, municipalities and political subdivisions — 6,956 91 7,047 Foreign government — 141 — 141 Residential MBS — 3,597 219 3,816 Commercial MBS — 1,815 34 1,849 Asset-backed securities (“ABS”) — 5,422 467 5,889 Corporate and other 35 15,576 709 16,320 Total AFS fixed maturities 168 33,698 1,528 35,394 Trading fixed maturities 12 336 — 348 Equity securities — AFS and trading 1,373 101 165 1,639 Assets of managed investment entities (“MIE”) 328 3,960 24 4,312 Variable annuity assets (separate accounts) () — 606 — 606 Other investments — equity index call options — 447 — 447 Other assets — derivatives — 14 — 14 Total assets accounted for at fair value $ 1,881 $ 39,162 $ 1,717 $ 42,760 Liabilities: Liabilities of managed investment entities $ 310 $ 3,734 $ 23 $ 4,067 Derivatives in annuity benefits accumulated — — 1,688 1,688 Derivatives in long-term debt — (6 ) — (6 ) Other liabilities — derivatives — 13 — 13 Total liabilities accounted for at fair value $ 310 $ 3,741 $ 1,711 $ 5,762 December 31, 2015 Assets: Available for sale fixed maturities: U.S. Government and government agencies $ 100 $ 192 $ 15 $ 307 States, municipalities and political subdivisions — 6,767 89 6,856 Foreign government — 154 — 154 Residential MBS — 3,305 224 3,529 Commercial MBS — 2,148 39 2,187 Asset-backed securities — 4,464 470 4,934 Corporate and other 50 13,634 633 14,317 Total AFS fixed maturities 150 30,664 1,470 32,284 Trading fixed maturities 13 241 — 254 Equity securities — AFS and trading 1,362 217 140 1,719 Assets of managed investment entities 309 3,712 26 4,047 Variable annuity assets (separate accounts) () — 608 — 608 Other investments — equity index call options — 241 — 241 Other assets — derivatives — 2 — 2 Total assets accounted for at fair value $ 1,834 $ 35,685 $ 1,636 $ 39,155 Liabilities: Liabilities of managed investment entities $ 289 $ 3,468 $ 24 $ 3,781 Derivatives in annuity benefits accumulated — — 1,369 1,369 Derivatives in long-term debt — (2 ) — (2 ) Other liabilities — derivatives — 8 — 8 Total liabilities accounted for at fair value $ 289 $ 3,474 $ 1,393 $ 5,156 (*) 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 0.4% – 2.9% over the risk free rate Risk margin for uncertainty in cash flows 0.58% reduction in the discount rate Surrenders 3% – 21% of indexed account value Partial surrenders 2% – 10% of indexed account value Annuitizations 0.25% – 1% of indexed account value Deaths 1.5% – 4.0% of indexed account value Budgeted option costs 1.75% – 3.5% 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 third quarter and first nine months of 2016 and 2015 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 June 30, 2016 Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at September 30, 2016 AFS fixed maturities: U.S. government agency $ 8 $ — $ — $ — $ — $ — $ — $ 8 State and municipal 91 — 1 — (1 ) — — 91 Residential MBS 231 (2 ) — — (8 ) — (2 ) 219 Commercial MBS 36 — — — (2 ) — — 34 Asset-backed securities 478 (1 ) 4 — (5 ) — (9 ) 467 Corporate and other 689 — (3 ) 37 (14 ) — — 709 Total AFS fixed maturities 1,533 (3 ) 2 37 (30 ) — (11 ) 1,528 Equity securities 166 5 5 10 (21 ) — — 165 Assets of MIE 26 (2 ) — — — — — 24 Total Level 3 assets $ 1,725 $ — $ 7 $ 47 $ (51 ) $ — $ (11 ) $ 1,717 Embedded derivatives $ (1,557 ) $ (109 ) $ — $ (53 ) $ 31 $ — $ — $ (1,688 ) Total Level 3 liabilities () $ (1,557 ) $ (109 ) $ — $ (53 ) $ 31 $ — $ — $ (1,688 ) Total realized/unrealized gains (losses) included in Balance at June 30, 2015 Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at September 30, 2015 AFS fixed maturities: U.S. government agency $ 15 $ — $ — $ — $ — $ — $ — $ 15 State and municipal 84 — 1 9 (1 ) — — 93 Residential MBS 296 (3 ) (1 ) — (8 ) 10 — 294 Commercial MBS 48 — (1 ) — (1 ) — (1 ) 45 Asset-backed securities 332 — — 110 (3 ) 20 (10 ) 449 Corporate and other 597 — 7 24 (13 ) 31 — 646 Total AFS fixed maturities 1,372 (3 ) 6 143 (26 ) 61 (11 ) 1,542 Equity securities 118 — (2 ) 7 — — — 123 Assets of MIE 29 (3 ) — — — — — 26 Total Level 3 assets $ 1,519 $ (6 ) $ 4 $ 150 $ (26 ) $ 61 $ (11 ) $ 1,691 Embedded derivatives $ (1,258 ) $ 130 $ — $ (88 ) $ 18 $ — $ — $ (1,198 ) Total Level 3 liabilities () $ (1,258 ) $ 130 $ — $ (88 ) $ 18 $ — $ — $ (1,198 ) (*) As discussed previously, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets. Total realized/unrealized gains (losses) included in Balance at December 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 September 30, 2016 AFS fixed maturities: U.S. government agency $ 15 $ (8 ) $ 1 $ — $ — $ — $ — $ 8 State and municipal 89 — 4 — (2 ) — — 91 Residential MBS 224 — 1 — (21 ) 33 (18 ) 219 Commercial MBS 39 (1 ) — — (4 ) — — 34 Asset-backed securities 470 (1 ) 1 15 (24 ) 41 (35 ) 467 Corporate and other 633 — 24 131 (89 ) 15 (5 ) 709 Total AFS fixed maturities 1,470 (10 ) 31 146 (140 ) 89 (58 ) 1,528 Equity securities 140 (12 ) 21 22 (21 ) 15 — 165 Assets of MIE 26 (6 ) — 4 — — — 24 Total Level 3 assets $ 1,636 $ (28 ) $ 52 $ 172 $ (161 ) $ 104 $ (58 ) $ 1,717 Embedded derivatives $ (1,369 ) $ (188 ) $ — $ (207 ) $ 76 $ — $ — $ (1,688 ) Total Level 3 liabilities (a) $ (1,369 ) $ (188 ) $ — $ (207 ) $ 76 $ — $ — $ (1,688 ) Total realized/unrealized gains (losses) included in Balance at December 31, 2014 Impact of accounting change (b) Net income Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at September 30, 2015 AFS fixed maturities: U.S. government agency $ 15 $ — $ — $ — $ — $ — $ — $ — $ 15 State and municipal 100 — — (1 ) 34 (1 ) — (39 ) 93 Residential MBS 300 — (5 ) — — (24 ) 67 (44 ) 294 Commercial MBS 44 — — (1 ) — (1 ) 4 (1 ) 45 Asset-backed securities 226 — 1 — 230 (51 ) 53 (10 ) 449 Corporate and other 546 — (3 ) (4 ) 103 (37 ) 41 — 646 Total AFS fixed maturities 1,231 — (7 ) (6 ) 367 (114 ) 165 (94 ) 1,542 Equity securities 93 — (4 ) (1 ) 52 — — (17 ) 123 Assets of MIE 31 — (9 ) — 4 — — — 26 Total Level 3 assets $ 1,355 $ — $ (20 ) $ (7 ) $ 423 $ (114 ) $ 165 $ (111 ) $ 1,691 Liabilities of MIE $ (2,701 ) $ 2,701 $ — $ — $ — $ — $ — $ — $ — Embedded derivatives (1,160 ) — 99 — (183 ) 46 — — (1,198 ) Total Level 3 liabilities (a) $ (3,861 ) $ 2,701 $ 99 $ — $ (183 ) $ 46 $ — $ — $ (1,198 ) (a) As discussed previously, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets. (b) The impact of implementing new guidance adopted in 2015, as discussed above and in Note A — “ Accounting Policies — 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 Fair Value Value Total Level 1 Level 2 Level 3 September 30, 2016 Financial assets: Cash and cash equivalents $ 1,639 $ 1,639 $ 1,639 $ — $ — Mortgage loans 1,180 1,193 — — 1,193 Policy loans 194 194 — — 194 Total financial assets not accounted for at fair value $ 3,013 $ 3,026 $ 1,639 $ — $ 1,387 Financial liabilities: Annuity benefits accumulated () $ 29,018 $ 29,020 $ — $ — $ 29,020 Long-term debt 1,306 1,438 — 1,417 21 Total financial liabilities not accounted for at fair value $ 30,324 $ 30,458 $ — $ 1,417 $ 29,041 December 31, 2015 Financial assets: Cash and cash equivalents $ 1,220 $ 1,220 $ 1,220 $ — $ — Mortgage loans 1,067 1,074 — — 1,074 Policy loans 201 201 — — 201 Total financial assets not accounted for at fair value $ 2,488 $ 2,495 $ 1,220 $ — $ 1,275 Financial liabilities: Annuity benefits accumulated () $ 26,422 $ 25,488 $ — $ — $ 25,488 Long-term debt 1,000 1,120 — 1,105 15 Total financial liabilities not accounted for at fair value $ 27,422 $ 26,608 $ — $ 1,105 $ 25,503 (*) Excludes $204 million and $200 million of life contingent annuities in the payout phase at September 30, 2016 and December 31, 2015 , respectively.

Investments (Tables)

Investments (Tables)	9 Months Ended
Investments (Tables)	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Available for sale fixed maturities and equity securities	Available for sale fixed maturities and equity securities at September 30, 2016 and December 31, 2015 , consisted of the following (in millions): September 30, 2016 December 31, 2015 Amortized Cost Gross Unrealized Net Unrealized Fair Value Amortized Cost Gross Unrealized Net Unrealized Fair Value Gains Losses Gains Losses Fixed maturities: U.S. Government and government agencies $ 328 $ 6 $ (2 ) $ 4 $ 332 $ 305 $ 5 $ (3 ) $ 2 $ 307 States, municipalities and political subdivisions 6,597 455 (5 ) 450 7,047 6,642 249 (35 ) 214 6,856 Foreign government 134 7 — 7 141 147 7 — 7 154 Residential MBS 3,530 300 (14 ) 286 3,816 3,236 308 (15 ) 293 3,529 Commercial MBS 1,764 85 — 85 1,849 2,111 77 (1 ) 76 2,187 Asset-backed securities 5,844 70 (25 ) 45 5,889 4,961 25 (52 ) (27 ) 4,934 Corporate and other 15,389 962 (31 ) 931 16,320 14,163 422 (268 ) 154 14,317 Total fixed maturities $ 33,586 $ 1,885 $ (77 ) $ 1,808 $ 35,394 $ 31,565 $ 1,093 $ (374 ) $ 719 $ 32,284 Equity Securities: Common stocks $ 939 $ 157 $ (27 ) $ 130 $ 1,069 $ 1,051 $ 146 $ (79 ) $ 67 $ 1,118 Perpetual preferred stocks 453 34 (3 ) 31 484 418 23 (6 ) 17 435 Total equity securities $ 1,392 $ 191 $ (30 ) $ 161 $ 1,553 $ 1,469 $ 169 $ (85 ) $ 84 $ 1,553
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 September 30, 2016 and December 31, 2015 . 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 September 30, 2016 Fixed maturities: U.S. Government and government agencies $ — $ 51 100 % $ (2 ) $ 8 80 % States, municipalities and political subdivisions (2 ) 191 99 % (3 ) 50 94 % Residential MBS (7 ) 490 99 % (7 ) 158 96 % Commercial MBS — 23 100 % — 4 100 % Asset-backed securities (13 ) 924 99 % (12 ) 535 98 % Corporate and other (8 ) 470 98 % (23 ) 336 94 % Total fixed maturities $ (30 ) $ 2,149 99 % $ (47 ) $ 1,091 96 % Equity securities: Common stocks $ (27 ) $ 233 90 % $ — $ — — % Perpetual preferred stocks (2 ) 89 98 % (1 ) 6 86 % Total equity securities $ (29 ) $ 322 92 % $ (1 ) $ 6 86 % December 31, 2015 Fixed maturities: U.S. Government and government agencies $ (1 ) $ 112 99 % $ (2 ) $ 15 88 % States, municipalities and political subdivisions (33 ) 1,419 98 % (2 ) 50 96 % Residential MBS (7 ) 438 98 % (8 ) 201 96 % Commercial MBS — 95 100 % (1 ) 28 97 % Asset-backed securities (42 ) 2,706 98 % (10 ) 455 98 % Corporate and other (229 ) 4,661 95 % (39 ) 165 81 % Total fixed maturities $ (312 ) $ 9,431 97 % $ (62 ) $ 914 94 % Equity securities: Common stocks $ (79 ) $ 509 87 % $ — $ — — % Perpetual preferred stocks (3 ) 91 97 % (3 ) 22 88 % Total equity securities $ (82 ) $ 600 88 % $ (3 ) $ 22 88 %
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): 2016 2015 Balance at June 30 $ 157 $ 166 Additional credit impairments on: Previously impaired securities — — Securities without prior impairments — 2 Reductions due to sales or redemptions (2 ) (2 ) Balance at September 30 $ 155 $ 166 Balance at January 1 $ 160 $ 170 Additional credit impairments on: Previously impaired securities 2 1 Securities without prior impairments — 2 Reductions due to sales or redemptions (7 ) (7 ) Balance at September 30 $ 155 $ 166
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 September 30, 2016 (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 $ 1,036 $ 1,053 3 % After one year through five years 5,686 6,047 17 % After five years through ten years 11,767 12,467 35 % After ten years 3,959 4,273 12 % 22,448 23,840 67 % ABS (average life of approximately 5 years) 5,844 5,889 17 % MBS (average life of approximately 4 years) 5,294 5,665 16 % Total $ 33,586 $ 35,394 100 %
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 September 30, 2016 Unrealized gain on: Fixed maturities — annuity segment () $ 1,420 $ (497 ) $ 923 Fixed maturities — all other 388 (145 ) 243 Total fixed maturities 1,808 (642 ) 1,166 Equity securities 161 (58 ) 103 Total investments 1,969 (700 ) 1,269 Deferred policy acquisition costs — annuity segment (614 ) 215 (399 ) Annuity benefits accumulated (179 ) 63 (116 ) Life, accident and health reserves (1 ) — (1 ) Unearned revenue 30 (11 ) 19 Total net unrealized gain on marketable securities $ 1,205 $ (433 ) $ 772 December 31, 2015 Unrealized gain on: Fixed maturities — annuity segment () $ 523 $ (183 ) $ 340 Fixed maturities — all other 196 (72 ) 124 Total fixed maturities 719 (255 ) 464 Equity securities 84 (30 ) 54 Total investments 803 (285 ) 518 Deferred policy acquisition costs — annuity segment (233 ) 82 (151 ) Annuity benefits accumulated (64 ) 22 (42 ) Unearned revenue 11 (4 ) 7 Total net unrealized gain on marketable securities $ 517 $ (185 ) $ 332 (*) 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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Investment income: Fixed maturities $ 378 $ 370 $ 1,126 $ 1,082 Equity securities 20 20 59 54 Equity in earnings of partnerships and similar investments 16 18 31 26 Other 23 22 64 69 Gross investment income 437 430 1,280 1,231 Investment expenses (4 ) (5 ) (13 ) (14 ) Net investment income $ 433 $ 425 $ 1,267 $ 1,217
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): Three months ended September 30, 2016 Three months ended September 30, 2015 Realized gains (losses) Realized gains (losses) Before Impairments Impairments Total Change in Unrealized Before Impairments Impairments Total Change in Unrealized Fixed maturities $ 5 $ (2 ) $ 3 $ 52 $ 7 $ (17 ) $ (10 ) $ (9 ) Equity securities 14 (16 ) (2 ) 89 13 (23 ) (10 ) (135 ) Mortgage loans and other investments — — — — — — — — Other () (1 ) 2 1 (5 ) (1 ) 5 4 (11 ) Total pretax 18 (16 ) 2 136 19 (35 ) (16 ) (155 ) Tax effects (7 ) 5 (2 ) (48 ) (7 ) 13 6 55 Noncontrolling interests — 1 1 (1 ) (1 ) 1 — 2 Net of tax and noncontrolling interests $ 11 $ (10 ) $ 1 $ 87 $ 11 $ (21 ) $ (10 ) $ (98 ) Nine months ended September 30, 2016 Nine months ended September 30, 2015 Realized gains (losses) Realized gains (losses) Before Impairments Impairments Total Change in Unrealized Before Impairments Impairments Total Change in Unrealized Fixed maturities $ 36 $ (37 ) $ (1 ) $ 1,089 $ 17 $ (32 ) $ (15 ) $ (414 ) Equity securities 46 (83 ) (37 ) 77 59 (48 ) 11 (150 ) Mortgage loans and other investments — — — — (2 ) — (2 ) — Other () (7 ) 13 6 (478 ) (3 ) 11 8 166 Total pretax 75 (107 ) (32 ) 688 71 (69 ) 2 (398 ) Tax effects (27 ) 38 11 (241 ) (25 ) 25 — 140 Noncontrolling interests (1 ) 3 2 (7 ) (1 ) 1 — 4 Net of tax and noncontrolling interests $ 47 $ (66 ) $ (19 ) $ 440 $ 45 $ (43 ) $ 2 $ (254 ) (*) 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): Nine months ended September 30, 2016 2015 Fixed maturities: Gross gains $ 44 $ 24 Gross losses (8 ) — Equity securities: Gross gains 49 59 Gross losses (3 ) —

Derivatives (Tables)

Derivatives (Tables)	9 Months Ended
Derivatives (Tables)	Sep. 30, 2016
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): September 30, 2016 December 31, 2015 Derivative Balance Sheet Line Asset Liability Asset Liability MBS with embedded derivatives Fixed maturities $ 120 $ — $ 130 $ — Public company warrants Equity securities 3 — 4 — Fixed-indexed annuities (embedded derivative) Annuity benefits accumulated — 1,688 — 1,369 Equity index call options Other investments 447 — 241 — Reinsurance contracts (embedded derivative) Other liabilities — 13 — 7 $ 570 $ 1,701 $ 375 $ 1,376
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 AFG’s Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting for the third quarter and first nine months of 2016 and 2015 (in millions): Three months ended September 30, Nine months ended September 30, Derivative Statement of Earnings Line 2016 2015 2016 2015 MBS with embedded derivatives Realized gains on securities $ (4 ) $ (4 ) $ — $ (7 ) Public company warrants Realized gains on securities 1 — — — Fixed-indexed annuities (embedded derivative) Annuity benefits (109 ) 130 (188 ) 99 Equity index call options Annuity benefits 105 (167 ) 81 (144 ) Reinsurance contracts (embedded derivative) Net investment income — 1 (6 ) 4 $ (7 ) $ (40 ) $ (113 ) $ (48 )

Deferred Policy Acquisition C27

Deferred Policy Acquisition Costs (Tables)	9 Months Ended
Deferred Policy Acquisition Costs (Tables)	Sep. 30, 2016
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 Subtotal Unrealized Total Total Balance at June 30, 2016 $ 234 $ 1,089 $ 116 $ 51 $ 1,256 $ (609 ) $ 647 $ 881 Additions 132 48 1 — 49 — 49 181 Amortization: Periodic amortization (134 ) (42 ) (6 ) (3 ) (51 ) — (51 ) (185 ) Included in realized gains — 1 — — 1 — 1 1 Foreign currency translation (1 ) — — — — — — (1 ) Change in unrealized — — — — — (10 ) (10 ) (10 ) Balance at September 30, 2016 $ 231 $ 1,096 $ 111 $ 48 $ 1,255 $ (619 ) $ 636 $ 867 Balance at June 30, 2015 $ 223 $ 934 $ 123 $ 68 $ 1,125 $ (383 ) $ 742 $ 965 Additions 138 74 3 — 77 — 77 215 Amortization: Periodic amortization (132 ) (36 ) (6 ) (3 ) (45 ) — (45 ) (177 ) Included in realized gains — 3 — — 3 — 3 3 Foreign currency translation (2 ) — — — — — — (2 ) Change in unrealized — — — — — (11 ) (11 ) (11 ) Balance at September 30, 2015 $ 227 $ 975 $ 120 $ 65 $ 1,160 $ (394 ) $ 766 $ 993 Balance at December 31, 2015 $ 226 $ 1,018 $ 119 $ 55 $ 1,192 $ (234 ) $ 958 $ 1,184 Additions 403 172 8 — 180 — 180 583 Amortization: Periodic amortization (396 ) (99 ) (17 ) (7 ) (123 ) — (123 ) (519 ) Included in realized gains — 5 1 — 6 — 6 6 Foreign currency translation (2 ) — — — — — — (2 ) Change in unrealized — — — — — (385 ) (385 ) (385 ) Balance at September 30, 2016 $ 231 $ 1,096 $ 111 $ 48 $ 1,255 $ (619 ) $ 636 $ 867 Balance at December 31, 2014 $ 221 $ 925 $ 132 $ 74 $ 1,131 $ (531 ) $ 600 $ 821 Additions 396 164 7 — 171 — 171 567 Amortization: Periodic amortization (388 ) (120 ) (20 ) (9 ) (149 ) — (149 ) (537 ) Included in realized gains — 6 1 — 7 — 7 7 Foreign currency translation (2 ) — — — — — — (2 ) Change in unrealized — — — — — 137 137 137 Balance at September 30, 2015 $ 227 $ 975 $ 120 $ 65 $ 1,160 $ (394 ) $ 766 $ 993

Managed Investment Entities (Ta

Managed Investment Entities (Tables)	9 Months Ended
Managed Investment Entities (Tables)	Sep. 30, 2016
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 September 30, Nine months ended September 30, 2016 2015 2016 2015 Gains (losses) on change in fair value of assets/liabilities (a): Assets $ 60 $ (53 ) $ 107 $ (27 ) Liabilities (49 ) 42 (98 ) 11 Management fees paid to AFG 4 4 12 11 CLO earnings (losses) attributable to AFG shareholders (b) 17 (3 ) 29 5 (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)	9 Months Ended
Long-Term Debt (Tables)	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of long-term debt instruments	Long-term debt consisted of the following (in millions): September 30, 2016 December 31, 2015 Principal Discount and Issue Costs Carrying Value Principal Discount and Issue Costs Carrying Value Direct Senior Obligations of AFG: 9-7/8% Senior Notes due June 2019 $ 350 $ (1 ) $ 349 $ 350 $ (1 ) $ 349 3-1/2% Senior Notes due August 2026 300 (4 ) 296 — — — 6-3/8% Senior Notes due June 2042 230 (7 ) 223 230 (7 ) 223 5-3/4% Senior Notes due August 2042 125 (4 ) 121 125 (4 ) 121 Other 3 — 3 3 — 3 1,008 (16 ) 992 708 (12 ) 696 Direct Subordinated Obligations of AFG: 6-1/4% Subordinated Debentures due September 2054 150 (5 ) 145 150 (5 ) 145 6% Subordinated Debentures due November 2055 150 (5 ) 145 150 (5 ) 145 300 (10 ) 290 300 (10 ) 290 Subsidiaries: National Interstate bank credit facility 18 — 18 12 — 12 $ 1,326 $ (26 ) $ 1,300 $ 1,020 $ (22 ) $ 998
Summary of secured and unsecured long-term debt	As shown below (principal amount, in millions), the majority of AFG’s long-term debt is unsecured obligations of the holding company and its subsidiaries: September 30, December 31, Senior unsecured obligations $ 1,026 $ 720 Subordinated unsecured obligations 300 300 $ 1,326 $ 1,020

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
Shareholders' Equity (Tables)	Sep. 30, 2016
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 September 30, 2016 Net unrealized gains (losses) on securities: Unrealized holding gains (losses) on securities arising during the period $ 138 $ (49 ) $ 89 $ (1 ) $ 88 Reclassification adjustment for realized (gains) losses included in net earnings (a) (2 ) 1 (1 ) — (1 ) Total net unrealized gains on securities (b) $ 685 136 (48 ) 88 (1 ) 87 $ 772 Net unrealized gains (losses) on cash flow hedges 5 (1 ) 1 — — — 5 Foreign currency translation adjustments (15 ) (2 ) (1 ) (3 ) — (3 ) (18 ) Pension and other postretirement plans adjustments (6 ) — — — — — (6 ) Total $ 669 $ 133 $ (48 ) $ 85 $ (1 ) $ 84 $ 753 Quarter ended September 30, 2015 Net unrealized gains (losses) on securities: Unrealized holding losses on securities arising during the period $ (171 ) $ 61 $ (110 ) $ 3 $ (107 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) 16 (6 ) 10 (1 ) 9 Total net unrealized gains (losses) on securities $ 587 (155 ) 55 (100 ) 2 (98 ) $ 489 Net unrealized gains on cash flow hedges — 3 (1 ) 2 — 2 2 Foreign currency translation adjustments (16 ) (5 ) (2 ) (7 ) — (7 ) (23 ) Pension and other postretirement plans adjustments (8 ) 1 — 1 — 1 (7 ) Total $ 563 $ (156 ) $ 52 $ (104 ) $ 2 $ (102 ) $ 461 Other Comprehensive Income AOCI Beginning Balance Pretax Tax Net of tax Attributable to noncontrolling interests Attributable to shareholders AOCI Ending Balance Nine months ended September 30, 2016 Net unrealized gains (losses) on securities: Unrealized holding gains (losses) on securities arising during the period $ 656 $ (229 ) $ 427 $ (6 ) $ 421 Reclassification adjustment for realized (gains) losses included in net earnings (a) 32 (12 ) 20 (1 ) 19 Total net unrealized gains on securities (b) $ 332 688 (241 ) 447 (7 ) 440 $ 772 Net unrealized gains on cash flow hedges 1 6 (2 ) 4 — 4 5 Foreign currency translation adjustments (22 ) 2 2 4 — 4 (18 ) Pension and other postretirement plans adjustments (7 ) 1 — 1 — 1 (6 ) Total $ 304 $ 697 $ (241 ) $ 456 $ (7 ) $ 449 $ 753 Nine months ended September 30, 2015 Net unrealized gains (losses) on securities: Unrealized holding losses on securities arising during the period $ (394 ) $ 139 $ (255 ) $ 5 $ (250 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) (4 ) 1 (3 ) (1 ) (4 ) Total net unrealized gains (losses) on securities $ 743 (398 ) 140 (258 ) 4 (254 ) $ 489 Net unrealized gains on cash flow hedges — 3 (1 ) 2 — 2 2 Foreign currency translation adjustments (8 ) (11 ) (4 ) (15 ) — (15 ) (23 ) Pension and other postretirement plans adjustments (8 ) 1 — 1 — 1 (7 ) Total $ 727 $ (405 ) $ 135 $ (270 ) $ 4 $ (266 ) $ 461 (a) The reclassification adjustment out of net unrealized gains on securities affected the following lines in AFG’s Statement of Earnings: OCI component Affected line in the 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 $51 million at September 30, 2016 compared to $48 million at June 30, 2016 and $51 million at December 31, 2015 related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
Income Taxes (Tables)	Sep. 30, 2016
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 AFG’s Statement of Earnings (dollars in millions): Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Amount % of EBT Amount % of EBT Amount % of EBT Amount % of EBT Earnings before income taxes (“EBT”) $ 178 $ 99 $ 470 $ 355 Income taxes at statutory rate $ 63 35 % $ 34 35 % $ 165 35 % $ 124 35 % Effect of: Tax exempt interest (5 ) (3 %) (6 ) (6 %) (18 ) (4 %) (20 ) (6 %) Change in valuation allowance 7 4 % 8 8 % 40 9 % 8 2 % Subsidiaries not in AFG’s tax return 2 1 % — — % 4 1 % 2 1 % Other (2 ) — % (3 ) (4 %) (1 ) (1 %) 1 — % Provision for income taxes as shown in the statement of earnings $ 65 37 % $ 33 33 % $ 190 40 % $ 115 32 %

Accounting Policies - Narrative

Accounting Policies - Narrative (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accounting Policies [Abstract]
Weighted average common shares adjustment related to stock-based compensation (shares)	1.6	1.8	1.6	1.8
Anti-dilutive potential common shares related to stock-based compensation plans (shares)	0.2	0.9	0.6	1.2
Maturities of short term investments			3 months

Acquisition and Sale of Busin33

Acquisition and Sale of Businesses - Narrative on Acquisition of Subsidiary (Details) - USD ($) $ / shares in Units, $ in Millions	Nov. 10, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Business Acquisition
Income tax expense (benefit)		$ 65	$ 33	$ 190	$ 115
AFG
Business Acquisition
Percentage ownership of National Interstate by parent company		51.00%		51.00%
Alan Spachman
Business Acquisition
Percentage ownership of National Interstate by noncontrolling owner		10.00%		10.00%
Alan Spachman \| Percentage represented based on the shares not owned by parent company
Business Acquisition
Percentage ownership of National Interstate by noncontrolling owner		20.00%		20.00%
Scenario, Forecast \| AFG
Business Acquisition
Reduction to capital surplus	$ (140)
Income tax expense (benefit)	$ (66)
Scenario, Forecast \| National Interstate
Business Acquisition
Payments to acquire business (USD per share)	$ 32
Cash dividend paid (USD per share)	$ 0.50
Payments to acquire business	$ 320

Acquisition and Sale of Busin34

Acquisition and Sale of Businesses - Narrative on Sale of Businesses (Details) $ in Millions	Dec. 24, 2015USD ($)	Mar. 31, 2015	Sep. 30, 2016USD ($)policy	Jun. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Sep. 30, 2016USD ($)policy	Sep. 30, 2015USD ($)	Nov. 30, 2015
Sale of Business
Realized gains (losses) on subsidiaries			$ 0		$ 5		$ 2	$ (157)
Run-off long-term care insurance business
Sale of Business
Cash proceeds from the sale of business	$ 7
Investment securities proceeds received from the sale of business	11
Potential additional sale proceeds based on the release of certain statutory liabilities of the legal entities sold							13
Contingent capital support agreement amount	$ 35
Contingent capital support agreement term	5 years
Long-term care insurance reserves of business sold as a percentage of total long-term care insurance reserves									96.00%
Cash and investment securities proceeds from the sale of business	$ 18
Total tax benefits proceeds from the sale of business							$ 97
Realized gains (losses) on subsidiaries	(166)			$ 2		$ (162)
Loss on subsidiaries, net of tax	$ (108)					$ (105)
Carrying value of the assets and liabilities of business sold as a percentage of total assets and liabilities	4.00%	4.00%
AFG \| Run-off long-term care insurance business
Sale of Business
Number of long-term care insurance policies \| policy			1,600				1,600
Long-term care insurance reserves			$ 38				$ 38

Acquisition and Sale of Busin35

Acquisition and Sale of Businesses - Revenues, costs and expenses, and earnings before income taxes for the subsidiaries sold (Details) - Run-off long-term care insurance business - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Life, accident and health net earned premiums:
Long-term care	$ 19	$ 56
Life operations	3	8
Net investment income	19	56
Realized gains (losses) on securities and other income	(4)	(6)
Total revenues	37	114
Annuity benefits	2	6
Life, accident and health benefits:
Long-term care	21	67
Life operations	3	8
Annuity and supplemental insurance acquisition expenses	3	9
Other expenses	4	13
Total costs and expenses	33	103
Earnings before income taxes	$ 4	$ 11

Segments of Operations - Narrat

Segments of Operations - Narrative (Details) $ in Millions		3 Months Ended				9 Months Ended
Segments of Operations - Narrative (Details) $ in Millions		Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Sep. 30, 2016USD ($)segment	Sep. 30, 2015USD ($)
Segment Reporting Information [Line Items]
Number of segments \| segment						4
Other income		$ 46		$ 43		$ 172	$ 185
Special charges related to the exit of certain lines of business within subsidiaries						65
Property and Casualty Insurance
Segment Reporting Information [Line Items]
Other income	[1]	3		2		$ 46	$ 61
Property and Casualty Insurance \| Real Estate Investment
Segment Reporting Information [Line Items]
Other income			$ 32		$ 51
Other
Segment Reporting Information [Line Items]
Special charges to increase asbestos and environmental reserves		5		12
Write off of deferred debt issuance cost due to the retirement of debt				4
Other Lines
Segment Reporting Information [Line Items]
Special charges related to the exit of certain lines of business within subsidiaries			$ 65
Special charges to increase asbestos and environmental reserves		$ 36		$ 67

[1]	Includes pretax income of $32 million (before noncontrolling interest) from the sale of an apartment property in the second quarter of 2016 and $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015.

Segments of Operations - Revenu

Segments of Operations - Revenues by segment and sub-segment (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Total premiums earned		$ 1,159	$ 1,173	$ 3,184	$ 3,104
Net investment income		433	425	1,267	1,217
Other income		46	43	172	185
Revenues before realized gains (losses)		1,703	1,698	4,791	4,682
Realized gains (losses) on securities		2	(16)	(32)	2
Realized gains (losses) on subsidiaries		0	5	2	(157)
Total revenues		1,705	1,687	4,761	4,527
Property and Casualty Insurance
Segment Reporting Information [Line Items]
Total premiums earned		1,159	1,173	3,184	3,104
Net investment income		93	83	265	245
Other income	[1]	3	2	46	61
Revenues before realized gains (losses)		1,255	1,258	3,495	3,410
Annuity
Segment Reporting Information [Line Items]
Net investment income		351	317	1,010	915
Other income		26	24	76	75
Revenues before realized gains (losses)		377	341	1,086	990
Run-off Long-term Care and Life
Segment Reporting Information [Line Items]
Revenues before realized gains (losses)	[2]	13	50	37	145
Other
Segment Reporting Information [Line Items]
Revenues before realized gains (losses)		58	49	173	137
Specialty Property and transportation \| Property and Casualty Insurance
Segment Reporting Information [Line Items]
Total premiums earned		493	517	1,197	1,157
Specialty casualty \| Property and Casualty Insurance
Segment Reporting Information [Line Items]
Total premiums earned		497	503	1,496	1,496
Specialty financial \| Property and Casualty Insurance
Segment Reporting Information [Line Items]
Total premiums earned		145	131	416	380
Other specialty \| Property and Casualty Insurance
Segment Reporting Information [Line Items]
Total premiums earned		$ 24	$ 22	$ 75	$ 71

[1]	Includes pretax income of $32 million (before noncontrolling interest) from the sale of an apartment property in the second quarter of 2016 and $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015.
[2]	AFG sold substantially all of its run-off long-term care insurance business in December 2015.

Segments of Operations - Earnin

Segments of Operations - Earnings before income taxes by segment and sub-segment (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Earnings before realized gains (losses) and income taxes		$ 176	$ 110	$ 500	$ 510
Realized gains (losses) on securities		2	(16)	(32)	2
Realized gains (losses) on subsidiaries		0	5	2	(157)
Earnings before income taxes		178	99	470	355
Property and Casualty Insurance
Segment Reporting Information [Line Items]
Property and casualty insurance underwriting		42	15	126	125
Investment and other income, net	[1]	79	75	269	272
Earnings before realized gains (losses) and income taxes		121	90	395	397
Annuity
Segment Reporting Information [Line Items]
Earnings before realized gains (losses) and income taxes		107	67	236	230
Run-off Long-term Care and Life
Segment Reporting Information [Line Items]
Earnings before realized gains (losses) and income taxes	[2]	1	6	0	14
Other
Segment Reporting Information [Line Items]
Earnings before realized gains (losses) and income taxes	[3]	(53)	(53)	(131)	(131)
Specialty Property and transportation \| Property and Casualty Insurance
Segment Reporting Information [Line Items]
Property and casualty insurance underwriting		44	20	91	14
Specialty casualty \| Property and Casualty Insurance
Segment Reporting Information [Line Items]
Property and casualty insurance underwriting		13	31	65	96
Specialty financial \| Property and Casualty Insurance
Segment Reporting Information [Line Items]
Property and casualty insurance underwriting		19	26	64	72
Other specialty \| Property and Casualty Insurance
Segment Reporting Information [Line Items]
Property and casualty insurance underwriting		2	7	7	13
Other Lines \| Property and Casualty Insurance
Segment Reporting Information [Line Items]
Property and casualty insurance underwriting	[4]	$ (36)	$ (69)	$ (101)	$ (70)

[1]	Includes pretax income of $32 million (before noncontrolling interest) from the sale of an apartment property in the second quarter of 2016 and $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015.
[2]	AFG sold substantially all of its run-off long-term care insurance business in December 2015.
[3]	Includes holding company interest and expenses, including a $4 million loss on retirement of debt in the third quarter of 2015, and special charges of $5 million and $12 million in the third quarter of 2016 and 2015, respectively, to increase A&E reserves related to AFG’s former railroad and manufacturing operations.
[4]	Includes a special charge of $65 million related to the exit of certain lines of business within AFG’s Lloyd’s-based insurer, Neon, in the second quarter of 2016 and special charges of $36 million and $67 million in the third quarter of 2016 and 2015, respectively, to increase asbestos and environmental (“A&E”) reserves.

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) $ in Millions	3 Months Ended			9 Months Ended
Fair Value Measurements - Narrative (Details) $ in Millions	Sep. 30, 2016USD ($)stock	Sep. 30, 2015USD ($)stock	Mar. 31, 2015USD ($)	Sep. 30, 2016USD ($)stockprofessional	Sep. 30, 2015USD ($)stock	Dec. 31, 2015USD ($)
Fair Value Measurements (Textual) [Abstract]
AFG's internal investment professionals \| professional				25
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				76.00%
Level 3 assets that were priced using non-binding broker quotes				$ 1,310
Life contingent annuities	$ 204			$ 204		$ 200
Maximum
Fair Value Measurements (Textual) [Abstract]
Percentage of internally developed Level 3 asset fair values to Shareholders' equity (are less than)				10.00%
Fixed-indexed annuties (embedded derivative), majority of future years \| Minimum
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 \| Maximum
Fair Value Measurements (Textual) [Abstract]
Unobservable input surrenders used in Level 3 fair value determination				10.00%
Fixed-indexed annuities (embedded derivative)
Fair Value Measurements (Textual) [Abstract]
Fair value of derivatives in annuity benefits accumulated measured using a discounted cash flow approach	$ 1,690			$ 1,690
Fixed-indexed annuities (embedded derivative) \| Minimum
Fair Value Measurements (Textual) [Abstract]
Unobservable input surrenders used in Level 3 fair value determination				3.00%
Fixed-indexed annuities (embedded derivative) \| Maximum
Fair Value Measurements (Textual) [Abstract]
Unobservable input surrenders used in Level 3 fair value determination				21.00%
Common stocks
Fair Value Measurements (Textual) [Abstract]
Number of stocks transferred from Level 2 to Level 1 \| stock		1			7
Fair value of assets transferred from Level 2 to Level 1, during the first nine months		$ 80			$ 80
Number of stocks transferred from Level 1 to Level 2 \| stock	1			1
Common stocks \| Maximum
Fair Value Measurements (Textual) [Abstract]
Fair value of assets transferred from Level 2 to Level 1, during the third quarter		1
Fair value of assets transferred from Level 1 to Level 2, during the third quarter	$ 1
Fair value of assets transferred from Level 1 to Level 2, during the first nine months	1			$ 1
Perpetual preferred stocks
Fair Value Measurements (Textual) [Abstract]
Number of stocks transferred from Level 2 to Level 1 \| stock				6	4
Fair value of assets transferred from Level 2 to Level 1, during the first nine months	35	$ 19		$ 35	$ 19
Number of stocks transferred from Level 1 to Level 2 \| stock		7		5	7
Fair value of assets transferred from Level 1 to Level 2, during the third quarter		$ 31
Fair value of assets transferred from Level 1 to Level 2, during the first nine months	$ 12	31		$ 12	$ 31
Mandatorily redeemable preferred stocks
Fair Value Measurements (Textual) [Abstract]
Number of stocks transferred from Level 2 to Level 1 \| stock					1
Fair value of assets transferred from Level 2 to Level 1, during the first nine months		$ 10			$ 10
Run-off long-term care insurance business
Fair Value Measurements (Textual) [Abstract]
Estimated sale proceeds of the run-off long-term care insurance business			$ 14

Fair Value Measurements - Asset

Fair Value Measurements - Assets and liabilities measured and carried at fair value in the financial statements (Details) - USD ($) $ in Millions		Sep. 30, 2016	Dec. 31, 2015
Assets:
Available for sale (AFS) fixed maturities		$ 35,394	$ 32,284
Trading fixed maturities		348	254
Assets of managed investment entities (“MIE”)		4,312	4,047
Variable annuity assets (separate accounts)	[1]	606	608
Total assets accounted for at fair value		42,760	39,155
Liabilities:
Liabilities of managed investment entities		4,067	3,781
Total liabilities accounted for at fair value		5,762	5,156
Annuity benefits accumulated
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		1,688	1,369
Derivatives in long-term debt
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		(6)	(2)
Other liabilities — derivatives
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		13	8
Fixed maturities
Assets:
Available for sale (AFS) fixed maturities		35,394	32,284
Trading fixed maturities		348	254
U.S. Government and government agencies
Assets:
Available for sale (AFS) fixed maturities		332	307
States, municipalities and political subdivisions
Assets:
Available for sale (AFS) fixed maturities		7,047	6,856
Foreign government
Assets:
Available for sale (AFS) fixed maturities		141	154
Residential MBS
Assets:
Available for sale (AFS) fixed maturities		3,816	3,529
Commercial MBS
Assets:
Available for sale (AFS) fixed maturities		1,849	2,187
Asset-backed securities (“ABS”)
Assets:
Available for sale (AFS) fixed maturities		5,889	4,934
Corporate and other
Assets:
Available for sale (AFS) fixed maturities		16,320	14,317
Equity securities
Assets:
Equity securities — AFS and trading		1,639	1,719
Other assets — derivatives
Assets:
Derivatives included in other investments and other assets		14	2
Level 1
Assets:
Assets of managed investment entities (“MIE”)		328	309
Variable annuity assets (separate accounts)	[1]	0	0
Total assets accounted for at fair value		1,881	1,834
Liabilities:
Liabilities of managed investment entities		310	289
Total liabilities accounted for at fair value		310	289
Level 1 \| Annuity benefits accumulated
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		0	0
Level 1 \| Derivatives in long-term debt
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		0	0
Level 1 \| Other liabilities — derivatives
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		0	0
Level 1 \| Fixed maturities
Assets:
Available for sale (AFS) fixed maturities		168	150
Trading fixed maturities		12	13
Level 1 \| U.S. Government and government agencies
Assets:
Available for sale (AFS) fixed maturities		133	100
Level 1 \| States, municipalities and political subdivisions
Assets:
Available for sale (AFS) fixed maturities		0	0
Level 1 \| Foreign government
Assets:
Available for sale (AFS) fixed maturities		0	0
Level 1 \| Residential MBS
Assets:
Available for sale (AFS) fixed maturities		0	0
Level 1 \| Commercial MBS
Assets:
Available for sale (AFS) fixed maturities		0	0
Level 1 \| Asset-backed securities (“ABS”)
Assets:
Available for sale (AFS) fixed maturities		0	0
Level 1 \| Corporate and other
Assets:
Available for sale (AFS) fixed maturities		35	50
Level 1 \| Equity securities
Assets:
Equity securities — AFS and trading		1,373	1,362
Level 1 \| Other assets — derivatives
Assets:
Derivatives included in other investments and other assets		0	0
Level 2
Assets:
Assets of managed investment entities (“MIE”)		3,960	3,712
Variable annuity assets (separate accounts)	[1]	606	608
Total assets accounted for at fair value		39,162	35,685
Liabilities:
Liabilities of managed investment entities		3,734	3,468
Total liabilities accounted for at fair value		3,741	3,474
Level 2 \| Annuity benefits accumulated
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		0	0
Level 2 \| Derivatives in long-term debt
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		(6)	(2)
Level 2 \| Other liabilities — derivatives
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		13	8
Level 2 \| Fixed maturities
Assets:
Available for sale (AFS) fixed maturities		33,698	30,664
Trading fixed maturities		336	241
Level 2 \| U.S. Government and government agencies
Assets:
Available for sale (AFS) fixed maturities		191	192
Level 2 \| States, municipalities and political subdivisions
Assets:
Available for sale (AFS) fixed maturities		6,956	6,767
Level 2 \| Foreign government
Assets:
Available for sale (AFS) fixed maturities		141	154
Level 2 \| Residential MBS
Assets:
Available for sale (AFS) fixed maturities		3,597	3,305
Level 2 \| Commercial MBS
Assets:
Available for sale (AFS) fixed maturities		1,815	2,148
Level 2 \| Asset-backed securities (“ABS”)
Assets:
Available for sale (AFS) fixed maturities		5,422	4,464
Level 2 \| Corporate and other
Assets:
Available for sale (AFS) fixed maturities		15,576	13,634
Level 2 \| Equity securities
Assets:
Equity securities — AFS and trading		101	217
Level 2 \| Other assets — derivatives
Assets:
Derivatives included in other investments and other assets		14	2
Level 3
Assets:
Assets of managed investment entities (“MIE”)		24	26
Variable annuity assets (separate accounts)	[1]	0	0
Total assets accounted for at fair value		1,717	1,636
Liabilities:
Liabilities of managed investment entities		23	24
Total liabilities accounted for at fair value		1,711	1,393
Level 3 \| Annuity benefits accumulated
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		1,688	1,369
Level 3 \| Derivatives in long-term debt
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		0	0
Level 3 \| Other liabilities — derivatives
Liabilities:
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities		0	0
Level 3 \| Fixed maturities
Assets:
Available for sale (AFS) fixed maturities		1,528	1,470
Trading fixed maturities		0	0
Level 3 \| U.S. Government and government agencies
Assets:
Available for sale (AFS) fixed maturities		8	15
Level 3 \| States, municipalities and political subdivisions
Assets:
Available for sale (AFS) fixed maturities		91	89
Level 3 \| Foreign government
Assets:
Available for sale (AFS) fixed maturities		0	0
Level 3 \| Residential MBS
Assets:
Available for sale (AFS) fixed maturities		219	224
Level 3 \| Commercial MBS
Assets:
Available for sale (AFS) fixed maturities		34	39
Level 3 \| Asset-backed securities (“ABS”)
Assets:
Available for sale (AFS) fixed maturities		467	470
Level 3 \| Corporate and other
Assets:
Available for sale (AFS) fixed maturities		709	633
Level 3 \| Equity securities
Assets:
Equity securities — AFS and trading		165	140
Level 3 \| Other assets — derivatives
Assets:
Derivatives included in other investments and other assets		0	0
Equity index call options \| Other investments — equity index call options
Assets:
Derivatives included in other investments and other assets		447	241
Equity index call options \| Level 1 \| Other investments — equity index call options
Assets:
Derivatives included in other investments and other assets		0	0
Equity index call options \| Level 2 \| Other investments — equity index call options
Assets:
Derivatives included in other investments and other assets		447	241
Equity index call options \| Level 3 \| Other investments — equity index call options
Assets:
Derivatives included in other investments and other assets		$ 0	$ 0

[1]	Variable annuity liabilities equal the fair value of variable annuity assets.

Fair Value Measurements - Unobs

Fair Value Measurements - Unobservable inputs used in determining fair value of embedded derivatives (Details) - Embedded derivatives	9 Months Ended
	Sep. 30, 2016
Unobservable inputs used by management in determining fair value of embedded derivatives
Risk margin for uncertainty in cash flows	0.58%
Minimum
Unobservable inputs used by management in determining fair value of embedded derivatives
Adjustment for insurance subsidiary's credit risk	0.40%
Surrenders	3.00%
Partial surrenders	2.00%
Annuitizations	0.25%
Deaths	1.50%
Budgeted option costs	1.75%
Maximum
Unobservable inputs used by management in determining fair value of embedded derivatives
Adjustment for insurance subsidiary's credit risk	2.90%
Surrenders	21.00%
Partial surrenders	10.00%
Annuitizations	1.00%
Deaths	4.00%
Budgeted option costs	3.50%

Fair Value Measurements - Chang

Fair Value Measurements - Changes in balances of Level 3 financial assets carried at fair value (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	$ 1,725	$ 1,519	$ 1,636	$ 1,355
Impact of accounting change				0
Total realized/unrealized gains (losses) included in Net income	0	(6)	(28)	(20)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	7	4	52	(7)
Purchases and issuances	47	150	172	423
Sales and settlements	(51)	(26)	(161)	(114)
Transfer into Level 3	0	61	104	165
Transfer out of Level 3	(11)	(11)	(58)	(111)
Financial assets, Ending Balance	1,717	1,691	1,717	1,691
Fixed maturities
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	1,533	1,372	1,470	1,231
Impact of accounting change				0
Total realized/unrealized gains (losses) included in Net income	(3)	(3)	(10)	(7)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	2	6	31	(6)
Purchases and issuances	37	143	146	367
Sales and settlements	(30)	(26)	(140)	(114)
Transfer into Level 3	0	61	89	165
Transfer out of Level 3	(11)	(11)	(58)	(94)
Financial assets, Ending Balance	1,528	1,542	1,528	1,542
U.S. government agency
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	8	15	15	15
Impact of accounting change				0
Total realized/unrealized gains (losses) included in Net income	0	0	(8)	0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	0	1	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	8	15	8	15
State and municipal
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	91	84	89	100
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)	1	1	4	(1)
Purchases and issuances	0	9	0	34
Sales and settlements	(1)	(1)	(2)	(1)
Transfer into Level 3	0	0	0	0
Transfer out of Level 3	0	0	0	(39)
Financial assets, Ending Balance	91	93	91	93
Residential MBS
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	231	296	224	300
Impact of accounting change				0
Total realized/unrealized gains (losses) included in Net income	(2)	(3)	0	(5)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	(1)	1	0
Purchases and issuances	0	0	0	0
Sales and settlements	(8)	(8)	(21)	(24)
Transfer into Level 3	0	10	33	67
Transfer out of Level 3	(2)	0	(18)	(44)
Financial assets, Ending Balance	219	294	219	294
Commercial MBS
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	36	48	39	44
Impact of accounting change				0
Total realized/unrealized gains (losses) included in Net income	0	0	(1)	0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	(1)	0	(1)
Purchases and issuances	0	0	0	0
Sales and settlements	(2)	(1)	(4)	(1)
Transfer into Level 3	0	0	0	4
Transfer out of Level 3	0	(1)	0	(1)
Financial assets, Ending Balance	34	45	34	45
Asset-backed securities
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	478	332	470	226
Impact of accounting change				0
Total realized/unrealized gains (losses) included in Net income	(1)	0	(1)	1
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	4	0	1	0
Purchases and issuances	0	110	15	230
Sales and settlements	(5)	(3)	(24)	(51)
Transfer into Level 3	0	20	41	53
Transfer out of Level 3	(9)	(10)	(35)	(10)
Financial assets, Ending Balance	467	449	467	449
Corporate and other
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	689	597	633	546
Impact of accounting change				0
Total realized/unrealized gains (losses) included in Net income	0	0	0	(3)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	(3)	7	24	(4)
Purchases and issuances	37	24	131	103
Sales and settlements	(14)	(13)	(89)	(37)
Transfer into Level 3	0	31	15	41
Transfer out of Level 3	0	0	(5)	0
Financial assets, Ending Balance	709	646	709	646
Equity securities
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	166	118	140	93
Impact of accounting change				0
Total realized/unrealized gains (losses) included in Net income	5	0	(12)	(4)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	5	(2)	21	(1)
Purchases and issuances	10	7	22	52
Sales and settlements	(21)	0	(21)	0
Transfer into Level 3	0	0	15	0
Transfer out of Level 3	0	0	0	(17)
Financial assets, Ending Balance	165	123	165	123
Assets of MIE
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	26	29	26	31
Impact of accounting change				0
Total realized/unrealized gains (losses) included in Net income	(2)	(3)	(6)	(9)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	0	0	0
Purchases and issuances	0	0	4	4
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	$ 24	$ 26	$ 24	$ 26

Fair Value Measurements - Cha43

Fair Value Measurements - Changes in balances of Level 3 financial liabilities carried at fair value (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Financial liabilities, Beginning Balance		$ (1,557)	$ (1,258)	$ (1,369)	$ (3,861)
Impact of accounting change					2,701
Total realized/unrealized gains (losses) included in Net income		(109)	130	(188)	99
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		0	0	0	0
Purchases and issuances		(53)	(88)	(207)	(183)
Sales and settlements		31	18	76	46
Transfer into Level 3		0	0	0	0
Transfer out of Level 3		0	0	0	0
Financial liabilities, Ending Balance	[1]	(1,688)	(1,198)	(1,688)	(1,198)
Liabilities of MIE
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Financial liabilities, Beginning Balance					(2,701)
Impact of accounting change	[2]				2,701
Total realized/unrealized gains (losses) included in Net income					0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)					0
Purchases and issuances					0
Sales and settlements					0
Transfer into Level 3					0
Transfer out of Level 3					0
Financial liabilities, Ending Balance			0		0
Embedded derivatives
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Financial liabilities, Beginning Balance		(1,557)	(1,258)	(1,369)	(1,160)
Impact of accounting change					0
Total realized/unrealized gains (losses) included in Net income		(109)	130	(188)	99
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		0	0	0	0
Purchases and issuances		(53)	(88)	(207)	(183)
Sales and settlements		31	18	76	46
Transfer into Level 3		0	0	0	0
Transfer out of Level 3		0	0	0	0
Financial liabilities, Ending Balance		$ (1,688)	$ (1,198)	$ (1,688)	$ (1,198)

[1]	As discussed previously, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets.
[2]	The impact of implementing new guidance adopted in 2015, as discussed above and in Note A — “Accounting Policies — Managed Investment Entities.”

Fair Value Measurements - The c

Fair Value Measurements - The carrying value and fair value of financial instruments (Details) - USD ($) $ in Millions		Sep. 30, 2016	Dec. 31, 2015
Financial assets:
Mortgage loans		$ 1,180	$ 1,067
Policy loans		194	201
Financial liabilities:
Long-term debt		1,300	998
Level 1
Financial assets:
Cash and cash equivalents		1,639	1,220
Mortgage loans		0	0
Policy loans		0	0
Total financial assets not accounted for at fair value		1,639	1,220
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
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		1,417	1,105
Total financial liabilities not accounted for at fair value		1,417	1,105
Level 3
Financial assets:
Cash and cash equivalents		0	0
Mortgage loans		1,193	1,074
Policy loans		194	201
Total financial assets not accounted for at fair value		1,387	1,275
Financial liabilities:
Annuity benefits accumulated	[1]	29,020	25,488
Long-term debt		21	15
Total financial liabilities not accounted for at fair value		29,041	25,503
Carrying Value
Financial assets:
Cash and cash equivalents		1,639	1,220
Mortgage loans		1,180	1,067
Policy loans		194	201
Total financial assets not accounted for at fair value		3,013	2,488
Financial liabilities:
Annuity benefits accumulated	[1]	29,018	26,422
Long-term debt		1,306	1,000
Total financial liabilities not accounted for at fair value		30,324	27,422
Fair Value
Financial assets:
Cash and cash equivalents		1,639	1,220
Mortgage loans		1,193	1,074
Policy loans		194	201
Total financial assets not accounted for at fair value		3,026	2,495
Financial liabilities:
Annuity benefits accumulated	[1]	29,020	25,488
Long-term debt		1,438	1,120
Total financial liabilities not accounted for at fair value		$ 30,458	$ 26,608

[1]	Excludes $204 million and $200 million of life contingent annuities in the payout phase at September 30, 2016 and December 31, 2015, respectively.

Investments - Narrative (Detail

Investments - Narrative (Details) $ in Millions	3 Months Ended		9 Months Ended
Investments - Narrative (Details) $ in Millions	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)security	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
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			49.00%
Percentage (based on fair value) of available for sale fixed maturities that are in an unrealized loss position and rated investment grade			74.00%
Other than temporary impairment charges	$ 16	$ 35	$ 107	$ 69
Average life of ABS			5 years
Average life of MBS			4 years
Residential MBS
Investment [Line Items]
Non-credit related portion of other-than-temporary impairment charges taken for securities still owned	192		$ 192		$ 205
Fixed maturities, Gross Unrealized, Losses	(14)		(14)		(15)
Other than temporary impairment charges			2
Securities with non-credit other-than-temporary impairment charges
Investment [Line Items]
Gross Unrealized, Gains	131		131		134
Gross Unrealized, Losses	(5)		(5)		(6)
Fixed maturities
Investment [Line Items]
Fixed maturities, Gross Unrealized, Losses	(77)		$ (77)		(374)
Number of available for sale securities in an unrealized loss position \| security			475
Other than temporary impairment charges	2	$ 17	$ 37	$ 32
Corporate bonds
Investment [Line Items]
Other than temporary impairment charges			$ 34
Common stocks
Investment [Line Items]
Number of available for sale securities in an unrealized loss position \| security			32
Other than temporary impairment charges			$ 79
Equity securities, Gross Unrealized, Losses	(27)		$ (27)		(79)
Preferred stocks
Investment [Line Items]
Number of available for sale securities in an unrealized loss position \| security			14
Other than temporary impairment charges			$ 4
Equity securities, Gross Unrealized, Losses	$ (3)		$ (3)		$ (6)
Number of available for sale securities in an unrealized loss position for twelve months or longer \| Common stocks
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 \| Preferred stocks
Investment [Line Items]
Number of available for sale securities in an unrealized loss position \| security			1

Investments - Available for sal

Investments - Available for sale fixed maturities and equity securities (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	$ 33,586	$ 31,565
Available for sale (AFS) fixed maturities	35,394	32,284
Equity securities, Available for sale, Amortized Cost	1,392	1,469
Equity securities, Available for sale, Fair Value	1,553	1,553
Total fixed maturities
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	33,586	31,565
Fixed maturities, Available for sale, Gross Unrealized, Gains	1,885	1,093
Fixed maturities, Available for sale, Gross Unrealized, Losses	(77)	(374)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	1,808	719
Available for sale (AFS) fixed maturities	35,394	32,284
U.S. Government and government agencies
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	328	305
Fixed maturities, Available for sale, Gross Unrealized, Gains	6	5
Fixed maturities, Available for sale, Gross Unrealized, Losses	(2)	(3)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	4	2
Available for sale (AFS) fixed maturities	332	307
States, municipalities and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	6,597	6,642
Fixed maturities, Available for sale, Gross Unrealized, Gains	455	249
Fixed maturities, Available for sale, Gross Unrealized, Losses	(5)	(35)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	450	214
Available for sale (AFS) fixed maturities	7,047	6,856
Foreign government
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	134	147
Fixed maturities, Available for sale, Gross Unrealized, Gains	7	7
Fixed maturities, Available for sale, Gross Unrealized, Losses	0	0
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	7	7
Available for sale (AFS) fixed maturities	141	154
Residential MBS
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	3,530	3,236
Fixed maturities, Available for sale, Gross Unrealized, Gains	300	308
Fixed maturities, Available for sale, Gross Unrealized, Losses	(14)	(15)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	286	293
Available for sale (AFS) fixed maturities	3,816	3,529
Commercial MBS
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	1,764	2,111
Fixed maturities, Available for sale, Gross Unrealized, Gains	85	77
Fixed maturities, Available for sale, Gross Unrealized, Losses	0	(1)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	85	76
Available for sale (AFS) fixed maturities	1,849	2,187
Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	5,844	4,961
Fixed maturities, Available for sale, Gross Unrealized, Gains	70	25
Fixed maturities, Available for sale, Gross Unrealized, Losses	(25)	(52)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	45	(27)
Available for sale (AFS) fixed maturities	5,889	4,934
Corporate and other
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	15,389	14,163
Fixed maturities, Available for sale, Gross Unrealized, Gains	962	422
Fixed maturities, Available for sale, Gross Unrealized, Losses	(31)	(268)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	931	154
Available for sale (AFS) fixed maturities	16,320	14,317
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Equity securities, Available for sale, Amortized Cost	1,392	1,469
Equity securities, Available for sale, Gross Unrealized, Gains	191	169
Equity securities, Available for sale, Gross Unrealized, Losses	(30)	(85)
Equity securities, Available for sale, Net Unrealized, Gains (Losses)	161	84
Equity securities, Available for sale, Fair Value	1,553	1,553
Common stocks
Schedule of Available-for-sale Securities [Line Items]
Equity securities, Available for sale, Amortized Cost	939	1,051
Equity securities, Available for sale, Gross Unrealized, Gains	157	146
Equity securities, Available for sale, Gross Unrealized, Losses	(27)	(79)
Equity securities, Available for sale, Net Unrealized, Gains (Losses)	130	67
Equity securities, Available for sale, Fair Value	1,069	1,118
Perpetual preferred stocks
Schedule of Available-for-sale Securities [Line Items]
Equity securities, Available for sale, Amortized Cost	453	418
Equity securities, Available for sale, Gross Unrealized, Gains	34	23
Equity securities, Available for sale, Gross Unrealized, Losses	(3)	(6)
Equity securities, Available for sale, Net Unrealized, Gains (Losses)	31	17
Equity securities, Available for sale, Fair Value	$ 484	$ 435

Investments - Gross unrealized

Investments - Gross unrealized losses on securities by investment category and length of time that have been in a continuous unrealized loss position (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Total fixed maturities
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (30)	$ (312)
Fair Value - Less than twelve months	$ 2,149	$ 9,431
Fair Value as % of Cost - Less than twelve months	99.00%	97.00%
Unrealized Loss - Twelve months or more	$ (47)	$ (62)
Fair Value - Twelve months or more	$ 1,091	$ 914
Fair Value as % of Cost - Twelve months or more	96.00%	94.00%
U.S. Government and government agencies
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ 0	$ (1)
Fair Value - Less than twelve months	$ 51	$ 112
Fair Value as % of Cost - Less than twelve months	100.00%	99.00%
Unrealized Loss - Twelve months or more	$ (2)	$ (2)
Fair Value - Twelve months or more	$ 8	$ 15
Fair Value as % of Cost - Twelve months or more	80.00%	88.00%
States, municipalities and political subdivisions
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (2)	$ (33)
Fair Value - Less than twelve months	$ 191	$ 1,419
Fair Value as % of Cost - Less than twelve months	99.00%	98.00%
Unrealized Loss - Twelve months or more	$ (3)	$ (2)
Fair Value - Twelve months or more	$ 50	$ 50
Fair Value as % of Cost - Twelve months or more	94.00%	96.00%
Residential MBS
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (7)	$ (7)
Fair Value - Less than twelve months	$ 490	$ 438
Fair Value as % of Cost - Less than twelve months	99.00%	98.00%
Unrealized Loss - Twelve months or more	$ (7)	$ (8)
Fair Value - Twelve months or more	$ 158	$ 201
Fair Value as % of Cost - Twelve months or more	96.00%	96.00%
Commercial MBS
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ 0	$ 0
Fair Value - Less than twelve months	$ 23	$ 95
Fair Value as % of Cost - Less than twelve months	100.00%	100.00%
Unrealized Loss - Twelve months or more	$ 0	$ (1)
Fair Value - Twelve months or more	$ 4	$ 28
Fair Value as % of Cost - Twelve months or more	100.00%	97.00%
Asset-backed securities
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (13)	$ (42)
Fair Value - Less than twelve months	$ 924	$ 2,706
Fair Value as % of Cost - Less than twelve months	99.00%	98.00%
Unrealized Loss - Twelve months or more	$ (12)	$ (10)
Fair Value - Twelve months or more	$ 535	$ 455
Fair Value as % of Cost - Twelve months or more	98.00%	98.00%
Corporate and other
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (8)	$ (229)
Fair Value - Less than twelve months	$ 470	$ 4,661
Fair Value as % of Cost - Less than twelve months	98.00%	95.00%
Unrealized Loss - Twelve months or more	$ (23)	$ (39)
Fair Value - Twelve months or more	$ 336	$ 165
Fair Value as % of Cost - Twelve months or more	94.00%	81.00%
Total equity securities
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (29)	$ (82)
Fair Value - Less than twelve months	$ 322	$ 600
Fair Value as % of Cost - Less than twelve months	92.00%	88.00%
Unrealized Loss - Twelve months or more	$ (1)	$ (3)
Fair Value - Twelve months or more	$ 6	$ 22
Fair Value as % of Cost - Twelve months or more	86.00%	88.00%
Common stocks
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (27)	$ (79)
Fair Value - Less than twelve months	$ 233	$ 509
Fair Value as % of Cost - Less than twelve months	90.00%	87.00%
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
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (2)	$ (3)
Fair Value - Less than twelve months	$ 89	$ 91
Fair Value as % of Cost - Less than twelve months	98.00%	97.00%
Unrealized Loss - Twelve months or more	$ (1)	$ (3)
Fair Value - Twelve months or more	$ 6	$ 22
Fair Value as % of Cost - Twelve months or more	86.00%	88.00%

Investments - Credit portion of

Investments - Credit portion of other-than-temporary impairments on fixed maturities for which the non-credit portion of an impairment has been recognized in OCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Beginning Balance	$ 157	$ 166	$ 160	$ 170
Additional credit impairments on:
Previously impaired securities	0	0	2	1
Securities without prior impairments	0	2	0	2
Reductions due to sales or redemptions	(2)	(2)	(7)	(7)
Ending Balance	$ 155	$ 166	$ 155	$ 166

Investments - Scheduled maturit

Investments - Scheduled maturities of available for sale fixed maturities (Details) - Fixed maturities $ in Millions	Sep. 30, 2016USD ($)
Amortized Cost Basis, Fiscal Year Maturity [Abstract]
One year or less	$ 1,036
After one year through five years	5,686
After five years through ten years	11,767
After ten years	3,959
Fixed maturities amortized cost, Subtotal	22,448
ABS (average life of approximately 5 years)	5,844
MBS (average life of approximately 4 years)	5,294
Amortized Cost	33,586
Fair Value, Fiscal Year Maturity [Abstract]
One year or less	1,053
After one year through five years	6,047
After five years through ten years	12,467
After ten years	4,273
Fixed maturities fair value, Subtotal	23,840
ABS (average life of approximately 5 years)	5,889
MBS (average life of approximately 4 years)	5,665
Fair Value	$ 35,394
Fair Value Percent, Fiscal Year Maturity [Abstract]
One year or less	3.00%
After one year through five years	17.00%
After five years through ten years	35.00%
After ten years	12.00%
Fixed maturities fair value, Subtotal, Percent	67.00%
ABS (average life of approximately 5 years)	17.00%
MBS (average life of approximately 4 years)	16.00%
Fair value, Total, Percent	100.00%

Investments - Components of the

Investments - Components of the net unrealized gain on securities that is included in AOCI in the Balance Sheet (Details) - USD ($) $ in Millions		Sep. 30, 2016	Dec. 31, 2015
Unrealized gain on:
Pretax		$ 1,205	$ 517
Deferred Tax and Amounts Attributable to Noncontrolling Interests		(433)	(185)
Net		772	332
Total investments
Unrealized gain on:
Pretax		1,969	803
Deferred Tax and Amounts Attributable to Noncontrolling Interests		(700)	(285)
Net		1,269	518
Total fixed maturities
Unrealized gain on:
Pretax		1,808	719
Deferred Tax and Amounts Attributable to Noncontrolling Interests		(642)	(255)
Net		1,166	464
Fixed maturities — annuity segment
Unrealized gain on:
Pretax	[1]	1,420	523
Deferred Tax and Amounts Attributable to Noncontrolling Interests	[1]	(497)	(183)
Net	[1]	923	340
Fixed maturities — all other
Unrealized gain on:
Pretax		388	196
Deferred Tax and Amounts Attributable to Noncontrolling Interests		(145)	(72)
Net		243	124
Equity securities
Unrealized gain on:
Pretax		161	84
Deferred Tax and Amounts Attributable to Noncontrolling Interests		(58)	(30)
Net		103	54
Deferred policy acquisition costs — annuity segment
Unrealized gain on:
Pretax		(614)	(233)
Deferred Tax and Amounts Attributable to Noncontrolling Interests		215	82
Net		(399)	(151)
Annuity benefits accumulated
Unrealized gain on:
Pretax		(179)	(64)
Deferred Tax and Amounts Attributable to Noncontrolling Interests		63	22
Net		(116)	(42)
Life, accident and health reserves
Unrealized gain on:
Pretax		(1)
Deferred Tax and Amounts Attributable to Noncontrolling Interests		0
Net		(1)
Unearned revenue
Unrealized gain on:
Pretax		30	11
Deferred Tax and Amounts Attributable to Noncontrolling Interests		(11)	(4)
Net		$ 19	$ 7

[1]	Unrealized gains on fixed maturity investments supporting AFG’s annuity benefits accumulated.

Investments - Schedule of sourc

Investments - Schedule of sources of net investment income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net Investment Income [Line Items]
Investment income	$ 437	$ 430	$ 1,280	$ 1,231
Investment expenses	(4)	(5)	(13)	(14)
Net investment income	433	425	1,267	1,217
Fixed maturities
Net Investment Income [Line Items]
Investment income	378	370	1,126	1,082
Equity securities
Net Investment Income [Line Items]
Investment income	20	20	59	54
Equity in earnings of partnerships and similar investments
Net Investment Income [Line Items]
Investment income	16	18	31	26
Other
Net Investment Income [Line Items]
Investment income	$ 23	$ 22	$ 64	$ 69

Investments - Realized gains (l

Investments - Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	$ 18	$ 19	$ 75	$ 71
Realized — impairments	(16)	(35)	(107)	(69)
Realized gains (losses) on securities	2	(16)	(32)	2
Net of tax noncontrolling interests
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	11	11	47	45
Realized — impairments	(10)	(21)	(66)	(43)
Realized gains (losses) on securities	1	(10)	(19)	2
Change in unrealized	87	(98)	440	(254)
Total pretax
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	18	19	75	71
Realized — impairments	(16)	(35)	(107)	(69)
Realized gains (losses) on securities	2	(16)	(32)	2
Change in unrealized	136	(155)	688	(398)
Fixed maturities
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	5	7	36	17
Realized — impairments	(2)	(17)	(37)	(32)
Realized gains (losses) on securities	3	(10)	(1)	(15)
Change in unrealized	52	(9)	1,089	(414)
Equity securities
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	14	13	46	59
Realized — impairments	(16)	(23)	(83)	(48)
Realized gains (losses) on securities	(2)	(10)	(37)	11
Change in unrealized	89	(135)	77	(150)
Mortgage loans and other investments
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	0	0	0	(2)
Realized — impairments	0	0	0	0
Realized gains (losses) on securities	0	0	0	(2)
Change in unrealized	0	0	0	0
Other, Including DPAC and reserves on annuities and long-term care
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	(1)	(1)	(7)	(3)
Realized — impairments	2	5	13	11
Realized gains (losses) on securities	1	4	6	8
Change in unrealized	(5)	(11)	(478)	166
Tax effects
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	(7)	(7)	(27)	(25)
Realized — impairments	5	13	38	25
Realized gains (losses) on securities	(2)	6	11	0
Change in unrealized	(48)	55	(241)	140
Noncontrolling interests
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	0	(1)	(1)	(1)
Realized — impairments	1	1	3	1
Realized gains (losses) on securities	1	0	2	0
Change in unrealized	$ (1)	$ 2	$ (7)	$ 4

Investments - Gross realized ga

Investments - Gross realized gains and losses on available for sale fixed maturity and equity security investment transactions (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Fixed maturities
Gross realized gains and losses on the sale of available for sale fixed maturity and equity security investments
Gross gains	$ 44	$ 24
Gross losses	(8)	0
Equity securities
Gross realized gains and losses on the sale of available for sale fixed maturity and equity security investments
Gross gains	49	59
Gross losses	$ (3)	$ 0

Derivatives - Narrative (Detail

Derivatives - Narrative (Details)	3 Months Ended		9 Months Ended
Derivatives - Narrative (Details)	Sep. 30, 2016USD ($)swap	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)swap	Sep. 30, 2015USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Carrying value of collateral received to support purchased call options	$ 300,000,000		$ 300,000,000			$ 211,000,000
Cash Flow Hedges \| Designated as Hedging Instrument \| Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Number of interest rate swaps designated and qualifying as a cash flow hedges \| swap	4		4
Notional amount of derivative instrument outstanding	$ 677,000,000		$ 677,000,000			614,000,000
Gain (loss) reclassified from AOCI into net investment income	2,000,000	$ 2,000,000	5,000,000	$ 4,000,000
Gain (loss) on cash flow hedge ineffectiveness recorded in Net Earnings	0	0	0	0
Cash Flow Hedges \| Designated as Hedging Instrument \| Interest rate swaps \| Seven-year and nine-month interest rate swap
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivative instrument outstanding					$ 163,000,000
Other assets \| Cash Flow Hedges \| Designated as Hedging Instrument \| Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value	14,000,000		14,000,000			2,000,000
Other liabilities \| Cash Flow Hedges \| Designated as Hedging Instrument \| Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value	$ 0		$ 0
Other liabilities \| Maximum \| Cash Flow Hedges \| Designated as Hedging Instrument \| Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value						$ (1,000,000)
Senior Notes \| 9-7/8% Senior Notes due June 2019
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate, percentage	9.875%		9.875%
AFG
Derivative Instruments, Gain (Loss) [Line Items]
Interest rate description of fair value hedge activity			three-month LIBOR plus 8.099%
AFG \| Fair Value Hedge \| Designated as Hedging Instrument \| Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Effective interest rate, percentage	8.9493%		8.9493%			8.611%
The net reduction in interest expense from interest rate swaps	$ 1,000,000	$ 1,000,000	$ 3,000,000	$ 1,000,000
AFG \| Long-term debt \| Fair Value Hedge \| Designated as Hedging Instrument \| Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value	$ 6,000,000		$ 6,000,000			$ 2,000,000
AFG \| Senior Notes \| 9-7/8% Senior Notes due June 2019
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate, percentage	9.875%		9.875%			9.875%
AFG \| LIBOR \| Fair Value Hedge \| Designated as Hedging Instrument \| Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Basis spread on variable interest rate	8.099%		8.099%

Derivatives - Derivatives that

Derivatives - Derivatives that do not qualify for hedge accounting under GAAP included in the Balance Sheet at fair value (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	$ 570	$ 375
Derivative liability, at fair value	1,701	1,376
MBS with embedded derivatives \| Fixed maturities
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	120	130
Public company warrants \| Equity securities
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	3	4
Fixed-indexed annuities (embedded derivative) \| Annuity benefits accumulated
Derivatives included in AFG' s Balance Sheet at fair value
Derivative liability, at fair value	1,688	1,369
Equity index call options \| Other investments
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	447	241
Reinsurance contracts (embedded derivative) \| Other liabilities
Derivatives included in AFG' s Balance Sheet at fair value
Derivative liability, at fair value	$ 13	$ 7

Derivatives - Gain (loss) inclu

Derivatives - Gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	$ (7)	$ (40)	$ (113)	$ (48)
MBS with embedded derivatives \| Realized gains on securities
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	(4)	(4)	0	(7)
Public company warrants \| Realized gains on securities
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	1	0	0	0
Fixed-indexed annuities (embedded derivative) \| Annuity benefits
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	(109)	130	(188)	99
Equity index call options \| Annuity benefits
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	105	(167)	81	(144)
Reinsurance contracts (embedded derivative) \| Net investment income
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	$ 0	$ 1	$ (6)	$ 4

Deferred Policy Acquisition C57

Deferred Policy Acquisition Costs - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Deferred Policy Acquisition Costs Disclosures [Abstract]
Accumulated amortization of present value of future profits	$ 132	$ 125

Deferred Policy Acquisition C58

Deferred Policy Acquisition Costs - Progression of deferred policy acquisition costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
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	$ 881	$ 965	$ 1,184	$ 821
Deferred policy acquisition costs and present value of future profits, additions	181	215	583	567
Deferred policy acquisition costs and present value of future profits, periodic amortization	(185)	(177)	(519)	(537)
Deferred policy acquisition costs and present value of future profits, change included in realized gains	1	3	6	7
Deferred policy acquisition costs and present value of future profits, foreign currency translation	(1)	(2)	(2)	(2)
Deferred policy acquisition costs and present value of future profits, change in unrealized	(10)	(11)	(385)	137
Deferred policy acquisition costs and present value of future profits, ending balance	867	993	867	993
P&C
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Deferred policy acquisition costs, beginning balance	234	223	226	221
Deferred policy acquisition costs, additions	132	138	403	396
Deferred policy acquisition costs, periodic amortization	(134)	(132)	(396)	(388)
Deferred policy acquisition costs, foreign currency translation	(1)	(2)	(2)	(2)
Deferred policy acquisition costs, ending balance	231	227	231	227
Annuity and Run-off Long-term Care and Life
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Deferred policy acquisition costs, beginning balance	1,089	934	1,018	925
Deferred policy acquisition costs, additions	48	74	172	164
Deferred policy acquisition costs, periodic amortization	(42)	(36)	(99)	(120)
Deferred policy acquisition costs, change included in realized gains	1	3	5	6
Deferred policy acquisition costs, ending balance	1,096	975	1,096	975
Movement in Deferred Sales Inducements [Roll Forward]
Deferred sales inducements, beginning balance	116	123	119	132
Deferred sales inducements, additions	1	3	8	7
Deferred sales inducements, periodic amortization	(6)	(6)	(17)	(20)
Deferred sales inducements, change included in realized gains	0	0	1	1
Deferred sales inducements, ending balance	111	120	111	120
Movement in Present Value of Future Insurance Profits [Roll Forward]
Present value of future profits, beginning balance	51	68	55	74
Present value of future profits, periodic amortization	(3)	(3)	(7)	(9)
Present value of future profits, ending balance	48	65	48	65
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	(609)	(383)	(234)	(531)
Unrealized investment gains (losses), change in unrealized	(10)	(11)	(385)	137
Unrealized investment gains (losses), ending balance	(619)	(394)	(619)	(394)
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	647	742	958	600
Deferred policy acquisition costs and present value of future profits, additions	49	77	180	171
Deferred policy acquisition costs and present value of future profits, periodic amortization	(51)	(45)	(123)	(149)
Deferred policy acquisition costs and present value of future profits, change included in realized gains	1	3	6	7
Deferred policy acquisition costs and present value of future profits, change in unrealized	(10)	(11)	(385)	137
Deferred policy acquisition costs and present value of future profits, ending balance	636	766	636	766
Excluding Unrealized Gains \| Annuity and Run-off Long-term Care and Life
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	1,256	1,125	1,192	1,131
Deferred policy acquisition costs and present value of future profits, change in unrealized	0	0	0	0
Deferred policy acquisition costs and present value of future profits, ending balance	$ 1,255	$ 1,160	$ 1,255	$ 1,160

Managed Investment Entities - N

Managed Investment Entities - Narrative (Details) $ in Millions	1 Months Ended		9 Months Ended
	May 31, 2016USD ($)	May 31, 2015USD ($)	Sep. 30, 2016USD ($)collateralizedloanobligation	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
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			60.70%
Number of collateralized loan obligation entities \| collateralizedloanobligation			14
Face amount of managed investment entities liabilities purchased by subsidiaries after issuance date			$ 19
Amount paid by subsidiaries to purchase managed investment entities liabilities after issuance date			15
Proceeds received by subsidiaries related to sales and redemptions of managed investment entities liabilities			69	$ 1
Difference between aggregate unpaid principal balance and fair value of CLOs' fixed maturity investments			93		$ 214
Difference between aggregate unpaid principal balance and carrying value of CLOs' debt			159		205
Carrying amount of CLO loans in default			1		1
Aggregate unpaid principal balance of CLO loans in default			10		10
Variable interest entity, primary beneficiary
Variable Interest Entity [Line Items]
Aggregate fair value of investment in collateralized loan obligations			245		$ 266
New Collateralized Loan Obligation Entities
Variable Interest Entity [Line Items]
Face value of liabilities issued by managed investment entities on issuance date	$ 406	$ 511
Face amount of managed investment entities liabilities purchased by subsidiaries at issuance date	$ 36	$ 45
Subordinated Debt Obligations \| Variable interest entity, primary beneficiary
Variable Interest Entity [Line Items]
Aggregate fair value of investment in collateralized loan obligations			126
Subordinated Debt Obligations \| New collateralized loan obligation temporary warehousing entities
Variable Interest Entity [Line Items]
Aggregate fair value of investment in collateralized loan obligations			$ 40

Managed Investment Entities - S

Managed Investment Entities - Selected financial information related to CLOs (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Gains (losses) on change in fair value of assets/liabilities:
Assets	[1]	$ 60	$ (53)	$ 107	$ (27)
Liabilities	[1]	(49)	42	(98)	11
Management fees paid to AFG		4	4	12	11
CLO earnings (losses) attributable to AFG shareholders	[2]	$ 17	$ (3)	$ 29	$ 5

[1]	Included in revenues in AFG’s Statement of Earnings.
[2]	Included in earnings before income taxes in AFG’s Statement of Earnings.

Goodwill and Other Intangibles

Goodwill and Other Intangibles - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the goodwill balance during the period			$ 0
Goodwill	$ 199,000,000		199,000,000		$ 199,000,000
Amortizable intangible assets related to property and casualty insurance acquisitions	36,000,000		36,000,000		41,000,000
Accumulated amortization	23,000,000		23,000,000		$ 18,000,000
Amortization of intangible assets	$ 2,000,000	$ 2,000,000	$ 6,000,000	$ 6,000,000

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2016	Aug. 31, 2016	Dec. 31, 2015
Long-term Debt, Fiscal Year Maturity [Abstract]
Scheduled principal payments on debt in 2016	$ 18,000,000		$ 18,000,000
Scheduled principal payments on debt in 2017	0		0
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 in 2021	0		0
Scheduled principal payments on debt after 2021	958,000,000		958,000,000
Principal	1,326,000,000		1,326,000,000		$ 1,020,000,000
AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Revolving credit line term		5 years
Revolving credit line	500,000,000		500,000,000
Amount borrowed under 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
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate description for revolving credit facility			LIBOR plus 0.875% (currently 1.518%)
LIBOR \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	1.375%
LIBOR \| AFG \| Minimum
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	1.00%
LIBOR \| AFG \| Maximum
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	1.875%
Interest rate swaps \| Fair Value Hedge \| Designated as Hedging Instrument \| AFG
Debt Instrument [Line Items]
Effective interest rate, percentage	8.9493%		8.9493%		8.611%
Interest rate swaps \| Fair Value Hedge \| Designated as Hedging Instrument \| LIBOR \| AFG
Debt Instrument [Line Items]
Basis spread on variable interest rate	8.099%		8.099%
Long-term debt \| Interest rate swaps \| Fair Value Hedge \| Designated as Hedging Instrument \| AFG
Debt Instrument [Line Items]
Net derivatives, at fair value	$ 6,000,000		$ 6,000,000		$ 2,000,000
Senior Notes \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Principal	$ 1,008,000,000		$ 1,008,000,000		708,000,000
Senior Notes \| 9-7/8% Senior Notes due June 2019
Long-term Debt, Fiscal Year Maturity [Abstract]
Stated interest rate, percentage	9.875%		9.875%
Senior Notes \| 9-7/8% Senior Notes due June 2019 \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Principal	$ 350,000,000		$ 350,000,000		$ 350,000,000
Stated interest rate, percentage	9.875%		9.875%		9.875%
Senior Notes \| 3-1/2% Senior Notes due August 2026 \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Senior Notes, aggregate principal amount				$ 300,000,000
Senior Notes, issuance price as a percentage of par value				99.608%
Principal	$ 300,000,000		$ 300,000,000		$ 0
Stated interest rate, percentage	3.50%		3.50%	3.50%
Senior Notes \| 6-3/8% Senior Notes due June 2042 \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Principal	$ 230,000,000		$ 230,000,000		230,000,000
Stated interest rate, percentage	6.375%		6.375%
Senior Notes \| 5-3/4% Senior Notes due August 2042 \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Principal	$ 125,000,000		$ 125,000,000		125,000,000
Stated interest rate, percentage	5.75%		5.75%
Subordinated Debt \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Principal	$ 300,000,000		$ 300,000,000		300,000,000
Subordinated Debt \| 6-1/4% Subordinated Debentures due September 2054 \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Principal	$ 150,000,000		$ 150,000,000		150,000,000
Stated interest rate, percentage	6.25%		6.25%
Subordinated Debt \| 6% Subordinated Debentures due November 2055 \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Principal	$ 150,000,000		$ 150,000,000		150,000,000
Stated interest rate, percentage	6.00%		6.00%
Revolving Credit Facility \| National Interstate
Long-term Debt, Fiscal Year Maturity [Abstract]
Revolving credit line	$ 100,000,000		$ 100,000,000
Principal	18,000,000		18,000,000		$ 12,000,000
Revolving Credit Facility \| Line of Credit \| National Interstate
Long-term Debt, Fiscal Year Maturity [Abstract]
Principal	$ 6,000,000		$ 6,000,000

Long-Term Debt - Schedule of lo

Long-Term Debt - Schedule of long-term debt (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Summary of Carrying value of long-term debt
Principal	$ 1,326	$ 1,020
Discount and Issue Costs	(26)	(22)
Carrying Value	1,300	998
Senior Notes \| AFG
Summary of Carrying value of long-term debt
Principal	1,008	708
Discount and Issue Costs	(16)	(12)
Carrying Value	992	696
Senior Notes \| 9-7/8% Senior Notes due June 2019 \| AFG
Summary of Carrying value of long-term debt
Principal	350	350
Discount and Issue Costs	(1)	(1)
Carrying Value	349	349
Senior Notes \| 3-1/2% Senior Notes due August 2026 \| AFG
Summary of Carrying value of long-term debt
Principal	300	0
Discount and Issue Costs	(4)	0
Carrying Value	296	0
Senior Notes \| 6-3/8% Senior Notes due June 2042 \| AFG
Summary of Carrying value of long-term debt
Principal	230	230
Discount and Issue Costs	(7)	(7)
Carrying Value	223	223
Senior Notes \| 5-3/4% Senior Notes due August 2042 \| AFG
Summary of Carrying value of long-term debt
Principal	125	125
Discount and Issue Costs	(4)	(4)
Carrying Value	121	121
Senior Notes \| Other \| AFG
Summary of Carrying value of long-term debt
Principal	3	3
Discount and Issue Costs	0	0
Carrying Value	3	3
Subordinated Debentures \| AFG
Summary of Carrying value of long-term debt
Principal	300	300
Discount and Issue Costs	(10)	(10)
Carrying Value	290	290
Subordinated Debentures \| 6-1/4% Subordinated Debentures due September 2054 \| AFG
Summary of Carrying value of long-term debt
Principal	150	150
Discount and Issue Costs	(5)	(5)
Carrying Value	145	145
Subordinated Debentures \| 6% Subordinated Debentures due November 2055 \| AFG
Summary of Carrying value of long-term debt
Principal	150	150
Discount and Issue Costs	(5)	(5)
Carrying Value	145	145
Revolving Credit Facility \| National Interstate
Summary of Carrying value of long-term debt
Principal	18	12
Discount and Issue Costs	0	0
Carrying Value	$ 18	$ 12

Long-Term Debt - Unsecured long

Long-Term Debt - Unsecured long-term debt obligations (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term debt	$ 1,326	$ 1,020
Senior unsecured obligations
Debt Instrument [Line Items]
Long-term debt	1,026	720
Subordinated unsecured obligations
Debt Instrument [Line Items]
Long-term debt	$ 300	$ 300

Shareholders' Equity - Preferre

Shareholders' Equity - Preferred stock authorized for issuance (Details)	Sep. 30, 2016$ / sharesshares
Voting Preferred Stock
Class of Stock [Line Items]
Preferred Stock, par value \| $ / shares	$ 0
Preferred Stock, shares authorized \| shares	12,500,000
Nonvoting Preferred Stock
Class of Stock [Line Items]
Preferred Stock, par value \| $ / shares	$ 0
Preferred Stock, shares authorized \| shares	12,500,000

Shareholders' Equity - Narrativ

Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net of tax unrealized gains (losses) related to credit-only impaired securities	$ 51			$ 51		$ 48	$ 51
Compensation expense related to stock incentive plans	$ 7		$ 5	$ 21	$ 18
Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Common Stock, shares issued (shares)				318,940
Restricted Common Stock, fair value per share (USD per share)				$ 67
Common Stock options issued under stock incentive plan (shares)				0
Annual Equity Bonus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other benefit plans, shares issued (shares)		40,336
Common Stock issued, fair value per share (USD per share)		$ 71.05

Shareholders' Equity - Progress

Shareholders' Equity - Progression of the components of accumulated other comprehensive income (Details) - USD ($) $ in Millions		3 Months Ended			9 Months Ended
		Sep. 30, 2016		Sep. 30, 2015	Sep. 30, 2016		Sep. 30, 2015
Accumulated Other Comprehensive Income [Roll Forward]
AOCI beginning balance					$ 304
Other comprehensive income (loss), net of tax		$ 85		$ (104)	456		$ (270)
AOCI ending balance		753			753
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss), unrealized holding gains on securities arising during the period, Pretax		138		(171)	656		(394)
Other comprehensive income (loss), unrealized holding gains on securities arising during the period, tax		(49)		61	(229)		139
Other comprehensive income (loss), unrealized holding gains on securities arising during the period, net of tax		89		(110)	427		(255)
Reclassification from accumulated other comprehensive income, pretax	[1]	(2)		16	32		(4)
Reclassification from accumulated other comprehensive income, tax	[1]	1		(6)	(12)		1
Reclassification from accumulated other comprehensive income, net of tax		(1)		10	20		(3)
Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss), pretax		136		(155)	688		(398)
Other comprehensive income (loss), tax		(48)		55	(241)		140
Other comprehensive income (loss), net of tax		88		(100)	447		(258)
Accumulated Net Investment Gain (Loss) Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss), unrealized holding gains on securities arising during the period, net of tax		(1)		3	(6)		5
Reclassification from accumulated other comprehensive income, net of tax	[1]	0		(1)	(1)		(1)
Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss), net of tax		(1)		2	(7)		4
Accumulated Net Investment Gain (Loss) Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss), unrealized holding gains on securities arising during the period, net of tax		88		(107)	421		(250)
Reclassification from accumulated other comprehensive income, net of tax		(1)		9	19		(4)
Accumulated Other Comprehensive Income [Roll Forward]
AOCI beginning balance		685	[2]	587	332	[2]	743
Other comprehensive income (loss), net of tax		87		(98)	440		(254)
AOCI ending balance		772	[2]	489	772	[2]	489
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss), pretax		(1)		3	6		3
Other comprehensive income (loss), tax		1		(1)	(2)		(1)
Other comprehensive income (loss), net of tax		0		2	4		2
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss), net of tax		0		0	0		0
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent
Accumulated Other Comprehensive Income [Roll Forward]
AOCI beginning balance		5		0	1		0
Other comprehensive income (loss), net of tax		0		2	4		2
AOCI ending balance		5		2	5		2
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss), pretax		(2)		(5)	2		(11)
Other comprehensive income (loss), tax		(1)		(2)	2		(4)
Other comprehensive income (loss), net of tax		(3)		(7)	4		(15)
Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss), net of tax		0		0	0		0
Accumulated Foreign Currency Adjustment Attributable to Parent
Accumulated Other Comprehensive Income [Roll Forward]
AOCI beginning balance		(15)		(16)	(22)		(8)
Other comprehensive income (loss), net of tax		(3)		(7)	4		(15)
AOCI ending balance		(18)		(23)	(18)		(23)
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss), pretax		0		1	1		1
Other comprehensive income (loss), tax		0		0	0		0
Other comprehensive income (loss), net of tax		0		1	1		1
Accumulated Defined Benefit Plans Adjustment Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss), net of tax		0		0	0		0
Accumulated Defined Benefit Plans Adjustment Attributable to Parent
Accumulated Other Comprehensive Income [Roll Forward]
AOCI beginning balance		(6)		(8)	(7)		(8)
Other comprehensive income (loss), net of tax		0		1	1		1
AOCI ending balance		(6)		(7)	(6)		(7)
AOCI Including Portion Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss), pretax		133		(156)	697		(405)
Other comprehensive income (loss), tax		(48)		52	(241)		135
Other comprehensive income (loss), net of tax		85		(104)	456		(270)
AOCI Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income [Roll Forward]
Other comprehensive income (loss), net of tax		(1)		2	(7)		4
AOCI Attributable to Parent
Accumulated Other Comprehensive Income [Roll Forward]
AOCI beginning balance		669		563	304		727
Other comprehensive income (loss), net of tax		84		(102)	449		(266)
AOCI ending balance		$ 753		$ 461	$ 753		$ 461

[1]	The reclassification adjustment out of net unrealized gains on securities affected the following lines in AFG’s Statement of Earnings: OCI component Affected line in the 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 $51 million at September 30, 2016 compared to $48 million at June 30, 2016 and $51 million at December 31, 2015 related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Statutory rate of income taxes	35.00%	35.00%	35.00%	35.00%
Special charges related to the exit of certain lines of business within subsidiaries			$ 65
Effective tax rate excluding the charge related to the exit of certain lines of business within subsidiaries			36.00%

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of income taxes at the statutory rate to the provision for income taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Earnings before income taxes (“EBT”)	$ 178	$ 99	$ 470	$ 355
Income taxes at statutory rate	63	34	165	124
Effect of tax exempt interest	(5)	(6)	(18)	(20)
Effect of change in valuation allowance	7	8	40	8
Effect of subsidiaries not in AFG's tax return	2	0	4	2
Effect of other income tax reconciliation	(2)	(3)	(1)	1
Provision for income taxes as shown on the Statement of Earnings	$ 65	$ 33	$ 190	$ 115
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%)	(6.00%)	(4.00%)	(6.00%)
Effect of change in valuation allowance as a percentage of EBT	4.00%	8.00%	9.00%	2.00%
Effect of subsidiaries not in AFG's tax return as a percentage of EBT	1.00%	0.00%	1.00%	1.00%
Effect of other income tax reconciliation as a percentage of EBT	0.00%	(4.00%)	(1.00%)	0.00%
Provision for income taxes as shown on the Statement of Earnings as a percentage of EBT	37.00%	33.00%	40.00%	32.00%