Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 01, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-13653 | ||
Entity Registrant Name | AMERICAN FINANCIAL GROUP, INC. | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 31-1544320 | ||
Entity Central Index Key | 0001042046 | ||
Entity Address, Address Line One | 301 East Fourth Street | ||
Entity Address, City or Town | Cincinnati | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45202 | ||
City Area Code | 513 | ||
Local Phone Number | 579-2121 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8,310 | ||
Entity Common Stock, Shares Outstanding | 90,339,433 | ||
Entity Common Stock, Shares Outstanding Owned by Subsidiaries | 14,900,000 | ||
Common stocks | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | AFG | ||
Security Exchange Name | NYSE | ||
6% Subordinated Debentures due November 2055 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 6% Subordinated Debentures due November 15, 2055 | ||
Trading Symbol | AFGH | ||
Security Exchange Name | NYSE | ||
5.875% Subordinated Debentures due March 2059 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 5.875% Subordinated Debentures due March 30, 2059 | ||
Trading Symbol | AFGB | ||
Security Exchange Name | NYSE | ||
5.125% Subordinated Debentures due December 2059 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 5.125% Subordinated Debentures due December 15, 2059 | ||
Trading Symbol | AFGC | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 2,314 | $ 1,515 |
Investments: | ||
Fixed maturities, available for sale at fair value (amortized cost — $44,524 and $41,837) | 46,505 | 41,997 |
Fixed maturities, trading at fair value | 113 | 105 |
Equity securities, at fair value | 1,937 | 1,814 |
Investments accounted for using the equity method | 1,688 | 1,374 |
Mortgage loans | 1,329 | 1,068 |
Policy loans | 164 | 174 |
Equity index call options | 924 | 184 |
Real estate and other investments | 278 | 267 |
Total cash and investments | 55,252 | 48,498 |
Recoverables from reinsurers | 3,415 | 3,349 |
Prepaid reinsurance premiums | 678 | 610 |
Agents’ balances and premiums receivable | 1,335 | 1,234 |
Deferred policy acquisition costs | 1,037 | 1,682 |
Assets of managed investment entities | 4,736 | 4,700 |
Other receivables | 975 | 1,090 |
Variable annuity assets (separate accounts) | 628 | 557 |
Other assets | 1,867 | 1,529 |
Goodwill | 207 | 207 |
Total assets | 70,130 | 63,456 |
Liabilities and Equity: | ||
Unpaid losses and loss adjustment expenses | 10,232 | 9,741 |
Unearned premiums | 2,830 | 2,595 |
Annuity benefits accumulated | 40,406 | 36,616 |
Life, accident and health reserves | 612 | 635 |
Payable to reinsurers | 814 | 752 |
Liabilities of managed investment entities | 4,571 | 4,512 |
Long-term debt | 1,473 | 1,302 |
Variable annuity liabilities (separate accounts) | 628 | 557 |
Other liabilities | 2,295 | 1,774 |
Total liabilities | 63,861 | 58,484 |
Redeemable noncontrolling interests | 0 | 0 |
Shareholders’ equity: | ||
Common Stock, no par value — 200,000,000 shares authorized — 90,303,686 and 89,291,724 shares outstanding | 90 | 89 |
Capital surplus | 1,307 | 1,245 |
Retained earnings | 4,009 | 3,588 |
Accumulated other comprehensive income, net of tax | 863 | 48 |
Total shareholders’ equity | 6,269 | 4,970 |
Noncontrolling interests | 0 | 2 |
Total equity | 6,269 | 4,972 |
Total liabilities and equity | $ 70,130 | $ 63,456 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale at amortized cost | $ 44,524 | $ 41,837 |
Common Stock, par value (USD per share) | $ 0 | $ 0 |
Common Stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, shares outstanding | 90,303,686 | 89,291,724 |
Consolidated Statement of Earni
Consolidated Statement of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Property and casualty insurance net earned premiums | $ 5,185 | $ 4,865 | $ 4,579 |
Life, accident and health net earned premiums | 22 | 24 | 22 |
Net investment income | 2,303 | 2,094 | 1,831 |
Realized gains (losses) on: | |||
Securities | 287 | (266) | 5 |
Income (loss) of managed investment entities: | |||
Investment income | 269 | 255 | 210 |
Gain (loss) on change in fair value of assets/liabilities | (30) | (21) | 12 |
Other income | 201 | 199 | 206 |
Total revenues | 8,237 | 7,150 | 6,865 |
Costs and Expenses: | |||
Property and casualty insurance: Losses and loss adjustment expenses | 3,271 | 3,003 | 2,955 |
Property and casualty insurance: Commissions and other underwriting expenses | 1,725 | 1,583 | 1,407 |
Annuity benefits | 1,151 | 998 | 892 |
Life, accident and health benefits | 36 | 40 | 26 |
Annuity and supplemental insurance acquisition expenses | 253 | 261 | 173 |
Interest charges on borrowed money | 68 | 62 | 85 |
Expenses of managed investment entities | 220 | 211 | 181 |
Other expenses | 405 | 353 | 422 |
Total costs and expenses | 7,129 | 6,511 | 6,141 |
Earnings before income taxes | 1,108 | 639 | 724 |
Provision for income taxes | 239 | 122 | 247 |
Net earnings, including noncontrolling interests | 869 | 517 | 477 |
Less: Net earnings (losses) attributable to noncontrolling interests | (28) | (13) | 2 |
Net Earnings Attributable to Shareholders | $ 897 | $ 530 | $ 475 |
Earnings Attributable to Shareholders per Common Share: | |||
Basic (USD per share) | $ 9.98 | $ 5.95 | $ 5.40 |
Diluted (USD per share) | $ 9.85 | $ 5.85 | $ 5.28 |
Average number of Common Shares: | |||
Basic (shares) | 89.9 | 89 | 87.8 |
Diluted (shares) | 91 | 90.6 | 89.8 |
Supplemental disclosure of Realized gains (losses) on securities: | |||
Realized gains (losses) before impairments | $ 306 | $ (247) | $ 78 |
Losses on securities with impairment | (19) | (19) | (74) |
Non-credit portion recognized in other comprehensive income (loss) | 0 | 0 | 1 |
Impairment charges recognized in earnings | (19) | (19) | (73) |
Total realized gains (losses) on securities | $ 287 | $ (266) | $ 5 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings, including noncontrolling interests | $ 869 | $ 517 | $ 477 |
Net unrealized gains (losses) on securities: | |||
Unrealized holding gains (losses) on securities arising during the period | 788 | (544) | 297 |
Reclassification adjustment for realized (gains) losses included in net earnings | (9) | 8 | (10) |
Total net unrealized gains (losses) on securities | 779 | (536) | 287 |
Net unrealized gains (losses) on cash flow hedges | 28 | 2 | (4) |
Foreign currency translation adjustments | 7 | (10) | 12 |
Pension and other postretirement plans adjustments | 1 | 0 | 1 |
Other comprehensive income (loss), net of tax | 815 | (544) | 296 |
Total comprehensive income (loss), net of tax | 1,684 | (27) | 773 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (28) | (13) | 2 |
Comprehensive income (loss) attributable to shareholders | $ 1,712 | $ (14) | $ 771 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Total | Common Shares | Common Stock and Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Inc. (Loss) | Noncontrolling Interests | Redeemable noncontrolling interests |
Beginning Balance, shares at Dec. 31, 2016 | 86,924,399 | |||||||
Beginning Balance at Dec. 31, 2016 | $ 4,919 | $ 4,916 | $ 1,198 | $ 3,343 | $ 375 | $ 3 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) attributable to parent | 475 | 475 | 475 | |||||
Net income (loss), including portion attributable to nonredeemable noncontrolling interest | 477 | 2 | ||||||
Other comprehensive income (loss) | 296 | 296 | 296 | 0 | ||||
Impact of the U.S. corporate tax rate change on AOCI | 0 | 0 | (145) | 145 | 0 | |||
Dividends | (421) | (421) | (421) | |||||
Shares issued: | ||||||||
Exercise of stock options, shares | 1,020,986 | |||||||
Exercise of stock options | 34 | 34 | 34 | |||||
Restricted stock awards, shares | 232,250 | |||||||
Restricted stock awards | 0 | 0 | 0 | |||||
Other benefit plans, shares | 99,588 | |||||||
Other benefit plans | 10 | 10 | 10 | |||||
Dividend reinvestment plan, shares | 42,572 | |||||||
Dividend reinvestment plan | 4 | 4 | 4 | |||||
Stock-based compensation: Expense | 24 | 24 | 24 | |||||
Shares exchanged — benefit plans, shares | (37,718) | |||||||
Shares exchanged — benefit plans | (5) | (5) | (1) | (4) | ||||
Forfeitures of restricted stock, shares | (6,617) | |||||||
Forfeitures of restricted stock | 0 | 0 | 0 | |||||
Sale of redeemable noncontrolling interests | (3) | (3) | (3) | $ 3 | ||||
Other | (4) | 0 | (4) | |||||
Ending Balance, shares at Dec. 31, 2017 | 88,275,460 | |||||||
Ending Balance at Dec. 31, 2017 | 5,331 | 5,330 | 1,269 | 3,248 | 813 | 1 | ||
Beginning Balance, Redeemable Noncontrolling Interests at Dec. 31, 2016 | 0 | |||||||
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | ||||||||
Sale of redeemable noncontrolling interests | (3) | (3) | (3) | $ 3 | ||||
Other | 0 | |||||||
Ending Balance, Redeemable Noncontrolling Interests at Dec. 31, 2017 | 3 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) attributable to parent | 530 | 530 | 530 | |||||
Net income (loss), including portion attributable to nonredeemable noncontrolling interest | 531 | 1 | ||||||
Other comprehensive income (loss) | (544) | (544) | (544) | 0 | ||||
Dividends | (397) | (397) | (397) | |||||
Shares issued: | ||||||||
Exercise of stock options, shares | 778,270 | |||||||
Exercise of stock options | 29 | 29 | 29 | |||||
Restricted stock awards, shares | 200,625 | |||||||
Restricted stock awards | 0 | 0 | 0 | |||||
Other benefit plans, shares | 103,797 | |||||||
Other benefit plans | 12 | 12 | 12 | |||||
Dividend reinvestment plan, shares | 29,998 | |||||||
Dividend reinvestment plan | 3 | 3 | 3 | |||||
Stock-based compensation: Expense | 23 | 23 | 23 | |||||
Shares acquired and retired, shares | (65,589) | |||||||
Shares acquired and retired | (6) | (6) | (1) | (5) | ||||
Shares exchanged — benefit plans, shares | (26,520) | |||||||
Shares exchanged — benefit plans | (3) | (3) | (1) | (2) | ||||
Forfeitures of restricted stock, shares | (4,317) | |||||||
Forfeitures of restricted stock | 0 | 0 | 0 | |||||
Other | $ (11) | (11) | (11) | 0 | 0 | |||
Ending Balance, shares at Dec. 31, 2018 | 89,291,724 | 89,291,724 | ||||||
Ending Balance at Dec. 31, 2018 | $ 4,972 | 4,970 | 1,334 | 3,588 | 48 | 2 | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | ||||||||
Net income (loss) attributable to redeemable noncontrolling interest | (14) | |||||||
Other | 11 | |||||||
Ending Balance, Redeemable Noncontrolling Interests at Dec. 31, 2018 | 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) attributable to parent | 897 | 897 | 897 | |||||
Net income (loss), including portion attributable to nonredeemable noncontrolling interest | 895 | (2) | ||||||
Other comprehensive income (loss) | 815 | 815 | 815 | 0 | ||||
Dividends | $ (446) | (446) | (446) | |||||
Shares issued: | ||||||||
Exercise of stock options, shares | 747,167 | 747,167 | ||||||
Exercise of stock options | $ 31 | 31 | 31 | |||||
Restricted stock awards, shares | 232,635 | |||||||
Restricted stock awards | 0 | 0 | 0 | |||||
Other benefit plans, shares | 77,429 | |||||||
Other benefit plans | 8 | 8 | 8 | |||||
Dividend reinvestment plan, shares | 19,334 | |||||||
Dividend reinvestment plan | 2 | 2 | 2 | |||||
Stock-based compensation: Expense | 23 | 23 | 23 | |||||
Shares exchanged — benefit plans, shares | (50,062) | |||||||
Shares exchanged — benefit plans | (5) | (5) | (1) | (4) | ||||
Forfeitures of restricted stock, shares | (14,541) | |||||||
Forfeitures of restricted stock | 0 | 0 | 0 | |||||
Other | $ (26) | (26) | (26) | 0 | ||||
Ending Balance, shares at Dec. 31, 2019 | 90,303,686 | 90,303,686 | ||||||
Ending Balance at Dec. 31, 2019 | $ 6,269 | $ 6,269 | $ 1,397 | $ 4,009 | 863 | $ 0 | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | ||||||||
Net income (loss) attributable to redeemable noncontrolling interest | (26) | |||||||
Other | 26 | |||||||
Ending Balance, Redeemable Noncontrolling Interests at Dec. 31, 2019 | $ 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of accounting change | $ 0 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per Common Share (USD per share) | $ 4.95 | $ 4.45 | $ 4.7875 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities: | |||
Net earnings, including noncontrolling interests | $ 869 | $ 517 | $ 477 |
Adjustments: | |||
Depreciation and amortization | 259 | 210 | 107 |
Annuity benefits | 1,151 | 998 | 892 |
Realized (gains) losses on investing activities | (288) | 265 | (23) |
Net (purchases) sales of trading securities | (5) | 111 | 17 |
Deferred annuity and life policy acquisition costs | (206) | (263) | (225) |
Change in: | |||
Reinsurance and other receivables | (112) | (211) | (963) |
Other assets | (406) | 96 | 13 |
Insurance claims and reserves | 703 | 425 | 1,321 |
Payable to reinsurers | 62 | 9 | 109 |
Other liabilities | 516 | (140) | (18) |
Managed investment entities’ assets/liabilities | 23 | 148 | 60 |
Other operating activities, net | (110) | (82) | 37 |
Net cash provided by operating activities | 2,456 | 2,083 | 1,804 |
Investing Activities: | |||
Purchases of fixed maturities | (8,260) | (10,183) | (9,485) |
Purchases of equity securities | (242) | (568) | (182) |
Purchases of mortgage loans | (442) | (167) | (254) |
Purchases of equity index call options and other investments | (991) | (973) | (831) |
Purchases of real estate, property and equipment | (44) | (80) | (109) |
Purchases of businesses | 0 | (36) | 0 |
Proceeds from maturities and redemptions of fixed maturities | 4,567 | 4,948 | 6,105 |
Proceeds from repayments of mortgage loans | 184 | 201 | 215 |
Proceeds from sales of fixed maturities | 927 | 501 | 392 |
Proceeds from sales of equity securities | 453 | 247 | 216 |
Proceeds from sales and settlements of equity index call options and other investments | 771 | 883 | 789 |
Proceeds from sales of real estate, property and equipment | 4 | 3 | 55 |
Cash and cash equivalents of businesses acquired | 0 | 13 | 0 |
Managed investment entities: | |||
Purchases of investments | (1,398) | (2,117) | (2,979) |
Proceeds from sales and redemptions of investments | 1,409 | 1,948 | 2,774 |
Other investing activities, net | (3) | 30 | 2 |
Net cash used in investing activities | (3,065) | (5,350) | (3,292) |
Financing Activities: | |||
Annuity receipts | 4,960 | 5,632 | 4,341 |
Annuity surrenders, benefits and withdrawals | (3,358) | (2,916) | (2,405) |
Net transfers from variable annuity assets | 60 | 47 | 54 |
Additional long-term borrowings | 315 | 0 | 712 |
Reductions of long-term debt | (150) | 0 | (745) |
Issuances of managed investment entities’ liabilities | 371 | 1,983 | 2,731 |
Retirements of managed investment entities’ liabilities | (382) | (1,935) | (2,585) |
Issuances of Common Stock | 36 | 33 | 37 |
Repurchases of Common Stock | 0 | (6) | 0 |
Cash dividends paid on Common Stock | (444) | (394) | (417) |
Other financing activities, net | 0 | 0 | (4) |
Net cash provided by (used in) financing activities | 1,408 | 2,444 | 1,719 |
Net Change in Cash and Cash Equivalents | 799 | (823) | 231 |
Cash and cash equivalents at beginning of year | 1,515 | 2,338 | 2,107 |
Cash and cash equivalents at end of year | $ 2,314 | $ 1,515 | $ 2,338 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of American Financial Group, Inc. and its subsidiaries (“AFG”). Certain reclassifications have been made to prior years 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 December 31, 2019 , and prior to the filing of this Form 10-K, have been evaluated for potential recognition or disclosure herein. The preparation of the financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) 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. On January 1, 2018, AFG adopted Accounting Standards Update (“ASU”) 2014-09, which provides guidance on recognizing revenue when (or as) performance obligations under the contract are satisfied. The guidance also updates the accounting for certain costs associated with obtaining and fulfilling contracts with customers and requires certain new disclosures. Because revenue recognition for insurance contracts and financial instruments (AFG’s primary sources of revenue) were excluded from the scope of the new guidance, the adoption of ASU 2014-09 did not have a material impact on AFG’s results of operations or financial position. 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 material nonrecurring fair value measurements in 2019 or 2018 . Investments On January 1, 2018, AFG adopted ASU 2016-01, which requires all equity securities other than those accounted for under the equity method to be reported at fair value with holding gains and losses recognized in net earnings. At December 31, 2017, AFG had $1.60 billion in equity securities classified as “available for sale” under the prior guidance with holding gains and losses included in accumulated other comprehensive income (“AOCI”) instead of net earnings. At the date of adoption, the $221 million net unrealized gain on equity securities included in AOCI was reclassified to retained earnings as the cumulative effect of an accounting change. The cumulative effect of the accounting change also includes the net unrealized gain on AFG’s small number of limited partnerships and similar investments carried at cost under the prior guidance that are carried at fair value through net earnings under the new guidance ( $4 million net of tax at the date of adoption). Following the adoption of ASU 2016-01, holding gains and losses on equity securities carried at fair value are generally recorded in realized gains (losses) on securities. However, AFG records holding gains and losses on securities classified as “trading” under previous guidance, its small portfolio of limited partnerships and similar investments carried at fair value and certain other securities classified at purchase as “fair value through net investment income” in net investment income. Under the new guidance, AFG recorded holding gains of $207 million on equity securities in net earnings during 2019 on securities still held at December 31, 2019 and holding losses of $257 million on equity securities in net earnings during 2018 on securities that were still owned at December 31, 2018 . Under the prior guidance, these holding losses would have been recorded in AOCI until the securities were disposed (with exception of any impairment charge that may have been recorded). Because almost all of the equity securities impacted by the new guidance were carried at fair value through AOCI under the prior guidance, the adoption of the new guidance did not have a material impact on AFG’s financial position. Fixed maturity securities classified as “available for sale” are reported at fair value with unrealized gains and losses included in AOCI in AFG’s Balance Sheet. Fixed maturity securities classified as “trading” are reported at fair value with changes in unrealized holding gains or losses during the period included in net investment income. Mortgage and policy loans are carried primarily at the aggregate unpaid balance. Premiums and discounts on fixed maturity securities are amortized using the effective 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. Limited partnerships and similar investments are generally accounted for using the equity method of accounting. Under the equity method, AFG records its share of the earnings or losses of the investee based on when they are reported by the investee in its financial statements rather than in the period in which the investee declares a dividend. AFG’s share of the earnings or losses from equity method investments is generally recorded on a quarter lag due to the timing of the receipt of the investee’s financial statements. AFG’s equity in the earnings (losses) of limited partnerships and similar investments is included in net investment income. Gains or losses on fixed maturity securities classified as “available for sale” 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 and principal-only MBS) and (ii) the equity-based component of certain annuity products (included in annuity benefits accumulated) and related equity index options 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. 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. 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 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 these 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. 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. 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. AFG has 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 are measured by the change in the fair value of AFG’s investments in the CLOs and management fees earned. 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 annuity benefits expense and decreases for annuity policy charges are recorded in other income. For traditional fixed annuities, the liability for annuity benefits accumulated represents the account value that had accrued to the benefit of the policyholder as of the balance sheet date. For fixed-indexed annuities (“FIAs”), the liability for annuity benefits accumulated includes an embedded derivative that represents the estimated fair value of the index participation with the remaining component representing the discounted value of the guaranteed minimum contract benefits. 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 (losses) 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 presented in its Balance Sheet as a direct reduction in the carrying value of long-term debt and are amortized over the life of the related debt using the effective interest method as a component of interest expense. Debt issuance costs related to AFG’s revolving credit facilities are included in other assets in AFG’s Balance Sheet. Variable Annuity Assets and Liabilities Separate accounts related to variable annuities represent the fair value of deposits invested in underlying investment funds on which AFG earns a fee. Investment funds are selected and may be changed only by the policyholder, who retains all investment risk. AFG’s variable annuity contracts contain a guaranteed minimum death benefit (“GMDB”) to be paid if the policyholder dies before the annuity payout period commences. In periods of declining equity markets, the GMDB may exceed the value of the policyholder’s account. A GMDB liability is established for future excess death benefits using assumptions together with a range of reasonably possible scenarios for investment fund performance that are consistent with DPAC capitalization and amortization assumptions. Leases On January 1, 2019, AFG adopted ASU 2016-02, which requires entities that lease assets for terms longer than one year to recognize assets and liabilities for the rights and obligations created by those leases on the balance sheet based on the present value of contractual cash flows. As permitted under the ASU, AFG adopted the guidance on a modified retrospective basis (comparative periods were not adjusted) and elected the following accounting policies and practical expedients: • exclude leases with a term of 12 months or less from the calculation of lease assets and liabilities, • not separate lease and non-lease components except for buildings (office space and storage facilities), • for contracts existing at the date of adoption – not reassess whether a contract is a lease or contains a lease, how initial direct costs were accounted for or whether the lease is an operating or finance lease, and • use hindsight to determine the lease term for leases existing at the date of adoption. Adoption of the new guidance resulted in AFG recognizing a lease liability of $198 million (included in other liabilities) and a corresponding right-of-use asset of $174 million (included in other assets and presented net of $24 million in deferred rent and lease incentives) on January 1, 2019. Deferred rent and lease incentives were recognized as liabilities under the previous guidance and result from the straight-line expensing of operating leases. The adoption of the new guidance did not have a material effect on the AFG’s results of operations or liquidity. See Note K — “ Leases ” for additional disclosures. Noncontrolling Interests For balance sheet purposes, noncontrolling interests represent 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. Noncontrolling interests that are redeemable at the option of the holder are presented separately in the mezzanine section of the balance sheet (between liabilities and equity). 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. 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. The effect of a change in tax rates on deferred tax assets and liabilities is recorded in net earnings in the period that includes the enactment date. This includes the impact on deferred tax assets or liabilities established through AOCI, which results in an amount equal to the difference between the deferred tax at the historical corporate rate and the newly enacted rate stranded in AOCI. As permitted under guidance adopted effective December 31, 2017 (ASU 2018-02), AFG reclassified the $145 million stranded in AOCI from accounting for the Tax Cuts and Jobs Act of 2017 to retained earnings at December 31, 2017. See Note M — “ Income Taxes ” for further information. 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. AFG records excess tax benefits or deficiencies for share-based payments through income tax expense in the statement of earnings. In addition, AFG accounts for forfeitures of awards when they occur. 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: 2019 – 1.1 million , 2018 – 1.6 million and 2017 – 2.0 million . There were no anti-dilutive potential common shares related to stock compensation plans or adjustments to net earnings attributable to shareholders in the calculation of diluted earnings per share for the years ended December 31, 2019 , 2018 or 2017 . 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, property and equipment and businesses. “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. Credit Impairment Guidance Effective in 2020 In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments , which provides a new loss model for determining credit-related impairments for financial instruments measured at amortized cost (mortgage loans, premiums receivable and reinsurance recoverables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses considers historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. Expected credit losses, and subsequent increases or decreases in such expected losses, will be recorded immediately through net earnings as an allowance that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the balance sheet at the amount expected to be collected. The updated guidance also amends the current other-than-temporary impairment model for available for sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. Subsequent increases or decreases in expected credit losses will be recorded immediately in net earnings through realized gains (losses). AFG will adopt this guidance effective January 1, 2020. The new guidance is not expected to have a material impact on AFG’s results of operations or financial position. |
Acquisitions and Sale of Busine
Acquisitions and Sale of Businesses | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Sale of Businesses | Acquisitions and Sale of Businesses Atlas Financial Holdings, Inc. In June 2019, National Interstate, a property and casualty insurance subsidiary of AFG, entered into an agreement with Atlas Financial Holdings, Inc. (“AFH”) to become the exclusive underwriter of AFH’s paratransit book of business. National Interstate estimates that the majority of AFH’s $110 million paratransit business will be eligible for quotation under this arrangement over the first 12 months following inception of the agreement. Under the terms of the agreement, AFH will act as an underwriting manager for National Interstate for at least 12 months, after which time National Interstate is entitled to acquire the renewal rights for the business from AFH for a purchase price equal to 15% of the in force gross written premiums at that date. The majority of the purchase price ultimately paid for the renewal rights will be recorded as an intangible renewal rights asset and will be amortized over the estimated life of the business acquired. In connection with the transaction, AFG was granted a five-year warrant to acquire approximately 2.4 million shares of AFH ( 19.9% at the acquisition date). The estimated fair value of the warrant was approximately $1 million at the date it was received. ABA Insurance Services Inc. In November 2018, AFG acquired ABA Insurance Services Inc. (“ABAIS”) from American Bankers Mutual Insurance, Ltd. for approximately $30 million using cash on hand at the parent company. Additional contingent consideration of up to $3 million could be due four years after the acquisition date based on achieving certain operating milestones. ABAIS is based in Ohio and is a market-leading provider of directors and officers liability and other complementary insurance solutions for banks, small businesses and nonprofit organizations. The allocation of the purchase price is shown in the table below (in millions): November 30, Total purchase price $ 30 Tangible assets acquired 28 Liabilities acquired 26 Net tangible assets acquired, at fair value 2 Excess purchase price over net tangible assets acquired $ 28 Allocation of excess purchase price: Intangible assets acquired (*) $ 25 Deferred tax on intangible assets acquired (*) (5 ) Goodwill 8 $ 28 (*) Included in Other assets in AFG’s Balance Sheet. Approximately $25 million of the purchase price was recorded as a finite lived customer relationship intangible asset, which will be amortized over its estimated life of 9 years . The fair value of this intangible was estimated using a multi-period excess earnings method, which is a form of the income approach. The acquisition resulted in the recognition of $8 million in goodwill based on the excess of the purchase price over the fair value of the net assets acquired. The goodwill represents the fair value of acquired intangible assets that do not qualify for separate recognition, including the value of ABAIS’s assembled workforce. Business generated by ABAIS is included in the Specialty casualty sub-segment. Neon Lloyd’s Business In December 2017, AFG completed the sale of an indirect noncontrolling interest in Neon, its United Kingdom-based Lloyd’s insurer, to certain Neon executives for cash equal to the fair value of the interest sold as determined by a third-party valuation firm. Because AFG continues to have a controlling interest in Neon, the sale was accounted for as an equity transaction with the excess of the carrying value of the net assets attributable to the noncontrolling interest sold over the consideration received recorded as a $3 million reduction in AFG’s Capital Surplus. As discussed in Note M — “ Income Taxes ,” the sale of the noncontrolling interest also resulted in the recognition of a $56 million tax benefit, including a $48 million tax benefit previously deferred in the 2016 restructuring of the Neon Lloyd’s operations. |
Segments of Operations
Segments of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segments of Operations | Segments of Operations AFG manages its business as three segments: (i) Property and casualty insurance, (ii) Annuity and (iii) Other, which includes holding company assets and costs, revenues and costs of AFG’s limited insurance operations outside of property and casualty insurance and annuity segments, and 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 and trucks, inland and ocean marine, agricultural-related products and other commercial property coverages, (ii) Specialty casualty, which includes primarily excess and surplus, executive and professional liability, general liability, umbrella and excess liability, specialty coverages 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 lending and leasing institutions (including equipment leasing and collateral and lender-placed mortgage property insurance), fidelity and surety 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 sells traditional fixed and indexed annuities in the retail, financial institutions, broker-dealer and registered investment advisor markets. AFG’s reportable segments and their components were determined based primarily upon similar economic characteristics, products and services. Sales of property and casualty insurance outside of the United States represented 7% of AFG’s revenues in 2019 and in 2018 and 5% of AFG’s revenues in 2017 . Approximately two-thirds of these 2019 sales were through the Neon Lloyd’s of London business, which AFG is exiting and will no longer write property and casualty business (beginning in early 2020). The following tables (in millions) show AFG’s assets, revenues and earnings before income taxes by segment and sub-segment. 2019 2018 2017 Assets Property and casualty insurance (a) $ 19,098 $ 17,681 $ 17,171 Annuity 45,074 39,952 37,179 Other 5,958 5,823 6,308 Total assets $ 70,130 $ 63,456 $ 60,658 Revenues Property and casualty insurance: Premiums earned: Specialty Property and transportation $ 1,828 $ 1,729 $ 1,711 Specialty casualty 2,597 2,403 2,186 Specialty financial 610 598 576 Other specialty 150 135 106 Total premiums earned 5,185 4,865 4,579 Net investment income 472 438 362 Other income 11 10 28 Total property and casualty insurance 5,668 5,313 4,969 Annuity: Net investment income 1,792 1,638 1,458 Other income 108 107 103 Total annuity 1,900 1,745 1,561 Other 382 358 330 Total revenues before realized gains (losses) 7,950 7,416 6,860 Realized gains (losses) on securities 287 (266 ) 5 Total revenues $ 8,237 $ 7,150 $ 6,865 (a) Not allocable to sub-segments. 2019 2018 2017 Earnings Before Income Taxes Property and casualty insurance: Underwriting: Specialty Property and transportation $ 79 $ 120 $ 154 Specialty casualty 175 141 104 Specialty financial 92 66 61 Other specialty (21 ) (5 ) (2 ) Other lines (a) (113 ) (20 ) (75 ) Total underwriting 212 302 242 Investment and other income, net 437 407 349 Total property and casualty insurance 649 709 591 Annuity 362 361 380 Other (b) (190 ) (165 ) (252 ) Total earnings before realized gains (losses) and income taxes 821 905 719 Realized gains (losses) on securities 287 (266 ) 5 Total earnings before income taxes $ 1,108 $ 639 $ 724 (a) Includes special charges to increase asbestos and environmental (“A&E”) reserves of $18 million in both 2019 and 2018 and $89 million in 2017 , respectively. Also includes a $76 million charge in 2019 and $18 million in favorable development recorded in 2017 related to the Neon exited lines. (b) Primarily holding company interest and expenses, including losses on retirement of debt of $5 million in 2019 and $51 million in 2017 and special charges to increase A&E reserves related to AFG’s former railroad and manufacturing operations ( $11 million in 2019 , $9 million in 2018 and $24 million in 2017 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
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, 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, asset-backed securities (“ABS”), mortgage-backed securities (“MBS”), certain non-affiliated common stocks, equity index options 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 at the valuation date. 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 are classified as Level 3. As discussed in Note A — “ Accounting Policies — Managed Investment Entities ,” AFG has set the carrying value of its 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. As a result, 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 20 analysts whose primary responsibility is to manage AFG’s investment portfolio. These professionals monitor individual investments as well as overall industries and are active in the financial markets on a daily basis. The group is led by AFG’s chief investment officer, who reports directly to one of AFG’s Co-CEOs. Valuation techniques utilized by pricing services and prices obtained from external sources are reviewed by AFG’s internal investment professionals who are familiar with the securities being priced and the markets in which they trade to ensure the fair value determination is representative of an exit price. To validate the appropriateness of the prices obtained, these investment managers consider widely published indices (as benchmarks), recent trades, changes in interest rates, general economic conditions and the credit quality of the specific issuers. In addition, the Company communicates directly with the pricing services regarding the methods and assumptions used in pricing, including verifying, on a test basis, the inputs used by the service to value specific securities. 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 December 31, 2019 Assets: Available for sale (“AFS”) fixed maturities: U.S. Government and government agencies $ 151 $ 43 $ 15 $ 209 States, municipalities and political subdivisions — 6,858 105 6,963 Foreign government — 172 — 172 Residential MBS — 2,987 173 3,160 Commercial MBS — 892 35 927 Collateralized loan obligations — 4,265 15 4,280 Other asset-backed securities — 5,842 1,286 7,128 Corporate and other 29 21,879 1,758 23,666 Total AFS fixed maturities 180 42,938 3,387 46,505 Trading fixed maturities 2 111 — 113 Equity securities 1,433 67 437 1,937 Equity index call options — 924 — 924 Assets of managed investment entities (“MIE”) 213 4,506 17 4,736 Variable annuity assets (separate accounts) (*) — 628 — 628 Other assets — derivatives — 50 — 50 Total assets accounted for at fair value $ 1,828 $ 49,224 $ 3,841 $ 54,893 Liabilities: Liabilities of managed investment entities $ 206 $ 4,349 $ 16 $ 4,571 Derivatives in annuity benefits accumulated — — 3,730 3,730 Other liabilities — derivatives — 10 — 10 Total liabilities accounted for at fair value $ 206 $ 4,359 $ 3,746 $ 8,311 December 31, 2018 Assets: Available for sale fixed maturities: U.S. Government and government agencies $ 141 $ 83 $ 9 $ 233 States, municipalities and political subdivisions — 6,880 59 6,939 Foreign government — 142 — 142 Residential MBS — 2,547 197 2,744 Commercial MBS — 864 56 920 Collateralized loan obligations — 4,162 116 4,278 Other asset-backed securities — 4,802 731 5,533 Corporate and other 28 19,184 1,996 21,208 Total AFS fixed maturities 169 38,664 3,164 41,997 Trading fixed maturities 9 96 — 105 Equity securities 1,410 68 336 1,814 Equity index call options — 184 — 184 Assets of managed investment entities 203 4,476 21 4,700 Variable annuity assets (separate accounts) (*) — 557 — 557 Other assets — derivatives — 16 — 16 Total assets accounted for at fair value $ 1,791 $ 44,061 $ 3,521 $ 49,373 Liabilities: Liabilities of managed investment entities $ 195 $ 4,297 $ 20 $ 4,512 Derivatives in annuity benefits accumulated — — 2,720 2,720 Other liabilities — derivatives — 49 — 49 Total liabilities accounted for at fair value $ 195 $ 4,346 $ 2,740 $ 7,281 (*) Variable annuity liabilities equal the fair value of variable annuity assets. The transfers between Level 1 and Level 2 for the years ended December 31, 2019 , 2018 and 2017 are reflected in the table below at fair value as of the end of the reporting period (dollars in millions): Level 2 To Level 1 Transfers Level 1 To Level 2 Transfers # of Transfers Fair Value # of Transfers Fair Value 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Perpetual preferred stocks 2 2 4 $ 11 $ 5 $ 23 1 2 2 $ 6 $ 6 $ 11 Common stocks 1 — — — — — — — 1 — — — Transfers between Level 1 and Level 2 for all periods presented were a result of increases or decreases in observable trade activity. Approximately 7% of the total assets carried at fair value on December 31, 2019 , were Level 3 assets. Approximately 57% ( $2.17 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. Internally developed Level 3 asset fair values represent approximately $1.36 billion at December 31, 2019 . Of this amount, approximately $716 million relates to fixed maturity securities that were priced using management’s best estimate of an appropriate credit spread over the treasury yield (of a similar duration) to discount future expected cash flows using a third-party model. The credit spread applied by management is the significant unobservable input. For this group of approximately 35 securities, the average spread used was 396 basis points over the reference treasury yield and the spreads ranged from 100 basis points to 1,253 basis points (approximately 70% of the spreads were between 200 and 700 basis points). Had management used higher spreads, the fair value of this group of securities would have been lower. Conversely, if the spreads used were lower, the fair values would have been higher. For the remainder of the internally developed prices, any justifiable changes in unobservable inputs used to determine fair value would not have resulted in a material change in AFG’s financial position. The derivatives embedded in AFG’s fixed-indexed and variable-indexed annuity liabilities are measured using a discounted cash flow approach and had a fair value of $3.73 billion at December 31, 2019 . The following table presents information about the unobservable inputs used by management in determining fair value of these Level 3 liabilities. See Note F — “ Derivatives .” Unobservable Input Range Adjustment for insurance subsidiary’s credit risk 0.2% – 2.4% over the risk-free rate Risk margin for uncertainty in cash flows 0.80% reduction in the discount rate Surrenders 3% – 22% of indexed account value Partial surrenders 2% – 9% of indexed account value Annuitizations 0.1% – 1% of indexed account value Deaths 1.5% – 10.6% of indexed account value Budgeted option costs 2.5% – 3.3% of indexed account value The range of adjustments for insurance subsidiary’s credit risk is based on the Moody’s corporate A2 bond index and 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 and variable-indexed annuity products with an expected range of 7% to 10% in the majority of future calendar years ( 3% to 22% over all periods). Increasing the budgeted option cost or risk margin for uncertainty in cash flow assumptions in the table above would increase the fair value of the fixed-indexed and variable-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 2019 , 2018 and 2017 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs and $29 million of equity securities transferred into Level 3 in the first quarter of 2018 related to a small number of limited partnerships and similar investments carried at cost under the prior guidance that are carried at fair value through net earnings under new guidance adopted on January 1, 2018, as discussed in Note A — “ Accounting Policies — Investments .” 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 December 31, 2018 Net earnings Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at December 31, 2019 AFS fixed maturities: U.S. government agency $ 9 $ — $ 7 $ — $ (1 ) $ — $ — $ 15 State and municipal 59 — 5 — (3 ) 55 (11 ) 105 Residential MBS 197 6 (3 ) — (20 ) 48 (55 ) 173 Commercial MBS 56 2 — — (12 ) 4 (15 ) 35 Collateralized loan obligations 116 (5 ) 5 — — 28 (129 ) 15 Other asset-backed securities 731 — 6 787 (192 ) 23 (69 ) 1,286 Corporate and other 1,996 (3 ) 55 738 (335 ) 30 (723 ) 1,758 Total AFS fixed maturities 3,164 — 75 1,525 (563 ) 188 (1,002 ) 3,387 Equity securities 336 (5 ) — 52 (2 ) 56 — 437 Assets of MIE 21 (5 ) — 1 — — — 17 Total Level 3 assets $ 3,521 $ (10 ) $ 75 $ 1,578 $ (565 ) $ 244 $ (1,002 ) $ 3,841 Embedded derivatives (a) $ (2,720 ) $ (919 ) $ — $ (333 ) $ 242 $ — $ — $ (3,730 ) Total Level 3 liabilities (b) $ (2,720 ) $ (919 ) $ — $ (333 ) $ 242 $ — $ — $ (3,730 ) (a) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes a favorable adjustment related to the unlocking of actuarial assumptions of $181 million in 2019 . (b) As previously discussed, 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 Balance at December 31, 2017 Net Other Purchases Sales and Transfer Transfer Balance at December 31, 2018 AFS fixed maturities: U.S. government agency $ 8 $ — $ — $ — $ — $ 1 $ — $ 9 State and municipal 148 — (2 ) — (3 ) — (84 ) 59 Residential MBS 122 (9 ) (4 ) — (21 ) 130 (21 ) 197 Commercial MBS 36 — — 20 — — — 56 Collateralized loan obligations 200 (3 ) (13 ) 35 (20 ) 3 (86 ) 116 Other asset-backed securities 544 — (2 ) 391 (228 ) 79 (53 ) 731 Corporate and other 1,044 (10 ) (18 ) 1,221 (204 ) 27 (64 ) 1,996 Total AFS fixed maturities 2,102 (22 ) (39 ) 1,667 (476 ) 240 (308 ) 3,164 Equity securities 165 9 — 155 (6 ) 30 (17 ) 336 Assets of MIE 23 (8 ) — 6 — — — 21 Total Level 3 assets $ 2,290 $ (21 ) $ (39 ) $ 1,828 $ (482 ) $ 270 $ (325 ) $ 3,521 Embedded derivatives (a) $ (2,542 ) $ 204 $ — $ (545 ) $ 163 $ — $ — $ (2,720 ) Total Level 3 liabilities (b) $ (2,542 ) $ 204 $ — $ (545 ) $ 163 $ — $ — $ (2,720 ) (a) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $44 million in 2018 . (b) As previously discussed, 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, 2016 Net earnings Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at December 31, 2017 AFS fixed maturities: U.S. government agency $ 8 $ — $ — $ — $ — $ — $ — $ 8 State and municipal 140 — 2 — (2 ) 10 (2 ) 148 Residential MBS 190 (4 ) 2 1 (40 ) 44 (71 ) 122 Commercial MBS 25 2 — 15 (10 ) 4 — 36 Collateralized loan obligations 174 (1 ) (1 ) 55 (27 ) — — 200 Other asset-backed securities 310 1 2 355 (105 ) 202 (221 ) 544 Corporate and other 712 (5 ) 2 606 (237 ) 29 (63 ) 1,044 Total AFS fixed maturities 1,559 (7 ) 7 1,032 (421 ) 289 (357 ) 2,102 Equity securities 174 (21 ) 10 38 (16 ) — (20 ) 165 Assets of MIE 29 (11 ) — 9 — — (4 ) 23 Total Level 3 assets $ 1,762 $ (39 ) $ 17 $ 1,079 $ (437 ) $ 289 $ (381 ) $ 2,290 Embedded derivatives (a) $ (1,759 ) $ (589 ) $ — $ (300 ) $ 106 $ — $ — $ (2,542 ) Total Level 3 liabilities (b) $ (1,759 ) $ (589 ) $ — $ (300 ) $ 106 $ — $ — $ (2,542 ) (a) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $25 million in 2017 . (b) As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets. 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 at December 31 are summarized below (in millions): Carrying Fair Value Value Total Level 1 Level 2 Level 3 2019 Financial assets: Cash and cash equivalents $ 2,314 $ 2,314 $ 2,314 $ — $ — Mortgage loans 1,329 1,346 — — 1,346 Policy loans 164 164 — — 164 Total financial assets not accounted for at fair value $ 3,807 $ 3,824 $ 2,314 $ — $ 1,510 Financial liabilities: Annuity benefits accumulated (*) $ 40,159 $ 40,182 $ — $ — $ 40,182 Long-term debt 1,473 1,622 — 1,619 3 Total financial liabilities not accounted for at fair value $ 41,632 $ 41,804 $ — $ 1,619 $ 40,185 2018 Financial assets: Cash and cash equivalents $ 1,515 $ 1,515 $ 1,515 $ — $ — Mortgage loans 1,068 1,056 — — 1,056 Policy loans 174 174 — — 174 Total financial assets not accounted for at fair value $ 2,757 $ 2,745 $ 1,515 $ — $ 1,230 Financial liabilities: Annuity benefits accumulated (*) $ 36,384 $ 34,765 $ — $ — $ 34,765 Long-term debt 1,302 1,231 — 1,228 3 Total financial liabilities not accounted for at fair value $ 37,686 $ 35,996 $ — $ 1,228 $ 34,768 (*) Excludes $247 million and $232 million of life contingent annuities in the payout phase at December 31, 2019 and 2018 , respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Available for sale fixed maturities at December 31 consisted of the following (in millions): 2019 2018 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 $ 199 $ 10 $ — $ 10 $ 209 $ 235 $ 1 $ (3 ) $ (2 ) $ 233 States municipalities and political subdivisions 6,604 363 (4 ) 359 6,963 6,825 169 (55 ) 114 6,939 Foreign government 170 3 (1 ) 2 172 140 2 — 2 142 Residential MBS 2,900 265 (5 ) 260 3,160 2,476 277 (9 ) 268 2,744 Commercial MBS 896 31 — 31 927 905 17 (2 ) 15 920 Collateralized loan obligations 4,307 10 (37 ) (27 ) 4,280 4,350 1 (73 ) (72 ) 4,278 Other asset-backed securities 6,992 156 (20 ) 136 7,128 5,431 129 (27 ) 102 5,533 Corporate and other 22,456 1,231 (21 ) 1,210 23,666 21,475 167 (434 ) (267 ) 21,208 Total fixed maturities $ 44,524 $ 2,069 $ (88 ) $ 1,981 $ 46,505 $ 41,837 $ 763 $ (603 ) $ 160 $ 41,997 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 December 31, 2019 and December 31, 2018 were $118 million and $140 million , respectively. Gross unrealized gains on such securities at December 31, 2019 and December 31, 2018 were $114 million and $119 million , respectively. Gross unrealized losses on such securities at December 31, 2019 and December 31, 2018 were $1 million and $4 million , respectively. These amounts represent the non-credit other-than-temporary impairment charges recorded in AOCI adjusted for subsequent changes in fair values and relate primarily to residential MBS. Equity securities, which are reported at fair value with holding gains and losses recognized in net earnings, consisted of the following at December 31 (in millions): 2019 2018 Fair Value Fair Value Actual over (under) Actual over (under) Cost Fair Value Cost Cost Fair Value Cost Common stocks $ 1,164 $ 1,283 $ 119 $ 1,241 $ 1,148 $ (93 ) Perpetual preferred stocks 640 654 14 705 666 (39 ) Total equity securities carried at fair value $ 1,804 $ 1,937 $ 133 $ 1,946 $ 1,814 $ (132 ) The following tables show gross unrealized losses (dollars in millions) on available for sale fixed maturities by investment category and length of time that individual securities have been in a continuous unrealized loss position at the following balance sheet dates. 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 December 31, 2019 Fixed maturities: U.S. Government and government agencies $ — $ 16 100 % $ — $ 11 100 % States, municipalities and political subdivisions (3 ) 254 99 % (1 ) 82 99 % Foreign government (1 ) 70 99 % — — — % Residential MBS (4 ) 509 99 % (1 ) 69 99 % Commercial MBS — 17 100 % — — — % Collateralized loan obligations (11 ) 1,284 99 % (26 ) 1,728 99 % Other asset-backed securities (12 ) 1,211 99 % (8 ) 123 94 % Corporate and other (13 ) 1,100 99 % (8 ) 211 96 % Total fixed maturities $ (44 ) $ 4,461 99 % $ (44 ) $ 2,224 98 % December 31, 2018 Fixed maturities: U.S. Government and government agencies $ — $ 41 100 % $ (3 ) $ 120 98 % States, municipalities and political subdivisions (23 ) 1,497 98 % (32 ) 902 97 % Foreign government — 18 100 % — 4 100 % Residential MBS (4 ) 279 99 % (5 ) 139 97 % Commercial MBS (1 ) 147 99 % (1 ) 30 97 % Collateralized loan obligations (61 ) 3,540 98 % (12 ) 197 94 % Other asset-backed securities (16 ) 1,866 99 % (11 ) 432 98 % Corporate and other (306 ) 10,378 97 % (128 ) 2,078 94 % Total fixed maturities $ (411 ) $ 17,766 98 % $ (192 ) $ 3,902 95 % At December 31, 2019 , the gross unrealized losses on fixed maturities of $88 million relate to 649 securities. Investment grade securities (as determined by nationally recognized rating agencies) represented approximately 74% of the gross unrealized loss and 93% of the fair value. The determination of whether unrealized losses are other-than-temporary requires judgment based on subjective as well as objective factors. Factors considered and resources used by management include: a) whether the unrealized loss is credit-driven or a result of changes in market interest rates, b) the extent to which fair value is less than cost basis, c) cash flow projections received from independent sources, d) historical operating, balance sheet and cash flow data contained in issuer SEC filings and news releases, e) near-term prospects for improvement in the issuer and/or its industry, f) third-party research and communications with industry specialists, g) financial models and forecasts, h) the continuity of interest payments, maintenance of investment grade ratings and hybrid nature of certain investments, i) discussions with issuer management, and j) ability and intent to hold the investment for a period of time sufficient to allow for anticipated recovery in 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. During 2019 , 2018 and 2017 , AFG recorded other-than-temporary impairment charges related to its residential MBS of $1 million , $6 million and $1 million , respectively. In 2019 , AFG recorded other-than-temporary impairment charges of $17 million on third-party collateralized loan obligations and $11 million on corporate bonds. Other-than-temporary impairment charges on fixed maturities other than residential MBS were $20 million in 2018 and $19 million in 2017 . In addition, AFG recorded $4 million in other-than-temporary impairment charges in 2017 on investments that are included in other investments on the balance sheet. 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 December 31, 2019 . As discussed in Note A — “ Accounting Policies — Investments ,” effective January 1, 2018, all equity securities previously classified as “available for sale” are required to be carried at fair value through net earnings instead of accumulated other comprehensive income and therefore are no longer evaluated for other-than-temporary impairment. In 2017, AFG recorded other-than-temporary impairment charges on equity securities classified as available for sale of $64 million . 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): 2019 2018 2017 Balance at January 1 $ 142 $ 145 $ 153 Additional credit impairments on: Previously impaired securities 1 1 1 Securities without prior impairments — 1 3 Reductions due to sales or redemptions (9 ) (5 ) (12 ) Balance at December 31 $ 134 $ 142 $ 145 The table below sets forth the scheduled maturities of available for sale fixed maturities as of December 31, 2019 (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 $ 1,764 $ 1,793 4 % After one year through five years 10,613 11,044 24 % After five years through ten years 13,513 14,419 31 % After ten years 3,539 3,754 8 % 29,429 31,010 67 % Collateralized loan obligations and other ABS (average life of approximately 4 years) 11,299 11,408 24 % MBS (average life of approximately 4-1/2 years) 3,796 4,087 9 % Total $ 44,524 $ 46,505 100 % 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 December 31, 2019 or 2018 . Net Unrealized Gain on Marketable Securities In addition to adjusting 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 Net December 31, 2019 Net unrealized gain on: Fixed maturities — annuity segment (*) $ 1,611 $ (338 ) $ 1,273 Fixed maturities — all other 370 (78 ) 292 Total fixed maturities 1,981 (416 ) 1,565 Deferred policy acquisition costs — annuity segment (681 ) 143 (538 ) Annuity benefits accumulated (219 ) 46 (173 ) Life, accident and health reserves (1 ) — (1 ) Unearned revenue 11 (2 ) 9 Total net unrealized gain on marketable securities $ 1,091 $ (229 ) $ 862 December 31, 2018 Net unrealized gain on: Fixed maturities — annuity segment (*) $ 101 $ (21 ) $ 80 Fixed maturities — all other 59 (13 ) 46 Total fixed maturities 160 (34 ) 126 Deferred policy acquisition costs — annuity segment (42 ) 9 (33 ) Annuity benefits accumulated (14 ) 3 (11 ) Unearned revenue 1 — 1 Total net unrealized gain on marketable securities $ 105 $ (22 ) $ 83 (*) Net 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. 2019 2018 2017 Investment income: Fixed maturities $ 1,915 $ 1,742 $ 1,607 Equity securities: Dividends 85 79 73 Change in fair value (*) 39 22 6 Equity in earnings of partnerships and similar investments 154 161 64 Other 132 112 102 Gross investment income 2,325 2,116 1,852 Investment expenses (22 ) (22 ) (21 ) Net investment income $ 2,303 $ 2,094 $ 1,831 (*) Although the change in the fair value of the majority of AFG’s equity securities is recorded in realized gains (losses) on securities, AFG records holding gains and losses in net investment income on equity securities classified as “trading” under previous guidance and on a small portfolio of limited partnership and similar investments that do not qualify for the equity method of accounting. Realized gains (losses) and changes in unrealized appreciation (depreciation) included in AOCI related to fixed maturity and equity security investments are summarized as follows (in millions): 2019 2018 Realized gains (losses) Realized gains (losses) Before Impairments Impairments Total Change in Unrealized Before Impairments Impairments Total Change in Unrealized Fixed maturities $ 26 $ (29 ) $ (3 ) $ 1,821 $ 6 $ (26 ) $ (20 ) $ (1,181 ) Equity securities 277 — 277 — (265 ) — (265 ) — Mortgage loans and other investments 3 — 3 — 1 — 1 — Other (*) — 10 10 (835 ) 11 7 18 502 Total pretax 306 (19 ) 287 986 (247 ) (19 ) (266 ) (679 ) Tax effects (64 ) 4 (60 ) (207 ) 52 4 56 143 Net of tax $ 242 $ (15 ) $ 227 $ 779 $ (195 ) $ (15 ) $ (210 ) $ (536 ) 2017 Realized gains (losses) Before Impairments Impairments Total Change in Unrealized Fixed maturities $ 17 $ (20 ) $ (3 ) $ 532 Equity securities 70 (64 ) 6 128 Mortgage loans and other investments (6 ) (4 ) (10 ) — Other (*) (3 ) 15 12 (219 ) Total pretax 78 (73 ) 5 441 Tax effects: Reclassify impact of U.S. corporate tax rate change — — — 149 Other (27 ) 25 (2 ) (154 ) Total tax effects (27 ) 25 (2 ) (5 ) Net of tax $ 51 $ (48 ) $ 3 $ 436 (*) Primarily adjustments to deferred policy acquisition costs and reserves related to the annuity business. As discussed in Note A — “ Accounting Policies — Investments ,” effective January 1, 2018, all equity securities other than those accounted for under the equity method are carried at fair value through net earnings. AFG recorded net holding gains (losses) on equity securities during 2019 and 2018 on securities that were still owned at December 31 as follows (in millions): 2019 2018 Included in realized gains (losses) $ 169 $ (279 ) Included in net investment income 38 22 $ 207 $ (257 ) Gross realized gains and losses (excluding impairment write-downs and mark-to-market of derivatives) on available for sale fixed maturity investment transactions consisted of the following (in millions): 2019 2018 2017 Gross gains $ 35 $ 22 $ 43 Gross losses (19 ) (14 ) (20 ) During 2017 , AFG recorded gross gains of $87 million and gross losses of $17 million on available for sale equity securities. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives As discussed under “ Derivatives ” in Note A — “ Accounting Policies ,” 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): December 31, 2019 December 31, 2018 Derivative Balance Sheet Line Asset Liability Asset Liability MBS with embedded derivatives Fixed maturities $ 102 $ — $ 109 $ — Public company warrants Equity securities — — — — Fixed-indexed and variable-indexed annuities (embedded derivative) Annuity benefits accumulated — 3,730 — 2,720 Equity index call options Equity index call options 924 — 184 — Equity index put options Other liabilities — 1 — 1 Reinsurance contract (embedded derivative) Other liabilities — 4 — 2 $ 1,026 $ 3,735 $ 293 $ 2,723 The MBS with embedded derivatives consist of primarily interest-only and principal-only MBS. 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 and variable-indexed annuities provide policyholders with a crediting rate tied, in part, to the performance of an existing stock market or other financial index. AFG attempts to mitigate the risk in the index-based component of these products through the purchase and sale of call and put options on the appropriate index. AFG receives collateral from certain counterparties to support its purchased call option assets (net of collateral required under put option contracts with the same counterparties). This collateral ( $577 million at December 31, 2019 and $103 million at December 31, 2018 ) 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 net change in the fair value of the call and put options will generally offset the economic change in the net liability from the index participation. Both the index-based component of the annuities (an embedded derivative) and the related call and put options are considered derivatives that must be adjusted for changes in fair value through earnings each period. The fair values of these derivatives are impacted by actual and expected stock market performance and interest rates as well as other factors. Fluctuations in certain of these factors, such as changes in interest rates and the performance of the stock market, are not economic in nature for the current reporting period, but rather impact the timing of reported results. As discussed under “ Reinsurance ” in Note A , AFG has a reinsurance contract that is considered to contain an embedded derivative. The following table summarizes the gains (losses) included in AFG’s Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting for 2019 , 2018 and 2017 (in millions): Derivative Statement of Earnings Line 2019 2018 2017 MBS with embedded derivatives Realized gains (losses) on securities $ 10 $ (7 ) $ (6 ) Public company warrants Realized gains (losses) on securities (1 ) (3 ) — Fixed-indexed and variable-indexed annuities (embedded derivative) (*) Annuity benefits (919 ) 204 (589 ) Equity index call options Annuity benefits 804 (298 ) 494 Equity index put options Annuity benefits 2 (1 ) — Reinsurance contracts (embedded derivative) Net investment income (2 ) 2 (2 ) $ (106 ) $ (103 ) $ (103 ) (*) The change in fair value of the embedded derivative includes a favorable adjustment related to unlocking of actuarial assumptions of $181 million in 2019 and losses of $44 million in 2018 and $25 million in 2017 . Derivatives Designated and Qualifying as Cash Flow Hedges As of December 31, 2019 , AFG has thirteen active 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 generally decline over each swap’s respective life (the swaps expire between April 2020 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 was $1.98 billion at December 31, 2019 compared to $2.35 billion at December 31, 2018 , reflecting the scheduled amortization discussed above, the termination of two swaps with notional amounts of $138 million and $100 million (on the settlement dates) in the second quarter and fourth quarter of 2019, respectively, and the expiration of a swap with a notional amount of $78 million (on the expiration date) in the third quarter of 2019. The fair value of the interest rate swaps in an asset position and included in other assets was $50 million at December 31, 2019 and $16 million at December 31, 2018 . The fair value of the interest rate swaps in a liability position and included in other liabilities was $5 million at December 31, 2019 and $46 million at December 31, 2018 . The net unrealized gain or loss on cash flow hedges is included in AOCI, net of DPAC and deferred taxes. Amounts reclassified from AOCI (before DPAC and taxes) to net investment income were income of $3 million in 2019 , losses of $3 million in 2018 and income of $6 million in 2017 . A collateral receivable supporting these swaps of $20 million at December 31, 2019 and $135 million at December 31, 2018 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2019 | |
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 Other Deferred Deferred Sales Consolidated Costs Costs Inducements PVFP Subtotal Unrealized (*) Total Total Balance at December 31, 2016 $ 238 $ 1,110 $ 110 $ 46 $ 1,266 $ (265 ) $ 1,001 $ 1,239 Additions 588 225 4 — 229 — 229 817 Amortization: Periodic amortization (556 ) (161 ) (19 ) (8 ) (188 ) — (188 ) (744 ) Annuity unlocking — 34 6 1 41 — 41 41 Included in realized gains — 9 1 — 10 — 10 10 Foreign currency translation — — — — — — — — Other — — — 10 10 — 10 10 Change in unrealized — — — — — (157 ) (157 ) (157 ) Balance at December 31, 2017 270 1,217 102 49 1,368 (422 ) 946 1,216 Additions 675 263 2 — 265 — 265 940 Amortization: Periodic amortization (644 ) (238 ) (19 ) (7 ) (264 ) — (264 ) (908 ) Annuity unlocking — 29 — — 29 — 29 29 Included in realized gains — 14 1 — 15 — 15 15 Foreign currency translation (2 ) — — — — — — (2 ) Change in unrealized — — — — — 392 392 392 Balance at December 31, 2018 299 1,285 86 42 1,413 (30 ) 1,383 1,682 Additions 744 206 2 — 208 — 208 952 Amortization: Periodic amortization (721 ) (120 ) (13 ) (6 ) (139 ) — (139 ) (860 ) Annuity unlocking — (76 ) (1 ) — (77 ) — (77 ) (77 ) Included in realized gains — 8 1 — 9 — 9 9 Foreign currency translation — — — — — — — — Change in unrealized — — — — — (669 ) (669 ) (669 ) Balance at December 31, 2019 $ 322 $ 1,303 $ 75 $ 36 $ 1,414 $ (699 ) $ 715 $ 1,037 (*) Adjustments to DPAC related to net unrealized gains/losses on securities and cash flow hedges. The present value of future profits (“PVFP”) amounts in the table above are net of $154 million and $148 million of accumulated amortization at December 31, 2019 and 2018 , respectively. During each of the next five years, the PVFP is expected to decrease at a rate of approximately one-eighth of the balance at the beginning of each respective year. |
Managed Investment Entities
Managed Investment Entities | 12 Months Ended |
Dec. 31, 2019 | |
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 60.9% of the most subordinate debt tranche of eleven active collateralized loan obligation entities (“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 2012 and 2018, 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 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 the CLOs that it manages is limited to its investment in those CLOs, which had an aggregate fair value of $165 million (including $102 million invested in the most subordinate tranches) at December 31, 2019 , and $188 million at December 31, 2018 . During 2019, AFG subsidiaries received less than $1 million in redemption proceeds from their CLO investments. In 2018 , AFG formed a new CLO, which issued $463 million face amount of liabilities (including $31 million face amount purchased by subsidiaries of AFG). During 2018 , AFG subsidiaries also purchased $7 million face amount of a senior debt tranche of an existing CLO for $7 million and received $45 million in sale and redemption proceeds from its CLO investments. In 2017 , AFG formed two new CLOs, which issued an aggregate of $865 million face amount of liabilities (including $48 million face amount purchased by subsidiaries of AFG). During 2017 , AFG subsidiaries also purchased $71 million face amount of senior debt and subordinate tranches of existing CLOs for $71 million and received $103 million in sale and redemption proceeds from its CLO investments. In 2018 and 2017 , one and two AFG CLOs, respectively, were substantially liquidated, as permitted by the CLO indentures. 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. Selected financial information related to the CLOs is shown below (in millions): Year ended December 31, 2019 2018 2017 Investment in CLO tranches $ 165 $ 188 $ 215 Gains (losses) on change in fair value of assets/liabilities (a): Assets 80 (189 ) (8 ) Liabilities (110 ) 168 20 Management fees paid to AFG 15 16 18 CLO earnings attributable to AFG Shareholders (b) 4 7 23 (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 $146 million and $232 million at December 31, 2019 and 2018 , respectively. The aggregate unpaid principal balance of the CLOs’ debt exceeded its carrying value by $129 million and $241 million at those dates. The CLO assets include loans with an aggregate fair value of $10 million at December 31, 2019 , for which the CLOs are not accruing interest because the loans are in default (aggregate unpaid principal balance of $25 million ; none at December 31, 2018 ). In addition to the CLOs that it manages, AFG had investments in CLOs that are managed by third parties (therefore not consolidated), which are included in available for sale fixed maturity securities and had a carrying value of $4.28 billion at both December 31, 2019 and December 31, 2018 . |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Changes in the carrying value of goodwill during 2017 , 2018 and 2019 , by reporting segment, are presented in the following table (in millions): Property and Casualty Annuity Total Balance at January 1, 2017 and December 31, 2017 $ 168 $ 31 $ 199 Acquisition of subsidiary in 2018 8 — 8 Balance at December 31, 2018 and December 31, 2019 $ 176 $ 31 $ 207 Goodwill increased by $8 million in the fourth quarter of 2018 due to the purchase of ABAIS as discussed in Note B — “ Acquisitions and Sale of Businesses .” Included in other assets in AFG’s Balance Sheet is $43 million at December 31, 2019 and $54 million at December 31, 2018 of amortizable intangible assets related to property and casualty insurance acquisitions. These amounts are net of accumulated amortization of $50 million and $39 million , respectively. The increase in amortizable intangible assets in 2018 relates to the November 2018 acquisition of ABAIS (discussed in Note B — “ Acquisitions and Sale of Businesses ” ) and a renewal rights intangible asset established in connection with the acquisition of a small property and casualty book of business in January 2018. Amortization of intangibles was $11 million in 2019 , $9 million in 2018 and $8 million in 2017 . Future amortization of intangibles (weighted average amortization period of 4 years ) is estimated to be $12 million in 2020 , $6 million in 2021 , $4 million per year in 2022 , 2023 and 2024 and $13 million thereafter. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following at December 31 (in millions): 2019 2018 Principal Discount and Issue Costs Carrying Value Principal Discount and Issue Costs Carrying Value Direct Senior Obligations of AFG: 4.50% Senior Notes due June 2047 $ 590 $ (2 ) $ 588 $ 590 $ (2 ) $ 588 3.50% Senior Notes due August 2026 425 (3 ) 422 425 (4 ) 421 Other 3 — 3 3 — 3 1,018 (5 ) 1,013 1,018 (6 ) 1,012 Direct Subordinated Obligations of AFG: 5.125% Subordinated Debentures due December 2059 200 (6 ) 194 — — — 6% Subordinated Debentures due November 2055 150 (5 ) 145 150 (5 ) 145 5.875% Subordinated Debentures due March 2059 125 (4 ) 121 — — — 6-1/4% Subordinated Debentures due September 2054 — — — 150 (5 ) 145 475 (15 ) 460 300 (10 ) 290 $ 1,493 $ (20 ) $ 1,473 $ 1,318 $ (16 ) $ 1,302 AFG has no scheduled principal payments on its long-term debt in the next five years. In December 2019, AFG issued $200 million in 5.125% Subordinated Debentures due in 2059. The net proceeds of the offering were used, in part, to redeem AFG’s $150 million outstanding principal amount of 6-1/4% Subordinated Debentures due September 2054 at par value in December 2019. In March 2019, AFG issued $125 million in 5.875% Subordinated Debentures due in 2059. AFG can borrow up to $500 million under its 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 December 31, 2019 or December 31, 2018 . Cash interest payments on long-term debt were $65 million in 2019 , $59 million in 2018 and $85 million in 2017 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases AFG and its subsidiaries lease real estate that is primarily used for office space and, to a lesser extent, equipment under operating lease arrangements. Most of AFG’s real estate leases include an option to extend or renew the lease term at AFG’s option. The operating lease liability includes lease payments related to options to extend or renew the lease term if AFG is reasonably certain of exercising those options. Lease payments are discounted using the implicit discount rate in the lease. If the implicit discount rate for the lease cannot be readily determined, AFG uses an estimate of its incremental secured borrowing rate. AFG did not have any material contracts accounted for as finance leases at December 31, 2019 or January 1, 2019. At December 31, 2019 , AFG’s $158 million operating lease right-of-use asset (presented net of $22 million in deferred rent and lease incentives) and $180 million operating lease liability are included in other assets and other liabilities, respectively, in AFG’s Balance Sheet. The following table details AFG’s lease activity for the year ended December 31, 2019 (in millions): 2019 Lease expense: Operating leases $ 46 Short-term leases 1 Total lease expense $ 47 Other operating lease information for the year ended December 31, 2019 (in millions): Cash paid for lease liabilities reported in operating cash flows $ 49 Right-of-use assets obtained under new leases 19 The following table presents the undiscounted contractual maturities of AFG’s operating lease liability at December 31, 2019 (in millions): Operating lease payments: 2020 $ 46 2021 41 2022 32 2023 27 2024 20 Thereafter 35 Total lease payments 201 Impact of discounting (21 ) Operating lease liability $ 180 Weighted-average remaining lease term 5.5 years Weighted-average discount rate 4.1 % |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
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. 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. At December 31, 2019 , there were 4.5 million shares of AFG Common Stock reserved for issuance under AFG’s stock incentive plans. The restricted Common Stock that AFG has granted generally vests over a four-year period. Data relating to grants of restricted stock is presented below: Shares Average Grant Date Fair Value Outstanding at January 1, 2019 865,930 $ 84.06 Granted 232,635 $ 99.28 Vested (167,326 ) $ 66.10 Forfeited (11,304 ) $ 90.26 Outstanding at December 31, 2019 919,935 $ 91.10 The total fair value of restricted stock that vested during 2019 , 2018 and 2017 was $11 million , $10 million and $14 million , respectively. AFG issued 45,804 shares (fair value of $115.49 per share) in the first quarter of 2018 under its Equity Bonus Plan. AFG has not granted any stock options since 2015. Options granted in prior years have an exercise price equal to the market price of AFG Common Stock at the date of grant. Options generally become exercisable at the rate of 20% per year commencing one year after grant and expire ten years after the date of grant. Data for stock options issued under AFG’s stock incentive plans is presented below: Shares Average Exercise Price Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2019 2,667,442 $ 48.20 Exercised (747,167 ) $ 41.13 Forfeited/Cancelled (2,485 ) $ 61.88 Outstanding at December 31, 2019 1,917,790 $ 50.93 3.7 years $ 113 Options exercisable at December 31, 2019 1,779,941 $ 50.13 3.6 years $ 107 The total intrinsic value of options exercised during 2019 , 2018 and 2017 was $46 million , $57 million and $65 million , respectively. During 2019 , 2018 and 2017 , AFG received $31 million , $29 million and $34 million , respectively, in cash from the exercise of stock options. The total tax benefit related to the exercises was $8 million , $9 million and $18 million during those years, respectively. Total compensation expense related to stock incentive plans of AFG and its subsidiaries was $23 million for 2019 and 2018 and $30 million for 2017 . AFG’s provision for income tax includes tax benefits of $13 million in 2019 and 2018 and $27 million in 2017 related to AFG’s stock incentive plans. At December 31, 2019 , there was $36 million of unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted average of 2.4 years . At December 31, 2019 , there was less than $1 million of unrecognized compensation expense related to unvested stock options, which will be recognized in the first quarter of 2020. 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 (Loss) AOCI Beginning Balance Pretax Tax Net of tax Attributable to noncontrolling interests Attributable to shareholders Other (c) AOCI Ending Balance Year ended December 31, 2019 Net unrealized gains on securities: Unrealized holding gains on securities arising during the period $ 997 $ (209 ) $ 788 $ — $ 788 Reclassification adjustment for realized (gains) losses included in net earnings (a) (11 ) 2 (9 ) — (9 ) Total net unrealized gains on securities (b) $ 83 986 (207 ) 779 — 779 $ — $ 862 Net unrealized gains (losses) on cash flow hedges (11 ) 36 (8 ) 28 — 28 — 17 Foreign currency translation adjustments (16 ) 7 — 7 — 7 — (9 ) Pension and other postretirement plans adjustments (8 ) 1 — 1 — 1 — (7 ) Total $ 48 $ 1,030 $ (215 ) $ 815 $ — $ 815 $ — $ 863 Year ended December 31, 2018 Net unrealized gains (losses) on securities: Unrealized holding losses on securities arising during the period $ (689 ) $ 145 $ (544 ) $ — $ (544 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) 10 (2 ) 8 — 8 Total net unrealized gains (losses) on securities (b) $ 840 (679 ) 143 (536 ) — (536 ) $ (221 ) $ 83 Net unrealized gains (losses) on cash flow hedges (13 ) 2 — 2 — 2 — (11 ) Foreign currency translation adjustments (6 ) (9 ) (1 ) (10 ) — (10 ) — (16 ) Pension and other postretirement plans adjustments (8 ) — — — — — — (8 ) Total $ 813 $ (686 ) $ 142 $ (544 ) $ — $ (544 ) $ (221 ) $ 48 Year ended December 31, 2017 Net unrealized gains on securities: Unrealized holding gains on securities arising during the period $ 456 $ (159 ) $ 297 $ — $ 297 Reclassification adjustment for realized (gains) losses included in net earnings (a) (15 ) 5 (10 ) — (10 ) Total net unrealized gains on securities (b) $ 404 441 (154 ) 287 — 287 $ 149 $ 840 Net unrealized losses on cash flow hedges (7 ) (6 ) 2 (4 ) — (4 ) (2 ) (13 ) Foreign currency translation adjustments (15 ) 9 3 12 — 12 (3 ) (6 ) Pension and other postretirement plans adjustments (7 ) 1 — 1 — 1 (2 ) (8 ) Total $ 375 $ 445 $ (149 ) $ 296 $ — $ 296 $ 142 $ 813 (a) The reclassification adjustment out of net unrealized gains (losses) 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 (b) Includes net unrealized gains of $55 million at December 31, 2019 compared to $58 million and $68 million at December 31, 2018 and 2017 , related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings. (c) On January 1, 2018, AFG adopted new guidance that requires all equity securities other than those accounted for under the equity method to be reported at fair value with holding gains and losses recognized in net earnings. At the date of adoption, the $221 million net unrealized gain on equity securities classified as available for sale (with unrealized holding gains and losses reported in AOCI) under the prior guidance was reclassified from AOCI to retained earnings as the cumulative effect of an accounting change. Other also includes the December 2017 reclassification of $145 million stranded in AOCI from accounting for the Tax Cuts and Jobs Act of 2017 to retained earnings (see Note A — “ Accounting Policies — Income Taxes ”) and the impact on AOCI of the December 2017 sale of redeemable noncontrolling interests in Neon . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following is a reconciliation of income taxes at the statutory rate ( 21% in 2019 and 2018 and 35% in 2017) to the provision for income taxes as shown in AFG’s Statement of Earnings (dollars in millions): 2019 2018 2017 Amount % of EBT Amount % of EBT Amount % of EBT Earnings before income taxes (“EBT”) $ 1,108 $ 639 $ 724 Income taxes at statutory rate $ 233 21 % $ 134 21 % $ 253 35 % Effect of: Tax exempt interest (14 ) (1 %) (13 ) (2 %) (23 ) (3 %) Stock-based compensation (8 ) (1 %) (8 ) (1 %) (16 ) (2 %) Dividend received deduction (4 ) — % (4 ) (1 %) (8 ) (1 %) Adjustment to prior year taxes (3 ) — % (8 ) (1 %) (4 ) (1 %) Employee stock ownership plan dividend paid deduction (2 ) — % (3 ) (1 %) (5 ) (1 %) Change in valuation allowance (excluding change in tax rate) 17 2 % 11 2 % (7 ) (1 %) Nondeductible expenses 8 1 % 7 1 % 6 1 % Foreign operations 4 — % (2 ) — % 21 3 % Neon restructuring — — % — — % (56 ) (8 %) Change in U.S corporate tax rate — — % — — % 83 11 % Other 8 — % 8 1 % 3 1 % Provision for income taxes as shown in the statement of earnings $ 239 22 % $ 122 19 % $ 247 34 % In January 2008, AFG paid $75 million in cash to acquire approximately 67% of Neon Underwriting Limited (“Neon”, formerly known as Marketform Group Limited), a United Kingdom-based Lloyd’s insurer. During 2012, AFG acquired the then-remaining shares of Neon that it did not already own for $17 million . AFG’s investment in Neon includes the cost of acquiring the company as well as additional capital provided to Neon since the date of acquisition. In 2011, cumulative losses at Neon across multiple lines of business resulted in uncertainty concerning the realization of the deferred tax benefits associated with the losses. Consequently, AFG began maintaining a full valuation allowance against the deferred tax assets related to the Lloyd’s insurance business in 2011. Approximately $14 million of the $21 million impact of “foreign operations” for 2017 in the table above relates to a reduction in the “foreign underwriting losses” deferred tax asset as a result of the sale of the noncontrolling interest in Neon. Since AFG maintains a full valuation allowance against the deferred tax assets related to Neon, this reduction in deferred tax assets was offset by a corresponding reduction in the valuation allowance and had no overall impact on AFG’s income tax expense or results of operations. The changes in valuation allowance in the table above are primarily increases in the valuation allowance on tax benefits related to losses in the Neon Lloyd’s insurance business. The $61 million decrease in the valuation allowance in 2017 related to the change in the U.S. corporate tax rate is included in “Change in U.S. corporate tax rate” in table above. The sale of the noncontrolling interest in Neon in the fourth quarter of 2017 resulted in the recognition of a tax benefit of $56 million , including the recognition of a deferred loss from the 2016 restructuring of Neon. Approximately $20 million of the $56 million tax benefit recorded in 2017 reduced current taxes payable for 2017. The majority of the remaining 2017 tax benefit is expected to be received in 2020 as a result of the filing of a refund claim in 2018 to carry back tax basis capital losses to offset prior year tax basis capital gains. The Tax Cuts and Jobs Act of 2017 (“TCJA”), which was enacted on December 22, 2017, lowered the U.S corporate tax rate to 21% and made other widespread changes to the U.S. tax code effective in 2018. Because the TCJA was enacted in December 2017, AFG recorded the $83 million decrease in its net deferred tax asset resulting from the changes in the tax code (primarily the lower corporate tax rate applicable to 2018 and future years) in the fourth quarter of 2017. In addition to the lower U.S. corporate tax rate, the TCJA implemented a new global minimum tax on income earned by foreign subsidiaries of U.S.-based entities known as the Global Intangible Low-taxed Income (“GILTI”) provision. Since almost all of AFG’s earnings are taxable based on U.S. tax rates, the GILTI is not expected to be material to AFG’s results of operations and will be recorded in the period that any tax arises. At the time it was enacted, the TCJA was subject to further clarification and interpretation by the U.S. Treasury Department and the Internal Revenue Service. AFG’s deferred tax assets and liabilities were recorded at December 31, 2017 using reasonable estimates based on available information and were considered provisional in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 118 (“SAB 118”). In accordance with SAB 118, changes in deferred taxes resulting from clarification and interpretation of the TCJA were recorded in 2018 in the period in which the guidance was published and did not have a material impact on AFG’s effective tax rate. As a result, AFG’s implementation of the TCJA was complete as of December 31, 2018. Excluding the tax benefit related to the Neon restructuring and the impact of the change in the U.S. corporate tax rate, AFG’s effective tax rate for the year ended December 31, 2017 was 31% . AFG’s 2013 — 2019 tax years remain subject to examination by the IRS. Total earnings before income taxes include losses subject to tax in foreign jurisdictions of $109 million in 2019 , $69 million in 2018 and $58 million in 2017 , primarily related to the Neon Lloyd’s operations. The total income tax provision (credit) consists of (in millions): 2019 2018 2017 Current taxes: Federal $ 250 $ 196 $ 153 State 10 8 6 Foreign 2 — — Deferred taxes: Federal (23 ) (82 ) 5 Impact of change in U.S. corporate tax rate — — 83 Total Federal deferred taxes (23 ) (82 ) 88 Provision for income taxes $ 239 $ 122 $ 247 For income tax purposes, AFG and its subsidiaries had the following carryforwards available at December 31, 2019 (in millions): Expiring Amount Operating Loss – U.S. 2020 - 2022 $ 93 Operating Loss – United Kingdom indefinite 305 (*) (*) £231 million Deferred income tax assets and liabilities reflect temporary differences between the carrying amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes. The significant components of deferred tax assets and liabilities included in AFG’s Balance Sheet at December 31 were as follows (in millions): 2019 2018 Excluding Unrealized Gains Impact of Unrealized Gains Total Excluding Unrealized Gains Impact of Unrealized Gains Total Deferred tax assets: Federal net operating loss carryforwards $ 19 $ — $ 19 $ 23 $ — $ 23 Foreign underwriting losses 118 — 118 93 — 93 Insurance claims and reserves 829 46 875 740 3 743 Employee benefits 93 — 93 88 — 88 Other, net 45 (2 ) 43 44 — 44 Total deferred tax assets before valuation allowance 1,104 44 1,148 988 3 991 Valuation allowance against deferred tax assets (140 ) — (140 ) (119 ) — (119 ) Total deferred tax assets 964 44 1,008 869 3 872 Deferred tax liabilities: Investment securities (140 ) (416 ) (556 ) (36 ) (34 ) (70 ) Deferred policy acquisition costs (293 ) 143 (150 ) (300 ) 9 (291 ) Insurance claims and reserves transition liability (93 ) — (93 ) (110 ) — (110 ) Real estate, property and equipment (35 ) — (35 ) (36 ) — (36 ) Total deferred tax liabilities (561 ) (273 ) (834 ) (482 ) (25 ) (507 ) Net deferred tax asset (liability) $ 403 $ (229 ) $ 174 $ 387 $ (22 ) $ 365 AFG’s net deferred tax asset at December 31, 2019 and 2018 is included in other assets in AFG’s Balance Sheet. The decrease in AFG’s net deferred tax asset at December 31, 2019 compared to December 31, 2018 reflects significantly higher pretax unrealized gains on securities. The likelihood of realizing deferred tax assets is reviewed periodically; any adjustments required to the valuation allowance are made in the period during which developments requiring an adjustment become known. “Foreign underwriting losses” in the table above is primarily the net operating loss carryforward and other deferred tax assets related to the Neon Lloyd’s insurance business. Due to uncertainty concerning the realization of the deferred tax benefits associated with these losses, AFG maintains a full valuation allowance of $118 million against these deferred tax assets at December 31, 2019 . In addition to the valuation allowance related to the Neon Lloyd’s insurance business, the gross deferred tax asset has also been reduced by a $19 million valuation allowance related to AFG’s net operating loss carryforwards (“NOL”) subject to the separate return limitation year (“SRLY”) tax rules. A SRLY NOL can be used only by the entity that created it and only in years that both it and the consolidated group have taxable income. Approximately $19 million of AFG’s SRLY NOLs expired unutilized at December 31, 2019 . Since AFG maintains a full valuation allowance against its SRLY NOLs, the expiration of these loss carryforwards was offset by corresponding reduction in the valuation allowance and had no overall impact on AFG’s income tax expense or results of operations. AFG increased its liability for uncertain tax positions by $1 million in 2015 due to uncertainty in state taxation of its surplus lines insurance subsidiaries. In 2017, this uncertainty was resolved, resulting in total tax payments of less than $1 million . A progression of the liability for uncertain tax positions, excluding interest and penalties, follows (in millions): 2019 2018 2017 Balance at January 1 $ — $ — $ 1 Additions for tax positions of prior years — — — Reductions for tax positions of prior years — — — Additions for tax positions of current year — — — Settlements — — (1 ) Balance at December 31 $ — $ — $ — At December 31, 2019 , there are no unrecognized tax benefits and related interest and penalties that, if recognized, would impact the effective tax rate. The total unrecognized tax benefits and related interest and penalties that, if recognized, would impact the effective tax rate was less than $1 million at December 31, 2018 . There is no interest expense related to unrecognized tax benefits included in AFG’s provision for income taxes in 2019; AFG’s provision for income taxes in 2018 and 2017 included interest expense related to unrecognized tax benefits of less than $1 million in each year (net of federal benefit or expense). There is no liability for interest related to unrecognized tax benefits at December 31, 2019 or December 31, 2018 . AFG’s provision for income taxes in 2019 , 2018 and 2017 included penalties of less than $1 million in each year. There is no liability for penalties related to unrecognized tax benefits at December 31, 2019 ; AFG’s liability for penalties related to unrecognized tax benefits was less than $1 million at December 31, 2018 . Cash payments for income taxes, net of refunds, were $278 million , $156 million and $194 million for 2019 , 2018 and 2017 , respectively. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Establishing property and casualty insurance reserves for claims related to environmental exposures, asbestos and other mass tort claims is subject to uncertainties that are significantly greater than those presented by other types of claims. For this group of claims, traditional actuarial techniques that rely on historical loss development trends cannot be used and a range of reasonably possible losses cannot be estimated. In addition, accruals (included in other liabilities) have been recorded for various environmental and occupational injury and disease claims and other contingencies arising out of the railroad operations disposed of by American Premier’s predecessor, Penn Central Transportation Company (“PCTC”) and its subsidiaries, prior to its bankruptcy reorganization in 1978 and certain manufacturing operations disposed of by American Premier and Great American Financial Resources, Inc. (“GAFRI”). AFG completed an in-depth internal review of its asbestos and environmental (“A&E”) exposures in the third quarter of 2019. The review resulted in special A&E charges of $18 million for the property and casualty group and $11 million for the former railroad and manufacturing operations. AFG also completed an in-depth internal review of its A&E exposures in the third quarter of 2018, which resulted in special A&E charges of $18 million for the property and casualty group and $9 million for the former railroad and manufacturing operations. AFG completed a comprehensive external study of its A&E exposures in the third quarter of 2017 with the aid of specialty actuarial, engineering and consulting firms and outside counsel. The study resulted in special A&E charges of $89 million for the property and casualty group and $24 million for the former railroad and manufacturing operations. The property and casualty group’s liability for A&E reserves was $529 million at December 31, 2019 ; related recoverables from reinsurers (net of allowances for doubtful accounts) at that date were $146 million . At December 31, 2019 , American Premier and its subsidiaries had liabilities for environmental and personal injury claims and other contingencies aggregating $84 million . The environmental claims consist of a number of proceedings and claims seeking to impose responsibility for hazardous waste remediation costs related to certain sites formerly owned or operated by the railroad and manufacturing operations. Remediation costs are difficult to estimate for a number of reasons, including the number and financial resources of other potentially responsible parties, the range of costs for remediation alternatives, changing technology and the time period over which these matters develop. The personal injury claims and other contingencies include pending and expected claims, primarily by former employees of PCTC, for injury or disease allegedly caused by exposure to excessive noise, asbestos or other substances in the workplace and other labor disputes. At December 31, 2019 , GAFRI had a liability of $8 million for environmental costs and certain other matters associated with the sales of its former manufacturing operations. In December 2015, AFG completed the sale of substantially all of its run-off long-term care insurance business to HC2 Holdings, Inc. (“HC2”). 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 expiring in 2020. While management believes AFG has recorded adequate reserves for the items discussed above, the outcome is uncertain and could result in liabilities that may vary from amounts AFG has currently recorded. Such amounts could have a material effect on AFG’s future results of operations and financial condition. |
Quarterly Operating Results (Un
Quarterly Operating Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Operating Results (Unaudited) | Quarterly Operating Results (Unaudited) The operations of certain AFG business segments are seasonal in nature. While insurance premiums are recognized on a relatively level basis, claim losses related to adverse weather (snow, hail, hurricanes, severe storms, tornadoes, etc.) may be seasonal. The profitability of AFG’s crop insurance business is primarily recognized during the second half of the year as crop prices and yields are determined. Quarterly results necessarily rely heavily on estimates. These estimates and certain other factors, such as the discretionary sales of assets, cause the quarterly results not to be necessarily indicative of results for longer periods of time. The following are quarterly results of consolidated operations for the two years ended December 31, 2019 (in millions, except per share amounts). Quarterly earnings per share do not add to year-to-date amounts due to changes in shares outstanding. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2019 Revenues $ 2,024 $ 1,960 $ 2,123 $ 2,130 $ 8,237 Net earnings, including noncontrolling interests 326 209 143 191 869 Net earnings attributable to shareholders 329 210 147 211 897 Earnings attributable to shareholders per Common Share: Basic $ 3.68 $ 2.34 $ 1.64 $ 2.33 $ 9.98 Diluted 3.63 2.31 1.62 2.30 9.85 Average number of Common Shares: Basic 89.4 89.7 90.0 90.2 89.9 Diluted 90.7 91.0 91.1 91.3 91.0 2018 Revenues $ 1,619 $ 1,833 $ 2,008 $ 1,690 $ 7,150 Net earnings (losses), including noncontrolling interests 141 208 203 (35 ) 517 Net earnings (losses) attributable to shareholders 145 210 204 (29 ) 530 Earnings (losses) attributable to shareholders per Common Share: Basic $ 1.64 $ 2.36 $ 2.30 $ (0.33 ) $ 5.95 Diluted 1.60 2.31 2.26 (0.33 ) 5.85 Average number of Common Shares: Basic 88.6 89.0 89.1 89.3 89.0 Diluted 90.4 90.7 90.7 89.3 90.6 Pretax realized gains (losses) on securities, which resulted primarily from changes in the fair value of equity securities, were as follows (in millions): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2019 — change in fair value of equity securities $ 182 $ 44 $ (15 ) $ 67 $ 278 2019 — other realized gains (losses) 2 12 (3 ) (2 ) 9 2018 — change in fair value of equity securities (95 ) 23 33 (223 ) (262 ) 2018 — other realized gains (losses) 2 8 1 (15 ) (4 ) FIAs provide policyholders with a crediting rate tied, in part, to the performance of an existing stock market or other financial index. AFG attempts to mitigate the risk in the index-based component of these products through the purchase and sale of call and put options on the appropriate index. AFG’s strategy is designed so that the change in the fair value of the call and put options 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 and put options are considered derivatives that must be marked-to-market through earnings each period. Fluctuations in interest rates and the stock market, among other factors, can cause volatility in the periodic measurement of these derivatives and other FIA liabilities over or under the cost of the equity index options purchased to mitigate the risk in the index-based component of those FIAs. The impact of unlocking, changes in the fair value of derivatives related to FIAs, and other impacts of changes in the stock market and interest rates on the accounting for FIAs over or under the cost of the equity index options purchased to mitigate the risk in the index-based component of those FIAs were as follows, net of the related acceleration/deceleration of the amortization of deferred policy acquisition costs and deferred sales inducements (in millions): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2019 $ (11 ) $ (33 ) $ (27 ) $ 24 $ (47 ) 2018 15 (14 ) 17 (66 ) (48 ) Favorable prior year development of AFG’s liability for property and casualty losses and loss adjustment expenses (”LAE”) was as follows (in millions): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2019 $ 45 $ 41 $ 12 $ 45 $ 143 2018 56 44 31 61 192 Prior year development in both the third quarters of 2019 and 2018 includes pretax special charges of $18 million to strengthen property and casualty insurance A&E reserves. In the fourth quarter of 2019, AFG recorded a pretax charge of $76 million for reserve strengthening and expenses related to exit costs incurred with AFG’s plans to exit the Lloyd’s of London insurance market in 2020. AFG’s property and casualty operations recorded catastrophe losses, including reinstatement premiums, as follows (in millions): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2019 $ (12 ) $ (12 ) $ (22 ) $ (15 ) $ (61 ) 2018 (13 ) (16 ) (38 ) (38 ) (105 ) Results for the third quarter of 2019 and 2018 include pretax special charges of $11 million and $9 million , respectively, to strengthen reserves for A&E exposures related to AFG’s former railroad and manufacturing operations. AFG recorded a pretax loss on the retirement of debt of $5 million in the fourth quarter of 2019. Holding company expenses were $20 million higher in the fourth quarter of 2019 compared to the fourth quarter of 2018 due primarily to higher expenses related to employee benefit plans that are tied to stock market performance. |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Insurance | Insurance Cash and securities owned by U.S.-based insurance subsidiaries, having a carrying value of approximately $1.04 billion at December 31, 2019 , were on deposit as required by regulatory authorities. In addition, $217 million was on deposit in support of AFG’s underwriting activities at Lloyd’s. At December 31, 2019 , AFG and its subsidiaries had $414 million in undrawn letters of credit ( none of which was collateralized) and similar agreements supporting the underwriting capacity of its U.K.-based Lloyd’s insurer, Neon. Property and Casualty Insurance Reserves Estimating the liability for unpaid losses and loss adjustment expenses (“LAE”) is inherently judgmental and is influenced by factors that are subject to significant variation. Determining the liability is a complex process incorporating input from many areas of the Company including actuarial, underwriting, pricing, claims and operations management. The process used to determine the total reserve for liabilities involves estimating the ultimate incurred losses and LAE, adjusted for amounts already paid on the claims. The IBNR reserve is derived by first estimating the ultimate unpaid reserve liability and subtracting case reserves for loss and LAE. In determining management’s best estimate of the ultimate liability, management (with the assistance of Company actuaries) considers items such as the effect of inflation on medical, hospitalization, material, repair and replacement costs, the nature and maturity of lines of insurance, general economic trends and the legal environment. In addition, historical trends adjusted for changes in underwriting standards, policy provisions, product mix and other factors are analyzed using actuarial reserve development techniques. Weighing all of the factors, the management team determines a single or “point” estimate that it records as its best estimate of the ultimate liability. Ranges of loss reserves are not developed by Company actuaries. This reserve analysis and review is completed each quarter and for almost every business within AFG’s property and casualty insurance sub-segments. Each review includes in-depth analysis of several hundred subdivisions of the business, employing multiple actuarial techniques. For each subdivision, actuaries use informed, professional judgment to adjust these techniques as necessary to respond to specific conditions in the data or within the business. Some of the standard actuarial methods employed for the quarterly reserve analysis may include (but may not be limited to): • Case Incurred Development Method • Paid Development Method • Bornhuetter-Ferguson Method • Incremental Paid LAE to Paid Loss Methods Management believes that each method has particular strengths and weaknesses and that no single estimation method is most accurate in all situations. When applied to a particular group of claims, the relative strengths and weaknesses of each method can change over time based on the facts and circumstances. Ultimately, the estimation methods chosen are those which management believes produce the most reliable indication for the particular liabilities under review. The period of time from the occurrence of a loss through the settlement of the liability is referred to as the “tail”. Generally, the same actuarial methods are considered for both short-tail and long-tail lines of business because most of them work properly for both. The methods are designed to incorporate the effects of the differing length of time to settle particular claims. For short-tail lines, management tends to give more weight to the Case Incurred and Paid Development methods, although the various methods tend to produce similar results. For long-tail lines, more judgment is involved, and more weight may be given to the Bornhuetter-Ferguson method. Liability claims for long-tail lines are more susceptible to litigation and can be significantly affected by changing contract interpretation and the legal environment. Therefore, the estimation of loss reserves for these classes is more complex and subject to a higher degree of variability. The level of detail in which data is analyzed varies among the different lines of business. Data is generally analyzed by major product or by coverage within product, using countrywide data; however, in some situations, data may be reviewed by state or region. Appropriate segmentation of the data is determined based on data credibility, homogeneity of development patterns, mix of business, and other actuarial considerations. Supplementary statistical information is also reviewed to determine which methods are most appropriate to use or if adjustments are needed to particular methods. Such information includes: • Open and closed claim counts • Average case reserves and average incurred on open claims • Closure rates and statistics related to closed and open claim percentages • Average closed claim severity • Ultimate claim severity • Reported loss ratios • Projected ultimate loss ratios • Loss payment patterns Within each business, results of individual methods are reviewed, supplementary statistical information is analyzed, and data from underwriting, operating and claim management are considered in deriving management’s best estimate of the ultimate liability. This estimate may be the result of one method, a weighted average of several methods, or a judgmental selection as the management team determines is appropriate. The liability for losses and LAE for a very limited number of claims with long-term scheduled payments under certain workers’ compensation policies has been discounted at 4.5% at both December 31, 2019 and 2018 , which represents an approximation of long-term investment yields. Because of the limited amount of claims involved, the net impact of discounting did not materially impact AFG’s total liability for unpaid losses and loss adjustment expenses (net reductions from discounting of $12 million and $13 million at December 31, 2019 and 2018 , respectively). The following table provides an analysis of changes in the liability for losses and loss adjustment expenses over the past three years (in millions): 2019 2018 2017 Balance at beginning of period $ 9,741 $ 9,678 $ 8,563 Less reinsurance recoverables, net of allowance 2,942 2,957 2,302 Net liability at beginning of period 6,799 6,721 6,261 Provision for losses and LAE occurring in the current year 3,414 3,195 3,019 Net increase (decrease) in the provision for claims of prior years: Special A&E charges 18 18 89 Neon exited lines charge 7 — (18 ) Other (168 ) (210 ) (135 ) Total losses and LAE incurred 3,271 3,003 2,955 Payments for losses and LAE of: Current year (1,076 ) (963 ) (942 ) Prior years (1,790 ) (1,639 ) (1,586 ) Total payments (2,866 ) (2,602 ) (2,528 ) Reserves of businesses disposed (*) — (319 ) — Foreign currency translation and other 4 (4 ) 33 Net liability at end of period 7,208 6,799 6,721 Add back reinsurance recoverables, net of allowance 3,024 2,942 2,957 Gross unpaid losses and LAE included in the balance sheet $ 10,232 $ 9,741 $ 9,678 (*) Reflects the reinsurance to close transactions at Neon (discussed below). The net decrease in the provision for claims of prior years in 2019 reflects (i) lower than expected claim frequency and severity at National Interstate and lower than expected losses in the crop business (all within the Property and transportation sub-segment), (ii) lower than anticipated claim frequency and severity in the workers’ compensation businesses (within the Specialty casualty sub-segment), and (iii) lower than expected claim frequency and severity in the surety and financial institutions businesses and lower than anticipated claim severity in the foreign credit business (all within the Specialty financial sub-segment). This favorable development was partially offset by (i) the $18 million special charge to increase asbestos and environmental reserves and adverse reserve development of $7 million on Neon’s exited lines of business, (ii) higher than expected claim severity in the excess and surplus lines businesses and higher than expected claim frequency in product liability contractor claims (all within the Specialty casualty sub-segment), and (iii) net adverse reserve development related to business outside the Specialty group that AFG no longer writes. The net decrease in the provision for claims of prior years in 2018 reflects (i) lower than expected losses in the crop business and lower than expected claim severity at National Interstate (within the Property and transportation sub-segment), (ii) lower than anticipated claim severity in the workers’ compensation businesses, lower than expected emergence in assumed 2017 property catastrophe losses at Neon and lower than expected claim severity in the executive liability business (within the Specialty casualty sub-segment) and (iii) lower than expected claim frequency and severity in the surety business, lower than expected claim severity in the fidelity business and lower than expected claim frequency in run-off businesses (within the Specialty financial sub-segment). This favorable development was partially offset by (i) the $18 million special charge to increase asbestos and environmental reserves and (ii) higher than expected claim frequency and severity in the Singapore branch and aviation operations (within the Property and transportation sub-segment). The net decrease in the provision for claims of prior years in 2017 reflects (i) lower than expected losses in the crop and equine businesses and lower than expected claim severity in the property and inland marine and transportation businesses (all within the Property and transportation sub-segment), (ii) favorable reserve development of $18 million on Neon’s exited lines, as well as additional favorable development on ongoing lines of business within Neon, recorded in connection with the reinsurance to close agreement entered into in December 2017 for the 2015 and prior years of account, lower than anticipated claim severity in the workers’ compensation businesses and lower than expected losses in the executive liability business (all within the Specialty casualty sub-segment) and (iii) lower than anticipated claim severity in the fidelity business and lower than expected claim frequency and severity in the surety business (both within the Specialty financial sub-segment). This favorable development was partially offset by (i) the $89 million special charge to increase asbestos and environmental reserves, (ii) higher than expected claim frequency and severity in the ocean marine business (within the Property and transportation sub-segment), (iii) higher than anticipated claim severity in the targeted markets and general liability businesses and higher than anticipated severity in New York contractor claims (all within the Specialty casualty sub-segment) and (iv) a charge to adjust to the deferred gain on the retroactive reinsurance transaction entered into in connection with the sale of businesses in 1998 (included in Other specialty sub-segment). In December 2017, the Neon Lloyd’s syndicate entered into a reinsurance to close transaction for the 2015 and prior years of account with StarStone Underwriting Limited, a subsidiary of Enstar Group Limited, which was effective as of December 31, 2017 and settled in early 2018. In the Lloyd’s market, a reinsurance to close transaction transfers the responsibility for discharging all of the liabilities that attach to the transferred year of account plus the right to any income due to the closing year of account in return for a premium. This transaction provided Neon with finality on its legacy business. As a result of the reinsurance to close agreement, Neon was able to better estimate its ultimate liability for the 2015 and prior years of account as of December 31, 2017, resulting in favorable development of $42 million , of which $24 million related to its ongoing lines of business (included in Specialty casualty) and $18 million related to its exited lines of business. A reconciliation of incurred and paid claims development information to the aggregate carrying amount of the liability for unpaid losses and LAE, with separate disclosure of reinsurance recoverables on unpaid claims is shown below (in millions): 2019 Unpaid losses and allocated LAE, net of reinsurance: Specialty Property and transportation $ 1,171 Specialty casualty 4,056 Specialty financial 221 Other specialty 313 Total Specialty (excluding foreign reserves) 5,761 Other reserves Reserves for foreign operations: Neon Lloyd’s business 357 Other subsidiaries 289 A&E reserves 383 Unallocated LAE 361 Other 57 Total other reserves 1,447 Total reserves, net of reinsurance 7,208 Add back reinsurance recoverables, net of allowance 3,024 Gross unpaid losses and LAE included in the balance sheet $ 10,232 The following claims development tables and associated disclosures related to short-duration insurance contracts are prepared by sub-segment within the property and casualty insurance business for the most recent 10 accident years. AFG determines its claim counts at the claimant or policy feature level depending on the particular facts and circumstances of the underlying claim. While the methodology is generally consistent within each sub-segment, there are minor differences between and within the sub-segments. The methods used to summarize claim counts have not changed significantly over the time periods reported in the tables below. Property and transportation (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 679 $ 639 $ 645 $ 652 $ 655 $ 655 $ 660 $ 657 $ 655 $ 655 $ 3 138,105 2011 811 799 813 827 837 850 846 844 843 5 138,309 2012 864 857 871 883 894 890 886 881 8 143,122 2013 882 870 872 878 878 877 873 10 138,864 2014 844 828 817 820 815 808 15 132,971 2015 818 784 779 777 777 23 134,618 2016 746 716 714 706 46 120,884 2017 889 847 843 80 140,067 2018 932 902 119 128,428 2019 1,111 288 138,508 Total $ 8,399 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (a) 2010 $ 316 $ 486 $ 535 $ 596 $ 626 $ 637 $ 642 $ 647 $ 649 $ 650 99.2 % 2011 365 667 727 771 803 821 829 833 834 98.9 % 2012 572 708 772 816 842 856 882 869 98.6 % 2013 438 702 760 804 831 847 858 98.3 % 2014 329 632 693 744 770 783 96.9 % 2015 359 582 667 707 736 94.7 % 2016 294 521 577 618 87.5 % 2017 379 640 696 82.6 % 2018 396 676 74.9 % 2019 527 47.4 % Total $ 7,247 Unpaid losses and LAE — years 2010 through 2019 1,152 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) 19 Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 1,171 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 47.1 % 29.8 % 7.7 % 6.0 % 3.6 % 1.8 % 1.5 % (0.1 %) 0.2 % 0.2 % Cumulative 47.1 % 76.9 % 84.6 % 90.6 % 94.2 % 96.0 % 97.5 % 97.4 % 97.6 % 97.8 % (a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). Specialty casualty (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 871 $ 887 $ 888 $ 867 $ 880 $ 870 $ 868 $ 866 $ 855 $ 846 $ 28 56,716 2011 852 849 839 848 834 828 826 817 810 37 54,755 2012 901 892 885 885 883 877 849 842 53 54,682 2013 968 949 945 940 945 926 916 77 54,929 2014 1,035 1,008 1,008 1,006 982 967 98 56,445 2015 1,081 1,043 1,041 1,042 1,024 126 57,427 2016 1,131 1,122 1,116 1,101 236 56,000 2017 1,211 1,221 1,204 372 56,073 2018 1,277 1,307 548 57,081 2019 1,308 773 51,198 Total $ 10,325 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (a) 2010 $ 191 $ 412 $ 560 $ 645 $ 700 $ 736 $ 757 $ 771 $ 783 $ 798 94.3 % 2011 174 383 522 612 662 694 714 731 745 92.0 % 2012 173 385 516 621 684 723 745 761 90.4 % 2013 182 396 554 666 729 766 797 87.0 % 2014 190 412 574 680 755 801 82.8 % 2015 178 411 577 702 792 77.3 % 2016 186 418 584 713 64.8 % 2017 200 422 612 50.8 % 2018 210 475 36.3 % 2019 212 16.2 % Total $ 6,706 Unpaid losses and LAE — years 2010 through 2019 3,619 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) 437 Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 4,056 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 18.7 % 22.9 % 16.4 % 11.5 % 7.3 % 4.3 % 2.7 % 1.9 % 1.6 % 1.8 % Cumulative 18.7 % 41.6 % 58.0 % 69.5 % 76.8 % 81.1 % 83.8 % 85.7 % 87.3 % 89.1 % (a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). Specialty financial (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 138 $ 145 $ 132 $ 132 $ 135 $ 133 $ 130 $ 127 $ 126 $ 126 $ 1 21,925 2011 138 157 155 153 147 144 143 139 137 — 16,369 2012 163 163 151 139 137 135 132 127 1 21,076 2013 140 145 137 131 127 126 122 4 28,460 2014 146 157 156 153 147 142 5 29,436 2015 156 160 158 153 145 10 37,562 2016 179 184 187 182 18 45,054 2017 212 215 212 27 48,421 2018 212 217 30 46,198 2019 194 77 35,369 Total $ 1,604 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (a) 2010 $ 61 $ 93 $ 104 $ 122 $ 132 $ 130 $ 128 $ 126 $ 126 $ 126 100.0 % 2011 58 111 115 123 130 131 131 132 132 96.4 % 2012 71 104 109 117 121 126 128 126 99.2 % 2013 70 100 107 113 117 117 118 96.7 % 2014 62 109 125 128 137 139 97.9 % 2015 72 110 129 133 132 91.0 % 2016 88 141 158 161 88.5 % 2017 120 169 186 87.7 % 2018 112 163 75.1 % 2019 99 51.0 % Total $ 1,382 Unpaid losses and LAE — years 2010 through 2019 222 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) (1 ) Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 221 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 50.5 % 27.7 % 7.9 % 5.4 % 4.2 % 0.9 % 0.2 % (0.8 %) — % — % Cumulative 50.5 % 78.2 % 86.1 % 91.5 % 95.7 % 96.6 % 96.8 % 96.0 % 96.0 % 96.0 % (a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). Other specialty (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims (a) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 36 $ 39 $ 40 $ 39 $ 40 $ 40 $ 40 $ 40 $ 40 $ 39 $ 1 — 2011 39 43 42 43 43 44 44 43 42 1 — 2012 42 40 39 40 41 39 39 36 2 — 2013 46 47 46 47 50 53 58 3 — 2014 58 57 59 59 60 61 6 — 2015 59 60 63 66 76 3 — 2016 61 61 65 71 15 — 2017 63 65 70 23 — 2018 86 90 53 — 2019 108 87 — Total $ 651 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (b) 2010 $ 8 $ 14 $ 21 $ 24 $ 27 $ 33 $ 35 $ 36 $ 37 $ 37 94.9 % 2011 12 20 25 28 34 36 37 38 39 92.9 % 2012 8 17 21 25 28 30 30 32 88.9 % 2013 7 16 22 34 37 44 51 87.9 % 2014 13 21 30 36 43 50 82.0 % 2015 10 26 31 50 62 81.6 % 2016 9 19 31 47 66.2 % 2017 10 19 30 42.9 % 2018 12 23 25.6 % 2019 9 8.3 % Total $ 380 Unpaid losses and LAE — years 2010 through 2019 271 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) 42 Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 313 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 16.6 % 16.5 % 13.2 % 14.9 % 10.5 % 9.8 % 4.9 % 3.5 % 2.5 % — % Cumulative 16.6 % 33.1 % 46.3 % 61.2 % 71.7 % 81.5 % 86.4 % 89.9 % 92.4 % 92.4 % (a) The amounts shown in Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty property and casualty insurance sub-segments. Accordingly, the liability for incurred claims and allocated LAE represents additional reserves held on claims counted in the tables provided for the other sub-segments (above). (b) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). Total Specialty Group (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 1,724 $ 1,710 $ 1,705 $ 1,690 $ 1,710 $ 1,698 $ 1,698 $ 1,690 $ 1,676 $ 1,666 $ 33 216,746 2011 1,840 1,848 1,849 1,871 1,861 1,866 1,859 1,843 1,832 43 209,433 2012 1,970 1,952 1,946 1,947 1,955 1,941 1,906 1,886 64 218,880 2013 2,036 2,011 2,000 1,996 2,000 1,982 1,969 94 222,253 2014 2,083 2,050 2,040 2,038 2,004 1,978 124 218,852 2015 2,114 2,047 2,041 2,038 2,022 162 229,607 2016 2,117 2,083 2,082 2,060 315 221,938 2017 2,375 2,348 2,329 502 244,561 2018 2,507 2,516 750 231,707 2019 2,721 1,225 225,075 Total $ 20,979 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (a) 2010 $ 576 $ 1,005 $ 1,220 $ 1,387 $ 1,485 $ 1,536 $ 1,562 $ 1,580 $ 1,595 $ 1,611 96.7 % 2011 609 1,181 1,389 1,534 1,629 1,682 1,711 1,734 1,750 95.5 % 2012 824 1,214 1,418 1,579 1,675 1,735 1,785 1,788 94.8 % 2013 697 1,214 1,443 1,617 1,714 1,774 1,824 92.6 % 2014 594 1,174 1,422 1,588 1,705 1,773 89.6 % 2015 619 1,129 1,404 1,592 1,722 85.2 % 2016 577 1,099 1,350 1,539 74.7 % 2017 709 1,250 1,524 65.4 % 2018 730 1,337 53.1 % 2019 847 31.1 % Total $ 15,715 Unpaid losses and LAE — years 2010 through 2019 5,264 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) 497 Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 5,761 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 32.6 % 25.7 % 12.1 % 8.9 % 5.6 % 3.1 % 2.1 % 0.8 % 0.9 % 1.0 % Cumulative 32.6 % 58.3 % 70.4 % 79.3 % 84.9 % 88.0 % 90.1 % 90.9 % 91.8 % 92.8 % (a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). Closed Block of Long-Term Care Insurance Reserves for AFG’s closed block of long-term care insurance were $46 million at December 31, 2019 and $45 million at December 31, 2018 , net of reinsurance recoverables and excluding the impact of unrealized gains on securities. AFG’s remaining outstanding long-term care policies have level premiums and are guaranteed renewable. Premium rates can potentially be increased in reaction to adverse experience; however, any rate increases would require regulatory approval. FHLB Funding Agreements Great American Life Insurance Company (“GALIC”), a wholly-owned annuity subsidiary, is a member of the Federal Home Loan Bank of Cincinnati (“FHLB”). The FHLB makes advances and provides other banking services to member institutions. Members are required to purchase stock in the FHLB in addition to maintaining collateral deposits that back any funds advanced. GALIC’s $52 million investment in FHLB capital stock at December 31, 2019 is included in other investments at cost. Membership in the FHLB provides the annuity operations with an additional source of liquidity. These advances further the FHLB’s mission of improving access to housing by increasing liquidity in the residential mortgage-backed securities market. In 2019, GALIC refinanced the terms on advances totaling $610 million . In the fourth quarter of 2018, GALIC refinanced the terms on a $40 million advance and the FHLB advanced GALIC $225 million . At both December 31, 2019 and December 31, 2018, GALIC had $1.10 billion in outstanding advances from the FHLB (included in annuity benefits accumulated), bearing interest at rates ranging from 0.13% to 0.21% over LIBOR (average rate of 1.95% at December 31, 2019 ). While these advances must be repaid between 2020 and 2021 ( $310 million in 2020 and $786 million in 2021), GALIC has the option to prepay all or a portion of the advances. GALIC has invested the proceeds from the advances in fixed maturity securities with similar expected lives as the advances for the purpose of earning a spread over the interest payments due to the FHLB. The advances on these agreements are collateralized by fixed maturity investments, which have a total fair value of $1.27 billion (included in available for sale fixed maturity securities) at December 31, 2019 . Interest credited on the funding agreements, which is included in annuity benefits, was $27 million in 2019 , $20 million in 2018 and $14 million in 2017 . Statutory Information AFG’s U.S.-based insurance subsidiaries are required to file financial statements with state insurance regulatory authorities prepared on an accounting basis prescribed or permitted by such authorities (statutory basis). Net earnings and capital and surplus on a statutory basis for the insurance subsidiaries were as follows (in millions): Net Earnings Capital and Surplus 2019 2018 2017 2019 2018 Property and casualty companies $ 584 $ 546 $ 484 $ 3,342 $ 2,867 Life (annuity) insurance companies 34 802 286 2,868 2,701 In the fourth quarter of 2018, GALIC, AFG’s primary annuity subsidiary, entered into a reinsurance treaty with Hannover Life Reassurance Company of America that transfers the risk of certain surrender activity in GALIC’s fixed-indexed annuity business. This treaty meets the statutory risk transfer rules and resulted in a $510 million increase in statutory surplus (through an after-tax reserve credit), which is reflected in the life insurance companies capital and surplus in the table above. Under GAAP, this transaction does not meet the GAAP insurance risk transfer criteria and did not have a material impact on AFG’s financial statements. The National Association of Insurance Commissioners’ (“NAIC”) model law for risk-based capital (“RBC”) applies to both life and property and casualty insurance companies. RBC formulas determine the amount of capital that an insurance company needs so that it has an acceptable expectation of not becoming financially impaired. Companies below specific trigger points or ratios are subject to regulatory action. At December 31, 2019 and 2018 , the capital ratios of all AFG insurance companies substantially exceeded the RBC requirements. AFG’s insurance companies did not use any prescribed or permitted statutory accounting practices that differed from the NAIC statutory accounting practices at December 31, 2019 or 2018 . Payments of dividends by AFG’s insurance companies are subject to various state laws that limit the amount of dividends that can be paid. Under applicable restrictions, the maximum amount of dividends available to AFG in 2020 from its insurance subsidiaries without seeking regulatory approval is $852 million . Additional amounts of dividends require regulatory approval. Holding Company Dividends AFG declared and paid common stock dividends to shareholders totaling $446 million , $397 million and $421 million in 2019 , 2018 and 2017 , respectively. Currently, there are no regulatory restrictions on AFG’s retained earnings or net earnings that materially impact its ability to pay dividends. Based on shareholders’ equity at December 31, 2019 , AFG could pay dividends in excess of $2.5 billion without violating its most restrictive debt covenant. However, the payment of future dividends will be at the discretion of AFG’s Board of Directors and will be dependent on many factors including AFG’s financial condition and results of operations, the capital requirements of its insurance subsidiaries, and rating agency commitments. Reinsurance In the normal course of business, AFG’s insurance subsidiaries cede reinsurance to other companies to diversify risk and limit maximum loss arising from large claims. However, AFG remains liable to its insureds regardless of whether a reinsurer is able to meet its obligations. The following table shows (in millions) (i) amounts deducted from property and casualty written and earned premiums in connection with reinsurance ceded, (ii) written and earned premiums included in income for reinsurance assumed and (iii) reinsurance recoveries, which represent ceded losses and loss adjustment expenses. 2019 2018 2017 Direct premiums written $ 7,044 $ 6,626 $ 6,310 Reinsurance assumed 255 214 192 Reinsurance ceded (1,957 ) (1,817 ) (1,751 ) Net written premiums $ 5,342 $ 5,023 $ 4,751 Direct premiums earned $ 6,848 $ 6,472 $ 6,112 Reinsurance assumed 226 204 157 Reinsurance ceded (1,889 ) (1,811 ) (1,690 ) Net earned premiums $ 5,185 $ 4,865 $ 4,579 Reinsurance recoveries $ 1,404 $ 1,249 $ 1,379 In June 2017, AFG’s property and casualty insurance subsidiaries entered into a reinsurance agreement to obtain supplemental catastrophe protection through a catastrophe bond structure with Riverfront Re Ltd. (“Riverfront”). The reinsurance agreement provides supplemental reinsurance coverage up to 95% of $200 million (fully collateralized) for catastrophe losses in excess of $134 million of traditional catastrophe reinsurance (per occurrence and annual aggregate) occurring until December 31, 2020. In connection with the reinsurance agreement, Riverfront issued notes to unrelated investors for the full amount of coverage provided under the reinsurance agreement. Through December 31, 2019 , AFG’s incurred catastrophe losses have not reached the level of attachment for the catastrophe bond structure. Riverfront is a variable interest entity in which AFG does not have a variable interest because the variability in Riverfront’s results will be absorbed entirely by the investors in Riverfront. Accordingly, Riverfront is not consolidated in AFG’s financial statements and the reinsurance agreement is accounted for as ceded reinsurance. AFG’s cost for this coverage is approximately $11 million per year. AFG has reinsured approximately $6.23 billion of its $9.53 billion in face amount of life insurance at December 31, 2019 compared to $7.69 billion of its $10.82 billion in face amount of life insurance at December 31, 2018 . Life written premiums ceded were $20 million , $22 million and $28 million for 2019 , 2018 and 2017 , respectively. Reinsurance recoveries on ceded life policies were $32 million , $38 million and $35 million for 2019 , 2018 and 2017 , respectively. Fixed Annuities For certain products, the liability for “annuity benefits accumulated” includes reserves for excess benefits expected to be paid on future deaths and annuitizations guaranteed withdrawal benefits and accrued persistency and premium bonuses. The liabilities included in AFG’s Balance Sheet for these benefits, excluding the impact of unrealized gains on securities, were as follows at December 31 (in millions): 2019 2018 Expected death and annuitization $ 232 $ 229 Guaranteed withdrawal benefits 625 472 Accrued persistency and premium bonuses 1 1 Variable Ann |
Additional Information
Additional Information | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Information | Additional Information Allowance for Uncollectible Reinsurance AFG’s aggregate allowance for uncollectible reinsurance recoverables was $18 million at both December 31, 2019 and December 31, 2018 . AFG reviews the allowance quarterly and adjusts it as necessary to reflect changes in estimates of uncollectible balances. AFG recorded net expense reductions against the allowance of less than $1 million in 2019 , $2 million in 2018 and less than $1 million in 2017 . In 2017, the allowance was reduced by reinsurance recoverable write-offs of $2 million . See Note A — “ Accounting Policies — Credit Impairment Guidance Effective in 2020 ” for a discussion of accounting guidance adopted on January 1, 2020, which provides a new credit loss model for determining credit-related impairments for reinsurance recoverables and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The new guidance is not expected to have a material impact on AFG’s results of operations or financial position. Financial Instruments — Unfunded Commitments On occasion, AFG and its subsidiaries have entered into financial instrument transactions that may present off-balance-sheet risks of both a credit and market risk nature. These transactions include commitments to fund loans, loan guarantees and commitments to purchase and sell securities or loans. At December 31, 2019 , AFG and its subsidiaries had commitments to fund credit facilities and contribute capital to limited partnerships and limited liability corporations of approximately $897 million . Benefit Plans AFG expensed approximately $39 million in 2019 , $37 million in 2018 and $45 million in 2017 for its retirement and employee savings plans. |
Condensed Financial Information
Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company | AMERICAN FINANCIAL GROUP, INC. — PARENT ONLY SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (In Millions) Condensed Balance Sheet December 31, 2019 2018 Assets: Cash and cash equivalents $ 166 $ 158 Investment in securities 77 65 Investment in subsidiaries (a) 7,623 6,155 Other investments 2 2 Other assets 143 68 Total assets $ 8,011 $ 6,448 Liabilities and Equity: Long-term debt $ 1,473 $ 1,302 Other liabilities 269 176 Shareholders’ equity 6,269 4,970 Total liabilities and equity $ 8,011 $ 6,448 Condensed Statement of Earnings Year ended December 31, 2019 2018 2017 Revenues: Dividends from subsidiaries $ 417 $ 261 $ 681 Equity in undistributed earnings of subsidiaries 888 529 264 Investment and other income 20 2 13 Total revenues 1,325 792 958 Costs and Expenses: Interest charges on intercompany borrowings 8 8 9 Interest charges on other borrowings 68 62 85 Other expenses 113 70 142 Total costs and expenses 189 140 236 Earnings before income taxes 1,136 652 722 Provision for income taxes 239 122 247 Net Earnings Attributable to Shareholders $ 897 $ 530 $ 475 Condensed Statement of Comprehensive Income Net earnings attributable to shareholders $ 897 $ 530 $ 475 Other comprehensive income (loss), net of tax 815 (544 ) 296 Total comprehensive income (loss), net of tax $ 1,712 $ (14 ) $ 771 ________________________ (a) Investment in subsidiaries includes intercompany receivables and payables. Condensed Statement of Cash Flows Year ended December 31, 2019 2018 2017 Operating Activities: Net earnings attributable to shareholders $ 897 $ 530 $ 475 Adjustments: Equity in net earnings of subsidiaries (1,032 ) (637 ) (575 ) Dividends from subsidiaries 408 238 580 Other operating activities, net 33 84 98 Net cash provided by operating activities 306 215 578 Investing Activities: Capital contributions to subsidiaries (60 ) (11 ) (93 ) Returns of capital from subsidiaries 4 23 30 Purchases of investments, property and equipment (3 ) (5 ) (2 ) Proceeds from maturities and redemptions of investments 3 3 2 Net cash provided by (used in) investing activities (56 ) 10 (63 ) Financing Activities: Additional long-term borrowings 315 — 712 Reductions of long-term debt (150 ) — (745 ) Issuances of Common Stock 37 34 37 Repurchases of Common Stock — (6 ) — Cash dividends paid on Common Stock (444 ) (394 ) (417 ) Net cash used in financing activities (242 ) (366 ) (413 ) Net Change in Cash and Cash Equivalents 8 (141 ) 102 Cash and cash equivalents at beginning of year 158 299 197 Cash and cash equivalents at end of year $ 166 $ 158 $ 299 |
Supplementary Insurance Informa
Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES SCHEDULE III — SUPPLEMENTARY INSURANCE INFORMATION THREE YEARS ENDED DECEMBER 31, 2019 (IN MILLIONS) Segment Deferred policy acquisition costs Reserves for future policy benefits, claims and unpaid losses and LAE Unearned premiums Net earned premiums Net investment income Benefits, claims, losses and settlement expenses Amortization of deferred policy acquisition costs Other operating expenses Net written premiums (excluding life) 2019 Property and casualty insurance $ 322 $ 10,232 $ 2,830 $ 5,185 $ 472 $ 3,271 $ 721 $ 1,027 $ 5,342 Annuity 696 40,406 — — 1,792 1,151 198 189 — Other 19 612 — 22 39 36 4 532 3 Total $ 1,037 $ 51,250 $ 2,830 $ 5,207 $ 2,303 $ 4,458 $ 923 $ 1,748 $ 5,345 2018 Property and casualty insurance $ 299 $ 9,741 $ 2,595 $ 4,865 $ 438 $ 3,003 $ 644 $ 957 $ 5,023 Annuity 1,360 36,616 — — 1,638 998 212 174 — Other 23 635 — 24 18 40 4 479 3 Total $ 1,682 $ 46,992 $ 2,595 $ 4,889 $ 2,094 $ 4,041 $ 860 $ 1,610 $ 5,026 2017 Property and casualty insurance $ 270 $ 9,678 $ 2,410 $ 4,579 $ 362 $ 2,955 $ 556 $ 867 $ 4,751 Annuity 920 33,316 — — 1,458 892 130 159 — Other 26 658 — 22 11 26 4 552 3 Total $ 1,216 $ 43,652 $ 2,410 $ 4,601 $ 1,831 $ 3,873 $ 690 $ 1,578 $ 4,754 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of American Financial Group, Inc. and its subsidiaries (“AFG”). Certain reclassifications have been made to prior years 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 December 31, 2019 , and prior to the filing of this Form 10-K, have been evaluated for potential recognition or disclosure herein. The preparation of the financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) 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. On January 1, 2018, AFG adopted Accounting Standards Update (“ASU”) 2014-09, which provides guidance on recognizing revenue when (or as) performance obligations under the contract are satisfied. The guidance also updates the accounting for certain costs associated with obtaining and fulfilling contracts with customers and requires certain new disclosures. Because revenue recognition for insurance contracts and financial instruments (AFG’s primary sources of revenue) were excluded from the scope of the new guidance, the adoption of ASU 2014-09 did not have a material impact on AFG’s results of operations or financial position. |
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 material nonrecurring fair value measurements in 2019 or 2018 . |
Investments | Investments On January 1, 2018, AFG adopted ASU 2016-01, which requires all equity securities other than those accounted for under the equity method to be reported at fair value with holding gains and losses recognized in net earnings. At December 31, 2017, AFG had $1.60 billion in equity securities classified as “available for sale” under the prior guidance with holding gains and losses included in accumulated other comprehensive income (“AOCI”) instead of net earnings. At the date of adoption, the $221 million net unrealized gain on equity securities included in AOCI was reclassified to retained earnings as the cumulative effect of an accounting change. The cumulative effect of the accounting change also includes the net unrealized gain on AFG’s small number of limited partnerships and similar investments carried at cost under the prior guidance that are carried at fair value through net earnings under the new guidance ( $4 million net of tax at the date of adoption). Following the adoption of ASU 2016-01, holding gains and losses on equity securities carried at fair value are generally recorded in realized gains (losses) on securities. However, AFG records holding gains and losses on securities classified as “trading” under previous guidance, its small portfolio of limited partnerships and similar investments carried at fair value and certain other securities classified at purchase as “fair value through net investment income” in net investment income. Under the new guidance, AFG recorded holding gains of $207 million on equity securities in net earnings during 2019 on securities still held at December 31, 2019 and holding losses of $257 million on equity securities in net earnings during 2018 on securities that were still owned at December 31, 2018 . Under the prior guidance, these holding losses would have been recorded in AOCI until the securities were disposed (with exception of any impairment charge that may have been recorded). Because almost all of the equity securities impacted by the new guidance were carried at fair value through AOCI under the prior guidance, the adoption of the new guidance did not have a material impact on AFG’s financial position. Fixed maturity securities classified as “available for sale” are reported at fair value with unrealized gains and losses included in AOCI in AFG’s Balance Sheet. Fixed maturity securities classified as “trading” are reported at fair value with changes in unrealized holding gains or losses during the period included in net investment income. Mortgage and policy loans are carried primarily at the aggregate unpaid balance. Premiums and discounts on fixed maturity securities are amortized using the effective 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. Limited partnerships and similar investments are generally accounted for using the equity method of accounting. Under the equity method, AFG records its share of the earnings or losses of the investee based on when they are reported by the investee in its financial statements rather than in the period in which the investee declares a dividend. AFG’s share of the earnings or losses from equity method investments is generally recorded on a quarter lag due to the timing of the receipt of the investee’s financial statements. AFG’s equity in the earnings (losses) of limited partnerships and similar investments is included in net investment income. Gains or losses on fixed maturity securities classified as “available for sale” 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 and principal-only MBS) and (ii) the equity-based component of certain annuity products (included in annuity benefits accumulated) and related equity index options 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. 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. |
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 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 these 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. 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. 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. AFG has 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 are measured by the change in the fair value of AFG’s investments in the CLOs and management fees earned. |
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 annuity benefits expense and decreases for annuity policy charges are recorded in other income. For traditional fixed annuities, the liability for annuity benefits accumulated represents the account value that had accrued to the benefit of the policyholder as of the balance sheet date. For fixed-indexed annuities (“FIAs”), the liability for annuity benefits accumulated includes an embedded derivative that represents the estimated fair value of the index participation with the remaining component representing the discounted value of the guaranteed minimum contract benefits. 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 (losses) 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 presented in its Balance Sheet as a direct reduction in the carrying value of long-term debt and are amortized over the life of the related debt using the effective interest method as a component of interest expense. Debt issuance costs related to AFG’s revolving credit facilities are included in other assets in AFG’s Balance Sheet. |
Variable Annuity Assets and Liabilities | Variable Annuity Assets and Liabilities Separate accounts related to variable annuities represent the fair value of deposits invested in underlying investment funds on which AFG earns a fee. Investment funds are selected and may be changed only by the policyholder, who retains all investment risk. AFG’s variable annuity contracts contain a guaranteed minimum death benefit (“GMDB”) to be paid if the policyholder dies before the annuity payout period commences. In periods of declining equity markets, the GMDB may exceed the value of the policyholder’s account. A GMDB liability is established for future excess death benefits using assumptions together with a range of reasonably possible scenarios for investment fund performance that are consistent with DPAC capitalization and amortization assumptions. |
Leases | Leases On January 1, 2019, AFG adopted ASU 2016-02, which requires entities that lease assets for terms longer than one year to recognize assets and liabilities for the rights and obligations created by those leases on the balance sheet based on the present value of contractual cash flows. As permitted under the ASU, AFG adopted the guidance on a modified retrospective basis (comparative periods were not adjusted) and elected the following accounting policies and practical expedients: • exclude leases with a term of 12 months or less from the calculation of lease assets and liabilities, • not separate lease and non-lease components except for buildings (office space and storage facilities), • for contracts existing at the date of adoption – not reassess whether a contract is a lease or contains a lease, how initial direct costs were accounted for or whether the lease is an operating or finance lease, and • use hindsight to determine the lease term for leases existing at the date of adoption. Adoption of the new guidance resulted in AFG recognizing a lease liability of $198 million (included in other liabilities) and a corresponding right-of-use asset of $174 million (included in other assets and presented net of $24 million in deferred rent and lease incentives) on January 1, 2019. Deferred rent and lease incentives were recognized as liabilities under the previous guidance and result from the straight-line expensing of operating leases. The adoption of the new guidance did not have a material effect on the AFG’s results of operations or liquidity. See Note K — “ Leases ” for additional disclosures. |
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 represent 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. Noncontrolling interests that are redeemable at the option of the holder are presented separately in the mezzanine section of the balance sheet (between liabilities and equity). |
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. The effect of a change in tax rates on deferred tax assets and liabilities is recorded in net earnings in the period that includes the enactment date. This includes the impact on deferred tax assets or liabilities established through AOCI, which results in an amount equal to the difference between the deferred tax at the historical corporate rate and the newly enacted rate stranded in AOCI. As permitted under guidance adopted effective December 31, 2017 (ASU 2018-02), AFG reclassified the $145 million stranded in AOCI from accounting for the Tax Cuts and Jobs Act of 2017 to retained earnings at December 31, 2017. See Note M — “ Income Taxes ” for further information. |
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. AFG records excess tax benefits or deficiencies for share-based payments through income tax expense in the statement of earnings. In addition, AFG accounts for forfeitures of awards when they occur. |
Benefit Plans | Benefit Plans |
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: 2019 – 1.1 million , 2018 – 1.6 million and 2017 – 2.0 million . There were no anti-dilutive potential common shares related to stock compensation plans or adjustments to net earnings attributable to shareholders in the calculation of diluted earnings per share for the years ended December 31, 2019 , 2018 or 2017 . |
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, property and equipment and businesses. “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. |
Credit Impairment Guidance Effective in 2020 | Credit Impairment Guidance Effective in 2020 In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments , which provides a new loss model for determining credit-related impairments for financial instruments measured at amortized cost (mortgage loans, premiums receivable and reinsurance recoverables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses considers historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. Expected credit losses, and subsequent increases or decreases in such expected losses, will be recorded immediately through net earnings as an allowance that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the balance sheet at the amount expected to be collected. The updated guidance also amends the current other-than-temporary impairment model for available for sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. Subsequent increases or decreases in expected credit losses will be recorded immediately in net earnings through realized gains (losses). AFG will adopt this guidance effective January 1, 2020. The new guidance is not expected to have a material impact on AFG’s results of operations or financial position. |
Acquisitions and Sale of Busi_2
Acquisitions and Sale of Businesses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of estimated fair values of assets acquired and liabilities assumed | The allocation of the purchase price is shown in the table below (in millions): November 30, Total purchase price $ 30 Tangible assets acquired 28 Liabilities acquired 26 Net tangible assets acquired, at fair value 2 Excess purchase price over net tangible assets acquired $ 28 Allocation of excess purchase price: Intangible assets acquired (*) $ 25 Deferred tax on intangible assets acquired (*) (5 ) Goodwill 8 $ 28 (*) Included in Other assets in AFG’s Balance Sheet. |
Segments of Operations (Tables)
Segments of Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | The following tables (in millions) show AFG’s assets, revenues and earnings before income taxes by segment and sub-segment. 2019 2018 2017 Assets Property and casualty insurance (a) $ 19,098 $ 17,681 $ 17,171 Annuity 45,074 39,952 37,179 Other 5,958 5,823 6,308 Total assets $ 70,130 $ 63,456 $ 60,658 Revenues Property and casualty insurance: Premiums earned: Specialty Property and transportation $ 1,828 $ 1,729 $ 1,711 Specialty casualty 2,597 2,403 2,186 Specialty financial 610 598 576 Other specialty 150 135 106 Total premiums earned 5,185 4,865 4,579 Net investment income 472 438 362 Other income 11 10 28 Total property and casualty insurance 5,668 5,313 4,969 Annuity: Net investment income 1,792 1,638 1,458 Other income 108 107 103 Total annuity 1,900 1,745 1,561 Other 382 358 330 Total revenues before realized gains (losses) 7,950 7,416 6,860 Realized gains (losses) on securities 287 (266 ) 5 Total revenues $ 8,237 $ 7,150 $ 6,865 (a) Not allocable to sub-segments. 2019 2018 2017 Earnings Before Income Taxes Property and casualty insurance: Underwriting: Specialty Property and transportation $ 79 $ 120 $ 154 Specialty casualty 175 141 104 Specialty financial 92 66 61 Other specialty (21 ) (5 ) (2 ) Other lines (a) (113 ) (20 ) (75 ) Total underwriting 212 302 242 Investment and other income, net 437 407 349 Total property and casualty insurance 649 709 591 Annuity 362 361 380 Other (b) (190 ) (165 ) (252 ) Total earnings before realized gains (losses) and income taxes 821 905 719 Realized gains (losses) on securities 287 (266 ) 5 Total earnings before income taxes $ 1,108 $ 639 $ 724 (a) Includes special charges to increase asbestos and environmental (“A&E”) reserves of $18 million in both 2019 and 2018 and $89 million in 2017 , respectively. Also includes a $76 million charge in 2019 and $18 million in favorable development recorded in 2017 related to the Neon exited lines. (b) Primarily holding company interest and expenses, including losses on retirement of debt of $5 million in 2019 and $51 million in 2017 and special charges to increase A&E reserves related to AFG’s former railroad and manufacturing operations ( $11 million in 2019 , $9 million in 2018 and $24 million in 2017 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 December 31, 2019 Assets: Available for sale (“AFS”) fixed maturities: U.S. Government and government agencies $ 151 $ 43 $ 15 $ 209 States, municipalities and political subdivisions — 6,858 105 6,963 Foreign government — 172 — 172 Residential MBS — 2,987 173 3,160 Commercial MBS — 892 35 927 Collateralized loan obligations — 4,265 15 4,280 Other asset-backed securities — 5,842 1,286 7,128 Corporate and other 29 21,879 1,758 23,666 Total AFS fixed maturities 180 42,938 3,387 46,505 Trading fixed maturities 2 111 — 113 Equity securities 1,433 67 437 1,937 Equity index call options — 924 — 924 Assets of managed investment entities (“MIE”) 213 4,506 17 4,736 Variable annuity assets (separate accounts) (*) — 628 — 628 Other assets — derivatives — 50 — 50 Total assets accounted for at fair value $ 1,828 $ 49,224 $ 3,841 $ 54,893 Liabilities: Liabilities of managed investment entities $ 206 $ 4,349 $ 16 $ 4,571 Derivatives in annuity benefits accumulated — — 3,730 3,730 Other liabilities — derivatives — 10 — 10 Total liabilities accounted for at fair value $ 206 $ 4,359 $ 3,746 $ 8,311 December 31, 2018 Assets: Available for sale fixed maturities: U.S. Government and government agencies $ 141 $ 83 $ 9 $ 233 States, municipalities and political subdivisions — 6,880 59 6,939 Foreign government — 142 — 142 Residential MBS — 2,547 197 2,744 Commercial MBS — 864 56 920 Collateralized loan obligations — 4,162 116 4,278 Other asset-backed securities — 4,802 731 5,533 Corporate and other 28 19,184 1,996 21,208 Total AFS fixed maturities 169 38,664 3,164 41,997 Trading fixed maturities 9 96 — 105 Equity securities 1,410 68 336 1,814 Equity index call options — 184 — 184 Assets of managed investment entities 203 4,476 21 4,700 Variable annuity assets (separate accounts) (*) — 557 — 557 Other assets — derivatives — 16 — 16 Total assets accounted for at fair value $ 1,791 $ 44,061 $ 3,521 $ 49,373 Liabilities: Liabilities of managed investment entities $ 195 $ 4,297 $ 20 $ 4,512 Derivatives in annuity benefits accumulated — — 2,720 2,720 Other liabilities — derivatives — 49 — 49 Total liabilities accounted for at fair value $ 195 $ 4,346 $ 2,740 $ 7,281 (*) Variable annuity liabilities equal the fair value of variable annuity assets. |
Fair value measurements, Levels 1 and 2 transfers | The transfers between Level 1 and Level 2 for the years ended December 31, 2019 , 2018 and 2017 are reflected in the table below at fair value as of the end of the reporting period (dollars in millions): Level 2 To Level 1 Transfers Level 1 To Level 2 Transfers # of Transfers Fair Value # of Transfers Fair Value 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Perpetual preferred stocks 2 2 4 $ 11 $ 5 $ 23 1 2 2 $ 6 $ 6 $ 11 Common stocks 1 — — — — — — — 1 — — — |
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 Level 3 liabilities. See Note F — “ Derivatives .” Unobservable Input Range Adjustment for insurance subsidiary’s credit risk 0.2% – 2.4% over the risk-free rate Risk margin for uncertainty in cash flows 0.80% reduction in the discount rate Surrenders 3% – 22% of indexed account value Partial surrenders 2% – 9% of indexed account value Annuitizations 0.1% – 1% of indexed account value Deaths 1.5% – 10.6% of indexed account value Budgeted option costs 2.5% – 3.3% of indexed account value |
Changes in asset balances of Level 3 financial assets | Changes in balances of Level 3 financial assets and liabilities carried at fair value during 2019 , 2018 and 2017 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs and $29 million of equity securities transferred into Level 3 in the first quarter of 2018 related to a small number of limited partnerships and similar investments carried at cost under the prior guidance that are carried at fair value through net earnings under new guidance adopted on January 1, 2018, as discussed in Note A — “ Accounting Policies — Investments .” 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 December 31, 2018 Net earnings Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at December 31, 2019 AFS fixed maturities: U.S. government agency $ 9 $ — $ 7 $ — $ (1 ) $ — $ — $ 15 State and municipal 59 — 5 — (3 ) 55 (11 ) 105 Residential MBS 197 6 (3 ) — (20 ) 48 (55 ) 173 Commercial MBS 56 2 — — (12 ) 4 (15 ) 35 Collateralized loan obligations 116 (5 ) 5 — — 28 (129 ) 15 Other asset-backed securities 731 — 6 787 (192 ) 23 (69 ) 1,286 Corporate and other 1,996 (3 ) 55 738 (335 ) 30 (723 ) 1,758 Total AFS fixed maturities 3,164 — 75 1,525 (563 ) 188 (1,002 ) 3,387 Equity securities 336 (5 ) — 52 (2 ) 56 — 437 Assets of MIE 21 (5 ) — 1 — — — 17 Total Level 3 assets $ 3,521 $ (10 ) $ 75 $ 1,578 $ (565 ) $ 244 $ (1,002 ) $ 3,841 Embedded derivatives (a) $ (2,720 ) $ (919 ) $ — $ (333 ) $ 242 $ — $ — $ (3,730 ) Total Level 3 liabilities (b) $ (2,720 ) $ (919 ) $ — $ (333 ) $ 242 $ — $ — $ (3,730 ) (a) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes a favorable adjustment related to the unlocking of actuarial assumptions of $181 million in 2019 . (b) As previously discussed, 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 Balance at December 31, 2017 Net Other Purchases Sales and Transfer Transfer Balance at December 31, 2018 AFS fixed maturities: U.S. government agency $ 8 $ — $ — $ — $ — $ 1 $ — $ 9 State and municipal 148 — (2 ) — (3 ) — (84 ) 59 Residential MBS 122 (9 ) (4 ) — (21 ) 130 (21 ) 197 Commercial MBS 36 — — 20 — — — 56 Collateralized loan obligations 200 (3 ) (13 ) 35 (20 ) 3 (86 ) 116 Other asset-backed securities 544 — (2 ) 391 (228 ) 79 (53 ) 731 Corporate and other 1,044 (10 ) (18 ) 1,221 (204 ) 27 (64 ) 1,996 Total AFS fixed maturities 2,102 (22 ) (39 ) 1,667 (476 ) 240 (308 ) 3,164 Equity securities 165 9 — 155 (6 ) 30 (17 ) 336 Assets of MIE 23 (8 ) — 6 — — — 21 Total Level 3 assets $ 2,290 $ (21 ) $ (39 ) $ 1,828 $ (482 ) $ 270 $ (325 ) $ 3,521 Embedded derivatives (a) $ (2,542 ) $ 204 $ — $ (545 ) $ 163 $ — $ — $ (2,720 ) Total Level 3 liabilities (b) $ (2,542 ) $ 204 $ — $ (545 ) $ 163 $ — $ — $ (2,720 ) (a) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $44 million in 2018 . (b) As previously discussed, 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, 2016 Net earnings Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at December 31, 2017 AFS fixed maturities: U.S. government agency $ 8 $ — $ — $ — $ — $ — $ — $ 8 State and municipal 140 — 2 — (2 ) 10 (2 ) 148 Residential MBS 190 (4 ) 2 1 (40 ) 44 (71 ) 122 Commercial MBS 25 2 — 15 (10 ) 4 — 36 Collateralized loan obligations 174 (1 ) (1 ) 55 (27 ) — — 200 Other asset-backed securities 310 1 2 355 (105 ) 202 (221 ) 544 Corporate and other 712 (5 ) 2 606 (237 ) 29 (63 ) 1,044 Total AFS fixed maturities 1,559 (7 ) 7 1,032 (421 ) 289 (357 ) 2,102 Equity securities 174 (21 ) 10 38 (16 ) — (20 ) 165 Assets of MIE 29 (11 ) — 9 — — (4 ) 23 Total Level 3 assets $ 1,762 $ (39 ) $ 17 $ 1,079 $ (437 ) $ 289 $ (381 ) $ 2,290 Embedded derivatives (a) $ (1,759 ) $ (589 ) $ — $ (300 ) $ 106 $ — $ — $ (2,542 ) Total Level 3 liabilities (b) $ (1,759 ) $ (589 ) $ — $ (300 ) $ 106 $ — $ — $ (2,542 ) (a) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $25 million in 2017 . (b) As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets. |
Changes in liability balances of Level 3 financial liabilities | Changes in balances of Level 3 financial assets and liabilities carried at fair value during 2019 , 2018 and 2017 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs and $29 million of equity securities transferred into Level 3 in the first quarter of 2018 related to a small number of limited partnerships and similar investments carried at cost under the prior guidance that are carried at fair value through net earnings under new guidance adopted on January 1, 2018, as discussed in Note A — “ Accounting Policies — Investments .” 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 December 31, 2018 Net earnings Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at December 31, 2019 AFS fixed maturities: U.S. government agency $ 9 $ — $ 7 $ — $ (1 ) $ — $ — $ 15 State and municipal 59 — 5 — (3 ) 55 (11 ) 105 Residential MBS 197 6 (3 ) — (20 ) 48 (55 ) 173 Commercial MBS 56 2 — — (12 ) 4 (15 ) 35 Collateralized loan obligations 116 (5 ) 5 — — 28 (129 ) 15 Other asset-backed securities 731 — 6 787 (192 ) 23 (69 ) 1,286 Corporate and other 1,996 (3 ) 55 738 (335 ) 30 (723 ) 1,758 Total AFS fixed maturities 3,164 — 75 1,525 (563 ) 188 (1,002 ) 3,387 Equity securities 336 (5 ) — 52 (2 ) 56 — 437 Assets of MIE 21 (5 ) — 1 — — — 17 Total Level 3 assets $ 3,521 $ (10 ) $ 75 $ 1,578 $ (565 ) $ 244 $ (1,002 ) $ 3,841 Embedded derivatives (a) $ (2,720 ) $ (919 ) $ — $ (333 ) $ 242 $ — $ — $ (3,730 ) Total Level 3 liabilities (b) $ (2,720 ) $ (919 ) $ — $ (333 ) $ 242 $ — $ — $ (3,730 ) (a) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes a favorable adjustment related to the unlocking of actuarial assumptions of $181 million in 2019 . (b) As previously discussed, 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 Balance at December 31, 2017 Net Other Purchases Sales and Transfer Transfer Balance at December 31, 2018 AFS fixed maturities: U.S. government agency $ 8 $ — $ — $ — $ — $ 1 $ — $ 9 State and municipal 148 — (2 ) — (3 ) — (84 ) 59 Residential MBS 122 (9 ) (4 ) — (21 ) 130 (21 ) 197 Commercial MBS 36 — — 20 — — — 56 Collateralized loan obligations 200 (3 ) (13 ) 35 (20 ) 3 (86 ) 116 Other asset-backed securities 544 — (2 ) 391 (228 ) 79 (53 ) 731 Corporate and other 1,044 (10 ) (18 ) 1,221 (204 ) 27 (64 ) 1,996 Total AFS fixed maturities 2,102 (22 ) (39 ) 1,667 (476 ) 240 (308 ) 3,164 Equity securities 165 9 — 155 (6 ) 30 (17 ) 336 Assets of MIE 23 (8 ) — 6 — — — 21 Total Level 3 assets $ 2,290 $ (21 ) $ (39 ) $ 1,828 $ (482 ) $ 270 $ (325 ) $ 3,521 Embedded derivatives (a) $ (2,542 ) $ 204 $ — $ (545 ) $ 163 $ — $ — $ (2,720 ) Total Level 3 liabilities (b) $ (2,542 ) $ 204 $ — $ (545 ) $ 163 $ — $ — $ (2,720 ) (a) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $44 million in 2018 . (b) As previously discussed, 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, 2016 Net earnings Other comprehensive income (loss) Purchases and issuances Sales and settlements Transfer into Level 3 Transfer out of Level 3 Balance at December 31, 2017 AFS fixed maturities: U.S. government agency $ 8 $ — $ — $ — $ — $ — $ — $ 8 State and municipal 140 — 2 — (2 ) 10 (2 ) 148 Residential MBS 190 (4 ) 2 1 (40 ) 44 (71 ) 122 Commercial MBS 25 2 — 15 (10 ) 4 — 36 Collateralized loan obligations 174 (1 ) (1 ) 55 (27 ) — — 200 Other asset-backed securities 310 1 2 355 (105 ) 202 (221 ) 544 Corporate and other 712 (5 ) 2 606 (237 ) 29 (63 ) 1,044 Total AFS fixed maturities 1,559 (7 ) 7 1,032 (421 ) 289 (357 ) 2,102 Equity securities 174 (21 ) 10 38 (16 ) — (20 ) 165 Assets of MIE 29 (11 ) — 9 — — (4 ) 23 Total Level 3 assets $ 1,762 $ (39 ) $ 17 $ 1,079 $ (437 ) $ 289 $ (381 ) $ 2,290 Embedded derivatives (a) $ (1,759 ) $ (589 ) $ — $ (300 ) $ 106 $ — $ — $ (2,542 ) Total Level 3 liabilities (b) $ (1,759 ) $ (589 ) $ — $ (300 ) $ 106 $ — $ — $ (2,542 ) (a) Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $25 million in 2017 . (b) As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets. |
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 at December 31 are summarized below (in millions): Carrying Fair Value Value Total Level 1 Level 2 Level 3 2019 Financial assets: Cash and cash equivalents $ 2,314 $ 2,314 $ 2,314 $ — $ — Mortgage loans 1,329 1,346 — — 1,346 Policy loans 164 164 — — 164 Total financial assets not accounted for at fair value $ 3,807 $ 3,824 $ 2,314 $ — $ 1,510 Financial liabilities: Annuity benefits accumulated (*) $ 40,159 $ 40,182 $ — $ — $ 40,182 Long-term debt 1,473 1,622 — 1,619 3 Total financial liabilities not accounted for at fair value $ 41,632 $ 41,804 $ — $ 1,619 $ 40,185 2018 Financial assets: Cash and cash equivalents $ 1,515 $ 1,515 $ 1,515 $ — $ — Mortgage loans 1,068 1,056 — — 1,056 Policy loans 174 174 — — 174 Total financial assets not accounted for at fair value $ 2,757 $ 2,745 $ 1,515 $ — $ 1,230 Financial liabilities: Annuity benefits accumulated (*) $ 36,384 $ 34,765 $ — $ — $ 34,765 Long-term debt 1,302 1,231 — 1,228 3 Total financial liabilities not accounted for at fair value $ 37,686 $ 35,996 $ — $ 1,228 $ 34,768 (*) Excludes $247 million and $232 million of life contingent annuities in the payout phase at December 31, 2019 and 2018 , respectively. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available for sale fixed maturities and equity securities | Available for sale fixed maturities at December 31 consisted of the following (in millions): 2019 2018 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 $ 199 $ 10 $ — $ 10 $ 209 $ 235 $ 1 $ (3 ) $ (2 ) $ 233 States municipalities and political subdivisions 6,604 363 (4 ) 359 6,963 6,825 169 (55 ) 114 6,939 Foreign government 170 3 (1 ) 2 172 140 2 — 2 142 Residential MBS 2,900 265 (5 ) 260 3,160 2,476 277 (9 ) 268 2,744 Commercial MBS 896 31 — 31 927 905 17 (2 ) 15 920 Collateralized loan obligations 4,307 10 (37 ) (27 ) 4,280 4,350 1 (73 ) (72 ) 4,278 Other asset-backed securities 6,992 156 (20 ) 136 7,128 5,431 129 (27 ) 102 5,533 Corporate and other 22,456 1,231 (21 ) 1,210 23,666 21,475 167 (434 ) (267 ) 21,208 Total fixed maturities $ 44,524 $ 2,069 $ (88 ) $ 1,981 $ 46,505 $ 41,837 $ 763 $ (603 ) $ 160 $ 41,997 |
Equity securities reported at fair value | Equity securities, which are reported at fair value with holding gains and losses recognized in net earnings, consisted of the following at December 31 (in millions): 2019 2018 Fair Value Fair Value Actual over (under) Actual over (under) Cost Fair Value Cost Cost Fair Value Cost Common stocks $ 1,164 $ 1,283 $ 119 $ 1,241 $ 1,148 $ (93 ) Perpetual preferred stocks 640 654 14 705 666 (39 ) Total equity securities carried at fair value $ 1,804 $ 1,937 $ 133 $ 1,946 $ 1,814 $ (132 ) |
Available for sale securities in a continuous unrealized loss position | The following tables show gross unrealized losses (dollars in millions) on available for sale fixed maturities by investment category and length of time that individual securities have been in a continuous unrealized loss position at the following balance sheet dates. 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 December 31, 2019 Fixed maturities: U.S. Government and government agencies $ — $ 16 100 % $ — $ 11 100 % States, municipalities and political subdivisions (3 ) 254 99 % (1 ) 82 99 % Foreign government (1 ) 70 99 % — — — % Residential MBS (4 ) 509 99 % (1 ) 69 99 % Commercial MBS — 17 100 % — — — % Collateralized loan obligations (11 ) 1,284 99 % (26 ) 1,728 99 % Other asset-backed securities (12 ) 1,211 99 % (8 ) 123 94 % Corporate and other (13 ) 1,100 99 % (8 ) 211 96 % Total fixed maturities $ (44 ) $ 4,461 99 % $ (44 ) $ 2,224 98 % December 31, 2018 Fixed maturities: U.S. Government and government agencies $ — $ 41 100 % $ (3 ) $ 120 98 % States, municipalities and political subdivisions (23 ) 1,497 98 % (32 ) 902 97 % Foreign government — 18 100 % — 4 100 % Residential MBS (4 ) 279 99 % (5 ) 139 97 % Commercial MBS (1 ) 147 99 % (1 ) 30 97 % Collateralized loan obligations (61 ) 3,540 98 % (12 ) 197 94 % Other asset-backed securities (16 ) 1,866 99 % (11 ) 432 98 % Corporate and other (306 ) 10,378 97 % (128 ) 2,078 94 % Total fixed maturities $ (411 ) $ 17,766 98 % $ (192 ) $ 3,902 95 % |
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): 2019 2018 2017 Balance at January 1 $ 142 $ 145 $ 153 Additional credit impairments on: Previously impaired securities 1 1 1 Securities without prior impairments — 1 3 Reductions due to sales or redemptions (9 ) (5 ) (12 ) Balance at December 31 $ 134 $ 142 $ 145 |
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 December 31, 2019 (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 $ 1,764 $ 1,793 4 % After one year through five years 10,613 11,044 24 % After five years through ten years 13,513 14,419 31 % After ten years 3,539 3,754 8 % 29,429 31,010 67 % Collateralized loan obligations and other ABS (average life of approximately 4 years) 11,299 11,408 24 % MBS (average life of approximately 4-1/2 years) 3,796 4,087 9 % Total $ 44,524 $ 46,505 100 % |
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 Net December 31, 2019 Net unrealized gain on: Fixed maturities — annuity segment (*) $ 1,611 $ (338 ) $ 1,273 Fixed maturities — all other 370 (78 ) 292 Total fixed maturities 1,981 (416 ) 1,565 Deferred policy acquisition costs — annuity segment (681 ) 143 (538 ) Annuity benefits accumulated (219 ) 46 (173 ) Life, accident and health reserves (1 ) — (1 ) Unearned revenue 11 (2 ) 9 Total net unrealized gain on marketable securities $ 1,091 $ (229 ) $ 862 December 31, 2018 Net unrealized gain on: Fixed maturities — annuity segment (*) $ 101 $ (21 ) $ 80 Fixed maturities — all other 59 (13 ) 46 Total fixed maturities 160 (34 ) 126 Deferred policy acquisition costs — annuity segment (42 ) 9 (33 ) Annuity benefits accumulated (14 ) 3 (11 ) Unearned revenue 1 — 1 Total net unrealized gain on marketable securities $ 105 $ (22 ) $ 83 (*) Net 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. 2019 2018 2017 Investment income: Fixed maturities $ 1,915 $ 1,742 $ 1,607 Equity securities: Dividends 85 79 73 Change in fair value (*) 39 22 6 Equity in earnings of partnerships and similar investments 154 161 64 Other 132 112 102 Gross investment income 2,325 2,116 1,852 Investment expenses (22 ) (22 ) (21 ) Net investment income $ 2,303 $ 2,094 $ 1,831 (*) Although the change in the fair value of the majority of AFG’s equity securities is recorded in realized gains (losses) on securities, AFG records holding gains and losses in net investment income on equity securities classified as “trading” under previous guidance and on a small portfolio of limited partnership and similar investments that do not qualify for the equity method of accounting. |
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) included in AOCI related to fixed maturity and equity security investments are summarized as follows (in millions): 2019 2018 Realized gains (losses) Realized gains (losses) Before Impairments Impairments Total Change in Unrealized Before Impairments Impairments Total Change in Unrealized Fixed maturities $ 26 $ (29 ) $ (3 ) $ 1,821 $ 6 $ (26 ) $ (20 ) $ (1,181 ) Equity securities 277 — 277 — (265 ) — (265 ) — Mortgage loans and other investments 3 — 3 — 1 — 1 — Other (*) — 10 10 (835 ) 11 7 18 502 Total pretax 306 (19 ) 287 986 (247 ) (19 ) (266 ) (679 ) Tax effects (64 ) 4 (60 ) (207 ) 52 4 56 143 Net of tax $ 242 $ (15 ) $ 227 $ 779 $ (195 ) $ (15 ) $ (210 ) $ (536 ) 2017 Realized gains (losses) Before Impairments Impairments Total Change in Unrealized Fixed maturities $ 17 $ (20 ) $ (3 ) $ 532 Equity securities 70 (64 ) 6 128 Mortgage loans and other investments (6 ) (4 ) (10 ) — Other (*) (3 ) 15 12 (219 ) Total pretax 78 (73 ) 5 441 Tax effects: Reclassify impact of U.S. corporate tax rate change — — — 149 Other (27 ) 25 (2 ) (154 ) Total tax effects (27 ) 25 (2 ) (5 ) Net of tax $ 51 $ (48 ) $ 3 $ 436 (*) Primarily adjustments to deferred policy acquisition costs and reserves related to the annuity business. |
Holding gains (losses) on equity securities still held | AFG recorded net holding gains (losses) on equity securities during 2019 and 2018 on securities that were still owned at December 31 as follows (in millions): 2019 2018 Included in realized gains (losses) $ 169 $ (279 ) Included in net investment income 38 22 $ 207 $ (257 ) |
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 investment transactions consisted of the following (in millions): 2019 2018 2017 Gross gains $ 35 $ 22 $ 43 Gross losses (19 ) (14 ) (20 ) |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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): December 31, 2019 December 31, 2018 Derivative Balance Sheet Line Asset Liability Asset Liability MBS with embedded derivatives Fixed maturities $ 102 $ — $ 109 $ — Public company warrants Equity securities — — — — Fixed-indexed and variable-indexed annuities (embedded derivative) Annuity benefits accumulated — 3,730 — 2,720 Equity index call options Equity index call options 924 — 184 — Equity index put options Other liabilities — 1 — 1 Reinsurance contract (embedded derivative) Other liabilities — 4 — 2 $ 1,026 $ 3,735 $ 293 $ 2,723 |
Summary of gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives | The following table summarizes the gains (losses) included in AFG’s Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting for 2019 , 2018 and 2017 (in millions): Derivative Statement of Earnings Line 2019 2018 2017 MBS with embedded derivatives Realized gains (losses) on securities $ 10 $ (7 ) $ (6 ) Public company warrants Realized gains (losses) on securities (1 ) (3 ) — Fixed-indexed and variable-indexed annuities (embedded derivative) (*) Annuity benefits (919 ) 204 (589 ) Equity index call options Annuity benefits 804 (298 ) 494 Equity index put options Annuity benefits 2 (1 ) — Reinsurance contracts (embedded derivative) Net investment income (2 ) 2 (2 ) $ (106 ) $ (103 ) $ (103 ) (*) The change in fair value of the embedded derivative includes a favorable adjustment related to unlocking of actuarial assumptions of $181 million in 2019 and losses of $44 million in 2018 and $25 million in 2017 . |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 Other Deferred Deferred Sales Consolidated Costs Costs Inducements PVFP Subtotal Unrealized (*) Total Total Balance at December 31, 2016 $ 238 $ 1,110 $ 110 $ 46 $ 1,266 $ (265 ) $ 1,001 $ 1,239 Additions 588 225 4 — 229 — 229 817 Amortization: Periodic amortization (556 ) (161 ) (19 ) (8 ) (188 ) — (188 ) (744 ) Annuity unlocking — 34 6 1 41 — 41 41 Included in realized gains — 9 1 — 10 — 10 10 Foreign currency translation — — — — — — — — Other — — — 10 10 — 10 10 Change in unrealized — — — — — (157 ) (157 ) (157 ) Balance at December 31, 2017 270 1,217 102 49 1,368 (422 ) 946 1,216 Additions 675 263 2 — 265 — 265 940 Amortization: Periodic amortization (644 ) (238 ) (19 ) (7 ) (264 ) — (264 ) (908 ) Annuity unlocking — 29 — — 29 — 29 29 Included in realized gains — 14 1 — 15 — 15 15 Foreign currency translation (2 ) — — — — — — (2 ) Change in unrealized — — — — — 392 392 392 Balance at December 31, 2018 299 1,285 86 42 1,413 (30 ) 1,383 1,682 Additions 744 206 2 — 208 — 208 952 Amortization: Periodic amortization (721 ) (120 ) (13 ) (6 ) (139 ) — (139 ) (860 ) Annuity unlocking — (76 ) (1 ) — (77 ) — (77 ) (77 ) Included in realized gains — 8 1 — 9 — 9 9 Foreign currency translation — — — — — — — — Change in unrealized — — — — — (669 ) (669 ) (669 ) Balance at December 31, 2019 $ 322 $ 1,303 $ 75 $ 36 $ 1,414 $ (699 ) $ 715 $ 1,037 (*) Adjustments to DPAC related to net unrealized gains/losses on securities and cash flow hedges. |
Managed Investment Entities (Ta
Managed Investment Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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): Year ended December 31, 2019 2018 2017 Investment in CLO tranches $ 165 $ 188 $ 215 Gains (losses) on change in fair value of assets/liabilities (a): Assets 80 (189 ) (8 ) Liabilities (110 ) 168 20 Management fees paid to AFG 15 16 18 CLO earnings attributable to AFG Shareholders (b) 4 7 23 (a) Included in revenues in AFG’s Statement of Earnings. (b) Included in earnings before income taxes in AFG’s Statement of Earnings. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying value of goodwill by reporting segment | Changes in the carrying value of goodwill during 2017 , 2018 and 2019 , by reporting segment, are presented in the following table (in millions): Property and Casualty Annuity Total Balance at January 1, 2017 and December 31, 2017 $ 168 $ 31 $ 199 Acquisition of subsidiary in 2018 8 — 8 Balance at December 31, 2018 and December 31, 2019 $ 176 $ 31 $ 207 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | Long-term debt consisted of the following at December 31 (in millions): 2019 2018 Principal Discount and Issue Costs Carrying Value Principal Discount and Issue Costs Carrying Value Direct Senior Obligations of AFG: 4.50% Senior Notes due June 2047 $ 590 $ (2 ) $ 588 $ 590 $ (2 ) $ 588 3.50% Senior Notes due August 2026 425 (3 ) 422 425 (4 ) 421 Other 3 — 3 3 — 3 1,018 (5 ) 1,013 1,018 (6 ) 1,012 Direct Subordinated Obligations of AFG: 5.125% Subordinated Debentures due December 2059 200 (6 ) 194 — — — 6% Subordinated Debentures due November 2055 150 (5 ) 145 150 (5 ) 145 5.875% Subordinated Debentures due March 2059 125 (4 ) 121 — — — 6-1/4% Subordinated Debentures due September 2054 — — — 150 (5 ) 145 475 (15 ) 460 300 (10 ) 290 $ 1,493 $ (20 ) $ 1,473 $ 1,318 $ (16 ) $ 1,302 |
Leases Leases (Tables)
Leases Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease activity | The following table details AFG’s lease activity for the year ended December 31, 2019 (in millions): 2019 Lease expense: Operating leases $ 46 Short-term leases 1 Total lease expense $ 47 |
Other operating lease liability information | Other operating lease information for the year ended December 31, 2019 (in millions): Cash paid for lease liabilities reported in operating cash flows $ 49 Right-of-use assets obtained under new leases 19 |
Undiscounted contractual maturities of operating lease liabilities | The following table presents the undiscounted contractual maturities of AFG’s operating lease liability at December 31, 2019 (in millions): Operating lease payments: 2020 $ 46 2021 41 2022 32 2023 27 2024 20 Thereafter 35 Total lease payments 201 Impact of discounting (21 ) Operating lease liability $ 180 |
Schedule of weighted-average remaining lease term and weighted-average discount rate | Weighted-average remaining lease term 5.5 years Weighted-average discount rate 4.1 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Summary of restricted stock awards activity | The restricted Common Stock that AFG has granted generally vests over a four-year period. Data relating to grants of restricted stock is presented below: Shares Average Grant Date Fair Value Outstanding at January 1, 2019 865,930 $ 84.06 Granted 232,635 $ 99.28 Vested (167,326 ) $ 66.10 Forfeited (11,304 ) $ 90.26 Outstanding at December 31, 2019 919,935 $ 91.10 |
Summary of stock options activity | Data for stock options issued under AFG’s stock incentive plans is presented below: Shares Average Exercise Price Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Outstanding at January 1, 2019 2,667,442 $ 48.20 Exercised (747,167 ) $ 41.13 Forfeited/Cancelled (2,485 ) $ 61.88 Outstanding at December 31, 2019 1,917,790 $ 50.93 3.7 years $ 113 Options exercisable at December 31, 2019 1,779,941 $ 50.13 3.6 years $ 107 |
Components of accumulated other comprehensive income (loss) | The progression of the components of accumulated other comprehensive income follows (in millions): Other Comprehensive Income (Loss) AOCI Beginning Balance Pretax Tax Net of tax Attributable to noncontrolling interests Attributable to shareholders Other (c) AOCI Ending Balance Year ended December 31, 2019 Net unrealized gains on securities: Unrealized holding gains on securities arising during the period $ 997 $ (209 ) $ 788 $ — $ 788 Reclassification adjustment for realized (gains) losses included in net earnings (a) (11 ) 2 (9 ) — (9 ) Total net unrealized gains on securities (b) $ 83 986 (207 ) 779 — 779 $ — $ 862 Net unrealized gains (losses) on cash flow hedges (11 ) 36 (8 ) 28 — 28 — 17 Foreign currency translation adjustments (16 ) 7 — 7 — 7 — (9 ) Pension and other postretirement plans adjustments (8 ) 1 — 1 — 1 — (7 ) Total $ 48 $ 1,030 $ (215 ) $ 815 $ — $ 815 $ — $ 863 Year ended December 31, 2018 Net unrealized gains (losses) on securities: Unrealized holding losses on securities arising during the period $ (689 ) $ 145 $ (544 ) $ — $ (544 ) Reclassification adjustment for realized (gains) losses included in net earnings (a) 10 (2 ) 8 — 8 Total net unrealized gains (losses) on securities (b) $ 840 (679 ) 143 (536 ) — (536 ) $ (221 ) $ 83 Net unrealized gains (losses) on cash flow hedges (13 ) 2 — 2 — 2 — (11 ) Foreign currency translation adjustments (6 ) (9 ) (1 ) (10 ) — (10 ) — (16 ) Pension and other postretirement plans adjustments (8 ) — — — — — — (8 ) Total $ 813 $ (686 ) $ 142 $ (544 ) $ — $ (544 ) $ (221 ) $ 48 Year ended December 31, 2017 Net unrealized gains on securities: Unrealized holding gains on securities arising during the period $ 456 $ (159 ) $ 297 $ — $ 297 Reclassification adjustment for realized (gains) losses included in net earnings (a) (15 ) 5 (10 ) — (10 ) Total net unrealized gains on securities (b) $ 404 441 (154 ) 287 — 287 $ 149 $ 840 Net unrealized losses on cash flow hedges (7 ) (6 ) 2 (4 ) — (4 ) (2 ) (13 ) Foreign currency translation adjustments (15 ) 9 3 12 — 12 (3 ) (6 ) Pension and other postretirement plans adjustments (7 ) 1 — 1 — 1 (2 ) (8 ) Total $ 375 $ 445 $ (149 ) $ 296 $ — $ 296 $ 142 $ 813 (a) The reclassification adjustment out of net unrealized gains (losses) 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 (b) Includes net unrealized gains of $55 million at December 31, 2019 compared to $58 million and $68 million at December 31, 2018 and 2017 , related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings. (c) On January 1, 2018, AFG adopted new guidance that requires all equity securities other than those accounted for under the equity method to be reported at fair value with holding gains and losses recognized in net earnings. At the date of adoption, the $221 million net unrealized gain on equity securities classified as available for sale (with unrealized holding gains and losses reported in AOCI) under the prior guidance was reclassified from AOCI to retained earnings as the cumulative effect of an accounting change. Other also includes the December 2017 reclassification of $145 million stranded in AOCI from accounting for the Tax Cuts and Jobs Act of 2017 to retained earnings (see Note A — “ Accounting Policies — Income Taxes ”) and the impact on AOCI of the December 2017 sale of redeemable noncontrolling interests in Neon . |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 ( 21% in 2019 and 2018 and 35% in 2017) to the provision for income taxes as shown in AFG’s Statement of Earnings (dollars in millions): 2019 2018 2017 Amount % of EBT Amount % of EBT Amount % of EBT Earnings before income taxes (“EBT”) $ 1,108 $ 639 $ 724 Income taxes at statutory rate $ 233 21 % $ 134 21 % $ 253 35 % Effect of: Tax exempt interest (14 ) (1 %) (13 ) (2 %) (23 ) (3 %) Stock-based compensation (8 ) (1 %) (8 ) (1 %) (16 ) (2 %) Dividend received deduction (4 ) — % (4 ) (1 %) (8 ) (1 %) Adjustment to prior year taxes (3 ) — % (8 ) (1 %) (4 ) (1 %) Employee stock ownership plan dividend paid deduction (2 ) — % (3 ) (1 %) (5 ) (1 %) Change in valuation allowance (excluding change in tax rate) 17 2 % 11 2 % (7 ) (1 %) Nondeductible expenses 8 1 % 7 1 % 6 1 % Foreign operations 4 — % (2 ) — % 21 3 % Neon restructuring — — % — — % (56 ) (8 %) Change in U.S corporate tax rate — — % — — % 83 11 % Other 8 — % 8 1 % 3 1 % Provision for income taxes as shown in the statement of earnings $ 239 22 % $ 122 19 % $ 247 34 % |
Components of income tax provision (credit) | The total income tax provision (credit) consists of (in millions): 2019 2018 2017 Current taxes: Federal $ 250 $ 196 $ 153 State 10 8 6 Foreign 2 — — Deferred taxes: Federal (23 ) (82 ) 5 Impact of change in U.S. corporate tax rate — — 83 Total Federal deferred taxes (23 ) (82 ) 88 Provision for income taxes $ 239 $ 122 $ 247 |
Summary of operating loss carryforwards | For income tax purposes, AFG and its subsidiaries had the following carryforwards available at December 31, 2019 (in millions): Expiring Amount Operating Loss – U.S. 2020 - 2022 $ 93 Operating Loss – United Kingdom indefinite 305 (*) (*) £231 million |
Components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities included in AFG’s Balance Sheet at December 31 were as follows (in millions): 2019 2018 Excluding Unrealized Gains Impact of Unrealized Gains Total Excluding Unrealized Gains Impact of Unrealized Gains Total Deferred tax assets: Federal net operating loss carryforwards $ 19 $ — $ 19 $ 23 $ — $ 23 Foreign underwriting losses 118 — 118 93 — 93 Insurance claims and reserves 829 46 875 740 3 743 Employee benefits 93 — 93 88 — 88 Other, net 45 (2 ) 43 44 — 44 Total deferred tax assets before valuation allowance 1,104 44 1,148 988 3 991 Valuation allowance against deferred tax assets (140 ) — (140 ) (119 ) — (119 ) Total deferred tax assets 964 44 1,008 869 3 872 Deferred tax liabilities: Investment securities (140 ) (416 ) (556 ) (36 ) (34 ) (70 ) Deferred policy acquisition costs (293 ) 143 (150 ) (300 ) 9 (291 ) Insurance claims and reserves transition liability (93 ) — (93 ) (110 ) — (110 ) Real estate, property and equipment (35 ) — (35 ) (36 ) — (36 ) Total deferred tax liabilities (561 ) (273 ) (834 ) (482 ) (25 ) (507 ) Net deferred tax asset (liability) $ 403 $ (229 ) $ 174 $ 387 $ (22 ) $ 365 |
Progression of the liability for uncertain tax positions, excluding interest and penalties | A progression of the liability for uncertain tax positions, excluding interest and penalties, follows (in millions): 2019 2018 2017 Balance at January 1 $ — $ — $ 1 Additions for tax positions of prior years — — — Reductions for tax positions of prior years — — — Additions for tax positions of current year — — — Settlements — — (1 ) Balance at December 31 $ — $ — $ — |
Quarterly Operating Results (_2
Quarterly Operating Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly operating results | The following are quarterly results of consolidated operations for the two years ended December 31, 2019 (in millions, except per share amounts). Quarterly earnings per share do not add to year-to-date amounts due to changes in shares outstanding. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2019 Revenues $ 2,024 $ 1,960 $ 2,123 $ 2,130 $ 8,237 Net earnings, including noncontrolling interests 326 209 143 191 869 Net earnings attributable to shareholders 329 210 147 211 897 Earnings attributable to shareholders per Common Share: Basic $ 3.68 $ 2.34 $ 1.64 $ 2.33 $ 9.98 Diluted 3.63 2.31 1.62 2.30 9.85 Average number of Common Shares: Basic 89.4 89.7 90.0 90.2 89.9 Diluted 90.7 91.0 91.1 91.3 91.0 2018 Revenues $ 1,619 $ 1,833 $ 2,008 $ 1,690 $ 7,150 Net earnings (losses), including noncontrolling interests 141 208 203 (35 ) 517 Net earnings (losses) attributable to shareholders 145 210 204 (29 ) 530 Earnings (losses) attributable to shareholders per Common Share: Basic $ 1.64 $ 2.36 $ 2.30 $ (0.33 ) $ 5.95 Diluted 1.60 2.31 2.26 (0.33 ) 5.85 Average number of Common Shares: Basic 88.6 89.0 89.1 89.3 89.0 Diluted 90.4 90.7 90.7 89.3 90.6 |
Quarterly information on realized gains (losses) | Pretax realized gains (losses) on securities, which resulted primarily from changes in the fair value of equity securities, were as follows (in millions): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2019 — change in fair value of equity securities $ 182 $ 44 $ (15 ) $ 67 $ 278 2019 — other realized gains (losses) 2 12 (3 ) (2 ) 9 2018 — change in fair value of equity securities (95 ) 23 33 (223 ) (262 ) 2018 — other realized gains (losses) 2 8 1 (15 ) (4 ) |
Quarterly information on the impact of items on fair value accounting for annuities | The impact of unlocking, changes in the fair value of derivatives related to FIAs, and other impacts of changes in the stock market and interest rates on the accounting for FIAs over or under the cost of the equity index options purchased to mitigate the risk in the index-based component of those FIAs were as follows, net of the related acceleration/deceleration of the amortization of deferred policy acquisition costs and deferred sales inducements (in millions): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2019 $ (11 ) $ (33 ) $ (27 ) $ 24 $ (47 ) 2018 15 (14 ) 17 (66 ) (48 ) |
Quarterly information on favorable (adverse) development on unpaid loss and loss adjustment expenses | Favorable prior year development of AFG’s liability for property and casualty losses and loss adjustment expenses (”LAE”) was as follows (in millions): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2019 $ 45 $ 41 $ 12 $ 45 $ 143 2018 56 44 31 61 192 |
Quarterly information on catastrophe losses | AFG’s property and casualty operations recorded catastrophe losses, including reinstatement premiums, as follows (in millions): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year 2019 $ (12 ) $ (12 ) $ (22 ) $ (15 ) $ (61 ) 2018 (13 ) (16 ) (38 ) (38 ) (105 ) |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Reconciliation of beginning and ending liability for unpaid losses and loss adjustment expenses | The following table provides an analysis of changes in the liability for losses and loss adjustment expenses over the past three years (in millions): 2019 2018 2017 Balance at beginning of period $ 9,741 $ 9,678 $ 8,563 Less reinsurance recoverables, net of allowance 2,942 2,957 2,302 Net liability at beginning of period 6,799 6,721 6,261 Provision for losses and LAE occurring in the current year 3,414 3,195 3,019 Net increase (decrease) in the provision for claims of prior years: Special A&E charges 18 18 89 Neon exited lines charge 7 — (18 ) Other (168 ) (210 ) (135 ) Total losses and LAE incurred 3,271 3,003 2,955 Payments for losses and LAE of: Current year (1,076 ) (963 ) (942 ) Prior years (1,790 ) (1,639 ) (1,586 ) Total payments (2,866 ) (2,602 ) (2,528 ) Reserves of businesses disposed (*) — (319 ) — Foreign currency translation and other 4 (4 ) 33 Net liability at end of period 7,208 6,799 6,721 Add back reinsurance recoverables, net of allowance 3,024 2,942 2,957 Gross unpaid losses and LAE included in the balance sheet $ 10,232 $ 9,741 $ 9,678 (*) Reflects the reinsurance to close transactions at Neon (discussed below). |
Short-duration insurance contracts, reconciliation of claims development to liability | A reconciliation of incurred and paid claims development information to the aggregate carrying amount of the liability for unpaid losses and LAE, with separate disclosure of reinsurance recoverables on unpaid claims is shown below (in millions): 2019 Unpaid losses and allocated LAE, net of reinsurance: Specialty Property and transportation $ 1,171 Specialty casualty 4,056 Specialty financial 221 Other specialty 313 Total Specialty (excluding foreign reserves) 5,761 Other reserves Reserves for foreign operations: Neon Lloyd’s business 357 Other subsidiaries 289 A&E reserves 383 Unallocated LAE 361 Other 57 Total other reserves 1,447 Total reserves, net of reinsurance 7,208 Add back reinsurance recoverables, net of allowance 3,024 Gross unpaid losses and LAE included in the balance sheet $ 10,232 |
Short-duration insurance contracts, claims development | The following claims development tables and associated disclosures related to short-duration insurance contracts are prepared by sub-segment within the property and casualty insurance business for the most recent 10 accident years. AFG determines its claim counts at the claimant or policy feature level depending on the particular facts and circumstances of the underlying claim. While the methodology is generally consistent within each sub-segment, there are minor differences between and within the sub-segments. The methods used to summarize claim counts have not changed significantly over the time periods reported in the tables below. Property and transportation (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 679 $ 639 $ 645 $ 652 $ 655 $ 655 $ 660 $ 657 $ 655 $ 655 $ 3 138,105 2011 811 799 813 827 837 850 846 844 843 5 138,309 2012 864 857 871 883 894 890 886 881 8 143,122 2013 882 870 872 878 878 877 873 10 138,864 2014 844 828 817 820 815 808 15 132,971 2015 818 784 779 777 777 23 134,618 2016 746 716 714 706 46 120,884 2017 889 847 843 80 140,067 2018 932 902 119 128,428 2019 1,111 288 138,508 Total $ 8,399 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (a) 2010 $ 316 $ 486 $ 535 $ 596 $ 626 $ 637 $ 642 $ 647 $ 649 $ 650 99.2 % 2011 365 667 727 771 803 821 829 833 834 98.9 % 2012 572 708 772 816 842 856 882 869 98.6 % 2013 438 702 760 804 831 847 858 98.3 % 2014 329 632 693 744 770 783 96.9 % 2015 359 582 667 707 736 94.7 % 2016 294 521 577 618 87.5 % 2017 379 640 696 82.6 % 2018 396 676 74.9 % 2019 527 47.4 % Total $ 7,247 Unpaid losses and LAE — years 2010 through 2019 1,152 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) 19 Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 1,171 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 47.1 % 29.8 % 7.7 % 6.0 % 3.6 % 1.8 % 1.5 % (0.1 %) 0.2 % 0.2 % Cumulative 47.1 % 76.9 % 84.6 % 90.6 % 94.2 % 96.0 % 97.5 % 97.4 % 97.6 % 97.8 % (a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). Specialty casualty (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 871 $ 887 $ 888 $ 867 $ 880 $ 870 $ 868 $ 866 $ 855 $ 846 $ 28 56,716 2011 852 849 839 848 834 828 826 817 810 37 54,755 2012 901 892 885 885 883 877 849 842 53 54,682 2013 968 949 945 940 945 926 916 77 54,929 2014 1,035 1,008 1,008 1,006 982 967 98 56,445 2015 1,081 1,043 1,041 1,042 1,024 126 57,427 2016 1,131 1,122 1,116 1,101 236 56,000 2017 1,211 1,221 1,204 372 56,073 2018 1,277 1,307 548 57,081 2019 1,308 773 51,198 Total $ 10,325 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (a) 2010 $ 191 $ 412 $ 560 $ 645 $ 700 $ 736 $ 757 $ 771 $ 783 $ 798 94.3 % 2011 174 383 522 612 662 694 714 731 745 92.0 % 2012 173 385 516 621 684 723 745 761 90.4 % 2013 182 396 554 666 729 766 797 87.0 % 2014 190 412 574 680 755 801 82.8 % 2015 178 411 577 702 792 77.3 % 2016 186 418 584 713 64.8 % 2017 200 422 612 50.8 % 2018 210 475 36.3 % 2019 212 16.2 % Total $ 6,706 Unpaid losses and LAE — years 2010 through 2019 3,619 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) 437 Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 4,056 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 18.7 % 22.9 % 16.4 % 11.5 % 7.3 % 4.3 % 2.7 % 1.9 % 1.6 % 1.8 % Cumulative 18.7 % 41.6 % 58.0 % 69.5 % 76.8 % 81.1 % 83.8 % 85.7 % 87.3 % 89.1 % (a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). Specialty financial (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 138 $ 145 $ 132 $ 132 $ 135 $ 133 $ 130 $ 127 $ 126 $ 126 $ 1 21,925 2011 138 157 155 153 147 144 143 139 137 — 16,369 2012 163 163 151 139 137 135 132 127 1 21,076 2013 140 145 137 131 127 126 122 4 28,460 2014 146 157 156 153 147 142 5 29,436 2015 156 160 158 153 145 10 37,562 2016 179 184 187 182 18 45,054 2017 212 215 212 27 48,421 2018 212 217 30 46,198 2019 194 77 35,369 Total $ 1,604 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (a) 2010 $ 61 $ 93 $ 104 $ 122 $ 132 $ 130 $ 128 $ 126 $ 126 $ 126 100.0 % 2011 58 111 115 123 130 131 131 132 132 96.4 % 2012 71 104 109 117 121 126 128 126 99.2 % 2013 70 100 107 113 117 117 118 96.7 % 2014 62 109 125 128 137 139 97.9 % 2015 72 110 129 133 132 91.0 % 2016 88 141 158 161 88.5 % 2017 120 169 186 87.7 % 2018 112 163 75.1 % 2019 99 51.0 % Total $ 1,382 Unpaid losses and LAE — years 2010 through 2019 222 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) (1 ) Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 221 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 50.5 % 27.7 % 7.9 % 5.4 % 4.2 % 0.9 % 0.2 % (0.8 %) — % — % Cumulative 50.5 % 78.2 % 86.1 % 91.5 % 95.7 % 96.6 % 96.8 % 96.0 % 96.0 % 96.0 % (a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). Other specialty (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims (a) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 36 $ 39 $ 40 $ 39 $ 40 $ 40 $ 40 $ 40 $ 40 $ 39 $ 1 — 2011 39 43 42 43 43 44 44 43 42 1 — 2012 42 40 39 40 41 39 39 36 2 — 2013 46 47 46 47 50 53 58 3 — 2014 58 57 59 59 60 61 6 — 2015 59 60 63 66 76 3 — 2016 61 61 65 71 15 — 2017 63 65 70 23 — 2018 86 90 53 — 2019 108 87 — Total $ 651 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (b) 2010 $ 8 $ 14 $ 21 $ 24 $ 27 $ 33 $ 35 $ 36 $ 37 $ 37 94.9 % 2011 12 20 25 28 34 36 37 38 39 92.9 % 2012 8 17 21 25 28 30 30 32 88.9 % 2013 7 16 22 34 37 44 51 87.9 % 2014 13 21 30 36 43 50 82.0 % 2015 10 26 31 50 62 81.6 % 2016 9 19 31 47 66.2 % 2017 10 19 30 42.9 % 2018 12 23 25.6 % 2019 9 8.3 % Total $ 380 Unpaid losses and LAE — years 2010 through 2019 271 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) 42 Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 313 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 16.6 % 16.5 % 13.2 % 14.9 % 10.5 % 9.8 % 4.9 % 3.5 % 2.5 % — % Cumulative 16.6 % 33.1 % 46.3 % 61.2 % 71.7 % 81.5 % 86.4 % 89.9 % 92.4 % 92.4 % (a) The amounts shown in Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty property and casualty insurance sub-segments. Accordingly, the liability for incurred claims and allocated LAE represents additional reserves held on claims counted in the tables provided for the other sub-segments (above). (b) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). Total Specialty Group (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 1,724 $ 1,710 $ 1,705 $ 1,690 $ 1,710 $ 1,698 $ 1,698 $ 1,690 $ 1,676 $ 1,666 $ 33 216,746 2011 1,840 1,848 1,849 1,871 1,861 1,866 1,859 1,843 1,832 43 209,433 2012 1,970 1,952 1,946 1,947 1,955 1,941 1,906 1,886 64 218,880 2013 2,036 2,011 2,000 1,996 2,000 1,982 1,969 94 222,253 2014 2,083 2,050 2,040 2,038 2,004 1,978 124 218,852 2015 2,114 2,047 2,041 2,038 2,022 162 229,607 2016 2,117 2,083 2,082 2,060 315 221,938 2017 2,375 2,348 2,329 502 244,561 2018 2,507 2,516 750 231,707 2019 2,721 1,225 225,075 Total $ 20,979 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (a) 2010 $ 576 $ 1,005 $ 1,220 $ 1,387 $ 1,485 $ 1,536 $ 1,562 $ 1,580 $ 1,595 $ 1,611 96.7 % 2011 609 1,181 1,389 1,534 1,629 1,682 1,711 1,734 1,750 95.5 % 2012 824 1,214 1,418 1,579 1,675 1,735 1,785 1,788 94.8 % 2013 697 1,214 1,443 1,617 1,714 1,774 1,824 92.6 % 2014 594 1,174 1,422 1,588 1,705 1,773 89.6 % 2015 619 1,129 1,404 1,592 1,722 85.2 % 2016 577 1,099 1,350 1,539 74.7 % 2017 709 1,250 1,524 65.4 % 2018 730 1,337 53.1 % 2019 847 31.1 % Total $ 15,715 Unpaid losses and LAE — years 2010 through 2019 5,264 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) 497 Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 5,761 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 32.6 % 25.7 % 12.1 % 8.9 % 5.6 % 3.1 % 2.1 % 0.8 % 0.9 % 1.0 % Cumulative 32.6 % 58.3 % 70.4 % 79.3 % 84.9 % 88.0 % 90.1 % 90.9 % 91.8 % 92.8 % (a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). |
Short-duration insurance contracts, schedule of historical claims duration | The following claims development tables and associated disclosures related to short-duration insurance contracts are prepared by sub-segment within the property and casualty insurance business for the most recent 10 accident years. AFG determines its claim counts at the claimant or policy feature level depending on the particular facts and circumstances of the underlying claim. While the methodology is generally consistent within each sub-segment, there are minor differences between and within the sub-segments. The methods used to summarize claim counts have not changed significantly over the time periods reported in the tables below. Property and transportation (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 679 $ 639 $ 645 $ 652 $ 655 $ 655 $ 660 $ 657 $ 655 $ 655 $ 3 138,105 2011 811 799 813 827 837 850 846 844 843 5 138,309 2012 864 857 871 883 894 890 886 881 8 143,122 2013 882 870 872 878 878 877 873 10 138,864 2014 844 828 817 820 815 808 15 132,971 2015 818 784 779 777 777 23 134,618 2016 746 716 714 706 46 120,884 2017 889 847 843 80 140,067 2018 932 902 119 128,428 2019 1,111 288 138,508 Total $ 8,399 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (a) 2010 $ 316 $ 486 $ 535 $ 596 $ 626 $ 637 $ 642 $ 647 $ 649 $ 650 99.2 % 2011 365 667 727 771 803 821 829 833 834 98.9 % 2012 572 708 772 816 842 856 882 869 98.6 % 2013 438 702 760 804 831 847 858 98.3 % 2014 329 632 693 744 770 783 96.9 % 2015 359 582 667 707 736 94.7 % 2016 294 521 577 618 87.5 % 2017 379 640 696 82.6 % 2018 396 676 74.9 % 2019 527 47.4 % Total $ 7,247 Unpaid losses and LAE — years 2010 through 2019 1,152 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) 19 Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 1,171 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 47.1 % 29.8 % 7.7 % 6.0 % 3.6 % 1.8 % 1.5 % (0.1 %) 0.2 % 0.2 % Cumulative 47.1 % 76.9 % 84.6 % 90.6 % 94.2 % 96.0 % 97.5 % 97.4 % 97.6 % 97.8 % (a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). Specialty casualty (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 871 $ 887 $ 888 $ 867 $ 880 $ 870 $ 868 $ 866 $ 855 $ 846 $ 28 56,716 2011 852 849 839 848 834 828 826 817 810 37 54,755 2012 901 892 885 885 883 877 849 842 53 54,682 2013 968 949 945 940 945 926 916 77 54,929 2014 1,035 1,008 1,008 1,006 982 967 98 56,445 2015 1,081 1,043 1,041 1,042 1,024 126 57,427 2016 1,131 1,122 1,116 1,101 236 56,000 2017 1,211 1,221 1,204 372 56,073 2018 1,277 1,307 548 57,081 2019 1,308 773 51,198 Total $ 10,325 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (a) 2010 $ 191 $ 412 $ 560 $ 645 $ 700 $ 736 $ 757 $ 771 $ 783 $ 798 94.3 % 2011 174 383 522 612 662 694 714 731 745 92.0 % 2012 173 385 516 621 684 723 745 761 90.4 % 2013 182 396 554 666 729 766 797 87.0 % 2014 190 412 574 680 755 801 82.8 % 2015 178 411 577 702 792 77.3 % 2016 186 418 584 713 64.8 % 2017 200 422 612 50.8 % 2018 210 475 36.3 % 2019 212 16.2 % Total $ 6,706 Unpaid losses and LAE — years 2010 through 2019 3,619 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) 437 Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 4,056 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 18.7 % 22.9 % 16.4 % 11.5 % 7.3 % 4.3 % 2.7 % 1.9 % 1.6 % 1.8 % Cumulative 18.7 % 41.6 % 58.0 % 69.5 % 76.8 % 81.1 % 83.8 % 85.7 % 87.3 % 89.1 % (a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). Specialty financial (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 138 $ 145 $ 132 $ 132 $ 135 $ 133 $ 130 $ 127 $ 126 $ 126 $ 1 21,925 2011 138 157 155 153 147 144 143 139 137 — 16,369 2012 163 163 151 139 137 135 132 127 1 21,076 2013 140 145 137 131 127 126 122 4 28,460 2014 146 157 156 153 147 142 5 29,436 2015 156 160 158 153 145 10 37,562 2016 179 184 187 182 18 45,054 2017 212 215 212 27 48,421 2018 212 217 30 46,198 2019 194 77 35,369 Total $ 1,604 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (a) 2010 $ 61 $ 93 $ 104 $ 122 $ 132 $ 130 $ 128 $ 126 $ 126 $ 126 100.0 % 2011 58 111 115 123 130 131 131 132 132 96.4 % 2012 71 104 109 117 121 126 128 126 99.2 % 2013 70 100 107 113 117 117 118 96.7 % 2014 62 109 125 128 137 139 97.9 % 2015 72 110 129 133 132 91.0 % 2016 88 141 158 161 88.5 % 2017 120 169 186 87.7 % 2018 112 163 75.1 % 2019 99 51.0 % Total $ 1,382 Unpaid losses and LAE — years 2010 through 2019 222 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) (1 ) Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 221 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 50.5 % 27.7 % 7.9 % 5.4 % 4.2 % 0.9 % 0.2 % (0.8 %) — % — % Cumulative 50.5 % 78.2 % 86.1 % 91.5 % 95.7 % 96.6 % 96.8 % 96.0 % 96.0 % 96.0 % (a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). Other specialty (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims (a) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 36 $ 39 $ 40 $ 39 $ 40 $ 40 $ 40 $ 40 $ 40 $ 39 $ 1 — 2011 39 43 42 43 43 44 44 43 42 1 — 2012 42 40 39 40 41 39 39 36 2 — 2013 46 47 46 47 50 53 58 3 — 2014 58 57 59 59 60 61 6 — 2015 59 60 63 66 76 3 — 2016 61 61 65 71 15 — 2017 63 65 70 23 — 2018 86 90 53 — 2019 108 87 — Total $ 651 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (b) 2010 $ 8 $ 14 $ 21 $ 24 $ 27 $ 33 $ 35 $ 36 $ 37 $ 37 94.9 % 2011 12 20 25 28 34 36 37 38 39 92.9 % 2012 8 17 21 25 28 30 30 32 88.9 % 2013 7 16 22 34 37 44 51 87.9 % 2014 13 21 30 36 43 50 82.0 % 2015 10 26 31 50 62 81.6 % 2016 9 19 31 47 66.2 % 2017 10 19 30 42.9 % 2018 12 23 25.6 % 2019 9 8.3 % Total $ 380 Unpaid losses and LAE — years 2010 through 2019 271 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) 42 Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 313 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 16.6 % 16.5 % 13.2 % 14.9 % 10.5 % 9.8 % 4.9 % 3.5 % 2.5 % — % Cumulative 16.6 % 33.1 % 46.3 % 61.2 % 71.7 % 81.5 % 86.4 % 89.9 % 92.4 % 92.4 % (a) The amounts shown in Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty property and casualty insurance sub-segments. Accordingly, the liability for incurred claims and allocated LAE represents additional reserves held on claims counted in the tables provided for the other sub-segments (above). (b) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). Total Specialty Group (Dollars in Millions) Incurred Claims and Allocated LAE, Net of Reinsurance As of December 31, 2019 For the Years Ended (2010–2018 is Supplementary Information and Unaudited) Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 $ 1,724 $ 1,710 $ 1,705 $ 1,690 $ 1,710 $ 1,698 $ 1,698 $ 1,690 $ 1,676 $ 1,666 $ 33 216,746 2011 1,840 1,848 1,849 1,871 1,861 1,866 1,859 1,843 1,832 43 209,433 2012 1,970 1,952 1,946 1,947 1,955 1,941 1,906 1,886 64 218,880 2013 2,036 2,011 2,000 1,996 2,000 1,982 1,969 94 222,253 2014 2,083 2,050 2,040 2,038 2,004 1,978 124 218,852 2015 2,114 2,047 2,041 2,038 2,022 162 229,607 2016 2,117 2,083 2,082 2,060 315 221,938 2017 2,375 2,348 2,329 502 244,561 2018 2,507 2,516 750 231,707 2019 2,721 1,225 225,075 Total $ 20,979 Cumulative Paid Claims and Allocated LAE, Net of Reinsurance Accident Year For the Years Ended (2010–2018 is Supplementary Information and Unaudited) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % (a) 2010 $ 576 $ 1,005 $ 1,220 $ 1,387 $ 1,485 $ 1,536 $ 1,562 $ 1,580 $ 1,595 $ 1,611 96.7 % 2011 609 1,181 1,389 1,534 1,629 1,682 1,711 1,734 1,750 95.5 % 2012 824 1,214 1,418 1,579 1,675 1,735 1,785 1,788 94.8 % 2013 697 1,214 1,443 1,617 1,714 1,774 1,824 92.6 % 2014 594 1,174 1,422 1,588 1,705 1,773 89.6 % 2015 619 1,129 1,404 1,592 1,722 85.2 % 2016 577 1,099 1,350 1,539 74.7 % 2017 709 1,250 1,524 65.4 % 2018 730 1,337 53.1 % 2019 847 31.1 % Total $ 15,715 Unpaid losses and LAE — years 2010 through 2019 5,264 Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) 497 Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) $ 5,761 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Annual 32.6 % 25.7 % 12.1 % 8.9 % 5.6 % 3.1 % 2.1 % 0.8 % 0.9 % 1.0 % Cumulative 32.6 % 58.3 % 70.4 % 79.3 % 84.9 % 88.0 % 90.1 % 90.9 % 91.8 % 92.8 % (a) Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). |
Statutory information | Net earnings and capital and surplus on a statutory basis for the insurance subsidiaries were as follows (in millions): Net Earnings Capital and Surplus 2019 2018 2017 2019 2018 Property and casualty companies $ 584 $ 546 $ 484 $ 3,342 $ 2,867 Life (annuity) insurance companies 34 802 286 2,868 2,701 |
Reinsurance information | The following table shows (in millions) (i) amounts deducted from property and casualty written and earned premiums in connection with reinsurance ceded, (ii) written and earned premiums included in income for reinsurance assumed and (iii) reinsurance recoveries, which represent ceded losses and loss adjustment expenses. 2019 2018 2017 Direct premiums written $ 7,044 $ 6,626 $ 6,310 Reinsurance assumed 255 214 192 Reinsurance ceded (1,957 ) (1,817 ) (1,751 ) Net written premiums $ 5,342 $ 5,023 $ 4,751 Direct premiums earned $ 6,848 $ 6,472 $ 6,112 Reinsurance assumed 226 204 157 Reinsurance ceded (1,889 ) (1,811 ) (1,690 ) Net earned premiums $ 5,185 $ 4,865 $ 4,579 Reinsurance recoveries $ 1,404 $ 1,249 $ 1,379 |
Schedule of reserve liabilities for annuity benefits accumulated | The liabilities included in AFG’s Balance Sheet for these benefits, excluding the impact of unrealized gains on securities, were as follows at December 31 (in millions): 2019 2018 Expected death and annuitization $ 232 $ 229 Guaranteed withdrawal benefits 625 472 Accrued persistency and premium bonuses 1 1 |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 |
Significant Accounting Policies [Line Items] | |||||||
Cumulative effect of accounting change | $ 4 | ||||||
Operating lease liability | $ 180 | $ 198 | |||||
Operating lease right-of-use asset | 158 | 174 | |||||
Deferred rent and lease incentives | $ 22 | $ 24 | |||||
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect | $ 0 | ||||||
Weighted average common shares adjustment related to stock-based compensation | 1,100,000 | 1,600,000 | 2,000,000 | ||||
Anti-dilutive potential common shares related to stock-based compensation plans | 0 | 0 | 0 | ||||
Maturities of short term investments | 3 months | ||||||
Equity securities | |||||||
Significant Accounting Policies [Line Items] | |||||||
Available-for-sale securities, Equity securities | $ 1,600 | $ 1,600 | $ 1,600 | ||||
Equity securities | Accounting Standards Update 2016-01 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Cumulative effect of accounting change | (221) | ||||||
Tax Cuts and Jobs Act of 2017 | Accounting Standards Update 2018-02 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect | $ 145 | $ 145 | |||||
Limited partnerships and similar investments | Accounting Standards Update 2016-01 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Cumulative effect of accounting change | $ (4) | ||||||
Equity securities still owned | Equity securities | Accounting Standards Update 2016-01 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Net holding gains (losses) on equity securities | $ 207 | $ (257) |
Acquisitions and Sale of Busi_3
Acquisitions and Sale of Businesses - Narrative on acquisitions of subsidiaries (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 10, 2019 | |
Business Acquisitions [Line Items] | ||||||
Payments to acquire subsidiaries | $ 0 | $ 36 | $ 0 | |||
Goodwill acquired during period | $ 8 | $ 8 | ||||
Atlas Financial Holdings - Paratransit Business | ||||||
Business Acquisitions [Line Items] | ||||||
Gross written premiums eligible for renewal | $ 110 | |||||
Business acquisition, price as a percent of gross written premiums | 15.00% | |||||
Warrant term to acquire shares | 5 years | |||||
Number of shares able to be acquired with the warrant | 2.4 | |||||
Business acquisition, percentage of entity acquired by warrants | 19.90% | |||||
ABA Insurance Services | ||||||
Business Acquisitions [Line Items] | ||||||
Payments to acquire subsidiaries | $ 30 | |||||
Contingent consideration | $ 3 | |||||
Contingent consideration term | 4 years | |||||
Finite-lived intangible assets acquired | 25 | |||||
Finite-lived intangible asset useful life | 9 years | |||||
Goodwill acquired during period | $ 8 | |||||
Equity securities | Warrant | Maximum | Atlas Financial Holdings - Paratransit Business | ||||||
Business Acquisitions [Line Items] | ||||||
Fair value of asset on date received | $ 1 |
Acquisitions and Sale of Busi_4
Acquisitions and Sale of Businesses - Narrative on sale of businesses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sale of Businesses | |||||
Other | $ 26 | $ 11 | $ 0 | ||
Income tax expense (benefit) | $ 239 | $ 122 | $ 247 | ||
Neon Capital Limited | |||||
Sale of Businesses | |||||
Other | $ (3) | ||||
Income tax expense (benefit) | $ (56) | $ (48) |
Acquisitions and Sale of Busi_5
Acquisitions and Sale of Businesses - Allocation of the purchase price of subsidiary (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Business Acquisitions [Line Items] | ||||||
Total purchase price | $ 0 | $ 36 | $ 0 | |||
Goodwill | $ 207 | $ 207 | $ 199 | $ 199 | ||
ABA Insurance Services | ||||||
Business Acquisitions [Line Items] | ||||||
Total purchase price | $ 30 | |||||
Tangible assets acquired | 28 | |||||
Liabilities acquired | 26 | |||||
Net tangible assets acquire, at fair value | 2 | |||||
Excess purchase price over net tangible assets acquired | 28 | |||||
Intangible assets acquired | [1] | 25 | ||||
Deferred tax on intangible assets acquired | [1] | (5) | ||||
Goodwill | $ 8 | |||||
[1] | Included in Other assets in AFG’s Balance Sheet. |
Segments of Operations - Narrat
Segments of Operations - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||
Number of segments | segment | 3 | ||||||
Revenue derived from sales of property and casualty insurance outside of the United States | 7.00% | 7.00% | 5.00% | ||||
Property and casualty insurance | Other lines | |||||||
Segment Reporting Information [Line Items] | |||||||
Percent of foreign sales attributable to Neon | 66.67% | ||||||
Special A&E charges | $ 18 | $ 18 | $ 18 | $ 18 | $ 89 | ||
Special charges related to the exit of certain lines of business within subsidiaries | $ 76 | ||||||
Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Loss on the retirement of debt | 5 | 51 | |||||
Special charges to increase asbestos and environmental reserves | 11 | 9 | 24 | ||||
Special A&E charges | |||||||
Segment Reporting Information [Line Items] | |||||||
Special A&E charges | 18 | $ 18 | 89 | ||||
Special A&E charges | Property and casualty insurance | Other lines | |||||||
Segment Reporting Information [Line Items] | |||||||
Special A&E charges | 18 | 89 | |||||
Neon Capital Limited | Property and casualty insurance | |||||||
Segment Reporting Information [Line Items] | |||||||
Favorable reserve development related to certain lines of business within subsidiaries in connection with a reinsurance to close agreement | $ 42 | ||||||
Neon Capital Limited | Property and casualty insurance | Other lines | |||||||
Segment Reporting Information [Line Items] | |||||||
Special charges related to the exit of certain lines of business within subsidiaries | $ 76 | ||||||
Favorable reserve development related to certain lines of business within subsidiaries in connection with a reinsurance to close agreement | $ 18 | $ 18 |
Segments of Operations - Assets
Segments of Operations - Assets by segment (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 70,130 | $ 63,456 | $ 60,658 | |
Property and casualty insurance | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | 19,098 | 17,681 | 17,171 |
Annuity | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 45,074 | 39,952 | 37,179 | |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | $ 5,958 | $ 5,823 | $ 6,308 | |
[1] | Not allocable to sub-segments. |
Segments of Operations - Revenu
Segments of Operations - Revenues by segment and sub-segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Total premiums earned | $ 5,185 | $ 4,865 | $ 4,579 | ||||||||
Net investment income | 2,303 | 2,094 | 1,831 | ||||||||
Other income | 201 | 199 | 206 | ||||||||
Revenues before realized gains (losses) | 7,950 | 7,416 | 6,860 | ||||||||
Realized gains (losses) on securities | 287 | (266) | 5 | ||||||||
Total revenues | $ 2,130 | $ 2,123 | $ 1,960 | $ 2,024 | $ 1,690 | $ 2,008 | $ 1,833 | $ 1,619 | 8,237 | 7,150 | 6,865 |
Property and casualty insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total premiums earned | 5,185 | 4,865 | 4,579 | ||||||||
Net investment income | 472 | 438 | 362 | ||||||||
Other income | 11 | 10 | 28 | ||||||||
Revenues before realized gains (losses) | 5,668 | 5,313 | 4,969 | ||||||||
Annuity | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net investment income | 1,792 | 1,638 | 1,458 | ||||||||
Other income | 108 | 107 | 103 | ||||||||
Revenues before realized gains (losses) | 1,900 | 1,745 | 1,561 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues before realized gains (losses) | 382 | 358 | 330 | ||||||||
Property and transportation | Property and casualty insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total premiums earned | 1,828 | 1,729 | 1,711 | ||||||||
Specialty casualty | Property and casualty insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total premiums earned | 2,597 | 2,403 | 2,186 | ||||||||
Specialty financial | Property and casualty insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total premiums earned | 610 | 598 | 576 | ||||||||
Other specialty | Property and casualty insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total premiums earned | $ 150 | $ 135 | $ 106 |
Segments of Operations - Earnin
Segments of Operations - Earnings before income taxes by segment and sub-segment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||
Earnings before realized gains (losses) and income taxes | $ 821 | $ 905 | $ 719 | |
Realized gains (losses) on securities | 287 | (266) | 5 | |
Earnings before income taxes | 1,108 | 639 | 724 | |
Property and casualty insurance | ||||
Segment Reporting Information [Line Items] | ||||
Property and casualty insurance underwriting | 212 | 302 | 242 | |
Investment and other income, net | 437 | 407 | 349 | |
Earnings before realized gains (losses) and income taxes | 649 | 709 | 591 | |
Annuity | ||||
Segment Reporting Information [Line Items] | ||||
Earnings before realized gains (losses) and income taxes | 362 | 361 | 380 | |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Earnings before realized gains (losses) and income taxes | [1] | (190) | (165) | (252) |
Property and transportation | Property and casualty insurance | ||||
Segment Reporting Information [Line Items] | ||||
Property and casualty insurance underwriting | 79 | 120 | 154 | |
Specialty casualty | Property and casualty insurance | ||||
Segment Reporting Information [Line Items] | ||||
Property and casualty insurance underwriting | 175 | 141 | 104 | |
Specialty financial | Property and casualty insurance | ||||
Segment Reporting Information [Line Items] | ||||
Property and casualty insurance underwriting | 92 | 66 | 61 | |
Other specialty | Property and casualty insurance | ||||
Segment Reporting Information [Line Items] | ||||
Property and casualty insurance underwriting | (21) | (5) | (2) | |
Other lines | Property and casualty insurance | ||||
Segment Reporting Information [Line Items] | ||||
Property and casualty insurance underwriting | [2] | $ (113) | $ (20) | $ (75) |
[1] | Primarily holding company interest and expenses, including losses on retirement of debt of $5 million in 2019 and $51 million in 2017 and special charges to increase A&E reserves related to AFG’s former railroad and manufacturing operations ( $11 million in 2019 , $9 million in 2018 and $24 million in 2017 | |||
[2] | Includes special charges to increase asbestos and environmental (“A&E”) reserves of $18 million in both 2019 and 2018 and $89 million in 2017 , respectively. Also includes a $76 million charge in 2019 and $18 million in favorable development recorded in 2017 related to the Neon exited lines. |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)basispointprofessionalsecurity | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value Measurements (Textual) [Abstract] | ||||
AFG's internal investment professionals | professional | 20 | |||
Level 3 assets as a percentage of total assets measured at fair value | 7.00% | |||
Percentage of level 3 assets that were priced using non-binding broker quotes | 57.00% | |||
Level 3 assets that were priced using non-binding broker quotes | $ 2,170 | |||
Percent of spreads between 200 and 700 basis points | 70.00% | |||
Fair value of equity securities transferred into level 3 | $ 244 | $ 270 | $ 289 | |
Life contingent annuities | 247 | 232 | ||
Fixed-indexed and variable-indexed annuities (embedded derivative) | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Fair value of derivatives in annuity benefits accumulated measured using a discounted cash flow approach | $ 3,730 | |||
Fixed-indexed and variable-indexed annuities (embedded derivative) | Minimum | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Unobservable input surrenders used in Level 3 fair value determination | 3.00% | |||
Fixed-indexed and variable-indexed annuities (embedded derivative) | Maximum | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Unobservable input surrenders used in Level 3 fair value determination | 22.00% | |||
Fixed-indexed annuities (embedded derivative), majority of future years | Minimum | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Unobservable input surrenders used in Level 3 fair value determination | 7.00% | |||
Fixed-indexed annuities (embedded derivative), majority of future years | Maximum | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Unobservable input surrenders used in Level 3 fair value determination | 10.00% | |||
Not Designated as Hedging Instrument | Annuity benefits | Fixed-indexed and variable-indexed annuities (embedded derivative) | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Total realized/unrealized gains (losses) included in net income for the embedded derivatives related to the unlocking of actuarial assumptions | $ 181 | (44) | (25) | |
Level 3 | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Internally developed level 3 assets | 1,360 | |||
Fixed maturities | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Fair value of equity securities transferred into level 3 | 188 | 240 | 289 | |
Equity securities | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Fair value of equity securities transferred into level 3 | $ 29 | 56 | $ 30 | $ 0 |
Third party pricing model | Fixed maturities | Level 3 | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Internally developed level 3 assets | $ 716 | |||
Securities priced using third-party model | security | 35 | |||
Basis points credit spread applied by management using third party model | basispoint | 396 | |||
Third party pricing model | Fixed maturities | Level 3 | Minimum | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Basis points credit spread applied by management using third party model | basispoint | 100 | |||
Third party pricing model | Fixed maturities | Level 3 | Maximum | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Basis points credit spread applied by management using third party model | basispoint | 1,253 | |||
Maximum | Third party pricing model | Fixed maturities | Level 3 | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Basis points credit spread applied by management using third party model | basispoint | 700 | |||
Minimum | Third party pricing model | Fixed maturities | Level 3 | ||||
Fair Value Measurements (Textual) [Abstract] | ||||
Basis points credit spread applied by management using third party model | basispoint | 200 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and liabilities measured and carried at fair value in the financial statements (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets: | |||
Available for sale (AFS) fixed maturities | $ 46,505 | $ 41,997 | |
Trading fixed maturities | 113 | 105 | |
Equity securities, at fair value | 1,937 | 1,814 | |
Assets of managed investment entities (MIE) | 4,736 | 4,700 | |
Variable annuity assets (separate accounts) | [1] | 628 | 557 |
Derivatives including equity index call options and other assets | 924 | 184 | |
Total assets accounted for at fair value | 54,893 | 49,373 | |
Liabilities: | |||
Liabilities of managed investment entities | 4,571 | 4,512 | |
Total liabilities accounted for at fair value | 8,311 | 7,281 | |
Derivatives in annuity benefits accumulated | |||
Liabilities: | |||
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities | 3,730 | 2,720 | |
Other liabilities — derivatives | |||
Liabilities: | |||
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities | 10 | 49 | |
Fixed maturities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 46,505 | 41,997 | |
Trading fixed maturities | 113 | 105 | |
U.S. Government and government agencies | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 209 | 233 | |
States, municipalities and political subdivisions | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 6,963 | 6,939 | |
Foreign government | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 172 | 142 | |
Residential MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 3,160 | 2,744 | |
Commercial MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 927 | 920 | |
Collateralized loan obligations | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 4,280 | 4,278 | |
Other asset-backed securities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 7,128 | 5,533 | |
Corporate and other | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 23,666 | 21,208 | |
Equity securities | |||
Assets: | |||
Equity securities, at fair value | 1,937 | 1,814 | |
Other assets — derivatives | |||
Assets: | |||
Derivatives including equity index call options and other assets | 50 | 16 | |
Level 1 | |||
Assets: | |||
Assets of managed investment entities (MIE) | 213 | 203 | |
Variable annuity assets (separate accounts) | [1] | 0 | 0 |
Total assets accounted for at fair value | 1,828 | 1,791 | |
Liabilities: | |||
Liabilities of managed investment entities | 206 | 195 | |
Total liabilities accounted for at fair value | 206 | 195 | |
Level 1 | Derivatives in annuity benefits accumulated | |||
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 | 180 | 169 | |
Trading fixed maturities | 2 | 9 | |
Level 1 | U.S. Government and government agencies | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 151 | 141 | |
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 | Collateralized loan obligations | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 0 | 0 | |
Level 1 | Other asset-backed securities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 0 | 0 | |
Level 1 | Corporate and other | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 29 | 28 | |
Level 1 | Equity securities | |||
Assets: | |||
Equity securities, at fair value | 1,433 | 1,410 | |
Level 1 | Other assets — derivatives | |||
Assets: | |||
Derivatives including equity index call options and other assets | 0 | 0 | |
Level 2 | |||
Assets: | |||
Assets of managed investment entities (MIE) | 4,506 | 4,476 | |
Variable annuity assets (separate accounts) | [1] | 628 | 557 |
Total assets accounted for at fair value | 49,224 | 44,061 | |
Liabilities: | |||
Liabilities of managed investment entities | 4,349 | 4,297 | |
Total liabilities accounted for at fair value | 4,359 | 4,346 | |
Level 2 | Derivatives in annuity benefits accumulated | |||
Liabilities: | |||
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities | 0 | 0 | |
Level 2 | Other liabilities — derivatives | |||
Liabilities: | |||
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities | 10 | 49 | |
Level 2 | Fixed maturities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 42,938 | 38,664 | |
Trading fixed maturities | 111 | 96 | |
Level 2 | U.S. Government and government agencies | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 43 | 83 | |
Level 2 | States, municipalities and political subdivisions | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 6,858 | 6,880 | |
Level 2 | Foreign government | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 172 | 142 | |
Level 2 | Residential MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 2,987 | 2,547 | |
Level 2 | Commercial MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 892 | 864 | |
Level 2 | Collateralized loan obligations | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 4,265 | 4,162 | |
Level 2 | Other asset-backed securities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 5,842 | 4,802 | |
Level 2 | Corporate and other | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 21,879 | 19,184 | |
Level 2 | Equity securities | |||
Assets: | |||
Equity securities, at fair value | 67 | 68 | |
Level 2 | Other assets — derivatives | |||
Assets: | |||
Derivatives including equity index call options and other assets | 50 | 16 | |
Level 3 | |||
Assets: | |||
Assets of managed investment entities (MIE) | 17 | 21 | |
Variable annuity assets (separate accounts) | [1] | 0 | 0 |
Total assets accounted for at fair value | 3,841 | 3,521 | |
Liabilities: | |||
Liabilities of managed investment entities | 16 | 20 | |
Total liabilities accounted for at fair value | 3,746 | 2,740 | |
Level 3 | Derivatives in annuity benefits accumulated | |||
Liabilities: | |||
Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities | 3,730 | 2,720 | |
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 | 3,387 | 3,164 | |
Trading fixed maturities | 0 | 0 | |
Level 3 | U.S. Government and government agencies | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 15 | 9 | |
Level 3 | States, municipalities and political subdivisions | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 105 | 59 | |
Level 3 | Foreign government | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 0 | 0 | |
Level 3 | Residential MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 173 | 197 | |
Level 3 | Commercial MBS | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 35 | 56 | |
Level 3 | Collateralized loan obligations | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 15 | 116 | |
Level 3 | Other asset-backed securities | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 1,286 | 731 | |
Level 3 | Corporate and other | |||
Assets: | |||
Available for sale (AFS) fixed maturities | 1,758 | 1,996 | |
Level 3 | Equity securities | |||
Assets: | |||
Equity securities, at fair value | 437 | 336 | |
Level 3 | Other assets — derivatives | |||
Assets: | |||
Derivatives including equity index call options and other assets | 0 | 0 | |
Equity index call options | Equity index call options | |||
Assets: | |||
Derivatives including equity index call options and other assets | 924 | 184 | |
Equity index call options | Level 1 | Equity index call options | |||
Assets: | |||
Derivatives including equity index call options and other assets | 0 | 0 | |
Equity index call options | Level 2 | Equity index call options | |||
Assets: | |||
Derivatives including equity index call options and other assets | 924 | 184 | |
Equity index call options | Level 3 | Equity index call options | |||
Assets: | |||
Derivatives including equity index call options and other assets | $ 0 | $ 0 | |
[1] | Variable annuity liabilities equal the fair value of variable annuity assets. |
Fair Value Measurements - Trans
Fair Value Measurements - Transfers between Level 1 and Level 2 (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)stock | Dec. 31, 2018USD ($)stock | Dec. 31, 2017USD ($)stock | |
Perpetual preferred stocks | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of stocks transferred from Level 2 to Level 1 | stock | 2 | 2 | 4 |
Fair value of assets transferred from Level 2 to Level 1 | $ | $ 11 | $ 5 | $ 23 |
Number of stocks transferred from Level 1 to Level 2 | stock | 1 | 2 | 2 |
Fair value of assets transferred from Level 1 to Level 2 | $ | $ 6 | $ 6 | $ 11 |
Common stocks | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of stocks transferred from Level 2 to Level 1 | stock | 1 | 0 | 0 |
Fair value of assets transferred from Level 2 to Level 1 | $ | $ 0 | $ 0 | $ 0 |
Number of stocks transferred from Level 1 to Level 2 | stock | 0 | 0 | 1 |
Fair value of assets transferred from Level 1 to Level 2 | $ | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable inputs used in determining fair value of embedded derivatives (Details) - Embedded derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Unobservable inputs used by management in determining fair value of embedded derivatives | |
Risk margin for uncertainty in cash flows | 0.80% |
Minimum | |
Unobservable inputs used by management in determining fair value of embedded derivatives | |
Fair Value Input Adjustment for Insurance Subsidiary’s Credit Risk | 0.20% |
Surrenders | 3.00% |
Partial surrenders | 2.00% |
Annuitizations | 0.10% |
Deaths | 1.50% |
Budgeted option costs | 2.50% |
Maximum | |
Unobservable inputs used by management in determining fair value of embedded derivatives | |
Fair Value Input Adjustment for Insurance Subsidiary’s Credit Risk | 2.40% |
Surrenders | 22.00% |
Partial surrenders | 9.00% |
Annuitizations | 1.00% |
Deaths | 10.60% |
Budgeted option costs | 3.30% |
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 | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Financial assets, Beginning Balance | $ 2,290 | $ 3,521 | $ 2,290 | $ 1,762 |
Total realized/unrealized gains (losses) included in Net earnings | (10) | (21) | (39) | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 75 | (39) | 17 | |
Purchases and issuances | 1,578 | 1,828 | 1,079 | |
Sales and settlements | (565) | (482) | (437) | |
Transfer into Level 3 | 244 | 270 | 289 | |
Transfer out of Level 3 | (1,002) | (325) | (381) | |
Financial assets, Ending Balance | 3,841 | 3,521 | 2,290 | |
Fixed maturities | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Financial assets, Beginning Balance | 2,102 | 3,164 | 2,102 | 1,559 |
Total realized/unrealized gains (losses) included in Net earnings | 0 | (22) | (7) | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 75 | (39) | 7 | |
Purchases and issuances | 1,525 | 1,667 | 1,032 | |
Sales and settlements | (563) | (476) | (421) | |
Transfer into Level 3 | 188 | 240 | 289 | |
Transfer out of Level 3 | (1,002) | (308) | (357) | |
Financial assets, Ending Balance | 3,387 | 3,164 | 2,102 | |
U.S. government agency | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Financial assets, Beginning Balance | 8 | 9 | 8 | 8 |
Total realized/unrealized gains (losses) included in Net earnings | 0 | 0 | 0 | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 7 | 0 | 0 | |
Purchases and issuances | 0 | 0 | 0 | |
Sales and settlements | (1) | 0 | 0 | |
Transfer into Level 3 | 0 | 1 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | |
Financial assets, Ending Balance | 15 | 9 | 8 | |
State and municipal | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Financial assets, Beginning Balance | 148 | 59 | 148 | 140 |
Total realized/unrealized gains (losses) included in Net earnings | 0 | 0 | 0 | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 5 | (2) | 2 | |
Purchases and issuances | 0 | 0 | 0 | |
Sales and settlements | (3) | (3) | (2) | |
Transfer into Level 3 | 55 | 0 | 10 | |
Transfer out of Level 3 | (11) | (84) | (2) | |
Financial assets, Ending Balance | 105 | 59 | 148 | |
Residential MBS | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Financial assets, Beginning Balance | 122 | 197 | 122 | 190 |
Total realized/unrealized gains (losses) included in Net earnings | 6 | (9) | (4) | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | (3) | (4) | 2 | |
Purchases and issuances | 0 | 0 | 1 | |
Sales and settlements | (20) | (21) | (40) | |
Transfer into Level 3 | 48 | 130 | 44 | |
Transfer out of Level 3 | (55) | (21) | (71) | |
Financial assets, Ending Balance | 173 | 197 | 122 | |
Commercial MBS | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Financial assets, Beginning Balance | 36 | 56 | 36 | 25 |
Total realized/unrealized gains (losses) included in Net earnings | 2 | 0 | 2 | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases and issuances | 0 | 20 | 15 | |
Sales and settlements | (12) | 0 | (10) | |
Transfer into Level 3 | 4 | 0 | 4 | |
Transfer out of Level 3 | (15) | 0 | 0 | |
Financial assets, Ending Balance | 35 | 56 | 36 | |
Collateralized loan obligations | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Financial assets, Beginning Balance | 200 | 116 | 200 | 174 |
Total realized/unrealized gains (losses) included in Net earnings | (5) | (3) | (1) | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 5 | (13) | (1) | |
Purchases and issuances | 0 | 35 | 55 | |
Sales and settlements | 0 | (20) | (27) | |
Transfer into Level 3 | 28 | 3 | 0 | |
Transfer out of Level 3 | (129) | (86) | 0 | |
Financial assets, Ending Balance | 15 | 116 | 200 | |
Other asset-backed securities | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Financial assets, Beginning Balance | 544 | 731 | 544 | 310 |
Total realized/unrealized gains (losses) included in Net earnings | 0 | 0 | 1 | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 6 | (2) | 2 | |
Purchases and issuances | 787 | 391 | 355 | |
Sales and settlements | (192) | (228) | (105) | |
Transfer into Level 3 | 23 | 79 | 202 | |
Transfer out of Level 3 | (69) | (53) | (221) | |
Financial assets, Ending Balance | 1,286 | 731 | 544 | |
Corporate and other | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Financial assets, Beginning Balance | 1,044 | 1,996 | 1,044 | 712 |
Total realized/unrealized gains (losses) included in Net earnings | (3) | (10) | (5) | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 55 | (18) | 2 | |
Purchases and issuances | 738 | 1,221 | 606 | |
Sales and settlements | (335) | (204) | (237) | |
Transfer into Level 3 | 30 | 27 | 29 | |
Transfer out of Level 3 | (723) | (64) | (63) | |
Financial assets, Ending Balance | 1,758 | 1,996 | 1,044 | |
Equity securities | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Financial assets, Beginning Balance | 165 | 336 | 165 | 174 |
Total realized/unrealized gains (losses) included in Net earnings | (5) | 9 | (21) | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | 10 | |
Purchases and issuances | 52 | 155 | 38 | |
Sales and settlements | (2) | (6) | (16) | |
Transfer into Level 3 | 29 | 56 | 30 | 0 |
Transfer out of Level 3 | 0 | (17) | (20) | |
Financial assets, Ending Balance | 437 | 336 | 165 | |
Assets of MIE | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Financial assets, Beginning Balance | $ 23 | 21 | 23 | 29 |
Total realized/unrealized gains (losses) included in Net earnings | (5) | (8) | (11) | |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases and issuances | 1 | 6 | 9 | |
Sales and settlements | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | (4) | |
Financial assets, Ending Balance | $ 17 | $ 21 | $ 23 |
Fair Value Measurements - Cha_2
Fair Value Measurements - Changes in balances of Level 3 financial liabilities carried at fair value (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Financial liabilities, Beginning Balance | $ (2,720) | [1] | $ (2,542) | [2] | $ (1,759) | |
Total realized/unrealized gains (losses) included in Net earnings | (919) | 204 | (589) | |||
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | 0 | |||
Purchases and issuances | (333) | (545) | (300) | |||
Sales and settlements | 242 | 163 | 106 | |||
Transfer into Level 3 | 0 | 0 | 0 | |||
Transfer out of Level 3 | 0 | 0 | 0 | |||
Financial liabilities, Ending Balance | (3,730) | [3] | (2,720) | [1] | (2,542) | [2] |
Embedded derivatives | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Financial liabilities, Beginning Balance | (2,720) | (2,542) | (1,759) | |||
Total realized/unrealized gains (losses) included in Net earnings | (919) | [4] | 204 | [5] | (589) | [6] |
Total realized/unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 | 0 | |||
Purchases and issuances | (333) | (545) | (300) | |||
Sales and settlements | 242 | 163 | 106 | |||
Transfer into Level 3 | 0 | 0 | 0 | |||
Transfer out of Level 3 | 0 | 0 | 0 | |||
Financial liabilities, Ending Balance | $ (3,730) | $ (2,720) | $ (2,542) | |||
[1] | As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets. | |||||
[2] | As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets. | |||||
[3] | As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets. | |||||
[4] | Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes a favorable adjustment related to the unlocking of actuarial assumptions of $181 million in 2019 . | |||||
[5] | Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $44 million in 2018 . | |||||
[6] | Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $25 million in 2017 . |
Fair Value Measurements - The c
Fair Value Measurements - The carrying value and fair value of financial instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial assets: | |||
Mortgage loans | $ 1,329 | $ 1,068 | |
Policy loans | 164 | 174 | |
Financial liabilities: | |||
Long-term debt | 1,473 | 1,302 | |
Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 2,314 | 1,515 | |
Mortgage loans | 0 | 0 | |
Policy loans | 0 | 0 | |
Total financial assets not accounted for at fair value | 2,314 | 1,515 | |
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 | 1,619 | 1,228 | |
Total financial liabilities not accounted for at fair value | 1,619 | 1,228 | |
Level 3 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Mortgage loans | 1,346 | 1,056 | |
Policy loans | 164 | 174 | |
Total financial assets not accounted for at fair value | 1,510 | 1,230 | |
Financial liabilities: | |||
Annuity benefits accumulated | [1] | 40,182 | 34,765 |
Long-term debt | 3 | 3 | |
Total financial liabilities not accounted for at fair value | 40,185 | 34,768 | |
Carrying Value | |||
Financial assets: | |||
Cash and cash equivalents | 2,314 | 1,515 | |
Mortgage loans | 1,329 | 1,068 | |
Policy loans | 164 | 174 | |
Total financial assets not accounted for at fair value | 3,807 | 2,757 | |
Financial liabilities: | |||
Annuity benefits accumulated | [1] | 40,159 | 36,384 |
Long-term debt | 1,473 | 1,302 | |
Total financial liabilities not accounted for at fair value | 41,632 | 37,686 | |
Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 2,314 | 1,515 | |
Mortgage loans | 1,346 | 1,056 | |
Policy loans | 164 | 174 | |
Total financial assets not accounted for at fair value | 3,824 | 2,745 | |
Financial liabilities: | |||
Annuity benefits accumulated | [1] | 40,182 | 34,765 |
Long-term debt | 1,622 | 1,231 | |
Total financial liabilities not accounted for at fair value | $ 41,804 | $ 35,996 | |
[1] | Excludes $247 million and $232 million of life contingent annuities in the payout phase at December 31, 2019 and 2018 , respectively. |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
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 | 74.00% | ||
Percentage (based on fair value) of available for sale fixed maturities that are in an unrealized loss position and rated investment grade | 93.00% | ||
Other than temporary impairment charges | $ 19 | $ 19 | $ 73 |
Average life of CLOs and Other ABS | 4 years | ||
Average life of MBS | 4 years 6 months | ||
Residential MBS | |||
Investment [Line Items] | |||
Non-credit related portion of other-than-temporary impairment charges taken for securities still owned | $ 118 | 140 | |
Fixed maturities, Gross Unrealized, Losses | (5) | (9) | |
Other than temporary impairment charges | 1 | 6 | 1 |
Collateralized loan obligations | |||
Investment [Line Items] | |||
Fixed maturities, Gross Unrealized, Losses | (37) | (73) | |
Other than temporary impairment charges | 17 | ||
Corporate bond securities | |||
Investment [Line Items] | |||
Other than temporary impairment charges | 11 | ||
Securities with non-credit other-than-temporary impairment charges | |||
Investment [Line Items] | |||
Gross Unrealized, Gains | 114 | 119 | |
Gross Unrealized, Losses | (1) | (4) | |
Fixed maturities | |||
Investment [Line Items] | |||
Fixed maturities, Gross Unrealized, Losses | $ (88) | (603) | |
Number of available for sale securities in an unrealized loss position | security | 649 | ||
Other than temporary impairment charges | $ 29 | 26 | 20 |
Available-for-sale Securities, Gross Realized Gains | 35 | 22 | 43 |
Available-for-sale Securities, Gross Realized Losses | (19) | (14) | (20) |
Fixed maturities excluding residential MBS | |||
Investment [Line Items] | |||
Other than temporary impairment charges | 20 | 19 | |
Other investments | |||
Investment [Line Items] | |||
Other than temporary impairment charges | 4 | ||
Equity securities | |||
Investment [Line Items] | |||
Other than temporary impairment charges | $ 0 | $ 0 | 64 |
Available-for-sale Securities, Gross Realized Gains | 87 | ||
Available-for-sale Securities, Gross Realized Losses | (17) | ||
Equity securities | Available-for-sale securities | |||
Investment [Line Items] | |||
Other than temporary impairment charges | $ 64 |
Investments - Available for sal
Investments - Available for sale fixed maturities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Available for sale, Amortized Cost | $ 44,524 | $ 41,837 |
Available for sale (AFS) fixed maturities | 46,505 | 41,997 |
Total fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Available for sale, Amortized Cost | 44,524 | 41,837 |
Fixed maturities, Available for sale, Gross Unrealized, Gains | 2,069 | 763 |
Fixed maturities, Available for sale, Gross Unrealized, Losses | (88) | (603) |
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses) | 1,981 | 160 |
Available for sale (AFS) fixed maturities | 46,505 | 41,997 |
U.S. Government and government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Available for sale, Amortized Cost | 199 | 235 |
Fixed maturities, Available for sale, Gross Unrealized, Gains | 10 | 1 |
Fixed maturities, Available for sale, Gross Unrealized, Losses | 0 | (3) |
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses) | 10 | (2) |
Available for sale (AFS) fixed maturities | 209 | 233 |
States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Available for sale, Amortized Cost | 6,604 | 6,825 |
Fixed maturities, Available for sale, Gross Unrealized, Gains | 363 | 169 |
Fixed maturities, Available for sale, Gross Unrealized, Losses | (4) | (55) |
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses) | 359 | 114 |
Available for sale (AFS) fixed maturities | 6,963 | 6,939 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Available for sale, Amortized Cost | 170 | 140 |
Fixed maturities, Available for sale, Gross Unrealized, Gains | 3 | 2 |
Fixed maturities, Available for sale, Gross Unrealized, Losses | (1) | 0 |
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses) | 2 | 2 |
Available for sale (AFS) fixed maturities | 172 | 142 |
Residential MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Available for sale, Amortized Cost | 2,900 | 2,476 |
Fixed maturities, Available for sale, Gross Unrealized, Gains | 265 | 277 |
Fixed maturities, Available for sale, Gross Unrealized, Losses | (5) | (9) |
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses) | 260 | 268 |
Available for sale (AFS) fixed maturities | 3,160 | 2,744 |
Commercial MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Available for sale, Amortized Cost | 896 | 905 |
Fixed maturities, Available for sale, Gross Unrealized, Gains | 31 | 17 |
Fixed maturities, Available for sale, Gross Unrealized, Losses | 0 | (2) |
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses) | 31 | 15 |
Available for sale (AFS) fixed maturities | 927 | 920 |
Collateralized loan obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Available for sale, Amortized Cost | 4,307 | 4,350 |
Fixed maturities, Available for sale, Gross Unrealized, Gains | 10 | 1 |
Fixed maturities, Available for sale, Gross Unrealized, Losses | (37) | (73) |
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses) | (27) | (72) |
Available for sale (AFS) fixed maturities | 4,280 | 4,278 |
Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Available for sale, Amortized Cost | 6,992 | 5,431 |
Fixed maturities, Available for sale, Gross Unrealized, Gains | 156 | 129 |
Fixed maturities, Available for sale, Gross Unrealized, Losses | (20) | (27) |
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses) | 136 | 102 |
Available for sale (AFS) fixed maturities | 7,128 | 5,533 |
Corporate and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturities, Available for sale, Amortized Cost | 22,456 | 21,475 |
Fixed maturities, Available for sale, Gross Unrealized, Gains | 1,231 | 167 |
Fixed maturities, Available for sale, Gross Unrealized, Losses | (21) | (434) |
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses) | 1,210 | (267) |
Available for sale (AFS) fixed maturities | $ 23,666 | $ 21,208 |
Investments - Equity securities
Investments - Equity securities reported at fair value (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | $ 1,937 | $ 1,814 |
Common stocks | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, at cost | 1,164 | 1,241 |
Equity securities | 1,283 | 1,148 |
Equity securities, fair value in excess of cost | 119 | (93) |
Perpetual preferred stocks | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, at cost | 640 | 705 |
Equity securities | 654 | 666 |
Equity securities, fair value in excess of cost | 14 | (39) |
Equity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, at cost | 1,804 | 1,946 |
Equity securities | 1,937 | 1,814 |
Equity securities, fair value in excess of cost | $ 133 | $ (132) |
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 | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed maturities | ||
Available-for-sale securities in a continuous unrealized loss position | ||
Unrealized Loss - Less than twelve months | $ (44) | $ (411) |
Fair Value - Less than twelve months | $ 4,461 | $ 17,766 |
Fair Value as % of Cost - Less than twelve months | 99.00% | 98.00% |
Unrealized Loss - Twelve months or more | $ (44) | $ (192) |
Fair Value - Twelve months or more | $ 2,224 | $ 3,902 |
Fair Value as % of Cost - Twelve months or more | 98.00% | 95.00% |
U.S. Government and government agencies | ||
Available-for-sale securities in a continuous unrealized loss position | ||
Unrealized Loss - Less than twelve months | $ 0 | $ 0 |
Fair Value - Less than twelve months | $ 16 | $ 41 |
Fair Value as % of Cost - Less than twelve months | 100.00% | 100.00% |
Unrealized Loss - Twelve months or more | $ 0 | $ (3) |
Fair Value - Twelve months or more | $ 11 | $ 120 |
Fair Value as % of Cost - Twelve months or more | 100.00% | 98.00% |
States, municipalities and political subdivisions | ||
Available-for-sale securities in a continuous unrealized loss position | ||
Unrealized Loss - Less than twelve months | $ (3) | $ (23) |
Fair Value - Less than twelve months | $ 254 | $ 1,497 |
Fair Value as % of Cost - Less than twelve months | 99.00% | 98.00% |
Unrealized Loss - Twelve months or more | $ (1) | $ (32) |
Fair Value - Twelve months or more | $ 82 | $ 902 |
Fair Value as % of Cost - Twelve months or more | 99.00% | 97.00% |
Foreign government | ||
Available-for-sale securities in a continuous unrealized loss position | ||
Unrealized Loss - Less than twelve months | $ (1) | $ 0 |
Fair Value - Less than twelve months | $ 70 | $ 18 |
Fair Value as % of Cost - Less than twelve months | 99.00% | 100.00% |
Unrealized Loss - Twelve months or more | $ 0 | $ 0 |
Fair Value - Twelve months or more | $ 0 | $ 4 |
Fair Value as % of Cost - Twelve months or more | 0.00% | 100.00% |
Residential MBS | ||
Available-for-sale securities in a continuous unrealized loss position | ||
Unrealized Loss - Less than twelve months | $ (4) | $ (4) |
Fair Value - Less than twelve months | $ 509 | $ 279 |
Fair Value as % of Cost - Less than twelve months | 99.00% | 99.00% |
Unrealized Loss - Twelve months or more | $ (1) | $ (5) |
Fair Value - Twelve months or more | $ 69 | $ 139 |
Fair Value as % of Cost - Twelve months or more | 99.00% | 97.00% |
Commercial MBS | ||
Available-for-sale securities in a continuous unrealized loss position | ||
Unrealized Loss - Less than twelve months | $ 0 | $ (1) |
Fair Value - Less than twelve months | $ 17 | $ 147 |
Fair Value as % of Cost - Less than twelve months | 100.00% | 99.00% |
Unrealized Loss - Twelve months or more | $ 0 | $ (1) |
Fair Value - Twelve months or more | $ 0 | $ 30 |
Fair Value as % of Cost - Twelve months or more | 0.00% | 97.00% |
Collateralized loan obligations | ||
Available-for-sale securities in a continuous unrealized loss position | ||
Unrealized Loss - Less than twelve months | $ (11) | $ (61) |
Fair Value - Less than twelve months | $ 1,284 | $ 3,540 |
Fair Value as % of Cost - Less than twelve months | 99.00% | 98.00% |
Unrealized Loss - Twelve months or more | $ (26) | $ (12) |
Fair Value - Twelve months or more | $ 1,728 | $ 197 |
Fair Value as % of Cost - Twelve months or more | 99.00% | 94.00% |
Other asset-backed securities | ||
Available-for-sale securities in a continuous unrealized loss position | ||
Unrealized Loss - Less than twelve months | $ (12) | $ (16) |
Fair Value - Less than twelve months | $ 1,211 | $ 1,866 |
Fair Value as % of Cost - Less than twelve months | 99.00% | 99.00% |
Unrealized Loss - Twelve months or more | $ (8) | $ (11) |
Fair Value - Twelve months or more | $ 123 | $ 432 |
Fair Value as % of Cost - Twelve months or more | 94.00% | 98.00% |
Corporate and other | ||
Available-for-sale securities in a continuous unrealized loss position | ||
Unrealized Loss - Less than twelve months | $ (13) | $ (306) |
Fair Value - Less than twelve months | $ 1,100 | $ 10,378 |
Fair Value as % of Cost - Less than twelve months | 99.00% | 97.00% |
Unrealized Loss - Twelve months or more | $ (8) | $ (128) |
Fair Value - Twelve months or more | $ 211 | $ 2,078 |
Fair Value as % of Cost - Twelve months or more | 96.00% | 94.00% |
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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Balance at January 1 | $ 142 | $ 145 | $ 153 |
Additional credit impairments on: | |||
Previously impaired securities | 1 | 1 | 1 |
Securities without prior impairments | 0 | 1 | 3 |
Reductions due to sales or redemptions | (9) | (5) | (12) |
Balance at December 31 | $ 134 | $ 142 | $ 145 |
Investments - Scheduled maturit
Investments - Scheduled maturities of available for sale fixed maturities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Percent, Fiscal Year Maturity [Abstract] | ||
Average life of CLOs and Other ABS | 4 years | |
Average life of MBS | 4 years 6 months | |
Securities With Non-Credit Other Than Temporary Impairment Charges [Member] | ||
Fair Value Percent, Fiscal Year Maturity [Abstract] | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ (1) | $ (4) |
Fixed maturities | ||
Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
One year or less | 1,764 | |
After one year through five years | 10,613 | |
After five years through ten years | 13,513 | |
After ten years | 3,539 | |
Fixed maturities amortized cost, Subtotal | 29,429 | |
Collateralized loan obligations and other ABS (average life of approximately 4 years) | 11,299 | |
MBS (average life of approximately 4-1/2 years) | 3,796 | |
Amortized Cost | 44,524 | |
Fair Value, Fiscal Year Maturity [Abstract] | ||
One year or less | 1,793 | |
After one year through five years | 11,044 | |
After five years through ten years | 14,419 | |
After ten years | 3,754 | |
Fixed maturities fair value, Subtotal | 31,010 | |
Collateralized loan obligations and other ABS (average life of approximately 4 years) | 11,408 | |
MBS (average life of approximately 4-1/2 years) | 4,087 | |
Fair Value | $ 46,505 | |
Fair Value Percent, Fiscal Year Maturity [Abstract] | ||
One year or less | 4.00% | |
After one year through five years | 24.00% | |
After five years through ten years | 31.00% | |
After ten years | 8.00% | |
Fixed maturities fair value, Subtotal, Percent | 67.00% | |
Collateralized loan obligations and other ABS (average life of approximately 4 years) | 24.00% | |
MBS (average life of approximately 4-1/2 years) | 9.00% | |
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 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrealized gain on: | |||
Pretax | $ 1,091 | $ 105 | |
Deferred Tax | (229) | (22) | |
Net | 862 | 83 | |
Total fixed maturities | |||
Unrealized gain on: | |||
Pretax | 1,981 | 160 | |
Deferred Tax | (416) | (34) | |
Net | 1,565 | 126 | |
Fixed maturities — annuity segment | |||
Unrealized gain on: | |||
Pretax | [1] | 1,611 | 101 |
Deferred Tax | [1] | (338) | (21) |
Net | [1] | 1,273 | 80 |
Fixed maturities — all other | |||
Unrealized gain on: | |||
Pretax | 370 | 59 | |
Deferred Tax | (78) | (13) | |
Net | 292 | 46 | |
Deferred policy acquisition costs — annuity segment | |||
Unrealized gain on: | |||
Pretax | (681) | (42) | |
Deferred Tax | 143 | 9 | |
Net | (538) | (33) | |
Annuity benefits accumulated | |||
Unrealized gain on: | |||
Pretax | (219) | (14) | |
Deferred Tax | 46 | 3 | |
Net | (173) | (11) | |
Life, accident and health reserves | |||
Unrealized gain on: | |||
Pretax | (1) | ||
Deferred Tax | 0 | ||
Net | (1) | ||
Unearned revenue | |||
Unrealized gain on: | |||
Pretax | 11 | 1 | |
Deferred Tax | (2) | 0 | |
Net | $ 9 | $ 1 | |
[1] | Net 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 | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net Investment Income [Line Items] | ||||
Gross investment income | $ 2,325 | $ 2,116 | $ 1,852 | |
Investment expenses | (22) | (22) | (21) | |
Net investment income | 2,303 | 2,094 | 1,831 | |
Fixed maturities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 1,915 | 1,742 | 1,607 | |
Equity in earnings of partnerships and similar investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 154 | 161 | 64 | |
Other | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 132 | 112 | 102 | |
Investment income | Equity securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 85 | 79 | 73 | |
Accounting Standards Update 2016-01 | Equity securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | [1] | $ 39 | $ 22 | $ 6 |
[1] | Although the change in the fair value of the majority of AFG’s equity securities is recorded in realized gains (losses) on securities, AFG records holding gains and losses in net investment income on equity securities classified as “trading” under previous guidance and on a small portfolio of limited partnership and similar investments that do not qualify for the equity method of accounting. |
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 | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | ||||
Realized before impairments | $ 306 | $ (247) | $ 78 | |
Realized - impairments | (19) | (19) | (73) | |
Total realized gains (losses) on securities | 287 | (266) | 5 | |
Net of tax | ||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | ||||
Realized before impairments | 242 | (195) | 51 | |
Realized - impairments | (15) | (15) | (48) | |
Total realized gains (losses) on securities | 227 | (210) | 3 | |
Change in unrealized | 779 | (536) | 436 | |
Total pretax | ||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | ||||
Realized before impairments | 306 | (247) | 78 | |
Realized - impairments | (19) | (19) | (73) | |
Total realized gains (losses) on securities | 287 | (266) | 5 | |
Change in unrealized | 986 | (679) | 441 | |
Fixed maturities | ||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | ||||
Realized before impairments | 26 | 6 | 17 | |
Realized - impairments | (29) | (26) | (20) | |
Total realized gains (losses) on securities | (3) | (20) | (3) | |
Change in unrealized | 1,821 | (1,181) | 532 | |
Equity securities | ||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | ||||
Realized before impairments | 277 | (265) | 70 | |
Realized - impairments | 0 | 0 | (64) | |
Total realized gains (losses) on securities | 277 | (265) | 6 | |
Change in unrealized | 0 | 0 | 128 | |
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 | 3 | 1 | (6) | |
Realized - impairments | 0 | 0 | (4) | |
Total realized gains (losses) on securities | 3 | 1 | (10) | |
Change in unrealized | 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] | 0 | 11 | (3) |
Realized - impairments | [1] | 10 | 7 | 15 |
Total realized gains (losses) on securities | [1] | 10 | 18 | 12 |
Change in unrealized | [1] | (835) | 502 | (219) |
Effects Of Tax Cuts And Jobs Act Of 2017 | ||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | ||||
Realized before impairments | 0 | |||
Realized - impairments | 0 | |||
Total realized gains (losses) on securities | 0 | |||
Change in unrealized | 149 | |||
Other tax effects | ||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | ||||
Realized before impairments | (27) | |||
Realized - impairments | 25 | |||
Total realized gains (losses) on securities | (2) | |||
Change in unrealized | (154) | |||
Total tax effects | ||||
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | ||||
Realized before impairments | (64) | 52 | (27) | |
Realized - impairments | 4 | 4 | 25 | |
Total realized gains (losses) on securities | (60) | 56 | (2) | |
Change in unrealized | $ (207) | $ 143 | $ (5) | |
[1] | Primarily adjustments to deferred policy acquisition costs and reserves related to the annuity business. |
Investments - Holding gains (lo
Investments - Holding gains (losses) on equity securities still held (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Holding Gains (Losses) on Equity Securities Still Held [Line Items] | |||
Realized gains (losses) on securities | $ 287 | $ (266) | $ 5 |
Gross investment income | 2,325 | 2,116 | 1,852 |
Equity securities | |||
Holding Gains (Losses) on Equity Securities Still Held [Line Items] | |||
Realized gains (losses) on securities | 277 | (265) | $ 6 |
Accounting Standards Update 2016-01 | Equity securities still owned | Equity securities | |||
Holding Gains (Losses) on Equity Securities Still Held [Line Items] | |||
Net holding gains (losses) on equity securities | 207 | (257) | |
Accounting Standards Update 2016-01 | Realized gains (losses) on securities | Equity securities still owned | Equity securities | |||
Holding Gains (Losses) on Equity Securities Still Held [Line Items] | |||
Realized gains (losses) on securities | 169 | (279) | |
Accounting Standards Update 2016-01 | Investment income | Equity securities still owned | Equity securities | |||
Holding Gains (Losses) on Equity Securities Still Held [Line Items] | |||
Gross investment income | $ 38 | $ 22 |
Investments - Gross realized ga
Investments - Gross realized gains and losses on available for sale fixed maturity security investment transactions (Details) - Fixed maturities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gross realized gains and losses on the sale of available for sale fixed maturity security investments | |||
Gross gains | $ 35 | $ 22 | $ 43 |
Gross losses | $ (19) | $ (14) | $ (20) |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($)swap | Dec. 31, 2019USD ($)swap | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2019USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Carrying value of collateral received to support purchased call options | $ 577,000,000 | $ 103,000,000 | |||
Interest rate swaps | Cash Flow Hedges | Contract termination | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | $ 78,000,000 | $ 100,000,000 | $ 138,000,000 | ||
Number of interest rate swaps terminated | swap | 2 | ||||
Number of interest rate swaps expired | swap | 1 | ||||
Not Designated as Hedging Instrument | Fixed-indexed and variable-indexed annuities (embedded derivative) | Annuity benefits | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
The portion of the change in fair value of the embedded derivative related to the unlocking of actuarial assumptions | $ 181,000,000 | (44,000,000) | $ (25,000,000) | ||
Designated as Hedging Instrument | Interest rate swaps | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Number of interest rate swaps designated and qualifying as a cash flow hedges | swap | 13 | ||||
Derivative, Notional Amount | $ 1,980,000,000 | 2,350,000,000 | |||
Gain (loss) reclassified from AOCI into net investment income | 3,000,000 | (3,000,000) | $ 6,000,000 | ||
Collateral receivable supporting interest rate swaps | 20,000,000 | 135,000,000 | |||
Designated as Hedging Instrument | Interest rate swaps | Cash Flow Hedges | Other assets | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net derivatives, at fair value | 50,000,000 | 16,000,000 | |||
Designated as Hedging Instrument | Interest rate swaps | Cash Flow Hedges | Other liabilities | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net derivatives, at fair value | $ (5,000,000) | $ (46,000,000) |
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 | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives included in AFG' s Balance Sheet at fair value | ||
Derivative asset, at fair value | $ 1,026 | $ 293 |
Derivative liability, at fair value | 3,735 | 2,723 |
MBS with embedded derivatives | Fixed maturities | ||
Derivatives included in AFG' s Balance Sheet at fair value | ||
Derivative asset, at fair value | 102 | 109 |
Public company warrants | Equity securities | ||
Derivatives included in AFG' s Balance Sheet at fair value | ||
Derivative asset, at fair value | 0 | 0 |
Fixed-indexed and variable-indexed annuities (embedded derivative) | Annuity benefits accumulated | ||
Derivatives included in AFG' s Balance Sheet at fair value | ||
Derivative liability, at fair value | 3,730 | 2,720 |
Equity index call options | Equity index call options | ||
Derivatives included in AFG' s Balance Sheet at fair value | ||
Derivative asset, at fair value | 924 | 184 |
Equity index put options | Other liabilities | ||
Derivatives included in AFG' s Balance Sheet at fair value | ||
Derivative liability, at fair value | 1 | 1 |
Reinsurance contract (embedded derivative) | Other liabilities | ||
Derivatives included in AFG' s Balance Sheet at fair value | ||
Derivative liability, at fair value | $ 4 | $ 2 |
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 | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (106) | $ (103) | $ (103) | |
MBS with embedded derivatives | Realized gains (losses) on securities | ||||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 10 | (7) | (6) | |
Public company warrants | Realized gains (losses) on securities | ||||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (1) | (3) | 0 | |
Fixed-indexed and variable-indexed annuities (embedded derivative) | Annuity benefits | ||||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | [1] | (919) | 204 | (589) |
Equity index call options | Annuity benefits | ||||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 804 | (298) | 494 | |
Equity index put options | Annuity benefits | ||||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 2 | (1) | 0 | |
Reinsurance contract (embedded derivative) | Net investment income | ||||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (2) | $ 2 | $ (2) | |
[1] | The change in fair value of the embedded derivative includes a favorable adjustment related to unlocking of actuarial assumptions of $181 million in 2019 and losses of $44 million in 2018 and $25 million in 2017 . |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||
Accumulated amortization of present value of future profits | $ 154 | $ 148 |
Approximate annual rate of decrease in present value of future profits during next five years | 12.50% |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs - Progression of deferred policy acquisition costs (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
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 | $ 1,682 | $ 1,216 | $ 1,239 | |
Deferred policy acquisition costs and present value of future profits, additions | 952 | 940 | 817 | |
Deferred policy acquisition costs and present value of future profits, periodic amortization | (860) | (908) | (744) | |
Deferred policy acquisition costs and present value of future profits, annuity unlocking | (77) | 29 | 41 | |
Deferred policy acquisition costs and present value of future profits, change included in realized gains | 9 | 15 | 10 | |
Deferred policy acquisition costs and present value of future profits, foreign currency translation | 0 | (2) | 0 | |
Deferred policy acquisition costs and present value of future profits, other | 10 | |||
Deferred policy acquisition costs and present value of future profits, change in unrealized | (669) | 392 | (157) | |
Deferred policy acquisition costs and present value of future profits, ending balance | 1,037 | 1,682 | 1,216 | |
Property and casualty insurance | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Deferred policy acquisition costs, beginning balance | 299 | 270 | 238 | |
Deferred policy acquisition costs, additions | 744 | 675 | 588 | |
Deferred policy acquisition costs, periodic amortization | (721) | (644) | (556) | |
Deferred policy acquisition costs, foreign currency translation | 0 | (2) | 0 | |
Deferred policy acquisition costs, ending balance | 322 | 299 | 270 | |
Annuity and Other | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Deferred policy acquisition costs, beginning balance | 1,285 | 1,217 | 1,110 | |
Deferred policy acquisition costs, additions | 206 | 263 | 225 | |
Deferred policy acquisition costs, periodic amortization | (120) | (238) | (161) | |
Deferred policy acquisition costs, annuity unlocking | (76) | 29 | 34 | |
Deferred policy acquisition costs, change included in realized gains | 8 | 14 | 9 | |
Deferred policy acquisition costs, ending balance | 1,303 | 1,285 | 1,217 | |
Movement in Deferred Sales Inducements [Roll Forward] | ||||
Deferred sales inducements, beginning balance | 86 | 102 | 110 | |
Deferred sales inducements, additions | 2 | 2 | 4 | |
Deferred sales inducements, periodic amortization | (13) | (19) | (19) | |
Deferred sales inducements, annuity unlocking | (1) | 0 | 6 | |
Deferred sales inducements, change included in realized gains | 1 | 1 | 1 | |
Deferred sales inducements, ending balance | 75 | 86 | 102 | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||||
Present value of future profits, beginning balance | 42 | 49 | 46 | |
Present value of future profits, periodic amortization | (6) | (7) | (8) | |
Present value of future profits, annuity unlocking | 0 | 0 | 1 | |
Present value of future profits, other | 10 | |||
Present value of future profits, ending balance | 36 | 42 | 49 | |
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 | [1] | (30) | (422) | (265) |
Unrealized investment gains (losses), change in unrealized | [1] | (669) | 392 | (157) |
Unrealized investment gains (losses), ending balance | [1] | (699) | (30) | (422) |
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 | 1,383 | 946 | 1,001 | |
Deferred policy acquisition costs and present value of future profits, additions | 208 | 265 | 229 | |
Deferred policy acquisition costs and present value of future profits, periodic amortization | (139) | (264) | (188) | |
Deferred policy acquisition costs and present value of future profits, annuity unlocking | (77) | 29 | 41 | |
Deferred policy acquisition costs and present value of future profits, change included in realized gains | 9 | 15 | 10 | |
Deferred policy acquisition costs and present value of future profits, other | 10 | |||
Deferred policy acquisition costs and present value of future profits, change in unrealized | (669) | 392 | (157) | |
Deferred policy acquisition costs and present value of future profits, ending balance | 715 | 1,383 | 946 | |
Excluding Unrealized Gains | Annuity and Other | ||||
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 | 1,413 | 1,368 | 1,266 | |
Deferred policy acquisition costs and present value of future profits, change in unrealized | 0 | 0 | 0 | |
Deferred policy acquisition costs and present value of future profits, ending balance | $ 1,414 | $ 1,413 | $ 1,368 | |
[1] | Adjustments to DPAC related to net unrealized gains/losses on securities and cash flow hedges. |
Managed Investment Entities - N
Managed Investment Entities - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)collateralizedloanobligation | Dec. 31, 2018USD ($)collateralizedloanobligation | Dec. 31, 2017USD ($)collateralizedloanobligation | |
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 | 60.90% | ||
Number of collateralized loan obligation entities | collateralizedloanobligation | 11 | ||
Proceeds received by subsidiaries related to sales and redemptions of managed investment entities liabilities | $ 45 | $ 103 | |
Face amount of managed investment entities liabilities purchased by subsidiaries after issuance date | 7 | 71 | |
Amount paid by subsidiaries to purchase managed investment entities liabilities after issuance date | $ 7 | $ 71 | |
Number of collateralized loan obligation entities formed during the period | collateralizedloanobligation | 1 | 2 | |
Number of collateralized loan obligation entities that were substantially liquidated during the period | collateralizedloanobligation | 1 | 2 | |
Difference between aggregate unpaid principal balance and fair value of CLOs' fixed maturity investments | $ 146 | $ 232 | |
Difference between aggregate unpaid principal balance and fair value of CLOs' debt | 129 | 241 | |
Carrying amount of CLO loans in default | 10 | ||
Aggregate unpaid principal balance of CLO loans in default | 25 | 0 | |
Available for sale (AFS) fixed maturities | 46,505 | 41,997 | |
Variable interest entity, primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Aggregate fair value of investment in collateralized loan obligations | 165 | 188 | $ 215 |
New collateralized loan obligation entities | |||
Variable Interest Entity [Line Items] | |||
Face value of liabilities issued by managed investment entities on issuance date | 463 | 865 | |
Face amount of managed investment entities liabilities purchased by subsidiaries at issuance date | 31 | $ 48 | |
Subordinated debt obligations | Variable interest entity, primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Aggregate fair value of investment in collateralized loan obligations | 102 | ||
Collateralized loan obligations | |||
Variable Interest Entity [Line Items] | |||
Available for sale (AFS) fixed maturities | 4,280 | 4,278 | |
Collateralized loan obligations | Managed by third parties | |||
Variable Interest Entity [Line Items] | |||
Available for sale (AFS) fixed maturities | 4,280 | $ 4,280 | |
Maximum | |||
Variable Interest Entity [Line Items] | |||
Proceeds received by subsidiaries related to sales and redemptions of managed investment entities liabilities | $ 1 |
Managed Investment Entities - S
Managed Investment Entities - Selected financial information related to CLOs (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Gains (losses) on change in fair value of assets/liabilities: | ||||
Assets | [1] | $ 80 | $ (189) | $ (8) |
Liabilities | [1] | (110) | 168 | 20 |
Management fees paid to AFG | 15 | 16 | 18 | |
CLO earnings (losses) attributable to AFG Shareholders | [2] | 4 | 7 | 23 |
Variable interest entity, primary beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Investment in CLO tranches | $ 165 | $ 188 | $ 215 | |
[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 Intangible_2
Goodwill and Other Intangibles - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill acquired during period | $ 8 | $ 8 | ||
Amortizable intangible assets related to property and casualty insurance acquisitions | 54 | $ 43 | 54 | |
Accumulated amortization | $ 39 | 50 | 39 | |
Amortization of intangible assets | $ 11 | $ 9 | $ 8 | |
Weighted average useful life of finite-lived intangible assets acquired | 4 years | |||
Future amortization of intangibles in next year | $ 12 | |||
Future amortization of intangibles in year two | 6 | |||
Future amortization of intangibles in year three | 4 | |||
Future amortization of intangibles in year four | 4 | |||
Future amortization of intangibles in year five | 4 | |||
Future amortization of intangibles after year five | $ 13 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Changes in the carrying value of goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in the carrying value of goodwill by reporting segment | |||||
Goodwill, Beginning balance | $ 207 | $ 207 | $ 207 | $ 199 | $ 199 |
Goodwill, acquisition of subsidiary | 8 | 8 | |||
Goodwill, Ending balance | 207 | 207 | |||
Property and Casualty | |||||
Changes in the carrying value of goodwill by reporting segment | |||||
Goodwill, Beginning balance | 176 | 176 | 176 | 168 | 168 |
Goodwill, acquisition of subsidiary | 8 | ||||
Goodwill, Ending balance | 176 | 176 | |||
Annuity | |||||
Changes in the carrying value of goodwill by reporting segment | |||||
Goodwill, Beginning balance | 31 | 31 | $ 31 | $ 31 | $ 31 |
Goodwill, acquisition of subsidiary | 0 | ||||
Goodwill, Ending balance | $ 31 | $ 31 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Scheduled principal payments on debt in next year | $ 0 | |||
Scheduled principal payments on debt in year two | 0 | |||
Scheduled principal payments on debt in year three | 0 | |||
Scheduled principal payments on debt in year four | 0 | |||
Scheduled principal payments on debt in year five | 0 | |||
Cash interest payments on long-term debt | 65,000,000 | $ 59,000,000 | $ 85,000,000 | |
AFG | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Revolving credit line | 500,000,000 | |||
Amount borrowed under AFG revolving credit facility | $ 0 | $ 0 | ||
Interest rate description for revolving credit facility | 1.00% to 1.875% (currently 1.375%) over LIBOR | |||
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% | |||
Senior Notes | 4.50% Senior Notes due June 2047 | AFG | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Interest rate on debt instruments | 4.50% | |||
Senior Notes | 3.50% Senior Notes due August 2026 | AFG | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Interest rate on debt instruments | 3.50% | |||
Subordinated Debt | 5.125% Subordinated Debentures due December 2059 | AFG | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Senior Notes, aggregate principal amount | $ 200,000,000 | |||
Interest rate on debt instruments | 5.125% | |||
Subordinated Debt | 6% Subordinated Debentures due November 2055 | AFG | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Interest rate on debt instruments | 6.00% | |||
Subordinated Debt | 5.875% Subordinated Debentures due March 2059 | AFG | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Senior Notes, aggregate principal amount | $ 125,000,000 | |||
Interest rate on debt instruments | 5.875% | 5.875% | ||
Subordinated Debt | 6-1/4% Subordinated Debentures due September 2054 | AFG | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Interest rate on debt instruments | 6.25% | |||
Senior Notes, amount of the original debt instrument that was redeemed | $ 150,000,000 |
Long-Term Debt - Schedule of lo
Long-Term Debt - Schedule of long-term debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of Carrying value of long-term debt | ||
Principal | $ 1,493 | $ 1,318 |
Discount and Issue Costs | (20) | (16) |
Carrying Value | 1,473 | 1,302 |
AFG | ||
Summary of Carrying value of long-term debt | ||
Carrying Value | 1,473 | 1,302 |
Senior Notes | AFG | ||
Summary of Carrying value of long-term debt | ||
Principal | 1,018 | 1,018 |
Discount and Issue Costs | (5) | (6) |
Carrying Value | 1,013 | 1,012 |
Senior Notes | 4.50% Senior Notes due June 2047 | AFG | ||
Summary of Carrying value of long-term debt | ||
Principal | 590 | 590 |
Discount and Issue Costs | (2) | (2) |
Carrying Value | 588 | 588 |
Senior Notes | 3.50% Senior Notes due August 2026 | AFG | ||
Summary of Carrying value of long-term debt | ||
Principal | 425 | 425 |
Discount and Issue Costs | (3) | (4) |
Carrying Value | 422 | 421 |
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 | 475 | 300 |
Discount and Issue Costs | (15) | (10) |
Carrying Value | 460 | 290 |
Subordinated Debentures | 5.125% Subordinated Debentures due December 2059 | AFG | ||
Summary of Carrying value of long-term debt | ||
Principal | 200 | 0 |
Discount and Issue Costs | (6) | 0 |
Carrying Value | 194 | 0 |
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 |
Subordinated Debentures | 5.875% Subordinated Debentures due March 2059 | AFG | ||
Summary of Carrying value of long-term debt | ||
Principal | 125 | 0 |
Discount and Issue Costs | (4) | 0 |
Carrying Value | 121 | 0 |
Subordinated Debentures | 6-1/4% Subordinated Debentures due September 2054 | AFG | ||
Summary of Carrying value of long-term debt | ||
Principal | 0 | 150 |
Discount and Issue Costs | 0 | (5) |
Carrying Value | $ 0 | $ 145 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 158 | $ 174 |
Deferred rent and lease incentives | 22 | 24 |
Operating lease liability | $ 180 | $ 198 |
Leases - Lease activity (Detail
Leases - Lease activity (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating leases | $ 46 |
Short-term leases | 1 |
Total lease expense | $ 47 |
Leases - Other operating lease
Leases - Other operating lease liability information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for lease liabilities reported in operating cash flows | $ 49 |
Right-of-use assets obtained under new leases | $ 19 |
Leases - Undiscounted contractu
Leases - Undiscounted contractual maturities of operating lease liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Lease payments due in 2020 | $ 46 | |
Lease payments due in 2021 | 41 | |
Lease payments due in 2022 | 32 | |
Lease payments due in 2023 | 27 | |
Lease payments due in 2024 | 20 | |
Lease payments due thereafter | 35 | |
Total lease payments | 201 | |
Less: Future ease payments impact of discounting | (21) | |
Operating lease liability | $ 180 | $ 198 |
Leases - Schedule of weighted-a
Leases - Schedule of weighted-average remaing lease term and weighted-average discount rate (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term | 5 years 6 months |
Weighted-average discount rate | 4.10% |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted Common Stock vesting period | four-year | ||||||
Rate of options exercisable per year, commencing one year after grant | 20% per year commencing one year after grant | ||||||
Duration of options expiration, after date of grant | 10 years | ||||||
Total intrinsic value of options exercised | $ 46 | $ 57 | $ 65 | ||||
Cash received from the exercise of stock options | 31 | 29 | 34 | ||||
Tax benefit related to exercise of stock options | 8 | 9 | 18 | ||||
Total compensation expense related to stock incentive plans | 23 | 23 | 30 | ||||
Tax benefit related to compensation costs | 13 | 13 | 27 | ||||
Net of tax unrealized gains (losses) related to credit-only impaired securities | $ 68 | $ 68 | $ 55 | $ 58 | 68 | ||
Cumulative effect of accounting change | $ 4 | ||||||
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect | $ 0 | ||||||
Accounting Standards Update 2018-02 | Tax Cuts and Jobs Act of 2017 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect | $ 145 | $ 145 | |||||
Equity securities | Accounting Standards Update 2016-01 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Cumulative effect of accounting change | $ (221) | ||||||
Stock Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | 0 | ||||
Common Stock reserved for issuance under stock incentive plans (shares) | 4,500,000 | ||||||
Annual Equity Bonus Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Other benefit plans, shares issued (shares) | 45,804 | ||||||
Common Stock issued, fair value per share (USD per share) | $ 115.49 | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted Common Stock vested during period, fair value | $ 11 | $ 10 | $ 14 | ||||
Unrecognized compensation expense related to equity-based awards that have yet to vest | $ 36 | ||||||
Weighted average period of cost expected to be recognized | 2 years 4 months 24 days | ||||||
Maximum | Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense related to equity-based awards that have yet to vest | $ 1 |
Shareholders' Equity - Preferre
Shareholders' Equity - Preferred stock authorized for issuance (Details) | Dec. 31, 2019$ / 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 - Data rel
Shareholders' Equity - Data relating to grants of restricted stock (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at January 1, 2019 | shares | 865,930 |
Granted | shares | 232,635 |
Vested | shares | (167,326) |
Forfeited | shares | (11,304) |
Outstanding at December 31, 2019 | shares | 919,935 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Average grant date fair value, Outstanding, Beginning balance | $ / shares | $ 84.06 |
Average grant date fair value, Granted | $ / shares | 99.28 |
Average grant date fair value, Vested | $ / shares | 66.10 |
Average grant date fair value, Forfeited | $ / shares | 90.26 |
Average grant date fair value, Outstanding, Ending balance | $ / shares | $ 91.10 |
Shareholders' Equity - Data for
Shareholders' Equity - Data for stock options issued under the stock incentive plans (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at January 1, 2019 | shares | 2,667,442 |
Exercised | shares | (747,167) |
Forfeited/Cancelled | shares | (2,485) |
Outstanding at December 31, 2019 | shares | 1,917,790 |
Options exercisable at December 31, 2019 | shares | 1,779,941 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Average exercise price, Beginning balance | $ / shares | $ 48.20 |
Average exercise price, Exercised | $ / shares | 41.13 |
Average exercise price, Forfeited/Cancelled | $ / shares | 61.88 |
Average exercise price, Ending balance | $ / shares | 50.93 |
Average exercise price, Options exercisable | $ / shares | $ 50.13 |
Average remaining contractual term, Options outstanding | 3 years 8 months 12 days |
Average remaining contractual term, Options exercisable | 3 years 7 months 6 days |
Aggregate intrinsic value, Options outstanding | $ | $ 113 |
Aggregate intrinsic value, Options exercisable | $ | $ 107 |
Shareholders' Equity - Progress
Shareholders' Equity - Progression of the components of accumulated other comprehensive income (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | ||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
AOCI beginning balance | $ 48 | ||||||||
Other comprehensive income (loss), net of tax | 815 | $ (544) | $ 296 | ||||||
Cumulative effect of accounting change | $ 4 | ||||||||
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect | 0 | ||||||||
AOCI ending balance | 863 | 48 | |||||||
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 | 997 | (689) | 456 | ||||||
Other comprehensive income (loss), unrealized holding gains on securities arising during the period, tax | (209) | 145 | (159) | ||||||
Other comprehensive income (loss), unrealized holding gains on securities arising during the period, net of tax | 788 | (544) | 297 | ||||||
Reclassification from accumulated other comprehensive income, pretax | [1] | (11) | 10 | (15) | |||||
Reclassification from accumulated other comprehensive income, tax | [1] | 2 | (2) | 5 | |||||
Reclassification from accumulated other comprehensive income, net of tax | (9) | 8 | (10) | ||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
Other comprehensive income (loss), pretax | 986 | (679) | 441 | ||||||
Other comprehensive income (loss), tax | (207) | 143 | (154) | ||||||
Other comprehensive income (loss), net of tax | 779 | (536) | 287 | ||||||
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 | 0 | 0 | 0 | ||||||
Reclassification from accumulated other comprehensive income, net of tax | [1] | 0 | 0 | 0 | |||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||||||
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 | 788 | (544) | 297 | ||||||
Reclassification from accumulated other comprehensive income, net of tax | (9) | 8 | (10) | ||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
AOCI beginning balance | 83 | [2] | 840 | [2] | 404 | ||||
Other comprehensive income (loss), net of tax | 779 | (536) | 287 | ||||||
Cumulative effect of accounting change | 0 | (221) | [3] | ||||||
AOCI ending balance | [2] | $ 840 | 862 | 83 | 840 | ||||
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 | 36 | 2 | (6) | ||||||
Other comprehensive income (loss), tax | (8) | 0 | 2 | ||||||
Other comprehensive income (loss), net of tax | 28 | 2 | (4) | ||||||
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 | ||||||
Accumulated net gain (loss) from cash flow hedges attributable to parent | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
AOCI beginning balance | (11) | (13) | (7) | ||||||
Other comprehensive income (loss), net of tax | 28 | 2 | (4) | ||||||
Cumulative effect of accounting change | 0 | 0 | [3] | ||||||
AOCI ending balance | (13) | 17 | (11) | (13) | |||||
Accumulated foreign currency adjustment including portion attributable to noncontrolling interest | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
Other comprehensive income (loss), pretax | 7 | (9) | 9 | ||||||
Other comprehensive income (loss), tax | 0 | (1) | 3 | ||||||
Other comprehensive income (loss), net of tax | 7 | (10) | 12 | ||||||
Accumulated foreign currency adjustment attributable to noncontrolling interest | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||||||
Accumulated foreign currency adjustment attributable to parent | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
AOCI beginning balance | (16) | (6) | (15) | ||||||
Other comprehensive income (loss), net of tax | 7 | (10) | 12 | ||||||
Cumulative effect of accounting change | 0 | 0 | [3] | ||||||
AOCI ending balance | (6) | (9) | (16) | (6) | |||||
Accumulated defined benefit plans adjustment including portion attributable to noncontrolling interest | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
Other comprehensive income (loss), pretax | 1 | 0 | 1 | ||||||
Other comprehensive income (loss), tax | 0 | 0 | 0 | ||||||
Other comprehensive income (loss), net of tax | 1 | 0 | 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 | ||||||
Accumulated defined benefit plans adjustment attributable to parent | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
AOCI beginning balance | (8) | (8) | (7) | ||||||
Other comprehensive income (loss), net of tax | 1 | 0 | 1 | ||||||
Cumulative effect of accounting change | 0 | 0 | [3] | ||||||
AOCI ending balance | (8) | (7) | (8) | (8) | |||||
AOCI including portion attributable to noncontrolling interest | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
Other comprehensive income (loss), pretax | 1,030 | (686) | 445 | ||||||
Other comprehensive income (loss), tax | (215) | 142 | (149) | ||||||
Other comprehensive income (loss), net of tax | 815 | (544) | 296 | ||||||
AOCI attributable to noncontrolling interest | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||||||
AOCI attributable to parent | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
AOCI beginning balance | 48 | 813 | 375 | ||||||
Other comprehensive income (loss), net of tax | 815 | (544) | 296 | ||||||
Cumulative effect of accounting change | 0 | $ (221) | [3] | ||||||
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect | 145 | ||||||||
AOCI ending balance | 813 | $ 863 | $ 48 | $ 813 | |||||
Tax Cuts and Jobs Act of 2017 | Accumulated net investment gain (loss) attributable to parent | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect | [3] | 149 | |||||||
Tax Cuts and Jobs Act of 2017 | Accumulated net gain (loss) from cash flow hedges attributable to parent | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect | [3] | (2) | |||||||
Tax Cuts and Jobs Act of 2017 | Accumulated defined benefit plans adjustment attributable to parent | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect | [3] | (2) | |||||||
Tax Cuts and Jobs Act of 2017 | AOCI attributable to parent | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect | [3] | 142 | |||||||
Redeemable noncontrolling interests | Tax Cuts and Jobs Act of 2017 | Accumulated foreign currency adjustment attributable to parent | |||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect | [3] | $ (3) | |||||||
[1] | The reclassification adjustment out of net unrealized gains (losses) 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 | ||||||||
[2] | Includes net unrealized gains of $55 million at December 31, 2019 compared to $58 million and $68 million at December 31, 2018 and 2017 , related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings. | ||||||||
[3] | On January 1, 2018, AFG adopted new guidance that requires all equity securities other than those accounted for under the equity method to be reported at fair value with holding gains and losses recognized in net earnings. At the date of adoption, the $221 million net unrealized gain on equity securities classified as available for sale (with unrealized holding gains and losses reported in AOCI) under the prior guidance was reclassified from AOCI to retained earnings as the cumulative effect of an accounting change. Other also includes the December 2017 reclassification of $145 million stranded in AOCI from accounting for the Tax Cuts and Jobs Act of 2017 to retained earnings (see Note A — “ Accounting Policies — Income Taxes ”) and the impact on AOCI of the December 2017 sale of redeemable noncontrolling interests in Neon . |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) £ in Millions, $ in Millions | Jan. 01, 2018 | Jan. 31, 2008USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2019GBP (£) | |
Income Tax Reconciliation [Line Items] | |||||||||||
Statutory rate of income taxes | 21.00% | 21.00% | 35.00% | ||||||||
Impact of foreign operations included in the provision for income taxes | $ 4 | $ (2) | $ 21 | ||||||||
Decrease in the valuation allowance related to the change in the U.S. corporate tax rate | 17 | 11 | (7) | ||||||||
Income tax expense (benefit) | 239 | 122 | 247 | ||||||||
Decrease in net deferred tax assets resulting from the changes in the Tax Cuts and Jobs Act of 2017 | 0 | 0 | $ 83 | ||||||||
Effective tax rate excluding the charge related to the exit of certain lines of business within subsidiaries and impact of the change in the U.S. corporate tax rate | 31.00% | ||||||||||
Income (losses) subject to tax in foreign jurisdictions | (109) | (69) | $ (58) | ||||||||
Operating loss carryforwards, valuation allowance | 19 | ||||||||||
Cash payments for income taxes | $ 278 | $ 156 | 194 | ||||||||
Limitation on the use of tax credit carryforwards | A SRLY NOL can be used only by the entity that created it and only in years that both it and the consolidated group have taxable income. Approximately $19 million of AFG’s SRLY NOLs expired unutilized at December 31, 2018. | ||||||||||
Tax Cuts and Jobs Act implementation complete | true | ||||||||||
AFG | |||||||||||
Income Tax Reconciliation [Line Items] | |||||||||||
Income tax expense (benefit) | $ 239 | $ 122 | 247 | ||||||||
Unrecognized tax benefits that would impact the effective tax rate | 0 | ||||||||||
Interest included in tax provision | 0 | ||||||||||
Neon Capital Limited | |||||||||||
Income Tax Reconciliation [Line Items] | |||||||||||
Income tax expense (benefit) | $ (56) | $ (48) | |||||||||
Increase (Decrease) in current taxes payable | (20) | ||||||||||
Charge for valuation allowance | |||||||||||
Income Tax Reconciliation [Line Items] | |||||||||||
Charge for valuation allowance against deferred tax assets | 118 | ||||||||||
Maximum | AFG | |||||||||||
Income Tax Reconciliation [Line Items] | |||||||||||
Unrecognized tax benefits that would impact the effective tax rate | 1 | ||||||||||
Interest included in tax provision | 1 | 1 | |||||||||
Amount of expense for penalties related to a tax position | 1 | 1 | 1 | ||||||||
Income tax penalties accrued | 0 | $ 1 | |||||||||
Amount unutilized | |||||||||||
Income Tax Reconciliation [Line Items] | |||||||||||
Operating loss carryforwards | 19 | ||||||||||
Tax Cuts and Jobs Act of 2017 | |||||||||||
Income Tax Reconciliation [Line Items] | |||||||||||
Statutory rate of income taxes | 21.00% | ||||||||||
Decrease in net deferred tax assets resulting from the changes in the Tax Cuts and Jobs Act of 2017 | $ (83) | ||||||||||
Tax Cuts and Jobs Act of 2017 | Neon Capital Limited | |||||||||||
Income Tax Reconciliation [Line Items] | |||||||||||
Decrease in the valuation allowance related to the change in the U.S. corporate tax rate | (61) | ||||||||||
United Kingdom | |||||||||||
Income Tax Reconciliation [Line Items] | |||||||||||
Operating loss carryforwards | [1] | $ 305 | £ 231 | ||||||||
Property and casualty insurance | |||||||||||
Income Tax Reconciliation [Line Items] | |||||||||||
Change in AFG’s liability for uncertain tax positions due to the uncertainty in state taxation | $ 1 | ||||||||||
Property and casualty insurance | Maximum | |||||||||||
Income Tax Reconciliation [Line Items] | |||||||||||
Tax payments due to resolved uncertainty in state taxation | 1 | ||||||||||
Neon Capital Limited | |||||||||||
Income Tax Reconciliation [Line Items] | |||||||||||
Payments to acquire controlling interest in subsidiaries | $ 75 | ||||||||||
Percentage ownership of subsidiary | 67.00% | ||||||||||
Payments to acquire additional interest in subsidiaries | $ 17 | ||||||||||
Foreign underwriting losses | |||||||||||
Income Tax Reconciliation [Line Items] | |||||||||||
Impact of foreign operations included in the provision for income taxes | $ 14 | ||||||||||
[1] | £231 million |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income taxes at the statutory rate to the provision for income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Earnings before income taxes (“EBT”) | $ 1,108 | $ 639 | $ 724 |
Income taxes at statutory rate | 233 | 134 | 253 |
Effect of tax exempt interest | (14) | (13) | (23) |
Effect of stock-based compensation | (8) | (8) | (16) |
Effect of dividends received deduction | (4) | (4) | (8) |
Effect of adjustments to prior year taxes | (3) | (8) | (4) |
Effect of employee stock ownership plan dividend paid deduction | (2) | (3) | (5) |
Effect of change in valuation allowance (excluding change in tax rate) | 17 | 11 | (7) |
Effect of nondeductible expenses | 8 | 7 | 6 |
Effect of foreign operations | 4 | (2) | 21 |
Effect of Neon restructuring | 0 | 0 | (56) |
Effective of change in U.S. corporate tax rate | 0 | 0 | 83 |
Effect of other income tax reconciliation | 8 | 8 | 3 |
Provision for income taxes as shown in the Statement of Earnings | $ 239 | $ 122 | $ 247 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income taxes at statutory rate as a percentage of EBT | 21.00% | 21.00% | 35.00% |
Effect of tax exempt interest as a percentage of EBT | (1.00%) | (2.00%) | (3.00%) |
Effect of stock-based compensation as a percentage of EBT | (1.00%) | (1.00%) | (2.00%) |
Effect of dividend received deduction as a percentage of EBT | 0.00% | (1.00%) | (1.00%) |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | 0.00% | (1.00%) | (1.00%) |
Effect of employee stock ownership plan dividend paid deduction as a percentage of EBT | 0.00% | (1.00%) | (1.00%) |
Effect of change in valuation allowance (excluding change in tax rate) as a percentage of EBT | 2.00% | 2.00% | (1.00%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | 1.00% | 1.00% | 1.00% |
Effect of foreign operations as a percentage of EBT | 0.00% | 0.00% | 3.00% |
Effect of Neon restructuring as a percentage of EBT | 0.00% | 0.00% | (8.00%) |
Effective of change in U.S. corporate tax rate as a percentage of EBT | 0 | 0 | 0.11 |
Effect of other income tax reconciliation as a percentage of EBT | 0.00% | 1.00% | 1.00% |
Provision for income taxes as shown in the Statement of Earnings as a percentage of EBT | 22.00% | 19.00% | 34.00% |
Income Taxes - Total income tax
Income Taxes - Total income tax provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current taxes: | |||
Federal | $ 250 | $ 196 | $ 153 |
State | 10 | 8 | 6 |
Foreign | 2 | 0 | 0 |
Deferred taxes: | |||
Federal | (23) | (82) | 5 |
Impact of change in U.S. corporate tax rate | 0 | 0 | 83 |
Total Federal deferred taxes | (23) | (82) | 88 |
Provision for income taxes as shown in the Statement of Earnings | $ 239 | $ 122 | $ 247 |
Income Taxes - Operating and ca
Income Taxes - Operating and capital loss carryforwards available (Details) - Dec. 31, 2019 £ in Millions, $ in Millions | USD ($) | GBP (£) | |
U.S. | Expiring 2019 - 2022 | |||
Operating and capital loss carryforwards [Line Items] | |||
Operating loss carryforwards | $ 93 | ||
United Kingdom | |||
Operating and capital loss carryforwards [Line Items] | |||
Operating loss carryforwards | [1] | $ 305 | £ 231 |
[1] | £231 million |
Income Taxes - Significant comp
Income Taxes - Significant components of deferred tax assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Federal net operating loss carryforwards | $ 19 | $ 23 |
Foreign underwriting losses | 118 | 93 |
Insurance claims and reserves | 875 | 743 |
Employee benefits | 93 | 88 |
Other, net | 43 | 44 |
Total deferred tax assets before valuation allowance | 1,148 | 991 |
Valuation allowance against deferred tax assets | (140) | (119) |
Total deferred tax assets | 1,008 | 872 |
Deferred tax liabilities: | ||
Investment securities | (556) | (70) |
Deferred policy acquisition costs | (150) | (291) |
Insurance claims and reserves transition liability | (93) | (110) |
Real estate, property and equipment | (35) | (36) |
Total deferred tax liabilities | (834) | (507) |
Net deferred tax asset (liability) | 174 | 365 |
Excluding Unrealized Gains | ||
Deferred tax assets: | ||
Federal net operating loss carryforwards | 19 | 23 |
Foreign underwriting losses | 118 | 93 |
Insurance claims and reserves | 829 | 740 |
Employee benefits | 93 | 88 |
Other, net | 45 | 44 |
Total deferred tax assets before valuation allowance | 1,104 | 988 |
Valuation allowance against deferred tax assets | (140) | (119) |
Total deferred tax assets | 964 | 869 |
Deferred tax liabilities: | ||
Investment securities | (140) | (36) |
Deferred policy acquisition costs | (293) | (300) |
Insurance claims and reserves transition liability | (93) | (110) |
Real estate, property and equipment | (35) | (36) |
Total deferred tax liabilities | (561) | (482) |
Net deferred tax asset (liability) | 403 | 387 |
Impact of Unrealized Gains | ||
Deferred tax assets: | ||
Federal net operating loss carryforwards | 0 | 0 |
Foreign underwriting losses | 0 | 0 |
Insurance claims and reserves | 46 | 3 |
Employee benefits | 0 | 0 |
Other, net | (2) | 0 |
Total deferred tax assets before valuation allowance | 44 | 3 |
Valuation allowance against deferred tax assets | 0 | 0 |
Total deferred tax assets | 44 | 3 |
Deferred tax liabilities: | ||
Investment securities | (416) | (34) |
Deferred policy acquisition costs | 143 | 9 |
Insurance claims and reserves transition liability | 0 | 0 |
Real estate, property and equipment | 0 | 0 |
Total deferred tax liabilities | (273) | (25) |
Net deferred tax asset (liability) | $ (229) | $ (22) |
Income Taxes - Progression of t
Income Taxes - Progression of the liability for uncertain tax positions, excluding interest and penalties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Progression of the liability for uncertain tax positions, excluding interest and penalties | |||
Balance at January 1 | $ 0 | $ 0 | $ 1 |
Additions for tax positions of prior years | 0 | 0 | 0 |
Reductions for tax positions of prior years | 0 | 0 | 0 |
Additions for tax positions of current year | 0 | 0 | 0 |
Settlements | 0 | 0 | (1) |
Balance at December 31 | $ 0 | $ 0 | $ 0 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) - USD ($) $ in Millions | Dec. 24, 2015 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loss Contingencies [Line Items] | ||||||||
Reinsurance recoverables on asbestos and environmental reserves, net of allowance | $ 3,024 | $ 2,942 | $ 2,957 | $ 2,302 | ||||
Property and Casualty Group | ||||||||
Loss Contingencies [Line Items] | ||||||||
Increase in asbestos and environmental reserves | $ 18 | $ 18 | $ 89 | |||||
Liability for asbestos and environmental reserves | 529 | |||||||
Former railroad and manufacturing operations | ||||||||
Loss Contingencies [Line Items] | ||||||||
Increase in asbestos and environmental reserves | $ 11 | $ 9 | $ 24 | |||||
American Premier and its subsidiaries | ||||||||
Loss Contingencies [Line Items] | ||||||||
Liability for environmental and other claims | 84 | |||||||
GAFRI | ||||||||
Loss Contingencies [Line Items] | ||||||||
Liability for environmental and other claims | 8 | |||||||
Run-off long-term care and life | ||||||||
Loss Contingencies [Line Items] | ||||||||
Contingent capital support agreement amount | $ 35 | |||||||
Contingent capital support agreement term | 5 years | |||||||
A&E reserves | Property and Casualty Group | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reinsurance recoverables on asbestos and environmental reserves, net of allowance | $ 146 |
Quarterly Operating Results (_3
Quarterly Operating Results (Unaudited) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Operating Results (Unaudited) [Line Items] | ||||||
Increase (decrease) in holding company expenses related to employee benefit plans | $ 20 | |||||
Property and casualty insurance | Other lines | ||||||
Quarterly Operating Results (Unaudited) [Line Items] | ||||||
Increase in asbestos and environmental reserves | $ 18 | $ 18 | $ 18 | $ 18 | $ 89 | |
Special charges related to the exit of certain lines of business within subsidiaries | 76 | |||||
Other | ||||||
Quarterly Operating Results (Unaudited) [Line Items] | ||||||
Write off of deferred debt issuance cost due to the retirement of debt | $ 5 | |||||
Other | Former railroad and manufacturing operations | ||||||
Quarterly Operating Results (Unaudited) [Line Items] | ||||||
Increase in asbestos and environmental reserves | $ 11 | $ 9 |
Quarterly Operating Results (_4
Quarterly Operating Results (Unaudited) - Quarterly results of consolidated operations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Statement of Earnings | |||||||||||
Revenues | $ 2,130 | $ 2,123 | $ 1,960 | $ 2,024 | $ 1,690 | $ 2,008 | $ 1,833 | $ 1,619 | $ 8,237 | $ 7,150 | $ 6,865 |
Net earnings, including noncontrolling interests | 191 | 143 | 209 | 326 | (35) | 203 | 208 | 141 | 869 | 517 | 477 |
Net earnings attributable to shareholders | $ 211 | $ 147 | $ 210 | $ 329 | $ (29) | $ 204 | $ 210 | $ 145 | $ 897 | $ 530 | $ 475 |
Earnings Attributable to Shareholders per Common Share: | |||||||||||
Basic (USD per share) | $ 2.33 | $ 1.64 | $ 2.34 | $ 3.68 | $ (0.33) | $ 2.30 | $ 2.36 | $ 1.64 | $ 9.98 | $ 5.95 | $ 5.40 |
Diluted (USD per share) | $ 2.30 | $ 1.62 | $ 2.31 | $ 3.63 | $ (0.33) | $ 2.26 | $ 2.31 | $ 1.60 | $ 9.85 | $ 5.85 | $ 5.28 |
Average number of Common Shares: | |||||||||||
Basic (shares) | 90.2 | 90 | 89.7 | 89.4 | 89.3 | 89.1 | 89 | 88.6 | 89.9 | 89 | 87.8 |
Diluted (shares) | 91.3 | 91.1 | 91 | 90.7 | 89.3 | 90.7 | 90.7 | 90.4 | 91 | 90.6 | 89.8 |
Quarterly Operating Results (_5
Quarterly Operating Results (Unaudited) - Realized gains (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Realized gains (losses) | ||||||||||
Realized Gains (Losses) on Securities and Subsidiaries | $ (2) | $ (3) | $ 12 | $ 2 | $ (15) | $ 1 | $ 8 | $ 2 | $ 9 | $ (4) |
Equity securities | Accounting Standards Update 2016-01 | ||||||||||
Realized gains (losses) | ||||||||||
Realized Gains (Losses) on Securities and Subsidiaries | $ 67 | $ (15) | $ 44 | $ 182 | $ (223) | $ 33 | $ 23 | $ (95) | $ 278 | $ (262) |
Quarterly Operating Results (_6
Quarterly Operating Results (Unaudited) - Impact of fair value accounting on annuities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Impact of Unlocking, Changes in the Fair Value of Derivatives, and Changes in the Stock Market and Interest Rates on the Accounting for FIAs | $ 24 | $ (27) | $ (33) | $ (11) | $ (66) | $ 17 | $ (14) | $ 15 | $ (47) | $ (48) |
Quarterly Operating Results (_7
Quarterly Operating Results (Unaudited) - Favorable (adverse) prior year development of the liability for losses and LAE (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Prior year claims and claims adjustment expense | $ 45 | $ 12 | $ 41 | $ 45 | $ 61 | $ 31 | $ 44 | $ 56 | $ 143 | $ 192 |
Quarterly Operating Results (_8
Quarterly Operating Results (Unaudited) - Catastrophe losses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Pretax catastrophe losses | $ (15) | $ (22) | $ (12) | $ (12) | $ (38) | $ (38) | $ (16) | $ (13) | $ (61) | $ (105) |
Insurance - Narrative (Details)
Insurance - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance [Line Items] | |||||||||||||
Carrying value of cash and securities owned by U.S.-based insurance subsidiaries on deposit | $ 1,040 | $ 1,040 | |||||||||||
Carrying value of cash and securities owned by insurance subsidiaries on deposit in support of underwriting activities at Lloyd's | 217 | 217 | |||||||||||
Undrawn letters of credit | 414 | 414 | |||||||||||
Undrawn letters of credit, collateralized | 0 | $ 0 | |||||||||||
Workers' compensation insurance discount rate | 4.50% | 4.50% | |||||||||||
Workers' compensation insurance discount, which has reduced the liability for unpaid losses and loss adjustment expenses | 12 | $ 13 | $ 12 | $ 13 | |||||||||
Prior year claims and claims adjustment expense | 45 | $ 12 | $ 41 | $ 45 | 61 | $ 31 | $ 44 | $ 56 | 143 | 192 | |||
Long-term care insurance reserves, net of reinsurance recoverables | 46 | 45 | 46 | 45 | |||||||||
Investment in Federal Home Loan Bank capital stock | 52 | 52 | |||||||||||
Advances from Federal Home Loan Bank | 1,100 | 1,100 | $ 1,100 | 1,100 | |||||||||
Proceeds from Federal Home Loan Bank Advance, Investing Activities | 225 | ||||||||||||
Description of variable rate basis | LIBOR | ||||||||||||
Repayments of advances from Federal Home Loan Bank due in next twelve months | 310 | $ 310 | |||||||||||
Repayments of advances from Federal Home Loan Bank due in year two | 786 | 786 | |||||||||||
Fair value of fixed maturity investments held as collateral by the Federal Home Loan Bank | 1,270 | 1,270 | |||||||||||
Interest on advances from Federal Home Loan Bank | 27 | 20 | $ 14 | ||||||||||
Maximum amount of dividends available to be paid by insurance subsidiaries to AFG without prior approval of regulatory authorities | 852 | 852 | |||||||||||
Dividends on common stock | (446) | (397) | (421) | ||||||||||
Aggregate guaranteed minimum death benefit value on variable annuity polices in force | 13 | 35 | 13 | 35 | |||||||||
Minimum | |||||||||||||
Insurance [Line Items] | |||||||||||||
Dividends payments without violating the most restrictive debt covenants, minimum | 2,500 | $ 2,500 | |||||||||||
Minimum | LIBOR | |||||||||||||
Insurance [Line Items] | |||||||||||||
FHLB advances, basis spread on variable rate | 0.13% | ||||||||||||
Maximum | LIBOR | |||||||||||||
Insurance [Line Items] | |||||||||||||
FHLB advances, basis spread on variable rate | 0.21% | ||||||||||||
Average | LIBOR | |||||||||||||
Insurance [Line Items] | |||||||||||||
FHLB advances, basis spread on variable rate | 1.95% | ||||||||||||
FHLB, advances, refinanced terms | |||||||||||||
Insurance [Line Items] | |||||||||||||
Advances from Federal Home Loan Bank | 610 | 40 | $ 610 | 40 | |||||||||
Neon exited lines charge | |||||||||||||
Insurance [Line Items] | |||||||||||||
Prior year claims and claims adjustment expense | $ 7 | 0 | (18) | ||||||||||
Catastrophe Bonds | |||||||||||||
Insurance [Line Items] | |||||||||||||
Catastrophe reinsurance coverage, excess retention percentage | 95.00% | ||||||||||||
Catastrophe reinsurance coverage, excess retention amount | $ 200 | ||||||||||||
Catastrophe reinsurance coverage, retention amount | 134 | ||||||||||||
Catastrophe reinsurance coverage, annual cost | 11 | ||||||||||||
Life insurance | |||||||||||||
Insurance [Line Items] | |||||||||||||
Increased statutory surplus resulting from reinsurance treaty | 2,868 | 2,701 | 2,868 | 2,701 | |||||||||
Life insurance in force, ceded premiums | 6,230 | 7,690 | 6,230 | 7,690 | |||||||||
Life insurance in force, direct premiums | $ 9,530 | 10,820 | 9,530 | 10,820 | |||||||||
Reinsurance ceded | 20 | 22 | 28 | ||||||||||
Reinsurance recoveries | 32 | 38 | 35 | ||||||||||
Variable annuities | Maximum | |||||||||||||
Insurance [Line Items] | |||||||||||||
Death benefits paid in excess of the variable annuity account balances | 1 | 1 | 1 | ||||||||||
Property and casualty insurance | Other lines | |||||||||||||
Insurance [Line Items] | |||||||||||||
Special A&E charges | $ 18 | $ 18 | $ 18 | 18 | 89 | ||||||||
Neon Capital Limited | Property and casualty insurance | |||||||||||||
Insurance [Line Items] | |||||||||||||
Favorable reserve development related to certain lines of business within subsidiaries in connection with a reinsurance to close agreement | $ 42 | ||||||||||||
Neon Capital Limited | Property and casualty insurance | Other lines | |||||||||||||
Insurance [Line Items] | |||||||||||||
Favorable reserve development related to certain lines of business within subsidiaries in connection with a reinsurance to close agreement | 18 | $ 18 | |||||||||||
Neon Capital Limited | Property and casualty insurance | Other lines | Reinsurance to close agreement | |||||||||||||
Insurance [Line Items] | |||||||||||||
Favorable reserve development related to certain lines of business within subsidiaries in connection with a reinsurance to close agreement | $ 18 | ||||||||||||
Neon Capital Limited | Neon Capital Limited | Current lines | |||||||||||||
Insurance [Line Items] | |||||||||||||
Favorable reserve development related to certain lines of business within subsidiaries in connection with a reinsurance to close agreement | $ 24 | ||||||||||||
Great American Life Insurance Company | Life insurance | |||||||||||||
Insurance [Line Items] | |||||||||||||
Increased statutory surplus resulting from reinsurance treaty | $ 510 | $ 510 |
Insurance - Analysis of changes
Insurance - Analysis of changes in the liability for losses and loss adjustment expenses, net of reinsurance (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Analysis of changes in the liability for losses and loss adjustment expenses, net of reinsurance | ||||||||||||||
Balance at beginning of period | $ 9,741 | $ 9,678 | $ 9,741 | $ 9,678 | $ 8,563 | |||||||||
Less reinsurance recoverables, net of allowance | $ 3,024 | $ 2,942 | 3,024 | 2,942 | 2,957 | $ 2,302 | ||||||||
Net liability at beginning of period | 6,799 | 6,721 | 6,799 | 6,721 | 6,261 | |||||||||
Liability for losses and loss adjustment expenses, period increase (decrease) [Abstract] | ||||||||||||||
Provision for losses and LAE occurring in the current year | 3,414 | 3,195 | 3,019 | |||||||||||
Net increase (decrease) in the provision for claims of prior years: | ||||||||||||||
Provision for claims of prior years related to special A&E charges, Neon exited lines development and other | 45 | $ 12 | $ 41 | $ 45 | 61 | $ 31 | $ 44 | $ 56 | 143 | 192 | ||||
Total losses and LAE incurred | 3,271 | 3,003 | 2,955 | |||||||||||
Payments for losses and LAE of: | ||||||||||||||
Current year | (1,076) | (963) | (942) | |||||||||||
Prior years | (1,790) | (1,639) | (1,586) | |||||||||||
Total payments | (2,866) | (2,602) | (2,528) | |||||||||||
Reserves of businesses disposed | 0 | [1] | (319) | 0 | [1] | |||||||||
Foreign currency translation and other | 4 | (4) | 33 | |||||||||||
Net liability at end of period | 7,208 | 6,799 | 7,208 | 6,799 | 6,721 | |||||||||
Add back reinsurance recoverables, net of allowance | 3,024 | 2,942 | 3,024 | 2,942 | 2,957 | |||||||||
Gross unpaid losses and LAE included in the balance sheet | $ 10,232 | $ 9,741 | 10,232 | 9,741 | 9,678 | |||||||||
Special A&E charges | ||||||||||||||
Liability for losses and loss adjustment expenses, period increase (decrease) [Abstract] | ||||||||||||||
Special A&E charges | 18 | 18 | 89 | |||||||||||
Neon exited lines charge | ||||||||||||||
Net increase (decrease) in the provision for claims of prior years: | ||||||||||||||
Provision for claims of prior years related to special A&E charges, Neon exited lines development and other | 7 | 0 | (18) | |||||||||||
Other | ||||||||||||||
Net increase (decrease) in the provision for claims of prior years: | ||||||||||||||
Provision for claims of prior years related to special A&E charges, Neon exited lines development and other | $ (168) | $ (210) | $ (135) | |||||||||||
[1] | Reflects the reinsurance to close transactions at Neon (discussed below). |
Insurance - Reconciliation of i
Insurance - Reconciliation of incurred and paid claims development information to the aggregate carrying amount of the liability for unpaid losses and LAE (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total reserves, net of reinsurance | $ 7,208 | $ 6,799 | $ 6,721 | $ 6,261 |
Add back reinsurance recoverables, net of allowance | (3,024) | (2,942) | (2,957) | (2,302) |
Gross unpaid losses and LAE included in the balance sheet | 10,232 | $ 9,741 | $ 9,678 | $ 8,563 |
Property and casualty insurance | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Specialty unpaid losses and LAE, net of reinsurance | 5,761 | |||
Other unpaid losses and LAE, net of reinsurance | 1,447 | |||
Unallocated LAE | 361 | |||
Total reserves, net of reinsurance | 7,208 | |||
Add back reinsurance recoverables, net of allowance | 3,024 | |||
Gross unpaid losses and LAE included in the balance sheet | 10,232 | |||
Property and casualty insurance | Reserves for foreign operations: | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Other unpaid losses and LAE, net of reinsurance | 289 | |||
Property and casualty insurance | A&E reserves | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Other unpaid losses and LAE, net of reinsurance | 383 | |||
Property and casualty insurance | Other | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Other unpaid losses and LAE, net of reinsurance | 57 | |||
Property and casualty insurance | Property and transportation | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Specialty unpaid losses and LAE, net of reinsurance | 1,171 | |||
Property and casualty insurance | Specialty casualty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Specialty unpaid losses and LAE, net of reinsurance | 4,056 | |||
Property and casualty insurance | Specialty financial | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Specialty unpaid losses and LAE, net of reinsurance | 221 | |||
Property and casualty insurance | Other specialty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Specialty unpaid losses and LAE, net of reinsurance | 313 | |||
Neon Capital Limited | Property and casualty insurance | Reserves for foreign operations: | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Other unpaid losses and LAE, net of reinsurance | $ 357 |
Insurance - Short-duration insu
Insurance - Short-duration insurance contracts, claims development (Details) - Property and casualty insurance $ in Millions | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | |
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 20,979 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | 15,715 | ||||||||||
Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) | 497 | ||||||||||
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) | 5,761 | ||||||||||
Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | 1,666 | $ 1,676 | $ 1,690 | $ 1,698 | $ 1,698 | $ 1,710 | $ 1,690 | $ 1,705 | $ 1,710 | $ 1,724 | |
Total IBNR Plus Expected Development on Reported Claims | $ 33 | ||||||||||
Cumulative Number of Reported Claims | claim | 216,746 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 1,611 | 1,595 | 1,580 | 1,562 | 1,536 | 1,485 | 1,387 | 1,220 | 1,005 | 576 | |
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [1] | 96.70% | |||||||||
Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 1,832 | 1,843 | 1,859 | 1,866 | 1,861 | 1,871 | 1,849 | 1,848 | 1,840 | ||
Total IBNR Plus Expected Development on Reported Claims | $ 43 | ||||||||||
Cumulative Number of Reported Claims | claim | 209,433 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 1,750 | 1,734 | 1,711 | 1,682 | 1,629 | 1,534 | 1,389 | 1,181 | 609 | ||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [1] | 95.50% | |||||||||
Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 1,886 | 1,906 | 1,941 | 1,955 | 1,947 | 1,946 | 1,952 | 1,970 | |||
Total IBNR Plus Expected Development on Reported Claims | $ 64 | ||||||||||
Cumulative Number of Reported Claims | claim | 218,880 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 1,788 | 1,785 | 1,735 | 1,675 | 1,579 | 1,418 | 1,214 | 824 | |||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [1] | 94.80% | |||||||||
Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 1,969 | 1,982 | 2,000 | 1,996 | 2,000 | 2,011 | 2,036 | ||||
Total IBNR Plus Expected Development on Reported Claims | $ 94 | ||||||||||
Cumulative Number of Reported Claims | claim | 222,253 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 1,824 | 1,774 | 1,714 | 1,617 | 1,443 | 1,214 | 697 | ||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [1] | 92.60% | |||||||||
Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 1,978 | 2,004 | 2,038 | 2,040 | 2,050 | 2,083 | |||||
Total IBNR Plus Expected Development on Reported Claims | $ 124 | ||||||||||
Cumulative Number of Reported Claims | claim | 218,852 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 1,773 | 1,705 | 1,588 | 1,422 | 1,174 | 594 | |||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [1] | 89.60% | |||||||||
Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 2,022 | 2,038 | 2,041 | 2,047 | 2,114 | ||||||
Total IBNR Plus Expected Development on Reported Claims | $ 162 | ||||||||||
Cumulative Number of Reported Claims | claim | 229,607 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 1,722 | 1,592 | 1,404 | 1,129 | 619 | ||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [1] | 85.20% | |||||||||
Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 2,060 | 2,082 | 2,083 | 2,117 | |||||||
Total IBNR Plus Expected Development on Reported Claims | $ 315 | ||||||||||
Cumulative Number of Reported Claims | claim | 221,938 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 1,539 | 1,350 | 1,099 | 577 | |||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [1] | 74.70% | |||||||||
Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 2,329 | 2,348 | 2,375 | ||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 502 | ||||||||||
Cumulative Number of Reported Claims | claim | 244,561 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 1,524 | 1,250 | 709 | ||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [1] | 65.40% | |||||||||
Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 2,516 | 2,507 | |||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 750 | ||||||||||
Cumulative Number of Reported Claims | claim | 231,707 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 1,337 | 730 | |||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [1] | 53.10% | |||||||||
Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 2,721 | ||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 1,225 | ||||||||||
Cumulative Number of Reported Claims | claim | 225,075 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 847 | ||||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [1] | 31.10% | |||||||||
Excludes short-duration insurance contracts detail for accident years not separately presented | |||||||||||
Claims Development [Line Items] | |||||||||||
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) | $ 5,264 | ||||||||||
Property and transportation | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | 8,399 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | 7,247 | ||||||||||
Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) | 19 | ||||||||||
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) | 1,171 | ||||||||||
Property and transportation | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | 655 | 655 | 657 | 660 | 655 | 655 | 652 | 645 | 639 | 679 | |
Total IBNR Plus Expected Development on Reported Claims | $ 3 | ||||||||||
Cumulative Number of Reported Claims | claim | 138,105 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 650 | 649 | 647 | 642 | 637 | 626 | 596 | 535 | 486 | 316 | |
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [2] | 99.20% | |||||||||
Property and transportation | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 843 | 844 | 846 | 850 | 837 | 827 | 813 | 799 | 811 | ||
Total IBNR Plus Expected Development on Reported Claims | $ 5 | ||||||||||
Cumulative Number of Reported Claims | claim | 138,309 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 834 | 833 | 829 | 821 | 803 | 771 | 727 | 667 | 365 | ||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [2] | 98.90% | |||||||||
Property and transportation | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 881 | 886 | 890 | 894 | 883 | 871 | 857 | 864 | |||
Total IBNR Plus Expected Development on Reported Claims | $ 8 | ||||||||||
Cumulative Number of Reported Claims | claim | 143,122 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 869 | 882 | 856 | 842 | 816 | 772 | 708 | 572 | |||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [2] | 98.60% | |||||||||
Property and transportation | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 873 | 877 | 878 | 878 | 872 | 870 | 882 | ||||
Total IBNR Plus Expected Development on Reported Claims | $ 10 | ||||||||||
Cumulative Number of Reported Claims | claim | 138,864 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 858 | 847 | 831 | 804 | 760 | 702 | 438 | ||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [2] | 98.30% | |||||||||
Property and transportation | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 808 | 815 | 820 | 817 | 828 | 844 | |||||
Total IBNR Plus Expected Development on Reported Claims | $ 15 | ||||||||||
Cumulative Number of Reported Claims | claim | 132,971 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 783 | 770 | 744 | 693 | 632 | 329 | |||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [2] | 96.90% | |||||||||
Property and transportation | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 777 | 777 | 779 | 784 | 818 | ||||||
Total IBNR Plus Expected Development on Reported Claims | $ 23 | ||||||||||
Cumulative Number of Reported Claims | claim | 134,618 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 736 | 707 | 667 | 582 | 359 | ||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [2] | 94.70% | |||||||||
Property and transportation | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 706 | 714 | 716 | 746 | |||||||
Total IBNR Plus Expected Development on Reported Claims | $ 46 | ||||||||||
Cumulative Number of Reported Claims | claim | 120,884 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 618 | 577 | 521 | 294 | |||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [2] | 87.50% | |||||||||
Property and transportation | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 843 | 847 | 889 | ||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 80 | ||||||||||
Cumulative Number of Reported Claims | claim | 140,067 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 696 | 640 | 379 | ||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [2] | 82.60% | |||||||||
Property and transportation | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 902 | 932 | |||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 119 | ||||||||||
Cumulative Number of Reported Claims | claim | 128,428 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 676 | 396 | |||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [2] | 74.90% | |||||||||
Property and transportation | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 1,111 | ||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 288 | ||||||||||
Cumulative Number of Reported Claims | claim | 138,508 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 527 | ||||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [2] | 47.40% | |||||||||
Property and transportation | Excludes short-duration insurance contracts detail for accident years not separately presented | |||||||||||
Claims Development [Line Items] | |||||||||||
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) | $ 1,152 | ||||||||||
Specialty casualty | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | 10,325 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | 6,706 | ||||||||||
Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) | 437 | ||||||||||
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) | 4,056 | ||||||||||
Specialty casualty | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | 846 | 855 | 866 | 868 | 870 | 880 | 867 | 888 | 887 | 871 | |
Total IBNR Plus Expected Development on Reported Claims | $ 28 | ||||||||||
Cumulative Number of Reported Claims | claim | 56,716 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 798 | 783 | 771 | 757 | 736 | 700 | 645 | 560 | 412 | 191 | |
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [3] | 94.30% | |||||||||
Specialty casualty | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 810 | 817 | 826 | 828 | 834 | 848 | 839 | 849 | 852 | ||
Total IBNR Plus Expected Development on Reported Claims | $ 37 | ||||||||||
Cumulative Number of Reported Claims | claim | 54,755 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 745 | 731 | 714 | 694 | 662 | 612 | 522 | 383 | 174 | ||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [3] | 92.00% | |||||||||
Specialty casualty | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 842 | 849 | 877 | 883 | 885 | 885 | 892 | 901 | |||
Total IBNR Plus Expected Development on Reported Claims | $ 53 | ||||||||||
Cumulative Number of Reported Claims | claim | 54,682 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 761 | 745 | 723 | 684 | 621 | 516 | 385 | 173 | |||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [3] | 90.40% | |||||||||
Specialty casualty | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 916 | 926 | 945 | 940 | 945 | 949 | 968 | ||||
Total IBNR Plus Expected Development on Reported Claims | $ 77 | ||||||||||
Cumulative Number of Reported Claims | claim | 54,929 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 797 | 766 | 729 | 666 | 554 | 396 | 182 | ||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [3] | 87.00% | |||||||||
Specialty casualty | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 967 | 982 | 1,006 | 1,008 | 1,008 | 1,035 | |||||
Total IBNR Plus Expected Development on Reported Claims | $ 98 | ||||||||||
Cumulative Number of Reported Claims | claim | 56,445 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 801 | 755 | 680 | 574 | 412 | 190 | |||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [3] | 82.80% | |||||||||
Specialty casualty | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 1,024 | 1,042 | 1,041 | 1,043 | 1,081 | ||||||
Total IBNR Plus Expected Development on Reported Claims | $ 126 | ||||||||||
Cumulative Number of Reported Claims | claim | 57,427 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 792 | 702 | 577 | 411 | 178 | ||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [3] | 77.30% | |||||||||
Specialty casualty | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 1,101 | 1,116 | 1,122 | 1,131 | |||||||
Total IBNR Plus Expected Development on Reported Claims | $ 236 | ||||||||||
Cumulative Number of Reported Claims | claim | 56,000 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 713 | 584 | 418 | 186 | |||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [3] | 64.80% | |||||||||
Specialty casualty | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 1,204 | 1,221 | 1,211 | ||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 372 | ||||||||||
Cumulative Number of Reported Claims | claim | 56,073 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 612 | 422 | 200 | ||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [3] | 50.80% | |||||||||
Specialty casualty | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 1,307 | 1,277 | |||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 548 | ||||||||||
Cumulative Number of Reported Claims | claim | 57,081 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 475 | 210 | |||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [3] | 36.30% | |||||||||
Specialty casualty | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 1,308 | ||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 773 | ||||||||||
Cumulative Number of Reported Claims | claim | 51,198 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 212 | ||||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [3] | 16.20% | |||||||||
Specialty casualty | Excludes short-duration insurance contracts detail for accident years not separately presented | |||||||||||
Claims Development [Line Items] | |||||||||||
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) | $ 3,619 | ||||||||||
Specialty financial | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | 1,604 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | 1,382 | ||||||||||
Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) | (1) | ||||||||||
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) | 221 | ||||||||||
Specialty financial | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | 126 | 126 | 127 | 130 | 133 | 135 | 132 | 132 | 145 | 138 | |
Total IBNR Plus Expected Development on Reported Claims | $ 1 | ||||||||||
Cumulative Number of Reported Claims | claim | 21,925 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 126 | 126 | 126 | 128 | 130 | 132 | 122 | 104 | 93 | 61 | |
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [4] | 100.00% | |||||||||
Specialty financial | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 137 | 139 | 143 | 144 | 147 | 153 | 155 | 157 | 138 | ||
Total IBNR Plus Expected Development on Reported Claims | $ 0 | ||||||||||
Cumulative Number of Reported Claims | claim | 16,369 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 132 | 132 | 131 | 131 | 130 | 123 | 115 | 111 | 58 | ||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [4] | 96.40% | |||||||||
Specialty financial | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 127 | 132 | 135 | 137 | 139 | 151 | 163 | 163 | |||
Total IBNR Plus Expected Development on Reported Claims | $ 1 | ||||||||||
Cumulative Number of Reported Claims | claim | 21,076 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 126 | 128 | 126 | 121 | 117 | 109 | 104 | 71 | |||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [4] | 99.20% | |||||||||
Specialty financial | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 122 | 126 | 127 | 131 | 137 | 145 | 140 | ||||
Total IBNR Plus Expected Development on Reported Claims | $ 4 | ||||||||||
Cumulative Number of Reported Claims | claim | 28,460 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 118 | 117 | 117 | 113 | 107 | 100 | 70 | ||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [4] | 96.70% | |||||||||
Specialty financial | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 142 | 147 | 153 | 156 | 157 | 146 | |||||
Total IBNR Plus Expected Development on Reported Claims | $ 5 | ||||||||||
Cumulative Number of Reported Claims | claim | 29,436 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 139 | 137 | 128 | 125 | 109 | 62 | |||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [4] | 97.90% | |||||||||
Specialty financial | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 145 | 153 | 158 | 160 | 156 | ||||||
Total IBNR Plus Expected Development on Reported Claims | $ 10 | ||||||||||
Cumulative Number of Reported Claims | claim | 37,562 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 132 | 133 | 129 | 110 | 72 | ||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [4] | 91.00% | |||||||||
Specialty financial | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 182 | 187 | 184 | 179 | |||||||
Total IBNR Plus Expected Development on Reported Claims | $ 18 | ||||||||||
Cumulative Number of Reported Claims | claim | 45,054 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 161 | 158 | 141 | 88 | |||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [4] | 88.50% | |||||||||
Specialty financial | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 212 | 215 | 212 | ||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 27 | ||||||||||
Cumulative Number of Reported Claims | claim | 48,421 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 186 | 169 | 120 | ||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [4] | 87.70% | |||||||||
Specialty financial | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 217 | 212 | |||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 30 | ||||||||||
Cumulative Number of Reported Claims | claim | 46,198 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 163 | 112 | |||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [4] | 75.10% | |||||||||
Specialty financial | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 194 | ||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 77 | ||||||||||
Cumulative Number of Reported Claims | claim | 35,369 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 99 | ||||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [4] | 51.00% | |||||||||
Specialty financial | Excludes short-duration insurance contracts detail for accident years not separately presented | |||||||||||
Claims Development [Line Items] | |||||||||||
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) | $ 222 | ||||||||||
Other specialty | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | 651 | ||||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | 380 | ||||||||||
Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE) | 42 | ||||||||||
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) | 313 | ||||||||||
Other specialty | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | 39 | 40 | 40 | 40 | 40 | 40 | 39 | 40 | 39 | 36 | |
Total IBNR Plus Expected Development on Reported Claims | $ 1 | ||||||||||
Cumulative Number of Reported Claims | claim | [5] | 0 | |||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 37 | 37 | 36 | 35 | 33 | 27 | 24 | 21 | 14 | $ 8 | |
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [6] | 94.90% | |||||||||
Other specialty | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 42 | 43 | 44 | 44 | 43 | 43 | 42 | 43 | 39 | ||
Total IBNR Plus Expected Development on Reported Claims | $ 1 | ||||||||||
Cumulative Number of Reported Claims | claim | [5] | 0 | |||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 39 | 38 | 37 | 36 | 34 | 28 | 25 | 20 | $ 12 | ||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [6] | 92.90% | |||||||||
Other specialty | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 36 | 39 | 39 | 41 | 40 | 39 | 40 | 42 | |||
Total IBNR Plus Expected Development on Reported Claims | $ 2 | ||||||||||
Cumulative Number of Reported Claims | claim | [5] | 0 | |||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 32 | 30 | 30 | 28 | 25 | 21 | 17 | $ 8 | |||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [6] | 88.90% | |||||||||
Other specialty | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 58 | 53 | 50 | 47 | 46 | 47 | 46 | ||||
Total IBNR Plus Expected Development on Reported Claims | $ 3 | ||||||||||
Cumulative Number of Reported Claims | claim | [5] | 0 | |||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 51 | 44 | 37 | 34 | 22 | 16 | $ 7 | ||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [6] | 87.90% | |||||||||
Other specialty | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 61 | 60 | 59 | 59 | 57 | 58 | |||||
Total IBNR Plus Expected Development on Reported Claims | $ 6 | ||||||||||
Cumulative Number of Reported Claims | claim | [5] | 0 | |||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 50 | 43 | 36 | 30 | 21 | $ 13 | |||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [6] | 82.00% | |||||||||
Other specialty | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 76 | 66 | 63 | 60 | 59 | ||||||
Total IBNR Plus Expected Development on Reported Claims | $ 3 | ||||||||||
Cumulative Number of Reported Claims | claim | [5] | 0 | |||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 62 | 50 | 31 | 26 | $ 10 | ||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [6] | 81.60% | |||||||||
Other specialty | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 71 | 65 | 61 | 61 | |||||||
Total IBNR Plus Expected Development on Reported Claims | $ 15 | ||||||||||
Cumulative Number of Reported Claims | claim | [5] | 0 | |||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 47 | 31 | 19 | $ 9 | |||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [6] | 66.20% | |||||||||
Other specialty | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 70 | 65 | 63 | ||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 23 | ||||||||||
Cumulative Number of Reported Claims | claim | [5] | 0 | |||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 30 | 19 | $ 10 | ||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [6] | 42.90% | |||||||||
Other specialty | Accident Year 2018 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 90 | 86 | |||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 53 | ||||||||||
Cumulative Number of Reported Claims | claim | [5] | 0 | |||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 23 | $ 12 | |||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [6] | 25.60% | |||||||||
Other specialty | Accident Year 2019 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated LAE, Net of Reinsurance | $ 108 | ||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 87 | ||||||||||
Cumulative Number of Reported Claims | claim | [5] | 0 | |||||||||
Cumulative Paid Claims and Allocated LAE, Net of Reinsurance | $ 9 | ||||||||||
Cumulative Percentage Paid of Incurred Claims and Allocated LAE, Net of Reinsurance | [6] | 8.30% | |||||||||
Other specialty | Excludes short-duration insurance contracts detail for accident years not separately presented | |||||||||||
Claims Development [Line Items] | |||||||||||
Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE) | $ 271 | ||||||||||
[1] | Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). | ||||||||||
[2] | Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). | ||||||||||
[3] | Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). | ||||||||||
[4] | Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). | ||||||||||
[5] | The amounts shown in Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty property and casualty insurance sub-segments. Accordingly, the liability for incurred claims and allocated LAE represents additional reserves held on claims counted in the tables provided for the other sub-segments (above). | ||||||||||
[6] | Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019 ). |
Insurance - Short-duration in_2
Insurance - Short-duration insurance contracts, historical claims duration (Details) - Property and casualty insurance | Dec. 31, 2019 |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Line Items] | |
Year 1 | 32.60% |
Year 2 | 25.70% |
Year 3 | 12.10% |
Year 4 | 8.90% |
Year 5 | 5.60% |
Year 6 | 3.10% |
Year 7 | 2.10% |
Year 8 | 0.80% |
Year 9 | 0.90% |
Year 10 | 1.00% |
Year 1, Cumulative | 32.60% |
Year 2, Cumulative | 58.30% |
Year 3, Cumulative | 70.40% |
Year 4, Cumulative | 79.30% |
Year 5, Cumulative | 84.90% |
Year 6, Cumulative | 88.00% |
Year 7, Cumulative | 90.10% |
Year 8, Cumulative | 90.90% |
Year 9, Cumulative | 91.80% |
Year 10, Cumulative | 92.80% |
Property and transportation | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Line Items] | |
Year 1 | 47.10% |
Year 2 | 29.80% |
Year 3 | 7.70% |
Year 4 | 6.00% |
Year 5 | 3.60% |
Year 6 | 1.80% |
Year 7 | 1.50% |
Year 8 | (0.10%) |
Year 9 | 0.20% |
Year 10 | 0.20% |
Year 1, Cumulative | 47.10% |
Year 2, Cumulative | 76.90% |
Year 3, Cumulative | 84.60% |
Year 4, Cumulative | 90.60% |
Year 5, Cumulative | 94.20% |
Year 6, Cumulative | 96.00% |
Year 7, Cumulative | 97.50% |
Year 8, Cumulative | 97.40% |
Year 9, Cumulative | 97.60% |
Year 10, Cumulative | 97.80% |
Specialty casualty | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Line Items] | |
Year 1 | 18.70% |
Year 2 | 22.90% |
Year 3 | 16.40% |
Year 4 | 11.50% |
Year 5 | 7.30% |
Year 6 | 4.30% |
Year 7 | 2.70% |
Year 8 | 1.90% |
Year 9 | 1.60% |
Year 10 | 1.80% |
Year 1, Cumulative | 18.70% |
Year 2, Cumulative | 41.60% |
Year 3, Cumulative | 58.00% |
Year 4, Cumulative | 69.50% |
Year 5, Cumulative | 76.80% |
Year 6, Cumulative | 81.10% |
Year 7, Cumulative | 83.80% |
Year 8, Cumulative | 85.70% |
Year 9, Cumulative | 87.30% |
Year 10, Cumulative | 89.10% |
Specialty financial | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Line Items] | |
Year 1 | 50.50% |
Year 2 | 27.70% |
Year 3 | 7.90% |
Year 4 | 5.40% |
Year 5 | 4.20% |
Year 6 | 0.90% |
Year 7 | 0.20% |
Year 8 | (0.80%) |
Year 9 | 0.00% |
Year 10 | 0.00% |
Year 1, Cumulative | 50.50% |
Year 2, Cumulative | 78.20% |
Year 3, Cumulative | 86.10% |
Year 4, Cumulative | 91.50% |
Year 5, Cumulative | 95.70% |
Year 6, Cumulative | 96.60% |
Year 7, Cumulative | 96.80% |
Year 8, Cumulative | 96.00% |
Year 9, Cumulative | 96.00% |
Year 10, Cumulative | 96.00% |
Other specialty | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Line Items] | |
Year 1 | 16.60% |
Year 2 | 16.50% |
Year 3 | 13.20% |
Year 4 | 14.90% |
Year 5 | 10.50% |
Year 6 | 9.80% |
Year 7 | 4.90% |
Year 8 | 3.50% |
Year 9 | 2.50% |
Year 10 | 0.00% |
Year 1, Cumulative | 16.60% |
Year 2, Cumulative | 33.10% |
Year 3, Cumulative | 46.30% |
Year 4, Cumulative | 61.20% |
Year 5, Cumulative | 71.70% |
Year 6, Cumulative | 81.50% |
Year 7, Cumulative | 86.40% |
Year 8, Cumulative | 89.90% |
Year 9, Cumulative | 92.40% |
Year 10, Cumulative | 92.40% |
Insurance - Net earnings and ca
Insurance - Net earnings and capital and surplus on a statutory basis for the insurance subsidiaries (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property and casualty companies | |||
Statutory information | |||
Net Earnings | $ 584 | $ 546 | $ 484 |
Capital and Surplus | 3,342 | 2,867 | |
Life (annuity) insurance companies | |||
Statutory information | |||
Net Earnings | 34 | 802 | $ 286 |
Capital and Surplus | $ 2,868 | $ 2,701 |
Insurance - Reinsurance informa
Insurance - Reinsurance information table including assumed, ceded, and recoveries (Details) - Property and casualty insurance - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effects of Reinsurance [Line Items] | |||
Direct premiums written | $ 7,044 | $ 6,626 | $ 6,310 |
Reinsurance assumed | 255 | 214 | 192 |
Reinsurance ceded | (1,957) | (1,817) | (1,751) |
Net written premiums | 5,342 | 5,023 | 4,751 |
Direct premiums earned | 6,848 | 6,472 | 6,112 |
Reinsurance assumed | 226 | 204 | 157 |
Reinsurance ceded | (1,889) | (1,811) | (1,690) |
Net earned premiums | 5,185 | 4,865 | 4,579 |
Reinsurance recoveries | $ 1,404 | $ 1,249 | $ 1,379 |
Insurance - Liabilities for exc
Insurance - Liabilities for excess benefits expected to be paid on future deaths and annuitizations, guaranteed withdrawal benefits and accrued persistency and premium bonuses (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Insurance [Abstract] | ||
Expected death and annuitization | $ 232 | $ 229 |
Guaranteed withdrawal benefits | 625 | 472 |
Accrued persistency and premium bonuses | $ 1 | $ 1 |
Additional Information - Narrat
Additional Information - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for reinsurance recoverables [Line Items] | |||
Commitments to fund limited partnerships | $ 897 | ||
Retirement and employee savings plan expense | 39 | $ 37 | $ 45 |
Allowance for reinsurance recoverables | |||
Allowance for reinsurance recoverables [Line Items] | |||
Aggregate allowance for losses on reinsurance recoverables | 18 | 18 | |
Net expense reduction against the allowance for losses on reinsurance recoverables | $ (2) | ||
Reinsurance recoverable write-offs | 2 | ||
Maximum | Allowance for reinsurance recoverables | |||
Allowance for reinsurance recoverables [Line Items] | |||
Net expense reduction against the allowance for losses on reinsurance recoverables | $ (1) | $ (1) |
Condensed Financial Informati_2
Condensed Financial Information of Parent Company - Condensed Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets: | |||||
Cash and cash equivalents | $ 2,314 | $ 1,515 | $ 2,338 | $ 2,107 | |
Other investments | 278 | 267 | |||
Other assets | 1,867 | 1,529 | |||
Total assets | 70,130 | 63,456 | 60,658 | ||
Liabilities and Equity: | |||||
Long-term debt | 1,473 | 1,302 | |||
Other liabilities | 2,295 | 1,774 | |||
Shareholders’ equity | 6,269 | 4,970 | |||
Total liabilities and equity | 70,130 | 63,456 | |||
AFG | |||||
Assets: | |||||
Cash and cash equivalents | 166 | 158 | $ 299 | $ 197 | |
Investment in securities | 77 | 65 | |||
Investment in subsidiaries | [1] | 7,623 | 6,155 | ||
Other investments | 2 | 2 | |||
Other assets | 143 | 68 | |||
Total assets | 8,011 | 6,448 | |||
Liabilities and Equity: | |||||
Long-term debt | 1,473 | 1,302 | |||
Other liabilities | 269 | 176 | |||
Shareholders’ equity | 6,269 | 4,970 | |||
Total liabilities and equity | $ 8,011 | $ 6,448 | |||
[1] | Investment in subsidiaries includes intercompany receivables and payables. |
Condensed Financial Informati_3
Condensed Financial Information of Parent Company - Condensed Statement of Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||||||||||
Total revenues | $ 2,130 | $ 2,123 | $ 1,960 | $ 2,024 | $ 1,690 | $ 2,008 | $ 1,833 | $ 1,619 | $ 8,237 | $ 7,150 | $ 6,865 |
Costs and Expenses: | |||||||||||
Interest charges on other borrowings | 68 | 62 | 85 | ||||||||
Other expenses | 405 | 353 | 422 | ||||||||
Total costs and expenses | 7,129 | 6,511 | 6,141 | ||||||||
Earnings before income taxes | 1,108 | 639 | 724 | ||||||||
Provision for income taxes | 239 | 122 | 247 | ||||||||
Net Earnings Attributable to Shareholders | $ 211 | $ 147 | $ 210 | $ 329 | $ (29) | $ 204 | $ 210 | $ 145 | 897 | 530 | 475 |
AFG | |||||||||||
Revenues: | |||||||||||
Dividends from subsidiaries | 417 | 261 | 681 | ||||||||
Equity in undistributed earnings of subsidiaries | 888 | 529 | 264 | ||||||||
Investment and other income | 20 | 2 | 13 | ||||||||
Total revenues | 1,325 | 792 | 958 | ||||||||
Costs and Expenses: | |||||||||||
Interest charges on intercompany borrowings | 8 | 8 | 9 | ||||||||
Interest charges on other borrowings | 68 | 62 | 85 | ||||||||
Other expenses | 113 | 70 | 142 | ||||||||
Total costs and expenses | 189 | 140 | 236 | ||||||||
Earnings before income taxes | 1,136 | 652 | 722 | ||||||||
Provision for income taxes | 239 | 122 | 247 | ||||||||
Net Earnings Attributable to Shareholders | $ 897 | $ 530 | $ 475 |
Condensed Financial Informati_4
Condensed Financial Information of Parent Company - Condensed Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Other Comprehensive Income [Abstract] | |||||||||||
Net earnings attributable to shareholders | $ 211 | $ 147 | $ 210 | $ 329 | $ (29) | $ 204 | $ 210 | $ 145 | $ 897 | $ 530 | $ 475 |
Comprehensive income (loss) attributable to shareholders | 1,712 | (14) | 771 | ||||||||
AFG | |||||||||||
Statement of Other Comprehensive Income [Abstract] | |||||||||||
Net earnings attributable to shareholders | 897 | 530 | 475 | ||||||||
Other comprehensive income (loss), net of tax | 815 | (544) | 296 | ||||||||
Comprehensive income (loss) attributable to shareholders | $ 1,712 | $ (14) | $ 771 |
Condensed Financial Informati_5
Condensed Financial Information of Parent Company - Condensed Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities: | |||||||||||
Net earnings attributable to shareholders | $ 211 | $ 147 | $ 210 | $ 329 | $ (29) | $ 204 | $ 210 | $ 145 | $ 897 | $ 530 | $ 475 |
Adjustments: | |||||||||||
Net cash provided by operating activities | 2,456 | 2,083 | 1,804 | ||||||||
Investing Activities: | |||||||||||
Payments for (proceeds from) other investing activities | (3) | 30 | 2 | ||||||||
Net cash used in investing activities | (3,065) | (5,350) | (3,292) | ||||||||
Financing Activities: | |||||||||||
Additional long-term borrowings | 315 | 0 | 712 | ||||||||
Reductions of long-term debt | (150) | 0 | (745) | ||||||||
Issuances of Common Stock | 36 | 33 | 37 | ||||||||
Repurchases of Common Stock | 0 | (6) | 0 | ||||||||
Cash dividends paid on Common Stock | (444) | (394) | (417) | ||||||||
Proceeds from (payments for) other financing activities | 0 | 0 | (4) | ||||||||
Net cash provided by (used in) financing activities | 1,408 | 2,444 | 1,719 | ||||||||
Net Change in Cash and Cash Equivalents | 799 | (823) | 231 | ||||||||
Cash and cash equivalents at beginning of year | 1,515 | 2,338 | 1,515 | 2,338 | 2,107 | ||||||
Cash and cash equivalents at end of year | 2,314 | 1,515 | 2,314 | 1,515 | 2,338 | ||||||
AFG | |||||||||||
Operating Activities: | |||||||||||
Net earnings attributable to shareholders | 897 | 530 | 475 | ||||||||
Adjustments: | |||||||||||
Equity in net earnings of subsidiaries | (1,032) | (637) | (575) | ||||||||
Dividends from subsidiaries | 408 | 238 | 580 | ||||||||
Other operating activities, net | 33 | 84 | 98 | ||||||||
Net cash provided by operating activities | 306 | 215 | 578 | ||||||||
Investing Activities: | |||||||||||
Capital contributions to subsidiaries | (60) | (11) | (93) | ||||||||
Returns of capital from subsidiaries | 4 | 23 | 30 | ||||||||
Purchases of investments, property and equipment | (3) | (5) | (2) | ||||||||
Proceeds from maturities and redemptions of investments | 3 | 3 | 2 | ||||||||
Net cash used in investing activities | (56) | 10 | (63) | ||||||||
Financing Activities: | |||||||||||
Additional long-term borrowings | 315 | 0 | 712 | ||||||||
Reductions of long-term debt | (150) | 0 | (745) | ||||||||
Issuances of Common Stock | 37 | 34 | 37 | ||||||||
Repurchases of Common Stock | 0 | (6) | 0 | ||||||||
Cash dividends paid on Common Stock | (444) | (394) | (417) | ||||||||
Net cash provided by (used in) financing activities | (242) | (366) | (413) | ||||||||
Net Change in Cash and Cash Equivalents | 8 | (141) | 102 | ||||||||
Cash and cash equivalents at beginning of year | $ 158 | $ 299 | 158 | 299 | 197 | ||||||
Cash and cash equivalents at end of year | $ 166 | $ 158 | $ 166 | $ 158 | $ 299 |
Supplementary Insurance Infor_2
Supplementary Insurance Information - Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | $ 1,037 | $ 1,682 | $ 1,216 |
Reserves for future policy benefits, claims and unpaid losses and LAE | 51,250 | 46,992 | 43,652 |
Unearned premiums | 2,830 | 2,595 | 2,410 |
Net earned premiums | 5,207 | 4,889 | 4,601 |
Net investment income | 2,303 | 2,094 | 1,831 |
Benefits, claims, losses and settlement expenses | 4,458 | 4,041 | 3,873 |
Amortization of deferred policy acquisition costs | 923 | 860 | 690 |
Other operating expenses | 1,748 | 1,610 | 1,578 |
Net written premiums (excluding life) | 5,345 | 5,026 | 4,754 |
Property and casualty insurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | 322 | 299 | 270 |
Reserves for future policy benefits, claims and unpaid losses and LAE | 10,232 | 9,741 | 9,678 |
Unearned premiums | 2,830 | 2,595 | 2,410 |
Net earned premiums | 5,185 | 4,865 | 4,579 |
Net investment income | 472 | 438 | 362 |
Benefits, claims, losses and settlement expenses | 3,271 | 3,003 | 2,955 |
Amortization of deferred policy acquisition costs | 721 | 644 | 556 |
Other operating expenses | 1,027 | 957 | 867 |
Net written premiums (excluding life) | 5,342 | 5,023 | 4,751 |
Annuity | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | 696 | 1,360 | 920 |
Reserves for future policy benefits, claims and unpaid losses and LAE | 40,406 | 36,616 | 33,316 |
Net investment income | 1,792 | 1,638 | 1,458 |
Benefits, claims, losses and settlement expenses | 1,151 | 998 | 892 |
Amortization of deferred policy acquisition costs | 198 | 212 | 130 |
Other operating expenses | 189 | 174 | 159 |
Other | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | 19 | 23 | 26 |
Reserves for future policy benefits, claims and unpaid losses and LAE | 612 | 635 | 658 |
Net earned premiums | 22 | 24 | 22 |
Net investment income | 39 | 18 | 11 |
Benefits, claims, losses and settlement expenses | 36 | 40 | 26 |
Amortization of deferred policy acquisition costs | 4 | 4 | 4 |
Other operating expenses | 532 | 479 | 552 |
Net written premiums (excluding life) | $ 3 | $ 3 | $ 3 |
Uncategorized Items - afg-20191
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 4,000,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 225,000,000 |