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Acquisitions and Sale of Businesses (Tables) | 9 Months Ended
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Sep. 30, 2015
Business Combinations [Abstract] |
Schedule of estimated fair values of assets acquired and liabilities assumed | The allocation of the purchase price is shown in the table below (in millions):
Total purchase price |  |  | $ | 259 |
Tangible assets acquired: |  |  |
Cash and cash equivalents | $ | 1,078 |  |  |
Fixed maturities, available for sale | 92 |  |  |
Recoverables from reinsurers | 116 |  |  |
Agents’ balances and premiums receivable | 41 |  |  |
Deferred tax assets, net (a) | 67 |  |  |
Other receivables | 21 |  |  |
Other assets | 11 |  |  |
Total tangible assets acquired |  |  | 1,426 |
Liabilities acquired: |  |  |
Unpaid losses and loss adjustment expenses | 1,142 |  |  |
Unearned premiums | 3 |  |  |
Payable to reinsurers | 3 |  |  |
Other liabilities | 66 |  |  |
Total liabilities acquired |  |  | 1,214 |
Net tangible assets acquired, at fair value |  |  | 212 |
Excess purchase price over net tangible assets acquired |  |  | $ | 47 |
Allocation of excess purchase price: |  |  |
Intangible assets acquired (b) |  |  | $ | 47 |
Deferred tax on intangible assets acquired (a) |  |  | (16 | )
Goodwill |  |  | 16 |
|  |  | $ | 47 |
(a) | AFG’s net deferred tax assets are included in Other assets in AFG’s Consolidated Balance Sheet at September 30, 2015.
(b) | Included in Other assets in AFG’s Consolidated Balance Sheet.
Summarized financial information | The estimated impact of the pending sale of the run-off long-term care insurance business, which was recorded in AFG’s financial statements as of March 31, 2015, is shown below (in millions):
Estimated sale proceeds (*) | $ | 14 |
Assets of businesses sold: |
Cash and investments | $ | 1,397 |
Recoverables from reinsurers | 603 |
Deferred policy acquisition costs | 15 |
Other receivables | 14 |
Other assets | 7 |
Goodwill | 2 |
Total assets | 2,038 |
Liabilities of businesses sold: |
Annuity benefits accumulated | 270 |
Life, accident and health reserves | 1,537 |
Other liabilities | 27 |
Total liabilities | 1,834 |
Reclassify net unrealized gain on marketable securities | 28 |
Net assets of businesses sold | $ | 176 |
Pretax loss on subsidiaries recorded in the first quarter of 2015 | $ | (162 | )
(*) | Includes fair value of the potential additional consideration and is shown net of estimated expenses.
Revenues, costs and expenses, and earnings before income taxes for the subsidiaries to be sold were (in millions):
| Three months ended September 30, |  | Nine months ended September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Life, accident and health net earned premiums: |  |  |  |  |  |  |
Long-term care | $ | 19 |  |  | $ | 18 |  |  | $ | 56 |  |  | $ | 56 |
Life operations | 3 |  |  | 3 |  |  | 8 |  |  | 8 |
Net investment income | 19 |  |  | 18 |  |  | 56 |  |  | 57 |
Realized gains (losses) on securities and other income | (4 | ) |  | (1 | ) |  | (6 | ) |  | 1 |
Total revenues | 37 |  |  | 38 |  |  | 114 |  |  | 122 |
Annuity benefits | 2 |  |  | 2 |  |  | 6 |  |  | 6 |
Life, accident and health benefits: |  |  |  |  |  |  |
Long-term care | 21 |  |  | 27 |  |  | 67 |  |  | 84 |
Life operations | 3 |  |  | 3 |  |  | 8 |  |  | 9 |
Annuity and supplemental insurance acquisition expenses | 3 |  |  | 3 |  |  | 9 |  |  | 10 |
Other expenses | 4 |  |  | 3 |  |  | 13 |  |  | 10 |
Total costs and expenses | 33 |  |  | 38 |  |  | 103 |  |  | 119 |
Earnings before income taxes | $ | 4 |  |  | $ | — |  |  | $ | 11 |  |  | $ | 3 |

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- Definition Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=51716988&loc=SL51721533-107759 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721665-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1474-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1361-107760 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721683-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=51719941&loc=SL51724579-110230 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5C -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721675-107760 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721663-107760 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51719941&loc=d3e2941-110230 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5B -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721673-107760 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721659-107760 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5A -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721671-107760 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5D -URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721677-107760 + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4845-128472 + Details
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