XML 38 R25.htm IDEA: XBRL DOCUMENT
v3.4.0.3

Investments (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract] |
Available for sale fixed maturities and equity securities | Available for sale fixed maturities and equity securities at March 31, 2016 and December 31, 2015, consisted of the following (in millions):
| March 31, 2016 |  | December 31, 2015
Amortized Cost |  | Gross Unrealized |  | Net Unrealized |  | Fair Value |  | Amortized Cost |  | Gross Unrealized |  | Net Unrealized |  | Fair Value
Gains |  | Losses |  | Gains |  | Losses
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government and government agencies | $ | 333 |  |  | $ | 7 |  |  | $ | (2 | ) |  | $ | 5 |  |  | $ | 338 |  |  | $ | 305 |  |  | $ | 5 |  |  | $ | (3 | ) |  | $ | 2 |  |  | $ | 307 |
States, municipalities and political subdivisions | 6,691 |  |  | 369 |  |  | (8 | ) |  | 361 |  |  | 7,052 |  |  | 6,642 |  |  | 249 |  |  | (35 | ) |  | 214 |  |  | 6,856 |
Foreign government | 139 |  |  | 8 |  |  | — |  |  | 8 |  |  | 147 |  |  | 147 |  |  | 7 |  |  | — |  |  | 7 |  |  | 154 |
Residential MBS | 3,508 |  |  | 290 |  |  | (26 | ) |  | 264 |  |  | 3,772 |  |  | 3,236 |  |  | 308 |  |  | (15 | ) |  | 293 |  |  | 3,529 |
Commercial MBS | 2,046 |  |  | 91 |  |  | (1 | ) |  | 90 |  |  | 2,136 |  |  | 2,111 |  |  | 77 |  |  | (1 | ) |  | 76 |  |  | 2,187 |
Asset-backed securities | 5,172 |  |  | 29 |  |  | (71 | ) |  | (42 | ) |  | 5,130 |  |  | 4,961 |  |  | 25 |  |  | (52 | ) |  | (27 | ) |  | 4,934 |
Corporate and other | 14,860 |  |  | 658 |  |  | (172 | ) |  | 486 |  |  | 15,346 |  |  | 14,163 |  |  | 422 |  |  | (268 | ) |  | 154 |  |  | 14,317 |
Total fixed maturities | $ | 32,749 |  |  | $ | 1,452 |  |  | $ | (280 | ) |  | $ | 1,172 |  |  | $ | 33,921 |  |  | $ | 31,565 |  |  | $ | 1,093 |  |  | $ | (374 | ) |  | $ | 719 |  |  | $ | 32,284 |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stocks | $ | 1,041 |  |  | $ | 129 |  |  | $ | (81 | ) |  | $ | 48 |  |  | $ | 1,089 |  |  | $ | 1,051 |  |  | $ | 146 |  |  | $ | (79 | ) |  | $ | 67 |  |  | $ | 1,118 |
Perpetual preferred stocks | 434 |  |  | 22 |  |  | (9 | ) |  | 13 |  |  | 447 |  |  | 418 |  |  | 23 |  |  | (6 | ) |  | 17 |  |  | 435 |
Total equity securities | $ | 1,475 |  |  | $ | 151 |  |  | $ | (90 | ) |  | $ | 61 |  |  | $ | 1,536 |  |  | $ | 1,469 |  |  | $ | 169 |  |  | $ | (85 | ) |  | $ | 84 |  |  | $ | 1,553 |
Available for sale securities in a continuous unrealized loss position | The following tables show gross unrealized losses (dollars in millions) on fixed maturities and equity securities by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2016 and December 31, 2015.
| Less Than Twelve Months |  | Twelve Months or More
Unrealized Loss |  | Fair Value |  | Fair Value as % of Cost |  | Unrealized Loss |  | Fair Value |  | Fair Value as % of Cost
March 31, 2016 |  |  |  |  |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |
U.S. Government and government agencies | $ | — |  |  | $ | 12 |  |  | 100 | % |  | $ | (2 | ) |  | $ | 15 |  |  | 88 | %
States, municipalities and political subdivisions | (3 | ) |  | 213 |  |  | 99 | % |  | (5 | ) |  | 141 |  |  | 97 | %
Residential MBS | (14 | ) |  | 748 |  |  | 98 | % |  | (12 | ) |  | 243 |  |  | 95 | %
Commercial MBS | — |  |  | 50 |  |  | 100 | % |  | (1 | ) |  | 15 |  |  | 94 | %
Asset-backed securities | (60 | ) |  | 2,377 |  |  | 98 | % |  | (11 | ) |  | 449 |  |  | 98 | %
Corporate and other | (130 | ) |  | 2,026 |  |  | 94 | % |  | (42 | ) |  | 324 |  |  | 89 | %
Total fixed maturities | $ | (207 | ) |  | $ | 5,426 |  |  | 96 | % |  | $ | (73 | ) |  | $ | 1,187 |  |  | 94 | %
Equity securities: |  |  |  |  |  |  |  |  |  |  |
Common stocks | $ | (81 | ) |  | $ | 498 |  |  | 86 | % |  | $ | — |  |  | $ | 2 |  |  | 100 | %
Perpetual preferred stocks | (5 | ) |  | 117 |  |  | 96 | % |  | (4 | ) |  | 22 |  |  | 85 | %
Total equity securities | $ | (86 | ) |  | $ | 615 |  |  | 88 | % |  | $ | (4 | ) |  | $ | 24 |  |  | 86 | %
December 31, 2015 |  |  |  |  |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |
U.S. Government and government agencies | $ | (1 | ) |  | $ | 112 |  |  | 99 | % |  | $ | (2 | ) |  | $ | 15 |  |  | 88 | %
States, municipalities and political subdivisions | (33 | ) |  | 1,419 |  |  | 98 | % |  | (2 | ) |  | 50 |  |  | 96 | %
Residential MBS | (7 | ) |  | 438 |  |  | 98 | % |  | (8 | ) |  | 201 |  |  | 96 | %
Commercial MBS | — |  |  | 95 |  |  | 100 | % |  | (1 | ) |  | 28 |  |  | 97 | %
Asset-backed securities | (42 | ) |  | 2,706 |  |  | 98 | % |  | (10 | ) |  | 455 |  |  | 98 | %
Corporate and other | (229 | ) |  | 4,661 |  |  | 95 | % |  | (39 | ) |  | 165 |  |  | 81 | %
Total fixed maturities | $ | (312 | ) |  | $ | 9,431 |  |  | 97 | % |  | $ | (62 | ) |  | $ | 914 |  |  | 94 | %
Equity securities: |  |  |  |  |  |  |  |  |  |  |
Common stocks | $ | (79 | ) |  | $ | 509 |  |  | 87 | % |  | $ | — |  |  | $ | — |  |  | — | %
Perpetual preferred stocks | (3 | ) |  | 91 |  |  | 97 | % |  | (3 | ) |  | 22 |  |  | 88 | %
Total equity securities | $ | (82 | ) |  | $ | 600 |  |  | 88 | % |  | $ | (3 | ) |  | $ | 22 |  |  | 88 | %
Roll forward of cumulative credit portion of other-than-temporary impairments on fixed maturity securities | A progression of the credit portion of other-than-temporary impairments on fixed maturity securities for which the non-credit portion of an impairment has been recognized in other comprehensive income is shown below (in millions):
| 2016 |  | 2015
Balance at January 1 | $ | 160 |  |  | $ | 170 |
Additional credit impairments on: |  |  |
Previously impaired securities | 2 |  |  | 1 |
Securities without prior impairments | — |  |  | — |
Reductions due to sales or redemptions | (2 | ) |  | (3 | )
Balance at March 31 | $ | 160 |  |  | $ | 168 |
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 March 31, 2016 (dollars in millions). Securities with sinking funds are reported at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers.
| Amortized |  | Fair Value
Cost |  | Amount |  | %
Maturity |  |  |  |  |
One year or less | $ | 999 |  |  | $ | 1,014 |  |  | 3 | %
After one year through five years | 5,348 |  |  | 5,612 |  |  | 17 | %
After five years through ten years | 11,678 |  |  | 12,025 |  |  | 35 | %
After ten years | 3,998 |  |  | 4,232 |  |  | 13 | %
| 22,023 |  |  | 22,883 |  |  | 68 | %
ABS (average life of approximately 5 years) | 5,172 |  |  | 5,130 |  |  | 15 | %
MBS (average life of approximately 4-1/2 years) | 5,554 |  |  | 5,908 |  |  | 17 | %
Total | $ | 32,749 |  |  | $ | 33,921 |  |  | 100 | %
Components of the net unrealized gain on securities, included in Accumulated Other Comprehensive Income | The following table shows (in millions) the components of the net unrealized gain on securities that is included in AOCI in AFG’s Balance Sheet.
| Pretax |  | Deferred Tax and Amounts Attributable to Noncontrolling Interests |  | Net
March 31, 2016 |  |  |  |  |
Unrealized gain on: |  |  |  |  |
Fixed maturities — annuity segment (*) | $ | 910 |  |  | $ | (319 | ) |  | $ | 591 |
Fixed maturities — all other | 262 |  |  | (98 | ) |  | 164 |
Total fixed maturities | 1,172 |  |  | (417 | ) |  | 755 |
Equity securities | 61 |  |  | (21 | ) |  | 40 |
Total investments | 1,233 |  |  | (438 | ) |  | 795 |
Deferred policy acquisition costs — annuity segment | (400 | ) |  | 140 |  |  | (260 | )
Annuity benefits accumulated | (125 | ) |  | 44 |  |  | (81 | )
Life, accident and health reserves | (1 | ) |  | — |  |  | (1 | )
Unearned revenue | 20 |  |  | (7 | ) |  | 13 |
Total net unrealized gain on marketable securities | $ | 727 |  |  | $ | (261 | ) |  | $ | 466 |
December 31, 2015 |  |  |  |  |
Unrealized gain on: |  |  |  |  |
Fixed maturities — annuity segment (*) | $ | 523 |  |  | $ | (183 | ) |  | $ | 340 |
Fixed maturities — all other | 196 |  |  | (72 | ) |  | 124 |
Total fixed maturities | 719 |  |  | (255 | ) |  | 464 |
Equity securities | 84 |  |  | (30 | ) |  | 54 |
Total investments | 803 |  |  | (285 | ) |  | 518 |
Deferred policy acquisition costs — annuity segment | (233 | ) |  | 82 |  |  | (151 | )
Annuity benefits accumulated | (64 | ) |  | 22 |  |  | (42 | )
Unearned revenue | 11 |  |  | (4 | ) |  | 7 |
Total net unrealized gain on marketable securities | $ | 517 |  |  | $ | (185 | ) |  | $ | 332 |
(*) | Unrealized gains on fixed maturity investments supporting AFG’s annuity benefits accumulated.
Net investment income earned and investment expenses incurred | The following table shows (in millions) investment income earned and investment expenses incurred.
| Three months ended March 31,
| 2016 |  | 2015
Investment income: |  |  |
Fixed maturities | $ | 367 |  |  | $ | 352 |
Equity securities | 19 |  |  | 17 |
Equity in earnings of partnerships and similar investments | 11 |  |  | 3 |
Other | 19 |  |  | 21 |
Gross investment income | 416 |  |  | 393 |
Investment expenses | (5 | ) |  | (5 | )
Net investment income | $ | 411 |  |  | $ | 388 |
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments | Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments are summarized as follows (in millions):
| Three months ended March 31, 2016 |  | Three months ended March 31, 2015
| Realized gains (losses) |  |  |  | Realized gains (losses) |  |
| Before Impairments |  | Impairments |  | Total |  | Change in Unrealized |  | Before Impairments |  | Impairments |  | Total |  | Change in Unrealized
Fixed maturities | $ | 14 |  |  | $ | (16 | ) |  | $ | (2 | ) |  | $ | 453 |  |  | $ | 3 |  |  | $ | (5 | ) |  | $ | (2 | ) |  | $ | 218 |
Equity securities | 23 |  |  | (41 | ) |  | (18 | ) |  | (23 | ) |  | 21 |  |  | (2 | ) |  | 19 |  |  | 6 |
Other (*) | (3 | ) |  | 5 |  |  | 2 |  |  | (220 | ) |  | (1 | ) |  | 3 |  |  | 2 |  |  | (137 | )
Total pretax | 34 |  |  | (52 | ) |  | (18 | ) |  | 210 |  |  | 23 |  |  | (4 | ) |  | 19 |  |  | 87 |
Tax effects | (12 | ) |  | 19 |  |  | 7 |  |  | (74 | ) |  | (8 | ) |  | 1 |  |  | (7 | ) |  | (30 | )
Noncontrolling interests | — |  |  | 1 |  |  | 1 |  |  | (2 | ) |  | — |  |  | — |  |  | — |  |  | (1 | )
Net of tax noncontrolling interests | $ | 22 |  |  | $ | (32 | ) |  | $ | (10 | ) |  | $ | 134 |  |  | $ | 15 |  |  | $ | (3 | ) |  | $ | 12 |  |  | $ | 56 |
(*) | Primarily adjustments to deferred policy acquisition costs and reserves related to annuities and long-term care business.
Gross realized gains and losses on available for sale fixed maturity and equity security investments | Gross realized gains and losses (excluding impairment write-downs and mark-to-market of derivatives) on available for sale fixed maturity and equity security investment transactions included in the Statement of Cash Flows consisted of the following (in millions):
| Three months ended March 31,
2016 |  | 2015
Fixed maturities: |  |  |
Gross gains | $ | 14 |  |  | $ | 5 |
Gross losses | (1 | ) |  | — |
Equity securities: |  |  |
Gross gains | 25 |  |  | 21 |
Gross losses | — |  |  | — |

X
- Definition Tabular disclosure of realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments. + References No definition available. + Details
Name: | afg_RealizedGainsLossesAndChangesInUnrealizedAppreciationDepreciationRelatedToFixedMaturityAndEquitySecurityInvestmentsTableTextBlock
Namespace Prefix: | afg_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.9) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 225 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-04.2) -URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.8) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.7(a),(b)) -URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688 + Details
Name: | us-gaap_InvestmentIncomeTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments. + References No definition available. + Details
Name: | us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27340-111563 + Details
Name: | us-gaap_OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation of available-for-sale securities from cost basis to fair value. + References No definition available. + Details
Name: | us-gaap_ScheduleOfAvailableForSaleSecuritiesReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the proceeds from sales of available-for-sale securities and the gross realized gains and gross realized losses that have been included in earnings as a result of those sales. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563 + Details
Name: | us-gaap_ScheduleOfRealizedGainLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition For all investments in an unrealized loss position, including those for which other-than-temporary impairments have not been recognized in earnings (including investments for which a portion of an other-than-temporary impairment has been recognized in other comprehensive income), a tabular disclosure of the aggregate related fair value of investments with unrealized losses and the aggregate amount of unrealized losses (that is, the amount by which amortized cost basis exceeds fair value). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 + Details
Name: | us-gaap_ScheduleOfUnrealizedLossOnInvestmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of unrealized gains and losses on investments. + References No definition available. + Details
Name: | us-gaap_UnrealizedGainLossOnInvestmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration