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Segments of Operations | 9 Months Ended
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Sep. 30, 2017
Segment Reporting [Abstract] |
Segments of Operations | Segments of Operations AFG manages its business as four segments: (i) Property and casualty insurance, (ii) Annuity, (iii) Run-off long-term care and life and (iv) Other, which includes holding company costs. AFG reports its property and casualty insurance business in the following Specialty sub-segments: (i) Property and transportation, which includes physical damage and liability coverage for buses, trucks and recreational vehicles, inland and ocean marine, agricultural-related products and other property coverages, (ii) Specialty casualty, which includes primarily excess and surplus, general liability, executive liability, professional liability, umbrella and excess liability, specialty coverage in targeted markets, customized programs for small to mid-sized businesses and workers’ compensation insurance, and (iii) Specialty financial, which includes risk management insurance programs for leasing and financing institutions (including collateral and lender-placed mortgage property insurance), surety and fidelity products and trade credit insurance. Premiums and underwriting profit included under Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty sub-segments and amortization of deferred gains on retroactive reinsurance transactions related to the sales of businesses in prior years. AFG’s annuity business markets traditional fixed and fixed-indexed annuities in the retail, financial institutions and education markets. AFG’s reportable segments and their components were determined based primarily upon similar economic characteristics, products and services. The following tables (in millions) show AFG’s revenues and earnings before income taxes by segment and sub-segment.
| Three months ended September 30, |  | Nine months ended September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Revenues |  |  |  |  |  |  |
Property and casualty insurance: |  |  |  |  |  |  |
Premiums earned: |  |  |  |  |  |  |
Specialty |  |  |  |  |  |  |
Property and transportation | $ | 527 |  |  | $ | 493 |  |  | $ | 1,226 |  |  | $ | 1,197 |
Specialty casualty | 568 |  |  | 497 |  |  | 1,613 |  |  | 1,496 |
Specialty financial | 142 |  |  | 145 |  |  | 435 |  |  | 416 |
Other specialty | 30 |  |  | 24 |  |  | 80 |  |  | 75 |
Total premiums earned | 1,267 |  |  | 1,159 |  |  | 3,354 |  |  | 3,184 |
Net investment income | 94 |  |  | 93 |  |  | 276 |  |  | 265 |
Other income (a) | 1 |  |  | 3 |  |  | 21 |  |  | 46 |
Total property and casualty insurance | 1,362 |  |  | 1,255 |  |  | 3,651 |  |  | 3,495 |
Annuity: |  |  |  |  |  |  |
Net investment income | 375 |  |  | 351 |  |  | 1,082 |  |  | 1,010 |
Other income | 26 |  |  | 26 |  |  | 79 |  |  | 76 |
Total annuity | 401 |  |  | 377 |  |  | 1,161 |  |  | 1,086 |
Run-off long-term care and life | 12 |  |  | 13 |  |  | 35 |  |  | 37 |
Other | 72 |  |  | 58 |  |  | 211 |  |  | 173 |
Total revenues before realized gains (losses) | 1,847 |  |  | 1,703 |  |  | 5,058 |  |  | 4,791 |
Realized gains (losses) on securities | (12 | ) |  | 2 |  |  | (1 | ) |  | (32 | )
Realized gains on subsidiaries | — |  |  | — |  |  | — |  |  | 2 |
Total revenues | $ | 1,835 |  |  | $ | 1,705 |  |  | $ | 5,057 |  |  | $ | 4,761 |
Earnings Before Income Taxes |  |  |  |  |  |  |
Property and casualty insurance: |  |  |  |  |  |  |
Underwriting: |  |  |  |  |  |  |
Specialty |  |  |  |  |  |  |
Property and transportation | $ | 6 |  |  | $ | 44 |  |  | $ | 70 |  |  | $ | 91 |
Specialty casualty | 2 |  |  | 13 |  |  | 46 |  |  | 65 |
Specialty financial | (3 | ) |  | 19 |  |  | 42 |  |  | 64 |
Other specialty | 4 |  |  | 2 |  |  | 3 |  |  | 7 |
Other lines (b) | (90 | ) |  | (36 | ) |  | (92 | ) |  | (101 | )
Total underwriting | (81 | ) |  | 42 |  |  | 69 |  |  | 126 |
Investment and other income, net (a) | 87 |  |  | 79 |  |  | 271 |  |  | 269 |
Total property and casualty insurance | 6 |  |  | 121 |  |  | 340 |  |  | 395 |
Annuity | 102 |  |  | 107 |  |  | 283 |  |  | 236 |
Run-off long-term care and life | 2 |  |  | 1 |  |  | 4 |  |  | — |
Other (c) | (69 | ) |  | (53 | ) |  | (169 | ) |  | (131 | )
Total earnings before realized gains (losses) and income taxes | 41 |  |  | 176 |  |  | 458 |  |  | 500 |
Realized gains (losses) on securities | (12 | ) |  | 2 |  |  | (1 | ) |  | (32 | )
Realized gains on subsidiaries | — |  |  | — |  |  | — |  |  | 2 |
Total earnings before income taxes | $ | 29 |  |  | $ | 178 |  |  | $ | 457 |  |  | $ | 470 |
(a) | Includes pretax income of $13 million (before noncontrolling interest) from the sale of a hotel in the first quarter of 2017 and pretax income of $32 million (before noncontrolling interest) from the sale of an apartment property in the second quarter of 2016.
(b) | Includes special charges of $89 million and $36 million in the third quarter of 2017 and 2016, respectively, to increase asbestos and environmental (“A&E”) reserves and a $65 million special charge related to the exit of certain lines of business with AFG’s Lloyd’s-based insurer, Neon, in the second quarter of 2016.
(c) | Includes holding company interest and expenses, including losses on retirement of debt of $4 million in the third quarter of 2017 and $7 million in the second quarter of 2017, and special charges of $24 million and $5 million in the third quarter of 2017 and 2016, respectively, to increase A&E reserves related to AFG’s former railroad and manufacturing operations.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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