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Segment Reporting | 6 Months Ended
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Jun. 30, 2022
Segment Reporting [Abstract] |
Segment Reporting Disclosure | 3. SEGMENT INFORMATION The Company reports its results of operations in three segments: Legacy Financial Guarantee Insurance, Specialty Property and Casualty Insurance and Insurance Distribution, separate from Corporate and Other, which is consistent with the manner in which the Company's chief operating decision maker ("CODM") reviews the business to assess performance and allocate resources. See Note 1. Background and Business Description for a description of each of the Company's business segments. The following tables summarize the components of the Company’s total revenues and expenses, pretax income (loss), net income (loss), net income (loss) attributable to common shareholders and total assets by reportable business segment. Information provided below for “Corporate and Other” primarily relates to the operations of AFG, which will include investment income on its investment portfolio and costs to maintain the operations of AFG, including public company reporting, capital management and business development costs for the acquisition and development of new business initiatives.
|  | Legacy Financial Guarantee Insurance |  | Specialty Property & Casualty Insurance |  | Insurance Distribution |  | Corporate & Other |  |  |  | Consolidated (2)
Three Months Ended June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Net premiums earned |  | $ | 11 |  |  | $ | 3 |  |  |  |  |  |  |  |  | $ | 14 |
Net investment income (loss) |  | (22) |  |  | — |  |  |  |  | $ | 1 |  |  |  |  | (21) |
Net gains on derivative contracts |  | 28 |  |  |  |  |  |  | 1 |  |  |  |  | 29 |
Net realized gains on extinguishment of debt |  | 57 |  |  |  |  |  |  |  |  |  |  | 57 |
Commission income |  |  |  |  |  | $ | 6 |  |  |  |  |  |  | 6 |
Other (1) |  | 1 |  |  | — |  |  | — |  |  | — |  |  |  |  | 2 |
Total revenues (2) |  | 75 |  |  | 4 |  |  | 6 |  |  | 2 |  |  |  |  | 86 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss expenses (benefit) |  | (14) |  |  | 2 |  |  |  |  |  |  |  |  | (12) |
Operating expenses (3) |  | 23 |  |  | 3 |  |  | 2 |  |  | 1 |  |  |  |  | 29 |
Depreciation expense (3) |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Intangible amortization |  | 13 |  |  |  |  | 1 |  |  |  |  |  |  | 13 |
Sub-producer commissions (3) |  |  |  |  |  | 4 |  |  |  |  |  |  | 4 |
Interest expense |  | 45 |  |  |  |  |  |  |  |  |  |  | 45 |
Total expenses (2) |  | 68 |  |  | 5 |  |  | 6 |  |  | 1 |  |  |  |  | 80 |
Pretax income (loss) |  | $ | 7 |  |  | $ | (1) |  |  | $ | — |  |  | $ | 1 |  |  |  |  | $ | 6 |
Total assets (2) |  | $ | 9,579 |  |  | $ | 229 |  |  | $ | 94 |  |  | $ | 159 |  |  |  |  | $ | 10,061 |
Six Months Ended June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Net premiums earned |  | $ | 24 |  |  | $ | 4 |  |  |  |  |  |  |  |  | $ | 28 |
Net investment income (loss) |  | (18) |  |  | 1 |  |  |  |  | $ | 1 |  |  |  |  | (16) |
Net gains on derivative contracts |  | 85 |  |  | — |  |  |  |  | 1 |  |  |  |  | 86 |
Net realized gains on extinguishment of debt |  | 57 |  |  | — |  |  |  |  |  |  |  |  | 57 |
Commission income |  |  |  |  |  | $ | 15 |  |  |  |  |  |  | 15 |
Other (1) |  | 35 |  |  | 1 |  |  | — |  |  | — |  |  |  |  | 36 |
Total revenues (2) |  | 184 |  |  | 5 |  |  | 15 |  |  | 2 |  |  |  |  | 206 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss expenses (benefit) |  | 9 |  |  | 3 |  |  |  |  |  |  |  |  | 12 |
Operating expenses (3) |  | 44 |  |  | 7 |  |  | 3 |  |  | 4 |  |  |  |  | 58 |
Depreciation expense (3) |  | 1 |  |  | — |  |  | — |  |  | — |  |  |  |  | 1 |
Intangible amortization |  | 26 |  |  |  |  | 1 |  |  |  |  |  |  | 28 |
Sub-producer commissions (3) |  |  |  |  |  | 8 |  |  |  |  |  |  | 8 |
Interest expense |  | 89 |  |  |  |  |  |  |  |  |  |  | 89 |
Total expenses (2) |  | 170 |  |  | 9 |  |  | 13 |  |  | 4 |  |  |  |  | 197 |
Pretax income (loss) |  | $ | 13 |  |  | $ | (4) |  |  | $ | 2 |  |  | $ | (3) |  |  |  |  | $ | 9 |
|  | Legacy Financial Guarantee Insurance |  | Specialty Property & Casualty Insurance |  | Insurance Distribution |  | Corporate & Other |  |  |  | Consolidated (2)
Three Months Ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Net premiums earned |  | $ | 11 |  |  | $ | — |  |  |  |  |  |  |  |  | $ | 11 |
Net investment income |  | 41 |  |  | — |  |  |  |  | $ | — |  |  |  |  | 42 |
Net gains (losses) on derivative contracts |  | (11) |  |  |  |  |  |  |  |  |  |  | (11) |
Net realized gains on extinguishment of debt |  | — |  |  | — |  |  |  |  |  |  |  |  | — |
Commission income |  |  |  |  |  | $ | 6 |  |  |  |  |  |  | 6 |
Other (1) |  | 1 |  |  | — |  |  | — |  |  | — |  |  |  |  | 1 |
Total revenues (2) |  | 42 |  |  | — |  |  | 6 |  |  | — |  |  |  |  | 49 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss expenses (benefit) |  | (26) |  |  | — |  |  |  |  |  |  |  |  | (26) |
Operating expenses (3) |  | 21 |  |  | 2 |  |  | 1 |  |  | — |  |  |  |  | 24 |
Depreciation expense (3) |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Intangible amortization |  | 13 |  |  |  |  | 1 |  |  |  |  |  |  | 14 |
Sub-producer commissions (3) |  |  |  |  |  | 4 |  |  |  |  |  |  | 4 |
Interest expense |  | 50 |  |  |  |  |  |  |  |  |  |  | 50 |
Total expenses |  | 59 |  |  | 2 |  |  | 6 |  |  | — |  |  |  |  | 66 |
Pretax income (loss) (2) |  | $ | (16) |  |  | $ | (2) |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | (18) |
Total assets (2) |  | $ | 12,532 |  |  | $ | 109 |  |  | $ | 97 |  |  | $ | 169 |  |  |  |  | $ | 12,907 |
Six Months Ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Net premiums earned |  | $ | 25 |  |  | $ | — |  |  |  |  |  |  |  |  | $ | 25 |
Net investment income |  | 90 |  |  | — |  |  |  |  | $ | — |  |  |  |  | 91 |
Net gains on derivative contracts |  | 14 |  |  | — |  |  |  |  |  |  |  |  | 14 |
Net realized gains on extinguishment of debt |  | 33 |  |  | — |  |  |  |  |  |  |  |  | 33 |
Commission income |  |  |  |  |  | $ | 13 |  |  |  |  |  |  | 13 |
Other revenues (1) |  | (2) |  |  | — |  |  | — |  |  | 4 |  |  |  |  | 2 |
Total revenues (2) |  | 160 |  |  | — |  |  | 13 |  |  | 4 |  |  |  |  | 178 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Loss and loss expenses (benefit) |  | (18) |  |  | — |  |  |  |  |  |  |  |  | (18) |
Operating expenses (3) |  | 38 |  |  | 3 |  |  | 3 |  |  | 10 |  |  |  |  | 54 |
Depreciation expense (3) |  | 1 |  |  | — |  |  | — |  |  | — |  |  |  |  | 1 |
Intangible amortization |  | 31 |  |  |  |  | 1 |  |  |  |  |  |  | 33 |
Sub-producer commissions (3) |  |  |  |  |  | 7 |  |  |  |  |  |  | 7 |
Interest expense |  | 100 |  |  |  |  |  |  |  |  |  |  | 100 |
Total expenses |  | 152 |  |  | 3 |  |  | 11 |  |  | 10 |  |  |  |  | 177 |
Pretax income (loss) (2) |  | $ | 8 |  |  | $ | (3) |  |  | $ | 2 |  |  | $ | (6) |  |  |  |  | $ | 1 |
(1)Other revenues include the following line items on the Consolidated Statements of Total Comprehensive Income: Net investment gains (losses), including impairments, income (loss) on variable interest entities and other income (expense). (2)Inter-segment revenues and inter-segment pre-tax income (loss) amounts are insignificant and are not presented separately. Total assets noted in the Corporate and Other Column is net of AFG's investment in surplus notes issued by the Legacy Financial Guarantee Segment with fair values of $61 and $116 at June 30, 2022 and 2021. (3)The Consolidated Statements of Comprehensive Income presents the sum of these items as Operating Expenses.

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