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Operating Loss – U.S.

Operating Loss – United Kingdom

indefinite

Capital Loss – U.S.

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2015	Feb. 01, 2016	Jun. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	AMERICAN FINANCIAL GROUP INC
Entity Central Index Key	0001042046
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 4.9
Entity Common Stock, Shares Outstanding		86,591,708

Consolidated Balance Sheet - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Assets:
Cash and cash equivalents	$ 1,220	$ 1,343
Investments:
Fixed maturities, available for sale at fair value (amortized cost — $31,565 and $29,074)	32,284	30,734
Fixed maturities, trading at fair value	254	266
Equity securities, available for sale at fair value (cost — $1,469 and $1,283)	1,553	1,501
Equity securities, trading at fair value	166	195
Mortgage loans	1,067	1,117
Policy loans	201	228
Real estate and other investments	991	826
Total cash and investments	37,736	36,210
Recoverables from reinsurers	2,636	3,238
Prepaid reinsurance premiums	480	469
Agents’ balances and premiums receivable	937	889
Deferred policy acquisition costs	1,184	821
Assets of managed investment entities	4,047	3,108
Other receivables	820	910
Variable annuity assets (separate accounts)	608	662
Other assets	1,212	1,027
Goodwill	199	201
Total assets	49,859	47,535
Liabilities and Equity:
Unpaid losses and loss adjustment expenses	8,127	7,872
Unearned premiums	2,060	1,956
Annuity benefits accumulated	26,622	23,764
Life, accident and health reserves	705	2,175
Payable to reinsurers	591	645
Liabilities of managed investment entities	3,781	2,819
Long-term debt	1,020	1,061
Variable annuity liabilities (separate accounts)	608	662
Other liabilities	1,575	1,527
Total liabilities	45,089	42,481
Shareholders’ equity:
Common Stock, no par value — 200,000,000 shares authorized — 87,474,452 and 87,708,793 shares outstanding	87	88
Capital surplus	1,214	1,152
Retained earnings:
Appropriated — managed investment entities	0	(2)
Unappropriated	2,987	2,914
Accumulated other comprehensive income, net of tax	304	727
Total shareholders’ equity	4,592	4,879
Noncontrolling interests	178	175
Total equity	4,770	5,054
Total liabilities and equity	$ 49,859	$ 47,535

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Fixed maturities, available for sale at amortized cost	$ 31,565	$ 29,074
Equity securities, available for sale at cost	$ 1,469	$ 1,283
Common Stock, par value (USD per share)	$ 0	$ 0
Common Stock, shares authorized	200,000,000	200,000,000
Common Stock, shares outstanding	87,474,452	87,708,793

Consolidated Statement of Earnings - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Property and casualty insurance net earned premiums	$ 4,224	$ 3,878	$ 3,204
Life, accident and health net earned premiums	104	108	114
Net investment income	1,633	1,501	1,346
Realized gains (losses) on:
Securities	(19)	52	221
Subsidiaries	(161)	0	(4)
Income (loss) of managed investment entities:
Investment income	155	116	128
Loss on change in fair value of assets/liabilities	(34)	(44)	(14)
Other income	243	122	108
Total revenues	6,145	5,733	5,103
Costs and Expenses:
Property and casualty insurance: Losses and loss adjustment expenses	2,695	2,494	2,040
Property and casualty insurance: Commissions and other underwriting expenses	1,320	1,172	1,019
Annuity benefits	732	648	531
Life, accident and health benefits	131	164	160
Annuity and supplemental insurance acquisition expenses	179	193	178
Interest charges on borrowed money	74	73	71
Expenses of managed investment entities	112	82	89
Other expenses	337	281	326
Total costs and expenses	5,580	5,107	4,414
Earnings before income taxes	565	626	689
Provision for income taxes	195	220	236
Net earnings, including noncontrolling interests	370	406	453
Less: Net earnings (loss) attributable to noncontrolling interests	18	(46)	(18)
Net Earnings Attributable to Shareholders	$ 352	$ 452	$ 471
Earnings Attributable to Shareholders per Common Share:
Basic (USD per share)	$ 4.02	$ 5.07	$ 5.27
Diluted (USD per share)	$ 3.94	$ 4.97	$ 5.16
Average number of Common Shares:
Basic (shares)	87.6	89.0	89.3
Diluted (shares)	89.4	91.0	91.2
Cash dividends per Common Share (USD per share)	$ 2.03	$ 1.91	$ 1.805
Supplemental disclosure of Realized gains (losses) on securities:
Realized gains before impairments	$ 106	$ 88	$ 233
Losses on securities with impairment	(125)	(36)	(14)
Non-credit portion recognized in other comprehensive income (loss)	0	0	2
Impairment charges recognized in earnings	(125)	(36)	(12)
Total realized gains (losses) on securities	$ (19)	$ 52	$ 221

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net earnings, including noncontrolling interests	$ 370	$ 406	$ 453
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period	(406)	216	(122)
Reclassification adjustment for realized (gains) losses included in net earnings	9	(33)	(144)
Reclassification for unrealized gains of subsidiaries sold	(22)	0	0
Total net unrealized gains (losses) on securities	(419)	183	(266)
Net unrealized gains on cash flow hedges	1	0	0
Foreign currency translation adjustments	(14)	(9)	(13)
Pension and other postretirement plans adjustments	1	(4)	2
Other comprehensive income (loss), net of tax	(431)	170	(277)
Total comprehensive income (loss), net of tax	(61)	576	176
Less: Comprehensive income (loss) attributable to noncontrolling interests	10	(43)	(24)
Comprehensive income (loss) attributable to shareholders	$ (71)	$ 619	$ 200

Consolidated Statement of Changes in Equity - USD ($) $ in Millions	Total	Total	Common Shares	Common Stock and Capital Surplus	Retained Earnings Approp.	Retained Earnings Unapprop.	Accumulated Other Comprehensive Inc. (Loss)	Noncontrolling Interests
Beginning Balance, shares at Dec. 31, 2012			88,979,303
Beginning Balance at Dec. 31, 2012	$ 4,748	$ 4,578		$ 1,152	$ 75	$ 2,520	$ 831	$ 170
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	453	471				471		(18)
Other comprehensive income (loss)	(277)	(271)					(271)	(6)
Allocation of losses of managed investment entities	0	(26)			(26)			26
Dividends on Common Stock	(161)	(161)				(161)
Shares issued:
Exercise of stock options, shares			1,625,023
Exercise of stock options	53	53		53
Other benefit plans, shares			388,043
Other benefit plans	7	7		7
Dividend reinvestment plan, shares			28,147
Dividend reinvestment plan	2	2		2
Stock-based compensation expense	19	19		19
Shares acquired and retired, shares			(1,448,156)
Shares acquired and retired	(70)	(70)		(19)		(51)
Shares exchanged - benefit plans, shares			(58,974)
Shares exchanged - benefit plans	(3)	(3)		(1)		(2)
Other	(2)					0		(2)
Ending Balance, shares at Dec. 31, 2013			89,513,386
Ending Balance at Dec. 31, 2013	4,769	4,599		1,213	49	2,777	560	170
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	406	452				452		(46)
Other comprehensive income (loss)	170	167					167	3
Allocation of losses of managed investment entities	0	(51)			(51)			51
Dividends on Common Stock	(169)	(169)				(169)
Shares issued:
Exercise of stock options, shares			1,262,313
Exercise of stock options	45	45		45
Other benefit plans, shares			242,669
Other benefit plans	8	8		8
Dividend reinvestment plan, shares			27,238
Dividend reinvestment plan	2	2		2
Stock-based compensation expense	19	19		19
Shares acquired and retired, shares			(3,303,639)
Shares acquired and retired	(191)	(191)		(46)		(145)
Shares exchanged - benefit plans, shares			(33,174)
Shares exchanged - benefit plans	(2)	(2)		(1)		(1)
Other	$ (3)	0				0	0	(3)
Ending Balance, shares at Dec. 31, 2014	87,708,793		87,708,793
Ending Balance at Dec. 31, 2014	$ 5,054	4,879		1,240	(2)	2,914	727	175
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of accounting change for variable interest entities	2	2			2
Net earnings	370	352				352		18
Other comprehensive income (loss)	(431)	(423)					(423)	(8)
Dividends on Common Stock	$ (178)	(178)				(178)
Shares issued:
Exercise of stock options, shares	1,475,202		1,475,202
Exercise of stock options	$ 59	59		59
Other benefit plans, shares			282,811
Other benefit plans	7	7		7
Dividend reinvestment plan, shares			26,167
Dividend reinvestment plan	2	2		2
Stock-based compensation expense	21	21		21
Shares acquired and retired, shares			(1,955,186)
Shares acquired and retired	(126)	(126)		(27)		(99)
Shares exchanged - benefit plans, shares			(45,765)
Shares exchanged - benefit plans	(3)	(3)		(1)		(2)
Forfeitures of restricted stock, shares			(17,570)
Forfeitures of restricted stock	0	0		0
Other	$ (7)							(7)
Ending Balance, shares at Dec. 31, 2015	87,474,452		87,474,452
Ending Balance at Dec. 31, 2015	$ 4,770	$ 4,592		$ 1,301	$ 0	$ 2,987	$ 304	$ 178

Consolidated Statement of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Activities:
Net earnings, including noncontrolling interests	$ 370	$ 406	$ 453
Adjustments:
Depreciation and amortization	132	144	142
Annuity benefits	732	648	531
Realized (gains) losses on investing activities	100	(58)	(230)
Net (purchases) sales of trading securities	10	(109)	2
Deferred annuity and life policy acquisition costs	(224)	(198)	(222)
Change in:
Reinsurance and other receivables	(10)	(199)	176
Other assets	(13)	(87)	(149)
Insurance claims and reserves	451	587	(200)
Payable to reinsurers	(54)	134	51
Other liabilities	27	(63)	280
Managed investment entities’ assets/liabilities	(190)	2	(98)
Other operating activities, net	26	15	24
Net cash provided by operating activities	1,357	1,222	760
Investing Activities:
Purchases of fixed maturities	(7,201)	(6,846)	(6,690)
Purchases of equity securities	(570)	(471)	(461)
Purchases of mortgage loans	(213)	(450)	(274)
Purchases of real estate, property and equipment	(102)	(47)	(52)
Purchases of businesses	0	(267)	0
Proceeds from maturities and redemptions of fixed maturities	3,333	2,988	3,236
Proceeds from repayments of mortgage loans	265	116	102
Proceeds from sales of fixed maturities	321	287	275
Proceeds from sales of equity securities	364	155	434
Proceeds from sales of real estate, property and equipment	117	14	34
Proceeds from sales of businesses	7	0	0
Cash and cash equivalents of businesses acquired (sold)	(49)	1,078	(5)
Managed investment entities:
Purchases of investments	(1,530)	(1,692)	(1,426)
Proceeds from sales and redemptions of investments	855	1,417	1,904
Other investing activities, net	(174)	99	8
Net cash used in investing activities	(4,577)	(3,619)	(2,915)
Financing Activities:
Annuity receipts	4,485	3,696	4,233
Annuity surrenders, benefits and withdrawals	(2,025)	(1,773)	(1,588)
Net transfers from variable annuity assets	43	43	32
Additional long-term borrowings	145	145	0
Reductions of long-term debt	(192)	(2)	(40)
Issuances of managed investment entities’ liabilities	1,026	1,400	1,192
Retirements of managed investment entities’ liabilities	(136)	(1,094)	(1,560)
Issuances of Common Stock	61	47	54
Repurchases of Common Stock	(126)	(191)	(70)
Cash dividends paid on Common Stock	(176)	(167)	(160)
Other financing activities, net	(8)	(3)	(4)
Net cash provided by (used in) financing activities	3,097	2,101	2,089
Net Change in Cash and Cash Equivalents	(123)	(296)	(66)
Cash and cash equivalents at beginning of year	1,343	1,639	1,705
Cash and cash equivalents at end of year	$ 1,220	$ 1,343	$ 1,639

Accounting Policies	12 Months Ended
Accounting Policies	Dec. 31, 2015
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, 2015, 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. 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. Other than the fair value measurements used in recording the loss on the sale of substantially all of its long-term care business in 2015 and the acquisition of Summit Holding Southeast, Inc. and its related companies in 2014 (see Note B — “Acquisitions and Sale of Businesses”), AFG did not have any significant nonrecurring fair value measurements of nonfinancial assets and liabilities in 2015 or 2014. Investments Fixed maturity and equity securities classified as “available for sale” are reported at fair value with unrealized gains and losses included in accumulated other comprehensive income (“AOCI”) in AFG’s Balance Sheet. Fixed maturity and equity 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. In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, which, among other things, will require all equity securities currently classified as “available for sale” to be reported at fair value, with holding gains and losses recognized in net income instead of AOCI. AFG will be required to adopt this guidance effective January 1, 2018. Premiums and discounts on fixed maturity securities are amortized using the 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. Gains or losses on securities 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 MBS) and (ii) the equity-based component of certain annuity products (included in annuity benefits accumulated) and related call options (included in other investments) 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. Any hedge ineffectiveness is immediately recorded in current period 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. For derivatives that are designated and qualify as highly effective fair value hedges, changes in the fair value of the derivative, along with changes in the fair value of the hedged item attributable to the hedged risk, are recognized in current period earnings. AFG has entered into an interest rate swap that qualifies as a highly effective fair value hedge to mitigate the interest rate risk associated with fixed-rate long-term debt by economically converting certain fixed-rate debt obligations to floating-rate obligations. Since the terms of the swap match the terms of the hedged debt, changes in the fair value of the swap are offset by changes in the fair value of the hedged debt attributable to changes in interest rates. Accordingly, the net impact on AFG’s current period earnings is that the interest expense associated with the hedged debt is effectively recorded at the floating rate. 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, long-term care 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”). Both the management fees (payment of which is subordinate to other obligations of the CLOs) and the investments in the CLOs are considered variable interests. AFG has determined that it is the primary beneficiary of the 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) it has exposure to CLO losses (through its investments in the CLO debt tranches) and the right to receive benefits (through its subordinated management fees and returns on its investments), both of which could potentially be significant to the CLOs. In February 2015, the FASB issued ASU 2015-02, which amends certain consolidation accounting guidance, including the VIE guidance that applies to collateralized financing entities such as CLOs. The new guidance, which AFG intends to adopt effective January 1, 2016, will affect how fee arrangements with CLO asset managers impact the determination of the primary beneficiary of these entities. Due to the significance of AFG’s investments in the CLOs that it manages, management does not expect the new guidance to impact the consolidation of its currently outstanding CLOs. The new guidance also impacts the consolidation analysis that applies to limited partnerships and similar entities. Management does not expect this guidance to impact the accounting for AFG’s existing investments in those entities. 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. Effective January 1, 2015, AFG adopted (on a modified retrospective basis) ASU 2014-13, which addresses the diversity in practice regarding the accounting for assets and liabilities of a consolidated collateralized financing entity (such as a CLO) when an election has been made to account for that entity’s assets and liabilities at fair value. 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. Under the new guidance, AFG has elected to 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 continue to be measured by the change in the fair value of AFG’s investments in the CLOs and management fees earned. Prior to the adoption of ASU 2014-13, measuring both the CLO assets and CLO liabilities at separately determined fair values resulted in a difference between the carrying value of the CLO assets and the carrying value of the CLO liabilities that was not attributable to AFG’s ownership interest in the CLOs and CLO earnings (losses) that were not attributable to AFG’s shareholders. Accordingly, in periods prior to 2015, the difference between the fair value of the CLO assets and the fair value of the CLO liabilities was recorded as “appropriated retained earnings — managed investment entities” in AFG’s Balance Sheet and the earnings (losses) that were not attributable to AFG’s shareholders were included in net earnings (loss) attributable to noncontrolling interests in AFG’s Statement of Earnings. Under the guidance adopted in 2015, there is no longer any excess carrying value of CLO assets over the carrying value of CLO liabilities to be reported as “appropriated retained earnings — managed investment entities” in AFG’s Balance Sheet or any CLO earnings to be attributed to noncontrolling interests in AFG’s Statement of Earnings. In accordance with the guidance, the amount reported as “appropriated retained earnings — managed investment entities” at December 31, 2014 was reclassified to “liabilities of managed investment entities” on January 1, 2015 as the cumulative effect of an accounting change. While the new guidance impacted the presentation of individual CLO-related line items in AFG’s Statement of Earnings, it had no overall impact on AFG’s net earnings attributable to shareholders. At December 31, 2015, assets and liabilities of managed investment entities included $100 million in assets and $80 million in liabilities of a temporary warehousing entity that was established in connection with the formation of a new CLO that is expected to close in the second quarter of 2016. Upon closing, all warehoused assets are expected to be transferred to the new CLO and the liabilities will be repaid. 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 expense and decreases for policy charges are credited to other income. 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 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. 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. 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 For balance sheet purposes, noncontrolling interests represents 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. 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. 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. See Note K — “Shareholders’ Equity” for further information. 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: 2015 – 1.8 million, 2014 – 2.0 million and 2013 – 1.9 million. AFG’s weighted average diluted shares outstanding excludes the following anti-dilutive potential common shares related to stock compensation plans: 2015 – 1.1 million, 2014 – 1.0 million and 2013 – 1.1 million. Adjustments to net earnings attributable to shareholders in the calculation of diluted earnings per share were nominal in the 2015, 2014 and 2013 periods. 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 and property and equipment. “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.

Acquisitions and Sale of Businesses

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Acquisitions and Sale of Businesses

Acquisition of Summit Holding Southeast, Inc. In April 2014, AFG acquired Summit Holding Southeast, Inc. and its related companies (“Summit”), from Liberty Mutual Insurance for $259 million using cash on hand at the parent company. Immediately following the acquisition, AFG made a capital contribution of $140 million, bringing its total capital investment in the Summit business to $399 million. Summit is based in Lakeland, Florida and is a leading provider of specialty workers’ compensation solutions in the southeastern United States. Summit continues to operate under the Summit brand as a member of AFG’s Great American Insurance Group. Summit is included in the Specialty casualty sub-segment and generated $529 million in net earned premiums in 2015 and $410 million in net earned premiums during the nine months subsequent to AFG’s acquisition in 2014.

Expenses related to the acquisition were less than $1 million and were expensed as incurred. The purchase price was allocated to the acquired assets and liabilities of Summit based on management’s best estimate of fair value as of the acquisition date. The allocation of the purchase price is shown in the table below (in millions):



	April 1, 2014
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 Balance Sheet at December 31, 2015.


(b)	Included in Other assets in AFG’s Balance Sheet.

The intangible assets acquired include $1 million in indefinite lived intangible assets related to state insurance licenses and $46 million in finite lived intangibles, primarily related to agency relationships. The finite lived intangibles are being amortized over an average expected life of 7 years. The fair value of the acquired liability for unpaid losses and loss adjustment expenses and related recoverables from reinsurers was estimated by discounting actuarial projected future net cash flows using the U.S. Treasury yield curve (with an adjustment for the illiquidity of insurance reserves) and then adding a risk adjustment to reflect the net present value of the profit that a market participant would require in return for the assumption of the risk associated with the reserves. The fair value of Summit’s agency relationship was estimated using a multi-period excess earnings method, which is a form of the income approach. The acquisition resulted in the recognition of $16 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 Summit’s assembled workforce.

Acquisition of Renewal Rights In March 2014, AFG completed a renewal rights agreement with Selective Insurance Company of America to acquire Selective’s pooled public entity book of business for $8 million. At the acquisition date, this book of business had approximately $38 million in in-force gross written premiums. The acquired business generated $34 million of gross written premiums and $16 million of net written premiums in 2015.

Sale of Long-term Care Business On December 24, 2015, AFG completed the sale of substantially all of its run-off long-term care insurance business (which was included in the run-off long-term care and life segment) to HC2 Holdings, Inc. (“HC2”) for an initial payment of $7 million in cash and HC2 securities with a fair value of $11 million (subject to post-closing adjustments). AFG may also receive up to $13 million of additional proceeds from HC2 in the future contingent upon the release of certain statutory-basis liabilities of the legal entities sold by AFG. 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. The net sale proceeds include the fair value of the warrants to purchase two million shares of HC2 stock that AFG received in exchange for this agreement. The legal entities involved in the transaction, United Teacher Associates Insurance Company (“UTA”) and Continental General Insurance Company (“CGIC”), contain substantially all of AFG’s long-term care insurance reserves (96% as measured by net statutory reserves as of November 30, 2015), as well as smaller blocks of annuity and life insurance business. Following the sale of these subsidiaries, AFG has only a small block of long-term care insurance (1,700 policies) with approximately $34 million of reserves. AFG had ceased new sales of long-term care insurance in January 2010, but continued to service and accept renewal premiums on its outstanding policies, which are guaranteed renewable.

In addition to the $18 million in cash and securities received at closing and the $13 million of potential additional proceeds in the future from the release of statutory liabilities, AFG expects to receive $97 million in tax benefits (approximately $65 million through reduced estimated tax payments and $32 million from the carryback of the tax-basis capital loss) related to the sale in the first half of 2016. The receivables for these tax benefits are reflected in AFG’s financial statements at December 31, 2015.

Based on the status of ongoing negotiations at the end of the first quarter, management determined that the potential sale of the run-off long-term care business met the GAAP “held for sale” criteria as of March 31, 2015. Accordingly, AFG recorded a $162 million pretax loss ($105 million loss after tax) in the first quarter of 2015 to establish a liability equal to the excess of the net carrying value of the assets and liabilities to be disposed over the estimated net sale proceeds. At the closing date, the loss was adjusted to $166 million based on the actual proceeds received and the final carrying value of the net assets disposed. On the sale date, the carrying value of the assets and liabilities disposed represented approximately 4% of both AFG’s assets and liabilities and are detailed in the table below.

Under accounting guidance effective on January 1, 2015, only disposals of components of an entity that represent a strategic shift and that have a major effect on a reporting entity’s operations and financial results are reported as discontinued operations. Due to the run-off nature of the business and the immaterial expected impact on AFG’s results of operations, the sale of AFG’s long-term care insurance business has not been reported as a discontinued operation.

The impact of the sale of the run-off long-term care insurance business is shown below (in millions):



	December 24, 2015
Net sale proceeds (*)				$	13

Assets of businesses sold:
Cash and investments	$	1,334
Recoverables from reinsurers	630
Deferred policy acquisition costs	16
Other receivables	16
Other assets	(4		)
Goodwill	2
Total assets				1,994
Liabilities of businesses sold:
Annuity benefits accumulated	261
Life, accident and health reserves	1,525
Other liabilities	7
Total liabilities				1,793
Reclassify net unrealized gain on marketable securities				22
Net assets of businesses sold				179

Loss on subsidiaries, pretax				(166		)
Tax benefit				58
Loss on subsidiaries, net of tax				$	(108	)


(*)	Includes the fair value of the potential additional consideration and capital maintenance agreement and is shown net of estimated expenses.

Revenues, costs and expenses, and earnings before income taxes for the subsidiaries sold were (in millions):



	Year ended December 31,
	2015			2014			2013
Life, accident and health net earned premiums:
Long-term care	$	73		$	74		$	76
Life operations	11			11			12
Net investment income	73			75			68
Realized gains (losses) on securities and other income	(11		)	(6		)	10
Total revenues	146			154			166
Annuity benefits	8			7			9
Life, accident and health benefits:
Long-term care	91			119			113
Life operations	11			11			12
Annuity and supplemental insurance acquisition expenses	12			11			14
Other expenses	16			14			12
Total costs and expenses	138			162			160
Earnings before income taxes	$	8		$	(8	)	$	6

Other In addition to the loss on the sale of substantially all of AFG’s run-off long-term care insurance business (discussed above), AFG recorded a $5 million pretax realized gain in the third quarter of 2015 representing an adjustment to a previously recognized realized loss on a small property and casualty subsidiary sold several years ago.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

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+ Details

Segments of Operations

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

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 assets and costs, and the assets 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, 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.

Sales of property and casualty insurance outside of the United States represented 4% of AFG’s revenues in 2015 and 5% of AFG’s revenues in 2014 and 2013.

The following tables (in millions) show AFG’s assets, revenues and earnings before income taxes by segment and sub-segment.



	2015		2014		2013
Assets
Property and casualty insurance (a)	$	14,689	$	14,069	$	11,717
Annuity	29,865		27,317		24,294
Run-off long-term care and life (b)	772		2,489		2,408
Other	4,533		3,660		3,668
Total assets	$	49,859	$	47,535	$	42,087



Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	1,599		$	1,544	$	1,521
Specialty casualty	2,011			1,765		1,135
Specialty financial	517			469		469
Other specialty	97			100		79
Total premiums earned	4,224			3,878		3,204
Net investment income	319			294		263
Other income (c)	78			9		15
Total property and casualty insurance	4,621			4,181		3,482
Annuity:
Net investment income	1,224			1,136		1,034
Other income	98			97		77
Total annuity	1,322			1,233		1,111
Run-off long-term care and life (b)	188			195		195
Other	194			72		98
Total revenues before realized gains (losses)	6,325			5,681		4,886
Realized gains (losses) on securities	(19		)	52		221
Realized losses on subsidiaries	(161		)	—		(4		)
Total revenues	$	6,145		$	5,733	$	5,103


(a)	Not allocable to sub-segments.


(b)	AFG sold substantially all of its run-off long-term care insurance business in December 2015.


(c)	Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015 and $15 million from the sale of an apartment property in the fourth quarter of 2015.



	2015			2014			2013
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	48		$	21		$	12
Specialty casualty	146			136			102
Specialty financial	87			64			67
Other specialty	14			16			25
Other lines (a)	(70		)	(25		)	(61		)
Total underwriting	225			212			145
Investment and other income, net (b)	351			244			230
Total property and casualty insurance	576			456			375
Annuity (c)	331			328			323
Run-off long-term care and life (d)	14			(10		)	(10		)
Other (e)	(176		)	(200		)	(216		)
Total earnings before realized gains (losses) and income taxes	745			574			472
Realized gains (losses) on securities	(19		)	52			221
Realized losses on subsidiaries	(161		)	—			(4		)
Total earnings before income taxes	$	565		$	626		$	689


(a)	Includes special charges to increase asbestos and environmental (“A&E”) reserves of $67 million, $24 million and $54 million in 2015, 2014 and 2013, respectively.


(b)	Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015 and $15 million from the sale of an apartment property in the fourth quarter of 2015.


(c)	Includes a $5 million charge in the second quarter of 2013 to cover expected assessments from state guaranty funds related to insolvency and liquidation of an unaffiliated life insurance company.


(d)	AFG sold substantially all of its run-off long-term care insurance business in December 2015.

(e)

Primarily holding company expenses, including a $4 million loss on retirement of debt in the third quarter of 2015 and special charges to increase A&E reserves related to AFG’s former railroad and manufacturing operations ($12 million in 2015, $6 million in 2014 and $22 million in 2013) and losses of managed investment entities attributable to noncontrolling interests ($51 million in 2014 and $26 million in 2013). Following the adoption of new guidance in the first quarter of 2015, there are no longer earnings (losses) of managed investment entities that are attributable to noncontrolling interests. See Note A — “Accounting Policies — Managed Investment Entities.”

- 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.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 42
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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+ Details

Fair Value Measurements

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

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 and 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, mortgage-backed securities (“MBS”) 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 in the circumstances. AFG’s Level 3 is comprised of 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, and prior to 2015 certain liabilities of the CLOs.

Under new guidance adopted in the first quarter of 2015, discussed in Note A — “Accounting Policies — Managed Investment Entities,” AFG has elected to 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 separately measured fair values. Following the adoption of the new guidance, 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, beginning with the first quarter of 2015, 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 25 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 service regarding the methods and assumptions used in pricing, including verifying, on a test basis, the inputs used by the service to value specific securities.

On December 24, 2015, AFG completed the sale of substantially all of its run-off long-term care insurance business. As discussed in Note B — “Acquisitions and Sale of Businesses,” AFG recorded a loss in the first quarter of 2015 to write down the net carrying value of the assets and liabilities to be disposed to the estimated net sale proceeds (estimated fair value less costs to sell). The estimate of fair value used to determine that loss was derived using significant unobservable inputs (Level 3). At the closing date, approximately $11 million (excluding cash) of the net proceeds was measured at fair value. These fair value measurements are categorized in the fair value hierarchy as follows: Level 1 — $5 million; Level 2 — $2 million and Level 3 — $4 million.

Assets and liabilities measured and carried at fair value in the financial statements on a recurring basis are summarized below (in millions):



	Level 1		Level 2			Level 3		Total
December 31, 2015
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies	$	100	$	192		$	15	$	307
States, municipalities and political subdivisions	—		6,767			89		6,856
Foreign government	—		154			—		154
Residential MBS	—		3,305			224		3,529
Commercial MBS	—		2,148			39		2,187
Asset-backed securities (“ABS”)	—		4,464			470		4,934
Corporate and other	50		13,634			633		14,317
Total AFS fixed maturities	150		30,664			1,470		32,284
Trading fixed maturities	13		241			—		254
Equity securities	1,362		217			140		1,719
Assets of managed investment entities (“MIE”)	309		3,712			26		4,047
Variable annuity assets (separate accounts) (*)	—		608			—		608
Other investments — derivatives	—		241			—		241
Other assets — derivatives	—		2			—		2
Total assets accounted for at fair value	$	1,834	$	35,685		$	1,636	$	39,155
Liabilities:
Liabilities of managed investment entities	$	289	$	3,468		$	24	$	3,781
Derivatives in annuity benefits accumulated	—		—			1,369		1,369
Derivatives in long-term debt	—		(2		)	—		(2		)
Other liabilities — derivatives	—		8			—		8
Total liabilities accounted for at fair value	$	289	$	3,474		$	1,393	$	5,156

December 31, 2014
Assets:
Available for sale fixed maturities:
U.S. Government and government agencies	$	164	$	174		$	15	$	353
States, municipalities and political subdivisions	—		6,647			100		6,747
Foreign government	—		194			—		194
Residential MBS	—		4,142			300		4,442
Commercial MBS	—		2,407			44		2,451
Asset-backed securities	—		3,661			226		3,887
Corporate and other	36		12,078			546		12,660
Total AFS fixed maturities	200		29,303			1,231		30,734
Trading fixed maturities	12		254			—		266
Equity securities	1,306		297			93		1,696
Assets of managed investment entities	174		2,903			31		3,108
Variable annuity assets (separate accounts) (*)	—		662			—		662
Other investments — derivatives	—		322			—		322
Total assets accounted for at fair value	$	1,692	$	33,741		$	1,355	$	36,788
Liabilities:
Liabilities of managed investment entities	$	118	$	—		$	2,701	$	2,819
Derivatives in annuity benefits accumulated	—		—			1,160		1,160
Other liabilities — derivatives	—		13			—		13
Total liabilities accounted for at fair value	$	118	$	13		$	3,861	$	3,992

(*) 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, 2015, 2014 and 2013 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
	2015	2014	2013	2015		2014		2013		2015	2014	2013	2015		2014		2013
Perpetual preferred stocks	5	14	15	$	19	$	96	$	70	7	13	2	$	31	$	83	$	10
Common stocks	7	—	2	80		—		35		—	7	—	—		26		—
Redeemable preferred stocks	2	1	3	11		5		21		—	—	—	—		—		—

Transfers between Level 1 and Level 2 for all periods presented were a result of increases or decreases in observable trade activity.

Approximately 4% of the total assets carried at fair value on December 31, 2015, were Level 3 assets. Approximately 76% ($1.24 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. Since internally developed Level 3 asset fair values represent less than 10% of AFG’s shareholders’ equity, any justifiable changes in unobservable inputs used to determine internally developed fair values would not have a material impact on AFG’s financial position.

The only significant Level 3 assets or liabilities carried at fair value in the financial statements that were not measured using broker quotes are the derivatives embedded in AFG’s fixed-indexed annuity liabilities, which are measured using a discounted cash flow approach and had a fair value of $1.37 billion at December 31, 2015. The following table presents information about the unobservable inputs used by management in determining fair value of these embedded derivatives. See Note F — “Derivatives.”



Unobservable Input		Range
Adjustment for insurance subsidiary’s credit risk		0.30% – 2.95% over the risk free rate
Risk margin for uncertainty in cash flows		0.58% reduction in the discount rate
Surrenders		3% – 18% of indexed account value
Partial surrenders		2% – 10% of indexed account value
Annuitizations		0.75% – 1.5% of indexed account value
Deaths		1.5% – 4.0% of indexed account value
Budgeted option costs		1.75% – 3.5% of indexed account value

The range of adjustments for insurance subsidiary’s credit risk 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 annuity products with an expected range of 5% to 10% in the majority of future calendar years (3% to 18% over all periods). Increasing the budgeted option cost or risk margin for uncertainty in cash flows assumptions in the table above would increase the fair value of the fixed-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 2015, 2014 and 2013 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. 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
	Bal. at Dec. 31, 2014			Impact of accounting change (a)		Net income			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Sale of subsidiaries			Bal. at Dec. 31, 2015
AFS fixed maturities:
U.S. government agency	$	15		$	—	$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	15
State and municipal	100			—		—			(1		)	34			(1		)	2		(39		)	(6		)	89
Residential MBS	300			—		(11		)	(1		)	—			(34		)	86		(88		)	(28		)	224
Commercial MBS	44			—		(1		)	(1		)	—			(2		)	4		(1		)	(4		)	39
Asset-backed securities	226			—		1			(7		)	265			(56		)	53		(10		)	(2		)	470
Corporate and other	546			—		(5		)	(9		)	161			(90		)	41		(5		)	(6		)	633
Equity securities	93			—		(4		)	(9		)	77			—			—		(17		)	—			140
Assets of MIE	31			—		(11		)	—			6			—			—		—			—			26
Liabilities of MIE	(2,701		)	2,701		—			—			—			—			—		—			—			—
Embedded derivatives (b)	(1,160		)	—		(17		)	—			(257		)	65			—		—			—			(1,369		)


(a)	The impact of implementing new guidance adopted in 2015, as discussed above and in Note A — “Accounting Policies — Managed Investment Entities.”


(b)	Total realized/unrealized gains (losses) included in net income for the embedded derivatives reflects losses related to the unlocking of actuarial assumptions of $28 million in 2015.



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2013			Net income			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at December 31, 2014
AFS fixed maturities:
U.S. government agency	$	15		$	—		$	—		$	—		$	—		$	—	$	—		$	15
State and municipal	61			(1		)	—			30			—			10		—			100
Residential MBS	316			4			3			13			(31		)	111		(116		)	300
Commercial MBS	28			(1		)	—			—			—			17		—			44
Asset-backed securities	75			3			(2		)	99			(39		)	117		(27		)	226
Corporate and other	335			2			13			102			(73		)	172		(5		)	546
Equity securities	31			1			2			62			(9		)	22		(16		)	93
Assets of MIE	30			(3		)	—			6			(2		)	—		—			31
Liabilities of MIE (a)	(2,411		)	22			—			(817		)	505			—		—			(2,701		)
Embedded derivatives (b)	(804		)	(182		)	—			(221		)	47			—		—			(1,160		)


(a)	Total realized/unrealized gains (losses) included in net income includes gains of $50 million related to liabilities outstanding as of December 31, 2014. See Note H — “Managed Investment Entities.”


(b)	Total realized/unrealized gains (losses) included in net income for the embedded derivatives reflects gains related to the unlocking of actuarial assumptions of $58 million in 2014.



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2012			Net income			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at December 31, 2013
AFS fixed maturities:
U.S. government agency	$	20		$	(2	)	$	(3	)	$	—		$	—		$	—	$	—		$	15
State and municipal	58			(1		)	(2		)	10			—			—		(4		)	61
Residential MBS	371			5			24			6			(53		)	86		(123		)	316
Commercial MBS	22			(1		)	(1		)	—			—			8		—			28
Asset-backed securities	253			4			(3		)	12			(57		)	11		(145		)	75
Corporate and other	236			1			(14		)	113			(17		)	24		(8		)	335
Equity securities	37			(1		)	6			53			(12		)	—		(52		)	31
Assets of MIE	40			(5		)	—			8			(7		)	—		(6		)	30
Liabilities of MIE (a)	(2,745		)	(25		)	—			(728		)	1,068			—		19			(2,411		)
Embedded derivatives (b)	(465		)	(182		)	—			(192		)	35			—		—			(804		)


(a)	Total realized/unrealized gains (losses) included in net income includes gains of $7 million related to liabilities outstanding as of December 31, 2013. See Note H — “Managed Investment Entities.”


(b)	Total realized/unrealized gains (losses) included in net income for the embedded derivatives reflects gains related to the unlocking of actuarial assumptions of $2 million in 2013.

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 Value		Fair Value		Level 1		Level 2		Level 3
2015
Financial assets:
Cash and cash equivalents	$	1,220	$	1,220	$	1,220	$	—	$	—
Mortgage loans	1,067		1,074		—		—		1,074
Policy loans	201		201		—		—		201
Total financial assets not accounted for at fair value	$	2,488	$	2,495	$	1,220	$	—	$	1,275
Financial liabilities:
Annuity benefits accumulated (*)	$	26,422	$	25,488	$	—	$	—	$	25,488
Long-term debt	1,022		1,120		—		1,105		15
Total financial liabilities not accounted for at fair value	$	27,444	$	26,608	$	—	$	1,105	$	25,503

2014
Financial assets:
Cash and cash equivalents	$	1,343	$	1,343	$	1,343	$	—	$	—
Mortgage loans	1,117		1,124		—		—		1,124
Policy loans	228		228		—		—		228
Total financial assets not accounted for at fair value	$	2,688	$	2,695	$	1,343	$	—	$	1,352
Financial liabilities:
Annuity benefits accumulated (*)	$	23,561	$	23,187	$	—	$	—	$	23,187
Long-term debt	1,061		1,180		—		1,106		74
Total financial liabilities not accounted for at fair value	$	24,622	$	24,367	$	—	$	1,106	$	23,261


(*)	Excludes $200 million and $203 million of life contingent annuities in the payout phase at December 31, 2015 and 2014, respectively.

The carrying amount of cash and cash equivalents approximates fair value. Fair values for mortgage loans are estimated by discounting the future contractual cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. The fair value of policy loans is estimated to approximate carrying value; policy loans have no defined maturity dates and are inseparable from insurance contracts. The fair value of annuity benefits was estimated based on expected cash flows discounted using forward interest rates adjusted for the Company’s credit risk and includes the impact of maintenance expenses and capital costs. Fair values of long-term debt are based primarily on quoted market prices.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Investments

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Investments

Available for sale fixed maturities and equity securities at December 31 consisted of the following (in millions):



	2015									2014
	Amortized Cost		Fair Value		Gross Unrealized					Amortized Cost		Fair Value		Gross Unrealized
	Amortized Cost		Fair Value		Gains		Losses			Amortized Cost		Fair Value		Gains		Losses
Fixed maturities:
U.S. Government and government agencies	$	305	$	307	$	5	$	(3	)	$	347	$	353	$	8	$	(2	)
States, municipalities and political subdivisions	6,642		6,856		249		(35		)	6,393		6,747		364		(10		)
Foreign government	147		154		7		—			184		194		10		—
Residential MBS	3,236		3,529		308		(15		)	4,046		4,442		411		(15		)
Commercial MBS	2,111		2,187		77		(1		)	2,294		2,451		158		(1		)
Asset-backed securities	4,961		4,934		25		(52		)	3,872		3,887		37		(22		)
Corporate and other	14,163		14,317		422		(268		)	11,938		12,660		751		(29		)
Total fixed maturities	$	31,565	$	32,284	$	1,093	$	(374	)	$	29,074	$	30,734	$	1,739	$	(79	)
Common stocks	$	1,051	$	1,118	$	146	$	(79	)	$	885	$	1,087	$	227	$	(25	)
Perpetual preferred stocks	$	418	$	435	$	23	$	(6	)	$	398	$	414	$	21	$	(5	)

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, 2015 and December 31, 2014, respectively, were $205 million and $220 million. Gross unrealized gains on such securities at December 31, 2015 and December 31, 2014 were $134 million and $151 million, respectively. Gross unrealized losses on such securities at December 31, 2015 and December 31, 2014 were $6 million and $8 million, respectively. These amounts represent the non-credit other-than-temporary impairment charges recorded in AOCI adjusted for subsequent changes in fair values and nearly all relate to residential MBS.

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 December 31, 2015 and 2014.



	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
	Unrealized Loss			Fair Value		Fair Value as % of Cost		Unrealized Loss			Fair Value		Fair Value as % of Cost
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	%
Common stocks	$	(79	)	$	509	87	%	$	—		$	—	—	%
Perpetual preferred stocks	$	(3	)	$	91	97	%	$	(3	)	$	22	88	%

2014
Fixed maturities:
U.S. Government and government agencies	$	—		$	39	100	%	$	(2	)	$	15	88	%
States, municipalities and political subdivisions	(2		)	222		99	%	(8		)	408		98	%
Residential MBS	(4		)	298		99	%	(11		)	209		95	%
Commercial MBS	(1		)	38		97	%	—			11		100	%
Asset-backed securities	(11		)	1,389		99	%	(11		)	622		98	%
Corporate and other	(16		)	588		97	%	(13		)	433		97	%
Total fixed maturities	$	(34	)	$	2,574	99	%	$	(45	)	$	1,698	97	%
Common stocks	$	(25	)	$	260	91	%	$	—		$	—	—	%
Perpetual preferred stocks	$	(1	)	$	45	98	%	$	(4	)	$	55	93	%

At December 31, 2015, the gross unrealized losses on fixed maturities of $374 million relate to approximately 1,285 securities. Investment grade securities (as determined by nationally recognized rating agencies) represented approximately 77% of the gross unrealized loss and 91% 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 dividend 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 2015, AFG recorded $7 million in other-than-temporary impairment charges related to its residential MBS.

In 2015, AFG recorded approximately $31 million and $4 million in other-than-temporary impairment charges related to corporate bonds and municipal bonds, respectively.

AFG recorded $94 million in other-than-temporary impairment charges on common stocks in 2015. At December 31, 2015, the gross unrealized losses on common stocks of $79 million relate to 63 securities, none of which has been in an unrealized loss position for more than 12 months.

At December 31, 2015, the gross unrealized losses on preferred stocks of $6 million relate to 19 securities. All of the preferred stocks that have been in an unrealized loss position for 12 months or more (3 securities) have investment grade ratings.

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, 2015.

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):



	2015			2014			2013
Balance at January 1	$	170		$	194		$	192
Additional credit impairments on:
Previously impaired securities	1			—			—
Securities without prior impairments	2			—			3
Reductions due to:
Sales or redemptions	(9		)	(24		)	(1		)
Sale of subsidiaries	(4		)	—			—
Balance at December 31	$	160		$	170		$	194

The table below sets forth the scheduled maturities of available for sale fixed maturities as of December 31, 2015 (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	$	922	$	935	3	%
After one year through five years	5,208		5,417		17	%
After five years through ten years	11,007		11,054		34	%
After ten years	4,120		4,228		13	%
	21,257		21,634		67	%
ABS (average life of approximately 5 years)	4,961		4,934		15	%
MBS (average life of approximately 4 years)	5,347		5,716		18	%
Total	$	31,565	$	32,284	100	%

Certain risks are inherent in connection with 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, 2015 or 2014.

Net Unrealized Gain on Marketable Securities In addition to adjusting equity securities and 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 and Amounts Attributable to Noncontrolling Interests			Net
December 31, 2015
Unrealized gain on:
Fixed maturities — annuity segment (*)	$	523		$	(183	)	$	340
Fixed maturities — all other	196			(72		)	124
Equity securities	84			(30		)	54
Deferred policy acquisition costs — annuity segment	(233		)	82			(151		)
Annuity benefits accumulated	(64		)	22			(42		)
Unearned revenue	11			(4		)	7
	$	517		$	(185	)	$	332
December 31, 2014
Unrealized gain on:
Fixed maturities — annuity segment (*)	$	1,157		$	(405	)	$	752
Fixed maturities — all other	503			(185		)	318
Equity securities	218			(79		)	139
Deferred policy acquisition costs — annuity segment	(531		)	186			(345		)
Annuity benefits accumulated	(112		)	39			(73		)
Life, accident and health reserves	(104		)	36			(68		)
Unearned revenue	31			(11		)	20
	$	1,162		$	(419	)	$	743

(*) 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.



	2015			2014			2013
Investment income:
Fixed maturities	$	1,461		$	1,352		$	1,241
Equity securities	76			66			50
Equity in earnings of partnerships and similar investments (*)	27			18			—
Other	87			77			72
Gross investment income	1,651			1,513			1,363
Investment expenses	(18		)	(12		)	(17		)
Net investment income	$	1,633		$	1,501		$	1,346


(*)	Prior to 2014, equity in the earnings of partnerships was not material and was included in realized gains (losses) on securities.

Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments are summarized as follows (in millions):



	Fixed Maturities			Equity Securities			Mortgage Loans and Other Investments			Other (*)			Total Pretax			Tax Effects			Noncon- trolling Interests			Total
Year ended December 31, 2015
Realized before impairments	$	19		$	94		$	(2	)	$	(5	)	$	106		$	(38	)	$	(2	)	$	66
Realized — impairments	(43		)	(94		)	(3		)	15			(125		)	45			2			(78		)
Change in unrealized	(941		)	(134		)	—			430			(645		)	226			8			(411		)
Year ended December 31, 2014
Realized before impairments	$	36		$	53		$	1		$	(2	)	$	88		$	(32	)	$	(2	)	$	54
Realized — impairments	(15		)	(26		)	—			5			(36		)	13			1			(22		)
Change in unrealized	570			26			—			(314		)	282			(99		)	(3		)	180
Year ended December 31, 2013
Realized before impairments	$	36		$	196		$	2		$	(1	)	$	233		$	(82	)	$	(2	)	$	149
Realized — impairments	(5		)	(5		)	(5		)	3			(12		)	4			—			(8		)
Change in unrealized	(945		)	31			—			504			(410		)	144			6			(260		)


(*)	Primarily adjustments to deferred policy acquisition costs and reserves related to annuities and long-term care business.

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):



	2015			2014			2013
Fixed maturities:
Gross gains	$	38		$	36		$	44
Gross losses	(7		)	(2		)	(5		)
Equity securities:
Gross gains	99			53			193
Gross losses	(5		)	—			—

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

Derivatives

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

As discussed under “Derivatives” in Note A — “Accounting Policies” to the financial statements, 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, 2015				December 31, 2014
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	130	$	—	$	158	$	—
Public company warrants	Equity securities	4		—		19		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		1,369		—		1,160
Equity index call options	Other investments	241		—		322		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		7		—		13
		$	375	$	1,376	$	499	$	1,173

The MBS with embedded derivatives consist primarily of interest-only MBS with interest rates that float inversely with short-term rates. 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 must be marked to market through earnings.

AFG’s fixed-indexed annuities, which represented approximately 60% of annuity benefits accumulated at December 31, 2015, provide policyholders with a crediting rate tied, in part, to the performance of an existing stock market index. AFG attempts to mitigate the risk in the index-based component of these products through the purchase of call options on the appropriate index. AFG receives collateral from its counterparties to support its purchased call option assets. This collateral ($211 million at December 31, 2015 and $285 million at December 31, 2014) 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 change in the fair value of the call option assets 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 options are considered derivatives. Fluctuations in interest rates and the stock market, among other factors, can cause volatility in the periodic measurement of fair value of the embedded derivative that management believes can be inconsistent with the long-term economics of these products.

As discussed under “Reinsurance” in Note A to the financial statements, certain reinsurance contracts are considered to contain embedded derivatives.

The following table summarizes the gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting for 2015, 2014 and 2013 (in millions):



Derivative	Statement of Earnings Line	2015			2014			2013
MBS with embedded derivatives	Realized gains on securities	$	(16	)	$	3		$	(3	)
Public company warrants	Realized gains on securities	—			—			3
Interest rate swaptions	Realized gains on securities	—			(2		)	1
Fixed-indexed annuities (embedded derivative) (*)	Annuity benefits	(17		)	(182		)	(182		)
Equity index call options	Annuity benefits	(56		)	181			210
Reinsurance contracts (embedded derivative)	Net investment income	6			(3		)	7
		$	(83	)	$	(3	)	$	36


(*)	The change in fair value of the embedded derivative includes losses related to unlocking of actuarial assumptions of $28 million in 2015 compared to gains related to unlocking of actuarial assumptions of $58 million in 2014 and $2 million in 2013.

Derivatives Designated and Qualifying as Cash Flow Hedges In the second quarter of 2015, AFG entered into two interest rate swaps (a five-year, $195 million notional amount swap and a fifteen-year, $132 million notional amount swap) under which AFG receives fixed-rate interest payments in exchange for variable interest payments based on three-month LIBOR. In the third quarter of 2014, AFG entered into a five-year $431 million notional amount interest rate swap under which AFG receives fixed-rate interest payments in exchange for variable interest payments based on one-month LIBOR. 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 LIBOR.

The notional amounts amortize down over each swap’s respective life in anticipation of an expected decline in AFG’s portfolio of fixed maturity securities with floating interest rates based on LIBOR ($614 million and $401 million total notional amounts at December 31, 2015 and December 31, 2014, respectively). The fair value of the effective portion of the interest rate swaps in an asset position and included in other assets was $2 million at December 31, 2015 and less than $1 million at December 31, 2014. The fair value of the effective portion of interest rate swaps in a liability position and included in other liabilities was less than $1 million at December 31, 2015 and zero at December 31, 2014. The net unrealized gain or loss on cash flow hedges is included in AOCI, net of DPAC and tax. During 2015 and 2014, $6 million and $2 million was reclassified from AOCI to net investment income. There was no ineffectiveness recorded in Net Earnings during these periods.

Derivative Designated and Qualifying as a Fair Value Hedge In June 2015, AFG entered into an interest rate swap to mitigate the interest rate risk associated with its fixed-rate 9-7/8% Senior Notes due June 2019 by effectively converting the interest rate on those notes to a floating rate of three-month LIBOR plus 8.099% (8.6110% at December 31, 2015). Since the terms of the interest rate swap match the terms of the hedged debt, changes in the fair value of the interest rate swap are offset by changes in the fair value of the hedged debt attributable to changes in interest rates. The fair value of the interest rate swap (an asset of $2 million at December 31, 2015) and the offsetting adjustment to the carrying value of the 9-7/8% Senior Notes are both included in long-term debt on AFG’s Balance Sheet. Accordingly, the net impact on AFG’s current period earnings is that the interest expense associated with the hedged debt is effectively recorded at the floating rate. The net reduction in interest expense from the swap for 2015 was $2 million.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 45
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-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 815
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2015

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs

A progression of deferred policy acquisition costs is presented below (in millions):



	P&C			Annuity and Run-off Long-term Care and Life
	Deferred			Deferred			Sales															Consolidated
	Costs			Costs			Inducements			PVFP			Subtotal			Unrealized			Total			Total
Balance at December 31, 2012	$	204		$	787		$	170		$	99		$	1,056		$	(710	)	$	346		$	550
Additions	468			222			11			—			233			—			233			701
Amortization:
Periodic amortization	(460		)	(140		)	(30		)	(14		)	(184		)	—			(184		)	(644		)
Annuity unlocking	—			4			(2		)	—			2			—			2			2
Included in realized gains	—			2			—			—			2			—			2			2
Foreign currency translation	(1		)	—			—			—			—			—			—			(1		)
Change in unrealized	—			—			—			—			—			365			365			365
Balance at December 31, 2013	211			875			149			85			1,109			(345		)	764			975

Additions	497			198			8			—			206			—			206			703
Amortization:
Periodic amortization	(485		)	(130		)	(26		)	(11		)	(167		)	—			(167		)	(652		)
Annuity unlocking	—			(20		)	—			—			(20		)	—			(20		)	(20		)
Included in realized gains	—			2			1			—			3			—			3			3
Foreign currency translation	(2		)	—			—			—			—			—			—			(2		)
Change in unrealized	—			—			—			—			—			(186		)	(186		)	(186		)
Balance at December 31, 2014	221			925			132			74			1,131			(531		)	600			821

Additions	519			224			11			—			235			—			235			754
Amortization:
Periodic amortization	(511		)	(162		)	(26		)	(11		)	(199		)	—			(199		)	(710		)
Annuity unlocking	—			31			4			—			35			—			35			35
Included in realized gains	—			8			1			—			9			—			9			9
Sale of subsidiaries	—			(8		)	(3		)	(8		)	(19		)	—			(19		)	(19		)
Foreign currency translation	(3		)	—			—			—			—			—			—			(3		)
Change in unrealized	—			—			—			—			—			297			297			297
Balance at December 31, 2015	$	226		$	1,018		$	119		$	55		$	1,192		$	(234	)	$	958		$	1,184

The present value of future profits (“PVFP”) amounts in the table above are net of $220 million and $209 million of accumulated amortization at December 31, 2015 and 2014, respectively. During each of the next five years, the PVFP is expected to decrease at a rate of approximately one-sixth of the balance at the beginning of each respective year.

Managed Investment Entities

12 Months Ended

Dec. 31, 2015

Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract]

Managed Investment Entities

AFG is the investment manager and its subsidiaries have investments ranging from 15.0% to 100% of the most subordinate debt tranche of thirteen collateralized loan obligation entities or “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 2004 and 2015, 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 particular 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 its CLOs is limited to its investment in the CLOs, which had an aggregate fair value of $266 million (including $115 million invested in the most subordinate tranches) at December 31, 2015, and $289 million at December 31, 2014.

In 2015, AFG formed two new CLOs, which issued an aggregate of $869 million face amount of liabilities (including $81 million face amount purchased by subsidiaries of AFG). During 2015, AFG subsidiaries received $77 million in sale and redemption proceeds from its CLO investments. In 2014, AFG formed two new CLOs, which issued an aggregate of $917 million face amount of liabilities (including $94 million face amount purchased by subsidiaries of AFG). During 2014, AFG subsidiaries also purchased $13 million face amount of senior debt tranches of existing CLOs for $13 million and received $81 million in redemption proceeds from its CLO investments. In 2013, AFG formed two new CLOs, which issued an aggregate of $829 million face amount of liabilities (including $85 million face amount purchased by subsidiaries of AFG). During 2013, AFG subsidiaries also purchased $94 million face amount of senior debt tranches of existing CLOs for $89 million and received $142 million in redemption proceeds from its CLO investments. In 2014 and 2013, four and two AFG CLOs were substantially liquidated as permitted by the CLO indentures, respectively.

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. See Note A — “Accounting Policies — Managed Investment Entities,” for a discussion of accounting guidance adopted on January 1, 2015 that impacts the measurement of the fair value of CLO liabilities. Selected financial information related to the CLOs is shown below (in millions):



	Year ended December 31,
	2015			2014			2013
Gains (losses) on change in fair value of assets/liabilities (a):
Assets	$	(116	)	$	(66	)	$	11
Liabilities	82			22			(25		)
Management fees paid to AFG	15			25			16
CLO earnings (losses) attributable to (b):
AFG shareholders	(6		)	16			35
Noncontrolling interests	—			(51		)	(26		)


(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 $214 million and $83 million at December 31, 2015 and 2014. The aggregate unpaid principal balance of the CLOs’ debt exceeded its carrying value by $205 million and $131 million at those dates. The CLO assets include $1 million at December 31, 2015 and $2 million at December 31, 2014 in loans, for which the CLOs are not accruing interest because the loans are in default (aggregate unpaid principal balance of $10 million and $6 million at both of those dates, respectively).

Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Changes in the carrying value of goodwill during 2013, 2014 and 2015, by reporting segment, are presented in the following table (in millions):



	Property and Casualty		Annuity			Total
Balance at January 1, 2013 and January 1, 2014	$	152	$	33		$	185
Acquisition of subsidiary in 2014	16		—			16
Balance at December 31, 2014	168		33			201
Sale of subsidiaries in 2015	—		(2		)	(2		)
Balance at December 31, 2015	$	168	$	31		$	199

Goodwill increased by $16 million in the second quarter of 2014 due to the purchase of Summit and decreased by $2 million in the fourth quarter of 2015 due to the sale of UTA and CGIC as discussed in Note B — “Acquisitions and Sale of Businesses.”

Included in other assets in AFG’s Balance Sheet is $41 million at December 31, 2015 and $49 million at December 31, 2014 of amortizable intangible assets related to property and casualty insurance acquisitions, primarily the acquisition of Summit in 2014. These amounts are net of accumulated amortization of $18 million and $91 million, respectively. The decrease in accumulated amortization reflects the impact of intangibles that became fully amortized in 2015. Amortization of intangibles was $8 million in 2015, $19 million in 2014 and $14 million in 2013. Future amortization of intangibles (weighted average amortization period of 5 years) is estimated to be $8 million per year in each of 2016 through 2020 and $1 million thereafter.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Long-Term Debt

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Long-Term Debt

The carrying value of long-term debt consisted of the following at December 31 (in millions):



	2015		2014
Direct Senior Obligations of AFG:
9-7/8% Senior Notes due June 2019	$	350	$	350
6-3/8% Senior Notes due June 2042	230		230
5-3/4% Senior Notes due August 2042	125		125
7% Senior Notes due September 2050	—		132
Other	3		3
	708		840

Direct Subordinated Obligations of AFG:
6-1/4% Subordinated Debentures due September 2054	150		150
6% Subordinated Debentures due November 2055	150		—
	300		150
Subsidiaries:
Notes payable secured by real estate	—		59
National Interstate bank credit facility	12		12
	12		71
	$	1,020	$	1,061

To achieve a desired balance between fixed and variable rate debt, AFG entered into an interest rate swap in June 2015, which effectively converts its 9-7/8% Senior Notes to a floating rate of three-month LIBOR plus 8.099% (8.6110% at December 31, 2015). The fair value of the interest rate swap (an asset of $2 million at December 31, 2015) and the offsetting adjustment to the carrying value of the notes are both included in the carrying value of the 9-7/8% Senior Notes in the table above.

At December 31, 2015, scheduled principal payments on debt for the subsequent five years and thereafter were as follows: 2016 — none; 2017 — $12 million; 2018 — none; 2019 — $350 million; 2020 — none and thereafter — $658 million.

As shown below at December 31 (in millions), the majority of AFG’s long-term debt is unsecured obligations of the holding company and its subsidiaries.



	2015		2014
Senior unsecured obligations	$	720	$	852
Subordinated unsecured obligations	300		150
Obligations secured by real estate	—		59
	$	1,020	$	1,061

AFG can borrow up to $500 million under its revolving credit facility which expires in December 2016. 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, 2015 or December 31, 2014.

National Interstate can borrow up to $100 million under its unsecured credit agreement, which expires in November 2017. At December 31, 2015, there was $12 million outstanding under this agreement, bearing interest at 1.399% (six-month LIBOR plus 0.875%).

In September 2015, AFG used cash on hand to redeem the $132 million in outstanding AFG 7% Senior Notes due September 2050 at par value. In November 2015, AFG issued $150 million in 6% Subordinated Debentures due in 2055. The net proceeds of the offering will be used for general corporate purposes, which may include repurchases of AFG’s outstanding Common Stock. During 2015, subsidiaries of AFG repaid all of the outstanding notes secured by real estate.

In September 2014, AFG issued $150 million in 6-1/4% Subordinated Debentures due 2054.

In 2013, AFG subsidiaries redeemed Variable Rate Subordinated Debentures at par value and paid off a secured borrowing balance at maturity.

Cash interest payments on long-term debt were $75 million in 2015, $72 million in 2014 and $71 million in 2013. In 2015, AFG received $2 million in interest under the interest rate swap discussed above.

Shareholders' Equity

12 Months Ended

Dec. 31, 2015

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, 2015, there were 10.7 million shares of AFG Common Stock reserved for issuance under AFG’s stock incentive plans. Options are granted with 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, 2015	6,383,799		$	36.92
Granted	716,818		$	63.15
Exercised	(1,475,202	)	$	31.77
Forfeited/Cancelled	(109,325	)	$	49.34
Outstanding at December 31, 2015	5,516,090		$	41.46	5.9 years	$	169

Options exercisable at December 31, 2015	2,988,920		$	32.85	4.4 years	$	117

The total intrinsic value of options exercised during 2015, 2014 and 2013 was $52 million, $38 million and $35 million, respectively. During 2015, 2014 and 2013, AFG received $47 million, $35 million and $44 million, respectively, in cash from the exercise of stock options. The total tax benefit related to the exercises was $16 million, $12 million and $11 million(including $12 million, $9 million and $7 million credited directly to capital surplus) during those years, respectively.

AFG uses the Black-Scholes option pricing model to calculate the fair value of its option grants. The expected dividend yield is based on AFG’s current dividend rate. To determine expected volatility, AFG considers its daily historical volatility as well as implied volatility on traded options. The expected term was estimated based on historical exercise patterns and post vesting cancellations. The risk-free rate for periods associated with the expected term is based upon the U.S. Treasury yield curve in effect on the grant date.



	2015			2014			2013
Exercise price	$	63.15		$	56.47		$	44.01
Expected dividend yield	1.6		%	1.6		%	1.8		%
Expected volatility	25		%	26		%	39		%
Expected term (in years)	7.25			7.25			7.25
Risk-free rate	1.88		%	2.20		%	1.36		%

Grant date fair value	$	15.29		$	14.66		$	15.10

The restricted Common Stock that AFG has granted generally vests over a three or four year period. Data relating to grants of restricted stock is presented below:



	Shares		Average Grant Date Fair Value
Outstanding at January 1, 2015	515,450		$	43.32
Granted	171,130		$	63.15
Vested	(163,312	)	$	38.36
Forfeited	(17,570	)	$	49.28
Outstanding at December 31, 2015	505,698		$	51.43

AFG issued 54,732 shares of Common Stock (fair value of $62.55 per share) in the first quarter of 2015 and 84,036 shares (fair value of $57.16 per share) in the first quarter of 2014 under its Equity Bonus Plan.

Total compensation expense related to stock incentive plans of AFG and its subsidiaries for 2015, 2014 and 2013 was $27 million, $25 million and $36 million, respectively. Related tax benefits totaled $8 million in 2015 and 2014 and $12 million in 2013. At December 31, 2015, there was $27 million and $13 million of unrecognized compensation expense related to nonvested stock options and restricted stock awards, respectively. These amounts are expected to be recognized over a weighted average of 3.0 and 2.6 years, respectively.

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
	AOCI Beginning Balance			Pretax			Tax			Net of tax			Attributable to noncontrolling interests			Attributable to shareholders			AOCI Ending Balance
Year ended December 31, 2015
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period				$	(625	)	$	219		$	(406	)	$	9		$	(397	)
Reclassification adjustment for realized (gains) losses included in net earnings (a)				14			(5		)	9			(1		)	8
Reclassification for unrealized gains of subsidiaries sold				(34		)	12			(22		)	—			(22		)
Total net unrealized gains (losses) on securities (b)	$	743		(645		)	226			(419		)	8			(411		)	$	332
Net unrealized gains on cash flow hedges	—			1			—			1			—			1			1
Foreign currency translation adjustments	(8		)	(9		)	(5		)	(14		)	—			(14		)	(22		)
Pension and other postretirement plans adjustments	(8		)	1			—			1			—			1			(7		)
Total	$	727		$	(652	)	$	221		$	(431	)	$	8		$	(423	)	$	304

Year ended December 31, 2014
Net unrealized gains on securities:
Unrealized holding gains (losses) on securities arising during the period				$	334		$	(118	)	$	216		$	(4	)	$	212
Reclassification adjustment for realized (gains) losses included in net earnings (a)				(52		)	19			(33		)	1			(32		)
Total net unrealized gains on securities (b)	$	563		282			(99		)	183			(3		)	180			$	743
Foreign currency translation adjustments	1			(8		)	(1		)	(9		)	—			(9		)	(8		)
Pension and other postretirement plans adjustments	(4		)	(6		)	2			(4		)	—			(4		)	(8		)
Total	$	560		$	268		$	(98	)	$	170		$	(3	)	$	167		$	727

Year ended December 31, 2013
Net unrealized gains on securities:
Unrealized holding gains (losses) on securities arising during the period				$	(188	)	$	66		$	(122	)	$	4		$	(118	)
Reclassification adjustment for realized (gains) losses included in net earnings (a)				(222		)	78			(144		)	2			(142		)
Total net unrealized gains on securities (b)	$	823		(410		)	144			(266		)	6			(260		)	$	563
Foreign currency translation adjustments	14			(13		)	—			(13		)	—			(13		)	1
Pension and other postretirement plans adjustments	(6		)	3			(1		)	2			—			2			(4		)
Total	$	831		$	(420	)	$	143		$	(277	)	$	6		$	(271	)	$	560


(a)	The reclassification adjustment out of net unrealized gains on securities affected the following lines in AFG’s Statement of Earnings:



	OCI component		Affected line in the Statement of Earnings
	Pretax		Realized gains on securities
	Tax		Provision for income taxes
	Attributable to noncontrolling interests		Net earnings (loss) attributable to noncontrolling interests


(b)	Includes net unrealized gains of $51 million at December 31, 2015 compared to net unrealized gains of $58 million and $54 million at December 31, 2014 and 2013, related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

The following is a reconciliation of income taxes at the statutory rate of 35% to the provision for income taxes as shown in the Statement of Earnings (dollars in millions):



	2015					2014					2013
	Amount			% of EBT		Amount			% of EBT		Amount			% of EBT
Earnings before income taxes (“EBT”)	$	565				$	626				$	689

Income taxes at statutory rate	$	198		35	%	$	219		35	%	$	241		35	%
Effect of:
Tax exempt interest	(27		)	(5	%)	(25		)	(4	%)	(21		)	(3	%)
Losses of managed investment entities	—			—	%	18			3	%	9			1	%
Change in valuation allowance	23			4	%	7			1	%	1			—	%
Subsidiaries not in AFG’s tax return	2			1	%	1			—	%	2			—	%
Other	(1		)	—	%	—			—	%	4			1	%
Provision for income taxes as shown in the Statement of Earnings	$	195		35	%	$	220		35	%	$	236		34	%

AFG’s 2012 — 2015 tax years remain subject to examination by the IRS.

Total earnings before income taxes include losses subject to tax in foreign jurisdictions of $66 million in 2015 compared to losses of $4 million in 2014 and income of $4 million in 2013.

The total income tax provision (credit) consists of (in millions):



	2015			2014			2013
Current taxes:
Federal	$	216		$	265		$	308
State	8			8			5
Deferred taxes:
Federal	(29		)	(53		)	(77		)
Provision for income taxes	$	195		$	220		$	236

For income tax purposes, AFG and its subsidiaries had the following carryforwards available at December 31, 2015 (in millions):


(*)	£90 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):



	2015									2014
	Excluding Unrealized Gains			Impact of Unrealized Gains			Total			Excluding Unrealized Gains			Impact of Unrealized Gains			Total
Deferred tax assets:
Federal net operating loss carryforwards	$	50		$	—		$	50		$	51		$	—		$	51
Foreign underwriting losses	77			—			77			56			—			56
Capital loss carryforwards	32			—			32			—			—			—
Insurance claims and reserves	691			22			713			682			75			757
Employee benefits	115			—			115			107			—			107
Other, net	33			(4		)	29			26			(11		)	15
Total deferred tax assets before valuation allowance	998			18			1,016			922			64			986
Valuation allowance against deferred tax assets	(130		)	—			(130		)	(109		)	—			(109		)
Total deferred tax assets	868			18			886			813			64			877
Deferred tax liabilities:
Subsidiaries not in AFG’s tax return (*)	(63		)	—			(63		)	(61		)	—			(61		)
Investment securities	23			(281		)	(258		)	(6		)	(657		)	(663		)
Deferred policy acquisition costs	(418		)	82			(336		)	(364		)	186			(178		)
Total deferred tax liabilities	(458		)	(199		)	(657		)	(431		)	(471		)	(902		)
Net deferred tax asset (liability)	$	410		$	(181	)	$	229		$	382		$	(407	)	$	(25	)

(*) Related to National Interstate Corporation, a 51%-owned subsidiary.

AFG’s net deferred tax asset at December 31, 2015, is included in other assets in AFG’s Balance Sheet; its net deferred tax liability at December 31, 2014, is included in other liabilities.

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 include the net operating loss carryforward and other deferred tax assets related to the Marketform 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 $77 million against these deferred tax assets at December 31, 2015. In addition to the valuation allowance related to the Marketform Lloyd’s insurance business, the gross deferred tax asset has also been reduced by a $50 million valuation allowance related to a portion of 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.

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 July 2014, AFG finalized a settlement with the IRS related to tax years 2008 and 2009. As a result, AFG’s uncertain tax positions were effectively settled, allowing AFG to reduce its liability for previously uncertain tax positions by $19 million in the third quarter of 2014. Although AFG agreed to pay $11 million to the IRS, the majority of the reduction in this liability resulted in offsetting adjustments to AFG’s deferred tax liability and did not impact AFG’s effective tax rate. The portion of the reduction in this liability that favorably impacted the effective tax rate was approximately $4 million including interest. The reduction of the liability for previously uncertain tax positions includes $17 million related to the timing of recognition of investment income on certain debt securities and $2 million related to the deductibility of certain financing expenses.

AFG increased its liability for uncertain tax positions by $1 million in 2013, exclusive of interest, for the uncertainty as to the timing of tax return inclusion of income related to certain securities.

A progression of the liability for uncertain tax positions, excluding interest and penalties, follows (in millions):



	2015		2014			2013
Balance at January 1	$	—	$	19		$	18
Additions for tax positions of prior years	1		—			—
Reductions for tax positions of prior years	—		(8		)	—
Additions for tax positions of current year	—		—			1
Settlements	—		(11		)	—
Balance at December 31	$	1	$	—		$	19

AFG’s provision for income taxes included an expense of less than $1 million in 2015, a benefit of $1 million in 2014 and an expense of $1 million in 2013 of interest (net of federal benefit or expense). AFG’s liability for interest related to unrecognized tax benefits was less than $1 million at December 31, 2015 and $1 million at December 31, 2013 (net of federal benefit); no penalties were accrued at those dates.

Cash payments for income taxes, net of refunds, were $234 million, $347 million and $204 million for 2015, 2014 and 2013, respectively.

Contingencies	12 Months Ended
Contingencies	Dec. 31, 2015
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 a comprehensive external study of its asbestos and environmental (“A&E”) exposures in the third quarter of 2015 with the aid of specialty actuarial, engineering and consulting firms and outside counsel. The study resulted in A&E charges of $67 million for the property and casualty group and $12 million for the former railroad and manufacturing operations. AFG completed an in-depth internal review of its A&E exposures in the third quarter of 2014, which resulted in A&E charges of $24 million for the property and casualty group and $6 million for the former railroad and manufacturing operations. In the third quarter of 2013, AFG completed a comprehensive external study of its A&E exposures with the aid of specialty actuarial, engineering and consulting firms and outside counsel, which resulted in A&E charges of $54 million for the property and casualty group and $22 million for the former railroad and manufacturing operations. The property and casualty group’s liability for asbestos and environmental reserves was $426 million at December 31, 2015; related recoverables from reinsurers (net of allowances for doubtful accounts) at that date were $99 million. At December 31, 2015, American Premier and its subsidiaries had liabilities for environmental and personal injury claims and other contingencies aggregating $77 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, 2015, GAFRI had a liability of approximately $11 million for environmental costs and certain other matters associated with the sales of its former manufacturing operations. See Note B — “Acquisitions and Sale of Businesses” for a discussion of the five-year capital maintenance agreement that AFG entered into in connection with obtaining regulatory approval for the sale of substantially all of its run-off long-term care business. While management believes AFG has recorded adequate reserves for the items discussed above in this note, 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. In addition, AFG and its subsidiaries are involved in litigation from time to time, generally arising in the ordinary course of business. This litigation may include, but is not limited to, general commercial disputes, lawsuits brought by policyholders, employment matters, reinsurance collection matters and actions challenging certain business practices of insurance subsidiaries. None of these matters are expected to have a material adverse impact on AFG’s results of operations or financial condition.

Quarterly Operating Results (Unaudited)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

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, 2015 (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
2015
Revenues	$	1,294	$	1,541	$	1,684	$	1,626	$	6,145
Net earnings, including noncontrolling interests	25		149		66		130		370
Net earnings attributable to shareholders	19		141		63		129		352
Earnings attributable to shareholders per Common Share:
Basic	$	0.22	$	1.60	$	0.72	$	1.48	$	4.02
Diluted	0.21		1.57		0.71		1.45		3.94
Average number of Common Shares:
Basic	87.6		87.7		87.5		87.4		87.6
Diluted	89.4		89.5		89.3		89.2		89.4
2014
Revenues	$	1,211	$	1,392	$	1,581	$	1,549	$	5,733
Net earnings, including noncontrolling interests	107		83		91		125		406
Net earnings attributable to shareholders	103		106		116		127		452
Earnings attributable to shareholders per Common Share:
Basic	$	1.15	$	1.18	$	1.30	$	1.44	$	5.07
Diluted	1.13		1.15		1.28		1.41		4.97
Average number of Common Shares:
Basic	89.6		89.6		89.0		87.9		89.0
Diluted	91.6		91.6		90.9		89.8		91.0

Pretax realized gains on subsidiaries and securities (including other-than-temporary impairments) and favorable (adverse) prior year development of AFG’s liability for losses and loss adjustment expenses (“LAE”) were as follows (in millions):



	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			Total Year
Realized Gains (Losses) on Securities and Subsidiaries
2015	$	(143	)	$	(1	)	$	(11	)	$	(25	)	$	(180	)
2014	19			12			13			8			52

Prior Year Development Favorable (Adverse)
2015	$	7		$	10		$	(55	)	$	5		$	(33	)
2014	31			(14		)	(13		)	(10		)	(6		)

Realized losses on subsidiaries in 2015 include a $166 million realized loss (consisting of an initial loss estimate of $162 million recorded in the first quarter and a $4 million loss adjustment in the fourth quarter) related to the impact of the sale of two subsidiaries, which contained substantially all of AFG’s long-term care insurance business. See Note B — “Acquisitions and Sale of Businesses.”

Adverse prior year development for the third quarter of 2015 includes pretax special charges of $67 million to strengthen property and casualty insurance A&E reserves. Adverse prior year development for the second quarter of 2014 includes $22 million of adverse reserve development in the property and transportation sub-segment, which resulted from an increase in claim severity in the commercial auto liability business, partially offset by lower than expected claim severity in the agricultural and property and inland marine businesses. Adverse prior year development for the third quarter of 2014 includes pretax special charges of $24 million to strengthen property and casualty insurance A&E reserves. Adverse prior year development in the fourth quarter of 2014 was due primarily to adverse reserve development at Marketform and higher than expected claim severity in contractor claims and in a run-off book of casualty business.

In addition to realized gains (losses) on securities and subsidiaries, results for 2015 include pretax gains (included in other income) of $51 million from the sale of Le Pavillon Hotel in the second quarter and $15 million from the sale of an apartment property in the fourth quarter.

Results for the third quarter of 2015 and 2014 include pretax special charges of $12 million and $6 million, respectively, to strengthen reserves for A&E exposures related to AFG’s former railroad and manufacturing operations.

Insurance

12 Months Ended

Dec. 31, 2015

Insurance [Abstract]

Insurance

Cash and securities owned by U.S.-based insurance subsidiaries having a carrying value of approximately $1.00 billion at December 31, 2015, were on deposit as required by regulatory authorities. In addition, $203 million was on deposit in support of AFG’s underwriting activities at Lloyd’s. At December 31, 2015, AFG and its subsidiaries had $307 million in undrawn letters of credit (none of which was collateralized) supporting the underwriting capacity of its U.K.-based Lloyd’s insurer.

Property and Casualty Insurance Reserves The liability for losses and LAE for long-term scheduled payments under certain workers’ compensation insurance has been discounted at 4.5% at both December 31, 2015 and 2014, which represents an approximation of long-term investment yields. As a result, the total liability for losses and loss adjustment expenses at December 31, 2015 and 2014, has been reduced by $18 million and $19 million.

The following table provides an analysis of changes in the liability for losses and loss adjustment expenses, net of reinsurance (and grossed up), over the past three years (in millions):



	2015			2014			2013
Balance at beginning of period	$	5,645		$	4,288		$	4,129
Provision for losses and LAE occurring in the current year	2,662			2,488			2,055
Net increase (decrease) in the provision for claims of prior years:
Special A&E charges	67			24			54
Other	(34		)	(18		)	(69		)
Total losses and LAE incurred	2,695			2,494			2,040
Payments for losses and LAE of:
Current year	(828		)	(789		)	(739		)
Prior years	(1,575		)	(1,340		)	(1,131		)
Total payments	(2,403		)	(2,129		)	(1,870		)
Reserves of businesses acquired (*)	—			1,028			—
Foreign currency translation and other	(11		)	(36		)	(11		)
Balance at end of period	5,926			5,645			4,288
Add back reinsurance recoverables, net of allowance	2,201			2,227			2,122
Gross unpaid losses and LAE included in the balance sheet	$	8,127		$	7,872		$	6,410

(*) Reflects the acquisition of Summit in April 2014 (see Note B — “Acquisitions and Sale of Businesses”).

The net increase in the provision for claims of prior years in 2015 reflects (i) higher than expected claim severity at National Interstate and higher than anticipated claim frequency in the ocean marine business (all within the Property and transportation sub-segment), (ii) adverse reserve development at Marketform (within the Specialty casualty sub-segment), and (iii) the $67 million special charge to increase asbestos and environmental reserves. This adverse development was partially offset by (i) lower than expected claim severity in the property and inland marine business, agricultural operations and a run-off book of homebuilders business (all within the Property and transportation sub-segment), (ii) lower than anticipated claim severity in workers’ compensation business, lower than anticipated claim severity and frequency in excess liability insurance and lower than expected claim severity in directors and officers liability insurance (all within the Specialty casualty sub-segment), and (iii) lower than anticipated claim frequency and severity in the surety business and products for financial institutions and lower than expected claim severity in the fidelity business and run-off collateral value insurance (all within the Specialty financial sub-segment).

Net adverse reserve development in 2014 reflects higher than expected severity in commercial auto liability losses written in the transportation businesses (within the Property and transportation sub-segment), higher than expected claims severity in contractor claims and in a run-off book of casualty business and adverse reserve development at Marketform (all within the Specialty casualty sub-segment), and the $24 million special charge to increase asbestos and environmental reserves. This adverse reserve development was offset by (i) lower than expected claim severity in directors and officers liability insurance, lower than expected claim severity and frequency in excess liability insurance and lower than anticipated claim severity in specialty workers’ compensation business (all within the Specialty casualty sub-segment), and (ii) lower than expected claim severity in the surety and fidelity businesses and lower than expected claim frequency and severity in the foreign credit business and products for financial institutions (all within the Specialty financial sub-segment).

Net favorable reserve development in 2013 was due primarily to lower than expected severity in directors and officers liability insurance and lower than expected claim severity and frequency in the excess liability business (both within the Specialty casualty sub-segment), lower than expected frequency and severity in the foreign credit and financial institutions businesses (within the Specialty financial sub-segment) and favorable reserve development associated with AFG’s internal reinsurance program, partially offset by the $54 million special charge to increase asbestos and environmental reserves.

Closed Block of Long-Term Care Insurance AFG, as well as other companies that sell long-term care products, have accumulated relatively limited claims, lapse and mortality experience, making it difficult to predict future claims. Long-term care claims tend to be much higher in dollar amount and longer in duration than other health care products. In addition, long-term care claims are incurred much later in the life of a policy than most other health products. These factors made it difficult to appropriately price this product and were instrumental in AFG’s decisions to stop writing new policies in January 2010 and to sell substantially all of its run-off long-term care insurance business in December 2015 (see Note B —“Acquisitions and Sale of Businesses”). Following the completion of this sale, AFG’s remaining long-term care insurance reserves were $34 million at December 31, 2015, 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 $41 million investment in FHLB capital stock at December 31, 2015, is included in other investments at cost. Membership in the FHLB provides the annuity operations with a substantial 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 2015, the FHLB advanced GALIC $345 million (included in annuity benefits accumulated), increasing the total amount advanced to $785 million at December 31, 2015. Interest rates under the various funding agreements on these advances range from 0.02% to 0.49% over LIBOR (average rate of 0.58% at December 31, 2015). While these advances must be repaid between 2016 and 2020, GALIC has the option to prepay all or a portion of the advances. The advances on these agreements are collateralized by mortgage-backed securities with a fair value of $912 million (included in available for sale fixed maturity securities) at December 31, 2015. Interest credited on the funding agreements, which is included in annuity benefits, was $3 million in 2015 and $1 million in 2014 and 2013.

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
	2015		2014		2013		2015		2014
Property and casualty companies	$	408	$	318	$	332	$	2,488	$	2,286
Life insurance companies	399		349		294		1,721		1,714

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, 2015 and 2014, 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, 2015 or 2014.

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 2016 from its insurance subsidiaries without seeking regulatory clearance is $809 million. Additional amounts of dividends require regulatory approval.

AFG paid common stock dividends to shareholders totaling $178 million, $169 million and $161 million in 2015, 2014 and 2013, respectively. Currently, there are no regulatory restrictions on AFG’s retained earnings or net income that materially impact its ability to pay dividends. Based on shareholders’ equity at December 31, 2015, AFG could pay dividends in excess of $1 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. To the extent that any reinsuring companies are unable to meet obligations under agreements covering reinsurance ceded, AFG’s insurance subsidiaries would remain liable. 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.



	2015			2014			2013
Direct premiums written	$	5,713		$	5,387		$	4,744
Reinsurance assumed	119			90			61
Reinsurance ceded	(1,505		)	(1,457		)	(1,464		)
Net written premiums	$	4,327		$	4,020		$	3,341

Direct premiums earned	$	5,613		$	5,195		$	4,684
Reinsurance assumed	105			75			45
Reinsurance ceded	(1,494		)	(1,392		)	(1,525		)
Net earned premiums	$	4,224		$	3,878		$	3,204

Reinsurance recoveries	$	936		$	895		$	1,255

In March 2014, AFG’s property and casualty insurance operations entered into a reinsurance agreement to obtain additional catastrophe protection through a catastrophe bond structure with Riverfront Re Ltd. (“Riverfront”). The reinsurance agreement provides supplemental reinsurance coverage up to $95 million (fully collateralized) for catastrophe losses in excess of $119 million occurring during the period from April 1, 2014 through December 31, 2016. In connection with the reinsurance agreement, Riverfront issued notes to unrelated investors for the full $95 million of coverage provided under the reinsurance agreement. At the time of the agreement, AFG concluded that Riverfront is a variable interest entity, but that it does not have a variable interest in the entity because the variability in Riverfront’s results is expected to 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 $5 million per year.

AFG has reinsured approximately $11.19 billion of its $14.67 billion in face amount of life insurance at December 31, 2015 compared to $12.70 billion of its $16.71 billion in face amount of life insurance at December 31, 2014. Life written premiums ceded were $40 million, $41 million and $44 million for 2015, 2014 and 2013, respectively. Reinsurance recoveries on ceded life policies were $50 million, $59 million and $58 million for 2015, 2014 and 2013, 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 (“EDAR”), 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):



	2015		2014
Expected death and annuitization	$	214	$	213
Guaranteed withdrawal benefits	203		151
Accrued persistency and premium bonuses	11		14

Variable Annuities At December 31, 2015, the aggregate guaranteed minimum death benefit value (assuming every variable annuity policyholder died on that date) on AFG’s variable annuity policies exceeded the fair value of the underlying variable annuities by $27 million, compared to $23 million at December 31, 2014. Death benefits paid in excess of the variable annuity account balances were less than $1 million in each of the last three years.

Additional Information	12 Months Ended
Additional Information	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Additional Information	Additional Information AFG’s aggregate allowance for uncollectible reinsurance recoverables was $22 million and $25 million at December 31, 2015 and 2014, respectively. AFG reviews the allowance quarterly and adjusts it as necessary to reflect changes in estimates of uncollectible balances. In 2015, AFG recorded a net expense reduction of $3 million against the allowance. In 2014 and 2013, AFG recorded charges of $4 million and $1 million against the allowance, respectively (included in losses and loss adjustment expenses). In 2014, the allowance was reduced by reinsurance recoverable write-offs of $6 million. Operating Leases Total rental expense for various leases of office space and equipment was $70 million in 2015, $65 million in 2014 and $57 million in 2013. Future minimum rentals, related principally to office space, required under operating leases having initial or remaining noncancelable lease terms in excess of one year at December 31, 2015, were as follows: 2016 – $64 million; 2017 – $60 million; 2018 – $51 million; 2019 – $43 million; 2020 – $36 million; and $148 million thereafter. 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, 2015, AFG and its subsidiaries had commitments to fund credit facilities and contribute capital to limited partnerships and limited liability corporations of approximately $410 million. Benefit Plans AFG expensed approximately $34 million in 2015, $30 million in 2014 and $32 million in 2013 for its retirement and employee savings plans.

Condensed Financial Information of Parent Company

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only 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,
	2015		2014
Assets:
Cash and cash equivalents	$	189	$	292
Investment in securities	63		58
Investment in subsidiaries (a)	5,439		5,638
Other investments	2		2
Other assets	106		103
Total assets	$	5,799	$	6,093

Liabilities and Equity:
Long-term debt	$	1,008	$	990
Other liabilities	199		224
Shareholders’ equity	4,592		4,879
Total liabilities and equity	$	5,799	$	6,093

Condensed Statement of Earnings



	Year ended December 31,
	2015		2014		2013
Revenues:
Dividends from subsidiaries	$	311	$	480	$	606
Equity in undistributed earnings of subsidiaries	386		332		260
Investment and other income	4		5		8
Total revenues	701		817		874

Costs and Expenses:
Interest charges on intercompany borrowings	9		10		10
Interest charges on other borrowings	72		69		67
Other expenses	73		66		90
Total costs and expenses	154		145		167

Earnings before income taxes	547		672		707
Provision for income taxes	195		220		236
Net Earnings Attributable to Shareholders	$	352	$	452	$	471

Condensed Statement of Comprehensive Income



Net earnings attributable to shareholders	$	352		$	452	$	471
Other comprehensive income (loss), net of tax	(423		)	167		(271		)
Total comprehensive income, net of tax	$	(71	)	$	619	$	200

________________________


(a)	Investment in subsidiaries includes intercompany receivables and payables.

Condensed Statement of Cash Flows



	Year ended December 31,
	2015			2014			2013
Operating Activities:
Net earnings attributable to shareholders	$	352		$	452		$	471
Adjustments:
Equity in net earnings of subsidiaries	(451		)	(545		)	(579		)
Dividends from subsidiaries	280			451			543
Other operating activities, net	(19		)	14			(7		)
Net cash provided by operating activities	162			372			428

Investing Activities:
Capital contributions to subsidiaries	(27		)	(431		)	(38		)
Returns of capital from subsidiaries	1			—			36
Purchases of investments, property and equipment	(10		)	(1		)	(2		)
Proceeds from sales of investments, property and equipment	3			—			—
Net cash used in investing activities	(33		)	(432		)	(4		)

Financing Activities:
Additional long-term borrowings	145			145			—
Reductions of long-term debt	(132		)	—			—
Issuances of Common Stock	57			42			50
Repurchases of Common Stock	(126		)	(191		)	(70		)
Cash dividends paid on Common Stock	(176		)	(167		)	(160		)
Net cash used in financing activities	(232		)	(171		)	(180		)

Net Change in Cash and Cash Equivalents	(103		)	(231		)	244
Cash and cash equivalents at beginning of year	292			523			279
Cash and cash equivalents at end of year	$	189		$	292		$	523

Supplementary Insurance Information

12 Months Ended

Dec. 31, 2015

Supplementary Insurance Information [Abstract]

Supplementary Insurance Information

AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES

SCHEDULE III — SUPPLEMENTARY INSURANCE INFORMATION

THREE YEARS ENDED DECEMBER 31, 2015

(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)
2015
Property and casualty insurance	$	226	$	8,127	$	2,060	$	4,224	$	319		$	2,695	$	511	$	839	$	4,327
Annuity	934		26,622		—		—		1,224			732		136		123		—
Run-off long-term care and life	24		705		—		104		80			131		6		37		73
Other	—		—		—		—		10			—		—		370		—
Total	$	1,184	$	35,454	$	2,060	$	4,328	$	1,633		$	3,558	$	653	$	1,369	$	4,400

2014
Property and casualty insurance	$	221	$	7,872	$	1,956	$	3,878	$	294		$	2,494	$	485	$	746	$	4,020
Annuity	564		23,764		—		—		1,136			648		155		102		—
Run-off long-term care and life	36		2,175		—		108		82			164		6		35		74
Other	—		—		—		—		(11		)	—		—		272		—
Total	$	821	$	33,811	$	1,956	$	3,986	$	1,501		$	3,306	$	646	$	1,155	$	4,094

2013
Property and casualty insurance	$	211	$	6,410	$	1,757	$	3,204	$	263		$	2,040	$	460	$	607	$	3,341
Annuity	723		20,944		—		—		1,034			531		144		113		—
Run-off long-term care and life	41		2,008		—		114		76			160		6		39		76
Other	—		—		—		—		(27		)	—		—		314		—
Total	$	975	$	29,362	$	1,757	$	3,318	$	1,346		$	2,731	$	610	$	1,073	$	3,417

Accounting Policies (Policies)	12 Months Ended
Accounting Policies (Policies)	Dec. 31, 2015
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, 2015, 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.
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. Other than the fair value measurements used in recording the loss on the sale of substantially all of its long-term care business in 2015 and the acquisition of Summit Holding Southeast, Inc. and its related companies in 2014 (see Note B — “Acquisitions and Sale of Businesses”), AFG did not have any significant nonrecurring fair value measurements of nonfinancial assets and liabilities in 2015 or 2014.
Investments	Investments Fixed maturity and equity securities classified as “available for sale” are reported at fair value with unrealized gains and losses included in accumulated other comprehensive income (“AOCI”) in AFG’s Balance Sheet. Fixed maturity and equity 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. In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01, which, among other things, will require all equity securities currently classified as “available for sale” to be reported at fair value, with holding gains and losses recognized in net income instead of AOCI. AFG will be required to adopt this guidance effective January 1, 2018. Premiums and discounts on fixed maturity securities are amortized using the 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. Gains or losses on securities 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 MBS) and (ii) the equity-based component of certain annuity products (included in annuity benefits accumulated) and related call options (included in other investments) 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. Any hedge ineffectiveness is immediately recorded in current period 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. For derivatives that are designated and qualify as highly effective fair value hedges, changes in the fair value of the derivative, along with changes in the fair value of the hedged item attributable to the hedged risk, are recognized in current period earnings. AFG has entered into an interest rate swap that qualifies as a highly effective fair value hedge to mitigate the interest rate risk associated with fixed-rate long-term debt by economically converting certain fixed-rate debt obligations to floating-rate obligations. Since the terms of the swap match the terms of the hedged debt, changes in the fair value of the swap are offset by changes in the fair value of the hedged debt attributable to changes in interest rates. Accordingly, the net impact on AFG’s current period earnings is that the interest expense associated with the hedged debt is effectively recorded at the floating rate.
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, long-term care 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”). Both the management fees (payment of which is subordinate to other obligations of the CLOs) and the investments in the CLOs are considered variable interests. AFG has determined that it is the primary beneficiary of the 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) it has exposure to CLO losses (through its investments in the CLO debt tranches) and the right to receive benefits (through its subordinated management fees and returns on its investments), both of which could potentially be significant to the CLOs. In February 2015, the FASB issued ASU 2015-02, which amends certain consolidation accounting guidance, including the VIE guidance that applies to collateralized financing entities such as CLOs. The new guidance, which AFG intends to adopt effective January 1, 2016, will affect how fee arrangements with CLO asset managers impact the determination of the primary beneficiary of these entities. Due to the significance of AFG’s investments in the CLOs that it manages, management does not expect the new guidance to impact the consolidation of its currently outstanding CLOs. The new guidance also impacts the consolidation analysis that applies to limited partnerships and similar entities. Management does not expect this guidance to impact the accounting for AFG’s existing investments in those entities. 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. Effective January 1, 2015, AFG adopted (on a modified retrospective basis) ASU 2014-13, which addresses the diversity in practice regarding the accounting for assets and liabilities of a consolidated collateralized financing entity (such as a CLO) when an election has been made to account for that entity’s assets and liabilities at fair value. 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. Under the new guidance, AFG has elected to 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 continue to be measured by the change in the fair value of AFG’s investments in the CLOs and management fees earned. Prior to the adoption of ASU 2014-13, measuring both the CLO assets and CLO liabilities at separately determined fair values resulted in a difference between the carrying value of the CLO assets and the carrying value of the CLO liabilities that was not attributable to AFG’s ownership interest in the CLOs and CLO earnings (losses) that were not attributable to AFG’s shareholders. Accordingly, in periods prior to 2015, the difference between the fair value of the CLO assets and the fair value of the CLO liabilities was recorded as “appropriated retained earnings — managed investment entities” in AFG’s Balance Sheet and the earnings (losses) that were not attributable to AFG’s shareholders were included in net earnings (loss) attributable to noncontrolling interests in AFG’s Statement of Earnings. Under the guidance adopted in 2015, there is no longer any excess carrying value of CLO assets over the carrying value of CLO liabilities to be reported as “appropriated retained earnings — managed investment entities” in AFG’s Balance Sheet or any CLO earnings to be attributed to noncontrolling interests in AFG’s Statement of Earnings. In accordance with the guidance, the amount reported as “appropriated retained earnings — managed investment entities” at December 31, 2014 was reclassified to “liabilities of managed investment entities” on January 1, 2015 as the cumulative effect of an accounting change. While the new guidance impacted the presentation of individual CLO-related line items in AFG’s Statement of Earnings, it had no overall impact on AFG’s net earnings attributable to shareholders. At December 31, 2015, assets and liabilities of managed investment entities included $100 million in assets and $80 million in liabilities of a temporary warehousing entity that was established in connection with the formation of a new CLO that is expected to close in the second quarter of 2016. Upon closing, all warehoused assets are expected to be transferred to the new CLO and the liabilities will be repaid.
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 expense and decreases for policy charges are credited to other income. 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 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.
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.
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 represents 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.
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.
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. See Note K — “Shareholders’ Equity” for further information.
Benefit Plans	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	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: 2015 – 1.8 million, 2014 – 2.0 million and 2013 – 1.9 million. AFG’s weighted average diluted shares outstanding excludes the following anti-dilutive potential common shares related to stock compensation plans: 2015 – 1.1 million, 2014 – 1.0 million and 2013 – 1.1 million. Adjustments to net earnings attributable to shareholders in the calculation of diluted earnings per share were nominal in the 2015, 2014 and 2013 periods.
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 and property and equipment. “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.

Acquisitions and Sale of Businesses (Tables)

12 Months Ended

Dec. 31, 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):



	April 1, 2014
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 Balance Sheet at December 31, 2015.


(b)	Included in Other assets in AFG’s Balance Sheet.

Summarized financial information

The impact of the sale of the run-off long-term care insurance business is shown below (in millions):



	December 24, 2015
Net sale proceeds (*)				$	13

Assets of businesses sold:
Cash and investments	$	1,334
Recoverables from reinsurers	630
Deferred policy acquisition costs	16
Other receivables	16
Other assets	(4		)
Goodwill	2
Total assets				1,994
Liabilities of businesses sold:
Annuity benefits accumulated	261
Life, accident and health reserves	1,525
Other liabilities	7
Total liabilities				1,793
Reclassify net unrealized gain on marketable securities				22
Net assets of businesses sold				179

Loss on subsidiaries, pretax				(166		)
Tax benefit				58
Loss on subsidiaries, net of tax				$	(108	)


(*)	Includes the fair value of the potential additional consideration and capital maintenance agreement and is shown net of estimated expenses.

Revenues, costs and expenses, and earnings before income taxes for the subsidiaries sold were (in millions):



	Year ended December 31,
	2015			2014			2013
Life, accident and health net earned premiums:
Long-term care	$	73		$	74		$	76
Life operations	11			11			12
Net investment income	73			75			68
Realized gains (losses) on securities and other income	(11		)	(6		)	10
Total revenues	146			154			166
Annuity benefits	8			7			9
Life, accident and health benefits:
Long-term care	91			119			113
Life operations	11			11			12
Annuity and supplemental insurance acquisition expenses	12			11			14
Other expenses	16			14			12
Total costs and expenses	138			162			160
Earnings before income taxes	$	8		$	(8	)	$	6

- 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

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-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

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-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

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-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721677-107760

+ Details

Segments of Operations (Tables)

12 Months Ended

Dec. 31, 2015

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.



	2015		2014		2013
Assets
Property and casualty insurance (a)	$	14,689	$	14,069	$	11,717
Annuity	29,865		27,317		24,294
Run-off long-term care and life (b)	772		2,489		2,408
Other	4,533		3,660		3,668
Total assets	$	49,859	$	47,535	$	42,087



Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	1,599		$	1,544	$	1,521
Specialty casualty	2,011			1,765		1,135
Specialty financial	517			469		469
Other specialty	97			100		79
Total premiums earned	4,224			3,878		3,204
Net investment income	319			294		263
Other income (c)	78			9		15
Total property and casualty insurance	4,621			4,181		3,482
Annuity:
Net investment income	1,224			1,136		1,034
Other income	98			97		77
Total annuity	1,322			1,233		1,111
Run-off long-term care and life (b)	188			195		195
Other	194			72		98
Total revenues before realized gains (losses)	6,325			5,681		4,886
Realized gains (losses) on securities	(19		)	52		221
Realized losses on subsidiaries	(161		)	—		(4		)
Total revenues	$	6,145		$	5,733	$	5,103


(a)	Not allocable to sub-segments.


(b)	AFG sold substantially all of its run-off long-term care insurance business in December 2015.


(c)	Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015 and $15 million from the sale of an apartment property in the fourth quarter of 2015.



	2015			2014			2013
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	48		$	21		$	12
Specialty casualty	146			136			102
Specialty financial	87			64			67
Other specialty	14			16			25
Other lines (a)	(70		)	(25		)	(61		)
Total underwriting	225			212			145
Investment and other income, net (b)	351			244			230
Total property and casualty insurance	576			456			375
Annuity (c)	331			328			323
Run-off long-term care and life (d)	14			(10		)	(10		)
Other (e)	(176		)	(200		)	(216		)
Total earnings before realized gains (losses) and income taxes	745			574			472
Realized gains (losses) on securities	(19		)	52			221
Realized losses on subsidiaries	(161		)	—			(4		)
Total earnings before income taxes	$	565		$	626		$	689


(a)	Includes special charges to increase asbestos and environmental (“A&E”) reserves of $67 million, $24 million and $54 million in 2015, 2014 and 2013, respectively.


(b)	Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015 and $15 million from the sale of an apartment property in the fourth quarter of 2015.


(c)	Includes a $5 million charge in the second quarter of 2013 to cover expected assessments from state guaranty funds related to insolvency and liquidation of an unaffiliated life insurance company.


(d)	AFG sold substantially all of its run-off long-term care insurance business in December 2015.

(e)

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value

Assets and liabilities measured and carried at fair value in the financial statements on a recurring basis are summarized below (in millions):



	Level 1		Level 2			Level 3		Total
December 31, 2015
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies	$	100	$	192		$	15	$	307
States, municipalities and political subdivisions	—		6,767			89		6,856
Foreign government	—		154			—		154
Residential MBS	—		3,305			224		3,529
Commercial MBS	—		2,148			39		2,187
Asset-backed securities (“ABS”)	—		4,464			470		4,934
Corporate and other	50		13,634			633		14,317
Total AFS fixed maturities	150		30,664			1,470		32,284
Trading fixed maturities	13		241			—		254
Equity securities	1,362		217			140		1,719
Assets of managed investment entities (“MIE”)	309		3,712			26		4,047
Variable annuity assets (separate accounts) (*)	—		608			—		608
Other investments — derivatives	—		241			—		241
Other assets — derivatives	—		2			—		2
Total assets accounted for at fair value	$	1,834	$	35,685		$	1,636	$	39,155
Liabilities:
Liabilities of managed investment entities	$	289	$	3,468		$	24	$	3,781
Derivatives in annuity benefits accumulated	—		—			1,369		1,369
Derivatives in long-term debt	—		(2		)	—		(2		)
Other liabilities — derivatives	—		8			—		8
Total liabilities accounted for at fair value	$	289	$	3,474		$	1,393	$	5,156

December 31, 2014
Assets:
Available for sale fixed maturities:
U.S. Government and government agencies	$	164	$	174		$	15	$	353
States, municipalities and political subdivisions	—		6,647			100		6,747
Foreign government	—		194			—		194
Residential MBS	—		4,142			300		4,442
Commercial MBS	—		2,407			44		2,451
Asset-backed securities	—		3,661			226		3,887
Corporate and other	36		12,078			546		12,660
Total AFS fixed maturities	200		29,303			1,231		30,734
Trading fixed maturities	12		254			—		266
Equity securities	1,306		297			93		1,696
Assets of managed investment entities	174		2,903			31		3,108
Variable annuity assets (separate accounts) (*)	—		662			—		662
Other investments — derivatives	—		322			—		322
Total assets accounted for at fair value	$	1,692	$	33,741		$	1,355	$	36,788
Liabilities:
Liabilities of managed investment entities	$	118	$	—		$	2,701	$	2,819
Derivatives in annuity benefits accumulated	—		—			1,160		1,160
Other liabilities — derivatives	—		13			—		13
Total liabilities accounted for at fair value	$	118	$	13		$	3,861	$	3,992

(*) Variable annuity liabilities equal the fair value of variable annuity assets.

Fair value measurements, Levels 1 and 2 transfers



	Level 2 To Level 1 Transfers									Level 1 To Level 2 Transfers
	# of Transfers			Fair Value						# of Transfers			Fair Value
	2015	2014	2013	2015		2014		2013		2015	2014	2013	2015		2014		2013
Perpetual preferred stocks	5	14	15	$	19	$	96	$	70	7	13	2	$	31	$	83	$	10
Common stocks	7	—	2	80		—		35		—	7	—	—		26		—
Redeemable preferred stocks	2	1	3	11		5		21		—	—	—	—		—		—

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 embedded derivatives. See Note F — “Derivatives.”



Unobservable Input		Range
Adjustment for insurance subsidiary’s credit risk		0.30% – 2.95% over the risk free rate
Risk margin for uncertainty in cash flows		0.58% reduction in the discount rate
Surrenders		3% – 18% of indexed account value
Partial surrenders		2% – 10% of indexed account value
Annuitizations		0.75% – 1.5% of indexed account value
Deaths		1.5% – 4.0% of indexed account value
Budgeted option costs		1.75% – 3.5% of indexed account value

Changes in balances of Level 3 financial assets and liabilities



						Total realized/unrealized gains (losses) included in
	Bal. at Dec. 31, 2014			Impact of accounting change (a)		Net income			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Sale of subsidiaries			Bal. at Dec. 31, 2015
AFS fixed maturities:
U.S. government agency	$	15		$	—	$	—		$	—		$	—		$	—		$	—	$	—		$	—		$	15
State and municipal	100			—		—			(1		)	34			(1		)	2		(39		)	(6		)	89
Residential MBS	300			—		(11		)	(1		)	—			(34		)	86		(88		)	(28		)	224
Commercial MBS	44			—		(1		)	(1		)	—			(2		)	4		(1		)	(4		)	39
Asset-backed securities	226			—		1			(7		)	265			(56		)	53		(10		)	(2		)	470
Corporate and other	546			—		(5		)	(9		)	161			(90		)	41		(5		)	(6		)	633
Equity securities	93			—		(4		)	(9		)	77			—			—		(17		)	—			140
Assets of MIE	31			—		(11		)	—			6			—			—		—			—			26
Liabilities of MIE	(2,701		)	2,701		—			—			—			—			—		—			—			—
Embedded derivatives (b)	(1,160		)	—		(17		)	—			(257		)	65			—		—			—			(1,369		)


(a)	The impact of implementing new guidance adopted in 2015, as discussed above and in Note A — “Accounting Policies — Managed Investment Entities.”


(b)	Total realized/unrealized gains (losses) included in net income for the embedded derivatives reflects losses related to the unlocking of actuarial assumptions of $28 million in 2015.



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2013			Net income			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at December 31, 2014
AFS fixed maturities:
U.S. government agency	$	15		$	—		$	—		$	—		$	—		$	—	$	—		$	15
State and municipal	61			(1		)	—			30			—			10		—			100
Residential MBS	316			4			3			13			(31		)	111		(116		)	300
Commercial MBS	28			(1		)	—			—			—			17		—			44
Asset-backed securities	75			3			(2		)	99			(39		)	117		(27		)	226
Corporate and other	335			2			13			102			(73		)	172		(5		)	546
Equity securities	31			1			2			62			(9		)	22		(16		)	93
Assets of MIE	30			(3		)	—			6			(2		)	—		—			31
Liabilities of MIE (a)	(2,411		)	22			—			(817		)	505			—		—			(2,701		)
Embedded derivatives (b)	(804		)	(182		)	—			(221		)	47			—		—			(1,160		)


(a)	Total realized/unrealized gains (losses) included in net income includes gains of $50 million related to liabilities outstanding as of December 31, 2014. See Note H — “Managed Investment Entities.”


(b)	Total realized/unrealized gains (losses) included in net income for the embedded derivatives reflects gains related to the unlocking of actuarial assumptions of $58 million in 2014.



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2012			Net income			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at December 31, 2013
AFS fixed maturities:
U.S. government agency	$	20		$	(2	)	$	(3	)	$	—		$	—		$	—	$	—		$	15
State and municipal	58			(1		)	(2		)	10			—			—		(4		)	61
Residential MBS	371			5			24			6			(53		)	86		(123		)	316
Commercial MBS	22			(1		)	(1		)	—			—			8		—			28
Asset-backed securities	253			4			(3		)	12			(57		)	11		(145		)	75
Corporate and other	236			1			(14		)	113			(17		)	24		(8		)	335
Equity securities	37			(1		)	6			53			(12		)	—		(52		)	31
Assets of MIE	40			(5		)	—			8			(7		)	—		(6		)	30
Liabilities of MIE (a)	(2,745		)	(25		)	—			(728		)	1,068			—		19			(2,411		)
Embedded derivatives (b)	(465		)	(182		)	—			(192		)	35			—		—			(804		)


(a)	Total realized/unrealized gains (losses) included in net income includes gains of $7 million related to liabilities outstanding as of December 31, 2013. See Note H — “Managed Investment Entities.”


(b)	Total realized/unrealized gains (losses) included in net income for the embedded derivatives reflects gains related to the unlocking of actuarial assumptions of $2 million in 2013.

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 Value		Fair Value		Level 1		Level 2		Level 3
2015
Financial assets:
Cash and cash equivalents	$	1,220	$	1,220	$	1,220	$	—	$	—
Mortgage loans	1,067		1,074		—		—		1,074
Policy loans	201		201		—		—		201
Total financial assets not accounted for at fair value	$	2,488	$	2,495	$	1,220	$	—	$	1,275
Financial liabilities:
Annuity benefits accumulated (*)	$	26,422	$	25,488	$	—	$	—	$	25,488
Long-term debt	1,022		1,120		—		1,105		15
Total financial liabilities not accounted for at fair value	$	27,444	$	26,608	$	—	$	1,105	$	25,503

2014
Financial assets:
Cash and cash equivalents	$	1,343	$	1,343	$	1,343	$	—	$	—
Mortgage loans	1,117		1,124		—		—		1,124
Policy loans	228		228		—		—		228
Total financial assets not accounted for at fair value	$	2,688	$	2,695	$	1,343	$	—	$	1,352
Financial liabilities:
Annuity benefits accumulated (*)	$	23,561	$	23,187	$	—	$	—	$	23,187
Long-term debt	1,061		1,180		—		1,106		74
Total financial liabilities not accounted for at fair value	$	24,622	$	24,367	$	—	$	1,106	$	23,261


(*)	Excludes $200 million and $203 million of life contingent annuities in the payout phase at December 31, 2015 and 2014, respectively.

Investments (Tables)

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Available for sale fixed maturities and equity securities

Available for sale fixed maturities and equity securities at December 31 consisted of the following (in millions):



	2015									2014
	Amortized Cost		Fair Value		Gross Unrealized					Amortized Cost		Fair Value		Gross Unrealized
	Amortized Cost		Fair Value		Gains		Losses			Amortized Cost		Fair Value		Gains		Losses
Fixed maturities:
U.S. Government and government agencies	$	305	$	307	$	5	$	(3	)	$	347	$	353	$	8	$	(2	)
States, municipalities and political subdivisions	6,642		6,856		249		(35		)	6,393		6,747		364		(10		)
Foreign government	147		154		7		—			184		194		10		—
Residential MBS	3,236		3,529		308		(15		)	4,046		4,442		411		(15		)
Commercial MBS	2,111		2,187		77		(1		)	2,294		2,451		158		(1		)
Asset-backed securities	4,961		4,934		25		(52		)	3,872		3,887		37		(22		)
Corporate and other	14,163		14,317		422		(268		)	11,938		12,660		751		(29		)
Total fixed maturities	$	31,565	$	32,284	$	1,093	$	(374	)	$	29,074	$	30,734	$	1,739	$	(79	)
Common stocks	$	1,051	$	1,118	$	146	$	(79	)	$	885	$	1,087	$	227	$	(25	)
Perpetual preferred stocks	$	418	$	435	$	23	$	(6	)	$	398	$	414	$	21	$	(5	)

Available for sale securities in a continuous unrealized loss position



	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
	Unrealized Loss			Fair Value		Fair Value as % of Cost		Unrealized Loss			Fair Value		Fair Value as % of Cost
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	%
Common stocks	$	(79	)	$	509	87	%	$	—		$	—	—	%
Perpetual preferred stocks	$	(3	)	$	91	97	%	$	(3	)	$	22	88	%

2014
Fixed maturities:
U.S. Government and government agencies	$	—		$	39	100	%	$	(2	)	$	15	88	%
States, municipalities and political subdivisions	(2		)	222		99	%	(8		)	408		98	%
Residential MBS	(4		)	298		99	%	(11		)	209		95	%
Commercial MBS	(1		)	38		97	%	—			11		100	%
Asset-backed securities	(11		)	1,389		99	%	(11		)	622		98	%
Corporate and other	(16		)	588		97	%	(13		)	433		97	%
Total fixed maturities	$	(34	)	$	2,574	99	%	$	(45	)	$	1,698	97	%
Common stocks	$	(25	)	$	260	91	%	$	—		$	—	—	%
Perpetual preferred stocks	$	(1	)	$	45	98	%	$	(4	)	$	55	93	%

Roll forward of cumulative credit portion of other-than-temporary impairments on fixed maturity securities



	2015			2014			2013
Balance at January 1	$	170		$	194		$	192
Additional credit impairments on:
Previously impaired securities	1			—			—
Securities without prior impairments	2			—			3
Reductions due to:
Sales or redemptions	(9		)	(24		)	(1		)
Sale of subsidiaries	(4		)	—			—
Balance at December 31	$	160		$	170		$	194

Available for sale fixed maturity securities by contractual maturity date



	Amortized		Fair Value
	Cost		Amount		%
Maturity
One year or less	$	922	$	935	3	%
After one year through five years	5,208		5,417		17	%
After five years through ten years	11,007		11,054		34	%
After ten years	4,120		4,228		13	%
	21,257		21,634		67	%
ABS (average life of approximately 5 years)	4,961		4,934		15	%
MBS (average life of approximately 4 years)	5,347		5,716		18	%
Total	$	31,565	$	32,284	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
December 31, 2015
Unrealized gain on:
Fixed maturities — annuity segment (*)	$	523		$	(183	)	$	340
Fixed maturities — all other	196			(72		)	124
Equity securities	84			(30		)	54
Deferred policy acquisition costs — annuity segment	(233		)	82			(151		)
Annuity benefits accumulated	(64		)	22			(42		)
Unearned revenue	11			(4		)	7
	$	517		$	(185	)	$	332
December 31, 2014
Unrealized gain on:
Fixed maturities — annuity segment (*)	$	1,157		$	(405	)	$	752
Fixed maturities — all other	503			(185		)	318
Equity securities	218			(79		)	139
Deferred policy acquisition costs — annuity segment	(531		)	186			(345		)
Annuity benefits accumulated	(112		)	39			(73		)
Life, accident and health reserves	(104		)	36			(68		)
Unearned revenue	31			(11		)	20
	$	1,162		$	(419	)	$	743

(*) 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.



	2015			2014			2013
Investment income:
Fixed maturities	$	1,461		$	1,352		$	1,241
Equity securities	76			66			50
Equity in earnings of partnerships and similar investments (*)	27			18			—
Other	87			77			72
Gross investment income	1,651			1,513			1,363
Investment expenses	(18		)	(12		)	(17		)
Net investment income	$	1,633		$	1,501		$	1,346


(*)	Prior to 2014, equity in the earnings of partnerships was not material and was included in realized gains (losses) on securities.

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):



	Fixed Maturities			Equity Securities			Mortgage Loans and Other Investments			Other (*)			Total Pretax			Tax Effects			Noncon- trolling Interests			Total
Year ended December 31, 2015
Realized before impairments	$	19		$	94		$	(2	)	$	(5	)	$	106		$	(38	)	$	(2	)	$	66
Realized — impairments	(43		)	(94		)	(3		)	15			(125		)	45			2			(78		)
Change in unrealized	(941		)	(134		)	—			430			(645		)	226			8			(411		)
Year ended December 31, 2014
Realized before impairments	$	36		$	53		$	1		$	(2	)	$	88		$	(32	)	$	(2	)	$	54
Realized — impairments	(15		)	(26		)	—			5			(36		)	13			1			(22		)
Change in unrealized	570			26			—			(314		)	282			(99		)	(3		)	180
Year ended December 31, 2013
Realized before impairments	$	36		$	196		$	2		$	(1	)	$	233		$	(82	)	$	(2	)	$	149
Realized — impairments	(5		)	(5		)	(5		)	3			(12		)	4			—			(8		)
Change in unrealized	(945		)	31			—			504			(410		)	144			6			(260		)


(*)	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



	2015			2014			2013
Fixed maturities:
Gross gains	$	38		$	36		$	44
Gross losses	(7		)	(2		)	(5		)
Equity securities:
Gross gains	99			53			193
Gross losses	(5		)	—			—

Derivatives (Tables)

12 Months Ended

Dec. 31, 2015

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, 2015				December 31, 2014
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	130	$	—	$	158	$	—
Public company warrants	Equity securities	4		—		19		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		1,369		—		1,160
Equity index call options	Other investments	241		—		322		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		7		—		13
		$	375	$	1,376	$	499	$	1,173

Summary of gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives



Derivative	Statement of Earnings Line	2015			2014			2013
MBS with embedded derivatives	Realized gains on securities	$	(16	)	$	3		$	(3	)
Public company warrants	Realized gains on securities	—			—			3
Interest rate swaptions	Realized gains on securities	—			(2		)	1
Fixed-indexed annuities (embedded derivative) (*)	Annuity benefits	(17		)	(182		)	(182		)
Equity index call options	Annuity benefits	(56		)	181			210
Reinsurance contracts (embedded derivative)	Net investment income	6			(3		)	7
		$	(83	)	$	(3	)	$	36


(*)	The change in fair value of the embedded derivative includes losses related to unlocking of actuarial assumptions of $28 million in 2015 compared to gains related to unlocking of actuarial assumptions of $58 million in 2014 and $2 million in 2013.

Deferred Policy Acquisition Costs (Tables)

12 Months Ended

Dec. 31, 2015

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 Run-off Long-term Care and Life
	Deferred			Deferred			Sales															Consolidated
	Costs			Costs			Inducements			PVFP			Subtotal			Unrealized			Total			Total
Balance at December 31, 2012	$	204		$	787		$	170		$	99		$	1,056		$	(710	)	$	346		$	550
Additions	468			222			11			—			233			—			233			701
Amortization:
Periodic amortization	(460		)	(140		)	(30		)	(14		)	(184		)	—			(184		)	(644		)
Annuity unlocking	—			4			(2		)	—			2			—			2			2
Included in realized gains	—			2			—			—			2			—			2			2
Foreign currency translation	(1		)	—			—			—			—			—			—			(1		)
Change in unrealized	—			—			—			—			—			365			365			365
Balance at December 31, 2013	211			875			149			85			1,109			(345		)	764			975

Additions	497			198			8			—			206			—			206			703
Amortization:
Periodic amortization	(485		)	(130		)	(26		)	(11		)	(167		)	—			(167		)	(652		)
Annuity unlocking	—			(20		)	—			—			(20		)	—			(20		)	(20		)
Included in realized gains	—			2			1			—			3			—			3			3
Foreign currency translation	(2		)	—			—			—			—			—			—			(2		)
Change in unrealized	—			—			—			—			—			(186		)	(186		)	(186		)
Balance at December 31, 2014	221			925			132			74			1,131			(531		)	600			821

Additions	519			224			11			—			235			—			235			754
Amortization:
Periodic amortization	(511		)	(162		)	(26		)	(11		)	(199		)	—			(199		)	(710		)
Annuity unlocking	—			31			4			—			35			—			35			35
Included in realized gains	—			8			1			—			9			—			9			9
Sale of subsidiaries	—			(8		)	(3		)	(8		)	(19		)	—			(19		)	(19		)
Foreign currency translation	(3		)	—			—			—			—			—			—			(3		)
Change in unrealized	—			—			—			—			—			297			297			297
Balance at December 31, 2015	$	226		$	1,018		$	119		$	55		$	1,192		$	(234	)	$	958		$	1,184

Managed Investment Entities (Tables)

12 Months Ended

Dec. 31, 2015

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,
	2015			2014			2013
Gains (losses) on change in fair value of assets/liabilities (a):
Assets	$	(116	)	$	(66	)	$	11
Liabilities	82			22			(25		)
Management fees paid to AFG	15			25			16
CLO earnings (losses) attributable to (b):
AFG shareholders	(6		)	16			35
Noncontrolling interests	—			(51		)	(26		)


(a)	Included in Revenues in AFG’s Statement of Earnings.


(b)	Included in Earnings before income taxes in AFG’s Statement of Earnings.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Goodwill and Other Intangibles (Tables)

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying value of goodwill by reporting segment

Changes in the carrying value of goodwill during 2013, 2014 and 2015, by reporting segment, are presented in the following table (in millions):



	Property and Casualty		Annuity			Total
Balance at January 1, 2013 and January 1, 2014	$	152	$	33		$	185
Acquisition of subsidiary in 2014	16		—			16
Balance at December 31, 2014	168		33			201
Sale of subsidiaries in 2015	—		(2		)	(2		)
Balance at December 31, 2015	$	168	$	31		$	199

Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

The carrying value of long-term debt consisted of the following at December 31 (in millions):



	2015		2014
Direct Senior Obligations of AFG:
9-7/8% Senior Notes due June 2019	$	350	$	350
6-3/8% Senior Notes due June 2042	230		230
5-3/4% Senior Notes due August 2042	125		125
7% Senior Notes due September 2050	—		132
Other	3		3
	708		840

Direct Subordinated Obligations of AFG:
6-1/4% Subordinated Debentures due September 2054	150		150
6% Subordinated Debentures due November 2055	150		—
	300		150
Subsidiaries:
Notes payable secured by real estate	—		59
National Interstate bank credit facility	12		12
	12		71
	$	1,020	$	1,061

Summary of secured and unsecured long-term debt

As shown below at December 31 (in millions), the majority of AFG’s long-term debt is unsecured obligations of the holding company and its subsidiaries.



	2015		2014
Senior unsecured obligations	$	720	$	852
Subordinated unsecured obligations	300		150
Obligations secured by real estate	—		59
	$	1,020	$	1,061

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=34725769&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2015

Stockholders' Equity Note [Abstract]

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, 2015	6,383,799		$	36.92
Granted	716,818		$	63.15
Exercised	(1,475,202	)	$	31.77
Forfeited/Cancelled	(109,325	)	$	49.34
Outstanding at December 31, 2015	5,516,090		$	41.46	5.9 years	$	169

Options exercisable at December 31, 2015	2,988,920		$	32.85	4.4 years	$	117

Assumptions used in estimating weighted average fair value of options on grant date



	2015			2014			2013
Exercise price	$	63.15		$	56.47		$	44.01
Expected dividend yield	1.6		%	1.6		%	1.8		%
Expected volatility	25		%	26		%	39		%
Expected term (in years)	7.25			7.25			7.25
Risk-free rate	1.88		%	2.20		%	1.36		%

Grant date fair value	$	15.29		$	14.66		$	15.10

Summary of restricted stock awards activity

The restricted Common Stock that AFG has granted generally vests over a three or four year period. Data relating to grants of restricted stock is presented below:



	Shares		Average Grant Date Fair Value
Outstanding at January 1, 2015	515,450		$	43.32
Granted	171,130		$	63.15
Vested	(163,312	)	$	38.36
Forfeited	(17,570	)	$	49.28
Outstanding at December 31, 2015	505,698		$	51.43

Components of accumulated other comprehensive income (loss)

The progression of the components of accumulated other comprehensive income follows (in millions):



				Other Comprehensive Income
	AOCI Beginning Balance			Pretax			Tax			Net of tax			Attributable to noncontrolling interests			Attributable to shareholders			AOCI Ending Balance
Year ended December 31, 2015
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period				$	(625	)	$	219		$	(406	)	$	9		$	(397	)
Reclassification adjustment for realized (gains) losses included in net earnings (a)				14			(5		)	9			(1		)	8
Reclassification for unrealized gains of subsidiaries sold				(34		)	12			(22		)	—			(22		)
Total net unrealized gains (losses) on securities (b)	$	743		(645		)	226			(419		)	8			(411		)	$	332
Net unrealized gains on cash flow hedges	—			1			—			1			—			1			1
Foreign currency translation adjustments	(8		)	(9		)	(5		)	(14		)	—			(14		)	(22		)
Pension and other postretirement plans adjustments	(8		)	1			—			1			—			1			(7		)
Total	$	727		$	(652	)	$	221		$	(431	)	$	8		$	(423	)	$	304

Year ended December 31, 2014
Net unrealized gains on securities:
Unrealized holding gains (losses) on securities arising during the period				$	334		$	(118	)	$	216		$	(4	)	$	212
Reclassification adjustment for realized (gains) losses included in net earnings (a)				(52		)	19			(33		)	1			(32		)
Total net unrealized gains on securities (b)	$	563		282			(99		)	183			(3		)	180			$	743
Foreign currency translation adjustments	1			(8		)	(1		)	(9		)	—			(9		)	(8		)
Pension and other postretirement plans adjustments	(4		)	(6		)	2			(4		)	—			(4		)	(8		)
Total	$	560		$	268		$	(98	)	$	170		$	(3	)	$	167		$	727

Year ended December 31, 2013
Net unrealized gains on securities:
Unrealized holding gains (losses) on securities arising during the period				$	(188	)	$	66		$	(122	)	$	4		$	(118	)
Reclassification adjustment for realized (gains) losses included in net earnings (a)				(222		)	78			(144		)	2			(142		)
Total net unrealized gains on securities (b)	$	823		(410		)	144			(266		)	6			(260		)	$	563
Foreign currency translation adjustments	14			(13		)	—			(13		)	—			(13		)	1
Pension and other postretirement plans adjustments	(6		)	3			(1		)	2			—			2			(4		)
Total	$	831		$	(420	)	$	143		$	(277	)	$	6		$	(271	)	$	560


(a)	The reclassification adjustment out of net unrealized gains on securities affected the following lines in AFG’s Statement of Earnings:



	OCI component		Affected line in the Statement of Earnings
	Pretax		Realized gains on securities
	Tax		Provision for income taxes
	Attributable to noncontrolling interests		Net earnings (loss) attributable to noncontrolling interests


(b)	Includes net unrealized gains of $51 million at December 31, 2015 compared to net unrealized gains of $58 million and $54 million at December 31, 2014 and 2013, related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

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 of 35% to the provision for income taxes as shown in the Statement of Earnings (dollars in millions):



	2015					2014					2013
	Amount			% of EBT		Amount			% of EBT		Amount			% of EBT
Earnings before income taxes (“EBT”)	$	565				$	626				$	689

Income taxes at statutory rate	$	198		35	%	$	219		35	%	$	241		35	%
Effect of:
Tax exempt interest	(27		)	(5	%)	(25		)	(4	%)	(21		)	(3	%)
Losses of managed investment entities	—			—	%	18			3	%	9			1	%
Change in valuation allowance	23			4	%	7			1	%	1			—	%
Subsidiaries not in AFG’s tax return	2			1	%	1			—	%	2			—	%
Other	(1		)	—	%	—			—	%	4			1	%
Provision for income taxes as shown in the Statement of Earnings	$	195		35	%	$	220		35	%	$	236		34	%

Components of income tax provision (credit)

The total income tax provision (credit) consists of (in millions):



	2015			2014			2013
Current taxes:
Federal	$	216		$	265		$	308
State	8			8			5
Deferred taxes:
Federal	(29		)	(53		)	(77		)
Provision for income taxes	$	195		$	220		$	236

Summary of operating loss carryforwards

For income tax purposes, AFG and its subsidiaries had the following carryforwards available at December 31, 2015 (in millions):


(*)	£90 million

Components of deferred tax assets and liabilities



	2015									2014
	Excluding Unrealized Gains			Impact of Unrealized Gains			Total			Excluding Unrealized Gains			Impact of Unrealized Gains			Total
Deferred tax assets:
Federal net operating loss carryforwards	$	50		$	—		$	50		$	51		$	—		$	51
Foreign underwriting losses	77			—			77			56			—			56
Capital loss carryforwards	32			—			32			—			—			—
Insurance claims and reserves	691			22			713			682			75			757
Employee benefits	115			—			115			107			—			107
Other, net	33			(4		)	29			26			(11		)	15
Total deferred tax assets before valuation allowance	998			18			1,016			922			64			986
Valuation allowance against deferred tax assets	(130		)	—			(130		)	(109		)	—			(109		)
Total deferred tax assets	868			18			886			813			64			877
Deferred tax liabilities:
Subsidiaries not in AFG’s tax return (*)	(63		)	—			(63		)	(61		)	—			(61		)
Investment securities	23			(281		)	(258		)	(6		)	(657		)	(663		)
Deferred policy acquisition costs	(418		)	82			(336		)	(364		)	186			(178		)
Total deferred tax liabilities	(458		)	(199		)	(657		)	(431		)	(471		)	(902		)
Net deferred tax asset (liability)	$	410		$	(181	)	$	229		$	382		$	(407	)	$	(25	)

(*) Related to National Interstate Corporation, a 51%-owned subsidiary.

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):



	2015		2014			2013
Balance at January 1	$	—	$	19		$	18
Additions for tax positions of prior years	1		—			—
Reductions for tax positions of prior years	—		(8		)	—
Additions for tax positions of current year	—		—			1
Settlements	—		(11		)	—
Balance at December 31	$	1	$	—		$	19

Quarterly Operating Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Schedule of quarterly operating results



	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Total Year
2015
Revenues	$	1,294	$	1,541	$	1,684	$	1,626	$	6,145
Net earnings, including noncontrolling interests	25		149		66		130		370
Net earnings attributable to shareholders	19		141		63		129		352
Earnings attributable to shareholders per Common Share:
Basic	$	0.22	$	1.60	$	0.72	$	1.48	$	4.02
Diluted	0.21		1.57		0.71		1.45		3.94
Average number of Common Shares:
Basic	87.6		87.7		87.5		87.4		87.6
Diluted	89.4		89.5		89.3		89.2		89.4
2014
Revenues	$	1,211	$	1,392	$	1,581	$	1,549	$	5,733
Net earnings, including noncontrolling interests	107		83		91		125		406
Net earnings attributable to shareholders	103		106		116		127		452
Earnings attributable to shareholders per Common Share:
Basic	$	1.15	$	1.18	$	1.30	$	1.44	$	5.07
Diluted	1.13		1.15		1.28		1.41		4.97
Average number of Common Shares:
Basic	89.6		89.6		89.0		87.9		89.0
Diluted	91.6		91.6		90.9		89.8		91.0

Quarterly information on realized gains (losses) and favorable (unfavorable) development on unpaid loss and loss adjustment expenses



	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			Total Year
Realized Gains (Losses) on Securities and Subsidiaries
2015	$	(143	)	$	(1	)	$	(11	)	$	(25	)	$	(180	)
2014	19			12			13			8			52

Prior Year Development Favorable (Adverse)
2015	$	7		$	10		$	(55	)	$	5		$	(33	)
2014	31			(14		)	(13		)	(10		)	(6		)

Insurance (Tables)

12 Months Ended

Dec. 31, 2015

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, net of reinsurance (and grossed up), over the past three years (in millions):



	2015			2014			2013
Balance at beginning of period	$	5,645		$	4,288		$	4,129
Provision for losses and LAE occurring in the current year	2,662			2,488			2,055
Net increase (decrease) in the provision for claims of prior years:
Special A&E charges	67			24			54
Other	(34		)	(18		)	(69		)
Total losses and LAE incurred	2,695			2,494			2,040
Payments for losses and LAE of:
Current year	(828		)	(789		)	(739		)
Prior years	(1,575		)	(1,340		)	(1,131		)
Total payments	(2,403		)	(2,129		)	(1,870		)
Reserves of businesses acquired (*)	—			1,028			—
Foreign currency translation and other	(11		)	(36		)	(11		)
Balance at end of period	5,926			5,645			4,288
Add back reinsurance recoverables, net of allowance	2,201			2,227			2,122
Gross unpaid losses and LAE included in the balance sheet	$	8,127		$	7,872		$	6,410

(*) Reflects the acquisition of Summit in April 2014 (see Note B — “Acquisitions and Sale of Businesses”).

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
	2015		2014		2013		2015		2014
Property and casualty companies	$	408	$	318	$	332	$	2,488	$	2,286
Life insurance companies	399		349		294		1,721		1,714

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.



	2015			2014			2013
Direct premiums written	$	5,713		$	5,387		$	4,744
Reinsurance assumed	119			90			61
Reinsurance ceded	(1,505		)	(1,457		)	(1,464		)
Net written premiums	$	4,327		$	4,020		$	3,341

Direct premiums earned	$	5,613		$	5,195		$	4,684
Reinsurance assumed	105			75			45
Reinsurance ceded	(1,494		)	(1,392		)	(1,525		)
Net earned premiums	$	4,224		$	3,878		$	3,204

Reinsurance recoveries	$	936		$	895		$	1,255

Schedule of reserve liabilities for annuity benefits accumulated

For certain products, the liability for “annuity benefits accumulated” includes reserves for excess benefits expected to be paid on future deaths and annuitizations (“EDAR”), 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):



	2015		2014
Expected death and annuitization	$	214	$	213
Guaranteed withdrawal benefits	203		151
Accrued persistency and premium bonuses	11		14

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

+ References + Details

Accounting Policies (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Variable Interest Entity [Line Items]
Assets	$ 4,047	$ 3,108
Liabilities	$ 3,781	$ 2,819
Weighted average common shares adjustment related to stock-based compensation	1.8	2.0	1.9
Anti-dilutive potential common shares related to stock-based compensation plans	1.1	1.0	1.1
Maturities of short term investments	3 months
New collateralized loan obligation temporary warehousing entities [Member]
Variable Interest Entity [Line Items]
Assets	$ 100
Liabilities	$ 80

Acquisitions and Sale of Businesses (Details) - USD ($)
$ in Millions

12 Months Ended

Apr. 01, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Business Acquisition [Line Items]

Total purchase price

$ 0

$ 267

$ 0

Allocation of excess purchase price:

Goodwill

$ 199

$ 201

$ 185

Summit Holding Southeast, Inc [Member]

Business Acquisition [Line Items]

Total purchase price

$ 259

Tangible assets acquired:

Cash and cash equivalents

1,078

Fixed maturities, available for sale

Recoverables from reinsurers

116

Agents’ balances and premiums receivable

Deferred tax assets, net

^[1]

Other receivables

Other assets

Total tangible assets acquired

1,426

Liabilities acquired:

Unpaid losses and loss adjustment expenses

1,142

Unearned premiums

Payable to reinsurers

Other liabilities

Total liabilities acquired

1,214

Net tangible assets acquired, at fair value

212

Excess purchase price over net tangible assets acquired

Allocation of excess purchase price:

Intangible assets acquired

^[2]

Deferred tax on intangible assets acquired

^[1]

(16)

Goodwill

$ 16

[1]	AFG’s net deferred tax assets are included in Other assets in AFG’s Balance Sheet at December 31, 2015.
[2]	Included in Other assets in AFG’s Balance Sheet.

Acquisitions and Sale of Businesses (Details 1) - Run-off long-term care insurance business [Member] - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 24, 2015

Dec. 31, 2015

Mar. 31, 2015

Dec. 31, 2015

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Net sale proceeds

^[1]

$ 13

Assets of businesses sold:

Cash and investments

1,334

Recoverables from reinsurers

630

Deferred policy acquisition costs

(4)

1,994

Liabilities of businesses sold:

Annuity benefits accumulated

261

Life, accident and health reserves

1,525

Other liabilities

Total liabilities

1,793

Reclassify net unrealized gain on marketable securities

Net assets of businesses sold

179

Loss on subsidiaries, pretax

(166)

$ (4)

$ (162)

$ (166)

Tax benefit

Loss on subsidiaries, net of tax

$ (108)

$ (105)

[1]	Includes the fair value of the potential additional consideration and capital maintenance agreement and is shown net of estimated expenses.

Acquisitions and Sale of Businesses (Details 2) - Run-off long-term care insurance business [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Life, accident and health net earned premiums:
Long-term care	$ 73	$ 74	$ 76
Life operations	11	11	12
Net investment income	73	75	68
Realized gains (losses) on securities and other income	(11)	(6)	10
Total revenues	146	154	166
Annuity benefits	8	7	9
Life, accident and health benefits:
Long-term care	91	119	113
Life operations	11	11	12
Annuity and supplemental insurance acquisition expenses	12	11	14
Other expenses	16	14	12
Total costs and expenses	138	162	160
Earnings before income taxes	$ 8	$ (8)	$ 6

Acquisitions and Sale of Businesses (Details Textual) $ in Millions				3 Months Ended			9 Months Ended	12 Months Ended
	Dec. 24, 2015 USD ($) shares	Apr. 01, 2014 USD ($)	Mar. 27, 2014 USD ($)	Dec. 31, 2015 USD ($) policy	Sep. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2015 USD ($) policy	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Nov. 30, 2015	Dec. 31, 2012 USD ($)
Acquisitions and Sale of Businesses [Line Items]
Payments to acquire business								$ 0	$ 267	$ 0
Weighted average useful life of finite-lived intangible assets acquired								5 years
Goodwill				$ 199			$ 201	$ 199	201	185		$ 185
Cash proceeds from the sale of business								7	0	0
Long-term care insurance reserves				34				34
Realized gains (losses) on subsidiaries								(161)	0	(4)
Run-off long-term care insurance business [Member]
Acquisitions and Sale of Businesses [Line Items]
Cash proceeds from the sale of business	$ 7
Investment securities proceeds received from the sale of business	11
Potential additional sale proceeds based on the release of certain statutory liabilities of the legal entities sold								13
Contingent capital support agreement amount	$ 35
Contingent capital support agreement term	5 years
Contingent capital support agreement consideration received \| shares	2,000,000
Long-term care insurance reserves of business sold as a percentage of total long-term care insurance reserves											96.00%
Cash and investment securities proceeds from the sale of business	$ 18
Expected tax benefits proceeds from the sale of business								97
Loss on subsidiaries, pretax	(166)			$ (4)		$ (162)		(166)
Loss on subsidiaries, net of tax	$ (108)					$ (105)
Carrying value of the assets and liabilities of business sold as a percentage of total assets and liabilities	4.00%
Summit Holding Southeast, Inc [Member]
Acquisitions and Sale of Businesses [Line Items]
Payments to acquire business		$ 259
Capital contributions to acquired business		140
Total capital investment in acquired business		399
Net earned premiums of acquired business							$ 410	529
Indefinite-lived intangible assets acquired		1
Finite-lived intangible assets acquired		$ 46
Weighted average useful life of finite-lived intangible assets acquired		7 years
Goodwill		$ 16
Selective Insurance Company of America Self-Insured Pooled Group [Member]
Acquisitions and Sale of Businesses [Line Items]
Payments to acquire business			$ 8
In-force gross written premiums of acquired book of business			$ 38
Gross written premiums of acquired business								34
Net written premiums of acquired business								16
Maximum [Member] \| Summit Holding Southeast, Inc [Member]
Acquisitions and Sale of Businesses [Line Items]
Expenses related to the acquisition of business (are less than)		$ 1
AFG [Member]
Acquisitions and Sale of Businesses [Line Items]
Capital contributions to acquired business								$ 27	$ 431	$ 38
AFG [Member] \| Run-off long-term care insurance business [Member]
Acquisitions and Sale of Businesses [Line Items]
Number of long-term care insurance policies \| policy				1,700				1,700
Long-term care insurance reserves				$ 34				$ 34
Reduced estimated tax payments [Member] \| Run-off long-term care insurance business [Member]
Acquisitions and Sale of Businesses [Line Items]
Expected tax benefits proceeds from the sale of business								65
Carryback of the tax-basis capital loss [Member] \| Run-off long-term care insurance business [Member]
Acquisitions and Sale of Businesses [Line Items]
Expected tax benefits proceeds from the sale of business								$ 32
Property and Casualty Group [Member]
Acquisitions and Sale of Businesses [Line Items]
Realized gains (losses) on subsidiaries					$ 5

Segments of Operations (Details) - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Segment Reporting Information [Line Items]

Total assets

$ 49,859

$ 47,535

$ 42,087

Property and Casualty Insurance [Member]

Segment Reporting Information [Line Items]

Total assets

^[1]

14,689

14,069

11,717

Annuity [Member]

Segment Reporting Information [Line Items]

Total assets

29,865

27,317

24,294

Run-off Long-term Care and Life [Member]

Segment Reporting Information [Line Items]

Total assets

^[2]

772

2,489

2,408

Other [Member]

Segment Reporting Information [Line Items]

Total assets

$ 4,533

$ 3,660

$ 3,668

[1]	Not allocable to sub-segments.
[2]	AFG sold substantially all of its run-off long-term care insurance business in December 2015.

Segments of Operations (Details 1) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Segment Reporting Information [Line Items]

Total premiums earned

$ 4,224

$ 3,878

$ 3,204

Net investment income

1,633

1,501

1,346

Other income

243

122

108

Revenues before realized gains (losses)

6,325

5,681

4,886

Realized gains (losses) on securities

(19)

221

Realized losses on subsidiaries

(161)

(4)

Total revenues

$ 1,626

$ 1,684

$ 1,541

$ 1,294

$ 1,549

$ 1,581

$ 1,392

$ 1,211

6,145

5,733

5,103

Property and Casualty Insurance [Member]

Segment Reporting Information [Line Items]

Net investment income

319

294

263

Other income

^[1]

Revenues before realized gains (losses)

4,621

4,181

3,482

Annuity [Member]

Segment Reporting Information [Line Items]

Net investment income

1,224

1,136

1,034

Other income

Revenues before realized gains (losses)

1,322

1,233

1,111

Run-off Long-term Care and Life [Member]

Segment Reporting Information [Line Items]

Revenues before realized gains (losses)

^[2]

188

195

Other [Member]

Segment Reporting Information [Line Items]

Revenues before realized gains (losses)

194

Specialty Property and transportation [Member]

Segment Reporting Information [Line Items]

Total premiums earned

1,599

1,544

1,521

Specialty casualty [Member]

Segment Reporting Information [Line Items]

Total premiums earned

2,011

1,765

1,135

Specialty financial [Member]

Segment Reporting Information [Line Items]

Total premiums earned

517

469

Specialty Other [Member]

Segment Reporting Information [Line Items]

Total premiums earned

$ 97

$ 100

$ 79

[1]	Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015 and $15 million from the sale of an apartment property in the fourth quarter of 2015.
[2]	AFG sold substantially all of its run-off long-term care insurance business in December 2015.

Segments of Operations (Details 2) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Segment Reporting Information [Line Items]

Earnings before realized gains (losses) and income taxes

$ 745

$ 574

$ 472

Realized gains (losses) on securities

(19)

221

Realized losses on subsidiaries

(161)

(4)

Earnings before income taxes

565

626

689

Property and Casualty Insurance [Member]

Segment Reporting Information [Line Items]

Property and casualty insurance underwriting

225

212

145

Investment and other income, net

^[1]

351

244

230

Earnings before realized gains (losses) and income taxes

576

456

375

Annuity [Member]

Segment Reporting Information [Line Items]

Earnings before realized gains (losses) and income taxes

^[2]

331

328

323

Run-off Long-term Care and Life [Member]

Segment Reporting Information [Line Items]

Earnings before realized gains (losses) and income taxes

^[3]

(10)

Other [Member]

Segment Reporting Information [Line Items]

Earnings before realized gains (losses) and income taxes

^[4]

(176)

(200)

(216)

Specialty Property and transportation [Member]

Segment Reporting Information [Line Items]

Property and casualty insurance underwriting

Specialty casualty [Member]

Segment Reporting Information [Line Items]

Property and casualty insurance underwriting

146

136

102

Specialty financial [Member]

Segment Reporting Information [Line Items]

Property and casualty insurance underwriting

Specialty Other [Member]

Segment Reporting Information [Line Items]

Property and casualty insurance underwriting

Other Lines [Member]

Segment Reporting Information [Line Items]

Property and casualty insurance underwriting

^[5]

$ (70)

$ (25)

$ (61)

[1]	Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015 and $15 million from the sale of an apartment property in the fourth quarter of 2015.
[2]	Includes a $5 million charge in the second quarter of 2013 to cover expected assessments from state guaranty funds related to insolvency and liquidation of an unaffiliated life insurance company.
[3]	AFG sold substantially all of its run-off long-term care insurance business in December 2015.
[4]	Primarily holding company expenses, including a $4 million loss on retirement of debt in the third quarter of 2015 and special charges to increase A&E reserves related to AFG’s former railroad and manufacturing operations ($12 million in 2015, $6 million in 2014 and $22 million in 2013) and losses of managed investment entities attributable to noncontrolling interests ($51 million in 2014 and $26 million in 2013). Following the adoption of new guidance in the first quarter of 2015, there are no longer earnings (losses) of managed investment entities that are attributable to noncontrolling interests. See Note A — “Accounting Policies — Managed Investment Entities.”
[5]	Includes special charges to increase asbestos and environmental (“A&E”) reserves of $67 million, $24 million and $54 million in 2015, 2014 and 2013, respectively.

Segments of Operations (Details Textual)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2015

USD ($)

Sep. 30, 2015

USD ($)

Jun. 30, 2015

USD ($)

Jun. 30, 2013

USD ($)

Dec. 31, 2015

USD ($)

segment

Dec. 31, 2014

USD ($)

Dec. 31, 2013

USD ($)

Segment Reporting Information [Line Items]

Number of segments | segment

Revenue derived from sales of property and casualty insurance outside of the United States

4.00%

5.00%

Other income

$ 243

$ 122

$ 108

Earnings (losses) of managed investment entities attributable to noncontrolling interests

^[1]

(51)

(26)

Other Lines [Member]

Segment Reporting Information [Line Items]

Special charges to increase asbestos and environmental reserves

Property and Casualty Insurance [Member]

Segment Reporting Information [Line Items]

Other income

^[2]

Property and Casualty Insurance [Member] | Real Estate Investment [Member]

Segment Reporting Information [Line Items]

Other income

$ 15

$ 51

Annuity [Member]

Segment Reporting Information [Line Items]

Other income

Annuity [Member] | Insurance-related Assessments [Member]

Segment Reporting Information [Line Items]

Charge for guaranty fund assessments for the insolvency and liquidation of an unaffiliated life insurance company

$ 5

Other [Member]

Segment Reporting Information [Line Items]

Special charges to increase asbestos and environmental reserves

$ 12

Write off of deferred debt issuance cost due to the retirement of debt

$ 4

Earnings (losses) of managed investment entities attributable to noncontrolling interests

$ (51)

$ (26)

[1]	Included in Earnings before income taxes in AFG’s Statement of Earnings.
[2]	Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015 and $15 million from the sale of an apartment property in the fourth quarter of 2015.

Fair Value Measurements (Details) - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Assets:

Available for sale (AFS) fixed maturities

$ 32,284

$ 30,734

Trading fixed maturities

254

266

Assets of managed investment entities (MIE)

4,047

3,108

Variable annuity assets (separate accounts)

^[1]

608

662

Total assets accounted for at fair value

39,155

36,788

Liabilities:

Liabilities of managed investment entities

3,781

2,819

Total liabilities accounted for at fair value

5,156

3,992

Annuity benefits accumulated [Member]

Liabilities:

Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities

1,369

1,160

Derivatives in long-term debt [Member]

Liabilities:

Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities

(2)

Other liabilities — derivatives [Member]

Liabilities:

Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities

U.S. Government and government agencies [Member]

Assets:

Available for sale (AFS) fixed maturities

307

353

States, municipalities and political subdivisions [Member]

Assets:

Available for sale (AFS) fixed maturities

6,856

6,747

Foreign government [Member]

Assets:

Available for sale (AFS) fixed maturities

154

194

Residential Mortgage Backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

3,529

4,442

Commercial Mortgage Backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

2,187

2,451

Asset-backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

4,934

3,887

All other corporate [Member]

Assets:

Available for sale (AFS) fixed maturities

14,317

12,660

Fixed maturities [Member]

Assets:

Available for sale (AFS) fixed maturities

32,284

30,734

Trading fixed maturities

254

266

Equity securities [Member]

Assets:

Equity securities

1,719

1,696

Other investments — derivatives [Member]

Assets:

Derivatives included in other investments and other assets

241

322

Other assets — derivatives [Member]

Assets:

Derivatives included in other investments and other assets

Level 1 [Member]

Assets:

Assets of managed investment entities (MIE)

309

174

Variable annuity assets (separate accounts)

^[1]

Total assets accounted for at fair value

1,834

1,692

Liabilities:

Liabilities of managed investment entities

289

118

Total liabilities accounted for at fair value

289

118

Level 1 [Member] | Annuity benefits accumulated [Member]

Liabilities:

Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities

Level 1 [Member] | Derivatives in long-term debt [Member]

Liabilities:

Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities

Level 1 [Member] | Other liabilities — derivatives [Member]

Liabilities:

Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities

Level 1 [Member] | U.S. Government and government agencies [Member]

Assets:

Available for sale (AFS) fixed maturities

100

164

Level 1 [Member] | States, municipalities and political subdivisions [Member]

Assets:

Available for sale (AFS) fixed maturities

Level 1 [Member] | Foreign government [Member]

Assets:

Available for sale (AFS) fixed maturities

Level 1 [Member] | Residential Mortgage Backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

Level 1 [Member] | Commercial Mortgage Backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

Level 1 [Member] | Asset-backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

Level 1 [Member] | All other corporate [Member]

Assets:

Available for sale (AFS) fixed maturities

Level 1 [Member] | Fixed maturities [Member]

Assets:

Available for sale (AFS) fixed maturities

150

200

Trading fixed maturities

Level 1 [Member] | Equity securities [Member]

Assets:

Equity securities

1,362

1,306

Level 1 [Member] | Other investments — derivatives [Member]

Assets:

Derivatives included in other investments and other assets

Level 1 [Member] | Other assets — derivatives [Member]

Assets:

Derivatives included in other investments and other assets

Level 2 [Member]

Assets:

Assets of managed investment entities (MIE)

3,712

2,903

Variable annuity assets (separate accounts)

^[1]

608

662

Total assets accounted for at fair value

35,685

33,741

Liabilities:

Liabilities of managed investment entities

3,468

Total liabilities accounted for at fair value

3,474

Level 2 [Member] | Annuity benefits accumulated [Member]

Liabilities:

Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities

Level 2 [Member] | Derivatives in long-term debt [Member]

Liabilities:

Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities

(2)

Level 2 [Member] | Other liabilities — derivatives [Member]

Liabilities:

Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities

Level 2 [Member] | U.S. Government and government agencies [Member]

Assets:

Available for sale (AFS) fixed maturities

192

174

Level 2 [Member] | States, municipalities and political subdivisions [Member]

Assets:

Available for sale (AFS) fixed maturities

6,767

6,647

Level 2 [Member] | Foreign government [Member]

Assets:

Available for sale (AFS) fixed maturities

154

194

Level 2 [Member] | Residential Mortgage Backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

3,305

4,142

Level 2 [Member] | Commercial Mortgage Backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

2,148

2,407

Level 2 [Member] | Asset-backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

4,464

3,661

Level 2 [Member] | All other corporate [Member]

Assets:

Available for sale (AFS) fixed maturities

13,634

12,078

Level 2 [Member] | Fixed maturities [Member]

Assets:

Available for sale (AFS) fixed maturities

30,664

29,303

Trading fixed maturities

241

254

Level 2 [Member] | Equity securities [Member]

Assets:

Equity securities

217

297

Level 2 [Member] | Other investments — derivatives [Member]

Assets:

Derivatives included in other investments and other assets

241

322

Level 2 [Member] | Other assets — derivatives [Member]

Assets:

Derivatives included in other investments and other assets

Level 3 [Member]

Assets:

Assets of managed investment entities (MIE)

Variable annuity assets (separate accounts)

^[1]

Total assets accounted for at fair value

1,636

1,355

Liabilities:

Liabilities of managed investment entities

2,701

Total liabilities accounted for at fair value

1,393

3,861

Level 3 [Member] | Annuity benefits accumulated [Member]

Liabilities:

Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities

1,369

1,160

Level 3 [Member] | Derivatives in long-term debt [Member]

Liabilities:

Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities

Level 3 [Member] | Other liabilities — derivatives [Member]

Liabilities:

Derivatives included in annuity benefits accumulated, long-term debt, and other liabilities

Level 3 [Member] | U.S. Government and government agencies [Member]

Assets:

Available for sale (AFS) fixed maturities

Level 3 [Member] | States, municipalities and political subdivisions [Member]

Assets:

Available for sale (AFS) fixed maturities

100

Level 3 [Member] | Foreign government [Member]

Assets:

Available for sale (AFS) fixed maturities

Level 3 [Member] | Residential Mortgage Backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

224

300

Level 3 [Member] | Commercial Mortgage Backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

Level 3 [Member] | Asset-backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

470

226

Level 3 [Member] | All other corporate [Member]

Assets:

Available for sale (AFS) fixed maturities

633

546

Level 3 [Member] | Fixed maturities [Member]

Assets:

Available for sale (AFS) fixed maturities

1,470

1,231

Trading fixed maturities

Level 3 [Member] | Equity securities [Member]

Assets:

Equity securities

140

Level 3 [Member] | Other investments — derivatives [Member]

Assets:

Derivatives included in other investments and other assets

$ 0

Level 3 [Member] | Other assets — derivatives [Member]

Assets:

Derivatives included in other investments and other assets

$ 0

[1]	Variable annuity liabilities equal the fair value of variable annuity assets.

Fair Value Measurements (Details 1) $ in Millions	Dec. 31, 2015 USD ($) stock	Dec. 31, 2014 USD ($) stock	Dec. 31, 2013 USD ($) stock
Perpetual preferred stocks [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of stocks transferred from Level 2 to Level 1 \| stock	5	14	15
Fair value of assets transferred from Level 2 to Level 1 \| $	$ 19	$ 96	$ 70
Number of stocks transferred from Level 1 to Level 2 \| stock	7	13	2
Fair value of assets transferred from Level 1 to Level 2 \| $	$ 31	$ 83	$ 10
Common stocks [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of stocks transferred from Level 2 to Level 1 \| stock	7	0	2
Fair value of assets transferred from Level 2 to Level 1 \| $	$ 80	$ 0	$ 35
Number of stocks transferred from Level 1 to Level 2 \| stock	0	7	0
Fair value of assets transferred from Level 1 to Level 2 \| $	$ 0	$ 26	$ 0
Redeemable preferred stocks [Member]
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	1	3
Fair value of assets transferred from Level 2 to Level 1 \| $	$ 11	$ 5	$ 21
Number of stocks transferred from Level 1 to Level 2 \| stock	0	0	0
Fair value of assets transferred from Level 1 to Level 2 \| $	$ 0	$ 0	$ 0

Fair Value Measurements (Details 2) - Embedded derivatives [Member]	12 Months Ended
	Dec. 31, 2015
Unobservable inputs used by management in determining fair value of embedded derivatives
Risk margin for uncertainty in cash flows	0.58%
Minimum [Member]
Unobservable inputs used by management in determining fair value of embedded derivatives
Adjustment for insurance subsidiary's credit risk	0.30%
Surrenders	3.00%
Partial surrenders	2.00%
Annuitizations	0.75%
Deaths	1.50%
Budgeted option costs	1.75%
Maximum [Member]
Unobservable inputs used by management in determining fair value of embedded derivatives
Adjustment for insurance subsidiary's credit risk	2.95%
Surrenders	18.00%
Partial surrenders	10.00%
Annuitizations	1.50%
Deaths	4.00%
Budgeted option costs	3.50%

Fair Value Measurements (Details 3) - USD ($) $ in Millions	12 Months Ended
Fair Value Measurements (Details 3) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
US Treasury and Government [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Financial assets, Beginning Balance	$ 15	$ 15	$ 20
Impact of accounting change	0
Total realized/unrealized gains (losses) included in Net income	0	0	(2)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	0	(3)
Purchases and issuances	0	0	0
Sales and settlements	0	0	0
Transfer into Level 3	0	0	0
Transfer out of Level 3	0	0	0
Sale of subsidiaries	0
Financial assets, Ending Balance	15	15	15
States, municipalities and political subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Financial assets, Beginning Balance	100	61	58
Impact of accounting change	0
Total realized/unrealized gains (losses) included in Net income	0	(1)	(1)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	(1)	0	(2)
Purchases and issuances	34	30	10
Sales and settlements	(1)	0	0
Transfer into Level 3	2	10	0
Transfer out of Level 3	(39)	0	(4)
Sale of subsidiaries	(6)
Financial assets, Ending Balance	89	100	61
Residential Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Financial assets, Beginning Balance	300	316	371
Impact of accounting change	0
Total realized/unrealized gains (losses) included in Net income	(11)	4	5
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	(1)	3	24
Purchases and issuances	0	13	6
Sales and settlements	(34)	(31)	(53)
Transfer into Level 3	86	111	86
Transfer out of Level 3	(88)	(116)	(123)
Sale of subsidiaries	(28)
Financial assets, Ending Balance	224	300	316
Commercial Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Financial assets, Beginning Balance	44	28	22
Impact of accounting change	0
Total realized/unrealized gains (losses) included in Net income	(1)	(1)	(1)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	(1)	0	(1)
Purchases and issuances	0	0	0
Sales and settlements	(2)	0	0
Transfer into Level 3	4	17	8
Transfer out of Level 3	(1)	0	0
Sale of subsidiaries	(4)
Financial assets, Ending Balance	39	44	28
Asset-backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Financial assets, Beginning Balance	226	75	253
Impact of accounting change	0
Total realized/unrealized gains (losses) included in Net income	1	3	4
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	(7)	(2)	(3)
Purchases and issuances	265	99	12
Sales and settlements	(56)	(39)	(57)
Transfer into Level 3	53	117	11
Transfer out of Level 3	(10)	(27)	(145)
Sale of subsidiaries	(2)
Financial assets, Ending Balance	470	226	75
All other corporate [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Financial assets, Beginning Balance	546	335	236
Impact of accounting change	0
Total realized/unrealized gains (losses) included in Net income	(5)	2	1
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	(9)	13	(14)
Purchases and issuances	161	102	113
Sales and settlements	(90)	(73)	(17)
Transfer into Level 3	41	172	24
Transfer out of Level 3	(5)	(5)	(8)
Sale of subsidiaries	(6)
Financial assets, Ending Balance	633	546	335
Equity securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Financial assets, Beginning Balance	93	31	37
Impact of accounting change	0
Total realized/unrealized gains (losses) included in Net income	(4)	1	(1)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	(9)	2	6
Purchases and issuances	77	62	53
Sales and settlements	0	(9)	(12)
Transfer into Level 3	0	22	0
Transfer out of Level 3	(17)	(16)	(52)
Sale of subsidiaries	0
Financial assets, Ending Balance	140	93	31
Assets of Managed Investment Entities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Financial assets, Beginning Balance	31	30	40
Impact of accounting change	0
Total realized/unrealized gains (losses) included in Net income	(11)	(3)	(5)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	0	0
Purchases and issuances	6	6	8
Sales and settlements	0	(2)	(7)
Transfer into Level 3	0	0	0
Transfer out of Level 3	0	0	(6)
Sale of subsidiaries	0
Financial assets, Ending Balance	$ 26	$ 31	$ 30

Fair Value Measurements (Details 4) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Liabilities of Managed Investment Entities [Member]

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Financial liabilities, Beginning Balance

$ (2,701)

$ (2,411)

$ (2,745)

Impact of accounting change

^[1]

2,701

Total realized/unrealized gains (losses) included in Net income

^[2]

(25)

^[3]

Total realized/unrealized gains (losses) included in other comprehensive income (loss)

Purchases and issuances

(817)

(728)

Sales and settlements

505

1,068

Transfer into Level 3

Transfer out of Level 3

Sale of subsidiaries

Financial liabilities, Ending Balance

(2,701)

(2,411)

Embedded derivatives [Member]

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Financial liabilities, Beginning Balance

(1,160)

(804)

(465)

Impact of accounting change

Total realized/unrealized gains (losses) included in Net income

(17)

^[4]

(182)

^[5]

(182)

^[6]

Total realized/unrealized gains (losses) included in other comprehensive income (loss)

Purchases and issuances

(257)

(221)

(192)

Sales and settlements

Transfer into Level 3

Transfer out of Level 3

Sale of subsidiaries

Financial liabilities, Ending Balance

$ (1,369)

$ (1,160)

$ (804)

[1]	The impact of implementing new guidance adopted in 2015, as discussed above and in Note A — “Accounting Policies — Managed Investment Entities.”
[2]	Total realized/unrealized gains (losses) included in net income includes gains of $50 million related to liabilities outstanding as of December 31, 2014. See Note H — “Managed Investment Entities.”
[3]	Total realized/unrealized gains (losses) included in net income includes gains of $7 million related to liabilities outstanding as of December 31, 2013. See Note H — “Managed Investment Entities.”
[4]	Total realized/unrealized gains (losses) included in net income for the embedded derivatives reflects losses related to the unlocking of actuarial assumptions of $28 million in 2015.
[5]	Total realized/unrealized gains (losses) included in net income for the embedded derivatives reflects gains related to the unlocking of actuarial assumptions of $58 million in 2014.
[6]	Total realized/unrealized gains (losses) included in net income for the embedded derivatives reflects gains related to the unlocking of actuarial assumptions of $2 million in 2013.

Fair Value Measurements (Details 5) - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Financial assets:

Cash and cash equivalents

$ 1,220

$ 1,343

$ 1,639

$ 1,705

Mortgage loans

1,067

1,117

Policy loans

201

228

Financial liabilities:

Long-term debt

1,020

1,061

Level 1 [Member]

Financial assets:

Cash and cash equivalents

1,220

1,343

Mortgage loans

Policy loans

Total financial assets not accounted for at fair value

1,220

1,343

Financial liabilities:

Annuity benefits accumulated

^[1]

Long-term debt

Total financial liabilities not accounted for at fair value

Level 2 [Member]

Financial assets:

Cash and cash equivalents

Mortgage loans

Policy loans

Total financial assets not accounted for at fair value

Financial liabilities:

Annuity benefits accumulated

^[1]

Long-term debt

1,105

1,106

Total financial liabilities not accounted for at fair value

1,105

1,106

Level 3 [Member]

Financial assets:

Cash and cash equivalents

Mortgage loans

1,074

1,124

Policy loans

201

228

Total financial assets not accounted for at fair value

1,275

1,352

Financial liabilities:

Annuity benefits accumulated

^[1]

25,488

23,187

Long-term debt

Total financial liabilities not accounted for at fair value

25,503

23,261

Carrying Value [Member]

Financial assets:

Cash and cash equivalents

1,220

1,343

Mortgage loans

1,067

1,117

Policy loans

201

228

Total financial assets not accounted for at fair value

2,488

2,688

Financial liabilities:

Annuity benefits accumulated

^[1]

26,422

23,561

Long-term debt

1,022

1,061

Total financial liabilities not accounted for at fair value

27,444

24,622

Fair Value [Member]

Financial assets:

Cash and cash equivalents

1,220

1,343

Mortgage loans

1,074

1,124

Policy loans

201

228

Total financial assets not accounted for at fair value

2,495

2,695

Financial liabilities:

Annuity benefits accumulated

^[1]

25,488

23,187

Long-term debt

1,120

1,180

Total financial liabilities not accounted for at fair value

$ 26,608

$ 24,367

[1]	Excludes $200 million and $203 million of life contingent annuities in the payout phase at December 31, 2015 and 2014, respectively.

Fair Value Measurements (Details Textual)
$ in Millions

12 Months Ended

Dec. 24, 2015

USD ($)

Dec. 31, 2015

USD ($)

professional

Dec. 31, 2014

USD ($)

Dec. 31, 2013

USD ($)

Fair Value Measurements (Textual) [Abstract]

AFG's internal investment professionals | professional

Level 3 assets as a percentage of total assets measured at fair value

4.00%

Percentage of level 3 assets that were priced using non-binding broker quotes

76.00%

Level 3 assets that were priced using non-binding broker quotes

$ 1,240

Total realized/unrealized gains (losses) included in net income on liabilities still outstanding

$ 50

$ 7

Life contingent annuities

$ 200

203

Maximum [Member]

Fair Value Measurements (Textual) [Abstract]

Percentage of internally developed Level 3 asset fair values to Shareholders' equity (are less than)

10.00%

Fixed-indexed annuities (embedded derivative) [Member]

Fair Value Measurements (Textual) [Abstract]

Fair value of derivatives in annuity benefits accumulated measured using a discounted cash flow approach

$ 1,370

Fixed-indexed annuities (embedded derivative) [Member] | Minimum [Member]

Fair Value Measurements (Textual) [Abstract]

Unobservable input surrenders used in Level 3 fair value determination

3.00%

Fixed-indexed annuities (embedded derivative) [Member] | Maximum [Member]

Fair Value Measurements (Textual) [Abstract]

Unobservable input surrenders used in Level 3 fair value determination

18.00%

Fixed-indexed annuities (embedded derivative), majority of future years [Member] | Minimum [Member]

Fair Value Measurements (Textual) [Abstract]

Unobservable input surrenders used in Level 3 fair value determination

5.00%

Fixed-indexed annuities (embedded derivative), majority of future years [Member] | Maximum [Member]

Fair Value Measurements (Textual) [Abstract]

Unobservable input surrenders used in Level 3 fair value determination

10.00%

Not Designated as Hedging Instrument [Member] | Annuity benefits [Member] | Fixed-indexed annuities (embedded derivative) [Member]

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

$ (28)

$ 58

$ 2

Run-off long-term care insurance business [Member]

Fair Value Measurements (Textual) [Abstract]

Investment securities proceeds received from the sale of the run-off long-term care insurance business

$ 11

Estimated net sale proceeds of the run-off long-term care insurance business

^[1]

Level 1 [Member] | Run-off long-term care insurance business [Member]

Fair Value Measurements (Textual) [Abstract]

Investment securities proceeds received from the sale of the run-off long-term care insurance business

Level 2 [Member] | Run-off long-term care insurance business [Member]

Fair Value Measurements (Textual) [Abstract]

Investment securities proceeds received from the sale of the run-off long-term care insurance business

Level 3 [Member] | Run-off long-term care insurance business [Member]

Fair Value Measurements (Textual) [Abstract]

Investment securities proceeds received from the sale of the run-off long-term care insurance business

$ 4

[1]	Includes the fair value of the potential additional consideration and capital maintenance agreement and is shown net of estimated expenses.

Investments (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Available for sale fixed maturities and equity securities
Fixed maturities, Available for sale, Amortized Cost	$ 31,565	$ 29,074
Available for sale (AFS) fixed maturities	32,284	30,734
Equity securities, Available for sale, Amortized Cost	1,469	1,283
Equity securities, Available for sale, Fair Value	1,553	1,501
U.S. Government and government agencies [Member]
Available for sale fixed maturities and equity securities
Fixed maturities, Available for sale, Amortized Cost	305	347
Available for sale (AFS) fixed maturities	307	353
Fixed maturities, Available for sale, Gross Unrealized, Gains	5	8
Fixed maturities, Available for sale, Gross Unrealized, Losses	(3)	(2)
States, municipalities and political subdivisions [Member]
Available for sale fixed maturities and equity securities
Fixed maturities, Available for sale, Amortized Cost	6,642	6,393
Available for sale (AFS) fixed maturities	6,856	6,747
Fixed maturities, Available for sale, Gross Unrealized, Gains	249	364
Fixed maturities, Available for sale, Gross Unrealized, Losses	(35)	(10)
Foreign government [Member]
Available for sale fixed maturities and equity securities
Fixed maturities, Available for sale, Amortized Cost	147	184
Available for sale (AFS) fixed maturities	154	194
Fixed maturities, Available for sale, Gross Unrealized, Gains	7	10
Fixed maturities, Available for sale, Gross Unrealized, Losses	0	0
Residential Mortgage Backed Securities [Member]
Available for sale fixed maturities and equity securities
Fixed maturities, Available for sale, Amortized Cost	3,236	4,046
Available for sale (AFS) fixed maturities	3,529	4,442
Fixed maturities, Available for sale, Gross Unrealized, Gains	308	411
Fixed maturities, Available for sale, Gross Unrealized, Losses	(15)	(15)
Commercial Mortgage Backed Securities [Member]
Available for sale fixed maturities and equity securities
Fixed maturities, Available for sale, Amortized Cost	2,111	2,294
Available for sale (AFS) fixed maturities	2,187	2,451
Fixed maturities, Available for sale, Gross Unrealized, Gains	77	158
Fixed maturities, Available for sale, Gross Unrealized, Losses	(1)	(1)
Asset-backed Securities [Member]
Available for sale fixed maturities and equity securities
Fixed maturities, Available for sale, Amortized Cost	4,961	3,872
Available for sale (AFS) fixed maturities	4,934	3,887
Fixed maturities, Available for sale, Gross Unrealized, Gains	25	37
Fixed maturities, Available for sale, Gross Unrealized, Losses	(52)	(22)
All other corporate [Member]
Available for sale fixed maturities and equity securities
Fixed maturities, Available for sale, Amortized Cost	14,163	11,938
Available for sale (AFS) fixed maturities	14,317	12,660
Fixed maturities, Available for sale, Gross Unrealized, Gains	422	751
Fixed maturities, Available for sale, Gross Unrealized, Losses	(268)	(29)
Fixed maturities [Member]
Available for sale fixed maturities and equity securities
Fixed maturities, Available for sale, Amortized Cost	31,565	29,074
Available for sale (AFS) fixed maturities	32,284	30,734
Fixed maturities, Available for sale, Gross Unrealized, Gains	1,093	1,739
Fixed maturities, Available for sale, Gross Unrealized, Losses	(374)	(79)
Common stocks [Member]
Available for sale fixed maturities and equity securities
Equity securities, Available for sale, Amortized Cost	1,051	885
Equity securities, Available for sale, Fair Value	1,118	1,087
Equity securities, Available for sale, Gross Unrealized, Gains	146	227
Equity securities, Available for sale, Gross Unrealized, Losses	(79)	(25)
Perpetual preferred stocks [Member]
Available for sale fixed maturities and equity securities
Equity securities, Available for sale, Amortized Cost	418	398
Equity securities, Available for sale, Fair Value	435	414
Equity securities, Available for sale, Gross Unrealized, Gains	23	21
Equity securities, Available for sale, Gross Unrealized, Losses	$ (6)	$ (5)

Investments (Details 1) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
U.S. Government and government agencies [Member]
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (1)	$ 0
Fair Value - Less than twelve months	$ 112	$ 39
Fair Value as % of Cost - Less than twelve months	99.00%	100.00%
Unrealized Loss - Twelve months or more	$ (2)	$ (2)
Fair Value - Twelve months or more	$ 15	$ 15
Fair Value as % of Cost - Twelve months or more	88.00%	88.00%
States, municipalities and political subdivisions [Member]
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (33)	$ (2)
Fair Value - Less than twelve months	$ 1,419	$ 222
Fair Value as % of Cost - Less than twelve months	98.00%	99.00%
Unrealized Loss - Twelve months or more	$ (2)	$ (8)
Fair Value - Twelve months or more	$ 50	$ 408
Fair Value as % of Cost - Twelve months or more	96.00%	98.00%
Residential Mortgage Backed Securities [Member]
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (7)	$ (4)
Fair Value - Less than twelve months	$ 438	$ 298
Fair Value as % of Cost - Less than twelve months	98.00%	99.00%
Unrealized Loss - Twelve months or more	$ (8)	$ (11)
Fair Value - Twelve months or more	$ 201	$ 209
Fair Value as % of Cost - Twelve months or more	96.00%	95.00%
Commercial Mortgage Backed Securities [Member]
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ 0	$ (1)
Fair Value - Less than twelve months	$ 95	$ 38
Fair Value as % of Cost - Less than twelve months	100.00%	97.00%
Unrealized Loss - Twelve months or more	$ (1)	$ 0
Fair Value - Twelve months or more	$ 28	$ 11
Fair Value as % of Cost - Twelve months or more	97.00%	100.00%
Asset-backed Securities [Member]
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (42)	$ (11)
Fair Value - Less than twelve months	$ 2,706	$ 1,389
Fair Value as % of Cost - Less than twelve months	98.00%	99.00%
Unrealized Loss - Twelve months or more	$ (10)	$ (11)
Fair Value - Twelve months or more	$ 455	$ 622
Fair Value as % of Cost - Twelve months or more	98.00%	98.00%
All other corporate [Member]
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (229)	$ (16)
Fair Value - Less than twelve months	$ 4,661	$ 588
Fair Value as % of Cost - Less than twelve months	95.00%	97.00%
Unrealized Loss - Twelve months or more	$ (39)	$ (13)
Fair Value - Twelve months or more	$ 165	$ 433
Fair Value as % of Cost - Twelve months or more	81.00%	97.00%
Fixed maturities [Member]
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (312)	$ (34)
Fair Value - Less than twelve months	$ 9,431	$ 2,574
Fair Value as % of Cost - Less than twelve months	97.00%	99.00%
Unrealized Loss - Twelve months or more	$ (62)	$ (45)
Fair Value - Twelve months or more	$ 914	$ 1,698
Fair Value as % of Cost - Twelve months or more	94.00%	97.00%
Common stocks [Member]
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (79)	$ (25)
Fair Value - Less than twelve months	$ 509	$ 260
Fair Value as % of Cost - Less than twelve months	87.00%	91.00%
Unrealized Loss - Twelve months or more	$ 0	$ 0
Fair Value - Twelve months or more	$ 0	$ 0
Fair Value as % of Cost - Twelve months or more	0.00%	0.00%
Perpetual preferred stocks [Member]
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (3)	$ (1)
Fair Value - Less than twelve months	$ 91	$ 45
Fair Value as % of Cost - Less than twelve months	97.00%	98.00%
Unrealized Loss - Twelve months or more	$ (3)	$ (4)
Fair Value - Twelve months or more	$ 22	$ 55
Fair Value as % of Cost - Twelve months or more	88.00%	93.00%

Investments (Details 2) - USD ($) $ in Millions	12 Months Ended
Investments (Details 2) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance at January 1	$ 170	$ 194	$ 192
Additional credit impairments on:
Previously impaired securities	1	0	0
Securities without prior impairments	2	0	3
Reductions due to:
Sales or redemptions	(9)	(24)	(1)
Sale of subsidiaries	(4)	0	0
Balance at December 31	$ 160	$ 170	$ 194

Investments (Details 3) - Fixed maturity [Member] $ in Millions	Dec. 31, 2015 USD ($)
Amortized Cost Basis, Fiscal Year Maturity [Abstract]
One year or less	$ 922
After one year through five years	5,208
After five years through ten years	11,007
After ten years	4,120
Fixed maturities amortized cost, Subtotal	21,257
ABS (average life of approximately 5 years)	4,961
MBS (average life of approximately 4 years)	5,347
Amortized Cost	31,565
Fair Value, Fiscal Year Maturity [Abstract]
One year or less	935
After one year through five years	5,417
After five years through ten years	11,054
After ten years	4,228
Fixed maturities fair value, Subtotal	21,634
ABS (average life of approximately 5 years)	4,934
MBS (average life of approximately 4 years)	5,716
Fair Value	$ 32,284
Fair Value Percent, Fiscal Year Maturity [Abstract]
One year or less	3.00%
After one year through five years	17.00%
After five years through ten years	34.00%
After ten years	13.00%
Fixed maturities fair value, Subtotal, Percent	67.00%
ABS (average life of approximately 5 years)	15.00%
MBS (average life of approximately 4 years)	18.00%
Fair value, Total, Percent	100.00%

Investments (Details 4) - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

^[1]

Dec. 31, 2012

Unrealized gain on:

Pretax

$ 517

$ 1,162

Deferred Tax and Amounts Attributable to Noncontrolling Interests

(185)

(419)

Net

332

^[1]

743

^[1]

$ 563

$ 823

Fixed maturities - annuity segment [Member]

Unrealized gain on:

Pretax

^[2]

523

1,157

Deferred Tax and Amounts Attributable to Noncontrolling Interests

^[2]

(183)

(405)

Net

^[2]

340

752

Fixed maturities - all other [Member]

Unrealized gain on:

Pretax

196

503

Deferred Tax and Amounts Attributable to Noncontrolling Interests

(72)

(185)

Net

124

318

Equity securities [Member]

Unrealized gain on:

Pretax

218

Deferred Tax and Amounts Attributable to Noncontrolling Interests

(30)

(79)

Net

139

Deferred policy acquisition costs - annuity segment [Member]

Unrealized gain on:

Pretax

(233)

(531)

Deferred Tax and Amounts Attributable to Noncontrolling Interests

186

Net

(151)

(345)

Annuity benefits accumulated [Member]

Unrealized gain on:

Pretax

(64)

(112)

Deferred Tax and Amounts Attributable to Noncontrolling Interests

Net

(42)

(73)

Life, accident and health reserves [Member]

Unrealized gain on:

Pretax

(104)

Deferred Tax and Amounts Attributable to Noncontrolling Interests

Net

(68)

Unearned revenue [Member]

Unrealized gain on:

Pretax

Deferred Tax and Amounts Attributable to Noncontrolling Interests

(4)

(11)

Net

$ 7

$ 20

[1]	Includes net unrealized gains of $51 million at December 31, 2015 compared to net unrealized gains of $58 million and $54 million at December 31, 2014 and 2013, related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.
[2]	Unrealized gains on fixed maturity investments supporting AFG’s annuity benefits accumulated.

Investments (Details 5) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Net Investment Income [Line Items]

Gross investment income

$ 1,651

$ 1,513

$ 1,363

Investment expenses

(18)

(12)

(17)

Net investment income

1,633

1,501

1,346

Fixed maturities [Member]

Net Investment Income [Line Items]

Gross investment income

1,461

1,352

1,241

Equity securities [Member]

Net Investment Income [Line Items]

Gross investment income

Equity Method Investments [Member]

Net Investment Income [Line Items]

Gross investment income

^[1]

Other [Member]

Net Investment Income [Line Items]

Gross investment income

$ 87

$ 77

$ 72

[1]	Prior to 2014, equity in the earnings of partnerships was not material and was included in realized gains (losses) on securities.

Investments (Details 6) - USD ($) $ in Millions	12 Months Ended
Investments (Details 6) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	$ 106	$ 88	$ 233
Realized - impairments	(125)	(36)	(12)
Fixed maturities [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	19	36	36
Realized - impairments	(43)	(15)	(5)
Change in unrealized	(941)	570	(945)
Equity securities [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	94	53	196
Realized - impairments	(94)	(26)	(5)
Change in unrealized	(134)	26	31
Mortgage Loans and Other Investments [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	(2)	1	2
Realized - impairments	(3)	0	(5)
Change in unrealized	0	0	0
Other, Including DPAC and Reserves on Annuity and Long-term Care [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	(5)	(2)	(1)
Realized - impairments	15	5	3
Change in unrealized	430	(314)	504
Total Pretax [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	106	88	233
Realized - impairments	(125)	(36)	(12)
Change in unrealized	(645)	282	(410)
Tax Effects [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	(38)	(32)	(82)
Realized - impairments	45	13	4
Change in unrealized	226	(99)	144
Noncontrolling Interests [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	(2)	(2)	(2)
Realized - impairments	2	1	0
Change in unrealized	8	(3)	6
Marketable Securities [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	66	54	149
Realized - impairments	(78)	(22)	(8)
Change in unrealized	$ (411)	$ 180	$ (260)

Investments (Details 7) - USD ($) $ in Millions	12 Months Ended
Investments (Details 7) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fixed maturities [Member]
Gross realized gains and losses on the sale of available for sale fixed maturity and equity security investments
Gross gains	$ 38	$ 36	$ 44
Gross losses	(7)	(2)	(5)
Equity securities [Member]
Gross realized gains and losses on the sale of available for sale fixed maturity and equity security investments
Gross gains	99	53	193
Gross losses	$ (5)	$ 0	$ 0

Investments (Details Textual) $ in Millions	12 Months Ended
Investments (Details Textual) $ in Millions	Dec. 31, 2015 USD ($) security	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
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	77.00%
Percentage (based on fair value) of available for sale fixed maturities that are in an unrealized loss position and rated investment grade	91.00%
Other than temporary impairment charges	$ 125	$ 36	$ 12
Average life of ABS	5 years
Average life of MBS	4 years
Residential Mortgage Backed Securities [Member]
Investment [Line Items]
Non-credit related portion of other-than-temporary impairment charges taken for securities still owned	$ 205	220
Fixed maturities, Gross Unrealized, Losses	(15)	(15)
Other than temporary impairment charges	7
Securities with non-credit other-than-temporary impairment charges [Member]
Investment [Line Items]
Gross Unrealized, Gains	134	151
Gross Unrealized, Losses	(6)	(8)
Fixed maturities [Member]
Investment [Line Items]
Fixed maturities, Gross Unrealized, Losses	$ (374)	(79)
Number of available for sale securities in an unrealized loss position \| security	1,285
Other than temporary impairment charges	$ 43	15	$ 5
Corporate bonds [Member]
Investment [Line Items]
Other than temporary impairment charges	31
Municipal bonds [Member]
Investment [Line Items]
Other than temporary impairment charges	$ 4
Common stocks [Member]
Investment [Line Items]
Number of available for sale securities in an unrealized loss position \| security	63
Other than temporary impairment charges	$ 94
Equity securities, Gross Unrealized, Losses	$ (79)	(25)
Preferred stocks [Member]
Investment [Line Items]
Number of available for sale securities in an unrealized loss position \| security	19
Equity securities, Gross Unrealized, Losses	$ (6)	$ (5)
Number of available for sale securities in an unrealized loss position for twelve months or longer [Member] \| Common stocks [Member]
Investment [Line Items]
Number of available for sale securities in an unrealized loss position \| security	0
Number of available for sale securities in an unrealized loss position for twelve months or longer [Member] \| Preferred stocks [Member]
Investment [Line Items]
Number of available for sale securities in an unrealized loss position \| security	3

Derivatives (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	$ 375	$ 499
Derivative liability, at fair value	1,376	1,173
MBS with embedded derivatives [Member] \| Fixed maturities [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	130	158
Public company warrants [Member] \| Equity securities [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	4	19
Fixed-indexed annuities (embedded derivative) [Member] \| Annuity benefits accumulated [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative liability, at fair value	1,369	1,160
Equity index call options [Member] \| Other investments [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	241	322
Reinsurance contracts (embedded derivative) [Member] \| Other liabilities [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative liability, at fair value	$ 7	$ 13

Derivatives (Details 1) - Not Designated as Hedging Instrument [Member] - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Derivative, Gain (Loss) on Derivative, Net [Abstract]

Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net

$ (83)

$ (3)

$ 36

MBS with embedded derivatives [Member] | Realized gains on securities [Member]

Derivative, Gain (Loss) on Derivative, Net [Abstract]

Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net

(16)

(3)

Public company warrants [Member] | Realized gains on securities [Member]

Derivative, Gain (Loss) on Derivative, Net [Abstract]

Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net

Interest rate swaptions [Member] | Realized gains on securities [Member]

Derivative, Gain (Loss) on Derivative, Net [Abstract]

Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net

(2)

Fixed-indexed annuities (embedded derivative) [Member] | Annuity benefits [Member]

Derivative, Gain (Loss) on Derivative, Net [Abstract]

Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net

^[1]

(17)

(182)

Equity index call options [Member] | Annuity benefits [Member]

Derivative, Gain (Loss) on Derivative, Net [Abstract]

Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net

(56)

181

210

Reinsurance contracts (embedded derivative) [Member] | Net investment income [Member]

Derivative, Gain (Loss) on Derivative, Net [Abstract]

Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net

$ 6

$ (3)

$ 7

[1]	The change in fair value of the embedded derivative includes losses related to unlocking of actuarial assumptions of $28 million in 2015 compared to gains related to unlocking of actuarial assumptions of $58 million in 2014 and $2 million in 2013.

Derivatives (Details Textual)	3 Months Ended		12 Months Ended
Derivatives (Details Textual)	Jun. 30, 2015 USD ($) swap	Sep. 30, 2014	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Sep. 30, 2015 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Indexed annuities as a percentage of annuity benefits			60.00%
Carrying value of collateral received to support purchased call options			$ 211,000,000	$ 285,000,000
Senior Notes [Member] \| 9-7/8% Senior Notes due June 2019 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate, percentage	9.875%		9.875%
AFG [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest rate description of fair value hedge activity			three-month LIBOR plus 8.099%
AFG [Member] \| Senior Notes [Member] \| 9-7/8% Senior Notes due June 2019 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate, percentage			9.875%
Not Designated as Hedging Instrument [Member] \| Fixed-indexed annuities (embedded derivative) [Member] \| Annuity benefits [Member]
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			$ (28,000,000)	58,000,000	$ 2,000,000
Designated as Hedging Instrument [Member] \| Interest rate swaps [Member] \| Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivative instrument outstanding			614,000,000	401,000,000
Designated as Hedging Instrument [Member] \| Interest rate swaps [Member] \| Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Number of interest rate swaps entered into during the period \| swap	2
Contract term of derivative instrument		5 years
Notional amount of derivative instrument outstanding						$ 431,000,000
Gain (loss) reclassified from AOCI into net investment income			6,000,000	2,000,000
Gain (loss) on cash flow hedge ineffectiveness recorded in Net Earnings			0	0
Designated as Hedging Instrument [Member] \| Interest rate swaps [Member] \| Cash Flow Hedges [Member] \| Other assets [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value (are less than in 2014)			2,000,000
Designated as Hedging Instrument [Member] \| Interest rate swaps [Member] \| Cash Flow Hedges [Member] \| Other assets [Member] \| Maximum [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value (are less than in 2014)				1,000,000
Designated as Hedging Instrument [Member] \| Interest rate swaps [Member] \| Cash Flow Hedges [Member] \| Other liabilities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value (are less than in 2014)				$ 0
Designated as Hedging Instrument [Member] \| Interest rate swaps [Member] \| Cash Flow Hedges [Member] \| Other liabilities [Member] \| Maximum [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value (are less than in 2014)			$ (1,000,000)
Designated as Hedging Instrument [Member] \| Interest rate swaps [Member] \| Cash Flow Hedges [Member] \| Five-year interest rate swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Contract term of derivative instrument	5 years
Notional amount of derivative instrument outstanding	$ 195,000,000
Designated as Hedging Instrument [Member] \| Interest rate swaps [Member] \| Cash Flow Hedges [Member] \| Fifteen-year interest rate swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Contract term of derivative instrument	15 years
Notional amount of derivative instrument outstanding	$ 132,000,000
Designated as Hedging Instrument [Member] \| Interest rate swaps [Member] \| Fair Value Hedge [Member] \| AFG [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Effective interest rate, percentage			8.611%
The net reduction in interest expense from interest rate swaps			$ 2,000,000
Designated as Hedging Instrument [Member] \| Interest rate swaps [Member] \| Fair Value Hedge [Member] \| AFG [Member] \| LIBOR [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Basis spread on variable interest rate			8.099%
Designated as Hedging Instrument [Member] \| Interest rate swaps [Member] \| Fair Value Hedge [Member] \| Long-term debt [Member] \| AFG [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value (are less than in 2014)			$ 2,000,000

Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
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	$ 821	$ 975	$ 550
Deferred policy acquisition costs and present value of future profits, additions	754	703	701
Deferred policy acquisition costs and present value of future profits, periodic amortization	(710)	(652)	(644)
Deferred policy acquisition costs and present value of future profits, annuity unlocking	35	(20)	2
Deferred policy acquisition costs and present value of future profits, change included in realized gains	9	3	2
Deferred policy acquisition costs and present value of future profits, sale of subsidiaries	(19)
Deferred policy acquisition costs and present value of future profits, foreign currency translation	(3)	(2)	(1)
Deferred policy acquisition costs and present value of future profits, change in unrealized	297	(186)	365
Deferred policy acquisition costs and present value of future profits, ending balance	1,184	821	975
Property and Casualty Insurance [Member]
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Deferred policy acquisition costs, beginning balance	221	211	204
Deferred policy acquisition costs, additions	519	497	468
Deferred policy acquisition costs, periodic amortization	(511)	(485)	(460)
Deferred policy acquisition costs, foreign currency translation	(3)	(2)	(1)
Deferred policy acquisition costs, ending balance	226	221	211
Annuity and Other [Member]
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Deferred policy acquisition costs, beginning balance	925	875	787
Deferred policy acquisition costs, additions	224	198	222
Deferred policy acquisition costs, periodic amortization	(162)	(130)	(140)
Deferred policy acquisition costs, annuity unlocking	31	(20)	4
Deferred policy acquisition costs, change included in realized gains	8	2	2
Deferred policy acquisition costs, sale of subsidiaries	(8)
Deferred policy acquisition costs, ending balance	1,018	925	875
Movement in Deferred Sales Inducements [Roll Forward]
Deferred sales inducements, beginning balance	132	149	170
Deferred sales inducements, additions	11	8	11
Deferred sales inducements, periodic amortization	(26)	(26)	(30)
Deferred sales inducements, annuity unlocking	4	0	(2)
Deferred sales inducements, change included in realized gains	1	1	0
Deferred sales inducements, sale of subsidiaries	(3)
Deferred sales inducements, ending balance	119	132	149
Movement in Present Value of Future Insurance Profits [Roll Forward]
Present value of future profits, beginning balance	74	85	99
Present value of future profits, periodic amortization	(11)	(11)	(14)
Present value of future profits, annuity unlocking			0
Present value of future profits, sale of subsidiaries	(8)
Present value of future profits, ending balance	55	74	85
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	(531)	(345)	(710)
Unrealized investment gains (losses), change in unrealized	297	(186)	365
Unrealized investment gains (losses), ending balance	(234)	(531)	(345)
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	600	764	346
Deferred policy acquisition costs and present value of future profits, additions	235	206	233
Deferred policy acquisition costs and present value of future profits, periodic amortization	(199)	(167)	(184)
Deferred policy acquisition costs and present value of future profits, annuity unlocking	35	(20)	2
Deferred policy acquisition costs and present value of future profits, change included in realized gains	9	3	2
Deferred policy acquisition costs and present value of future profits, sale of subsidiaries	(19)
Deferred policy acquisition costs and present value of future profits, change in unrealized	297	(186)	365
Deferred policy acquisition costs and present value of future profits, ending balance	958	600	764
Excluding Unrealized Gains [Member] \| Annuity and Other [Member]
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	1,131	1,109	1,056
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	$ 1,192	$ 1,131	$ 1,109

Deferred Policy Acquisition Costs (Details Textual) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Deferred Policy Acquisition Costs Disclosures [Abstract]
Accumulated amortization of present value of future profits	$ 220	$ 209
Approximate annual rate of decrease in present value of future profits during next five years	0.167

Managed Investment Entities (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Gains (losses) on change in fair value of assets/liabilities:

Assets

^[1]

$ (116)

$ (66)

$ 11

Liabilities

^[1]

(25)

Management fees paid to AFG

CLO earnings (losses) attributable to:

AFG shareholders

^[2]

(6)

Noncontrolling interests

^[2]

$ 0

$ (51)

$ (26)

[1]	Included in Revenues in AFG’s Statement of Earnings.
[2]	Included in Earnings before income taxes in AFG’s Statement of Earnings.

Managed Investment Entities (Details Textual) $ in Millions	12 Months Ended
Managed Investment Entities (Details Textual) $ in Millions	Dec. 31, 2015 USD ($) collateralizedloanobligation	Dec. 31, 2014 USD ($) collateralizedloanobligation	Dec. 31, 2013 USD ($) 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	100.00%
Number of collateralized loan obligation entities \| collateralizedloanobligation	13
Number of collateralized loan obligation entities formed during the period \| collateralizedloanobligation	2	2	2
Proceeds received by subsidiaries related to sales and redemptions of managed investment entities liabilities	$ 77
Proceeds received by subsidiaries related to redemptions of managed investment entities liabilities		$ 81	$ 142
Number of collateralized loan obligation entities that were substantially liquidated during the period \| collateralizedloanobligation		4	2
Difference between aggregate unpaid principal balance and fair value of CLOs' fixed maturity investments	214	$ 83
Difference between aggregate unpaid principal balance and fair value of CLOs' debt	205	131
Carrying amount of CLO loans in default	1	2
Aggregate unpaid principal balance of CLO loans in default	10	6
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Aggregate fair value of investment in collateralized loan obligations	266	289
New Collateralized Loan Obligation Entities [Member]
Variable Interest Entity [Line Items]
Face value of liabilities issued by managed investment entities on issuance date	869	917	$ 829
Face amount of managed investment entities liabilities purchased by subsidiaries at issuance date	81	94	85
Subordinated Debt Obligations [Member] \| Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Aggregate fair value of investment in collateralized loan obligations	$ 115
Senior Debt Obligations [Member]
Variable Interest Entity [Line Items]
Face amount of managed investment entities liabilities purchased by subsidiaries after issuance date		13	94
Amount paid by subsidiaries to purchase managed investment entities liabilities after issuance date		$ 13	$ 89

Goodwill and Other Intangibles (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2015	Jun. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Changes in the carrying value of goodwill by reporting segment
Goodwill, Beginning balance	$ 199		$ 199	$ 201	$ 185	$ 185
Goodwill, Acquired during period		$ 16		16
Goodwill, Sale of subsidiary	(2)		(2)
Goodwill, Ending balance	199		199	201
Property and Casualty [Member]
Changes in the carrying value of goodwill by reporting segment
Goodwill, Beginning balance	168		168	168	152	152
Goodwill, Acquired during period				16
Goodwill, Sale of subsidiary			0
Goodwill, Ending balance	168		168	168
Annuity [Member]
Changes in the carrying value of goodwill by reporting segment
Goodwill, Beginning balance	31		31	33	$ 33	$ 33
Goodwill, Acquired during period				0
Goodwill, Sale of subsidiary			(2)
Goodwill, Ending balance	$ 31		$ 31	$ 33

Goodwill and Other Intangibles (Details Textual) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2015	Jun. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill acquired during period		$ 16		$ 16
Goodwill decrease due to the sale of a subsidiary	$ (2)		$ (2)
Amortizable intangible assets related to property and casualty insurance acquisitions	41		41	49
Accumulated amortization	18		18	91
Amortization of intangible assets			$ 8	$ 19	$ 14
Weighted average useful life of finite-lived intangible assets acquired			5 years
Future amortization of intangibles in next year	8		$ 8
Future amortization of intangibles in year two	8		8
Future amortization of intangibles in year three	8		8
Future amortization of intangibles in year four	8		8
Future amortization of intangibles in year five	8		8
Future amortization of intangibles after year five	$ 1		$ 1

Long-Term Debt (Details) - USD ($)	Dec. 31, 2015	Nov. 30, 2015	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Summary of Carrying value of long-term debt
Long-term debt	$ 1,020,000,000			$ 1,061,000,000
Notes payable secured by real estate	0			59,000,000
AFG [Member]
Summary of Carrying value of long-term debt
Long-term debt	1,008,000,000			990,000,000
Subsidiaries [Member]
Summary of Carrying value of long-term debt
Long-term debt	12,000,000			71,000,000
Notes payable secured by real estate	0			59,000,000
National Interstate bank credit facility	12,000,000			12,000,000
Senior Notes [Member] \| 9-7/8% Senior Notes due June 2019 [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Senior Notes	350,000,000			350,000,000
Senior Notes [Member] \| 6-3/8% Senior Notes due June 2042 [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Senior Notes	230,000,000			230,000,000
Senior Notes [Member] \| 5-3/4% Senior Notes due August 2042 [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Senior Notes	125,000,000			125,000,000
Senior Notes [Member] \| 7% Senior Notes due September 2050 [Member]
Summary of Carrying value of long-term debt
Senior Notes			$ 132,000,000
Senior Notes [Member] \| 7% Senior Notes due September 2050 [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Senior Notes	0			132,000,000
Senior Debt Obligations [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Other long-term debt	3,000,000			3,000,000
Long-term debt	708,000,000			840,000,000
Subordinated Debentures [Member] \| 6-1/4% Subordinated Debentures due September 2054 [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Subordinated Debentures	150,000,000			150,000,000	$ 150,000,000
Subordinated Debentures [Member] \| 6% Subordinated Debentures due November 2055 [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Subordinated Debentures	150,000,000	$ 150,000,000		0
Subordinated Debt Obligations [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Long-term debt	$ 300,000,000			$ 150,000,000

Long-Term Debt (Details 1) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Summary showing division of total long-term debt
Obligations secured by real estate	$ 0	$ 59
Long-term debt	1,020	1,061
Senior unsecured obligations [Member]
Summary showing division of total long-term debt
Unsecured obligations	720	852
Subordinated unsecured obligations [Member]
Summary showing division of total long-term debt
Unsecured obligations	$ 300	$ 150

Long-Term Debt (Details Textual) - USD ($)		12 Months Ended
Long-Term Debt (Details Textual) - USD ($)	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Nov. 30, 2015	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014
Long-term Debt, Fiscal Year Maturity [Abstract]
Scheduled principal payments on debt in next year	$ 0	$ 0
Scheduled principal payments on debt in year two	12,000,000	12,000,000
Scheduled principal payments on debt in year three	0	0
Scheduled principal payments on debt in year four	350,000,000	350,000,000
Scheduled principal payments on debt in year five	0	0
Scheduled principal payments on debt after year five	658,000,000	658,000,000
Cash interest payments on long-term debt		75,000,000	$ 72,000,000	$ 71,000,000
AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Revolving credit line	500,000,000	500,000,000
Amount borrowed under AFG revolving credit facility	0	$ 0	0
Interest rate description of fair value hedge activity		three-month LIBOR plus 8.099%
Interest rate description for revolving credit facility		1.00% to 1.875% (currently 1.375%) over LIBOR
National Interstate [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Revolving credit line	100,000,000	$ 100,000,000
Loans payable under National Interstate bank credit facility	$ 12,000,000	$ 12,000,000
Interest rate description for revolving credit facility		six-month LIBOR plus 0.875% (currently 1.399%)
LIBOR [Member] \| AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	1.375%
LIBOR [Member] \| AFG [Member] \| Minimum [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	1.00%
LIBOR [Member] \| AFG [Member] \| Maximum [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	1.875%
LIBOR [Member] \| National Interstate [Member]
Debt Instrument [Line Items]
Effective interest rate, percentage	1.399%	1.399%
LIBOR [Member] \| National Interstate [Member] \| Maximum [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	0.875%
Interest rate swaps [Member] \| Fair Value Hedge [Member] \| Designated as Hedging Instrument [Member] \| AFG [Member]
Debt Instrument [Line Items]
Effective interest rate, percentage	8.611%	8.611%
Long-term Debt, Fiscal Year Maturity [Abstract]
Cash interest received on long-term debt affiliated with interest rate swap		$ 2,000,000
Interest rate swaps [Member] \| Fair Value Hedge [Member] \| Designated as Hedging Instrument [Member] \| LIBOR [Member] \| AFG [Member]
Debt Instrument [Line Items]
Basis spread on variable interest rate	8.099%	8.099%
Long-term debt [Member] \| Interest rate swaps [Member] \| Fair Value Hedge [Member] \| Designated as Hedging Instrument [Member] \| AFG [Member]
Debt Instrument [Line Items]
Net derivatives, at fair value	$ 2,000,000	$ 2,000,000
Senior Notes [Member] \| 9-7/8% Senior Notes due June 2019 [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on debt instruments	9.875%	9.875%					9.875%
Senior Notes [Member] \| 9-7/8% Senior Notes due June 2019 [Member] \| AFG [Member]
Debt Instrument [Line Items]
Senior Notes	$ 350,000,000	$ 350,000,000	350,000,000
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on debt instruments	9.875%	9.875%
Senior Notes [Member] \| 6-3/8% Senior Notes due June 2042 [Member] \| AFG [Member]
Debt Instrument [Line Items]
Senior Notes	$ 230,000,000	$ 230,000,000	230,000,000
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on debt instruments	6.375%	6.375%
Senior Notes [Member] \| 5-3/4% Senior Notes due August 2042 [Member] \| AFG [Member]
Debt Instrument [Line Items]
Senior Notes	$ 125,000,000	$ 125,000,000	125,000,000
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on debt instruments	5.75%	5.75%
Senior Notes [Member] \| 7% Senior Notes due September 2050 [Member]
Debt Instrument [Line Items]
Senior Notes						$ 132,000,000
Senior Notes [Member] \| 7% Senior Notes due September 2050 [Member] \| AFG [Member]
Debt Instrument [Line Items]
Senior Notes	$ 0	$ 0	132,000,000
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on debt instruments	7.00%	7.00%				7.00%
Subordinated Debt [Member] \| 6-1/4% Subordinated Debentures due September 2054 [Member] \| AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Subordinated Debentures	$ 150,000,000	$ 150,000,000	150,000,000					$ 150,000,000
Interest rate on debt instruments	6.25%	6.25%						6.25%
Subordinated Debt [Member] \| 6% Subordinated Debentures due November 2055 [Member] \| AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Subordinated Debentures	$ 150,000,000	$ 150,000,000	$ 0		$ 150,000,000
Interest rate on debt instruments	6.00%	6.00%			6.00%

Shareholders' Equity (Details)	Dec. 31, 2015 $ / shares shares
Voting Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, par value \| $ / shares	$ 0
Preferred Stock, shares authorized \| shares	12,500,000.0
Nonvoting Preferred Stock [Member]
Class of Stock [Line Items]
Preferred Stock, par value \| $ / shares	$ 0
Preferred Stock, shares authorized \| shares	12,500,000.0

Shareholders' Equity (Details 1) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding, Beginning balance	6,383,799
Granted	716,818
Exercised	(1,475,202)
Forfeited/Cancelled	(109,325)
Options outstanding, Ending balance	5,516,090	6,383,799
Options exercisable	2,988,920
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Average exercise price, Beginning balance	$ 36.92
Average exercise price, Granted	63.15	$ 56.47	$ 44.01
Average exercise price, Exercised	31.77
Average exercise price, Forfeited/Cancelled	49.34
Average exercise price, Ending balance	41.46	$ 36.92
Average exercise price, Options exercisable	$ 32.85
Average remaining contractual term, Options outstanding	5 years 10 months 24 days
Average remaining contractual term, Options exercisable	4 years 4 months 24 days
Aggregate intrinsic value, Options outstanding	$ 169
Aggregate intrinsic value, Options exercisable	$ 117

Shareholders' Equity (Details 2) - $ / shares	12 Months Ended
Shareholders' Equity (Details 2) - $ / shares	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock Options, Valuation Assumptions
Exercise price	$ 63.15	$ 56.47	$ 44.01
Expected dividend yield	1.60%	1.60%	1.80%
Expected volatility	25.00%	26.00%	39.00%
Expected term (in years)	7 years 3 months	7 years 3 months	7 years 3 months
Risk-free rate	1.88%	2.20%	1.36%
Grant date fair value	$ 15.29	$ 14.66	$ 15.10

Shareholders' Equity (Details 3) - Restricted Stock [Member]	12 Months Ended
	Dec. 31, 2015 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, Beginning balance \| shares	515,450
Granted \| shares	171,130
Vested \| shares	(163,312)
Forfeited \| shares	(17,570)
Outstanding, Ending balance \| shares	505,698
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	$ 43.32
Average grant date fair value, Granted \| $ / shares	63.15
Average grant date fair value, Vested \| $ / shares	38.36
Average grant date fair value, Forfeited \| $ / shares	49.28
Average grant date fair value, Outstanding, Ending balance \| $ / shares	$ 51.43

Shareholders' Equity (Details 4) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Components of accumulated other comprehensive income

Unrealized holding gains (losses) on securities arising during the period, pretax

$ (625)

$ 334

$ (188)

Unrealized holding gains (losses) on securities arising during the period, tax

219

(118)

Unrealized holding gains (losses) on securities arising during the period, net of tax

(406)

216

(122)

Unrealized holding gains (losses) on securities arising during the period, attributable to noncontrolling interests

(4)

Unrealized holding gains (losses) on securities arising during the period, attributable to shareholders

(397)

212

(118)

Reclassification adjustment for realized (gains) losses included in net earnings, pretax

^[1]

(52)

(222)

Reclassification adjustment for realized (gains) losses included in net earnings, tax

^[1]

(5)

Reclassification adjustment for realized (gains) losses included in net earnings, net of tax

(33)

(144)

Reclassification adjustment for realized (gains) losses included in net earnings, attributable to noncontrolling interests

^[1]

(1)

Reclassification adjustment for realized (gains) losses included in net earnings, attributable to shareholders

(32)

(142)

Reclassification for unrealized gains of subsidiaries sold, pretax

(34)

Reclassification for unrealized gains of subsidiaries sold, tax

Reclassification for unrealized gains of subsidiaries sold, net of tax

(22)

Reclassification for unrealized gains of subsidiaries sold, attributable to noncontrolling interests

Reclassification for unrealized gains of subsidiaries sold, attributable to shareholders

(22)

Accumulated other comprehensive income, net unrealized gains on securities, beginning balance

743

^[2]

563

^[2]

823

Other comprehensive income, net unrealized gains on securities, pretax

(645)

282

(410)

Other comprehensive income, net unrealized gains on securities, tax

226

(99)

144

Total net unrealized gains (losses) on securities

(419)

183

(266)

Other comprehensive income, net unrealized gains on securities, attributable to noncontrolling interests

(3)

Other comprehensive income, net unrealized gains on securities, attributable to shareholders

(411)

180

(260)

Accumulated other comprehensive income, net unrealized gains on securities, ending balance

^[2]

332

743

563

Accumulated other comprehensive income, net unrealized gains (losses) on cash flow hedges, beginning balance

Other comprehensive income, net unrealized gains (losses) on cash flow hedges, pretax

Other comprehensive income, net unrealized gains (losses) on cash flow hedges, tax

Other comprehensive income, net unrealized gains (losses) on cash flow hedges, net of tax

Other comprehensive income, net unrealized gains (losses) on cash flow hedges, attributable to noncontrolling interests

Other comprehensive income, net unrealized gains (losses) on cash flow hedges, attributable to shareholders

Accumulated other comprehensive income, net unrealized gains (losses) on cash flow hedges, ending balance

Accumulated other comprehensive income, foreign currency translation adjustments, beginning balance

(8)

Other comprehensive income, foreign currency translation adjustments, pretax

(9)

(8)

(13)

Other comprehensive income, foreign currency translation adjustments, tax

(5)

(1)

Other comprehensive income, foreign currency translation adjustments, net of tax

(14)

(9)

(13)

Other comprehensive income, foreign currency translation adjustments, attributable to noncontrolling interests

Other comprehensive income, foreign currency translation adjustments, attributable to shareholders

(14)

(9)

(13)

Accumulated other comprehensive income, foreign currency translation adjustments, ending balance

(22)

(8)

Accumulated other comprehensive income, pension and other postretirement plans adjustments, beginning balance

(8)

(4)

(6)

Other comprehensive income, pension and other postretirement plans adjustments, pretax

(6)

Other comprehensive income, pension and other postretirement plans adjustments, tax

(1)

Other comprehensive income, pension and other postretirement plans adjustments, net of tax

(4)

Other comprehensive income, pension and other postretirement plans adjustments, attributable to shareholders

(4)

Accumulated other comprehensive income, pension and other postretirement plans adjustments, ending balance

(7)

(8)

(4)

Accumulated other comprehensive income, total, beginning balance

727

560

831

Other comprehensive income, total, pretax

(652)

268

(420)

Other comprehensive income, total, tax

221

(98)

143

Other comprehensive income (loss), net of tax

(431)

170

(277)

Other comprehensive income, total, attributable to noncontrolling interests

(3)

Other comprehensive income, total, attributable to shareholders

(423)

167

(271)

Accumulated other comprehensive income, total, ending balance

$ 304

$ 727

$ 560

[1]	The reclassification adjustment out of net unrealized gains on securities affected the following lines in AFG’s Statement of Earnings: OCI component Affected line in the Statement of Earnings Pretax Realized gains on securities Tax Provision for income taxes Attributable to noncontrolling interests Net earnings (loss) attributable to noncontrolling interests
[2]	Includes net unrealized gains of $51 million at December 31, 2015 compared to net unrealized gains of $58 million and $54 million at December 31, 2014 and 2013, related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.

Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
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			$ 52	$ 38	$ 35
Cash received from the exercise of stock options			47	35	44
Tax benefit related to exercise of stock options			16	12	11
Total compensation expense related to stock incentive plans			27	25	36
Tax benefit related to compensation costs			8	8	12
Net of tax unrealized gains (losses) related to credit-only impaired securities			$ 51	58	54
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Common Stock vesting period			3 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Common Stock vesting period			4 years
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to equity-based awards that have yet to vest			$ 27
Weighted average period of cost expected to be recognized			3 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to equity-based awards that have yet to vest			$ 13
Weighted average period of cost expected to be recognized			2 years 7 months 6 days
Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock reserved for issuance under stock incentive plans			10,700,000.0
Annual Equity Bonus Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other benefit plans, shares	54,732	84,036
Common Stock issued, fair value per share	$ 62.55	$ 57.16
Capital surplus [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Tax benefit related to exercise of stock options			$ 12	$ 9	$ 7

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Earnings before income taxes (“EBT”)	$ 565	$ 626	$ 689
Income taxes at statutory rate	198	219	241
Effect of tax exempt interest	(27)	(25)	(21)
Effect of losses of managed investment entities	0	18	9
Effect of change in valuation allowance	23	7	1
Effect of subsidiaries not in AFG's tax return	2	1	2
Effect of other income tax reconciliation	(1)	0	4
Provision for income taxes as shown in the Statement of Earnings	$ 195	$ 220	$ 236
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Income taxes at statutory rate as a percentage of EBT	35.00%	35.00%	35.00%
Effect of tax exempt interest as a percentage of EBT	(5.00%)	(4.00%)	(3.00%)
Effect of losses of managed investment entities as a percentage of EBT	0.00%	3.00%	1.00%
Effect of change in valuation allowance as a percentage of EBT	4.00%	1.00%	0.00%
Effect of subsidiaries not in AFG's tax return as a percentage of EBT	1.00%	0.00%	0.00%
Effect of other income tax reconciliation as a percentage of EBT	0.00%	0.00%	1.00%
Provision for income taxes as shown in the Statement of Earnings as a percentage of EBT	35.00%	35.00%	34.00%

Income Taxes (Details 1) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current taxes:
Federal	$ 216	$ 265	$ 308
State	8	8	5
Deferred taxes:
Federal	(29)	(53)	(77)
Provision for income taxes as shown in the Statement of Earnings	$ 195	$ 220	$ 236

Income Taxes (Details 2) - Dec. 31, 2015
£ in Millions, $ in Millions

USD ($)

GBP (£)

U.S. [Member] | Expiring 2017 - 2022 [Member]

Operating and capital loss carryforwards [Line Items]

Operating loss carryforwards

$ 143

U.S. [Member] | Capital loss carryforward [Member] | Expiring 2020 [Member]

Operating and capital loss carryforwards [Line Items]

Capital loss carryforwards

United Kingdom [Member]

Operating and capital loss carryforwards [Line Items]

Operating loss carryforwards

^[1]

$ 133

£ 90

[1]	£90 million

Income Taxes (Details 3) - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Deferred tax assets:

Federal net operating loss carryforwards

$ 50

$ 51

Foreign underwriting losses

Capital loss carryforwards

Insurance claims and reserves

713

757

Employee benefits

115

107

Other, net

Total deferred tax assets before valuation allowance

1,016

986

Valuation allowance against deferred tax assets

(130)

(109)

Total deferred tax assets

886

877

Deferred tax liabilities:

Subsidiaries not in AFG’s tax return

^[1]

(63)

(61)

Investment securities

(258)

(663)

Deferred policy acquisition costs

(336)

(178)

Total deferred tax liabilities

(657)

(902)

Net deferred tax asset (liability)

229

Net deferred tax asset (liability)

(25)

Excluding Unrealized Gains [Member]

Deferred tax assets:

Federal net operating loss carryforwards

Foreign underwriting losses

Capital loss carryforwards

Insurance claims and reserves

691

682

Employee benefits

115

107

Other, net

Total deferred tax assets before valuation allowance

998

922

Valuation allowance against deferred tax assets

(130)

(109)

Total deferred tax assets

868

813

Deferred tax liabilities:

Subsidiaries not in AFG’s tax return

^[1]

(63)

(61)

Investment securities

(6)

Deferred policy acquisition costs

(418)

(364)

Total deferred tax liabilities

(458)

(431)

Net deferred tax asset (liability)

410

382

Impact of Unrealized Gains [Member]

Deferred tax assets:

Federal net operating loss carryforwards

Foreign underwriting losses

Capital loss carryforwards

Insurance claims and reserves

Employee benefits

Other, net

(4)

(11)

Total deferred tax assets before valuation allowance

Valuation allowance against deferred tax assets

Total deferred tax assets

Deferred tax liabilities:

Subsidiaries not in AFG’s tax return

^[1]

Investment securities

(281)

(657)

Deferred policy acquisition costs

186

Total deferred tax liabilities

(199)

(471)

Net deferred tax asset (liability)

$ (181)

$ (407)

[1]	Related to National Interstate Corporation, a 51%-owned subsidiary.

Income Taxes (Details 4) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
Income Taxes (Details 4) - USD ($) $ in Millions	Sep. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Progression of the liability for uncertain tax positions, excluding interest and penalties
Balance at January 1		$ 0	$ 19	$ 18
Additions for tax positions of prior years		1	0	0
Reductions for tax positions of prior years		0	(8)	0
Additions for tax positions of current year		0	0	1
Settlements	$ (11)	0	(11)	0
Balance at December 31		$ 1	$ 0	$ 19

Income Taxes (Details Textual)
£ in Millions, $ in Millions

3 Months Ended

12 Months Ended

Sep. 30, 2014

USD ($)

Dec. 31, 2015

USD ($)

Dec. 31, 2014

USD ($)

Dec. 31, 2013

USD ($)

Dec. 31, 2015

GBP (£)

Income Tax Reconciliation [Line Items]

Statutory rate of income taxes

35.00%

Income (losses) subject to tax in foreign jurisdictions

$ (66)

$ (4)

$ 4

Percentage ownership of National Interstate

51.00%

Operating loss carryforwards, valuation allowance

$ 50

Decrease in AFG's liability for uncertain tax positions

$ (19)

Decrease in AFG's liability for uncertain tax positions, settlements

(11)

The portion of the reduction in the liability for uncertain tax positions that favorably impacted the effective tax rate

Change in AFG's liability for uncertain tax positions of current year, uncertainty as to timing of tax return inclusion of income related to certain securities

Change in AFG's liability for uncertain tax positions of prior year

(8)

Income tax penalties accrued

Cash payments for income taxes

234

347

204

AFG [Member]

Income Tax Reconciliation [Line Items]

Interest included in tax provision

$ (1)

Decrease in related accrued interest

$ 1

Charge for valuation allowance [Member]

Income Tax Reconciliation [Line Items]

Charge for valuation allowance against deferred tax assets

Maximum [Member] | AFG [Member]

Income Tax Reconciliation [Line Items]

Interest included in tax provision

Decrease in related accrued interest

United Kingdom [Member]

Income Tax Reconciliation [Line Items]

Operating loss carryforwards

^[1]

133

£ 90

Timing of recognition of investment income [Member]

Income Tax Reconciliation [Line Items]

Decrease in AFG's liability for uncertain tax positions

(17)

Deductibility of certain financing expenses [Member]

Income Tax Reconciliation [Line Items]

Decrease in AFG's liability for uncertain tax positions

$ (2)

Property and Casualty Insurance [Member]

Income Tax Reconciliation [Line Items]

Change in AFG’s liability for uncertain tax positions of the current year due to the uncertainty in state taxation

$ 1

[1]	£90 million

Contingencies (Details) - USD ($) $ in Millions		3 Months Ended
Contingencies (Details) - USD ($) $ in Millions	Dec. 24, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2015
Property and Casualty Group [Member]
Loss Contingencies [Line Items]
Increase in asbestos and environmental reserves		$ 67	$ 24	$ 54
Liability for asbestos and environmental reserves					$ 426
Reinsurance recoverables on asbestos and environmental reserves, net of allowance					99
Former railroad and manufacturing operations [Member]
Loss Contingencies [Line Items]
Increase in environmental and other reserves		$ 12	$ 6	$ 22
American Premier and its subsidiaries [Member]
Loss Contingencies [Line Items]
Liability for environmental and other claims					77
GAFRI [Member]
Loss Contingencies [Line Items]
Liability for environmental and other claims					$ 11
Run-off long-term care insurance business [Member]
Loss Contingencies [Line Items]
Contingent capital support agreement term	5 years

Quarterly Operating Results (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Statement of Earnings
Revenues	$ 1,626	$ 1,684	$ 1,541	$ 1,294	$ 1,549	$ 1,581	$ 1,392	$ 1,211	$ 6,145	$ 5,733	$ 5,103
Net earnings, including noncontrolling interests	130	66	149	25	125	91	83	107	370	406	453
Net earnings attributable to shareholders	$ 129	$ 63	$ 141	$ 19	$ 127	$ 116	$ 106	$ 103	$ 352	$ 452	$ 471
Earnings Attributable to Shareholders per Common Share:
Basic (USD per share)	$ 1.48	$ 0.72	$ 1.60	$ 0.22	$ 1.44	$ 1.30	$ 1.18	$ 1.15	$ 4.02	$ 5.07	$ 5.27
Diluted (USD per share)	$ 1.45	$ 0.71	$ 1.57	$ 0.21	$ 1.41	$ 1.28	$ 1.15	$ 1.13	$ 3.94	$ 4.97	$ 5.16
Average number of Common Shares:
Basic (shares)	87.4	87.5	87.7	87.6	87.9	89.0	89.6	89.6	87.6	89.0	89.3
Diluted (shares)	89.2	89.3	89.5	89.4	89.8	90.9	91.6	91.6	89.4	91.0	91.2

Quarterly Operating Results (Unaudited) (Details 1) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Realized gains (losses) and favorable (adverse) development on unpaid loss and loss adjustment expenses
Realized Gains (Losses) on Securities and Subsidiaries	$ (25)	$ (11)	$ (1)	$ (143)	$ 8	$ 13	$ 12	$ 19	$ (180)	$ 52
Prior Year Development Favorable (Adverse)	$ 5	$ (55)	$ 10	$ 7	$ (10)	$ (13)	$ (14)	$ 31	$ (33)	$ (6)

Quarterly Operating Results (Unaudited) (Details Textual) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 24, 2015

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Quarterly Operating Results (Unaudited) [Line Items]

Adverse prior year development in the property and transportation sub-segment

$ 5

$ (55)

$ 10

$ 7

$ (10)

$ (13)

$ (14)

$ 31

$ (33)

$ (6)

Other income

243

122

$ 108

Property and Casualty Insurance [Member]

Quarterly Operating Results (Unaudited) [Line Items]

Special charges to increase asbestos and environmental reserves

Former Railroad and Manufacturing Operations [Member]

Quarterly Operating Results (Unaudited) [Line Items]

Special charges to increase asbestos and environmental reserves

$ 12

$ 6

Specialty Property and transportation [Member]

Quarterly Operating Results (Unaudited) [Line Items]

Adverse prior year development in the property and transportation sub-segment

$ (22)

Run-off long-term care insurance business [Member]

Quarterly Operating Results (Unaudited) [Line Items]

Realized loss on subsidiaries

$ (166)

(4)

$ (162)

(166)

Property and Casualty Insurance [Member]

Quarterly Operating Results (Unaudited) [Line Items]

Other income

^[1]

$ 78

$ 9

$ 15

Property and Casualty Insurance [Member] | Real Estate Investment [Member]

Quarterly Operating Results (Unaudited) [Line Items]

Other income

$ 15

$ 51

[1]	Includes pretax income of $51 million (before noncontrolling interest) from the sale of the Le Pavillon Hotel in the second quarter of 2015 and $15 million from the sale of an apartment property in the fourth quarter of 2015.

Insurance (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Analysis of changes in the liability for losses and loss adjustment expenses, net of reinsurance

Balance at beginning of period

$ 5,645

$ 4,288

$ 5,645

$ 4,288

$ 4,129

Provision for losses and LAE occurring in the current year

2,662

2,488

2,055

Net increase (decrease) in the provision for claims of prior years:

Provision for claims of prior years related to special A&E charges and other

$ (5)

$ 55

$ (10)

$ (7)

$ 10

$ 13

$ 14

$ (31)

Total losses and LAE incurred

2,695

2,494

2,040

Payments for losses and LAE of:

Current year

(828)

(789)

(739)

Prior years

(1,575)

(1,340)

(1,131)

Total payments

(2,403)

(2,129)

(1,870)

Reserves of businesses acquired

1,028

^[1]

Foreign currency translation and other

(11)

(36)

(11)

Balance at end of period

5,926

5,645

5,926

5,645

4,288

Add back reinsurance recoverables, net of allowance

2,201

2,227

2,201

2,227

2,122

Gross unpaid losses and LAE included in the balance sheet

$ 8,127

$ 7,872

8,127

7,872

6,410

Special A&E Charges [Member]

Net increase (decrease) in the provision for claims of prior years:

Provision for claims of prior years related to special A&E charges and other

Other [Member]

Net increase (decrease) in the provision for claims of prior years:

Provision for claims of prior years related to special A&E charges and other

$ (34)

$ (18)

$ (69)

[1]	Reflects the acquisition of Summit in April 2014 (see Note B — “Acquisitions and Sale of Businesses”).

Insurance (Details 1) - USD ($) $ in Millions	12 Months Ended
Insurance (Details 1) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property and casualty companies [Member]
Statutory information
Net Earnings	$ 408	$ 318	$ 332
Capital and Surplus	2,488	2,286
Life insurance companies [Member]
Statutory information
Net Earnings	399	349	$ 294
Capital and Surplus	$ 1,721	$ 1,714

Insurance (Details 2) - Property and casualty insurance [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Effects of Reinsurance [Line Items]
Direct premiums written	$ 5,713	$ 5,387	$ 4,744
Reinsurance assumed	119	90	61
Reinsurance ceded	(1,505)	(1,457)	(1,464)
Net written premiums	4,327	4,020	3,341
Direct premiums earned	5,613	5,195	4,684
Reinsurance assumed	105	75	45
Reinsurance ceded	(1,494)	(1,392)	(1,525)
Net earned premiums	4,224	3,878	3,204
Reinsurance recoveries	$ 936	$ 895	$ 1,255

Insurance (Details 3) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Insurance [Abstract]
Expected death and annuitization	$ 214	$ 213
Guaranteed withdrawal benefits	203	151
Accrued persistency and premium bonuses	$ 11	$ 14

Insurance (Details Textual) - USD ($)		12 Months Ended
Insurance (Details Textual) - USD ($)	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Insurance [Line Items]
Carrying value of cash and securities owned by U.S.-based insurance subsidiaries on deposit		$ 1,000,000,000
Carrying value of cash and securities owned by insurance subsidiaries on deposit in support of underwriting activities at Lloyd's		203,000,000
Undrawn letters of credit		307,000,000
Undrawn letters of credit, collateralized		$ 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		$ 18,000,000	$ 19,000,000
Long-term care insurance reserves, net of reinsurance recoverables		34,000,000
Investment in Federal Home Loan Bank capital stock		41,000,000
Proceeds received under funding agreements with the Federal Home Loan Bank		345,000,000
Advances from Federal Home Loan Bank		$ 785,000,000	440,000,000
Description of variable rate basis		LIBOR
Estimated fair value of commercial mortgage-backed securities held as collateral by the Federal Home Loan Bank		$ 912,000,000
Interest on advances from Federal Home Loan Bank		3,000,000	1,000,000	$ 1,000,000
Maximum amount of dividends available to be paid by insurance subsidiaries to AFG without prior approval of regulatory authorities		809,000,000
Dividends on Common Stock		(178,000,000)	(169,000,000)	(161,000,000)
Catastrophe bonds		0	59,000,000
Aggregate guaranteed minimum death benefit value on variable annuity polices in force		27,000,000	23,000,000
Minimum [Member]
Insurance [Line Items]
Dividends payments without violating the most restrictive debt covenants, minimum		$ 1,000,000,000
Minimum [Member] \| LIBOR [Member]
Insurance [Line Items]
FHLB advances, basis spread on variable rate		0.02%
Maximum [Member]
Insurance [Line Items]
Death benefits paid in excess of the variable annuity account balances (are less than in 2013, 2014 and 2015)		$ 1,000,000	1,000,000	1,000,000
Maximum [Member] \| LIBOR [Member]
Insurance [Line Items]
FHLB advances, basis spread on variable rate		0.49%
Average [Member] \| LIBOR [Member]
Insurance [Line Items]
FHLB advances, basis spread on variable rate		0.58%
Property and Casualty Insurance [Member]
Insurance [Line Items]
Special charges to increase asbestos and environmental reserves		$ 67,000,000	24,000,000	54,000,000
Catastrophe Bonds [Member]
Insurance [Line Items]
Catastrophe reinsurance coverage, excess retention amount	$ 95,000,000
Catastrophe reinsurance coverage, retention amount		119,000,000
Catastrophe reinsurance coverage, annual cost		5,000,000
Life insurance [Member]
Insurance [Line Items]
Life insurance in force, ceded premiums		11,190,000,000	12,700,000,000
Life insurance in force, direct premiums		14,670,000,000	16,710,000,000
Life written premiums ceded		40,000,000	41,000,000	44,000,000
Reinsurance recoveries		$ 50,000,000	59,000,000	$ 58,000,000
Run-off Long-term Care and Life [Member]
Insurance [Line Items]
Pretax charge on closed block of long-term care insurance			$ 0
Unaffiliated Entity [Member] \| Catastrophe Bonds [Member]
Insurance [Line Items]
Catastrophe bonds	$ 95,000,000

Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
Additional Information (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Additional Information (Textual) [Abstract]
Total rental expense	$ 70	$ 65	$ 57
Operating lease future minimum payments due in next year	64
Operating lease future minimum payments due in year two	60
Operating lease future minimum payments due in year three	51
Operating lease future minimum payments due in year four	43
Operating lease future minimum payments due in year five	36
Operating lease future minimum payments due after year five	148
Commitments to fund limited partnerships	410
Retirement and employee savings plan expense	34	30	32
Allowance for reinsurance recoverables [Member]
Allowance for reinsurance recoverables [Line Items]
Aggregate allowance for losses on reinsurance recoverables	22	25
Reinsurance recoverable write-offs	3	6
Charges for possible losses on reinsurance recoverables	$ 0	$ 4	$ 1

Condensed Financial Information of Parent Company (Details) - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Assets:

Cash and cash equivalents

$ 1,220

$ 1,343

$ 1,639

$ 1,705

Total assets

49,859

47,535

42,087

Liabilities and Equity:

Long-term debt

1,020

1,061

Shareholders’ equity

4,592

4,879

Total liabilities and equity

49,859

47,535

AFG [Member]

Assets:

Cash and cash equivalents

189

292

$ 523

$ 279

Investment in securities

Investment in subsidiaries

^[1]

5,439

5,638

Other investments

Other assets

106

103

Total assets

5,799

6,093

Liabilities and Equity:

Long-term debt

1,008

990

Other liabilities

199

224

Shareholders’ equity

4,592

4,879

Total liabilities and equity

$ 5,799

$ 6,093

[1]	Investment in subsidiaries includes intercompany receivables and payables.

Condensed Financial Information of Parent Company (Details 1) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Total revenues	$ 1,626	$ 1,684	$ 1,541	$ 1,294	$ 1,549	$ 1,581	$ 1,392	$ 1,211	$ 6,145	$ 5,733	$ 5,103
Costs and Expenses:
Other expenses									337	281	326
Total costs and expenses									5,580	5,107	4,414
Earnings before income taxes									565	626	689
Provision for income taxes									195	220	236
Net Earnings Attributable to Shareholders	$ 129	$ 63	$ 141	$ 19	$ 127	$ 116	$ 106	$ 103	352	452	471
AFG [Member]
Revenues:
Dividends from subsidiaries									311	480	606
Equity in undistributed earnings of subsidiaries									386	332	260
Investment and other income									4	5	8
Total revenues									701	817	874
Costs and Expenses:
Interest charges on intercompany borrowings									9	10	10
Interest charges on other borrowings									72	69	67
Other expenses									73	66	90
Total costs and expenses									154	145	167
Earnings before income taxes									547	672	707
Provision for income taxes									195	220	236
Net Earnings Attributable to Shareholders									$ 352	$ 452	$ 471

Condensed Financial Information of Parent Company (Details 2) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Other Comprehensive Income [Abstract]
Net earnings attributable to shareholders	$ 129	$ 63	$ 141	$ 19	$ 127	$ 116	$ 106	$ 103	$ 352	$ 452	$ 471
Other comprehensive income (loss), net of tax									(423)	167	(271)
Comprehensive income (loss) attributable to shareholders									(71)	619	200
AFG [Member]
Statement of Other Comprehensive Income [Abstract]
Net earnings attributable to shareholders									352	452	471
Other comprehensive income (loss), net of tax									(423)	167	(271)
Comprehensive income (loss) attributable to shareholders									$ (71)	$ 619	$ 200

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Financial Information of Parent Company (Details 3) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Activities:
Net earnings attributable to shareholders	$ 129	$ 63	$ 141	$ 19	$ 127	$ 116	$ 106	$ 103	$ 352	$ 452	$ 471
Adjustments:
Net cash provided by operating activities									1,357	1,222	760
Investing Activities:
Net cash used in investing activities									(4,577)	(3,619)	(2,915)
Financing Activities:
Additional long-term borrowings									145	145	0
Reductions of long-term debt									(192)	(2)	(40)
Issuances of Common Stock									61	47	54
Repurchases of Common Stock									(126)	(191)	(70)
Cash dividends paid on Common Stock									(176)	(167)	(160)
Net cash provided by (used in) financing activities									3,097	2,101	2,089
Net Change in Cash and Cash Equivalents									(123)	(296)	(66)
Cash and cash equivalents at beginning of year				1,343				1,639	1,343	1,639	1,705
Cash and cash equivalents at end of year	1,220				1,343				1,220	1,343	1,639
AFG [Member]
Operating Activities:
Net earnings attributable to shareholders									352	452	471
Adjustments:
Equity in net earnings of subsidiaries									(451)	(545)	(579)
Dividends from subsidiaries									280	451	543
Other operating activities, net									(19)	14	(7)
Net cash provided by operating activities									162	372	428
Investing Activities:
Capital contributions to subsidiaries									(27)	(431)	(38)
Returns of capital from subsidiaries									1	0	36
Purchases of investments, property and equipment									(10)	(1)	(2)
Proceeds from sales of investments, property and equipment									3	0	0
Net cash used in investing activities									(33)	(432)	(4)
Financing Activities:
Additional long-term borrowings									145	145	0
Reductions of long-term debt									(132)	0	0
Issuances of Common Stock									57	42	50
Repurchases of Common Stock									(126)	(191)	(70)
Cash dividends paid on Common Stock									(176)	(167)	(160)
Net cash provided by (used in) financing activities									(232)	(171)	(180)
Net Change in Cash and Cash Equivalents									(103)	(231)	244
Cash and cash equivalents at beginning of year				$ 292				$ 523	292	523	279
Cash and cash equivalents at end of year	$ 189				$ 292				$ 189	$ 292	$ 523

Supplementary Insurance Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Supplementary Insurance Information, by Segment [Line Items]
Deferred policy acquisition costs	$ 1,184	$ 821	$ 975
Reserves for future policy benefits, claims and unpaid losses and LAE	35,454	33,811	29,362
Unearned premiums	2,060	1,956	1,757
Net earned premiums	4,328	3,986	3,318
Net investment income	1,633	1,501	1,346
Benefits, claims, losses and settlement expenses	3,558	3,306	2,731
Amortization of deferred policy acquisition costs	653	646	610
Other operating expenses	1,369	1,155	1,073
Net written premiums (excluding life)	4,400	4,094	3,417
Property and Casualty Insurance [Member]
Supplementary Insurance Information, by Segment [Line Items]
Deferred policy acquisition costs	226	221	211
Reserves for future policy benefits, claims and unpaid losses and LAE	8,127	7,872	6,410
Unearned premiums	2,060	1,956	1,757
Net earned premiums	4,224	3,878	3,204
Net investment income	319	294	263
Benefits, claims, losses and settlement expenses	2,695	2,494	2,040
Amortization of deferred policy acquisition costs	511	485	460
Other operating expenses	839	746	607
Net written premiums (excluding life)	4,327	4,020	3,341
Annuity [Member]
Supplementary Insurance Information, by Segment [Line Items]
Deferred policy acquisition costs	934	564	723
Reserves for future policy benefits, claims and unpaid losses and LAE	26,622	23,764	20,944
Net investment income	1,224	1,136	1,034
Benefits, claims, losses and settlement expenses	732	648	531
Amortization of deferred policy acquisition costs	136	155	144
Other operating expenses	123	102	113
Run-off Long-term Care and Life [Member]
Supplementary Insurance Information, by Segment [Line Items]
Deferred policy acquisition costs	24	36	41
Reserves for future policy benefits, claims and unpaid losses and LAE	705	2,175	2,008
Net earned premiums	104	108	114
Net investment income	80	82	76
Benefits, claims, losses and settlement expenses	131	164	160
Amortization of deferred policy acquisition costs	6	6	6
Other operating expenses	37	35	39
Net written premiums (excluding life)	73	74	76
Other [Member]
Supplementary Insurance Information, by Segment [Line Items]
Net investment income	10	(11)	(27)
Other operating expenses	$ 370	$ 272	$ 314