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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2016	May 01, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	AMERICAN FINANCIAL GROUP INC
Entity Central Index Key	0001042046
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		86,706,813

Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Assets:
Cash and cash equivalents	$ 1,231	$ 1,220
Investments:
Fixed maturities, available for sale at fair value (amortized cost — $32,749 and $31,565)	33,921	32,284
Fixed maturities, trading at fair value	249	254
Equity securities, available for sale at fair value (cost — $1,475 and $1,469)	1,536	1,553
Equity securities, trading at fair value	112	166
Mortgage loans	1,097	1,067
Policy loans	198	201
Real estate and other investments	1,093	991
Total cash and investments	39,437	37,736
Recoverables from reinsurers	2,561	2,636
Prepaid reinsurance premiums	475	480
Agents’ balances and premiums receivable	936	937
Deferred policy acquisition costs	1,055	1,184
Assets of managed investment entities	3,906	4,047
Other receivables	693	820
Variable annuity assets (separate accounts)	595	608
Other assets	1,181	1,190
Goodwill	199	199
Total assets	51,038	49,837
Liabilities and Equity:
Unpaid losses and loss adjustment expenses	8,108	8,127
Unearned premiums	2,051	2,060
Annuity benefits accumulated	27,812	26,622
Life, accident and health reserves	708	705
Payable to reinsurers	501	591
Liabilities of managed investment entities	3,656	3,781
Long-term debt	998	998
Variable annuity liabilities (separate accounts)	595	608
Other liabilities	1,672	1,575
Total liabilities	46,101	45,067
Shareholders’ equity:
Common Stock, no par value — 200,000,000 shares authorized — 86,966,290 and 87,474,452 shares outstanding	87	87
Capital surplus	1,218	1,214
Retained earnings	3,002	2,987
Accumulated other comprehensive income, net of tax	448	304
Total shareholders’ equity	4,755	4,592
Noncontrolling interests	182	178
Total equity	4,937	4,770
Total liabilities and equity	$ 51,038	$ 49,837

Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Fixed maturities, available for sale at amortized cost	$ 32,749	$ 31,565
Equity securities, available for sale at cost	$ 1,475	$ 1,469
Common Stock, par value (USD per share)	$ 0	$ 0
Common Stock, shares authorized	200,000,000	200,000,000
Common Stock, shares outstanding	86,966,290	87,474,452

Consolidated Statement of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Property and casualty insurance net earned premiums	$ 998	$ 946
Life, accident and health net earned premiums	6	25
Net investment income	411	388
Realized gains (losses) on:
Securities	(18)	19
Subsidiaries	0	(162)
Income (loss) of managed investment entities:
Investment income	45	34
Loss on change in fair value of assets/liabilities	(13)	(3)
Other income	46	50
Total revenues	1,475	1,297
Costs and Expenses:
Property and casualty insurance: Losses and loss adjustment expenses	581	576
Property and casualty insurance: Commissions and other underwriting expenses	334	313
Annuity benefits	228	184
Life, accident and health benefits	9	32
Annuity and supplemental insurance acquisition expenses	35	41
Interest charges on borrowed money	18	20
Expenses of managed investment entities	35	24
Other expenses	79	77
Total costs and expenses	1,319	1,267
Earnings before income taxes	156	30
Provision for income taxes	52	5
Net earnings, including noncontrolling interests	104	25
Less: Net earnings attributable to noncontrolling interests	3	6
Net Earnings Attributable to Shareholders	$ 101	$ 19
Earnings Attributable to Shareholders per Common Share:
Basic (USD per share)	$ 1.16	$ 0.22
Diluted (USD per share)	$ 1.14	$ 0.21
Average number of Common Shares:
Basic (shares)	86.9	87.6
Diluted (shares)	88.5	89.4
Cash dividends per Common Share (USD per share)	$ 0.28	$ 0.25
Supplemental disclosure of Realized gains on securities:
Realized gains before impairments	$ 34	$ 23
Losses on securities with impairment	(51)	(4)
Non-credit portion recognized in other comprehensive income (loss)	(1)	0
Impairment charges recognized in earnings	(52)	(4)
Total realized gains (losses) on securities	$ (18)	$ 19

Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net earnings, including noncontrolling interests	$ 104	$ 25
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period	125	69
Reclassification adjustment for realized (gains) losses included in net earnings	11	(12)
Total net unrealized gains on securities	136	57
Net unrealized gains on cash flow hedges	3	1
Foreign currency translation adjustments	6	(8)
Pension and other postretirement plans adjustments	1	0
Other comprehensive income, net of tax	146	50
Total comprehensive income, net of tax	250	75
Less: Comprehensive income attributable to noncontrolling interests	5	7
Comprehensive income attributable to shareholders	$ 245	$ 68

Consolidated Statement of Changes in Equity (Unaudited) - 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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of accounting change for variable interest entities	$ 2	$ 2			$ 2
Beginning Balance, shares at Dec. 31, 2014			87,708,793
Beginning Balance at Dec. 31, 2014	5,054	4,879		$ 1,240	(2)	$ 2,914	$ 727	$ 175
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	25	19				19		6
Other comprehensive income (loss)	50	49					49	1
Dividends on Common Stock	(22)	(22)				(22)
Shares issued:
Restricted stock awards, shares			171,130
Restricted stock awards	0	0		0
Exercise of stock options, shares			489,001
Exercise of stock options	17	17		17
Other benefit plans, shares			62,094
Other benefit plans	4	4		4
Dividend reinvestment plan, shares			3,606
Stock-based compensation:
Stock-based compensation: Expense	5	5		5
Stock-based compensation: Excess tax benefits	3	3		3
Shares acquired and retired, shares			(516,276)
Shares acquired and retired	(31)	(31)		(8)		(23)
Shares exchanged - benefit plans, shares			(32,633)
Shares exchanged - benefit plans	(2)	(2)				(2)
Other	(5)							(5)
Ending Balance, shares at Mar. 31, 2015			87,885,715
Ending Balance at Mar. 31, 2015	$ 5,100	4,923		1,261	0	2,886	776	177
Beginning Balance, shares at Dec. 31, 2015	87,474,452		87,474,452
Beginning Balance at Dec. 31, 2015	$ 4,770	4,592		1,301	0	2,987	304	178
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	104	101				101		3
Other comprehensive income (loss)	146	144					144	2
Dividends on Common Stock	(24)	(24)				(24)
Shares issued:
Restricted stock awards, shares			317,230
Restricted stock awards	0	0		0
Exercise of stock options, shares			279,165
Exercise of stock options	10	10		10
Other benefit plans, shares			47,566
Other benefit plans	3	3		3
Dividend reinvestment plan, shares			3,736
Dividend reinvestment plan	0	0		0
Stock-based compensation:
Stock-based compensation: Expense	5	5		5
Stock-based compensation: Excess tax benefits	2	2		2
Shares acquired and retired, shares			(1,128,128)
Shares acquired and retired	(76)	(76)		(16)		(60)
Shares exchanged - benefit plans, shares			(27,551)
Shares exchanged - benefit plans	(2)	(2)				(2)
Forfeitures of restricted stock, shares			(180)
Forfeitures of restricted stock	0	0		0
Other	$ (1)							(1)
Ending Balance, shares at Mar. 31, 2016	86,966,290		86,966,290
Ending Balance at Mar. 31, 2016	$ 4,937	$ 4,755		$ 1,305	$ 0	$ 3,002	$ 448	$ 182

Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating Activities:
Net earnings, including noncontrolling interests	$ 104	$ 25
Adjustments:
Depreciation and amortization	28	31
Annuity benefits	228	184
Realized losses on investing activities	15	133
Net (purchases) sales of trading securities	71	(4)
Deferred annuity and life policy acquisition costs	(68)	(44)
Change in:
Reinsurance and other receivables	197	483
Other assets	(68)	27
Insurance claims and reserves	(26)	(242)
Payable to reinsurers	(90)	(151)
Other liabilities	15	(41)
Managed investment entities’ assets/liabilities	(55)	(25)
Other operating activities, net	(16)	21
Net cash provided by operating activities	335	397
Investing Activities:
Purchases of fixed maturities	(2,125)	(1,605)
Purchases of equity securities	(74)	(79)
Purchases of mortgage loans	(131)	(31)
Purchases of real estate, property and equipment	(18)	(19)
Proceeds from maturities and redemptions of fixed maturities	840	736
Proceeds from repayments of mortgage loans	101	59
Proceeds from sales of fixed maturities	225	32
Proceeds from sales of equity securities	55	79
Proceeds from sales of real estate, property and equipment	5	23
Managed investment entities:
Purchases of investments	(239)	(258)
Proceeds from sales and redemptions of investments	290	149
Other investing activities, net	(125)	(54)
Net cash used in investing activities	(1,196)	(968)
Financing Activities:
Annuity receipts	1,435	813
Annuity surrenders, benefits and withdrawals	(503)	(443)
Net transfers from variable annuity assets	9	10
Issuances of managed investment entities’ liabilities	31	103
Retirements of managed investment entities’ liabilities	(11)	(4)
Issuances of Common Stock	13	19
Repurchases of Common Stock	(76)	(31)
Cash dividends paid on Common Stock	(24)	(22)
Other financing activities, net	(2)	(5)
Net cash provided by financing activities	872	440
Net Change in Cash and Cash Equivalents	11	(131)
Cash and cash equivalents at beginning of period	1,220	1,343
Cash and cash equivalents at end of period	$ 1,231	$ 1,212

Accounting Policies	3 Months Ended
Accounting Policies	Mar. 31, 2016
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies Basis of Presentation The accompanying consolidated financial statements for American Financial Group, Inc. and its subsidiaries (“AFG”) are unaudited; however, management believes that all adjustments (consisting only of normal recurring accruals unless otherwise disclosed herein) necessary for fair presentation have been made. The results of operations for interim periods are not necessarily indicative of results to be expected for the year. The financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes necessary to be in conformity with U.S. generally accepted accounting principles (“GAAP”). Certain reclassifications have been made to prior periods 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 March 31, 2016, and prior to the filing of this Form 10-Q, have been evaluated for potential recognition or disclosure herein. The preparation of the financial statements 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. AFG did not have any significant nonrecurring fair value measurements in the first three months of 2016. 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”). 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) through its investment in the CLO debt tranches, it has exposure to CLO losses (limited to the amount AFG invested) and the right to receive CLO benefits that could potentially be significant to the CLOs. On January 1, 2016, AFG adopted ASU 2015-02, which amended certain consolidation accounting guidance, including the VIE guidance that applies to collateralized financing entities such as CLOs. The new guidance affects how fee arrangements with CLO asset managers impact the determination of the primary beneficiary of those entities. Due to the significance of AFG’s investments in the CLOs that it manages, the new guidance did not impact the consolidation of AFG’s currently outstanding CLOs. The new guidance also impacted the consolidation analysis that applies to limited partnerships and similar entities, but did not result in a change to 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 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. This difference was recorded as “appropriated retained earnings — managed investment entities” in AFG’s Balance Sheet. In accordance with the guidance adopted in 2015, 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. At March 31, 2016, assets and liabilities of managed investment entities included $121 million in assets and $91 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 May 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. Debt Issuance Costs Debt issuance costs related to AFG’s outstanding debt are amortized over the life of the related debt using the effective interest method. Effective January 1, 2016, AFG adopted (on a retrospective basis) ASU 2015-03, which requires debt issuance costs to be presented in the balance sheet as a direct reduction in the carrying value of long-term debt (consistent with the treatment of debt discounts) with the periodic amortization of such costs included in interest expense. Debt issuance costs related to AFG’s revolving credit facilities will continue to be included in other assets in AFG’s Balance Sheet. Prior to AFG’s adoption of ASU 2015-03, AFG reported unamortized debt issuance costs as a deferred charge asset (included in other assets) in AFG’s Balance Sheet and the periodic amortization was included in other expenses in AFG’s Statement of Earnings. The updated guidance did not affect the overall recognition and measurement guidance for debt issuance costs. Accordingly, the guidance did not have an overall impact on AFG’s Shareholders’ Equity or results of operations. 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. 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: first three months of 2016 and 2015 — 1.6 million and 1.8 million, respectively. AFG’s weighted average diluted shares outstanding excludes the following anti-dilutive potential common shares related to stock compensation plans: first three months of 2016 and 2015 — 0.8 million and 1.3 million, respectively. Adjustments to net earnings attributable to shareholders in the calculation of diluted earnings per share were nominal in the 2016 and 2015 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.

Sale of Business

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Sale of 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. The legal entities involved in the transaction, United Teacher Associates Insurance Company (“UTA”) and Continental General Insurance Company (“CGIC”), contained 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 $35 million of reserves at March 31, 2016. 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 a total of $97 million in tax benefits related to the sale. AFG received approximately $66 million of these tax benefits through reduced estimated tax payments in the first quarter of 2016 and just over $30 million in April 2016 from a tax refund resulting from the carryback of the tax-basis capital loss. The receivables for the uncollected portion of these tax benefits are reflected in AFG’s financial statements at March 31, 2016 and December 31, 2015.

Based on the status of ongoing negotiations at the end of the first quarter of 2015, management determined that the potential sale of the run-off long-term care insurance 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 ($108 million loss after tax) based on the actual proceeds received and the final carrying value of the net assets disposed. At March 31, 2015 and at the sale date, the carrying value of the assets and liabilities disposed represented approximately 4% of both AFG’s assets and liabilities.

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



	Three months ended March 31, 2015
Life, accident and health net earned premiums:
Long-term care	$	17
Life operations	3
Net investment income	18
Realized gains (losses) on securities and other income	(2		)
Total revenues	36
Annuity benefits	2
Life, accident and health benefits:
Long-term care	21
Life operations	3
Annuity and supplemental insurance acquisition expenses	3
Other expenses	4
Total costs and expenses	33
Earnings before income taxes	$	3

- Definition

The entire disclosure 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

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+ Details

Segments of Operations

3 Months Ended

Mar. 31, 2016

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 costs and the 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.

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



	Three months ended March 31,
	2016			2015
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	339		$	313
Specialty casualty	502			490
Specialty financial	132			120
Other specialty	25			23
Total premiums earned	998			946
Net investment income	83			79
Other income	3			6
Total property and casualty insurance	1,084			1,031
Annuity:
Net investment income	315			292
Other income	26			27
Total annuity	341			319
Run-off long-term care and life (a)	12			46
Other	56			44
Total revenues before realized gains (losses)	1,493			1,440
Realized gains (losses) on securities	(18		)	19
Realized losses on subsidiaries	—			(162		)
Total revenues	$	1,475		$	1,297



Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	32		$	7
Specialty casualty	29			28
Specialty financial	23			22
Other specialty	2			3
Other lines	1			—
Total underwriting	87			60
Investment and other income, net	75			73
Total property and casualty insurance	162			133
Annuity	53			75
Run-off long-term care and life (a)	(1		)	4
Other (b)	(40		)	(39		)
Total earnings before realized gains (losses) and income taxes	174			173
Realized gains (losses) on securities	(18		)	19
Realized losses on subsidiaries	—			(162		)
Total earnings before income taxes	$	156		$	30


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


(b)	Includes holding company interest and expenses.

- 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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+ Details

Fair Value Measurements

3 Months Ended

Mar. 31, 2016

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, 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. Based on the status of ongoing negotiations at the end of the first quarter of 2015, management determined that the potential sale of the run-off long-term care insurance business met GAAP “held for sale” criteria as of March 31, 2015. Accordingly, 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 of $14 million (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).

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



	Level 1		Level 2			Level 3		Total
March 31, 2016
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies	$	105	$	218		$	15	$	338
States, municipalities and political subdivisions	—		6,960			92		7,052
Foreign government	—		147			—		147
Residential MBS	—		3,559			213		3,772
Commercial MBS	—		2,098			38		2,136
Asset-backed securities (“ABS”)	—		4,629			501		5,130
Corporate and other	37		14,579			730		15,346
Total AFS fixed maturities	142		32,190			1,589		33,921
Trading fixed maturities	10		239			—		249
Equity securities — AFS and trading	1,359		131			158		1,648
Assets of managed investment entities (“MIE”)	177		3,705			24		3,906
Variable annuity assets (separate accounts) (*)	—		595			—		595
Other investments — equity index call options	—		274			—		274
Other assets — derivatives	—		13			—		13
Total assets accounted for at fair value	$	1,688	$	37,147		$	1,771	$	40,606
Liabilities:
Liabilities of managed investment entities	$	165	$	3,468		$	23	$	3,656
Derivatives in annuity benefits accumulated	—		—			1,450		1,450
Derivatives in long-term debt	—		(8		)	—		(8		)
Other liabilities — derivatives	—		10			—		10
Total liabilities accounted for at fair value	$	165	$	3,470		$	1,473	$	5,108

December 31, 2015
Assets:
Available for sale 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	—		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 — AFS and trading	1,362		217			140		1,719
Assets of managed investment entities	309		3,712			26		4,047
Variable annuity assets (separate accounts) (*)	—		608			—		608
Other investments — equity index call options	—		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


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

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

During the first three months of 2016, there was one perpetual preferred stock with a fair value of $8 million that transferred from Level 2 to Level 1 and three perpetual preferred stocks with an aggregate fair value of $6 million that transferred from Level 1 to Level 2. During the first three months of 2015, there was one common stock and two perpetual preferred stocks with aggregate fair values of $53 million and $5 million, respectively, transferred from Level 2 to Level 1. There were no transfers from Level 1 to Level 2 in the first three months of 2015.

Approximately 4% of the total assets carried at fair value on March 31, 2016, were Level 3 assets. Approximately 73% ($1.29 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 $1.45 billion at March 31, 2016. 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		0.20% – 3.20% over the risk free rate
	Risk margin for uncertainty in cash flows		0.58% reduction in the discount rate
	Surrenders		3% – 21% of indexed account value
	Partial surrenders		2% – 10% of indexed account value
	Annuitizations		0.25% – 1.0% 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 the first three months of 2016 and 2015 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
	Balance at December 31, 2015			Net income			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at March 31, 2016
AFS fixed maturities:
U.S. government agency	$	15		$	—		$	—		$	—		$	—		$	—	$	—		$	15
State and municipal	89			—			3			—			—			—		—			92
Residential MBS	224			1			—			—			(7		)	11		(16		)	213
Commercial MBS	39			—			—			—			(1		)	—		—			38
Asset-backed securities	470			—			(6		)	4			(8		)	41		—			501
Corporate and other	633			(2		)	15			86			(7		)	5		—			730
Total AFS fixed maturities	1,470			(1		)	12			90			(23		)	57		(16		)	1,589
Equity securities	140			(17		)	8			12			—			15		—			158
Assets of MIE	26			(2		)	—			—			—			—		—			24
Total Level 3 assets	$	1,636		$	(20	)	$	20		$	102		$	(23	)	$	72	$	(16	)	$	1,771

Embedded derivatives	$	(1,369	)	$	(17	)	$	—		$	(82	)	$	18		$	—	$	—		$	(1,450	)
Total Level 3 liabilities (a)	$	(1,369	)	$	(17	)	$	—		$	(82	)	$	18		$	—	$	—		$	(1,450	)



						Total realized/unrealized gains (losses) included in
	Balance at December 31, 2014			Impact of accounting change (b)		Net income			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at March 31, 2015
AFS fixed maturities:
U.S. government agency	$	15		$	—	$	—		$	—		$	—		$	—		$	—	$	—		$	15
State and municipal	100			—		—			—			—			—			—		(39		)	61
Residential MBS	300			—		(1		)	3			—			(7		)	41		(30		)	306
Commercial MBS	44			—		—			—			—			—			—		—			44
Asset-backed securities	226			—		—			—			5			(41		)	21		—			211
Corporate and other	546			—		—			6			44			(13		)	—		—			583
Total AFS fixed maturities	1,231			—		(1		)	9			49			(61		)	62		(69		)	1,220
Equity securities	93			—		—			(2		)	10			—			—		(17		)	84
Assets of MIE	31			—		(2		)	—			—			—			—		—			29
Total Level 3 assets	$	1,355		$	—	$	(3	)	$	7		$	59		$	(61	)	$	62	$	(86	)	$	1,333

Liabilities of MIE	$	(2,701	)	$	2,701	$	—		$	—		$	—		$	—		$	—	$	—		$	—
Embedded derivatives	(1,160		)	—		(50		)	—			(47		)	14			—		—			(1,243		)
Total Level 3 liabilities (a)	$	(3,861	)	$	2,701	$	(50	)	$	—		$	(47	)	$	14		$	—	$	—		$	(1,243	)


(a)	As discussed above, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets.


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

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 are summarized below (in millions):



	Carrying		Fair Value
	Value		Total		Level 1		Level 2		Level 3
March 31, 2016
Financial assets:
Cash and cash equivalents	$	1,231	$	1,231	$	1,231	$	—	$	—
Mortgage loans	1,097		1,108		—		—		1,108
Policy loans	198		198		—		—		198
Total financial assets not accounted for at fair value	$	2,526	$	2,537	$	1,231	$	—	$	1,306
Financial liabilities:
Annuity benefits accumulated (*)	$	27,613	$	27,210	$	—	$	—	$	27,210
Long-term debt	1,006		1,125		—		1,110		15
Total financial liabilities not accounted for at fair value	$	28,619	$	28,335	$	—	$	1,110	$	27,225

December 31, 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	1,000		1,120		—		1,105		15
Total financial liabilities not accounted for at fair value	$	27,422	$	26,608	$	—	$	1,105	$	25,503


(*)	Excludes $199 million and $200 million of life contingent annuities in the payout phase at March 31, 2016 and December 31, 2015, 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

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Investments

Available for sale fixed maturities and equity securities at March 31, 2016 and December 31, 2015, consisted of the following (in millions):



	March 31, 2016												December 31, 2015
	Amortized Cost		Gross Unrealized					Net Unrealized			Fair Value		Amortized Cost		Gross Unrealized					Net Unrealized			Fair Value
	Amortized Cost		Gains		Losses			Net Unrealized			Fair Value		Amortized Cost		Gains		Losses			Net Unrealized			Fair Value
Fixed maturities:
U.S. Government and government agencies	$	333	$	7	$	(2	)	$	5		$	338	$	305	$	5	$	(3	)	$	2		$	307
States, municipalities and political subdivisions	6,691		369		(8		)	361			7,052		6,642		249		(35		)	214			6,856
Foreign government	139		8		—			8			147		147		7		—			7			154
Residential MBS	3,508		290		(26		)	264			3,772		3,236		308		(15		)	293			3,529
Commercial MBS	2,046		91		(1		)	90			2,136		2,111		77		(1		)	76			2,187
Asset-backed securities	5,172		29		(71		)	(42		)	5,130		4,961		25		(52		)	(27		)	4,934
Corporate and other	14,860		658		(172		)	486			15,346		14,163		422		(268		)	154			14,317
Total fixed maturities	$	32,749	$	1,452	$	(280	)	$	1,172		$	33,921	$	31,565	$	1,093	$	(374	)	$	719		$	32,284

Equity Securities:
Common stocks	$	1,041	$	129	$	(81	)	$	48		$	1,089	$	1,051	$	146	$	(79	)	$	67		$	1,118
Perpetual preferred stocks	434		22		(9		)	13			447		418		23		(6		)	17			435
Total equity securities	$	1,475	$	151	$	(90	)	$	61		$	1,536	$	1,469	$	169	$	(85	)	$	84		$	1,553

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 March 31, 2016 and December 31, 2015, respectively, were $201 million and $205 million. Gross unrealized gains on such securities at March 31, 2016 and December 31, 2015 were $126 million and $134 million, respectively. Gross unrealized losses on such securities at March 31, 2016 and December 31, 2015 were $9 million and $6 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 March 31, 2016 and December 31, 2015.



	Less Than Twelve Months							Twelve Months or More
	Unrealized Loss			Fair Value		Fair Value as % of Cost		Unrealized Loss			Fair Value		Fair Value as % of Cost
March 31, 2016
Fixed maturities:
U.S. Government and government agencies	$	—		$	12	100	%	$	(2	)	$	15	88	%
States, municipalities and political subdivisions	(3		)	213		99	%	(5		)	141		97	%
Residential MBS	(14		)	748		98	%	(12		)	243		95	%
Commercial MBS	—			50		100	%	(1		)	15		94	%
Asset-backed securities	(60		)	2,377		98	%	(11		)	449		98	%
Corporate and other	(130		)	2,026		94	%	(42		)	324		89	%
Total fixed maturities	$	(207	)	$	5,426	96	%	$	(73	)	$	1,187	94	%

Equity securities:
Common stocks	$	(81	)	$	498	86	%	$	—		$	2	100	%
Perpetual preferred stocks	(5		)	117		96	%	(4		)	22		85	%
Total equity securities	$	(86	)	$	615	88	%	$	(4	)	$	24	86	%

December 31, 2015
Fixed maturities:
U.S. Government and government agencies	$	(1	)	$	112	99	%	$	(2	)	$	15	88	%
States, municipalities and political subdivisions	(33		)	1,419		98	%	(2		)	50		96	%
Residential MBS	(7		)	438		98	%	(8		)	201		96	%
Commercial MBS	—			95		100	%	(1		)	28		97	%
Asset-backed securities	(42		)	2,706		98	%	(10		)	455		98	%
Corporate and other	(229		)	4,661		95	%	(39		)	165		81	%
Total fixed maturities	$	(312	)	$	9,431	97	%	$	(62	)	$	914	94	%

Equity securities:
Common stocks	$	(79	)	$	509	87	%	$	—		$	—	—	%
Perpetual preferred stocks	(3		)	91		97	%	(3		)	22		88	%
Total equity securities	$	(82	)	$	600	88	%	$	(3	)	$	22	88	%

At March 31, 2016, the gross unrealized losses on fixed maturities of $280 million relate to approximately 868 securities. Investment grade securities (as determined by nationally recognized rating agencies) represented approximately 57% of the gross unrealized loss and 79% of the 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. In the first three months of 2016, AFG recorded $2 million in other-than-temporary impairment charges related to its residential MBS.

In the first three months of 2016, AFG recorded approximately $14 million in other-than-temporary impairment charges related to corporate bonds.

AFG recorded $38 million other-than-temporary impairment charges on common stocks in the first three months of 2016. At March 31, 2016, the gross unrealized losses on common stocks of $81 million relate to 63 securities, one of which has been in an unrealized loss position for more than 12 months.

AFG recorded $3 million in other-than-temporary impairment charges on preferred stocks in the first three months of 2016. At March 31, 2016, the gross unrealized losses on preferred stocks of $9 million relate to 24 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 March 31, 2016.

A progression of the credit portion of other-than-temporary impairments on fixed maturity securities for which the non-credit portion of an impairment has been recognized in other comprehensive income is shown below (in millions):



	2016			2015
Balance at January 1	$	160		$	170
Additional credit impairments on:
Previously impaired securities	2			1
Securities without prior impairments	—			—
Reductions due to sales or redemptions	(2		)	(3		)
Balance at March 31	$	160		$	168

The table below sets forth the scheduled maturities of available for sale fixed maturities as of March 31, 2016 (dollars in millions). Securities with sinking funds are reported at average maturity. Actual maturities may differ from contractual maturities because certain securities may be called or prepaid by the issuers.



	Amortized		Fair Value
	Cost		Amount		%
Maturity
One year or less	$	999	$	1,014	3	%
After one year through five years	5,348		5,612		17	%
After five years through ten years	11,678		12,025		35	%
After ten years	3,998		4,232		13	%
	22,023		22,883		68	%
ABS (average life of approximately 5 years)	5,172		5,130		15	%
MBS (average life of approximately 4-1/2 years)	5,554		5,908		17	%
Total	$	32,749	$	33,921	100	%

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 March 31, 2016 or December 31, 2015.

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
March 31, 2016
Unrealized gain on:
Fixed maturities — annuity segment (*)	$	910		$	(319	)	$	591
Fixed maturities — all other	262			(98		)	164
Total fixed maturities	1,172			(417		)	755
Equity securities	61			(21		)	40
Total investments	1,233			(438		)	795
Deferred policy acquisition costs — annuity segment	(400		)	140			(260		)
Annuity benefits accumulated	(125		)	44			(81		)
Life, accident and health reserves	(1		)	—			(1		)
Unearned revenue	20			(7		)	13
Total net unrealized gain on marketable securities	$	727		$	(261	)	$	466

December 31, 2015
Unrealized gain on:
Fixed maturities — annuity segment (*)	$	523		$	(183	)	$	340
Fixed maturities — all other	196			(72		)	124
Total fixed maturities	719			(255		)	464
Equity securities	84			(30		)	54
Total investments	803			(285		)	518
Deferred policy acquisition costs — annuity segment	(233		)	82			(151		)
Annuity benefits accumulated	(64		)	22			(42		)
Unearned revenue	11			(4		)	7
Total net unrealized gain on marketable securities	$	517		$	(185	)	$	332


(*)	Unrealized gains on fixed maturity investments supporting AFG’s annuity benefits accumulated.

Net Investment Income The following table shows (in millions) investment income earned and investment expenses incurred.



	Three months ended March 31,
	2016			2015
Investment income:
Fixed maturities	$	367		$	352
Equity securities	19			17
Equity in earnings of partnerships and similar investments	11			3
Other	19			21
Gross investment income	416			393
Investment expenses	(5		)	(5		)
Net investment income	$	411		$	388

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



	Three months ended March 31, 2016												Three months ended March 31, 2015
	Realized gains (losses)												Realized gains (losses)
	Before Impairments			Impairments			Total			Change in Unrealized			Before Impairments			Impairments			Total			Change in Unrealized
Fixed maturities	$	14		$	(16	)	$	(2	)	$	453		$	3		$	(5	)	$	(2	)	$	218
Equity securities	23			(41		)	(18		)	(23		)	21			(2		)	19			6
Other (*)	(3		)	5			2			(220		)	(1		)	3			2			(137		)
Total pretax	34			(52		)	(18		)	210			23			(4		)	19			87
Tax effects	(12		)	19			7			(74		)	(8		)	1			(7		)	(30		)
Noncontrolling interests	—			1			1			(2		)	—			—			—			(1		)
Net of tax noncontrolling interests	$	22		$	(32	)	$	(10	)	$	134		$	15		$	(3	)	$	12		$	56


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

Gross realized gains and losses (excluding impairment write-downs and mark-to-market of derivatives) on available for sale fixed maturity and equity security investment transactions included in the Statement of Cash Flows consisted of the following (in millions):



	Three months ended March 31,
	2016			2015
Fixed maturities:
Gross gains	$	14		$	5
Gross losses	(1		)	—
Equity securities:
Gross gains	25			21
Gross losses	—			—

- Definition

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

+ References + Details

Derivatives

3 Months Ended

Mar. 31, 2016

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):



		March 31, 2016				December 31, 2015
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	127	$	—	$	130	$	—
Public company warrants	Equity securities	2		—		4		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		1,450		—		1,369
Equity index call options	Other investments	274		—		241		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		10		—		7
		$	403	$	1,460	$	375	$	1,376

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 are required to be carried at fair value through earnings.

AFG’s fixed-indexed annuities, which represented approximately 60% of annuity benefits accumulated at March 31, 2016, 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 ($196 million at March 31, 2016 and $211 million at December 31, 2015) 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 AFG’s Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting for the first three months of 2016 and 2015 (in millions):



		Three months ended March 31,
Derivative	Statement of Earnings Line	2016			2015
MBS with embedded derivatives	Realized gains on securities	$	1		$	(2	)
Public company warrants	Realized gains on securities	(2		)	—
Fixed-indexed annuities (embedded derivative)	Annuity benefits	(17		)	(50		)
Equity index call options	Annuity benefits	(40		)	20
Reinsurance contracts (embedded derivative)	Net investment income	(3		)	—
		$	(61	)	$	(32	)

Derivatives Designated and Qualifying as Cash Flow Hedges As of March 31, 2016, AFG has entered into four 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. 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 short-term LIBOR.

Under the terms of the swaps, AFG receives fixed-rate interest payments in exchange for variable interest payments based on short-term LIBOR. The notional amounts of the interest rate swaps amortize down over each swap’s respective life (the swaps expire between August 2019 and June 2030) in anticipation of the expected decline in AFG’s portfolio of fixed maturity securities with floating interest rates based on short-term LIBOR. The total outstanding notional amount of AFG’s interest rate swaps increased to $749 million at March 31, 2016 compared to $614 million at December 31, 2015, reflecting a $163 million notional amount swap entered into in the first quarter of 2016, partially offset by the scheduled amortization discussed above. The fair value of the effective portion of the interest rate swaps in an asset position and included in other assets was $13 million at March 31, 2016 and $2 million at December 31, 2015. The fair value of the effective portion of the interest rate swaps in a liability position and included in other liabilities was zero at March 31, 2016 and less than $1 million at December 31, 2015. The net unrealized gain or loss on cash flow hedges is included in AOCI, net of DPAC and tax. During the first three months of 2016 and 2015, $2 million and $1 million was reclassified from AOCI to net investment income, respectively. 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% (8.7329% at March 31, 2016). 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 (asset of $8 million and $2 million at March 31, 2016 and December 31, 2015, respectively) 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 the first three months of 2016 was $1 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

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+ Details

Deferred Policy Acquisition Costs

3 Months Ended

Mar. 31, 2016

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, 2015	$	226		$	1,018		$	119		$	55		$	1,192		$	(234	)	$	958		$	1,184
Additions	132			68			5			—			73			—			73			205
Amortization:
Periodic amortization	(134		)	(25		)	(5		)	(2		)	(32		)	—			(32		)	(166		)
Included in realized gains	—			2			—			—			2			—			2			2
Change in unrealized	—			—			—			—			—			(170		)	(170		)	(170		)
Balance at March 31, 2016	$	224		$	1,063		$	119		$	53		$	1,235		$	(404	)	$	831		$	1,055

Balance at December 31, 2014	$	221		$	925		$	132		$	74		$	1,131		$	(531	)	$	600		$	821
Additions	121			44			3			—			47			—			47			168
Amortization:
Periodic amortization	(126		)	(29		)	(7		)	(3		)	(39		)	—			(39		)	(165		)
Included in realized gains	—			2			—			—			2			—			2			2
Foreign currency translation	1			—			—			—			—			—			—			1
Change in unrealized	—			—			—			—			—			(71		)	(71		)	(71		)
Balance at March 31, 2015	$	217		$	942		$	128		$	71		$	1,141		$	(602	)	$	539		$	756

The present value of future profits (“PVFP”) amounts in the table above are net of $127 million and $125 million of accumulated amortization at March 31, 2016 and December 31, 2015, respectively.

Managed Investment Entities

3 Months Ended

Mar. 31, 2016

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 86.1% 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 $250 million (including $113 million invested in the most subordinate tranches) at March 31, 2016, and $266 million at December 31, 2015.

During the first three months of 2016, AFG subsidiaries purchased $11 million face amount of senior debt and subordinate tranches of existing CLOs for $10 million. During the first three months of 2016 and 2015, AFG subsidiaries received $23 million and $1 million, respectively, in sale and redemption proceeds from its CLO investments.

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):



	Three months ended March 31,
	2016			2015
Gains (losses) on change in fair value of assets/liabilities (a):
Assets	$	(1	)	$	33
Liabilities	(12		)	(36		)
Management fees paid to AFG	4			4
CLO earnings (losses) attributable to AFG shareholders (b)	(7		)	3


(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 $211 million and $214 million at March 31, 2016 and December 31, 2015. The aggregate unpaid principal balance of the CLOs’ debt exceeded its carrying value by $242 million and $205 million at those dates. The CLO assets include $8 million and $1 million in loans at March 31, 2016 and December 31, 2015, respectively, for which the CLOs are not accruing interest because the loans are in default (aggregate unpaid principal balance of $21 million and $10 million at those dates, respectively).

Goodwill and Other Intangibles	3 Months Ended
Goodwill and Other Intangibles	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangibles	Goodwill and Other Intangibles There were no changes in the goodwill balance of $199 million during the first three months of 2016. Included in other assets in AFG’s Balance Sheet is $39 million at March 31, 2016 and $41 million at December 31, 2015 in amortizable intangible assets related to property and casualty insurance acquisitions. These amounts are net of accumulated amortization of $19 million and $18 million, respectively. Amortization of intangibles was $2 million in both the first three months of 2016 and 2015.

- 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

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt consisted of the following (in millions):



	March 31, 2016							December 31, 2015
	Principal		Debt Issue Costs			Carrying Value		Principal		Debt Issue Costs			Carrying Value
Direct Senior Obligations of AFG:
9-7/8% Senior Notes due June 2019	$	350	$	(1	)	$	349	$	350	$	(1	)	$	349
6-3/8% Senior Notes due June 2042	230		(7		)	223		230		(7		)	223
5-3/4% Senior Notes due August 2042	125		(4		)	121		125		(4		)	121
Other	3		—			3		3		—			3
	708		(12		)	696		708		(12		)	696

Direct Subordinated Obligations of AFG:
6-1/4% Subordinated Debentures due September 2054	150		(5		)	145		150		(5		)	145
6% Subordinated Debentures due November 2055	150		(5		)	145		150		(5		)	145
	300		(10		)	290		300		(10		)	290

Subsidiaries:
National Interstate bank credit facility	12		—			12		12		—			12
	$	1,020	$	(22	)	$	998	$	1,020	$	(22	)	$	998

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% (8.7329% at March 31, 2016 and 8.6110% at December 31, 2015). The fair value of the interest rate swap (asset of $8 million and $2 million at March 31, 2016 and December 31, 2015, respectively) 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.

Scheduled principal payments on debt for the balance of 2016, the subsequent five years and thereafter were as follows:

2016 — none; 2017 — $12 million; 2018 — none; 2019 — $350 million; 2020 — none; 2021 — none and thereafter — $658 million.

As shown below (principal amount, in millions), the majority of AFG’s long-term debt is unsecured obligations of the holding company and its subsidiaries:



	March 31, 2016		December 31, 2015
Senior unsecured obligations	$	720	$	720
Subordinated unsecured obligations	300		300
	$	1,020	$	1,020

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 March 31, 2016 or December 31, 2015.

National Interstate can borrow up to $100 million under its unsecured credit agreement, which expires in November 2017. At March 31, 2016, there was $12 million outstanding under this agreement, bearing interest at 1.399% (six-month LIBOR plus 0.875%).

Shareholders' Equity

3 Months Ended

Mar. 31, 2016

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.

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
Three months ended March 31, 2016
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period				$	192		$	(67	)	$	125		$	(1	)	$	124
Reclassification adjustment for realized (gains) losses included in net earnings (a)				18			(7		)	11			(1		)	10
Total net unrealized gains on securities (b)	$	332		210			(74		)	136			(2		)	134			$	466
Net unrealized gains on cash flow hedges	1			5			(2		)	3			—			3			4
Foreign currency translation adjustments	(22		)	3			3			6			—			6			(16		)
Pension and other postretirement plans adjustments	(7		)	1			—			1			—			1			(6		)
Total	$	304		$	219		$	(73	)	$	146		$	(2	)	$	144		$	448

Three months ended March 31, 2015
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period				$	106		$	(37	)	$	69		$	(1	)	$	68
Reclassification adjustment for realized (gains) losses included in net earnings (a)				(19		)	7			(12		)	—			(12		)
Total net unrealized gains on securities	$	743		87			(30		)	57			(1		)	56			$	799
Net unrealized gains on cash flow hedges	—			1			—			1			—			1			1
Foreign currency translation adjustments	(8		)	(5		)	(3		)	(8		)	—			(8		)	(16		)
Pension and other postretirement plans adjustments	(8		)	—			—			—			—			—			(8		)
Total	$	727		$	83		$	(33	)	$	50		$	(1	)	$	49		$	776


(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 (losses) on securities
	Tax		Provision for income taxes
	Attributable to noncontrolling interests		Net earnings (loss) attributable to noncontrolling interests


(b)	Includes net unrealized gains of $46 million at March 31, 2016 and $51 million at December 31, 2015 related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.

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. In the first three months of 2016, AFG issued 317,230 shares of restricted Common Stock (fair value of $66.97 per share) under the Stock Incentive Plan. In addition, AFG issued 40,336 shares of Common Stock (fair value of $71.05 per share) in the first quarter of 2016 under the Equity Bonus Plan. AFG did not grant any stock options in the first three months of 2016.

Total compensation expense related to stock incentive plans of AFG and its subsidiaries was $8 million and $6 million in the first three months of 2016 and 2015, respectively.

- 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
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.4-08.(d),(e))
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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

3 Months Ended

Mar. 31, 2016

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 AFG’s Statement of Earnings (dollars in millions):



	Three months ended March 31,
	2016					2015
	Amount			% of EBT		Amount			% of EBT
Earnings before income taxes (“EBT”)	$	156				$	30

Income taxes at statutory rate	$	55		35	%	$	10		35	%
Effect of:
Tax exempt interest	(7		)	(4	%)	(7		)	(23	%)
Change in valuation allowance	1			1	%	(1		)	(3	%)
Subsidiaries not in AFG’s tax return	1			—	%	1			3	%
Other	2			1	%	2			5	%
Provision for income taxes as shown in the statement of earnings	$	52		33	%	$	5		17	%

During the first three months of 2016, there were no material changes to AFG’s liability for uncertain tax positions. Excluding the tax benefit from the estimated loss on the sale of the long-term care insurance business, AFG’s effective tax rate was 32% for the first three months of 2015.

Contingencies	3 Months Ended
Contingencies	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies There have been no significant changes to the matters discussed and referred to in Note M — “Contingencies” of AFG’s 2015 Form 10-K, which covers property and casualty insurance reserves for claims related to environmental exposures, asbestos and other mass tort claims and environmental and occupational injury and disease claims of former subsidiary railroad and manufacturing operations, as well as contingencies related to the sale of substantially all of AFG’s run-off long-term care insurance business.

Accounting Policies (Policies)	3 Months Ended
Accounting Policies (Policies)	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements for American Financial Group, Inc. and its subsidiaries (“AFG”) are unaudited; however, management believes that all adjustments (consisting only of normal recurring accruals unless otherwise disclosed herein) necessary for fair presentation have been made. The results of operations for interim periods are not necessarily indicative of results to be expected for the year. The financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes necessary to be in conformity with U.S. generally accepted accounting principles (“GAAP”). Certain reclassifications have been made to prior periods 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 March 31, 2016, and prior to the filing of this Form 10-Q, have been evaluated for potential recognition or disclosure herein. The preparation of the financial statements 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. AFG did not have any significant nonrecurring fair value measurements in the first three months of 2016.
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”). 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) through its investment in the CLO debt tranches, it has exposure to CLO losses (limited to the amount AFG invested) and the right to receive CLO benefits that could potentially be significant to the CLOs. On January 1, 2016, AFG adopted ASU 2015-02, which amended certain consolidation accounting guidance, including the VIE guidance that applies to collateralized financing entities such as CLOs. The new guidance affects how fee arrangements with CLO asset managers impact the determination of the primary beneficiary of those entities. Due to the significance of AFG’s investments in the CLOs that it manages, the new guidance did not impact the consolidation of AFG’s currently outstanding CLOs. The new guidance also impacted the consolidation analysis that applies to limited partnerships and similar entities, but did not result in a change to 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 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. This difference was recorded as “appropriated retained earnings — managed investment entities” in AFG’s Balance Sheet. In accordance with the guidance adopted in 2015, 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. At March 31, 2016, assets and liabilities of managed investment entities included $121 million in assets and $91 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 May 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.
Debt Issuance Costs	Debt Issuance Costs Debt issuance costs related to AFG’s outstanding debt are amortized over the life of the related debt using the effective interest method. Effective January 1, 2016, AFG adopted (on a retrospective basis) ASU 2015-03, which requires debt issuance costs to be presented in the balance sheet as a direct reduction in the carrying value of long-term debt (consistent with the treatment of debt discounts) with the periodic amortization of such costs included in interest expense. Debt issuance costs related to AFG’s revolving credit facilities will continue to be included in other assets in AFG’s Balance Sheet. Prior to AFG’s adoption of ASU 2015-03, AFG reported unamortized debt issuance costs as a deferred charge asset (included in other assets) in AFG’s Balance Sheet and the periodic amortization was included in other expenses in AFG’s Statement of Earnings. The updated guidance did not affect the overall recognition and measurement guidance for debt issuance costs. Accordingly, the guidance did not have an overall impact on AFG’s Shareholders’ Equity or results of operations.
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.
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: first three months of 2016 and 2015 — 1.6 million and 1.8 million, respectively. AFG’s weighted average diluted shares outstanding excludes the following anti-dilutive potential common shares related to stock compensation plans: first three months of 2016 and 2015 — 0.8 million and 1.3 million, respectively. Adjustments to net earnings attributable to shareholders in the calculation of diluted earnings per share were nominal in the 2016 and 2015 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.

Sale of Business (Tables)

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Summarized financial information

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



	Three months ended March 31, 2015
Life, accident and health net earned premiums:
Long-term care	$	17
Life operations	3
Net investment income	18
Realized gains (losses) on securities and other income	(2		)
Total revenues	36
Annuity benefits	2
Life, accident and health benefits:
Long-term care	21
Life operations	3
Annuity and supplemental insurance acquisition expenses	3
Other expenses	4
Total costs and expenses	33
Earnings before income taxes	$	3

- 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
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-URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1361-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-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
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-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721663-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=51719941&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721673-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721659-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721671-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721677-107760

+ Details

Segments of Operations (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

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



	Three months ended March 31,
	2016			2015
Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	339		$	313
Specialty casualty	502			490
Specialty financial	132			120
Other specialty	25			23
Total premiums earned	998			946
Net investment income	83			79
Other income	3			6
Total property and casualty insurance	1,084			1,031
Annuity:
Net investment income	315			292
Other income	26			27
Total annuity	341			319
Run-off long-term care and life (a)	12			46
Other	56			44
Total revenues before realized gains (losses)	1,493			1,440
Realized gains (losses) on securities	(18		)	19
Realized losses on subsidiaries	—			(162		)
Total revenues	$	1,475		$	1,297



Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	32		$	7
Specialty casualty	29			28
Specialty financial	23			22
Other specialty	2			3
Other lines	1			—
Total underwriting	87			60
Investment and other income, net	75			73
Total property and casualty insurance	162			133
Annuity	53			75
Run-off long-term care and life (a)	(1		)	4
Other (b)	(40		)	(39		)
Total earnings before realized gains (losses) and income taxes	174			173
Realized gains (losses) on securities	(18		)	19
Realized losses on subsidiaries	—			(162		)
Total earnings before income taxes	$	156		$	30


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


(b)	Includes holding company interest and expenses.

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value

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



	Level 1		Level 2			Level 3		Total
March 31, 2016
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies	$	105	$	218		$	15	$	338
States, municipalities and political subdivisions	—		6,960			92		7,052
Foreign government	—		147			—		147
Residential MBS	—		3,559			213		3,772
Commercial MBS	—		2,098			38		2,136
Asset-backed securities (“ABS”)	—		4,629			501		5,130
Corporate and other	37		14,579			730		15,346
Total AFS fixed maturities	142		32,190			1,589		33,921
Trading fixed maturities	10		239			—		249
Equity securities — AFS and trading	1,359		131			158		1,648
Assets of managed investment entities (“MIE”)	177		3,705			24		3,906
Variable annuity assets (separate accounts) (*)	—		595			—		595
Other investments — equity index call options	—		274			—		274
Other assets — derivatives	—		13			—		13
Total assets accounted for at fair value	$	1,688	$	37,147		$	1,771	$	40,606
Liabilities:
Liabilities of managed investment entities	$	165	$	3,468		$	23	$	3,656
Derivatives in annuity benefits accumulated	—		—			1,450		1,450
Derivatives in long-term debt	—		(8		)	—		(8		)
Other liabilities — derivatives	—		10			—		10
Total liabilities accounted for at fair value	$	165	$	3,470		$	1,473	$	5,108

December 31, 2015
Assets:
Available for sale 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	—		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 — AFS and trading	1,362		217			140		1,719
Assets of managed investment entities	309		3,712			26		4,047
Variable annuity assets (separate accounts) (*)	—		608			—		608
Other investments — equity index call options	—		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


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

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		0.20% – 3.20% over the risk free rate
	Risk margin for uncertainty in cash flows		0.58% reduction in the discount rate
	Surrenders		3% – 21% of indexed account value
	Partial surrenders		2% – 10% of indexed account value
	Annuitizations		0.25% – 1.0% 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
	Balance at December 31, 2015			Net income			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at March 31, 2016
AFS fixed maturities:
U.S. government agency	$	15		$	—		$	—		$	—		$	—		$	—	$	—		$	15
State and municipal	89			—			3			—			—			—		—			92
Residential MBS	224			1			—			—			(7		)	11		(16		)	213
Commercial MBS	39			—			—			—			(1		)	—		—			38
Asset-backed securities	470			—			(6		)	4			(8		)	41		—			501
Corporate and other	633			(2		)	15			86			(7		)	5		—			730
Total AFS fixed maturities	1,470			(1		)	12			90			(23		)	57		(16		)	1,589
Equity securities	140			(17		)	8			12			—			15		—			158
Assets of MIE	26			(2		)	—			—			—			—		—			24
Total Level 3 assets	$	1,636		$	(20	)	$	20		$	102		$	(23	)	$	72	$	(16	)	$	1,771

Embedded derivatives	$	(1,369	)	$	(17	)	$	—		$	(82	)	$	18		$	—	$	—		$	(1,450	)
Total Level 3 liabilities (a)	$	(1,369	)	$	(17	)	$	—		$	(82	)	$	18		$	—	$	—		$	(1,450	)



						Total realized/unrealized gains (losses) included in
	Balance at December 31, 2014			Impact of accounting change (b)		Net income			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at March 31, 2015
AFS fixed maturities:
U.S. government agency	$	15		$	—	$	—		$	—		$	—		$	—		$	—	$	—		$	15
State and municipal	100			—		—			—			—			—			—		(39		)	61
Residential MBS	300			—		(1		)	3			—			(7		)	41		(30		)	306
Commercial MBS	44			—		—			—			—			—			—		—			44
Asset-backed securities	226			—		—			—			5			(41		)	21		—			211
Corporate and other	546			—		—			6			44			(13		)	—		—			583
Total AFS fixed maturities	1,231			—		(1		)	9			49			(61		)	62		(69		)	1,220
Equity securities	93			—		—			(2		)	10			—			—		(17		)	84
Assets of MIE	31			—		(2		)	—			—			—			—		—			29
Total Level 3 assets	$	1,355		$	—	$	(3	)	$	7		$	59		$	(61	)	$	62	$	(86	)	$	1,333

Liabilities of MIE	$	(2,701	)	$	2,701	$	—		$	—		$	—		$	—		$	—	$	—		$	—
Embedded derivatives	(1,160		)	—		(50		)	—			(47		)	14			—		—			(1,243		)
Total Level 3 liabilities (a)	$	(3,861	)	$	2,701	$	(50	)	$	—		$	(47	)	$	14		$	—	$	—		$	(1,243	)


(a)	As discussed above, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets.


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

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 are summarized below (in millions):



	Carrying		Fair Value
	Value		Total		Level 1		Level 2		Level 3
March 31, 2016
Financial assets:
Cash and cash equivalents	$	1,231	$	1,231	$	1,231	$	—	$	—
Mortgage loans	1,097		1,108		—		—		1,108
Policy loans	198		198		—		—		198
Total financial assets not accounted for at fair value	$	2,526	$	2,537	$	1,231	$	—	$	1,306
Financial liabilities:
Annuity benefits accumulated (*)	$	27,613	$	27,210	$	—	$	—	$	27,210
Long-term debt	1,006		1,125		—		1,110		15
Total financial liabilities not accounted for at fair value	$	28,619	$	28,335	$	—	$	1,110	$	27,225

December 31, 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	1,000		1,120		—		1,105		15
Total financial liabilities not accounted for at fair value	$	27,422	$	26,608	$	—	$	1,105	$	25,503


(*)	Excludes $199 million and $200 million of life contingent annuities in the payout phase at March 31, 2016 and December 31, 2015, respectively.

Investments (Tables)

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Available for sale fixed maturities and equity securities

Available for sale fixed maturities and equity securities at March 31, 2016 and December 31, 2015, consisted of the following (in millions):



	March 31, 2016												December 31, 2015
	Amortized Cost		Gross Unrealized					Net Unrealized			Fair Value		Amortized Cost		Gross Unrealized					Net Unrealized			Fair Value
	Amortized Cost		Gains		Losses			Net Unrealized			Fair Value		Amortized Cost		Gains		Losses			Net Unrealized			Fair Value
Fixed maturities:
U.S. Government and government agencies	$	333	$	7	$	(2	)	$	5		$	338	$	305	$	5	$	(3	)	$	2		$	307
States, municipalities and political subdivisions	6,691		369		(8		)	361			7,052		6,642		249		(35		)	214			6,856
Foreign government	139		8		—			8			147		147		7		—			7			154
Residential MBS	3,508		290		(26		)	264			3,772		3,236		308		(15		)	293			3,529
Commercial MBS	2,046		91		(1		)	90			2,136		2,111		77		(1		)	76			2,187
Asset-backed securities	5,172		29		(71		)	(42		)	5,130		4,961		25		(52		)	(27		)	4,934
Corporate and other	14,860		658		(172		)	486			15,346		14,163		422		(268		)	154			14,317
Total fixed maturities	$	32,749	$	1,452	$	(280	)	$	1,172		$	33,921	$	31,565	$	1,093	$	(374	)	$	719		$	32,284

Equity Securities:
Common stocks	$	1,041	$	129	$	(81	)	$	48		$	1,089	$	1,051	$	146	$	(79	)	$	67		$	1,118
Perpetual preferred stocks	434		22		(9		)	13			447		418		23		(6		)	17			435
Total equity securities	$	1,475	$	151	$	(90	)	$	61		$	1,536	$	1,469	$	169	$	(85	)	$	84		$	1,553

Available for sale securities in a continuous unrealized loss position



	Less Than Twelve Months							Twelve Months or More
	Unrealized Loss			Fair Value		Fair Value as % of Cost		Unrealized Loss			Fair Value		Fair Value as % of Cost
March 31, 2016
Fixed maturities:
U.S. Government and government agencies	$	—		$	12	100	%	$	(2	)	$	15	88	%
States, municipalities and political subdivisions	(3		)	213		99	%	(5		)	141		97	%
Residential MBS	(14		)	748		98	%	(12		)	243		95	%
Commercial MBS	—			50		100	%	(1		)	15		94	%
Asset-backed securities	(60		)	2,377		98	%	(11		)	449		98	%
Corporate and other	(130		)	2,026		94	%	(42		)	324		89	%
Total fixed maturities	$	(207	)	$	5,426	96	%	$	(73	)	$	1,187	94	%

Equity securities:
Common stocks	$	(81	)	$	498	86	%	$	—		$	2	100	%
Perpetual preferred stocks	(5		)	117		96	%	(4		)	22		85	%
Total equity securities	$	(86	)	$	615	88	%	$	(4	)	$	24	86	%

December 31, 2015
Fixed maturities:
U.S. Government and government agencies	$	(1	)	$	112	99	%	$	(2	)	$	15	88	%
States, municipalities and political subdivisions	(33		)	1,419		98	%	(2		)	50		96	%
Residential MBS	(7		)	438		98	%	(8		)	201		96	%
Commercial MBS	—			95		100	%	(1		)	28		97	%
Asset-backed securities	(42		)	2,706		98	%	(10		)	455		98	%
Corporate and other	(229		)	4,661		95	%	(39		)	165		81	%
Total fixed maturities	$	(312	)	$	9,431	97	%	$	(62	)	$	914	94	%

Equity securities:
Common stocks	$	(79	)	$	509	87	%	$	—		$	—	—	%
Perpetual preferred stocks	(3		)	91		97	%	(3		)	22		88	%
Total equity securities	$	(82	)	$	600	88	%	$	(3	)	$	22	88	%

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



	2016			2015
Balance at January 1	$	160		$	170
Additional credit impairments on:
Previously impaired securities	2			1
Securities without prior impairments	—			—
Reductions due to sales or redemptions	(2		)	(3		)
Balance at March 31	$	160		$	168

Available for sale fixed maturity securities by contractual maturity date



	Amortized		Fair Value
	Cost		Amount		%
Maturity
One year or less	$	999	$	1,014	3	%
After one year through five years	5,348		5,612		17	%
After five years through ten years	11,678		12,025		35	%
After ten years	3,998		4,232		13	%
	22,023		22,883		68	%
ABS (average life of approximately 5 years)	5,172		5,130		15	%
MBS (average life of approximately 4-1/2 years)	5,554		5,908		17	%
Total	$	32,749	$	33,921	100	%

Components of the net unrealized gain on securities, included in Accumulated Other Comprehensive Income

The following table shows (in millions) the components of the net unrealized gain on securities that is included in AOCI in AFG’s Balance Sheet.



	Pretax			Deferred Tax and Amounts Attributable to Noncontrolling Interests			Net
March 31, 2016
Unrealized gain on:
Fixed maturities — annuity segment (*)	$	910		$	(319	)	$	591
Fixed maturities — all other	262			(98		)	164
Total fixed maturities	1,172			(417		)	755
Equity securities	61			(21		)	40
Total investments	1,233			(438		)	795
Deferred policy acquisition costs — annuity segment	(400		)	140			(260		)
Annuity benefits accumulated	(125		)	44			(81		)
Life, accident and health reserves	(1		)	—			(1		)
Unearned revenue	20			(7		)	13
Total net unrealized gain on marketable securities	$	727		$	(261	)	$	466

December 31, 2015
Unrealized gain on:
Fixed maturities — annuity segment (*)	$	523		$	(183	)	$	340
Fixed maturities — all other	196			(72		)	124
Total fixed maturities	719			(255		)	464
Equity securities	84			(30		)	54
Total investments	803			(285		)	518
Deferred policy acquisition costs — annuity segment	(233		)	82			(151		)
Annuity benefits accumulated	(64		)	22			(42		)
Unearned revenue	11			(4		)	7
Total net unrealized gain on marketable securities	$	517		$	(185	)	$	332


(*)	Unrealized gains on fixed maturity investments supporting AFG’s annuity benefits accumulated.

Net investment income earned and investment expenses incurred

The following table shows (in millions) investment income earned and investment expenses incurred.



	Three months ended March 31,
	2016			2015
Investment income:
Fixed maturities	$	367		$	352
Equity securities	19			17
Equity in earnings of partnerships and similar investments	11			3
Other	19			21
Gross investment income	416			393
Investment expenses	(5		)	(5		)
Net investment income	$	411		$	388

Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments

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



	Three months ended March 31, 2016												Three months ended March 31, 2015
	Realized gains (losses)												Realized gains (losses)
	Before Impairments			Impairments			Total			Change in Unrealized			Before Impairments			Impairments			Total			Change in Unrealized
Fixed maturities	$	14		$	(16	)	$	(2	)	$	453		$	3		$	(5	)	$	(2	)	$	218
Equity securities	23			(41		)	(18		)	(23		)	21			(2		)	19			6
Other (*)	(3		)	5			2			(220		)	(1		)	3			2			(137		)
Total pretax	34			(52		)	(18		)	210			23			(4		)	19			87
Tax effects	(12		)	19			7			(74		)	(8		)	1			(7		)	(30		)
Noncontrolling interests	—			1			1			(2		)	—			—			—			(1		)
Net of tax noncontrolling interests	$	22		$	(32	)	$	(10	)	$	134		$	15		$	(3	)	$	12		$	56


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

Gross realized gains and losses on available for sale fixed maturity and equity security investments



	Three months ended March 31,
	2016			2015
Fixed maturities:
Gross gains	$	14		$	5
Gross losses	(1		)	—
Equity securities:
Gross gains	25			21
Gross losses	—			—

Derivatives (Tables)

3 Months Ended

Mar. 31, 2016

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):



		March 31, 2016				December 31, 2015
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	127	$	—	$	130	$	—
Public company warrants	Equity securities	2		—		4		—
Fixed-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		1,450		—		1,369
Equity index call options	Other investments	274		—		241		—
Reinsurance contracts (embedded derivative)	Other liabilities	—		10		—		7
		$	403	$	1,460	$	375	$	1,376

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



		Three months ended March 31,
Derivative	Statement of Earnings Line	2016			2015
MBS with embedded derivatives	Realized gains on securities	$	1		$	(2	)
Public company warrants	Realized gains on securities	(2		)	—
Fixed-indexed annuities (embedded derivative)	Annuity benefits	(17		)	(50		)
Equity index call options	Annuity benefits	(40		)	20
Reinsurance contracts (embedded derivative)	Net investment income	(3		)	—
		$	(61	)	$	(32	)

Deferred Policy Acquisition Costs (Tables)

3 Months Ended

Mar. 31, 2016

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, 2015	$	226		$	1,018		$	119		$	55		$	1,192		$	(234	)	$	958		$	1,184
Additions	132			68			5			—			73			—			73			205
Amortization:
Periodic amortization	(134		)	(25		)	(5		)	(2		)	(32		)	—			(32		)	(166		)
Included in realized gains	—			2			—			—			2			—			2			2
Change in unrealized	—			—			—			—			—			(170		)	(170		)	(170		)
Balance at March 31, 2016	$	224		$	1,063		$	119		$	53		$	1,235		$	(404	)	$	831		$	1,055

Balance at December 31, 2014	$	221		$	925		$	132		$	74		$	1,131		$	(531	)	$	600		$	821
Additions	121			44			3			—			47			—			47			168
Amortization:
Periodic amortization	(126		)	(29		)	(7		)	(3		)	(39		)	—			(39		)	(165		)
Included in realized gains	—			2			—			—			2			—			2			2
Foreign currency translation	1			—			—			—			—			—			—			1
Change in unrealized	—			—			—			—			—			(71		)	(71		)	(71		)
Balance at March 31, 2015	$	217		$	942		$	128		$	71		$	1,141		$	(602	)	$	539		$	756

Managed Investment Entities (Tables)

3 Months Ended

Mar. 31, 2016

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):



	Three months ended March 31,
	2016			2015
Gains (losses) on change in fair value of assets/liabilities (a):
Assets	$	(1	)	$	33
Liabilities	(12		)	(36		)
Management fees paid to AFG	4			4
CLO earnings (losses) attributable to AFG shareholders (b)	(7		)	3


(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

Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

Long-term debt consisted of the following (in millions):



	March 31, 2016							December 31, 2015
	Principal		Debt Issue Costs			Carrying Value		Principal		Debt Issue Costs			Carrying Value
Direct Senior Obligations of AFG:
9-7/8% Senior Notes due June 2019	$	350	$	(1	)	$	349	$	350	$	(1	)	$	349
6-3/8% Senior Notes due June 2042	230		(7		)	223		230		(7		)	223
5-3/4% Senior Notes due August 2042	125		(4		)	121		125		(4		)	121
Other	3		—			3		3		—			3
	708		(12		)	696		708		(12		)	696

Direct Subordinated Obligations of AFG:
6-1/4% Subordinated Debentures due September 2054	150		(5		)	145		150		(5		)	145
6% Subordinated Debentures due November 2055	150		(5		)	145		150		(5		)	145
	300		(10		)	290		300		(10		)	290

Subsidiaries:
National Interstate bank credit facility	12		—			12		12		—			12
	$	1,020	$	(22	)	$	998	$	1,020	$	(22	)	$	998

Summary of secured and unsecured long-term debt

As shown below (principal amount, in millions), the majority of AFG’s long-term debt is unsecured obligations of the holding company and its subsidiaries:



	March 31, 2016		December 31, 2015
Senior unsecured obligations	$	720	$	720
Subordinated unsecured obligations	300		300
	$	1,020	$	1,020

- 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)

3 Months Ended

Mar. 31, 2016

Stockholders' Equity Note [Abstract]

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
Three months ended March 31, 2016
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period				$	192		$	(67	)	$	125		$	(1	)	$	124
Reclassification adjustment for realized (gains) losses included in net earnings (a)				18			(7		)	11			(1		)	10
Total net unrealized gains on securities (b)	$	332		210			(74		)	136			(2		)	134			$	466
Net unrealized gains on cash flow hedges	1			5			(2		)	3			—			3			4
Foreign currency translation adjustments	(22		)	3			3			6			—			6			(16		)
Pension and other postretirement plans adjustments	(7		)	1			—			1			—			1			(6		)
Total	$	304		$	219		$	(73	)	$	146		$	(2	)	$	144		$	448

Three months ended March 31, 2015
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period				$	106		$	(37	)	$	69		$	(1	)	$	68
Reclassification adjustment for realized (gains) losses included in net earnings (a)				(19		)	7			(12		)	—			(12		)
Total net unrealized gains on securities	$	743		87			(30		)	57			(1		)	56			$	799
Net unrealized gains on cash flow hedges	—			1			—			1			—			1			1
Foreign currency translation adjustments	(8		)	(5		)	(3		)	(8		)	—			(8		)	(16		)
Pension and other postretirement plans adjustments	(8		)	—			—			—			—			—			(8		)
Total	$	727		$	83		$	(33	)	$	50		$	(1	)	$	49		$	776


(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 (losses) on securities
	Tax		Provision for income taxes
	Attributable to noncontrolling interests		Net earnings (loss) attributable to noncontrolling interests


(b)	Includes net unrealized gains of $46 million at March 31, 2016 and $51 million at December 31, 2015 related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2016

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 AFG’s Statement of Earnings (dollars in millions):



	Three months ended March 31,
	2016					2015
	Amount			% of EBT		Amount			% of EBT
Earnings before income taxes (“EBT”)	$	156				$	30

Income taxes at statutory rate	$	55		35	%	$	10		35	%
Effect of:
Tax exempt interest	(7		)	(4	%)	(7		)	(23	%)
Change in valuation allowance	1			1	%	(1		)	(3	%)
Subsidiaries not in AFG’s tax return	1			—	%	1			3	%
Other	2			1	%	2			5	%
Provision for income taxes as shown in the statement of earnings	$	52		33	%	$	5		17	%

Accounting Policies (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Variable Interest Entity [Line Items]
Assets	$ 3,906		$ 4,047
Liabilities	$ 3,656		$ 3,781
Weighted average common shares adjustment related to stock-based compensation	1.6	1.8
Anti-dilutive potential common shares related to stock-based compensation plans	0.8	1.3
Maturities of short term investments	3 months
New collateralized loan obligation temporary warehousing entities [Member]
Variable Interest Entity [Line Items]
Assets	$ 121
Liabilities	$ 91

Sale of Business (Details) - Run-off long-term care insurance business [Member] $ in Millions	3 Months Ended
	Mar. 31, 2015 USD ($)
Life, accident and health net earned premiums:
Long-term care	$ 17
Life operations	3
Net investment income	18
Realized gains (losses) on securities and other income	(2)
Total revenues	36
Annuity benefits	2
Life, accident and health benefits:
Long-term care	21
Life operations	3
Annuity and supplemental insurance acquisition expenses	3
Other expenses	4
Total costs and expenses	33
Earnings before income taxes	$ 3

Sale of Business (Details Textual) $ in Millions			1 Months Ended	3 Months Ended
Sale of Business (Details Textual) $ in Millions	Dec. 24, 2015 USD ($)	Mar. 31, 2015	Apr. 30, 2016 USD ($)	Mar. 31, 2016 USD ($) policy	Mar. 31, 2015 USD ($)	Nov. 30, 2015
Sale of Business
Realized gains (losses) on subsidiaries				$ 0	$ (162)
Run-off long-term care insurance business [Member]
Sale of Business
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
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
Total expected tax benefits proceeds from the sale of business				97
Loss on subsidiaries, pretax	(166)				(162)
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%	4.00%
Run-off long-term care insurance business [Member] \| Reduced estimated tax payments [Member]
Sale of Business
Tax benefits proceeds from the sale of business				$ 66
Run-off long-term care insurance business [Member] \| Carryback of the tax-basis capital loss [Member] \| Subsequent event [Member]
Sale of Business
Tax benefits proceeds from the sale of business			$ 30
AFG [Member] \| Run-off long-term care insurance business [Member]
Sale of Business
Number of long-term care insurance policies \| policy				1,700
Long-term care insurance reserves				$ 35

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

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Segment Reporting Information [Line Items]

Total premiums earned

$ 998

$ 946

Net investment income

411

388

Other income

Revenues before realized gains (losses)

1,493

1,440

Realized gains (losses) on securities

(18)

Realized losses on subsidiaries

(162)

Total revenues

1,475

1,297

Property and Casualty Insurance [Member]

Segment Reporting Information [Line Items]

Net investment income

Other income

Revenues before realized gains (losses)

1,084

1,031

Annuity [Member]

Segment Reporting Information [Line Items]

Net investment income

315

292

Other income

Revenues before realized gains (losses)

341

319

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

Segment Reporting Information [Line Items]

Revenues before realized gains (losses)

^[1]

Other [Member]

Segment Reporting Information [Line Items]

Revenues before realized gains (losses)

Specialty Property and transportation [Member]

Segment Reporting Information [Line Items]

Total premiums earned

339

313

Specialty casualty [Member]

Segment Reporting Information [Line Items]

Total premiums earned

502

490

Specialty financial [Member]

Segment Reporting Information [Line Items]

Total premiums earned

132

120

Specialty Other [Member]

Segment Reporting Information [Line Items]

Total premiums earned

$ 25

$ 23

[1]	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

Mar. 31, 2016

Mar. 31, 2015

Segment Reporting Information [Line Items]

Earnings before realized gains (losses) and income taxes

$ 174

$ 173

Realized gains (losses) on securities

(18)

Realized losses on subsidiaries

(162)

Earnings before income taxes

156

Property and Casualty Insurance [Member]

Segment Reporting Information [Line Items]

Property and casualty insurance underwriting

Investment and other income, net

Earnings before realized gains (losses) and income taxes

162

133

Annuity [Member]

Segment Reporting Information [Line Items]

Earnings before realized gains (losses) and income taxes

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

Segment Reporting Information [Line Items]

Earnings before realized gains (losses) and income taxes

^[1]

(1)

Other [Member]

Segment Reporting Information [Line Items]

Earnings before realized gains (losses) and income taxes

^[2]

(40)

(39)

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

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

$ 1

$ 0

[1]	AFG sold substantially all of its run-off long-term care insurance business in December 2015
[2]	Includes holding company interest and expenses.

Segments of Operations (Details Textual)	3 Months Ended
Segments of Operations (Details Textual)	Mar. 31, 2016 segment
Segment Reporting [Abstract]
Number of segments	4

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

Mar. 31, 2016

Dec. 31, 2015

Assets:

Available for sale (AFS) fixed maturities

$ 33,921

$ 32,284

Trading fixed maturities

249

254

Assets of managed investment entities (“MIE”)

3,906

4,047

Variable annuity assets (separate accounts)

^[1]

595

608

Total assets accounted for at fair value

40,606

39,155

Liabilities:

Liabilities of managed investment entities

3,656

3,781

Total liabilities accounted for at fair value

5,108

5,156

Annuity benefits accumulated [Member]

Liabilities:

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

1,450

1,369

Derivatives in long-term debt [Member]

Liabilities:

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

(8)

(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

338

307

States, municipalities and political subdivisions [Member]

Assets:

Available for sale (AFS) fixed maturities

7,052

6,856

Foreign government [Member]

Assets:

Available for sale (AFS) fixed maturities

147

154

Residential Mortgage Backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

3,772

3,529

Commercial Mortgage Backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

2,136

2,187

Asset-backed Securities [Member]

Assets:

Available for sale (AFS) fixed maturities

5,130

4,934

All other corporate [Member]

Assets:

Available for sale (AFS) fixed maturities

15,346

14,317

Fixed maturities [Member]

Assets:

Available for sale (AFS) fixed maturities

33,921

32,284

Trading fixed maturities

249

254

Equity securities [Member]

Assets:

Equity securities — AFS and trading

1,648

1,719

Other assets — derivatives [Member]

Assets:

Derivatives included in other investments and other assets

Level 1 [Member]

Assets:

Assets of managed investment entities (“MIE”)

177

309

Variable annuity assets (separate accounts)

^[1]

Total assets accounted for at fair value

1,688

1,834

Liabilities:

Liabilities of managed investment entities

165

289

Total liabilities accounted for at fair value

165

289

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

105

100

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

142

150

Trading fixed maturities

Level 1 [Member] | Equity securities [Member]

Assets:

Equity securities — AFS and trading

1,359

1,362

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”)

3,705

3,712

Variable annuity assets (separate accounts)

^[1]

595

608

Total assets accounted for at fair value

37,147

35,685

Liabilities:

Liabilities of managed investment entities

3,468

Total liabilities accounted for at fair value

3,470

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

(8)

(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

218

192

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

Assets:

Available for sale (AFS) fixed maturities

6,960

6,767

Level 2 [Member] | Foreign government [Member]

Assets:

Available for sale (AFS) fixed maturities

147

154

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

Assets:

Available for sale (AFS) fixed maturities

3,559

3,305

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

Assets:

Available for sale (AFS) fixed maturities

2,098

2,148

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

Assets:

Available for sale (AFS) fixed maturities

4,629

4,464

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

Assets:

Available for sale (AFS) fixed maturities

14,579

13,634

Level 2 [Member] | Fixed maturities [Member]

Assets:

Available for sale (AFS) fixed maturities

32,190

30,664

Trading fixed maturities

239

241

Level 2 [Member] | Equity securities [Member]

Assets:

Equity securities — AFS and trading

131

217

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

1,771

1,636

Liabilities:

Liabilities of managed investment entities

Total liabilities accounted for at fair value

1,473

1,393

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

Liabilities:

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

1,450

1,369

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

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

213

224

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

501

470

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

Assets:

Available for sale (AFS) fixed maturities

730

633

Level 3 [Member] | Fixed maturities [Member]

Assets:

Available for sale (AFS) fixed maturities

1,589

1,470

Trading fixed maturities

Level 3 [Member] | Equity securities [Member]

Assets:

Equity securities — AFS and trading

158

140

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

Assets:

Derivatives included in other investments and other assets

Equity index call options [Member] | Other investments — derivatives [Member]

Assets:

Derivatives included in other investments and other assets

274

241

Equity index call options [Member] | Level 1 [Member] | Other investments — derivatives [Member]

Assets:

Derivatives included in other investments and other assets

Equity index call options [Member] | Level 2 [Member] | Other investments — derivatives [Member]

Assets:

Derivatives included in other investments and other assets

274

241

Equity index call options [Member] | Level 3 [Member] | Other investments — 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) - Embedded derivatives [Member]	3 Months Ended
	Mar. 31, 2016
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	0.20%
Surrenders	3.00%
Partial surrenders	2.00%
Annuitizations	0.25%
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	3.20%
Surrenders	21.00%
Partial surrenders	10.00%
Annuitizations	1.00%
Deaths	4.00%
Budgeted option costs	3.50%

Fair Value Measurements (Details 2) - USD ($) $ in Millions	3 Months Ended
Fair Value Measurements (Details 2) - USD ($) $ in Millions	Mar. 31, 2016	Mar. 31, 2015
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	$ 1,636	$ 1,355
Impact of accounting change		0
Total realized/unrealized gains (losses) included in Net income	(20)	(3)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	20	7
Purchases and issuances	102	59
Sales and settlements	(23)	(61)
Transfer into Level 3	72	62
Transfer out of Level 3	(16)	(86)
Financial assets, Ending Balance	1,771	1,333
US Treasury and Government [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	15	15
Impact of accounting change		0
Total realized/unrealized gains (losses) included in Net income	0	0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	0
Purchases and issuances	0	0
Sales and settlements	0	0
Transfer into Level 3	0	0
Transfer out of Level 3	0	0
Financial assets, Ending Balance	15	15
States, municipalities and political subdivisions [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	89	100
Impact of accounting change		0
Total realized/unrealized gains (losses) included in Net income	0	0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	3	0
Purchases and issuances	0	0
Sales and settlements	0	0
Transfer into Level 3	0	0
Transfer out of Level 3	0	(39)
Financial assets, Ending Balance	92	61
Residential Mortgage Backed Securities [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	224	300
Impact of accounting change		0
Total realized/unrealized gains (losses) included in Net income	1	(1)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	3
Purchases and issuances	0	0
Sales and settlements	(7)	(7)
Transfer into Level 3	11	41
Transfer out of Level 3	(16)	(30)
Financial assets, Ending Balance	213	306
Commercial Mortgage Backed Securities [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	39	44
Impact of accounting change		0
Total realized/unrealized gains (losses) included in Net income	0	0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	0
Purchases and issuances	0	0
Sales and settlements	(1)	0
Transfer into Level 3	0	0
Transfer out of Level 3	0	0
Financial assets, Ending Balance	38	44
Asset-backed Securities [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	470	226
Impact of accounting change		0
Total realized/unrealized gains (losses) included in Net income	0	0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	(6)	0
Purchases and issuances	4	5
Sales and settlements	(8)	(41)
Transfer into Level 3	41	21
Transfer out of Level 3	0	0
Financial assets, Ending Balance	501	211
All other corporate [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	633	546
Impact of accounting change		0
Total realized/unrealized gains (losses) included in Net income	(2)	0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	15	6
Purchases and issuances	86	44
Sales and settlements	(7)	(13)
Transfer into Level 3	5	0
Transfer out of Level 3	0	0
Financial assets, Ending Balance	730	583
Fixed maturities [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	1,470	1,231
Impact of accounting change		0
Total realized/unrealized gains (losses) included in Net income	(1)	(1)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	12	9
Purchases and issuances	90	49
Sales and settlements	(23)	(61)
Transfer into Level 3	57	62
Transfer out of Level 3	(16)	(69)
Financial assets, Ending Balance	1,589	1,220
Equity securities [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	140	93
Impact of accounting change		0
Total realized/unrealized gains (losses) included in Net income	(17)	0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	8	(2)
Purchases and issuances	12	10
Sales and settlements	0	0
Transfer into Level 3	15	0
Transfer out of Level 3	0	(17)
Financial assets, Ending Balance	158	84
Assets of Managed Investment Entities [Member]
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	26	31
Impact of accounting change		0
Total realized/unrealized gains (losses) included in Net income	(2)	(2)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)	0	0
Purchases and issuances	0	0
Sales and settlements	0	0
Transfer into Level 3	0	0
Transfer out of Level 3	0	0
Financial assets, Ending Balance	$ 24	$ 29

Fair Value Measurements (Details 3) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

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

Financial liabilities, Beginning Balance

$ (1,369)

$ (3,861)

Impact of accounting change

2,701

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

(17)

(50)

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

Purchases and issuances

(82)

(47)

Sales and settlements

Transfer into Level 3

Transfer out of Level 3

Financial liabilities, Ending Balance

^[1]

(1,450)

(1,243)

Liabilities of Managed Investment Entities [Member]

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

Financial liabilities, Beginning Balance

(2,701)

Impact of accounting change

^[2]

2,701

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

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

Purchases and issuances

Sales and settlements

Transfer into Level 3

Transfer out of Level 3

Financial liabilities, Ending Balance

Embedded derivatives [Member]

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

Financial liabilities, Beginning Balance

(1,369)

(1,160)

Impact of accounting change

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

(17)

(50)

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

Purchases and issuances

(82)

(47)

Sales and settlements

Transfer into Level 3

Transfer out of Level 3

Financial liabilities, Ending Balance

$ (1,450)

$ (1,243)

[1]	As discussed above, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets.
[2]	The impact of implementing new guidance adopted in 2015, as discussed above and in Note A — “Accounting Policies — Managed Investment Entities.”

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

Mar. 31, 2016

Dec. 31, 2015

Mar. 31, 2015

Dec. 31, 2014

Financial assets:

Cash and cash equivalents

$ 1,231

$ 1,220

$ 1,212

$ 1,343

Mortgage loans

1,097

1,067

Policy loans

198

201

Financial liabilities:

Long-term debt

998

Level 1 [Member]

Financial assets:

Cash and cash equivalents

1,231

1,220

Mortgage loans

Policy loans

Total financial assets not accounted for at fair value

1,231

1,220

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

1,110

1,105

Total financial liabilities not accounted for at fair value

1,110

1,105

Level 3 [Member]

Financial assets:

Cash and cash equivalents

Mortgage loans

1,108

1,074

Policy loans

198

201

Total financial assets not accounted for at fair value

1,306

1,275

Financial liabilities:

Annuity benefits accumulated

^[1]

27,210

25,488

Long-term debt

Total financial liabilities not accounted for at fair value

27,225

25,503

Carrying Value [Member]

Financial assets:

Cash and cash equivalents

1,231

1,220

Mortgage loans

1,097

1,067

Policy loans

198

201

Total financial assets not accounted for at fair value

2,526

2,488

Financial liabilities:

Annuity benefits accumulated

^[1]

27,613

26,422

Long-term debt

1,006

1,000

Total financial liabilities not accounted for at fair value

28,619

27,422

Fair Value [Member]

Financial assets:

Cash and cash equivalents

1,231

1,220

Mortgage loans

1,108

1,074

Policy loans

198

201

Total financial assets not accounted for at fair value

2,537

2,495

Financial liabilities:

Annuity benefits accumulated

^[1]

27,210

25,488

Long-term debt

1,125

1,120

Total financial liabilities not accounted for at fair value

$ 28,335

$ 26,608

[1]	Excludes $199 million and $200 million of life contingent annuities in the payout phase at March 31, 2016 and December 31, 2015, respectively.

Fair Value Measurements (Details Textual) $ in Millions	3 Months Ended
Fair Value Measurements (Details Textual) $ in Millions	Mar. 31, 2016 USD ($) professional stock	Mar. 31, 2015 USD ($) stock	Dec. 31, 2015 USD ($)
Fair Value Measurements (Textual) [Abstract]
AFG's internal investment professionals \| professional	25
Number of stocks transferred from Level 1 to Level 2 \| stock		0
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	73.00%
Level 3 assets that were priced using non-binding broker quotes	$ 1,290
Life contingent annuities	$ 199		$ 200
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 annuties (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 annuties (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%
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	$ 1,450
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%
Common stocks [Member]
Fair Value Measurements (Textual) [Abstract]
Number of stocks transferred from Level 2 to Level 1 \| stock		1
Fair value of assets transferred from Level 2 to Level 1, during the first three months		$ 53
Perpetual preferred stocks [Member]
Fair Value Measurements (Textual) [Abstract]
Number of stocks transferred from Level 2 to Level 1 \| stock	1	2
Fair value of assets transferred from Level 2 to Level 1, during the first three months	$ 8	$ 5
Number of stocks transferred from Level 1 to Level 2 \| stock	3
Fair value of assets transferred from Level 1 to Level 2, during the first three months	$ 6
Run-off long-term care insurance business [Member]
Fair Value Measurements (Textual) [Abstract]
Estimated sale proceeds of the run-off long-term care insurance business		$ 14

Investments (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	$ 32,749	$ 31,565
Available for sale (AFS) fixed maturities	33,921	32,284
Equity securities, Available for sale, Amortized Cost	1,475	1,469
Equity securities, Available for sale, Fair Value	1,536	1,553
U.S. Government and government agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	333	305
Fixed maturities, Available for sale, Gross Unrealized, Gains	7	5
Fixed maturities, Available for sale, Gross Unrealized, Losses	(2)	(3)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	5	2
Available for sale (AFS) fixed maturities	338	307
States, municipalities and political subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	6,691	6,642
Fixed maturities, Available for sale, Gross Unrealized, Gains	369	249
Fixed maturities, Available for sale, Gross Unrealized, Losses	(8)	(35)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	361	214
Available for sale (AFS) fixed maturities	7,052	6,856
Foreign government [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	139	147
Fixed maturities, Available for sale, Gross Unrealized, Gains	8	7
Fixed maturities, Available for sale, Gross Unrealized, Losses	0	0
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	8	7
Available for sale (AFS) fixed maturities	147	154
Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	3,508	3,236
Fixed maturities, Available for sale, Gross Unrealized, Gains	290	308
Fixed maturities, Available for sale, Gross Unrealized, Losses	(26)	(15)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	264	293
Available for sale (AFS) fixed maturities	3,772	3,529
Commercial Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	2,046	2,111
Fixed maturities, Available for sale, Gross Unrealized, Gains	91	77
Fixed maturities, Available for sale, Gross Unrealized, Losses	(1)	(1)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	90	76
Available for sale (AFS) fixed maturities	2,136	2,187
Asset-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	5,172	4,961
Fixed maturities, Available for sale, Gross Unrealized, Gains	29	25
Fixed maturities, Available for sale, Gross Unrealized, Losses	(71)	(52)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	(42)	(27)
Available for sale (AFS) fixed maturities	5,130	4,934
All other corporate [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	14,860	14,163
Fixed maturities, Available for sale, Gross Unrealized, Gains	658	422
Fixed maturities, Available for sale, Gross Unrealized, Losses	(172)	(268)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	486	154
Available for sale (AFS) fixed maturities	15,346	14,317
Fixed maturities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, Available for sale, Amortized Cost	32,749	31,565
Fixed maturities, Available for sale, Gross Unrealized, Gains	1,452	1,093
Fixed maturities, Available for sale, Gross Unrealized, Losses	(280)	(374)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	1,172	719
Available for sale (AFS) fixed maturities	33,921	32,284
Common stocks [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity securities, Available for sale, Amortized Cost	1,041	1,051
Equity securities, Available for sale, Gross Unrealized, Gains	129	146
Equity securities, Available for sale, Gross Unrealized, Losses	(81)	(79)
Equity securities, Available for sale, Net Unrealized, Gains (Losses)	48	67
Equity securities, Available for sale, Fair Value	1,089	1,118
Perpetual preferred stocks [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity securities, Available for sale, Amortized Cost	434	418
Equity securities, Available for sale, Gross Unrealized, Gains	22	23
Equity securities, Available for sale, Gross Unrealized, Losses	(9)	(6)
Equity securities, Available for sale, Net Unrealized, Gains (Losses)	13	17
Equity securities, Available for sale, Fair Value	447	435
Equity securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Equity securities, Available for sale, Amortized Cost	1,475	1,469
Equity securities, Available for sale, Gross Unrealized, Gains	151	169
Equity securities, Available for sale, Gross Unrealized, Losses	(90)	(85)
Equity securities, Available for sale, Net Unrealized, Gains (Losses)	61	84
Equity securities, Available for sale, Fair Value	$ 1,536	$ 1,553

Investments (Details 1) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
U.S. Government and government agencies [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	$ 12	$ 112
Fair Value as % of Cost - Less than twelve months	100.00%	99.00%
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	$ (3)	$ (33)
Fair Value - Less than twelve months	$ 213	$ 1,419
Fair Value as % of Cost - Less than twelve months	99.00%	98.00%
Unrealized Loss - Twelve months or more	$ (5)	$ (2)
Fair Value - Twelve months or more	$ 141	$ 50
Fair Value as % of Cost - Twelve months or more	97.00%	96.00%
Residential Mortgage Backed Securities [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (14)	$ (7)
Fair Value - Less than twelve months	$ 748	$ 438
Fair Value as % of Cost - Less than twelve months	98.00%	98.00%
Unrealized Loss - Twelve months or more	$ (12)	$ (8)
Fair Value - Twelve months or more	$ 243	$ 201
Fair Value as % of Cost - Twelve months or more	95.00%	96.00%
Commercial Mortgage Backed Securities [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ 0	$ 0
Fair Value - Less than twelve months	$ 50	$ 95
Fair Value as % of Cost - Less than twelve months	100.00%	100.00%
Unrealized Loss - Twelve months or more	$ (1)	$ (1)
Fair Value - Twelve months or more	$ 15	$ 28
Fair Value as % of Cost - Twelve months or more	94.00%	97.00%
Asset-backed Securities [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (60)	$ (42)
Fair Value - Less than twelve months	$ 2,377	$ 2,706
Fair Value as % of Cost - Less than twelve months	98.00%	98.00%
Unrealized Loss - Twelve months or more	$ (11)	$ (10)
Fair Value - Twelve months or more	$ 449	$ 455
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	$ (130)	$ (229)
Fair Value - Less than twelve months	$ 2,026	$ 4,661
Fair Value as % of Cost - Less than twelve months	94.00%	95.00%
Unrealized Loss - Twelve months or more	$ (42)	$ (39)
Fair Value - Twelve months or more	$ 324	$ 165
Fair Value as % of Cost - Twelve months or more	89.00%	81.00%
Fixed maturities [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (207)	$ (312)
Fair Value - Less than twelve months	$ 5,426	$ 9,431
Fair Value as % of Cost - Less than twelve months	96.00%	97.00%
Unrealized Loss - Twelve months or more	$ (73)	$ (62)
Fair Value - Twelve months or more	$ 1,187	$ 914
Fair Value as % of Cost - Twelve months or more	94.00%	94.00%
Common stocks [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (81)	$ (79)
Fair Value - Less than twelve months	$ 498	$ 509
Fair Value as % of Cost - Less than twelve months	86.00%	87.00%
Unrealized Loss - Twelve months or more	$ 0	$ 0
Fair Value - Twelve months or more	$ 2	$ 0
Fair Value as % of Cost - Twelve months or more	100.00%	0.00%
Perpetual preferred stocks [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (5)	$ (3)
Fair Value - Less than twelve months	$ 117	$ 91
Fair Value as % of Cost - Less than twelve months	96.00%	97.00%
Unrealized Loss - Twelve months or more	$ (4)	$ (3)
Fair Value - Twelve months or more	$ 22	$ 22
Fair Value as % of Cost - Twelve months or more	85.00%	88.00%
Equity securities [Member]
Available for sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (86)	$ (82)
Fair Value - Less than twelve months	$ 615	$ 600
Fair Value as % of Cost - Less than twelve months	88.00%	88.00%
Unrealized Loss - Twelve months or more	$ (4)	$ (3)
Fair Value - Twelve months or more	$ 24	$ 22
Fair Value as % of Cost - Twelve months or more	86.00%	88.00%

Investments (Details 2) - USD ($) $ in Millions	3 Months Ended
Investments (Details 2) - USD ($) $ in Millions	Mar. 31, 2016	Mar. 31, 2015
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Beginning Balance	$ 160	$ 170
Additional credit impairments on:
Previously impaired securities	2	1
Securities without prior impairments	0	0
Reductions due to sales or redemptions	(2)	(3)
Ending Balance	$ 160	$ 168

Investments (Details 3) - Fixed Maturity [Member] $ in Millions	Mar. 31, 2016 USD ($)
Amortized Cost Basis, Fiscal Year Maturity [Abstract]
One year or less	$ 999
After one year through five years	5,348
After five years through ten years	11,678
After ten years	3,998
Fixed maturities amortized cost, Subtotal	22,023
ABS (average life of approximately 5 years)	5,172
MBS (average life of approximately 4-1/2 years)	5,554
Amortized Cost	32,749
Fair Value, Fiscal Year Maturity [Abstract]
One year or less	1,014
After one year through five years	5,612
After five years through ten years	12,025
After ten years	4,232
Fixed maturities fair value, Subtotal	22,883
ABS (average life of approximately 5 years)	5,130
MBS (average life of approximately 4-1/2 years)	5,908
Fair Value	$ 33,921
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	35.00%
After ten years	13.00%
Fixed maturities fair value, Subtotal, Percent	68.00%
ABS (average life of approximately 5 years)	15.00%
MBS (average life of approximately 4-1/2 years)	17.00%
Fair value, Total, Percent	100.00%

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

Mar. 31, 2016

Dec. 31, 2015

Mar. 31, 2015

Dec. 31, 2014

Unrealized gain on:

Pretax

$ 727

$ 517

Deferred Tax and Amounts Attributable to Noncontrolling Interests

(261)

(185)

Net

466

^[1]

332

^[1]

$ 799

$ 743

Total investments [Member]

Unrealized gain on:

Pretax

1,233

803

Deferred Tax and Amounts Attributable to Noncontrolling Interests

(438)

(285)

Net

795

518

Fixed maturities [Member]

Unrealized gain on:

Pretax

1,172

719

Deferred Tax and Amounts Attributable to Noncontrolling Interests

(417)

(255)

Net

755

464

Fixed maturities - annuity segment [Member]

Unrealized gain on:

Pretax

^[2]

910

523

Deferred Tax and Amounts Attributable to Noncontrolling Interests

^[2]

(319)

(183)

Net

^[2]

591

340

Fixed maturities - all other [Member]

Unrealized gain on:

Pretax

262

196

Deferred Tax and Amounts Attributable to Noncontrolling Interests

(98)

(72)

Net

164

124

Equity securities [Member]

Unrealized gain on:

Pretax

Deferred Tax and Amounts Attributable to Noncontrolling Interests

(21)

(30)

Net

Deferred policy acquisition costs - annuity segment [Member]

Unrealized gain on:

Pretax

(400)

(233)

Deferred Tax and Amounts Attributable to Noncontrolling Interests

140

Net

(260)

(151)

Annuity benefits accumulated [Member]

Unrealized gain on:

Pretax

(125)

(64)

Deferred Tax and Amounts Attributable to Noncontrolling Interests

Net

(81)

(42)

Life, accident and health reserves [Member]

Unrealized gain on:

Pretax

(1)

Deferred Tax and Amounts Attributable to Noncontrolling Interests

Net

(1)

Unearned revenue [Member]

Unrealized gain on:

Pretax

Deferred Tax and Amounts Attributable to Noncontrolling Interests

(7)

(4)

Net

$ 13

$ 7

[1]	Includes net unrealized gains of $46 million at March 31, 2016 and $51 million at December 31, 2015 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	3 Months Ended
Investments (Details 5) - USD ($) $ in Millions	Mar. 31, 2016	Mar. 31, 2015
Net Investment Income [Line Items]
Investment income	$ 416	$ 393
Investment expenses	(5)	(5)
Net investment income	411	388
Fixed maturities [Member]
Net Investment Income [Line Items]
Investment income	367	352
Equity securities [Member]
Net Investment Income [Line Items]
Investment income	19	17
Equity method investments [Member]
Net Investment Income [Line Items]
Investment income	11	3
Other [Member]
Net Investment Income [Line Items]
Investment income	$ 19	$ 21

Investments (Details 6) - USD ($) $ in Millions	3 Months Ended
Investments (Details 6) - USD ($) $ in Millions	Mar. 31, 2016	Mar. 31, 2015
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	$ 34	$ 23
Realized — impairments	(52)	(4)
Realized gains (losses) on securities	(18)	19
Fixed maturities [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	14	3
Realized — impairments	(16)	(5)
Realized gains (losses) on securities	(2)	(2)
Change in unrealized	453	218
Equity securities [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	23	21
Realized — impairments	(41)	(2)
Realized gains (losses) on securities	(18)	19
Change in unrealized	(23)	6
Other [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	(3)	(1)
Realized — impairments	5	3
Realized gains (losses) on securities	2	2
Change in unrealized	(220)	(137)
Total Pretax [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	34	23
Realized — impairments	(52)	(4)
Realized gains (losses) on securities	(18)	19
Change in unrealized	210	87
Tax Effects [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	(12)	(8)
Realized — impairments	19	1
Realized gains (losses) on securities	7	(7)
Change in unrealized	(74)	(30)
Noncontrolling Interests [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	0	0
Realized — impairments	1	0
Realized gains (losses) on securities	1	0
Change in unrealized	(2)	(1)
Marketable Securities [Member]
Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments
Realized before impairments	22	15
Realized — impairments	(32)	(3)
Realized gains (losses) on securities	(10)	12
Change in unrealized	$ 134	$ 56

Investments (Details 7) - USD ($) $ in Millions	3 Months Ended
Investments (Details 7) - USD ($) $ in Millions	Mar. 31, 2016	Mar. 31, 2015
Fixed maturities [Member]
Gross realized gains and losses on the sale of available for sale fixed maturity and equity security investments
Gross gains	$ 14	$ 5
Gross losses	(1)	0
Equity securities [Member]
Gross realized gains and losses on the sale of available for sale fixed maturity and equity security investments
Gross gains	25	21
Gross losses	$ 0	$ 0

Investments (Details Textual) $ in Millions	3 Months Ended
Investments (Details Textual) $ in Millions	Mar. 31, 2016 USD ($) security	Mar. 31, 2015 USD ($)	Dec. 31, 2015 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	57.00%
Percentage (based on fair value) of available for sale fixed maturities that are in an unrealized loss position and rated investment grade	79.00%
Other than temporary impairment charges	$ 52	$ 4
Average life of ABS	5 years
Average life of MBS	4 years 6 months
Residential Mortgage Backed Securities [Member]
Investment [Line Items]
Non-credit related portion of other-than-temporary impairment charges taken for securities still owned	$ 201		$ 205
Fixed maturities, Gross Unrealized, Losses	(26)		(15)
Other than temporary impairment charges	2
Securities with non-credit other-than-temporary impairment charges [Member]
Investment [Line Items]
Gross Unrealized, Gains	126		134
Gross Unrealized, Losses	(9)		(6)
Fixed maturities [Member]
Investment [Line Items]
Fixed maturities, Gross Unrealized, Losses	$ (280)		(374)
Number of available for sale securities in an unrealized loss position \| security	868
Other than temporary impairment charges	$ 16	$ 5
Corporate bonds [Member]
Investment [Line Items]
Other than temporary impairment charges	$ 14
Common stocks [Member]
Investment [Line Items]
Number of available for sale securities in an unrealized loss position \| security	63
Other than temporary impairment charges	$ 38
Equity securities, Gross Unrealized, Losses	$ (81)		(79)
Preferred stocks [Member]
Investment [Line Items]
Number of available for sale securities in an unrealized loss position \| security	24
Other than temporary impairment charges	$ 3
Equity securities, Gross Unrealized, Losses	$ (9)		$ (6)
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	1
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	Mar. 31, 2016	Dec. 31, 2015
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	$ 403	$ 375
Derivative liability, at fair value	1,460	1,376
MBS with embedded derivatives [Member] \| Fixed maturities [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	127	130
Public company warrants [Member] \| Equity securities [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	2	4
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	1,450	1,369
Equity index call options [Member] \| Other investments [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	274	241
Reinsurance contracts (embedded derivative) [Member] \| Other liabilities [Member]
Derivatives included in AFG' s Balance Sheet at fair value
Derivative liability, at fair value	$ 10	$ 7

Derivatives (Details 1) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	$ (61)	$ (32)
MBS with embedded derivatives [Member] \| Realized gains on securities [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	1	(2)
Public company warrants [Member] \| Realized gains on securities [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	(2)	0
Fixed-indexed annuities (embedded derivative) [Member] \| Annuity benefits [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	(17)	(50)
Equity index call options [Member] \| Annuity benefits [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	(40)	20
Reinsurance contracts (embedded derivative) [Member] \| Net investment income [Member]
Derivative, Gain (Loss) on Derivative, Net [Abstract]
Derivative	$ (3)	$ 0

Derivatives (Details Textual)	3 Months Ended
Derivatives (Details Textual)	Mar. 31, 2016 USD ($) swap	Mar. 31, 2015 USD ($)	Dec. 31, 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	$ 196,000,000		$ 211,000,000
Cash Flow Hedges [Member] \| Designated as Hedging Instrument [Member] \| Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Number of interest rate swaps designated and qualifying as a cash flow hedges \| swap	4
Notional amount of derivative instrument outstanding	$ 749,000,000		614,000,000
Gain (loss) reclassified from AOCI into net investment income	2,000,000	$ 1,000,000
Gain (loss) on cash flow hedge ineffectiveness recorded in Net Earnings	0	$ 0
Cash Flow Hedges [Member] \| Designated as Hedging Instrument [Member] \| Interest rate swaps [Member] \| Seven-year and nine-month interest rate swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivative instrument outstanding	163,000,000
Other assets [Member] \| Cash Flow Hedges [Member] \| Designated as Hedging Instrument [Member] \| Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value	13,000,000		2,000,000
Other liabilities [Member] \| Cash Flow Hedges [Member] \| Designated as Hedging Instrument [Member] \| Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value	$ 0
Other liabilities [Member] \| Maximum [Member] \| Cash Flow Hedges [Member] \| Designated as Hedging Instrument [Member] \| Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value			$ (1,000,000)
Senior Notes [Member] \| 9-7/8% Senior Notes due June 2019 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate, percentage	9.875%
AFG [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest rate description of fair value hedge activity	three-month LIBOR plus 8.099%
AFG [Member] \| Fair Value Hedge [Member] \| Designated as Hedging Instrument [Member] \| Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Effective interest rate, percentage	8.7329%		8.611%
The net reduction in interest expense from interest rate swaps	$ 1,000,000
AFG [Member] \| Long-term debt [Member] \| Fair Value Hedge [Member] \| Designated as Hedging Instrument [Member] \| Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value	$ 8,000,000		$ 2,000,000
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%		9.875%
AFG [Member] \| LIBOR [Member] \| Fair Value Hedge [Member] \| Designated as Hedging Instrument [Member] \| Interest rate swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Basis spread on variable interest rate	8.099%

Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
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	$ 1,184	$ 821
Deferred policy acquisition costs and present value of future profits, additions	205	168
Deferred policy acquisition costs and present value of future profits, periodic amortization	(166)	(165)
Deferred policy acquisition costs and present value of future profits, change included in realized gains	2	2
Deferred policy acquisition costs and present value of future profits, foreign currency translation		1
Deferred policy acquisition costs and present value of future profits, change in unrealized	(170)	(71)
Deferred policy acquisition costs and present value of future profits, ending balance	1,055	756
Property and Casualty Insurance [Member]
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Deferred policy acquisition costs, beginning balance	226	221
Deferred policy acquisition costs, additions	132	121
Deferred policy acquisition costs, periodic amortization	(134)	(126)
Deferred policy acquisition costs, foreign currency translation		1
Deferred policy acquisition costs, ending balance	224	217
Annuity and Run-off Long-term Care and Life [Member]
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Deferred policy acquisition costs, beginning balance	1,018	925
Deferred policy acquisition costs, additions	68	44
Deferred policy acquisition costs, periodic amortization	(25)	(29)
Deferred policy acquisition costs, change included in realized gains	2	2
Deferred policy acquisition costs, ending balance	1,063	942
Movement in Deferred Sales Inducements [Roll Forward]
Deferred sales inducements, beginning balance	119	132
Deferred sales inducements, additions	5	3
Deferred sales inducements, periodic amortization	(5)	(7)
Deferred sales inducements, change included in realized gains	0	0
Deferred sales inducements, ending balance	119	128
Movement in Present Value of Future Insurance Profits [Roll Forward]
Present value of future profits, beginning balance	55	74
Present value of future profits, periodic amortization	(2)	(3)
Present value of future profits, ending balance	53	71
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	(234)	(531)
Unrealized investment gains (losses), change in unrealized	(170)	(71)
Unrealized investment gains (losses), ending balance	(404)	(602)
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	958	600
Deferred policy acquisition costs and present value of future profits, additions	73	47
Deferred policy acquisition costs and present value of future profits, periodic amortization	(32)	(39)
Deferred policy acquisition costs and present value of future profits, change included in realized gains	2	2
Deferred policy acquisition costs and present value of future profits, change in unrealized	(170)	(71)
Deferred policy acquisition costs and present value of future profits, ending balance	831	539
Excluding Unrealized Gains [Member] \| Annuity and Run-off Long-term Care and Life [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	1,192	1,131
Deferred policy acquisition costs and present value of future profits, change in unrealized	0	0
Deferred policy acquisition costs and present value of future profits, ending balance	$ 1,235	$ 1,141

Deferred Policy Acquisition Costs (Details Textual) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Deferred Policy Acquisition Costs Disclosures [Abstract]
Accumulated amortization of present value of future profits	$ 127	$ 125

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

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

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

Assets

^[1]

$ (1)

$ 33

Liabilities

^[1]

(12)

(36)

Management fees paid to AFG

CLO earnings (losses) attributable to AFG shareholders

^[2]

$ (7)

$ 3

[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	3 Months Ended
Managed Investment Entities (Details Textual) $ in Millions	Mar. 31, 2016 USD ($) collateralizedloanobligation	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($)
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	86.10%
Number of collateralized loan obligation entities \| collateralizedloanobligation	13
Proceeds received by subsidiaries related to redemptions of managed investment entities liabilities	$ 23	$ 1
Difference between aggregate unpaid principal balance and fair value of CLOs' fixed maturity investments	211		$ 214
Difference between aggregate unpaid principal balance and carrying value of CLOs' debt	242		205
Carrying amount of CLO loans in default	8		1
Aggregate unpaid principal balance of CLO loans in default	21		10
Variable interest entity, primary beneficiary [Member]
Variable Interest Entity [Line Items]
Aggregate fair value of investment in collateralized loan obligations	250		$ 266
Subordinated Debt Obligations [Member] \| Variable interest entity, primary beneficiary [Member]
Variable Interest Entity [Line Items]
Aggregate fair value of investment in collateralized loan obligations	113
Senior Debt Obligations [Member]
Variable Interest Entity [Line Items]
Face amount of managed investment entities liabilities purchased by subsidiaries after issuance date	11
Amount paid by subsidiaries to purchase managed investment entities liabilities after issuance date	$ 10

Goodwill and Other Intangibles (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the goodwill balance during the period	$ 0
Goodwill	199,000,000		$ 199,000,000
Amortizable intangible assets related to property and casualty insurance acquisitions	39,000,000		41,000,000
Accumulated amortization	19,000,000		$ 18,000,000
Amortization of intangible assets	$ 2,000,000	$ 2,000,000

Long-Term Debt (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Summary of Carrying value of long-term debt
Debt issue costs	$ 22	$ 22
Long-term debt	998	998
Including Deferred Debt Issue Costs [Member]
Summary of Carrying value of long-term debt
Long-term debt	1,020	1,020
Subsidiaries [Member]
Summary of Carrying value of long-term debt
Debt issue costs	0	0
National Interstate bank credit facility	12	12
Subsidiaries [Member] \| Including Deferred Debt Issue Costs [Member]
Summary of Carrying value of long-term debt
National Interstate bank credit facility	12	12
Senior Notes [Member] \| 9-7/8% Senior Notes due June 2019 [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Senior Notes	349	349
Debt issue costs	1	1
Senior Notes [Member] \| 9-7/8% Senior Notes due June 2019 [Member] \| AFG [Member] \| Including Deferred Debt Issue Costs [Member]
Summary of Carrying value of long-term debt
Senior Notes	350	350
Senior Notes [Member] \| 6-3/8% Senior Notes due June 2042 [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Senior Notes	223	223
Debt issue costs	7	7
Senior Notes [Member] \| 6-3/8% Senior Notes due June 2042 [Member] \| AFG [Member] \| Including Deferred Debt Issue Costs [Member]
Summary of Carrying value of long-term debt
Senior Notes	230	230
Senior Notes [Member] \| 5-3/4% Senior Notes due August 2042 [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Senior Notes	121	121
Debt issue costs	4	4
Senior Notes [Member] \| 5-3/4% Senior Notes due August 2042 [Member] \| AFG [Member] \| Including Deferred Debt Issue Costs [Member]
Summary of Carrying value of long-term debt
Senior Notes	125	125
Senior Debt Obligations [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Debt issue costs	12	12
Long-term debt	696	696
Senior Debt Obligations [Member] \| AFG [Member] \| Including Deferred Debt Issue Costs [Member]
Summary of Carrying value of long-term debt
Long-term debt	708	708
Senior Debt Obligations [Member] \| Other [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Other long-term debt	3	3
Debt issue costs	0	0
Senior Debt Obligations [Member] \| Other [Member] \| AFG [Member] \| Including Deferred Debt Issue Costs [Member]
Summary of Carrying value of long-term debt
Other long-term debt	3	3
Subordinated Debentures [Member] \| 6-1/4% Subordinated Debentures due September 2054 [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Debt issue costs	5	5
Subordinated Debentures	145	145
Subordinated Debentures [Member] \| 6-1/4% Subordinated Debentures due September 2054 [Member] \| AFG [Member] \| Including Deferred Debt Issue Costs [Member]
Summary of Carrying value of long-term debt
Subordinated Debentures	150	150
Subordinated Debentures [Member] \| 6% Subordinated Debentures due November 2055 [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Debt issue costs	5	5
Subordinated Debentures	145	145
Subordinated Debentures [Member] \| 6% Subordinated Debentures due November 2055 [Member] \| AFG [Member] \| Including Deferred Debt Issue Costs [Member]
Summary of Carrying value of long-term debt
Subordinated Debentures	150	150
Subordinated Debt Obligations [Member] \| AFG [Member]
Summary of Carrying value of long-term debt
Debt issue costs	10	10
Long-term debt	290	290
Subordinated Debt Obligations [Member] \| AFG [Member] \| Including Deferred Debt Issue Costs [Member]
Summary of Carrying value of long-term debt
Long-term debt	$ 300	$ 300

Long-Term Debt (Details 1) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Summary showing division of total long term debt
Long-term debt	$ 998	$ 998
Senior unsecured obligations [Member]
Summary showing division of total long term debt
Unsecured obligations	720	720
Subordinated unsecured obligations [Member]
Summary showing division of total long term debt
Unsecured obligations	300	300
Including Deferred Debt Issue Costs [Member]
Summary showing division of total long term debt
Long-term debt	$ 1,020	$ 1,020

Long-Term Debt (Details Textual) - USD ($)		3 Months Ended
Long-Term Debt (Details Textual) - USD ($)	Mar. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Long-term Debt, Fiscal Year Maturity [Abstract]
Scheduled principal payments on debt in 2016	$ 0	$ 0
Scheduled principal payments on debt in 2017	12,000,000	12,000,000
Scheduled principal payments on debt in 2018	0	0
Scheduled principal payments on debt in 2019	350,000,000	350,000,000
Scheduled principal payments on debt in 2020	0	0
Scheduled principal payments on debt in 2021	0	0
Scheduled principal payments on debt after 2021	658,000,000	658,000,000
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	8.7329%	8.7329%	8.611%
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	$ 8,000,000	$ 8,000,000	$ 2,000,000
Senior Notes [Member] \| 9-7/8% Senior Notes due June 2019 [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Stated interest rate, percentage	9.875%	9.875%
Senior Notes [Member] \| 9-7/8% Senior Notes due June 2019 [Member] \| AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Senior Notes	$ 349,000,000	$ 349,000,000	$ 349,000,000
Stated interest rate, percentage	9.875%	9.875%	9.875%
Senior Notes [Member] \| 6-3/8% Senior Notes due June 2042 [Member] \| AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Senior Notes	$ 223,000,000	$ 223,000,000	$ 223,000,000
Stated interest rate, percentage	6.375%	6.375%
Senior Notes [Member] \| 5-3/4% Senior Notes due August 2042 [Member] \| AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Senior Notes	$ 121,000,000	$ 121,000,000	$ 121,000,000
Stated interest rate, percentage	5.75%	5.75%
Subordinated Debt [Member] \| 6-1/4% Subordinated Debentures due September 2054 [Member] \| AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Stated interest rate, percentage	6.25%	6.25%
Subordinated Debt [Member] \| 6% Subordinated Debentures due November 2055 [Member] \| AFG [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
Stated interest rate, percentage	6.00%	6.00%

Shareholders' Equity (Details)	Mar. 31, 2016 $ / 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 ($)
$ in Millions

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Components of accumulated other comprehensive income

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

$ 192

$ 106

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

(67)

(37)

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

125

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

(1)

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

124

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

^[1]

(19)

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

^[1]

(7)

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

(12)

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

(12)

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

332

^[2]

743

Other comprehensive income, net unrealized gains on securities, pretax

210

Other comprehensive income, net unrealized gains on securities, tax

(74)

(30)

Total net unrealized gains on securities

136

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

(2)

(1)

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

134

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

466

^[2]

799

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

(2)

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

(22)

(8)

Other comprehensive income, foreign currency translation adjustments, pretax

(5)

Other comprehensive income, foreign currency translation adjustments, tax

(3)

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

(8)

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

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

(8)

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

(16)

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

(7)

(8)

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

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

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

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

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

(6)

(8)

Accumulated other comprehensive income, total, beginning balance

304

727

Other comprehensive income, total, pretax

219

Other comprehensive income, total, tax

(73)

(33)

Other comprehensive income, net of tax

146

Other comprehensive income, total, attributable to noncontrolling interests

(2)

(1)

Other comprehensive income, total, attributable to shareholders

144

Accumulated other comprehensive income, total, ending balance

$ 448

$ 776

[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 (losses) on securities Tax Provision for income taxes Attributable to noncontrolling interests Net earnings (loss) attributable to noncontrolling interests
[2]	Includes net unrealized gains of $46 million at March 31, 2016 and $51 million at December 31, 2015 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
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net of tax unrealized gains (losses) related to credit-only impaired securities	$ 46		$ 51
Compensation expense related to stock incentive plans	$ 8	$ 6
Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Common Stock, shares issued	317,230
Restricted Common Stock, fair value per share	$ 66.97
Common Stock options issued under stock incentive plan	0
Annual Equity Bonus Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other benefit plans, shares issued	40,336
Common Stock issued, fair value per share	$ 71.05

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2016	Mar. 31, 2015
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Earnings before income taxes (“EBT”)	$ 156	$ 30
Income taxes at statutory rate	55	10
Effect of tax exempt interest	(7)	(7)
Effect of change in valuation allowance	1	(1)
Effect of subsidiaries not in AFG's tax return	1	1
Effect of other income tax reconciliation	2	2
Provision for income taxes as shown on the Statement of Earnings	$ 52	$ 5
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Income taxes at statutory rate as a percentage of EBT	35.00%	35.00%
Effect of tax exempt interest as a percentage of EBT	(4.00%)	(23.00%)
Effect of change in valuation allowance as a percentage of EBT	1.00%	(3.00%)
Effect of subsidiaries not in AFG's tax return as a percentage of EBT	0.00%	3.00%
Effect of other income tax reconciliation as a percentage of EBT	1.00%	5.00%
Provision for income taxes as shown on the Statement of Earnings as a percentage of EBT	33.00%	17.00%

Income Taxes (Details Textual)	3 Months Ended
Income Taxes (Details Textual)	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Statutory rate of income taxes	35.00%	35.00%
Effective tax rate excluding the tax benefit from the loss on the sale of business		32.00%