0001042046-20-000013 | 10-K | XBRL Viewer | American Financial Group INC

Operating Loss – U.S.

Operating Loss – United Kingdom

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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2019	Feb. 01, 2020	Jun. 30, 2019
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	1-13653
Entity Registrant Name	AMERICAN FINANCIAL GROUP, INC.
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	31-1544320
Entity Central Index Key	0001042046
Entity Address, Address Line One	301 East Fourth Street
Entity Address, City or Town	Cincinnati
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45202
City Area Code	513
Local Phone Number	579-2121
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 8,310
Entity Common Stock, Shares Outstanding		90,339,433
Entity Common Stock, Shares Outstanding Owned by Subsidiaries		14,900,000
Common stocks
Entity Information [Line Items]
Title of 12(b) Security	Common Stock
Trading Symbol	AFG
Security Exchange Name	NYSE
6% Subordinated Debentures due November 2055
Entity Information [Line Items]
Title of 12(b) Security	6% Subordinated Debentures due November 15, 2055
Trading Symbol	AFGH
Security Exchange Name	NYSE
5.875% Subordinated Debentures due March 2059
Entity Information [Line Items]
Title of 12(b) Security	5.875% Subordinated Debentures due March 30, 2059
Trading Symbol	AFGB
Security Exchange Name	NYSE
5.125% Subordinated Debentures due December 2059
Entity Information [Line Items]
Title of 12(b) Security	5.125% Subordinated Debentures due December 15, 2059
Trading Symbol	AFGC
Security Exchange Name	NYSE

Consolidated Balance Sheet - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Assets:
Cash and cash equivalents	$ 2,314	$ 1,515
Investments:
Fixed maturities, available for sale at fair value (amortized cost — $44,524 and $41,837)	46,505	41,997
Fixed maturities, trading at fair value	113	105
Equity securities, at fair value	1,937	1,814
Investments accounted for using the equity method	1,688	1,374
Mortgage loans	1,329	1,068
Policy loans	164	174
Equity index call options	924	184
Real estate and other investments	278	267
Total cash and investments	55,252	48,498
Recoverables from reinsurers	3,415	3,349
Prepaid reinsurance premiums	678	610
Agents’ balances and premiums receivable	1,335	1,234
Deferred policy acquisition costs	1,037	1,682
Assets of managed investment entities	4,736	4,700
Other receivables	975	1,090
Variable annuity assets (separate accounts)	628	557
Other assets	1,867	1,529
Goodwill	207	207
Total assets	70,130	63,456
Liabilities and Equity:
Unpaid losses and loss adjustment expenses	10,232	9,741
Unearned premiums	2,830	2,595
Annuity benefits accumulated	40,406	36,616
Life, accident and health reserves	612	635
Payable to reinsurers	814	752
Liabilities of managed investment entities	4,571	4,512
Long-term debt	1,473	1,302
Variable annuity liabilities (separate accounts)	628	557
Other liabilities	2,295	1,774
Total liabilities	63,861	58,484
Redeemable noncontrolling interests	0	0
Shareholders’ equity:
Common Stock, no par value — 200,000,000 shares authorized — 90,303,686 and 89,291,724 shares outstanding	90	89
Capital surplus	1,307	1,245
Retained earnings	4,009	3,588
Accumulated other comprehensive income, net of tax	863	48
Total shareholders’ equity	6,269	4,970
Noncontrolling interests	0	2
Total equity	6,269	4,972
Total liabilities and equity	$ 70,130	$ 63,456

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Fixed maturities, available for sale at amortized cost	$ 44,524	$ 41,837
Common Stock, par value (USD per share)	$ 0	$ 0
Common Stock, shares authorized	200,000,000	200,000,000
Common Stock, shares outstanding	90,303,686	89,291,724

Consolidated Statement of Earnings - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues:
Property and casualty insurance net earned premiums	$ 5,185	$ 4,865	$ 4,579
Life, accident and health net earned premiums	22	24	22
Net investment income	2,303	2,094	1,831
Realized gains (losses) on:
Securities	287	(266)	5
Income (loss) of managed investment entities:
Investment income	269	255	210
Gain (loss) on change in fair value of assets/liabilities	(30)	(21)	12
Other income	201	199	206
Total revenues	8,237	7,150	6,865
Costs and Expenses:
Property and casualty insurance: Losses and loss adjustment expenses	3,271	3,003	2,955
Property and casualty insurance: Commissions and other underwriting expenses	1,725	1,583	1,407
Annuity benefits	1,151	998	892
Life, accident and health benefits	36	40	26
Annuity and supplemental insurance acquisition expenses	253	261	173
Interest charges on borrowed money	68	62	85
Expenses of managed investment entities	220	211	181
Other expenses	405	353	422
Total costs and expenses	7,129	6,511	6,141
Earnings before income taxes	1,108	639	724
Provision for income taxes	239	122	247
Net earnings, including noncontrolling interests	869	517	477
Less: Net earnings (losses) attributable to noncontrolling interests	(28)	(13)	2
Net Earnings Attributable to Shareholders	$ 897	$ 530	$ 475
Earnings Attributable to Shareholders per Common Share:
Basic (USD per share)	$ 9.98	$ 5.95	$ 5.40
Diluted (USD per share)	$ 9.85	$ 5.85	$ 5.28
Average number of Common Shares:
Basic (shares)	89.9	89.0	87.8
Diluted (shares)	91.0	90.6	89.8
Supplemental disclosure of Realized gains (losses) on securities:
Realized gains (losses) before impairments	$ 306	$ (247)	$ 78
Losses on securities with impairment	(19)	(19)	(74)
Non-credit portion recognized in other comprehensive income (loss)	0	0	1
Impairment charges recognized in earnings	(19)	(19)	(73)
Total realized gains (losses) on securities	$ 287	$ (266)	$ 5

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net earnings, including noncontrolling interests	$ 869	$ 517	$ 477
Net unrealized gains (losses) on securities:
Unrealized holding gains (losses) on securities arising during the period	788	(544)	297
Reclassification adjustment for realized (gains) losses included in net earnings	(9)	8	(10)
Total net unrealized gains (losses) on securities	779	(536)	287
Net unrealized gains (losses) on cash flow hedges	28	2	(4)
Foreign currency translation adjustments	7	(10)	12
Pension and other postretirement plans adjustments	1	0	1
Other comprehensive income (loss), net of tax	815	(544)	296
Total comprehensive income (loss), net of tax	1,684	(27)	773
Less: Comprehensive income (loss) attributable to noncontrolling interests	(28)	(13)	2
Comprehensive income (loss) attributable to shareholders	$ 1,712	$ (14)	$ 771

Consolidated Statement of Changes in Equity - USD ($) $ in Millions	Total	Total	Common Shares	Common Stock and Capital Surplus	Retained Earnings	Accumulated Other Comprehensive Inc. (Loss)	Noncontrolling Interests	Redeemable noncontrolling interests
Beginning Balance, shares at Dec. 31, 2016			86,924,399
Beginning Balance at Dec. 31, 2016	$ 4,919	$ 4,916		$ 1,198	$ 3,343	$ 375	$ 3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to parent	475	475			475
Net income (loss), including portion attributable to nonredeemable noncontrolling interest	477						2
Other comprehensive income (loss)	296	296				296	0
Impact of the U.S. corporate tax rate change on AOCI	0	0			(145)	145	0
Dividends	(421)	(421)			(421)
Shares issued:
Exercise of stock options, shares			1,020,986
Exercise of stock options	34	34		34
Restricted stock awards, shares			232,250
Restricted stock awards	0	0		0
Other benefit plans, shares			99,588
Other benefit plans	10	10		10
Dividend reinvestment plan, shares			42,572
Dividend reinvestment plan	4	4		4
Stock-based compensation: Expense	24	24		24
Shares exchanged — benefit plans, shares			(37,718)
Shares exchanged — benefit plans	(5)	(5)		(1)	(4)
Forfeitures of restricted stock, shares			(6,617)
Forfeitures of restricted stock	0	0		0
Sale of redeemable noncontrolling interests	(3)	(3)				(3)		$ 3
Other	(4)				0		(4)
Ending Balance, shares at Dec. 31, 2017			88,275,460
Ending Balance at Dec. 31, 2017	5,331	5,330		1,269	3,248	813	1
Beginning Balance, Redeemable Noncontrolling Interests at Dec. 31, 2016	0
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract]
Sale of redeemable noncontrolling interests	(3)	(3)				(3)		$ 3
Other	0
Ending Balance, Redeemable Noncontrolling Interests at Dec. 31, 2017	3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to parent	530	530			530
Net income (loss), including portion attributable to nonredeemable noncontrolling interest	531						1
Other comprehensive income (loss)	(544)	(544)				(544)	0
Dividends	(397)	(397)			(397)
Shares issued:
Exercise of stock options, shares			778,270
Exercise of stock options	29	29		29
Restricted stock awards, shares			200,625
Restricted stock awards	0	0		0
Other benefit plans, shares			103,797
Other benefit plans	12	12		12
Dividend reinvestment plan, shares			29,998
Dividend reinvestment plan	3	3		3
Stock-based compensation: Expense	23	23		23
Shares acquired and retired, shares			(65,589)
Shares acquired and retired	(6)	(6)		(1)	(5)
Shares exchanged — benefit plans, shares			(26,520)
Shares exchanged — benefit plans	(3)	(3)		(1)	(2)
Forfeitures of restricted stock, shares			(4,317)
Forfeitures of restricted stock	0	0		0
Other	$ (11)	(11)			(11)	0	0
Ending Balance, shares at Dec. 31, 2018	89,291,724		89,291,724
Ending Balance at Dec. 31, 2018	$ 4,972	4,970		1,334	3,588	48	2
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract]
Net income (loss) attributable to redeemable noncontrolling interest	(14)
Other	11
Ending Balance, Redeemable Noncontrolling Interests at Dec. 31, 2018	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to parent	897	897			897
Net income (loss), including portion attributable to nonredeemable noncontrolling interest	895						(2)
Other comprehensive income (loss)	815	815				815	0
Dividends	$ (446)	(446)			(446)
Shares issued:
Exercise of stock options, shares	747,167		747,167
Exercise of stock options	$ 31	31		31
Restricted stock awards, shares			232,635
Restricted stock awards	0	0		0
Other benefit plans, shares			77,429
Other benefit plans	8	8		8
Dividend reinvestment plan, shares			19,334
Dividend reinvestment plan	2	2		2
Stock-based compensation: Expense	23	23		23
Shares exchanged — benefit plans, shares			(50,062)
Shares exchanged — benefit plans	(5)	(5)		(1)	(4)
Forfeitures of restricted stock, shares			(14,541)
Forfeitures of restricted stock	0	0		0
Other	$ (26)	(26)			(26)		0
Ending Balance, shares at Dec. 31, 2019	90,303,686		90,303,686
Ending Balance at Dec. 31, 2019	$ 6,269	$ 6,269		$ 1,397	$ 4,009	863	$ 0
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract]
Net income (loss) attributable to redeemable noncontrolling interest	(26)
Other	26
Ending Balance, Redeemable Noncontrolling Interests at Dec. 31, 2019	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of accounting change						$ 0

Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]
Cash dividends per Common Share (USD per share)	$ 4.95	$ 4.45	$ 4.7875

Consolidated Statement of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Activities:
Net earnings, including noncontrolling interests	$ 869	$ 517	$ 477
Adjustments:
Depreciation and amortization	259	210	107
Annuity benefits	1,151	998	892
Realized (gains) losses on investing activities	(288)	265	(23)
Net (purchases) sales of trading securities	(5)	111	17
Deferred annuity and life policy acquisition costs	(206)	(263)	(225)
Change in:
Reinsurance and other receivables	(112)	(211)	(963)
Other assets	(406)	96	13
Insurance claims and reserves	703	425	1,321
Payable to reinsurers	62	9	109
Other liabilities	516	(140)	(18)
Managed investment entities’ assets/liabilities	23	148	60
Other operating activities, net	(110)	(82)	37
Net cash provided by operating activities	2,456	2,083	1,804
Investing Activities:
Purchases of fixed maturities	(8,260)	(10,183)	(9,485)
Purchases of equity securities	(242)	(568)	(182)
Purchases of mortgage loans	(442)	(167)	(254)
Purchases of equity index call options and other investments	(991)	(973)	(831)
Purchases of real estate, property and equipment	(44)	(80)	(109)
Purchases of businesses	0	(36)	0
Proceeds from maturities and redemptions of fixed maturities	4,567	4,948	6,105
Proceeds from repayments of mortgage loans	184	201	215
Proceeds from sales of fixed maturities	927	501	392
Proceeds from sales of equity securities	453	247	216
Proceeds from sales and settlements of equity index call options and other investments	771	883	789
Proceeds from sales of real estate, property and equipment	4	3	55
Cash and cash equivalents of businesses acquired	0	13	0
Managed investment entities:
Purchases of investments	(1,398)	(2,117)	(2,979)
Proceeds from sales and redemptions of investments	1,409	1,948	2,774
Other investing activities, net	(3)	30	2
Net cash used in investing activities	(3,065)	(5,350)	(3,292)
Financing Activities:
Annuity receipts	4,960	5,632	4,341
Annuity surrenders, benefits and withdrawals	(3,358)	(2,916)	(2,405)
Net transfers from variable annuity assets	60	47	54
Additional long-term borrowings	315	0	712
Reductions of long-term debt	(150)	0	(745)
Issuances of managed investment entities’ liabilities	371	1,983	2,731
Retirements of managed investment entities’ liabilities	(382)	(1,935)	(2,585)
Issuances of Common Stock	36	33	37
Repurchases of Common Stock	0	(6)	0
Cash dividends paid on Common Stock	(444)	(394)	(417)
Other financing activities, net	0	0	(4)
Net cash provided by (used in) financing activities	1,408	2,444	1,719
Net Change in Cash and Cash Equivalents	799	(823)	231
Cash and cash equivalents at beginning of year	1,515	2,338	2,107
Cash and cash equivalents at end of year	$ 2,314	$ 1,515	$ 2,338

Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Accounting Policies

Basis of Presentation The consolidated financial statements include the accounts of American Financial Group, Inc. and its subsidiaries (“AFG”). Certain reclassifications have been made to prior years to conform to the current year’s presentation. All significant intercompany balances and transactions have been eliminated. The results of operations of companies since their formation or acquisition are included in the consolidated financial statements. Events or transactions occurring subsequent to December 31, 2019, and prior to the filing of this Form 10-K, have been evaluated for potential recognition or disclosure herein.

The preparation of the financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Changes in circumstances could cause actual results to differ materially from those estimates.

On January 1, 2018, AFG adopted Accounting Standards Update (“ASU”) 2014-09, which provides guidance on recognizing revenue when (or as) performance obligations under the contract are satisfied. The guidance also updates the accounting for certain costs associated with obtaining and fulfilling contracts with customers and requires certain new disclosures. Because revenue recognition for insurance contracts and financial instruments (AFG’s primary sources of revenue) were excluded from the scope of the new guidance, the adoption of ASU 2014-09 did not have a material impact on AFG’s results of operations or financial position.

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 material nonrecurring fair value measurements in 2019 or 2018.

Investments On January 1, 2018, AFG adopted ASU 2016-01, which requires all equity securities other than those accounted for under the equity method to be reported at fair value with holding gains and losses recognized in net earnings. At December 31, 2017, AFG had $1.60 billion in equity securities classified as “available for sale” under the prior guidance with holding gains and losses included in accumulated other comprehensive income (“AOCI”) instead of net earnings. At the date of adoption, the $221 million net unrealized gain on equity securities included in AOCI was reclassified to retained earnings as the cumulative effect of an accounting change. The cumulative effect of the accounting change also includes the net unrealized gain on AFG’s small number of limited partnerships and similar investments carried at cost under the prior guidance that are carried at fair value through net earnings under the new guidance ($4 million net of tax at the date of adoption).

Following the adoption of ASU 2016-01, holding gains and losses on equity securities carried at fair value are generally recorded in realized gains (losses) on securities. However, AFG records holding gains and losses on securities classified as “trading” under previous guidance, its small portfolio of limited partnerships and similar investments carried at fair value and certain other securities classified at purchase as “fair value through net investment income” in net investment income.

Under the new guidance, AFG recorded holding gains of $207 million on equity securities in net earnings during 2019 on securities still held at December 31, 2019 and holding losses of $257 million on equity securities in net earnings during 2018 on securities that were still owned at December 31, 2018. Under the prior guidance, these holding losses would have been recorded in AOCI until the securities were disposed (with exception of any impairment charge that may have been recorded). Because almost all of the equity securities impacted by the new guidance were carried at fair value through AOCI under the prior guidance, the adoption of the new guidance did not have a material impact on AFG’s financial position.

Fixed maturity securities classified as “available for sale” are reported at fair value with unrealized gains and losses included in AOCI in AFG’s Balance Sheet. Fixed maturity 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.

Premiums and discounts on fixed maturity securities are amortized using the effective 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.

Limited partnerships and similar investments are generally accounted for using the equity method of accounting. Under the equity method, AFG records its share of the earnings or losses of the investee based on when they are reported by the investee in its financial statements rather than in the period in which the investee declares a dividend. AFG’s share of the earnings or losses from equity method investments is generally recorded on a quarter lag due to the timing of the receipt of the investee’s financial statements. AFG’s equity in the earnings (losses) of limited partnerships and similar investments is included in net investment income.

Gains or losses on fixed maturity securities classified as “available for sale” 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 and principal-only MBS) and (ii) the equity-based component of certain annuity products (included in annuity benefits accumulated) and related equity index options 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. 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.

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 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 these 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.

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.

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. AFG has 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 are measured by the change in the fair value of AFG’s investments in the CLOs and management fees earned.

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 annuity benefits expense and decreases for annuity policy charges are recorded in other income. For traditional fixed annuities, the liability for annuity benefits accumulated represents the account value that had accrued to the benefit of the policyholder as of the balance sheet date. For fixed-indexed annuities (“FIAs”), the liability for annuity benefits accumulated includes an embedded derivative that represents the estimated fair value of the index participation with the remaining component representing the discounted value of the guaranteed minimum contract benefits.

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 (losses) 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 presented in its Balance Sheet as a direct reduction in the carrying value of long-term debt and are amortized over the life of the related debt using the effective interest method as a component of interest expense. Debt issuance costs related to AFG’s revolving credit facilities are included in other assets in AFG’s Balance Sheet.

Variable Annuity Assets and Liabilities Separate accounts related to variable annuities represent the fair value of deposits invested in underlying investment funds on which AFG earns a fee. Investment funds are selected and may be changed only by the policyholder, who retains all investment risk.

AFG’s variable annuity contracts contain a guaranteed minimum death benefit (“GMDB”) to be paid if the policyholder dies before the annuity payout period commences. In periods of declining equity markets, the GMDB may exceed the value of the policyholder’s account. A GMDB liability is established for future excess death benefits using assumptions together with a range of reasonably possible scenarios for investment fund performance that are consistent with DPAC capitalization and amortization assumptions.

Leases On January 1, 2019, AFG adopted ASU 2016-02, which requires entities that lease assets for terms longer than one year to recognize assets and liabilities for the rights and obligations created by those leases on the balance sheet based on the present value of contractual cash flows. As permitted under the ASU, AFG adopted the guidance on a modified retrospective basis (comparative periods were not adjusted) and elected the following accounting policies and practical expedients:


•	exclude leases with a term of 12 months or less from the calculation of lease assets and liabilities,


•	not separate lease and non-lease components except for buildings (office space and storage facilities),


•	for contracts existing at the date of adoption – not reassess whether a contract is a lease or contains a lease, how initial direct costs were accounted for or whether the lease is an operating or finance lease, and


•	use hindsight to determine the lease term for leases existing at the date of adoption.

Adoption of the new guidance resulted in AFG recognizing a lease liability of $198 million (included in other liabilities) and a corresponding right-of-use asset of $174 million (included in other assets and presented net of $24 million in deferred rent and lease incentives) on January 1, 2019. Deferred rent and lease incentives were recognized as liabilities under the previous guidance and result from the straight-line expensing of operating leases. The adoption of the new guidance did not have a material effect on the AFG’s results of operations or liquidity. See Note K — “Leases” for additional disclosures.

Noncontrolling Interests For balance sheet purposes, noncontrolling interests represent 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. Noncontrolling

interests that are redeemable at the option of the holder are presented separately in the mezzanine section of the balance sheet (between liabilities and equity).

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.

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.

The effect of a change in tax rates on deferred tax assets and liabilities is recorded in net earnings in the period that includes the enactment date. This includes the impact on deferred tax assets or liabilities established through AOCI, which results in an amount equal to the difference between the deferred tax at the historical corporate rate and the newly enacted rate stranded in AOCI. As permitted under guidance adopted effective December 31, 2017 (ASU 2018-02), AFG reclassified the $145 million stranded in AOCI from accounting for the Tax Cuts and Jobs Act of 2017 to retained earnings at December 31, 2017. See Note M — “Income Taxes” for further information.

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.

AFG records excess tax benefits or deficiencies for share-based payments through income tax expense in the statement of earnings. In addition, AFG accounts for forfeitures of awards when they occur.

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: 2019 – 1.1 million, 2018 – 1.6 million and 2017 – 2.0 million.

There were no anti-dilutive potential common shares related to stock compensation plans or adjustments to net earnings attributable to shareholders in the calculation of diluted earnings per share for the years ended December 31, 2019, 2018 or 2017.

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, property and equipment and businesses. “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.

Credit Impairment Guidance Effective in 2020 In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, which provides a new loss model for determining credit-related impairments for financial instruments measured at amortized cost (mortgage loans, premiums receivable and reinsurance recoverables) and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The estimate of expected credit losses considers historical information, current information, as well as reasonable and supportable forecasts, including estimates of prepayments. Expected credit losses, and subsequent increases or decreases in such expected losses, will be recorded immediately through net earnings as an allowance that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the balance sheet at the amount expected to be collected. The updated guidance also amends the current other-than-temporary impairment model for available for sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. Subsequent increases or decreases in expected credit losses will be recorded immediately in net earnings through realized gains (losses). AFG will adopt this guidance effective January 1, 2020. The new guidance is not expected to have a material impact on AFG’s results of operations or financial position.

Acquisitions and Sale of Businesses

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Acquisitions and Sale of Businesses

Atlas Financial Holdings, Inc. In June 2019, National Interstate, a property and casualty insurance subsidiary of AFG, entered into an agreement with Atlas Financial Holdings, Inc. (“AFH”) to become the exclusive underwriter of AFH’s paratransit book of business. National Interstate estimates that the majority of AFH’s $110 million paratransit business will be eligible for quotation under this arrangement over the first 12 months following inception of the agreement. Under the terms of the agreement, AFH will act as an underwriting manager for National Interstate for at least 12 months, after which time National Interstate is entitled to acquire the renewal rights for the business from AFH for a purchase price equal to 15% of the in force gross written premiums at that date. The majority of the purchase price ultimately paid for the renewal rights will be recorded as an intangible renewal rights asset and will be amortized over the estimated life of the business acquired. In connection with the transaction, AFG was granted a five-year warrant to acquire approximately 2.4 million shares of AFH (19.9% at the acquisition date). The estimated fair value of the warrant was approximately $1 million at the date it was received.

ABA Insurance Services Inc. In November 2018, AFG acquired ABA Insurance Services Inc. (“ABAIS”) from American Bankers Mutual Insurance, Ltd. for approximately $30 million using cash on hand at the parent company. Additional contingent consideration of up to $3 million could be due four years after the acquisition date based on achieving certain operating milestones. ABAIS is based in Ohio and is a market-leading provider of directors and officers liability and other complementary insurance solutions for banks, small businesses and nonprofit organizations.

The allocation of the purchase price is shown in the table below (in millions):



	November 30, 2018
Total purchase price	$	30

Tangible assets acquired	28
Liabilities acquired	26
Net tangible assets acquired, at fair value	2
Excess purchase price over net tangible assets acquired	$	28

Allocation of excess purchase price:
Intangible assets acquired (*)	$	25
Deferred tax on intangible assets acquired (*)	(5		)
Goodwill	8
	$	28


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

Approximately $25 million of the purchase price was recorded as a finite lived customer relationship intangible asset, which will be amortized over its estimated life of 9 years. The fair value of this intangible was estimated using a multi-period excess earnings method, which is a form of the income approach. The acquisition resulted in the recognition of $8 million in goodwill based on the excess of the purchase price over the fair value of the net assets acquired. The goodwill represents the fair value of acquired intangible assets that do not qualify for separate recognition, including the value of ABAIS’s assembled workforce. Business generated by ABAIS is included in the Specialty casualty sub-segment.

Neon Lloyd’s Business In December 2017, AFG completed the sale of an indirect noncontrolling interest in Neon, its United Kingdom-based Lloyd’s insurer, to certain Neon executives for cash equal to the fair value of the interest sold as determined by a third-party valuation firm. Because AFG continues to have a controlling interest in Neon, the sale was accounted for as an equity transaction with the excess of the carrying value of the net assets attributable to the noncontrolling interest sold over the consideration received recorded as a $3 million reduction in AFG’s Capital Surplus. As discussed in Note M — “Income Taxes,” the sale of the noncontrolling interest also resulted in the recognition of a $56 million tax benefit, including a $48 million tax benefit previously deferred in the 2016 restructuring of the Neon Lloyd’s operations.

Segments of Operations

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segments of Operations

AFG manages its business as three segments: (i) Property and casualty insurance, (ii) Annuity and (iii) Other, which includes holding company assets and costs, revenues and costs of AFG’s limited insurance operations outside of property and casualty insurance and annuity segments, and operations attributable to the noncontrolling interests of the managed investment entities.

AFG reports its property and casualty insurance business in the following Specialty sub-segments: (i) Property and transportation, which includes physical damage and liability coverage for buses and trucks, inland and ocean marine, agricultural-related products and other commercial property coverages, (ii) Specialty casualty, which includes primarily excess and surplus, executive and professional liability, general liability, umbrella and excess liability, specialty coverages 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 lending and leasing institutions (including equipment leasing and collateral and lender-placed mortgage property insurance), fidelity and surety 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 sells traditional fixed and indexed annuities in the retail, financial institutions, broker-dealer and registered investment advisor markets. AFG’s reportable segments and their components were determined based primarily upon similar economic characteristics, products and services.

Sales of property and casualty insurance outside of the United States represented 7% of AFG’s revenues in 2019 and in 2018 and 5% of AFG’s revenues in 2017. Approximately two-thirds of these 2019 sales were through the Neon Lloyd’s of London business, which AFG is exiting and will no longer write property and casualty business (beginning in early 2020).

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



	2019		2018		2017
Assets
Property and casualty insurance (a)	$	19,098	$	17,681	$	17,171
Annuity	45,074		39,952		37,179
Other	5,958		5,823		6,308
Total assets	$	70,130	$	63,456	$	60,658



Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	1,828	$	1,729		$	1,711
Specialty casualty	2,597		2,403			2,186
Specialty financial	610		598			576
Other specialty	150		135			106
Total premiums earned	5,185		4,865			4,579
Net investment income	472		438			362
Other income	11		10			28
Total property and casualty insurance	5,668		5,313			4,969
Annuity:
Net investment income	1,792		1,638			1,458
Other income	108		107			103
Total annuity	1,900		1,745			1,561
Other	382		358			330
Total revenues before realized gains (losses)	7,950		7,416			6,860
Realized gains (losses) on securities	287		(266		)	5
Total revenues	$	8,237	$	7,150		$	6,865


(a)	Not allocable to sub-segments.



	2019			2018			2017
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	79		$	120		$	154
Specialty casualty	175			141			104
Specialty financial	92			66			61
Other specialty	(21		)	(5		)	(2		)
Other lines (a)	(113		)	(20		)	(75		)
Total underwriting	212			302			242
Investment and other income, net	437			407			349
Total property and casualty insurance	649			709			591
Annuity	362			361			380
Other (b)	(190		)	(165		)	(252		)
Total earnings before realized gains (losses) and income taxes	821			905			719
Realized gains (losses) on securities	287			(266		)	5
Total earnings before income taxes	$	1,108		$	639		$	724


(a)	Includes special charges to increase asbestos and environmental (“A&E”) reserves of $18 million in both 2019 and 2018 and $89 million in 2017, respectively. Also includes a $76 million charge in 2019 and $18 million in favorable development recorded in 2017 related to the Neon exited lines.

(b)

Primarily holding company interest and expenses, including losses on retirement of debt of $5 million in 2019 and $51 million in 2017 and special charges to increase A&E reserves related to AFG’s former railroad and manufacturing operations ($11 million in 2019, $9 million in 2018 and $24 million in 2017).

Fair Value Measurements

12 Months Ended

Dec. 31, 2019

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, 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, asset-backed securities (“ABS”), mortgage-backed securities (“MBS”), certain non-affiliated common stocks, equity index options 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 at the valuation date. 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 are classified as Level 3.

As discussed in Note A — “Accounting Policies — Managed Investment Entities,” AFG has set the carrying value of its 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. As a result, 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 20 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 services regarding the methods and assumptions used in pricing, including verifying, on a test basis, the inputs used by the service to value specific securities.

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
December 31, 2019
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies	$	151	$	43	$	15	$	209
States, municipalities and political subdivisions	—		6,858		105		6,963
Foreign government	—		172		—		172
Residential MBS	—		2,987		173		3,160
Commercial MBS	—		892		35		927
Collateralized loan obligations	—		4,265		15		4,280
Other asset-backed securities	—		5,842		1,286		7,128
Corporate and other	29		21,879		1,758		23,666
Total AFS fixed maturities	180		42,938		3,387		46,505
Trading fixed maturities	2		111		—		113
Equity securities	1,433		67		437		1,937
Equity index call options	—		924		—		924
Assets of managed investment entities (“MIE”)	213		4,506		17		4,736
Variable annuity assets (separate accounts) (*)	—		628		—		628
Other assets — derivatives	—		50		—		50
Total assets accounted for at fair value	$	1,828	$	49,224	$	3,841	$	54,893
Liabilities:
Liabilities of managed investment entities	$	206	$	4,349	$	16	$	4,571
Derivatives in annuity benefits accumulated	—		—		3,730		3,730
Other liabilities — derivatives	—		10		—		10
Total liabilities accounted for at fair value	$	206	$	4,359	$	3,746	$	8,311

December 31, 2018
Assets:
Available for sale fixed maturities:
U.S. Government and government agencies	$	141	$	83	$	9	$	233
States, municipalities and political subdivisions	—		6,880		59		6,939
Foreign government	—		142		—		142
Residential MBS	—		2,547		197		2,744
Commercial MBS	—		864		56		920
Collateralized loan obligations	—		4,162		116		4,278
Other asset-backed securities	—		4,802		731		5,533
Corporate and other	28		19,184		1,996		21,208
Total AFS fixed maturities	169		38,664		3,164		41,997
Trading fixed maturities	9		96		—		105
Equity securities	1,410		68		336		1,814
Equity index call options	—		184		—		184
Assets of managed investment entities	203		4,476		21		4,700
Variable annuity assets (separate accounts) (*)	—		557		—		557
Other assets — derivatives	—		16		—		16
Total assets accounted for at fair value	$	1,791	$	44,061	$	3,521	$	49,373
Liabilities:
Liabilities of managed investment entities	$	195	$	4,297	$	20	$	4,512
Derivatives in annuity benefits accumulated	—		—		2,720		2,720
Other liabilities — derivatives	—		49		—		49
Total liabilities accounted for at fair value	$	195	$	4,346	$	2,740	$	7,281

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

The transfers between Level 1 and Level 2 for the years ended December 31, 2019, 2018 and 2017 are reflected in the table below at fair value as of the end of the reporting period (dollars in millions):



	Level 2 To Level 1 Transfers									Level 1 To Level 2 Transfers
	# of Transfers			Fair Value						# of Transfers			Fair Value
	2019	2018	2017	2019		2018		2017		2019	2018	2017	2019		2018		2017
Perpetual preferred stocks	2	2	4	$	11	$	5	$	23	1	2	2	$	6	$	6	$	11
Common stocks	1	—	—	—		—		—		—	—	1	—		—		—

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

Approximately 7% of the total assets carried at fair value on December 31, 2019, were Level 3 assets. Approximately 57% ($2.17 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.

Internally developed Level 3 asset fair values represent approximately $1.36 billion at December 31, 2019. Of this amount, approximately $716 million relates to fixed maturity securities that were priced using management’s best estimate of an appropriate credit spread over the treasury yield (of a similar duration) to discount future expected cash flows using a third-party model. The credit spread applied by management is the significant unobservable input. For this group of approximately 35 securities, the average spread used was 396 basis points over the reference treasury yield and the spreads ranged from 100 basis points to 1,253 basis points (approximately 70% of the spreads were between 200 and 700 basis points). Had management used higher spreads, the fair value of this group of securities would have been lower. Conversely, if the spreads used were lower, the fair values would have been higher. For the remainder of the internally developed prices, any justifiable changes in unobservable inputs used to determine fair value would not have resulted in a material change in AFG’s financial position.

The derivatives embedded in AFG’s fixed-indexed and variable-indexed annuity liabilities are measured using a discounted cash flow approach and had a fair value of $3.73 billion at December 31, 2019. The following table presents information about the unobservable inputs used by management in determining fair value of these Level 3 liabilities. See Note F — “Derivatives.”



	Unobservable Input		Range
	Adjustment for insurance subsidiary’s credit risk		0.2% – 2.4% over the risk-free rate
	Risk margin for uncertainty in cash flows		0.80% reduction in the discount rate
	Surrenders		3% – 22% of indexed account value
	Partial surrenders		2% – 9% of indexed account value
	Annuitizations		0.1% – 1% of indexed account value
	Deaths		1.5% – 10.6% of indexed account value
	Budgeted option costs		2.5% – 3.3% of indexed account value

The range of adjustments for insurance subsidiary’s credit risk is based on the Moody’s corporate A2 bond index and 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 and variable-indexed annuity products with an expected range of 7% to 10% in the majority of future calendar years (3% to 22% over all periods). Increasing the budgeted option cost or risk margin for uncertainty in cash flow assumptions in the table above would increase the fair value of the fixed-indexed and variable-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 2019, 2018 and 2017 are presented below (in millions). The transfers into and out of Level 3 were due to changes in the availability of market observable inputs and $29 million of equity securities transferred into Level 3 in the first quarter of 2018 related to a small number of limited partnerships and similar investments carried at cost under the prior guidance that are carried at fair value through net earnings under new guidance adopted on January 1, 2018, as discussed in Note A — “Accounting Policies — Investments.” 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, 2018			Net earnings			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at December 31, 2019
AFS fixed maturities:
U.S. government agency	$	9		$	—		$	7		$	—		$	(1	)	$	—	$	—		$	15
State and municipal	59			—			5			—			(3		)	55		(11		)	105
Residential MBS	197			6			(3		)	—			(20		)	48		(55		)	173
Commercial MBS	56			2			—			—			(12		)	4		(15		)	35
Collateralized loan obligations	116			(5		)	5			—			—			28		(129		)	15
Other asset-backed securities	731			—			6			787			(192		)	23		(69		)	1,286
Corporate and other	1,996			(3		)	55			738			(335		)	30		(723		)	1,758
Total AFS fixed maturities	3,164			—			75			1,525			(563		)	188		(1,002		)	3,387
Equity securities	336			(5		)	—			52			(2		)	56		—			437
Assets of MIE	21			(5		)	—			1			—			—		—			17
Total Level 3 assets	$	3,521		$	(10	)	$	75		$	1,578		$	(565	)	$	244	$	(1,002	)	$	3,841

Embedded derivatives (a)	$	(2,720	)	$	(919	)	$	—		$	(333	)	$	242		$	—	$	—		$	(3,730	)
Total Level 3 liabilities (b)	$	(2,720	)	$	(919	)	$	—		$	(333	)	$	242		$	—	$	—		$	(3,730	)


(a)	Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes a favorable adjustment related to the unlocking of actuarial assumptions of $181 million in 2019.


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



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2017			Net earnings			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at December 31, 2018
AFS fixed maturities:
U.S. government agency	$	8		$	—		$	—		$	—		$	—		$	1	$	—		$	9
State and municipal	148			—			(2		)	—			(3		)	—		(84		)	59
Residential MBS	122			(9		)	(4		)	—			(21		)	130		(21		)	197
Commercial MBS	36			—			—			20			—			—		—			56
Collateralized loan obligations	200			(3		)	(13		)	35			(20		)	3		(86		)	116
Other asset-backed securities	544			—			(2		)	391			(228		)	79		(53		)	731
Corporate and other	1,044			(10		)	(18		)	1,221			(204		)	27		(64		)	1,996
Total AFS fixed maturities	2,102			(22		)	(39		)	1,667			(476		)	240		(308		)	3,164
Equity securities	165			9			—			155			(6		)	30		(17		)	336
Assets of MIE	23			(8		)	—			6			—			—		—			21
Total Level 3 assets	$	2,290		$	(21	)	$	(39	)	$	1,828		$	(482	)	$	270	$	(325	)	$	3,521

Embedded derivatives (a)	$	(2,542	)	$	204		$	—		$	(545	)	$	163		$	—	$	—		$	(2,720	)
Total Level 3 liabilities (b)	$	(2,542	)	$	204		$	—		$	(545	)	$	163		$	—	$	—		$	(2,720	)


(a)	Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $44 million in 2018.


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



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2016			Net earnings			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at December 31, 2017
AFS fixed maturities:
U.S. government agency	$	8		$	—		$	—		$	—		$	—		$	—	$	—		$	8
State and municipal	140			—			2			—			(2		)	10		(2		)	148
Residential MBS	190			(4		)	2			1			(40		)	44		(71		)	122
Commercial MBS	25			2			—			15			(10		)	4		—			36
Collateralized loan obligations	174			(1		)	(1		)	55			(27		)	—		—			200
Other asset-backed securities	310			1			2			355			(105		)	202		(221		)	544
Corporate and other	712			(5		)	2			606			(237		)	29		(63		)	1,044
Total AFS fixed maturities	1,559			(7		)	7			1,032			(421		)	289		(357		)	2,102
Equity securities	174			(21		)	10			38			(16		)	—		(20		)	165
Assets of MIE	29			(11		)	—			9			—			—		(4		)	23
Total Level 3 assets	$	1,762		$	(39	)	$	17		$	1,079		$	(437	)	$	289	$	(381	)	$	2,290

Embedded derivatives (a)	$	(1,759	)	$	(589	)	$	—		$	(300	)	$	106		$	—	$	—		$	(2,542	)
Total Level 3 liabilities (b)	$	(1,759	)	$	(589	)	$	—		$	(300	)	$	106		$	—	$	—		$	(2,542	)


(a)	Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $25 million in 2017.


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

Fair Value of Financial Instruments The carrying value and fair value of financial instruments that are not carried at fair value in the financial statements at December 31 are summarized below (in millions):



	Carrying		Fair Value
	Value		Total		Level 1		Level 2		Level 3
2019
Financial assets:
Cash and cash equivalents	$	2,314	$	2,314	$	2,314	$	—	$	—
Mortgage loans	1,329		1,346		—		—		1,346
Policy loans	164		164		—		—		164
Total financial assets not accounted for at fair value	$	3,807	$	3,824	$	2,314	$	—	$	1,510
Financial liabilities:
Annuity benefits accumulated (*)	$	40,159	$	40,182	$	—	$	—	$	40,182
Long-term debt	1,473		1,622		—		1,619		3
Total financial liabilities not accounted for at fair value	$	41,632	$	41,804	$	—	$	1,619	$	40,185

2018
Financial assets:
Cash and cash equivalents	$	1,515	$	1,515	$	1,515	$	—	$	—
Mortgage loans	1,068		1,056		—		—		1,056
Policy loans	174		174		—		—		174
Total financial assets not accounted for at fair value	$	2,757	$	2,745	$	1,515	$	—	$	1,230
Financial liabilities:
Annuity benefits accumulated (*)	$	36,384	$	34,765	$	—	$	—	$	34,765
Long-term debt	1,302		1,231		—		1,228		3
Total financial liabilities not accounted for at fair value	$	37,686	$	35,996	$	—	$	1,228	$	34,768

(*)

Excludes $247 million and $232 million of life contingent annuities in the payout phase at December 31, 2019 and 2018, respectively.

- Definition

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

+ References + Details

Investments

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Investments

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



	2019												2018
	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	$	199	$	10	$	—		$	10		$	209	$	235	$	1	$	(3	)	$	(2	)	$	233
States municipalities and political subdivisions	6,604		363		(4		)	359			6,963		6,825		169		(55		)	114			6,939
Foreign government	170		3		(1		)	2			172		140		2		—			2			142
Residential MBS	2,900		265		(5		)	260			3,160		2,476		277		(9		)	268			2,744
Commercial MBS	896		31		—			31			927		905		17		(2		)	15			920
Collateralized loan obligations	4,307		10		(37		)	(27		)	4,280		4,350		1		(73		)	(72		)	4,278
Other asset-backed securities	6,992		156		(20		)	136			7,128		5,431		129		(27		)	102			5,533
Corporate and other	22,456		1,231		(21		)	1,210			23,666		21,475		167		(434		)	(267		)	21,208
Total fixed maturities	$	44,524	$	2,069	$	(88	)	$	1,981		$	46,505	$	41,837	$	763	$	(603	)	$	160		$	41,997

The non-credit related portion of other-than-temporary impairment charges is included in other comprehensive income. Cumulative non-credit charges taken for securities still owned at December 31, 2019 and December 31, 2018 were $118 million and $140 million, respectively. Gross unrealized gains on such securities at December 31, 2019 and December 31, 2018 were $114 million and $119 million, respectively. Gross unrealized losses on such securities at December 31, 2019 and December 31, 2018 were $1 million and $4 million, respectively. These amounts represent the non-credit other-than-temporary impairment charges recorded in AOCI adjusted for subsequent changes in fair values and relate primarily to residential MBS.

Equity securities, which are reported at fair value with holding gains and losses recognized in net earnings, consisted of the following at December 31 (in millions):



	2019						2018
					Fair Value						Fair Value
	Actual				over (under)		Actual				over (under)
	Cost		Fair Value		Cost		Cost		Fair Value		Cost
Common stocks	$	1,164	$	1,283	$	119	$	1,241	$	1,148	$	(93	)
Perpetual preferred stocks	640		654		14		705		666		(39		)
Total equity securities carried at fair value	$	1,804	$	1,937	$	133	$	1,946	$	1,814	$	(132	)

The following tables show gross unrealized losses (dollars in millions) on available for sale fixed maturities by investment category and length of time that individual securities have been in a continuous unrealized loss position at the following balance sheet dates.



	Less Than Twelve Months							Twelve Months or More
	Unrealized Loss			Fair Value		Fair Value as % of Cost		Unrealized Loss			Fair Value		Fair Value as % of Cost
	Unrealized Loss			Fair Value		Fair Value as % of Cost		Unrealized Loss			Fair Value		Fair Value as % of Cost
December 31, 2019
Fixed maturities:
U.S. Government and government agencies	$	—		$	16	100	%	$	—		$	11	100	%
States, municipalities and political subdivisions	(3		)	254		99	%	(1		)	82		99	%
Foreign government	(1		)	70		99	%	—			—		—	%
Residential MBS	(4		)	509		99	%	(1		)	69		99	%
Commercial MBS	—			17		100	%	—			—		—	%
Collateralized loan obligations	(11		)	1,284		99	%	(26		)	1,728		99	%
Other asset-backed securities	(12		)	1,211		99	%	(8		)	123		94	%
Corporate and other	(13		)	1,100		99	%	(8		)	211		96	%
Total fixed maturities	$	(44	)	$	4,461	99	%	$	(44	)	$	2,224	98	%

December 31, 2018
Fixed maturities:
U.S. Government and government agencies	$	—		$	41	100	%	$	(3	)	$	120	98	%
States, municipalities and political subdivisions	(23		)	1,497		98	%	(32		)	902		97	%
Foreign government	—			18		100	%	—			4		100	%
Residential MBS	(4		)	279		99	%	(5		)	139		97	%
Commercial MBS	(1		)	147		99	%	(1		)	30		97	%
Collateralized loan obligations	(61		)	3,540		98	%	(12		)	197		94	%
Other asset-backed securities	(16		)	1,866		99	%	(11		)	432		98	%
Corporate and other	(306		)	10,378		97	%	(128		)	2,078		94	%
Total fixed maturities	$	(411	)	$	17,766	98	%	$	(192	)	$	3,902	95	%

At December 31, 2019, the gross unrealized losses on fixed maturities of $88 million relate to 649 securities. Investment grade securities (as determined by nationally recognized rating agencies) represented approximately 74% of the gross unrealized loss and 93% of the fair value.

The determination of whether unrealized losses are other-than-temporary requires judgment based on subjective as well as objective factors. Factors considered and resources used by management include:


a)	whether the unrealized loss is credit-driven or a result of changes in market interest rates,


b)	the extent to which fair value is less than cost basis,


c)	cash flow projections received from independent sources,


d)	historical operating, balance sheet and cash flow data contained in issuer SEC filings and news releases,


e)	near-term prospects for improvement in the issuer and/or its industry,


f)	third-party research and communications with industry specialists,


g)	financial models and forecasts,


h)	the continuity of interest payments, maintenance of investment grade ratings and hybrid nature of certain investments,


i)	discussions with issuer management, and


j)	ability and intent to hold the investment for a period of time sufficient to allow for anticipated recovery in fair value.

AFG analyzes its MBS securities for other-than-temporary impairment each quarter based upon expected future cash flows. Management estimates expected future cash flows based upon its knowledge of the MBS market, cash flow projections (which reflect loan to collateral values, subordination, vintage and geographic concentration) received from independent sources, implied cash flows inherent in security ratings and analysis of historical payment data. During 2019, 2018 and 2017, AFG recorded other-than-temporary impairment charges related to its residential MBS of $1 million, $6 million and $1 million, respectively.

In 2019, AFG recorded other-than-temporary impairment charges of $17 million on third-party collateralized loan obligations and $11 million on corporate bonds. Other-than-temporary impairment charges on fixed maturities other than residential MBS were $20 million in 2018 and $19 million in 2017. In addition, AFG recorded $4 million in other-than-temporary impairment charges in 2017 on investments that are included in other investments on the balance sheet.

Management believes AFG will recover its cost basis in the securities with unrealized losses and that AFG has the ability to hold the securities until they recover in value and had no intent to sell them at December 31, 2019.

As discussed in Note A — “Accounting Policies — Investments,” effective January 1, 2018, all equity securities previously classified as “available for sale” are required to be carried at fair value through net earnings instead of accumulated other comprehensive income and therefore are no longer evaluated for other-than-temporary impairment. In 2017, AFG recorded other-than-temporary impairment charges on equity securities classified as available for sale of $64 million.

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):



	2019			2018			2017
Balance at January 1	$	142		$	145		$	153
Additional credit impairments on:
Previously impaired securities	1			1			1
Securities without prior impairments	—			1			3
Reductions due to sales or redemptions	(9		)	(5		)	(12		)
Balance at December 31	$	134		$	142		$	145

The table below sets forth the scheduled maturities of available for sale fixed maturities as of December 31, 2019 (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	$	1,764	$	1,793	4	%
After one year through five years	10,613		11,044		24	%
After five years through ten years	13,513		14,419		31	%
After ten years	3,539		3,754		8	%
	29,429		31,010		67	%
Collateralized loan obligations and other ABS (average life of approximately 4 years)	11,299		11,408		24	%
MBS (average life of approximately 4-1/2 years)	3,796		4,087		9	%
Total	$	44,524	$	46,505	100	%

Certain risks are inherent in fixed maturity securities, including loss upon default, price volatility in reaction to changes in interest rates, and general market factors and risks associated with reinvestment of proceeds due to prepayments or redemptions in a period of declining interest rates.

There were no investments in individual issuers that exceeded 10% of shareholders’ equity at December 31, 2019 or 2018.

Net Unrealized Gain on Marketable Securities In addition to adjusting 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			Net
December 31, 2019
Net unrealized gain on:
Fixed maturities — annuity segment (*)	$	1,611		$	(338	)	$	1,273
Fixed maturities — all other	370			(78		)	292
Total fixed maturities	1,981			(416		)	1,565
Deferred policy acquisition costs — annuity segment	(681		)	143			(538		)
Annuity benefits accumulated	(219		)	46			(173		)
Life, accident and health reserves	(1		)	—			(1		)
Unearned revenue	11			(2		)	9
Total net unrealized gain on marketable securities	$	1,091		$	(229	)	$	862

December 31, 2018
Net unrealized gain on:
Fixed maturities — annuity segment (*)	$	101		$	(21	)	$	80
Fixed maturities — all other	59			(13		)	46
Total fixed maturities	160			(34		)	126
Deferred policy acquisition costs — annuity segment	(42		)	9			(33		)
Annuity benefits accumulated	(14		)	3			(11		)
Unearned revenue	1			—			1
Total net unrealized gain on marketable securities	$	105		$	(22	)	$	83


(*)	Net 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.



	2019			2018			2017
Investment income:
Fixed maturities	$	1,915		$	1,742		$	1,607
Equity securities:
Dividends	85			79			73
Change in fair value (*)	39			22			6
Equity in earnings of partnerships and similar investments	154			161			64
Other	132			112			102
Gross investment income	2,325			2,116			1,852
Investment expenses	(22		)	(22		)	(21		)
Net investment income	$	2,303		$	2,094		$	1,831

(*)

Although the change in the fair value of the majority of AFG’s equity securities is recorded in realized gains (losses) on securities, AFG records holding gains and losses in net investment income on equity securities classified as “trading” under previous guidance and on a small portfolio of limited partnership and similar investments that do not qualify for the equity method of accounting.

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



	2019												2018
	Realized gains (losses)												Realized gains (losses)
	Before Impairments			Impairments			Total			Change in Unrealized			Before Impairments			Impairments			Total			Change in Unrealized
Fixed maturities	$	26		$	(29	)	$	(3	)	$	1,821		$	6		$	(26	)	$	(20	)	$	(1,181	)
Equity securities	277			—			277			—			(265		)	—			(265		)	—
Mortgage loans and other investments	3			—			3			—			1			—			1			—
Other (*)	—			10			10			(835		)	11			7			18			502
Total pretax	306			(19		)	287			986			(247		)	(19		)	(266		)	(679		)
Tax effects	(64		)	4			(60		)	(207		)	52			4			56			143
Net of tax	$	242		$	(15	)	$	227		$	779		$	(195	)	$	(15	)	$	(210	)	$	(536	)



	2017
	Realized gains (losses)
	Before Impairments			Impairments			Total			Change in Unrealized
Fixed maturities	$	17		$	(20	)	$	(3	)	$	532
Equity securities	70			(64		)	6			128
Mortgage loans and other investments	(6		)	(4		)	(10		)	—
Other (*)	(3		)	15			12			(219		)
Total pretax	78			(73		)	5			441
Tax effects:
Reclassify impact of U.S. corporate tax rate change	—			—			—			149
Other	(27		)	25			(2		)	(154		)
Total tax effects	(27		)	25			(2		)	(5		)
Net of tax	$	51		$	(48	)	$	3		$	436


(*)	Primarily adjustments to deferred policy acquisition costs and reserves related to the annuity business.

As discussed in Note A — “Accounting Policies — Investments,” effective January 1, 2018, all equity securities other than those accounted for under the equity method are carried at fair value through net earnings. AFG recorded net holding gains (losses) on equity securities during 2019 and 2018 on securities that were still owned at December 31 as follows (in millions):



	2019		2018
Included in realized gains (losses)	$	169	$	(279	)
Included in net investment income	38		22
	$	207	$	(257	)

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



	2019			2018			2017
Gross gains	$	35		$	22		$	43
Gross losses	(19		)	(14		)	(20		)

During 2017, AFG recorded gross gains of $87 million and gross losses of $17 million on available for sale equity securities.

Derivatives

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

As discussed under “Derivatives” in Note A — “Accounting Policies,” AFG uses derivatives in certain areas of its operations.

Derivatives That Do Not Qualify for Hedge Accounting The following derivatives that do not qualify for hedge accounting under GAAP are included in AFG’s Balance Sheet at fair value (in millions):



		December 31, 2019				December 31, 2018
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	102	$	—	$	109	$	—
Public company warrants	Equity securities	—		—		—		—
Fixed-indexed and variable-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		3,730		—		2,720
Equity index call options	Equity index call options	924		—		184		—
Equity index put options	Other liabilities	—		1		—		1
Reinsurance contract (embedded derivative)	Other liabilities	—		4		—		2
		$	1,026	$	3,735	$	293	$	2,723

The MBS with embedded derivatives consist of primarily interest-only and principal-only MBS. 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 and variable-indexed annuities provide policyholders with a crediting rate tied, in part, to the performance of an existing stock market or other financial index. AFG attempts to mitigate the risk in the index-based component of these products through the purchase and sale of call and put options on the appropriate index. AFG receives collateral from certain counterparties to support its purchased call option assets (net of collateral required under put option contracts with the same counterparties). This collateral ($577 million at December 31, 2019 and $103 million at December 31, 2018) 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 net change in the fair value of the call and put options will generally offset the economic change in the net liability from the index participation. Both the index-based component of the annuities (an embedded derivative) and the related call and put options are considered derivatives that must be adjusted for changes in fair value through earnings each period. The fair values of these derivatives are impacted by actual and expected stock market performance and interest rates as well as other factors. Fluctuations in certain of these factors, such as changes in interest rates and the performance of the stock market, are not economic in nature for the current reporting period, but rather impact the timing of reported results.

As discussed under “Reinsurance” in Note A, AFG has a reinsurance contract that is considered to contain an embedded derivative.

The following table summarizes the gains (losses) included in AFG’s Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting for 2019, 2018 and 2017 (in millions):



Derivative	Statement of Earnings Line	2019			2018			2017
MBS with embedded derivatives	Realized gains (losses) on securities	$	10		$	(7	)	$	(6	)
Public company warrants	Realized gains (losses) on securities	(1		)	(3		)	—
Fixed-indexed and variable-indexed annuities (embedded derivative) (*)	Annuity benefits	(919		)	204			(589		)
Equity index call options	Annuity benefits	804			(298		)	494
Equity index put options	Annuity benefits	2			(1		)	—
Reinsurance contracts (embedded derivative)	Net investment income	(2		)	2			(2		)
		$	(106	)	$	(103	)	$	(103	)


(*)	The change in fair value of the embedded derivative includes a favorable adjustment related to unlocking of actuarial assumptions of $181 million in 2019 and losses of $44 million in 2018 and $25 million in 2017.

Derivatives Designated and Qualifying as Cash Flow Hedges As of December 31, 2019, AFG has thirteen active 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 generally decline over each swap’s respective life (the swaps expire between April 2020 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 was $1.98 billion at December 31, 2019 compared to $2.35 billion at December 31, 2018, reflecting the scheduled amortization discussed above, the termination of two swaps with notional amounts of $138 million and $100 million (on the settlement dates) in the second quarter and fourth quarter of 2019, respectively, and the expiration of a swap with a notional amount of $78 million (on the expiration date) in the third quarter of 2019. The fair value of the interest rate swaps in an asset position and included in other assets was $50 million at December 31, 2019 and $16 million at December 31, 2018. The fair value of the interest rate swaps in a liability position and included in other liabilities was $5 million at December 31, 2019 and $46 million at December 31, 2018. The net unrealized gain or loss on cash flow hedges is included in AOCI, net of DPAC and deferred taxes. Amounts reclassified from AOCI (before DPAC and taxes) to net investment income were income of $3 million in 2019, losses of $3 million in 2018 and income of $6 million in 2017. A collateral receivable supporting these swaps of $20 million at December 31, 2019 and $135 million at December 31, 2018 is included in other assets in AFG’s Balance Sheet.

Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2019

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 Other
	Deferred			Deferred			Sales															Consolidated
	Costs			Costs			Inducements			PVFP			Subtotal			Unrealized (*)			Total			Total
Balance at December 31, 2016	$	238		$	1,110		$	110		$	46		$	1,266		$	(265	)	$	1,001		$	1,239
Additions	588			225			4			—			229			—			229			817
Amortization:
Periodic amortization	(556		)	(161		)	(19		)	(8		)	(188		)	—			(188		)	(744		)
Annuity unlocking	—			34			6			1			41			—			41			41
Included in realized gains	—			9			1			—			10			—			10			10
Foreign currency translation	—			—			—			—			—			—			—			—
Other	—			—			—			10			10			—			10			10
Change in unrealized	—			—			—			—			—			(157		)	(157		)	(157		)
Balance at December 31, 2017	270			1,217			102			49			1,368			(422		)	946			1,216

Additions	675			263			2			—			265			—			265			940
Amortization:
Periodic amortization	(644		)	(238		)	(19		)	(7		)	(264		)	—			(264		)	(908		)
Annuity unlocking	—			29			—			—			29			—			29			29
Included in realized gains	—			14			1			—			15			—			15			15
Foreign currency translation	(2		)	—			—			—			—			—			—			(2		)
Change in unrealized	—			—			—			—			—			392			392			392
Balance at December 31, 2018	299			1,285			86			42			1,413			(30		)	1,383			1,682

Additions	744			206			2			—			208			—			208			952
Amortization:
Periodic amortization	(721		)	(120		)	(13		)	(6		)	(139		)	—			(139		)	(860		)
Annuity unlocking	—			(76		)	(1		)	—			(77		)	—			(77		)	(77		)
Included in realized gains	—			8			1			—			9			—			9			9
Foreign currency translation	—			—			—			—			—			—			—			—
Change in unrealized	—			—			—			—			—			(669		)	(669		)	(669		)
Balance at December 31, 2019	$	322		$	1,303		$	75		$	36		$	1,414		$	(699	)	$	715		$	1,037


(*)	Adjustments to DPAC related to net unrealized gains/losses on securities and cash flow hedges.

The present value of future profits (“PVFP”) amounts in the table above are net of $154 million and $148 million of accumulated amortization at December 31, 2019 and 2018, respectively. During each of the next five years, the PVFP is expected to decrease at a rate of approximately one-eighth of the balance at the beginning of each respective year.

Managed Investment Entities

12 Months Ended

Dec. 31, 2019

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 60.9% of the most subordinate debt tranche of eleven active collateralized loan obligation entities (“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 2012 and 2018, 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 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 the CLOs that it manages is limited to its investment in those CLOs, which had an aggregate fair value of $165 million (including $102 million invested in the most subordinate tranches) at December 31, 2019, and $188 million at December 31, 2018.

During 2019, AFG subsidiaries received less than $1 million in redemption proceeds from their CLO investments. In 2018, AFG formed a new CLO, which issued $463 million face amount of liabilities (including $31 million face amount purchased by subsidiaries of AFG). During 2018, AFG subsidiaries also purchased $7 million face amount of a senior debt tranche of an existing CLO for $7 million and received $45 million in sale and redemption proceeds from its CLO investments. In 2017, AFG formed two new CLOs, which issued an aggregate of $865 million face amount of liabilities (including $48 million face amount purchased by subsidiaries of AFG). During 2017, AFG subsidiaries also purchased $71 million face amount of senior debt and subordinate tranches of existing CLOs for $71 million and received $103 million in sale and redemption proceeds from its CLO investments. In 2018 and 2017, one and two AFG CLOs, respectively, were substantially liquidated, as permitted by the CLO indentures.

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. Selected financial information related to the CLOs is shown below (in millions):



	Year ended December 31,
	2019			2018			2017
Investment in CLO tranches	$	165		$	188		$	215
Gains (losses) on change in fair value of assets/liabilities (a):
Assets	80			(189		)	(8		)
Liabilities	(110		)	168			20
Management fees paid to AFG	15			16			18
CLO earnings attributable to AFG Shareholders (b)	4			7			23


(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 $146 million and $232 million at December 31, 2019 and 2018, respectively. The aggregate unpaid principal balance of the CLOs’ debt exceeded its carrying value by $129 million and $241 million at those dates. The CLO assets include loans with an aggregate fair value of $10 million at December 31, 2019, for which the CLOs are not accruing interest because the loans are in default (aggregate unpaid principal balance of $25 million; none at December 31, 2018).

In addition to the CLOs that it manages, AFG had investments in CLOs that are managed by third parties (therefore not consolidated), which are included in available for sale fixed maturity securities and had a carrying value of $4.28 billion at both December 31, 2019 and December 31, 2018.

Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Changes in the carrying value of goodwill during 2017, 2018 and 2019, by reporting segment, are presented in the following table (in millions):



	Property and Casualty		Annuity		Total
Balance at January 1, 2017 and December 31, 2017	$	168	$	31	$	199
Acquisition of subsidiary in 2018	8		—		8
Balance at December 31, 2018 and December 31, 2019	$	176	$	31	$	207

Goodwill increased by $8 million in the fourth quarter of 2018 due to the purchase of ABAIS as discussed in Note B — “Acquisitions and Sale of Businesses.”

Included in other assets in AFG’s Balance Sheet is $43 million at December 31, 2019 and $54 million at December 31, 2018 of amortizable intangible assets related to property and casualty insurance acquisitions. These amounts are net of accumulated amortization of $50 million and $39 million, respectively. The increase in amortizable intangible assets in 2018 relates to the November 2018 acquisition of ABAIS (discussed in Note B — “Acquisitions and Sale of Businesses”) and a renewal rights intangible asset established in connection with the acquisition of a small property and casualty book of business in January 2018. Amortization of intangibles was $11 million in 2019, $9 million in 2018 and $8 million in 2017. Future amortization of intangibles (weighted average amortization period of 4 years) is estimated to be $12 million in 2020, $6 million in 2021, $4 million per year in 2022, 2023 and 2024 and $13 million thereafter.

Long-Term Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt consisted of the following at December 31 (in millions):



	2019							2018
	Principal		Discount and Issue Costs			Carrying Value		Principal		Discount and Issue Costs			Carrying Value
Direct Senior Obligations of AFG:
4.50% Senior Notes due June 2047	$	590	$	(2	)	$	588	$	590	$	(2	)	$	588
3.50% Senior Notes due August 2026	425		(3		)	422		425		(4		)	421
Other	3		—			3		3		—			3
	1,018		(5		)	1,013		1,018		(6		)	1,012

Direct Subordinated Obligations of AFG:
5.125% Subordinated Debentures due December 2059	200		(6		)	194		—		—			—
6% Subordinated Debentures due November 2055	150		(5		)	145		150		(5		)	145
5.875% Subordinated Debentures due March 2059	125		(4		)	121		—		—			—
6-1/4% Subordinated Debentures due September 2054	—		—			—		150		(5		)	145
	475		(15		)	460		300		(10		)	290
	$	1,493	$	(20	)	$	1,473	$	1,318	$	(16	)	$	1,302

AFG has no scheduled principal payments on its long-term debt in the next five years.

In December 2019, AFG issued $200 million in 5.125% Subordinated Debentures due in 2059. The net proceeds of the offering were used, in part, to redeem AFG’s $150 million outstanding principal amount of 6-1/4% Subordinated Debentures due September 2054 at par value in December 2019.

In March 2019, AFG issued $125 million in 5.875% Subordinated Debentures due in 2059.

AFG can borrow up to $500 million under its revolving credit facility, which expires in June 2021. Amounts borrowed under this agreement bear interest at rates ranging from 1.00% to 1.875% (currently 1.375%) over LIBOR based on AFG’s credit rating. No amounts were borrowed under this facility at December 31, 2019 or December 31, 2018.

Cash interest payments on long-term debt were $65 million in 2019, $59 million in 2018 and $85 million in 2017.

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

AFG and its subsidiaries lease real estate that is primarily used for office space and, to a lesser extent, equipment under operating lease arrangements. Most of AFG’s real estate leases include an option to extend or renew the lease term at AFG’s option. The operating lease liability includes lease payments related to options to extend or renew the lease term if AFG is reasonably certain of exercising those options. Lease payments are discounted using the implicit discount rate in the lease. If the implicit discount rate for the lease cannot be readily determined, AFG uses an estimate of its incremental secured borrowing rate. AFG did not have any material contracts accounted for as finance leases at December 31, 2019 or January 1, 2019.

At December 31, 2019, AFG’s $158 million operating lease right-of-use asset (presented net of $22 million in deferred rent and lease incentives) and $180 million operating lease liability are included in other assets and other liabilities, respectively, in AFG’s Balance Sheet.

The following table details AFG’s lease activity for the year ended December 31, 2019 (in millions):



	2019
Lease expense:
Operating leases	$	46
Short-term leases	1
Total lease expense	$	47

Other operating lease information for the year ended December 31, 2019 (in millions):



Cash paid for lease liabilities reported in operating cash flows	$	49
Right-of-use assets obtained under new leases	19

The following table presents the undiscounted contractual maturities of AFG’s operating lease liability at December 31, 2019 (in millions):



Operating lease payments:
2020	$	46
2021	41
2022	32
2023	27
2024	20
Thereafter	35
Total lease payments	201
Impact of discounting	(21		)
Operating lease liability	$	180



Weighted-average remaining lease term	5.5 years
Weighted-average discount rate	4.1	%

Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ Equity

AFG is authorized to issue 12.5 million shares of Voting Preferred Stock and 12.5 million shares of Nonvoting Preferred Stock, each without par value.

Stock Incentive Plans Under AFG’s stock incentive plans, employees of AFG and its subsidiaries are eligible to receive equity awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units and stock awards. At December 31, 2019, there were 4.5 million shares of AFG Common Stock reserved for issuance under AFG’s stock incentive plans.

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



	Shares		Average Grant Date Fair Value
Outstanding at January 1, 2019	865,930		$	84.06
Granted	232,635		$	99.28
Vested	(167,326	)	$	66.10
Forfeited	(11,304	)	$	90.26
Outstanding at December 31, 2019	919,935		$	91.10

The total fair value of restricted stock that vested during 2019, 2018 and 2017 was $11 million, $10 million and $14 million, respectively.

AFG issued 45,804 shares (fair value of $115.49 per share) in the first quarter of 2018 under its Equity Bonus Plan.

AFG has not granted any stock options since 2015. Options granted in prior years have an exercise price equal to the market price of AFG Common Stock at the date of grant. Options generally become exercisable at the rate of 20% per year commencing one year after grant and expire ten years after the date of grant.

Data for stock options issued under AFG’s stock incentive plans is presented below:



	Shares		Average Exercise Price		Average Remaining Contractual Term	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2019	2,667,442		$	48.20
Exercised	(747,167	)	$	41.13
Forfeited/Cancelled	(2,485	)	$	61.88
Outstanding at December 31, 2019	1,917,790		$	50.93	3.7 years	$	113

Options exercisable at December 31, 2019	1,779,941		$	50.13	3.6 years	$	107

The total intrinsic value of options exercised during 2019, 2018 and 2017 was $46 million, $57 million and $65 million, respectively. During 2019, 2018 and 2017, AFG received $31 million, $29 million and $34 million, respectively, in cash from the exercise of stock options. The total tax benefit related to the exercises was $8 million, $9 million and $18 million during those years, respectively.

Total compensation expense related to stock incentive plans of AFG and its subsidiaries was $23 million for 2019 and 2018 and $30 million for 2017. AFG’s provision for income tax includes tax benefits of $13 million in 2019 and 2018 and $27 million in 2017 related to AFG’s stock incentive plans. At December 31, 2019, there was $36 million of unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted average of 2.4 years. At December 31, 2019, there was less than $1 million of unrecognized compensation expense related to unvested stock options, which will be recognized in the first quarter of 2020.

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 (Loss)
	AOCI Beginning Balance			Pretax			Tax			Net of tax			Attributable to noncontrolling interests		Attributable to shareholders			Other (c)			AOCI Ending Balance
Year ended December 31, 2019
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period				$	997		$	(209	)	$	788		$	—	$	788
Reclassification adjustment for realized (gains) losses included in net earnings (a)				(11		)	2			(9		)	—		(9		)
Total net unrealized gains on securities (b)	$	83		986			(207		)	779			—		779			$	—		$	862
Net unrealized gains (losses) on cash flow hedges	(11		)	36			(8		)	28			—		28			—			17
Foreign currency translation adjustments	(16		)	7			—			7			—		7			—			(9		)
Pension and other postretirement plans adjustments	(8		)	1			—			1			—		1			—			(7		)
Total	$	48		$	1,030		$	(215	)	$	815		$	—	$	815		$	—		$	863

Year ended December 31, 2018
Net unrealized gains (losses) on securities:
Unrealized holding losses on securities arising during the period				$	(689	)	$	145		$	(544	)	$	—	$	(544	)
Reclassification adjustment for realized (gains) losses included in net earnings (a)				10			(2		)	8			—		8
Total net unrealized gains (losses) on securities (b)	$	840		(679		)	143			(536		)	—		(536		)	$	(221	)	$	83
Net unrealized gains (losses) on cash flow hedges	(13		)	2			—			2			—		2			—			(11		)
Foreign currency translation adjustments	(6		)	(9		)	(1		)	(10		)	—		(10		)	—			(16		)
Pension and other postretirement plans adjustments	(8		)	—			—			—			—		—			—			(8		)
Total	$	813		$	(686	)	$	142		$	(544	)	$	—	$	(544	)	$	(221	)	$	48

Year ended December 31, 2017
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period				$	456		$	(159	)	$	297		$	—	$	297
Reclassification adjustment for realized (gains) losses included in net earnings (a)				(15		)	5			(10		)	—		(10		)
Total net unrealized gains on securities (b)	$	404		441			(154		)	287			—		287			$	149		$	840
Net unrealized losses on cash flow hedges	(7		)	(6		)	2			(4		)	—		(4		)	(2		)	(13		)
Foreign currency translation adjustments	(15		)	9			3			12			—		12			(3		)	(6		)
Pension and other postretirement plans adjustments	(7		)	1			—			1			—		1			(2		)	(8		)
Total	$	375		$	445		$	(149	)	$	296		$	—	$	296		$	142		$	813

(a) The reclassification adjustment out of net unrealized gains (losses) 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


(b)	Includes net unrealized gains of $55 million at December 31, 2019 compared to $58 million and $68 million at December 31, 2018 and 2017, related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.

(c)

On January 1, 2018, AFG adopted new guidance that requires all equity securities other than those accounted for under the equity method to be reported at fair value with holding gains and losses recognized in net earnings. At the date of adoption, the $221 million net unrealized gain on equity securities classified as available for sale (with unrealized holding gains and losses reported in AOCI) under the prior guidance was reclassified from AOCI to retained earnings as the cumulative effect of an accounting change. Other also includes the December 2017 reclassification of $145 million stranded in AOCI from accounting for the Tax Cuts and Jobs Act of 2017 to retained earnings (see Note A — “Accounting Policies — Income Taxes”) and the impact on AOCI of the December 2017 sale of redeemable noncontrolling interests in Neon.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

The following is a reconciliation of income taxes at the statutory rate (21% in 2019 and 2018 and 35% in 2017) to the provision for income taxes as shown in AFG’s Statement of Earnings (dollars in millions):



	2019					2018					2017
	Amount			% of EBT		Amount			% of EBT		Amount			% of EBT
Earnings before income taxes (“EBT”)	$	1,108				$	639				$	724

Income taxes at statutory rate	$	233		21	%	$	134		21	%	$	253		35	%
Effect of:
Tax exempt interest	(14		)	(1	%)	(13		)	(2	%)	(23		)	(3	%)
Stock-based compensation	(8		)	(1	%)	(8		)	(1	%)	(16		)	(2	%)
Dividend received deduction	(4		)	—	%	(4		)	(1	%)	(8		)	(1	%)
Adjustment to prior year taxes	(3		)	—	%	(8		)	(1	%)	(4		)	(1	%)
Employee stock ownership plan dividend paid deduction	(2		)	—	%	(3		)	(1	%)	(5		)	(1	%)
Change in valuation allowance (excluding change in tax rate)	17			2	%	11			2	%	(7		)	(1	%)
Nondeductible expenses	8			1	%	7			1	%	6			1	%
Foreign operations	4			—	%	(2		)	—	%	21			3	%
Neon restructuring	—			—	%	—			—	%	(56		)	(8	%)
Change in U.S corporate tax rate	—			—	%	—			—	%	83			11	%
Other	8			—	%	8			1	%	3			1	%
Provision for income taxes as shown in the statement of earnings	$	239		22	%	$	122		19	%	$	247		34	%

In January 2008, AFG paid $75 million in cash to acquire approximately 67% of Neon Underwriting Limited (“Neon”, formerly known as Marketform Group Limited), a United Kingdom-based Lloyd’s insurer. During 2012, AFG acquired the then-remaining shares of Neon that it did not already own for $17 million. AFG’s investment in Neon includes the cost of acquiring the company as well as additional capital provided to Neon since the date of acquisition.

In 2011, cumulative losses at Neon across multiple lines of business resulted in uncertainty concerning the realization of the deferred tax benefits associated with the losses. Consequently, AFG began maintaining a full valuation allowance against the deferred tax assets related to the Lloyd’s insurance business in 2011.

Approximately $14 million of the $21 million impact of “foreign operations” for 2017 in the table above relates to a reduction in the “foreign underwriting losses” deferred tax asset as a result of the sale of the noncontrolling interest in Neon. Since AFG maintains a full valuation allowance against the deferred tax assets related to Neon, this reduction in deferred tax assets was offset by a corresponding reduction in the valuation allowance and had no overall impact on AFG’s income tax expense or results of operations.

The changes in valuation allowance in the table above are primarily increases in the valuation allowance on tax benefits related to losses in the Neon Lloyd’s insurance business. The $61 million decrease in the valuation allowance in 2017 related to the change in the U.S. corporate tax rate is included in “Change in U.S. corporate tax rate” in table above.

The sale of the noncontrolling interest in Neon in the fourth quarter of 2017 resulted in the recognition of a tax benefit of $56 million, including the recognition of a deferred loss from the 2016 restructuring of Neon. Approximately $20 million of the $56 million tax benefit recorded in 2017 reduced current taxes payable for 2017. The majority of the remaining 2017

tax benefit is expected to be received in 2020 as a result of the filing of a refund claim in 2018 to carry back tax basis capital losses to offset prior year tax basis capital gains.

The Tax Cuts and Jobs Act of 2017 (“TCJA”), which was enacted on December 22, 2017, lowered the U.S corporate tax rate to 21% and made other widespread changes to the U.S. tax code effective in 2018. Because the TCJA was enacted in December 2017, AFG recorded the $83 million decrease in its net deferred tax asset resulting from the changes in the tax code (primarily the lower corporate tax rate applicable to 2018 and future years) in the fourth quarter of 2017.

In addition to the lower U.S. corporate tax rate, the TCJA implemented a new global minimum tax on income earned by foreign subsidiaries of U.S.-based entities known as the Global Intangible Low-taxed Income (“GILTI”) provision. Since almost all of AFG’s earnings are taxable based on U.S. tax rates, the GILTI is not expected to be material to AFG’s results of operations and will be recorded in the period that any tax arises.

At the time it was enacted, the TCJA was subject to further clarification and interpretation by the U.S. Treasury Department and the Internal Revenue Service. AFG’s deferred tax assets and liabilities were recorded at December 31, 2017 using reasonable estimates based on available information and were considered provisional in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 118 (“SAB 118”). In accordance with SAB 118, changes in deferred taxes resulting from clarification and interpretation of the TCJA were recorded in 2018 in the period in which the guidance was published and did not have a material impact on AFG’s effective tax rate. As a result, AFG’s implementation of the TCJA was complete as of December 31, 2018.

Excluding the tax benefit related to the Neon restructuring and the impact of the change in the U.S. corporate tax rate, AFG’s effective tax rate for the year ended December 31, 2017 was 31%.

AFG’s 2013 — 2019 tax years remain subject to examination by the IRS.

Total earnings before income taxes include losses subject to tax in foreign jurisdictions of $109 million in 2019, $69 million in 2018 and $58 million in 2017, primarily related to the Neon Lloyd’s operations.

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



	2019			2018			2017
Current taxes:
Federal	$	250		$	196		$	153
State	10			8			6
Foreign	2			—			—
Deferred taxes:
Federal	(23		)	(82		)	5
Impact of change in U.S. corporate tax rate	—			—			83
Total Federal deferred taxes	(23		)	(82		)	88
Provision for income taxes	$	239		$	122		$	247

For income tax purposes, AFG and its subsidiaries had the following carryforwards available at December 31, 2019 (in millions):


(*)	£231 million

Deferred income tax assets and liabilities reflect temporary differences between the carrying amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes. The significant components of deferred tax assets and liabilities included in AFG’s Balance Sheet at December 31 were as follows (in millions):



	2019									2018
	Excluding Unrealized Gains			Impact of Unrealized Gains			Total			Excluding Unrealized Gains			Impact of Unrealized Gains			Total
Deferred tax assets:
Federal net operating loss carryforwards	$	19		$	—		$	19		$	23		$	—		$	23
Foreign underwriting losses	118			—			118			93			—			93
Insurance claims and reserves	829			46			875			740			3			743
Employee benefits	93			—			93			88			—			88
Other, net	45			(2		)	43			44			—			44
Total deferred tax assets before valuation allowance	1,104			44			1,148			988			3			991
Valuation allowance against deferred tax assets	(140		)	—			(140		)	(119		)	—			(119		)
Total deferred tax assets	964			44			1,008			869			3			872
Deferred tax liabilities:
Investment securities	(140		)	(416		)	(556		)	(36		)	(34		)	(70		)
Deferred policy acquisition costs	(293		)	143			(150		)	(300		)	9			(291		)
Insurance claims and reserves transition liability	(93		)	—			(93		)	(110		)	—			(110		)
Real estate, property and equipment	(35		)	—			(35		)	(36		)	—			(36		)
Total deferred tax liabilities	(561		)	(273		)	(834		)	(482		)	(25		)	(507		)
Net deferred tax asset (liability)	$	403		$	(229	)	$	174		$	387		$	(22	)	$	365

AFG’s net deferred tax asset at December 31, 2019 and 2018 is included in other assets in AFG’s Balance Sheet. The decrease in AFG’s net deferred tax asset at December 31, 2019 compared to December 31, 2018 reflects significantly higher pretax unrealized gains on securities.

The likelihood of realizing deferred tax assets is reviewed periodically; any adjustments required to the valuation allowance are made in the period during which developments requiring an adjustment become known.

“Foreign underwriting losses” in the table above is primarily the net operating loss carryforward and other deferred tax assets related to the Neon Lloyd’s insurance business. Due to uncertainty concerning the realization of the deferred tax benefits associated with these losses, AFG maintains a full valuation allowance of $118 million against these deferred tax assets at December 31, 2019. In addition to the valuation allowance related to the Neon Lloyd’s insurance business, the gross deferred tax asset has also been reduced by a $19 million valuation allowance related to AFG’s net operating loss carryforwards (“NOL”) subject to the separate return limitation year (“SRLY”) tax rules. A SRLY NOL can be used only by the entity that created it and only in years that both it and the consolidated group have taxable income. Approximately $19 million of AFG’s SRLY NOLs expired unutilized at December 31, 2019. Since AFG maintains a full valuation allowance against its SRLY NOLs, the expiration of these loss carryforwards was offset by corresponding reduction in the valuation allowance and had no overall impact on AFG’s income tax expense or results of operations.

AFG increased its liability for uncertain tax positions by $1 million in 2015 due to uncertainty in state taxation of its surplus lines insurance subsidiaries. In 2017, this uncertainty was resolved, resulting in total tax payments of less than $1 million.

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



	2019		2018		2017
Balance at January 1	$	—	$	—	$	1
Additions for tax positions of prior years	—		—		—
Reductions for tax positions of prior years	—		—		—
Additions for tax positions of current year	—		—		—
Settlements	—		—		(1		)
Balance at December 31	$	—	$	—	$	—

At December 31, 2019, there are no unrecognized tax benefits and related interest and penalties that, if recognized, would impact the effective tax rate. The total unrecognized tax benefits and related interest and penalties that, if recognized, would impact the effective tax rate was less than $1 million at December 31, 2018. There is no interest expense related to unrecognized tax benefits included in AFG’s provision for income taxes in 2019; AFG’s provision for income taxes in 2018 and 2017 included interest expense related to unrecognized tax benefits of less than $1 million in each year (net of federal benefit or expense). There is no liability for interest related to unrecognized tax benefits at December 31, 2019 or December 31, 2018. AFG’s provision for income taxes in 2019, 2018 and 2017 included penalties of less than $1 million in each year. There is no liability for penalties related to unrecognized tax benefits at December 31, 2019; AFG’s liability for penalties related to unrecognized tax benefits was less than $1 million at December 31, 2018.

Cash payments for income taxes, net of refunds, were $278 million, $156 million and $194 million for 2019, 2018 and 2017, respectively.

Contingencies	12 Months Ended
Contingencies	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Establishing property and casualty insurance reserves for claims related to environmental exposures, asbestos and other mass tort claims is subject to uncertainties that are significantly greater than those presented by other types of claims. For this group of claims, traditional actuarial techniques that rely on historical loss development trends cannot be used and a range of reasonably possible losses cannot be estimated. In addition, accruals (included in other liabilities) have been recorded for various environmental and occupational injury and disease claims and other contingencies arising out of the railroad operations disposed of by American Premier’s predecessor, Penn Central Transportation Company (“PCTC”) and its subsidiaries, prior to its bankruptcy reorganization in 1978 and certain manufacturing operations disposed of by American Premier and Great American Financial Resources, Inc. (“GAFRI”). AFG completed an in-depth internal review of its asbestos and environmental (“A&E”) exposures in the third quarter of 2019. The review resulted in special A&E charges of $18 million for the property and casualty group and $11 million for the former railroad and manufacturing operations. AFG also completed an in-depth internal review of its A&E exposures in the third quarter of 2018, which resulted in special A&E charges of $18 million for the property and casualty group and $9 million for the former railroad and manufacturing operations. AFG completed a comprehensive external study of its A&E exposures in the third quarter of 2017 with the aid of specialty actuarial, engineering and consulting firms and outside counsel. The study resulted in special A&E charges of $89 million for the property and casualty group and $24 million for the former railroad and manufacturing operations. The property and casualty group’s liability for A&E reserves was $529 million at December 31, 2019; related recoverables from reinsurers (net of allowances for doubtful accounts) at that date were $146 million. At December 31, 2019, American Premier and its subsidiaries had liabilities for environmental and personal injury claims and other contingencies aggregating $84 million. The environmental claims consist of a number of proceedings and claims seeking to impose responsibility for hazardous waste remediation costs related to certain sites formerly owned or operated by the railroad and manufacturing operations. Remediation costs are difficult to estimate for a number of reasons, including the number and financial resources of other potentially responsible parties, the range of costs for remediation alternatives, changing technology and the time period over which these matters develop. The personal injury claims and other contingencies include pending and expected claims, primarily by former employees of PCTC, for injury or disease allegedly caused by exposure to excessive noise, asbestos or other substances in the workplace and other labor disputes. At December 31, 2019, GAFRI had a liability of $8 million for environmental costs and certain other matters associated with the sales of its former manufacturing operations. In December 2015, AFG completed the sale of substantially all of its run-off long-term care insurance business to HC2 Holdings, Inc. (“HC2”). In connection with obtaining regulatory approval for the transaction, AFG agreed to provide up to an aggregate of $35 million of capital support for the insurance companies, on an as-needed basis to maintain specified surplus levels, subject to immediate reimbursement by HC2 through a five-year capital maintenance agreement expiring in 2020. While management believes AFG has recorded adequate reserves for the items discussed above, the outcome is uncertain and could result in liabilities that may vary from amounts AFG has currently recorded. Such amounts could have a material effect on AFG’s future results of operations and financial condition. In addition, AFG and its subsidiaries are involved in litigation from time to time, generally arising in the ordinary course of business. This litigation may include, but is not limited to, general commercial disputes, lawsuits brought by policyholders, employment matters, reinsurance collection matters and actions challenging certain business practices of insurance subsidiaries. None of these matters are expected to have a material adverse impact on AFG’s results of operations or financial condition.

Quarterly Operating Results (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Operating Results (Unaudited)

The operations of certain AFG business segments are seasonal in nature. While insurance premiums are recognized on a relatively level basis, claim losses related to adverse weather (snow, hail, hurricanes, severe storms, tornadoes, etc.) may be seasonal. The profitability of AFG’s crop insurance business is primarily recognized during the second half of the year as crop prices and yields are determined. Quarterly results necessarily rely heavily on estimates. These estimates and certain other factors, such as the discretionary sales of assets, cause the quarterly results not to be necessarily indicative of results for longer periods of time.

The following are quarterly results of consolidated operations for the two years ended December 31, 2019 (in millions, except per share amounts). Quarterly earnings per share do not add to year-to-date amounts due to changes in shares outstanding.



	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter			Total Year
2019
Revenues	$	2,024	$	1,960	$	2,123	$	2,130		$	8,237
Net earnings, including noncontrolling interests	326		209		143		191			869
Net earnings attributable to shareholders	329		210		147		211			897
Earnings attributable to shareholders per Common Share:
Basic	$	3.68	$	2.34	$	1.64	$	2.33		$	9.98
Diluted	3.63		2.31		1.62		2.30			9.85
Average number of Common Shares:
Basic	89.4		89.7		90.0		90.2			89.9
Diluted	90.7		91.0		91.1		91.3			91.0
2018
Revenues	$	1,619	$	1,833	$	2,008	$	1,690		$	7,150
Net earnings (losses), including noncontrolling interests	141		208		203		(35		)	517
Net earnings (losses) attributable to shareholders	145		210		204		(29		)	530
Earnings (losses) attributable to shareholders per Common Share:
Basic	$	1.64	$	2.36	$	2.30	$	(0.33	)	$	5.95
Diluted	1.60		2.31		2.26		(0.33		)	5.85
Average number of Common Shares:
Basic	88.6		89.0		89.1		89.3			89.0
Diluted	90.4		90.7		90.7		89.3			90.6

Pretax realized gains (losses) on securities, which resulted primarily from changes in the fair value of equity securities, were as follows (in millions):



	1st Quarter			2nd Quarter		3rd Quarter			4th Quarter			Total Year
2019 — change in fair value of equity securities	$	182		$	44	$	(15	)	$	67		$	278
2019 — other realized gains (losses)	2			12		(3		)	(2		)	9
2018 — change in fair value of equity securities	(95		)	23		33			(223		)	(262		)
2018 — other realized gains (losses)	2			8		1			(15		)	(4		)

FIAs provide policyholders with a crediting rate tied, in part, to the performance of an existing stock market or other financial index. AFG attempts to mitigate the risk in the index-based component of these products through the purchase and sale of call and put options on the appropriate index. AFG’s strategy is designed so that the change in the fair value of the call and put options 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 and put options are considered derivatives that must be

marked-to-market through earnings each period. Fluctuations in interest rates and the stock market, among other factors, can cause volatility in the periodic measurement of these derivatives and other FIA liabilities over or under the cost of the equity index options purchased to mitigate the risk in the index-based component of those FIAs.

The impact of unlocking, changes in the fair value of derivatives related to FIAs, and other impacts of changes in the stock market and interest rates on the accounting for FIAs over or under the cost of the equity index options purchased to mitigate the risk in the index-based component of those FIAs were as follows, net of the related acceleration/deceleration of the amortization of deferred policy acquisition costs and deferred sales inducements (in millions):



	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			Total Year
2019	$	(11	)	$	(33	)	$	(27	)	$	24		$	(47	)
2018	15			(14		)	17			(66		)	(48		)

Favorable prior year development of AFG’s liability for property and casualty losses and loss adjustment expenses (”LAE”) was as follows (in millions):



	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Total Year
2019	$	45	$	41	$	12	$	45	$	143
2018	56		44		31		61		192

Prior year development in both the third quarters of 2019 and 2018 includes pretax special charges of $18 million to strengthen property and casualty insurance A&E reserves.

In the fourth quarter of 2019, AFG recorded a pretax charge of $76 million for reserve strengthening and expenses related to exit costs incurred with AFG’s plans to exit the Lloyd’s of London insurance market in 2020.

AFG’s property and casualty operations recorded catastrophe losses, including reinstatement premiums, as follows (in millions):



	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			Total Year
2019	$	(12	)	$	(12	)	$	(22	)	$	(15	)	$	(61	)
2018	(13		)	(16		)	(38		)	(38		)	(105		)

Results for the third quarter of 2019 and 2018 include pretax special charges of $11 million and $9 million, respectively, to strengthen reserves for A&E exposures related to AFG’s former railroad and manufacturing operations.

AFG recorded a pretax loss on the retirement of debt of $5 million in the fourth quarter of 2019.

Holding company expenses were $20 million higher in the fourth quarter of 2019 compared to the fourth quarter of 2018 due primarily to higher expenses related to employee benefit plans that are tied to stock market performance.

Insurance

12 Months Ended

Dec. 31, 2019

Insurance [Abstract]

Insurance

Cash and securities owned by U.S.-based insurance subsidiaries, having a carrying value of approximately $1.04 billion at December 31, 2019, were on deposit as required by regulatory authorities. In addition, $217 million was on deposit in support of AFG’s underwriting activities at Lloyd’s. At December 31, 2019, AFG and its subsidiaries had $414 million in undrawn letters of credit (none of which was collateralized) and similar agreements supporting the underwriting capacity of its U.K.-based Lloyd’s insurer, Neon.

Property and Casualty Insurance Reserves Estimating the liability for unpaid losses and loss adjustment expenses (“LAE”) is inherently judgmental and is influenced by factors that are subject to significant variation. Determining the liability is a complex process incorporating input from many areas of the Company including actuarial, underwriting, pricing, claims and operations management.

The process used to determine the total reserve for liabilities involves estimating the ultimate incurred losses and LAE, adjusted for amounts already paid on the claims. The IBNR reserve is derived by first estimating the ultimate unpaid reserve liability and subtracting case reserves for loss and LAE.

In determining management’s best estimate of the ultimate liability, management (with the assistance of Company actuaries) considers items such as the effect of inflation on medical, hospitalization, material, repair and replacement costs, the nature and maturity of lines of insurance, general economic trends and the legal environment. In addition, historical trends adjusted for changes in underwriting standards, policy provisions, product mix and other factors are analyzed using actuarial reserve development techniques. Weighing all of the factors, the management team determines a single or “point” estimate that it records as its best estimate of the ultimate liability. Ranges of loss reserves are not developed by Company actuaries. This reserve analysis and review is completed each quarter and for almost every business within AFG’s property and casualty insurance sub-segments.

Each review includes in-depth analysis of several hundred subdivisions of the business, employing multiple actuarial techniques. For each subdivision, actuaries use informed, professional judgment to adjust these techniques as necessary to respond to specific conditions in the data or within the business.

Some of the standard actuarial methods employed for the quarterly reserve analysis may include (but may not be limited to):


•	Case Incurred Development Method


•	Paid Development Method


•	Bornhuetter-Ferguson Method


•	Incremental Paid LAE to Paid Loss Methods

Management believes that each method has particular strengths and weaknesses and that no single estimation method is most accurate in all situations. When applied to a particular group of claims, the relative strengths and weaknesses of each method can change over time based on the facts and circumstances. Ultimately, the estimation methods chosen are those which management believes produce the most reliable indication for the particular liabilities under review.

The period of time from the occurrence of a loss through the settlement of the liability is referred to as the “tail”. Generally, the same actuarial methods are considered for both short-tail and long-tail lines of business because most of them work properly for both. The methods are designed to incorporate the effects of the differing length of time to settle particular claims. For short-tail lines, management tends to give more weight to the Case Incurred and Paid Development methods, although the various methods tend to produce similar results. For long-tail lines, more judgment is involved, and more weight may be given to the Bornhuetter-Ferguson method. Liability claims for long-tail lines are more susceptible to litigation and can be significantly affected by changing contract interpretation and the legal environment. Therefore, the estimation of loss reserves for these classes is more complex and subject to a higher degree of variability.

The level of detail in which data is analyzed varies among the different lines of business. Data is generally analyzed by major product or by coverage within product, using countrywide data; however, in some situations, data may be reviewed by state or region. Appropriate segmentation of the data is determined based on data credibility, homogeneity of development patterns, mix of business, and other actuarial considerations.

Supplementary statistical information is also reviewed to determine which methods are most appropriate to use or if adjustments are needed to particular methods. Such information includes:


•	Open and closed claim counts


•	Average case reserves and average incurred on open claims


•	Closure rates and statistics related to closed and open claim percentages


•	Average closed claim severity


•	Ultimate claim severity


•	Reported loss ratios


•	Projected ultimate loss ratios


•	Loss payment patterns

Within each business, results of individual methods are reviewed, supplementary statistical information is analyzed, and data from underwriting, operating and claim management are considered in deriving management’s best estimate of the ultimate liability. This estimate may be the result of one method, a weighted average of several methods, or a judgmental selection as the management team determines is appropriate.

The liability for losses and LAE for a very limited number of claims with long-term scheduled payments under certain workers’ compensation policies has been discounted at 4.5% at both December 31, 2019 and 2018, which represents an approximation of long-term investment yields. Because of the limited amount of claims involved, the net impact of

discounting did not materially impact AFG’s total liability for unpaid losses and loss adjustment expenses (net reductions from discounting of $12 million and $13 million at December 31, 2019 and 2018, respectively).

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



	2019			2018			2017
Balance at beginning of period	$	9,741		$	9,678		$	8,563
Less reinsurance recoverables, net of allowance	2,942			2,957			2,302
Net liability at beginning of period	6,799			6,721			6,261
Provision for losses and LAE occurring in the current year	3,414			3,195			3,019
Net increase (decrease) in the provision for claims of prior years:
Special A&E charges	18			18			89
Neon exited lines charge	7			—			(18		)
Other	(168		)	(210		)	(135		)
Total losses and LAE incurred	3,271			3,003			2,955
Payments for losses and LAE of:
Current year	(1,076		)	(963		)	(942		)
Prior years	(1,790		)	(1,639		)	(1,586		)
Total payments	(2,866		)	(2,602		)	(2,528		)
Reserves of businesses disposed (*)	—			(319		)	—
Foreign currency translation and other	4			(4		)	33
Net liability at end of period	7,208			6,799			6,721
Add back reinsurance recoverables, net of allowance	3,024			2,942			2,957
Gross unpaid losses and LAE included in the balance sheet	$	10,232		$	9,741		$	9,678


(*)	Reflects the reinsurance to close transactions at Neon (discussed below).

The net decrease in the provision for claims of prior years in 2019 reflects (i) lower than expected claim frequency and severity at National Interstate and lower than expected losses in the crop business (all within the Property and transportation sub-segment), (ii) lower than anticipated claim frequency and severity in the workers’ compensation businesses (within the Specialty casualty sub-segment), and (iii) lower than expected claim frequency and severity in the surety and financial institutions businesses and lower than anticipated claim severity in the foreign credit business (all within the Specialty financial sub-segment). This favorable development was partially offset by (i) the $18 million special charge to increase asbestos and environmental reserves and adverse reserve development of $7 million on Neon’s exited lines of business, (ii) higher than expected claim severity in the excess and surplus lines businesses and higher than expected claim frequency in product liability contractor claims (all within the Specialty casualty sub-segment), and (iii) net adverse reserve development related to business outside the Specialty group that AFG no longer writes.

The net decrease in the provision for claims of prior years in 2018 reflects (i) lower than expected losses in the crop business and lower than expected claim severity at National Interstate (within the Property and transportation sub-segment), (ii) lower than anticipated claim severity in the workers’ compensation businesses, lower than expected emergence in assumed 2017 property catastrophe losses at Neon and lower than expected claim severity in the executive liability business (within the Specialty casualty sub-segment) and (iii) lower than expected claim frequency and severity in the surety business, lower than expected claim severity in the fidelity business and lower than expected claim frequency in run-off businesses (within the Specialty financial sub-segment). This favorable development was partially offset by (i) the $18 million special charge to increase asbestos and environmental reserves and (ii) higher than expected claim frequency and severity in the Singapore branch and aviation operations (within the Property and transportation sub-segment).

The net decrease in the provision for claims of prior years in 2017 reflects (i) lower than expected losses in the crop and equine businesses and lower than expected claim severity in the property and inland marine and transportation businesses (all within the Property and transportation sub-segment), (ii) favorable reserve development of $18 million on Neon’s exited lines, as well as additional favorable development on ongoing lines of business within Neon, recorded in connection with the reinsurance to close agreement entered into in December 2017 for the 2015 and prior years of account, lower than anticipated claim severity in the workers’ compensation businesses and lower than expected losses in the executive liability business (all within the Specialty casualty sub-segment) and (iii) lower than anticipated claim severity in the fidelity business and lower than expected claim frequency and severity in the surety business (both within the Specialty financial sub-segment). This favorable development was partially offset by (i) the $89 million special charge

to increase asbestos and environmental reserves, (ii) higher than expected claim frequency and severity in the ocean marine business (within the Property and transportation sub-segment), (iii) higher than anticipated claim severity in the targeted markets and general liability businesses and higher than anticipated severity in New York contractor claims (all within the Specialty casualty sub-segment) and (iv) a charge to adjust to the deferred gain on the retroactive reinsurance transaction entered into in connection with the sale of businesses in 1998 (included in Other specialty sub-segment).

In December 2017, the Neon Lloyd’s syndicate entered into a reinsurance to close transaction for the 2015 and prior years of account with StarStone Underwriting Limited, a subsidiary of Enstar Group Limited, which was effective as of December 31, 2017 and settled in early 2018. In the Lloyd’s market, a reinsurance to close transaction transfers the responsibility for discharging all of the liabilities that attach to the transferred year of account plus the right to any income due to the closing year of account in return for a premium. This transaction provided Neon with finality on its legacy business. As a result of the reinsurance to close agreement, Neon was able to better estimate its ultimate liability for the 2015 and prior years of account as of December 31, 2017, resulting in favorable development of $42 million, of which $24 million related to its ongoing lines of business (included in Specialty casualty) and $18 million related to its exited lines of business.

A reconciliation of incurred and paid claims development information to the aggregate carrying amount of the liability for unpaid losses and LAE, with separate disclosure of reinsurance recoverables on unpaid claims is shown below (in millions):



	2019
Unpaid losses and allocated LAE, net of reinsurance:
Specialty
Property and transportation	$	1,171
Specialty casualty	4,056
Specialty financial	221
Other specialty	313
Total Specialty (excluding foreign reserves)	5,761

Other reserves
Reserves for foreign operations:
Neon Lloyd’s business	357
Other subsidiaries	289
A&E reserves	383
Unallocated LAE	361
Other	57
Total other reserves	1,447
Total reserves, net of reinsurance	7,208

Add back reinsurance recoverables, net of allowance	3,024
Gross unpaid losses and LAE included in the balance sheet	$	10,232

The following claims development tables and associated disclosures related to short-duration insurance contracts are prepared by sub-segment within the property and casualty insurance business for the most recent 10 accident years. AFG determines its claim counts at the claimant or policy feature level depending on the particular facts and circumstances of the underlying claim. While the methodology is generally consistent within each sub-segment, there are minor differences between and within the sub-segments. The methods used to summarize claim counts have not changed significantly over the time periods reported in the tables below.



Property and transportation
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	679	$	639	$	645	$	652	$	655	$	655	$	660	$	657	$	655	$	655	$	3	138,105
2011			811		799		813		827		837		850		846		844		843		5		138,309
2012					864		857		871		883		894		890		886		881		8		143,122
2013							882		870		872		878		878		877		873		10		138,864
2014									844		828		817		820		815		808		15		132,971
2015											818		784		779		777		777		23		134,618
2016													746		716		714		706		46		120,884
2017															889		847		843		80		140,067
2018																	932		902		119		128,428
2019																			1,111		288		138,508
																	Total		$	8,399



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	316	$	486	$	535	$	596	$	626	$	637	$	642	$	647	$	649	$	650	99.2	%
2011			365		667		727		771		803		821		829		833		834		98.9	%
2012					572		708		772		816		842		856		882		869		98.6	%
2013							438		702		760		804		831		847		858		98.3	%
2014									329		632		693		744		770		783		96.9	%
2015											359		582		667		707		736		94.7	%
2016													294		521		577		618		87.5	%
2017															379		640		696		82.6	%
2018																	396		676		74.9	%
2019																			527		47.4	%
																	Total		$	7,247
							Unpaid losses and LAE — years 2010 through 2019												1,152
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																19
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	1,171



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	47.1	%	29.8	%	7.7	%	6.0	%	3.6	%	1.8	%	1.5	%	(0.1	%)	0.2	%	0.2	%
Cumulative	47.1	%	76.9	%	84.6	%	90.6	%	94.2	%	96.0	%	97.5	%	97.4	%	97.6	%	97.8	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).



Specialty casualty
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	871	$	887	$	888	$	867	$	880	$	870	$	868	$	866	$	855	$	846	$	28	56,716
2011			852		849		839		848		834		828		826		817		810		37		54,755
2012					901		892		885		885		883		877		849		842		53		54,682
2013							968		949		945		940		945		926		916		77		54,929
2014									1,035		1,008		1,008		1,006		982		967		98		56,445
2015											1,081		1,043		1,041		1,042		1,024		126		57,427
2016													1,131		1,122		1,116		1,101		236		56,000
2017															1,211		1,221		1,204		372		56,073
2018																	1,277		1,307		548		57,081
2019																			1,308		773		51,198
																	Total		$	10,325



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	191	$	412	$	560	$	645	$	700	$	736	$	757	$	771	$	783	$	798	94.3	%
2011			174		383		522		612		662		694		714		731		745		92.0	%
2012					173		385		516		621		684		723		745		761		90.4	%
2013							182		396		554		666		729		766		797		87.0	%
2014									190		412		574		680		755		801		82.8	%
2015											178		411		577		702		792		77.3	%
2016													186		418		584		713		64.8	%
2017															200		422		612		50.8	%
2018																	210		475		36.3	%
2019																			212		16.2	%
																	Total		$	6,706
							Unpaid losses and LAE — years 2010 through 2019												3,619
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																437
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	4,056



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	18.7	%	22.9	%	16.4	%	11.5	%	7.3	%	4.3	%	2.7	%	1.9	%	1.6	%	1.8	%
Cumulative	18.7	%	41.6	%	58.0	%	69.5	%	76.8	%	81.1	%	83.8	%	85.7	%	87.3	%	89.1	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).



Specialty financial
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	138	$	145	$	132	$	132	$	135	$	133	$	130	$	127	$	126	$	126	$	1	21,925
2011			138		157		155		153		147		144		143		139		137		—		16,369
2012					163		163		151		139		137		135		132		127		1		21,076
2013							140		145		137		131		127		126		122		4		28,460
2014									146		157		156		153		147		142		5		29,436
2015											156		160		158		153		145		10		37,562
2016													179		184		187		182		18		45,054
2017															212		215		212		27		48,421
2018																	212		217		30		46,198
2019																			194		77		35,369
																	Total		$	1,604



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019			% (a)
2010	$	61	$	93	$	104	$	122	$	132	$	130	$	128	$	126	$	126	$	126		100.0	%
2011			58		111		115		123		130		131		131		132		132			96.4	%
2012					71		104		109		117		121		126		128		126			99.2	%
2013							70		100		107		113		117		117		118			96.7	%
2014									62		109		125		128		137		139			97.9	%
2015											72		110		129		133		132			91.0	%
2016													88		141		158		161			88.5	%
2017															120		169		186			87.7	%
2018																	112		163			75.1	%
2019																			99			51.0	%
																	Total		$	1,382
							Unpaid losses and LAE — years 2010 through 2019												222
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																(1		)
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	221



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	50.5	%	27.7	%	7.9	%	5.4	%	4.2	%	0.9	%	0.2	%	(0.8	%)	—	%	—	%
Cumulative	50.5	%	78.2	%	86.1	%	91.5	%	95.7	%	96.6	%	96.8	%	96.0	%	96.0	%	96.0	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).



Other specialty
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims (a)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	36	$	39	$	40	$	39	$	40	$	40	$	40	$	40	$	40	$	39	$	1	—
2011			39		43		42		43		43		44		44		43		42		1		—
2012					42		40		39		40		41		39		39		36		2		—
2013							46		47		46		47		50		53		58		3		—
2014									58		57		59		59		60		61		6		—
2015											59		60		63		66		76		3		—
2016													61		61		65		71		15		—
2017															63		65		70		23		—
2018																	86		90		53		—
2019																			108		87		—
																	Total		$	651



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (b)
2010	$	8	$	14	$	21	$	24	$	27	$	33	$	35	$	36	$	37	$	37	94.9	%
2011			12		20		25		28		34		36		37		38		39		92.9	%
2012					8		17		21		25		28		30		30		32		88.9	%
2013							7		16		22		34		37		44		51		87.9	%
2014									13		21		30		36		43		50		82.0	%
2015											10		26		31		50		62		81.6	%
2016													9		19		31		47		66.2	%
2017															10		19		30		42.9	%
2018																	12		23		25.6	%
2019																			9		8.3	%
																	Total		$	380
							Unpaid losses and LAE — years 2010 through 2019												271
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																42
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	313



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	16.6	%	16.5	%	13.2	%	14.9	%	10.5	%	9.8	%	4.9	%	3.5	%	2.5	%	—	%
Cumulative	16.6	%	33.1	%	46.3	%	61.2	%	71.7	%	81.5	%	86.4	%	89.9	%	92.4	%	92.4	%


(a)	The amounts shown in Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty property and casualty insurance sub-segments. Accordingly, the liability for incurred claims and allocated LAE represents additional reserves held on claims counted in the tables provided for the other sub-segments (above).


(b)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).



Total Specialty Group
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	1,724	$	1,710	$	1,705	$	1,690	$	1,710	$	1,698	$	1,698	$	1,690	$	1,676	$	1,666	$	33	216,746
2011			1,840		1,848		1,849		1,871		1,861		1,866		1,859		1,843		1,832		43		209,433
2012					1,970		1,952		1,946		1,947		1,955		1,941		1,906		1,886		64		218,880
2013							2,036		2,011		2,000		1,996		2,000		1,982		1,969		94		222,253
2014									2,083		2,050		2,040		2,038		2,004		1,978		124		218,852
2015											2,114		2,047		2,041		2,038		2,022		162		229,607
2016													2,117		2,083		2,082		2,060		315		221,938
2017															2,375		2,348		2,329		502		244,561
2018																	2,507		2,516		750		231,707
2019																			2,721		1,225		225,075
																	Total		$	20,979



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	576	$	1,005	$	1,220	$	1,387	$	1,485	$	1,536	$	1,562	$	1,580	$	1,595	$	1,611	96.7	%
2011			609		1,181		1,389		1,534		1,629		1,682		1,711		1,734		1,750		95.5	%
2012					824		1,214		1,418		1,579		1,675		1,735		1,785		1,788		94.8	%
2013							697		1,214		1,443		1,617		1,714		1,774		1,824		92.6	%
2014									594		1,174		1,422		1,588		1,705		1,773		89.6	%
2015											619		1,129		1,404		1,592		1,722		85.2	%
2016													577		1,099		1,350		1,539		74.7	%
2017															709		1,250		1,524		65.4	%
2018																	730		1,337		53.1	%
2019																			847		31.1	%
																	Total		$	15,715
							Unpaid losses and LAE — years 2010 through 2019												5,264
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																497
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	5,761



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	32.6	%	25.7	%	12.1	%	8.9	%	5.6	%	3.1	%	2.1	%	0.8	%	0.9	%	1.0	%
Cumulative	32.6	%	58.3	%	70.4	%	79.3	%	84.9	%	88.0	%	90.1	%	90.9	%	91.8	%	92.8	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).

Closed Block of Long-Term Care Insurance Reserves for AFG’s closed block of long-term care insurance were $46 million at December 31, 2019 and $45 million at December 31, 2018, net of reinsurance recoverables and excluding the impact of unrealized gains on securities. AFG’s remaining outstanding long-term care policies have level premiums and are guaranteed renewable. Premium rates can potentially be increased in reaction to adverse experience; however, any rate increases would require regulatory approval.

FHLB Funding Agreements Great American Life Insurance Company (“GALIC”), a wholly-owned annuity subsidiary, is a member of the Federal Home Loan Bank of Cincinnati (“FHLB”). The FHLB makes advances and provides other banking services to member institutions. Members are required to purchase stock in the FHLB in addition to maintaining collateral deposits that back any funds advanced. GALIC’s $52 million investment in FHLB capital stock at December 31, 2019 is included in other investments at cost. Membership in the FHLB provides the annuity operations with an additional source of liquidity. These advances further the FHLB’s mission of improving access to housing by increasing liquidity in the residential mortgage-backed securities market.

In 2019, GALIC refinanced the terms on advances totaling $610 million. In the fourth quarter of 2018, GALIC refinanced the terms on a $40 million advance and the FHLB advanced GALIC $225 million. At both December 31, 2019 and December 31, 2018, GALIC had $1.10 billion in outstanding advances from the FHLB (included in annuity benefits accumulated), bearing interest at rates ranging from 0.13% to 0.21% over LIBOR (average rate of 1.95% at December 31, 2019). While these advances must be repaid between 2020 and 2021 ($310 million in 2020 and $786 million in 2021), GALIC has the option to prepay all or a portion of the advances. GALIC has invested the proceeds from the advances in fixed maturity securities with similar expected lives as the advances for the purpose of earning a spread over the interest payments due to the FHLB. The advances on these agreements are collateralized by fixed maturity investments, which have a total fair value of $1.27 billion (included in available for sale fixed maturity securities) at December 31, 2019. Interest credited on the funding agreements, which is included in annuity benefits, was $27 million in 2019, $20 million in 2018 and $14 million in 2017.

Statutory Information AFG’s U.S.-based insurance subsidiaries are required to file financial statements with state insurance regulatory authorities prepared on an accounting basis prescribed or permitted by such authorities (statutory basis). Net earnings and capital and surplus on a statutory basis for the insurance subsidiaries were as follows (in millions):



	Net Earnings						Capital and Surplus
	2019		2018		2017		2019		2018
Property and casualty companies	$	584	$	546	$	484	$	3,342	$	2,867
Life (annuity) insurance companies	34		802		286		2,868		2,701

In the fourth quarter of 2018, GALIC, AFG’s primary annuity subsidiary, entered into a reinsurance treaty with Hannover Life Reassurance Company of America that transfers the risk of certain surrender activity in GALIC’s fixed-indexed annuity business. This treaty meets the statutory risk transfer rules and resulted in a $510 million increase in statutory surplus (through an after-tax reserve credit), which is reflected in the life insurance companies capital and surplus in the table above. Under GAAP, this transaction does not meet the GAAP insurance risk transfer criteria and did not have a material impact on AFG’s financial statements.

The National Association of Insurance Commissioners’ (“NAIC”) model law for risk-based capital (“RBC”) applies to both life and property and casualty insurance companies. RBC formulas determine the amount of capital that an insurance company needs so that it has an acceptable expectation of not becoming financially impaired. Companies below specific trigger points or ratios are subject to regulatory action. At December 31, 2019 and 2018, the capital ratios of all AFG insurance companies substantially exceeded the RBC requirements. AFG’s insurance companies did not use any prescribed or permitted statutory accounting practices that differed from the NAIC statutory accounting practices at December 31, 2019 or 2018.

Payments of dividends by AFG’s insurance companies are subject to various state laws that limit the amount of dividends that can be paid. Under applicable restrictions, the maximum amount of dividends available to AFG in 2020 from its insurance subsidiaries without seeking regulatory approval is $852 million. Additional amounts of dividends require regulatory approval.

Holding Company Dividends AFG declared and paid common stock dividends to shareholders totaling $446 million, $397 million and $421 million in 2019, 2018 and 2017, respectively. Currently, there are no regulatory restrictions on AFG’s retained earnings or net earnings that materially impact its ability to pay dividends. Based on shareholders’ equity at December 31, 2019, AFG could pay dividends in excess of $2.5 billion without violating its most restrictive debt covenant. However, the payment of future dividends will be at the discretion of AFG’s Board of Directors and will be dependent on many factors including AFG’s financial condition and results of operations, the capital requirements of its insurance subsidiaries, and rating agency commitments.

Reinsurance In the normal course of business, AFG’s insurance subsidiaries cede reinsurance to other companies to diversify risk and limit maximum loss arising from large claims. However, AFG remains liable to its insureds regardless of whether a reinsurer is able to meet its obligations. The following table shows (in millions) (i) amounts deducted from property and casualty written and earned premiums in connection with reinsurance ceded, (ii) written and earned premiums included in income for reinsurance assumed and (iii) reinsurance recoveries, which represent ceded losses and loss adjustment expenses.



	2019			2018			2017
Direct premiums written	$	7,044		$	6,626		$	6,310
Reinsurance assumed	255			214			192
Reinsurance ceded	(1,957		)	(1,817		)	(1,751		)
Net written premiums	$	5,342		$	5,023		$	4,751

Direct premiums earned	$	6,848		$	6,472		$	6,112
Reinsurance assumed	226			204			157
Reinsurance ceded	(1,889		)	(1,811		)	(1,690		)
Net earned premiums	$	5,185		$	4,865		$	4,579

Reinsurance recoveries	$	1,404		$	1,249		$	1,379

In June 2017, AFG’s property and casualty insurance subsidiaries entered into a reinsurance agreement to obtain supplemental catastrophe protection through a catastrophe bond structure with Riverfront Re Ltd. (“Riverfront”). The reinsurance agreement provides supplemental reinsurance coverage up to 95% of $200 million (fully collateralized) for catastrophe losses in excess of $134 million of traditional catastrophe reinsurance (per occurrence and annual aggregate) occurring until December 31, 2020. In connection with the reinsurance agreement, Riverfront issued notes to unrelated investors for the full amount of coverage provided under the reinsurance agreement. Through December 31, 2019, AFG’s incurred catastrophe losses have not reached the level of attachment for the catastrophe bond structure. Riverfront is a variable interest entity in which AFG does not have a variable interest because the variability in Riverfront’s results will be absorbed entirely by the investors in Riverfront. Accordingly, Riverfront is not consolidated in AFG’s financial statements and the reinsurance agreement is accounted for as ceded reinsurance. AFG’s cost for this coverage is approximately $11 million per year.

AFG has reinsured approximately $6.23 billion of its $9.53 billion in face amount of life insurance at December 31, 2019 compared to $7.69 billion of its $10.82 billion in face amount of life insurance at December 31, 2018. Life written premiums ceded were $20 million, $22 million and $28 million for 2019, 2018 and 2017, respectively. Reinsurance recoveries on ceded life policies were $32 million, $38 million and $35 million for 2019, 2018 and 2017, respectively.

Fixed Annuities For certain products, the liability for “annuity benefits accumulated” includes reserves for excess benefits expected to be paid on future deaths and annuitizations guaranteed withdrawal benefits and accrued persistency and premium bonuses. The liabilities included in AFG’s Balance Sheet for these benefits, excluding the impact of unrealized gains on securities, were as follows at December 31 (in millions):



	2019		2018
Expected death and annuitization	$	232	$	229
Guaranteed withdrawal benefits	625		472
Accrued persistency and premium bonuses	1		1

Variable Annuities At December 31, 2019, the aggregate guaranteed minimum death benefit value (assuming every variable annuity policyholder died on that date) on AFG’s variable annuity policies exceeded the fair value of the underlying variable annuities by $13 million, compared to $35 million at December 31, 2018. Death benefits paid in excess of the variable annuity account balances were less than $1 million in each of the last three years ended December 31, 2019, 2018 and 2017.

Additional Information	12 Months Ended
Additional Information	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Additional Information	Additional Information Allowance for Uncollectible Reinsurance AFG’s aggregate allowance for uncollectible reinsurance recoverables was $18 million at both December 31, 2019 and December 31, 2018. AFG reviews the allowance quarterly and adjusts it as necessary to reflect changes in estimates of uncollectible balances. AFG recorded net expense reductions against the allowance of less than $1 million in 2019, $2 million in 2018 and less than $1 million in 2017. In 2017, the allowance was reduced by reinsurance recoverable write-offs of $2 million. See Note A — “Accounting Policies — Credit Impairment Guidance Effective in 2020” for a discussion of accounting guidance adopted on January 1, 2020, which provides a new credit loss model for determining credit-related impairments for reinsurance recoverables and requires an entity to estimate the credit losses expected over the life of an exposure or pool of exposures. The new guidance is not expected to have a material impact on AFG’s results of operations or financial position. Financial Instruments — Unfunded Commitments On occasion, AFG and its subsidiaries have entered into financial instrument transactions that may present off-balance-sheet risks of both a credit and market risk nature. These transactions include commitments to fund loans, loan guarantees and commitments to purchase and sell securities or loans. At December 31, 2019, AFG and its subsidiaries had commitments to fund credit facilities and contribute capital to limited partnerships and limited liability corporations of approximately $897 million. Benefit Plans AFG expensed approximately $39 million in 2019, $37 million in 2018 and $45 million in 2017 for its retirement and employee savings plans.

Condensed Financial Information of Parent Company

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information of Parent Company

AMERICAN FINANCIAL GROUP, INC. — PARENT ONLY

SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF REGISTRANT

(In Millions)

Condensed Balance Sheet



	December 31,
	2019		2018
Assets:
Cash and cash equivalents	$	166	$	158
Investment in securities	77		65
Investment in subsidiaries (a)	7,623		6,155
Other investments	2		2
Other assets	143		68
Total assets	$	8,011	$	6,448

Liabilities and Equity:
Long-term debt	$	1,473	$	1,302
Other liabilities	269		176
Shareholders’ equity	6,269		4,970
Total liabilities and equity	$	8,011	$	6,448

Condensed Statement of Earnings



	Year ended December 31,
	2019		2018		2017
Revenues:
Dividends from subsidiaries	$	417	$	261	$	681
Equity in undistributed earnings of subsidiaries	888		529		264
Investment and other income	20		2		13
Total revenues	1,325		792		958

Costs and Expenses:
Interest charges on intercompany borrowings	8		8		9
Interest charges on other borrowings	68		62		85
Other expenses	113		70		142
Total costs and expenses	189		140		236

Earnings before income taxes	1,136		652		722
Provision for income taxes	239		122		247
Net Earnings Attributable to Shareholders	$	897	$	530	$	475

Condensed Statement of Comprehensive Income



Net earnings attributable to shareholders	$	897	$	530		$	475
Other comprehensive income (loss), net of tax	815		(544		)	296
Total comprehensive income (loss), net of tax	$	1,712	$	(14	)	$	771

________________________

(a)

Investment in subsidiaries includes intercompany receivables and payables.

Condensed Statement of Cash Flows



	Year ended December 31,
	2019			2018			2017
Operating Activities:
Net earnings attributable to shareholders	$	897		$	530		$	475
Adjustments:
Equity in net earnings of subsidiaries	(1,032		)	(637		)	(575		)
Dividends from subsidiaries	408			238			580
Other operating activities, net	33			84			98
Net cash provided by operating activities	306			215			578

Investing Activities:
Capital contributions to subsidiaries	(60		)	(11		)	(93		)
Returns of capital from subsidiaries	4			23			30
Purchases of investments, property and equipment	(3		)	(5		)	(2		)
Proceeds from maturities and redemptions of investments	3			3			2
Net cash provided by (used in) investing activities	(56		)	10			(63		)

Financing Activities:
Additional long-term borrowings	315			—			712
Reductions of long-term debt	(150		)	—			(745		)
Issuances of Common Stock	37			34			37
Repurchases of Common Stock	—			(6		)	—
Cash dividends paid on Common Stock	(444		)	(394		)	(417		)
Net cash used in financing activities	(242		)	(366		)	(413		)

Net Change in Cash and Cash Equivalents	8			(141		)	102
Cash and cash equivalents at beginning of year	158			299			197
Cash and cash equivalents at end of year	$	166		$	158		$	299

Supplementary Insurance Information

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract]

Supplementary Insurance Information

AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES

SCHEDULE III — SUPPLEMENTARY INSURANCE INFORMATION

THREE YEARS ENDED DECEMBER 31, 2019

(IN MILLIONS)



Segment	Deferred policy acquisition costs		Reserves for future policy benefits, claims and unpaid losses and LAE		Unearned premiums		Net earned premiums		Net investment income		Benefits, claims, losses and settlement expenses		Amortization of deferred policy acquisition costs		Other operating expenses		Net written premiums (excluding life)
2019
Property and casualty insurance	$	322	$	10,232	$	2,830	$	5,185	$	472	$	3,271	$	721	$	1,027	$	5,342
Annuity	696		40,406		—		—		1,792		1,151		198		189		—
Other	19		612		—		22		39		36		4		532		3
Total	$	1,037	$	51,250	$	2,830	$	5,207	$	2,303	$	4,458	$	923	$	1,748	$	5,345

2018
Property and casualty insurance	$	299	$	9,741	$	2,595	$	4,865	$	438	$	3,003	$	644	$	957	$	5,023
Annuity	1,360		36,616		—		—		1,638		998		212		174		—
Other	23		635		—		24		18		40		4		479		3
Total	$	1,682	$	46,992	$	2,595	$	4,889	$	2,094	$	4,041	$	860	$	1,610	$	5,026

2017
Property and casualty insurance	$	270	$	9,678	$	2,410	$	4,579	$	362	$	2,955	$	556	$	867	$	4,751
Annuity	920		33,316		—		—		1,458		892		130		159		—
Other	26		658		—		22		11		26		4		552		3
Total	$	1,216	$	43,652	$	2,410	$	4,601	$	1,831	$	3,873	$	690	$	1,578	$	4,754

Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

Fair Value Measurements

Deferred Policy Acquisition Costs (''DPAC'')

Managed Investment Entities

Unpaid Losses and Loss Adjustment Expenses

Annuity Benefits Accumulated

Annuity benefits accumulated also includes amounts advanced from the Federal Home Loan Bank of Cincinnati.

Unearned Revenue

Life, Accident and Health Reserves

Debt Issuance Costs

Variable Annuity Assets and Liabilities

Leases


•	exclude leases with a term of 12 months or less from the calculation of lease assets and liabilities,


•	not separate lease and non-lease components except for buildings (office space and storage facilities),


•	for contracts existing at the date of adoption – not reassess whether a contract is a lease or contains a lease, how initial direct costs were accounted for or whether the lease is an operating or finance lease, and


•	use hindsight to determine the lease term for leases existing at the date of adoption.

Premium Recognition

Noncontrolling Interests

interests that are redeemable at the option of the holder are presented separately in the mezzanine section of the balance sheet (between liabilities and equity).

Income Taxes

Stock-Based Compensation

AFG records excess tax benefits or deficiencies for share-based payments through income tax expense in the statement of earnings. In addition, AFG accounts for forfeitures of awards when they occur.

Benefit Plans

Earnings Per Share

Statement of Cash Flows

Credit Impairment Guidance Effective in 2020

Acquisitions and Sale of Businesses (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Schedule of estimated fair values of assets acquired and liabilities assumed

The allocation of the purchase price is shown in the table below (in millions):



	November 30, 2018
Total purchase price	$	30

Tangible assets acquired	28
Liabilities acquired	26
Net tangible assets acquired, at fair value	2
Excess purchase price over net tangible assets acquired	$	28

Allocation of excess purchase price:
Intangible assets acquired (*)	$	25
Deferred tax on intangible assets acquired (*)	(5		)
Goodwill	8
	$	28

(*)

Included in Other assets in AFG’s Balance Sheet.

Segments of Operations (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

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



	2019		2018		2017
Assets
Property and casualty insurance (a)	$	19,098	$	17,681	$	17,171
Annuity	45,074		39,952		37,179
Other	5,958		5,823		6,308
Total assets	$	70,130	$	63,456	$	60,658



Revenues
Property and casualty insurance:
Premiums earned:
Specialty
Property and transportation	$	1,828	$	1,729		$	1,711
Specialty casualty	2,597		2,403			2,186
Specialty financial	610		598			576
Other specialty	150		135			106
Total premiums earned	5,185		4,865			4,579
Net investment income	472		438			362
Other income	11		10			28
Total property and casualty insurance	5,668		5,313			4,969
Annuity:
Net investment income	1,792		1,638			1,458
Other income	108		107			103
Total annuity	1,900		1,745			1,561
Other	382		358			330
Total revenues before realized gains (losses)	7,950		7,416			6,860
Realized gains (losses) on securities	287		(266		)	5
Total revenues	$	8,237	$	7,150		$	6,865


(a)	Not allocable to sub-segments.



	2019			2018			2017
Earnings Before Income Taxes
Property and casualty insurance:
Underwriting:
Specialty
Property and transportation	$	79		$	120		$	154
Specialty casualty	175			141			104
Specialty financial	92			66			61
Other specialty	(21		)	(5		)	(2		)
Other lines (a)	(113		)	(20		)	(75		)
Total underwriting	212			302			242
Investment and other income, net	437			407			349
Total property and casualty insurance	649			709			591
Annuity	362			361			380
Other (b)	(190		)	(165		)	(252		)
Total earnings before realized gains (losses) and income taxes	821			905			719
Realized gains (losses) on securities	287			(266		)	5
Total earnings before income taxes	$	1,108		$	639		$	724


(a)	Includes special charges to increase asbestos and environmental (“A&E”) reserves of $18 million in both 2019 and 2018 and $89 million in 2017, respectively. Also includes a $76 million charge in 2019 and $18 million in favorable development recorded in 2017 related to the Neon exited lines.

(b)

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

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
December 31, 2019
Assets:
Available for sale (“AFS”) fixed maturities:
U.S. Government and government agencies	$	151	$	43	$	15	$	209
States, municipalities and political subdivisions	—		6,858		105		6,963
Foreign government	—		172		—		172
Residential MBS	—		2,987		173		3,160
Commercial MBS	—		892		35		927
Collateralized loan obligations	—		4,265		15		4,280
Other asset-backed securities	—		5,842		1,286		7,128
Corporate and other	29		21,879		1,758		23,666
Total AFS fixed maturities	180		42,938		3,387		46,505
Trading fixed maturities	2		111		—		113
Equity securities	1,433		67		437		1,937
Equity index call options	—		924		—		924
Assets of managed investment entities (“MIE”)	213		4,506		17		4,736
Variable annuity assets (separate accounts) (*)	—		628		—		628
Other assets — derivatives	—		50		—		50
Total assets accounted for at fair value	$	1,828	$	49,224	$	3,841	$	54,893
Liabilities:
Liabilities of managed investment entities	$	206	$	4,349	$	16	$	4,571
Derivatives in annuity benefits accumulated	—		—		3,730		3,730
Other liabilities — derivatives	—		10		—		10
Total liabilities accounted for at fair value	$	206	$	4,359	$	3,746	$	8,311

December 31, 2018
Assets:
Available for sale fixed maturities:
U.S. Government and government agencies	$	141	$	83	$	9	$	233
States, municipalities and political subdivisions	—		6,880		59		6,939
Foreign government	—		142		—		142
Residential MBS	—		2,547		197		2,744
Commercial MBS	—		864		56		920
Collateralized loan obligations	—		4,162		116		4,278
Other asset-backed securities	—		4,802		731		5,533
Corporate and other	28		19,184		1,996		21,208
Total AFS fixed maturities	169		38,664		3,164		41,997
Trading fixed maturities	9		96		—		105
Equity securities	1,410		68		336		1,814
Equity index call options	—		184		—		184
Assets of managed investment entities	203		4,476		21		4,700
Variable annuity assets (separate accounts) (*)	—		557		—		557
Other assets — derivatives	—		16		—		16
Total assets accounted for at fair value	$	1,791	$	44,061	$	3,521	$	49,373
Liabilities:
Liabilities of managed investment entities	$	195	$	4,297	$	20	$	4,512
Derivatives in annuity benefits accumulated	—		—		2,720		2,720
Other liabilities — derivatives	—		49		—		49
Total liabilities accounted for at fair value	$	195	$	4,346	$	2,740	$	7,281

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

Fair value measurements, Levels 1 and 2 transfers



	Level 2 To Level 1 Transfers									Level 1 To Level 2 Transfers
	# of Transfers			Fair Value						# of Transfers			Fair Value
	2019	2018	2017	2019		2018		2017		2019	2018	2017	2019		2018		2017
Perpetual preferred stocks	2	2	4	$	11	$	5	$	23	1	2	2	$	6	$	6	$	11
Common stocks	1	—	—	—		—		—		—	—	1	—		—		—

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 Level 3 liabilities. See Note F — “Derivatives.”



	Unobservable Input		Range
	Adjustment for insurance subsidiary’s credit risk		0.2% – 2.4% over the risk-free rate
	Risk margin for uncertainty in cash flows		0.80% reduction in the discount rate
	Surrenders		3% – 22% of indexed account value
	Partial surrenders		2% – 9% of indexed account value
	Annuitizations		0.1% – 1% of indexed account value
	Deaths		1.5% – 10.6% of indexed account value
	Budgeted option costs		2.5% – 3.3% of indexed account value

Changes in asset balances of Level 3 financial assets



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2018			Net earnings			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at December 31, 2019
AFS fixed maturities:
U.S. government agency	$	9		$	—		$	7		$	—		$	(1	)	$	—	$	—		$	15
State and municipal	59			—			5			—			(3		)	55		(11		)	105
Residential MBS	197			6			(3		)	—			(20		)	48		(55		)	173
Commercial MBS	56			2			—			—			(12		)	4		(15		)	35
Collateralized loan obligations	116			(5		)	5			—			—			28		(129		)	15
Other asset-backed securities	731			—			6			787			(192		)	23		(69		)	1,286
Corporate and other	1,996			(3		)	55			738			(335		)	30		(723		)	1,758
Total AFS fixed maturities	3,164			—			75			1,525			(563		)	188		(1,002		)	3,387
Equity securities	336			(5		)	—			52			(2		)	56		—			437
Assets of MIE	21			(5		)	—			1			—			—		—			17
Total Level 3 assets	$	3,521		$	(10	)	$	75		$	1,578		$	(565	)	$	244	$	(1,002	)	$	3,841

Embedded derivatives (a)	$	(2,720	)	$	(919	)	$	—		$	(333	)	$	242		$	—	$	—		$	(3,730	)
Total Level 3 liabilities (b)	$	(2,720	)	$	(919	)	$	—		$	(333	)	$	242		$	—	$	—		$	(3,730	)


(a)	Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes a favorable adjustment related to the unlocking of actuarial assumptions of $181 million in 2019.


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



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2017			Net earnings			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at December 31, 2018
AFS fixed maturities:
U.S. government agency	$	8		$	—		$	—		$	—		$	—		$	1	$	—		$	9
State and municipal	148			—			(2		)	—			(3		)	—		(84		)	59
Residential MBS	122			(9		)	(4		)	—			(21		)	130		(21		)	197
Commercial MBS	36			—			—			20			—			—		—			56
Collateralized loan obligations	200			(3		)	(13		)	35			(20		)	3		(86		)	116
Other asset-backed securities	544			—			(2		)	391			(228		)	79		(53		)	731
Corporate and other	1,044			(10		)	(18		)	1,221			(204		)	27		(64		)	1,996
Total AFS fixed maturities	2,102			(22		)	(39		)	1,667			(476		)	240		(308		)	3,164
Equity securities	165			9			—			155			(6		)	30		(17		)	336
Assets of MIE	23			(8		)	—			6			—			—		—			21
Total Level 3 assets	$	2,290		$	(21	)	$	(39	)	$	1,828		$	(482	)	$	270	$	(325	)	$	3,521

Embedded derivatives (a)	$	(2,542	)	$	204		$	—		$	(545	)	$	163		$	—	$	—		$	(2,720	)
Total Level 3 liabilities (b)	$	(2,542	)	$	204		$	—		$	(545	)	$	163		$	—	$	—		$	(2,720	)


(a)	Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $44 million in 2018.


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



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2016			Net earnings			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at December 31, 2017
AFS fixed maturities:
U.S. government agency	$	8		$	—		$	—		$	—		$	—		$	—	$	—		$	8
State and municipal	140			—			2			—			(2		)	10		(2		)	148
Residential MBS	190			(4		)	2			1			(40		)	44		(71		)	122
Commercial MBS	25			2			—			15			(10		)	4		—			36
Collateralized loan obligations	174			(1		)	(1		)	55			(27		)	—		—			200
Other asset-backed securities	310			1			2			355			(105		)	202		(221		)	544
Corporate and other	712			(5		)	2			606			(237		)	29		(63		)	1,044
Total AFS fixed maturities	1,559			(7		)	7			1,032			(421		)	289		(357		)	2,102
Equity securities	174			(21		)	10			38			(16		)	—		(20		)	165
Assets of MIE	29			(11		)	—			9			—			—		(4		)	23
Total Level 3 assets	$	1,762		$	(39	)	$	17		$	1,079		$	(437	)	$	289	$	(381	)	$	2,290

Embedded derivatives (a)	$	(1,759	)	$	(589	)	$	—		$	(300	)	$	106		$	—	$	—		$	(2,542	)
Total Level 3 liabilities (b)	$	(1,759	)	$	(589	)	$	—		$	(300	)	$	106		$	—	$	—		$	(2,542	)


(a)	Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $25 million in 2017.


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

Changes in liability balances of Level 3 financial liabilities



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2018			Net earnings			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at December 31, 2019
AFS fixed maturities:
U.S. government agency	$	9		$	—		$	7		$	—		$	(1	)	$	—	$	—		$	15
State and municipal	59			—			5			—			(3		)	55		(11		)	105
Residential MBS	197			6			(3		)	—			(20		)	48		(55		)	173
Commercial MBS	56			2			—			—			(12		)	4		(15		)	35
Collateralized loan obligations	116			(5		)	5			—			—			28		(129		)	15
Other asset-backed securities	731			—			6			787			(192		)	23		(69		)	1,286
Corporate and other	1,996			(3		)	55			738			(335		)	30		(723		)	1,758
Total AFS fixed maturities	3,164			—			75			1,525			(563		)	188		(1,002		)	3,387
Equity securities	336			(5		)	—			52			(2		)	56		—			437
Assets of MIE	21			(5		)	—			1			—			—		—			17
Total Level 3 assets	$	3,521		$	(10	)	$	75		$	1,578		$	(565	)	$	244	$	(1,002	)	$	3,841

Embedded derivatives (a)	$	(2,720	)	$	(919	)	$	—		$	(333	)	$	242		$	—	$	—		$	(3,730	)
Total Level 3 liabilities (b)	$	(2,720	)	$	(919	)	$	—		$	(333	)	$	242		$	—	$	—		$	(3,730	)


(a)	Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes a favorable adjustment related to the unlocking of actuarial assumptions of $181 million in 2019.


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



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2017			Net earnings			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at December 31, 2018
AFS fixed maturities:
U.S. government agency	$	8		$	—		$	—		$	—		$	—		$	1	$	—		$	9
State and municipal	148			—			(2		)	—			(3		)	—		(84		)	59
Residential MBS	122			(9		)	(4		)	—			(21		)	130		(21		)	197
Commercial MBS	36			—			—			20			—			—		—			56
Collateralized loan obligations	200			(3		)	(13		)	35			(20		)	3		(86		)	116
Other asset-backed securities	544			—			(2		)	391			(228		)	79		(53		)	731
Corporate and other	1,044			(10		)	(18		)	1,221			(204		)	27		(64		)	1,996
Total AFS fixed maturities	2,102			(22		)	(39		)	1,667			(476		)	240		(308		)	3,164
Equity securities	165			9			—			155			(6		)	30		(17		)	336
Assets of MIE	23			(8		)	—			6			—			—		—			21
Total Level 3 assets	$	2,290		$	(21	)	$	(39	)	$	1,828		$	(482	)	$	270	$	(325	)	$	3,521

Embedded derivatives (a)	$	(2,542	)	$	204		$	—		$	(545	)	$	163		$	—	$	—		$	(2,720	)
Total Level 3 liabilities (b)	$	(2,542	)	$	204		$	—		$	(545	)	$	163		$	—	$	—		$	(2,720	)


(a)	Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $44 million in 2018.


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



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2016			Net earnings			Other comprehensive income (loss)			Purchases and issuances			Sales and settlements			Transfer into Level 3		Transfer out of Level 3			Balance at December 31, 2017
AFS fixed maturities:
U.S. government agency	$	8		$	—		$	—		$	—		$	—		$	—	$	—		$	8
State and municipal	140			—			2			—			(2		)	10		(2		)	148
Residential MBS	190			(4		)	2			1			(40		)	44		(71		)	122
Commercial MBS	25			2			—			15			(10		)	4		—			36
Collateralized loan obligations	174			(1		)	(1		)	55			(27		)	—		—			200
Other asset-backed securities	310			1			2			355			(105		)	202		(221		)	544
Corporate and other	712			(5		)	2			606			(237		)	29		(63		)	1,044
Total AFS fixed maturities	1,559			(7		)	7			1,032			(421		)	289		(357		)	2,102
Equity securities	174			(21		)	10			38			(16		)	—		(20		)	165
Assets of MIE	29			(11		)	—			9			—			—		(4		)	23
Total Level 3 assets	$	1,762		$	(39	)	$	17		$	1,079		$	(437	)	$	289	$	(381	)	$	2,290

Embedded derivatives (a)	$	(1,759	)	$	(589	)	$	—		$	(300	)	$	106		$	—	$	—		$	(2,542	)
Total Level 3 liabilities (b)	$	(1,759	)	$	(589	)	$	—		$	(300	)	$	106		$	—	$	—		$	(2,542	)


(a)	Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $25 million in 2017.


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

Fair value of financial instruments

The carrying value and fair value of financial instruments that are not carried at fair value in the financial statements at December 31 are summarized below (in millions):



	Carrying		Fair Value
	Value		Total		Level 1		Level 2		Level 3
2019
Financial assets:
Cash and cash equivalents	$	2,314	$	2,314	$	2,314	$	—	$	—
Mortgage loans	1,329		1,346		—		—		1,346
Policy loans	164		164		—		—		164
Total financial assets not accounted for at fair value	$	3,807	$	3,824	$	2,314	$	—	$	1,510
Financial liabilities:
Annuity benefits accumulated (*)	$	40,159	$	40,182	$	—	$	—	$	40,182
Long-term debt	1,473		1,622		—		1,619		3
Total financial liabilities not accounted for at fair value	$	41,632	$	41,804	$	—	$	1,619	$	40,185

2018
Financial assets:
Cash and cash equivalents	$	1,515	$	1,515	$	1,515	$	—	$	—
Mortgage loans	1,068		1,056		—		—		1,056
Policy loans	174		174		—		—		174
Total financial assets not accounted for at fair value	$	2,757	$	2,745	$	1,515	$	—	$	1,230
Financial liabilities:
Annuity benefits accumulated (*)	$	36,384	$	34,765	$	—	$	—	$	34,765
Long-term debt	1,302		1,231		—		1,228		3
Total financial liabilities not accounted for at fair value	$	37,686	$	35,996	$	—	$	1,228	$	34,768

(*)

Excludes $247 million and $232 million of life contingent annuities in the payout phase at December 31, 2019 and 2018, respectively.

Investments (Tables)

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Available for sale fixed maturities and equity securities

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



	2019												2018
	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	$	199	$	10	$	—		$	10		$	209	$	235	$	1	$	(3	)	$	(2	)	$	233
States municipalities and political subdivisions	6,604		363		(4		)	359			6,963		6,825		169		(55		)	114			6,939
Foreign government	170		3		(1		)	2			172		140		2		—			2			142
Residential MBS	2,900		265		(5		)	260			3,160		2,476		277		(9		)	268			2,744
Commercial MBS	896		31		—			31			927		905		17		(2		)	15			920
Collateralized loan obligations	4,307		10		(37		)	(27		)	4,280		4,350		1		(73		)	(72		)	4,278
Other asset-backed securities	6,992		156		(20		)	136			7,128		5,431		129		(27		)	102			5,533
Corporate and other	22,456		1,231		(21		)	1,210			23,666		21,475		167		(434		)	(267		)	21,208
Total fixed maturities	$	44,524	$	2,069	$	(88	)	$	1,981		$	46,505	$	41,837	$	763	$	(603	)	$	160		$	41,997

Equity securities reported at fair value

Equity securities, which are reported at fair value with holding gains and losses recognized in net earnings, consisted of the following at December 31 (in millions):



	2019						2018
					Fair Value						Fair Value
	Actual				over (under)		Actual				over (under)
	Cost		Fair Value		Cost		Cost		Fair Value		Cost
Common stocks	$	1,164	$	1,283	$	119	$	1,241	$	1,148	$	(93	)
Perpetual preferred stocks	640		654		14		705		666		(39		)
Total equity securities carried at fair value	$	1,804	$	1,937	$	133	$	1,946	$	1,814	$	(132	)

Available for sale securities in a continuous unrealized loss position



	Less Than Twelve Months							Twelve Months or More
	Unrealized Loss			Fair Value		Fair Value as % of Cost		Unrealized Loss			Fair Value		Fair Value as % of Cost
	Unrealized Loss			Fair Value		Fair Value as % of Cost		Unrealized Loss			Fair Value		Fair Value as % of Cost
December 31, 2019
Fixed maturities:
U.S. Government and government agencies	$	—		$	16	100	%	$	—		$	11	100	%
States, municipalities and political subdivisions	(3		)	254		99	%	(1		)	82		99	%
Foreign government	(1		)	70		99	%	—			—		—	%
Residential MBS	(4		)	509		99	%	(1		)	69		99	%
Commercial MBS	—			17		100	%	—			—		—	%
Collateralized loan obligations	(11		)	1,284		99	%	(26		)	1,728		99	%
Other asset-backed securities	(12		)	1,211		99	%	(8		)	123		94	%
Corporate and other	(13		)	1,100		99	%	(8		)	211		96	%
Total fixed maturities	$	(44	)	$	4,461	99	%	$	(44	)	$	2,224	98	%

December 31, 2018
Fixed maturities:
U.S. Government and government agencies	$	—		$	41	100	%	$	(3	)	$	120	98	%
States, municipalities and political subdivisions	(23		)	1,497		98	%	(32		)	902		97	%
Foreign government	—			18		100	%	—			4		100	%
Residential MBS	(4		)	279		99	%	(5		)	139		97	%
Commercial MBS	(1		)	147		99	%	(1		)	30		97	%
Collateralized loan obligations	(61		)	3,540		98	%	(12		)	197		94	%
Other asset-backed securities	(16		)	1,866		99	%	(11		)	432		98	%
Corporate and other	(306		)	10,378		97	%	(128		)	2,078		94	%
Total fixed maturities	$	(411	)	$	17,766	98	%	$	(192	)	$	3,902	95	%

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



	2019			2018			2017
Balance at January 1	$	142		$	145		$	153
Additional credit impairments on:
Previously impaired securities	1			1			1
Securities without prior impairments	—			1			3
Reductions due to sales or redemptions	(9		)	(5		)	(12		)
Balance at December 31	$	134		$	142		$	145

Available for sale fixed maturity securities by contractual maturity date



	Amortized		Fair Value
	Cost		Amount		%
Maturity
One year or less	$	1,764	$	1,793	4	%
After one year through five years	10,613		11,044		24	%
After five years through ten years	13,513		14,419		31	%
After ten years	3,539		3,754		8	%
	29,429		31,010		67	%
Collateralized loan obligations and other ABS (average life of approximately 4 years)	11,299		11,408		24	%
MBS (average life of approximately 4-1/2 years)	3,796		4,087		9	%
Total	$	44,524	$	46,505	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			Net
December 31, 2019
Net unrealized gain on:
Fixed maturities — annuity segment (*)	$	1,611		$	(338	)	$	1,273
Fixed maturities — all other	370			(78		)	292
Total fixed maturities	1,981			(416		)	1,565
Deferred policy acquisition costs — annuity segment	(681		)	143			(538		)
Annuity benefits accumulated	(219		)	46			(173		)
Life, accident and health reserves	(1		)	—			(1		)
Unearned revenue	11			(2		)	9
Total net unrealized gain on marketable securities	$	1,091		$	(229	)	$	862

December 31, 2018
Net unrealized gain on:
Fixed maturities — annuity segment (*)	$	101		$	(21	)	$	80
Fixed maturities — all other	59			(13		)	46
Total fixed maturities	160			(34		)	126
Deferred policy acquisition costs — annuity segment	(42		)	9			(33		)
Annuity benefits accumulated	(14		)	3			(11		)
Unearned revenue	1			—			1
Total net unrealized gain on marketable securities	$	105		$	(22	)	$	83

(*)

Net 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.



	2019			2018			2017
Investment income:
Fixed maturities	$	1,915		$	1,742		$	1,607
Equity securities:
Dividends	85			79			73
Change in fair value (*)	39			22			6
Equity in earnings of partnerships and similar investments	154			161			64
Other	132			112			102
Gross investment income	2,325			2,116			1,852
Investment expenses	(22		)	(22		)	(21		)
Net investment income	$	2,303		$	2,094		$	1,831

(*)

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) included in AOCI related to fixed maturity and equity security investments are summarized as follows (in millions):



	2019												2018
	Realized gains (losses)												Realized gains (losses)
	Before Impairments			Impairments			Total			Change in Unrealized			Before Impairments			Impairments			Total			Change in Unrealized
Fixed maturities	$	26		$	(29	)	$	(3	)	$	1,821		$	6		$	(26	)	$	(20	)	$	(1,181	)
Equity securities	277			—			277			—			(265		)	—			(265		)	—
Mortgage loans and other investments	3			—			3			—			1			—			1			—
Other (*)	—			10			10			(835		)	11			7			18			502
Total pretax	306			(19		)	287			986			(247		)	(19		)	(266		)	(679		)
Tax effects	(64		)	4			(60		)	(207		)	52			4			56			143
Net of tax	$	242		$	(15	)	$	227		$	779		$	(195	)	$	(15	)	$	(210	)	$	(536	)



	2017
	Realized gains (losses)
	Before Impairments			Impairments			Total			Change in Unrealized
Fixed maturities	$	17		$	(20	)	$	(3	)	$	532
Equity securities	70			(64		)	6			128
Mortgage loans and other investments	(6		)	(4		)	(10		)	—
Other (*)	(3		)	15			12			(219		)
Total pretax	78			(73		)	5			441
Tax effects:
Reclassify impact of U.S. corporate tax rate change	—			—			—			149
Other	(27		)	25			(2		)	(154		)
Total tax effects	(27		)	25			(2		)	(5		)
Net of tax	$	51		$	(48	)	$	3		$	436

(*)

Primarily adjustments to deferred policy acquisition costs and reserves related to the annuity business.

Holding gains (losses) on equity securities still held

AFG recorded net holding gains (losses) on equity securities during 2019 and 2018 on securities that were still owned at December 31 as follows (in millions):



	2019		2018
Included in realized gains (losses)	$	169	$	(279	)
Included in net investment income	38		22
	$	207	$	(257	)

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



	2019			2018			2017
Gross gains	$	35		$	22		$	43
Gross losses	(19		)	(14		)	(20		)

Derivatives (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives included in Balance Sheet at fair value

The following derivatives that do not qualify for hedge accounting under GAAP are included in AFG’s Balance Sheet at fair value (in millions):



		December 31, 2019				December 31, 2018
Derivative	Balance Sheet Line	Asset		Liability		Asset		Liability
MBS with embedded derivatives	Fixed maturities	$	102	$	—	$	109	$	—
Public company warrants	Equity securities	—		—		—		—
Fixed-indexed and variable-indexed annuities (embedded derivative)	Annuity benefits accumulated	—		3,730		—		2,720
Equity index call options	Equity index call options	924		—		184		—
Equity index put options	Other liabilities	—		1		—		1
Reinsurance contract (embedded derivative)	Other liabilities	—		4		—		2
		$	1,026	$	3,735	$	293	$	2,723

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



Derivative	Statement of Earnings Line	2019			2018			2017
MBS with embedded derivatives	Realized gains (losses) on securities	$	10		$	(7	)	$	(6	)
Public company warrants	Realized gains (losses) on securities	(1		)	(3		)	—
Fixed-indexed and variable-indexed annuities (embedded derivative) (*)	Annuity benefits	(919		)	204			(589		)
Equity index call options	Annuity benefits	804			(298		)	494
Equity index put options	Annuity benefits	2			(1		)	—
Reinsurance contracts (embedded derivative)	Net investment income	(2		)	2			(2		)
		$	(106	)	$	(103	)	$	(103	)

(*)

The change in fair value of the embedded derivative includes a favorable adjustment related to unlocking of actuarial assumptions of $181 million in 2019 and losses of $44 million in 2018 and $25 million in 2017.

Deferred Policy Acquisition Costs (Tables)

12 Months Ended

Dec. 31, 2019

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 Other
	Deferred			Deferred			Sales															Consolidated
	Costs			Costs			Inducements			PVFP			Subtotal			Unrealized (*)			Total			Total
Balance at December 31, 2016	$	238		$	1,110		$	110		$	46		$	1,266		$	(265	)	$	1,001		$	1,239
Additions	588			225			4			—			229			—			229			817
Amortization:
Periodic amortization	(556		)	(161		)	(19		)	(8		)	(188		)	—			(188		)	(744		)
Annuity unlocking	—			34			6			1			41			—			41			41
Included in realized gains	—			9			1			—			10			—			10			10
Foreign currency translation	—			—			—			—			—			—			—			—
Other	—			—			—			10			10			—			10			10
Change in unrealized	—			—			—			—			—			(157		)	(157		)	(157		)
Balance at December 31, 2017	270			1,217			102			49			1,368			(422		)	946			1,216

Additions	675			263			2			—			265			—			265			940
Amortization:
Periodic amortization	(644		)	(238		)	(19		)	(7		)	(264		)	—			(264		)	(908		)
Annuity unlocking	—			29			—			—			29			—			29			29
Included in realized gains	—			14			1			—			15			—			15			15
Foreign currency translation	(2		)	—			—			—			—			—			—			(2		)
Change in unrealized	—			—			—			—			—			392			392			392
Balance at December 31, 2018	299			1,285			86			42			1,413			(30		)	1,383			1,682

Additions	744			206			2			—			208			—			208			952
Amortization:
Periodic amortization	(721		)	(120		)	(13		)	(6		)	(139		)	—			(139		)	(860		)
Annuity unlocking	—			(76		)	(1		)	—			(77		)	—			(77		)	(77		)
Included in realized gains	—			8			1			—			9			—			9			9
Foreign currency translation	—			—			—			—			—			—			—			—
Change in unrealized	—			—			—			—			—			(669		)	(669		)	(669		)
Balance at December 31, 2019	$	322		$	1,303		$	75		$	36		$	1,414		$	(699	)	$	715		$	1,037

(*)

Adjustments to DPAC related to net unrealized gains/losses on securities and cash flow hedges.

Managed Investment Entities (Tables)

12 Months Ended

Dec. 31, 2019

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

Selected financial information related to collateralized loan obligations

Selected financial information related to the CLOs is shown below (in millions):



	Year ended December 31,
	2019			2018			2017
Investment in CLO tranches	$	165		$	188		$	215
Gains (losses) on change in fair value of assets/liabilities (a):
Assets	80			(189		)	(8		)
Liabilities	(110		)	168			20
Management fees paid to AFG	15			16			18
CLO earnings attributable to AFG Shareholders (b)	4			7			23


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

(b)

Included in earnings before income taxes in AFG’s Statement of Earnings.

- Definition

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

+ References + Details

Goodwill and Other Intangibles (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying value of goodwill by reporting segment

Changes in the carrying value of goodwill during 2017, 2018 and 2019, by reporting segment, are presented in the following table (in millions):



	Property and Casualty		Annuity		Total
Balance at January 1, 2017 and December 31, 2017	$	168	$	31	$	199
Acquisition of subsidiary in 2018	8		—		8
Balance at December 31, 2018 and December 31, 2019	$	176	$	31	$	207

Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

Long-term debt consisted of the following at December 31 (in millions):



	2019							2018
	Principal		Discount and Issue Costs			Carrying Value		Principal		Discount and Issue Costs			Carrying Value
Direct Senior Obligations of AFG:
4.50% Senior Notes due June 2047	$	590	$	(2	)	$	588	$	590	$	(2	)	$	588
3.50% Senior Notes due August 2026	425		(3		)	422		425		(4		)	421
Other	3		—			3		3		—			3
	1,018		(5		)	1,013		1,018		(6		)	1,012

Direct Subordinated Obligations of AFG:
5.125% Subordinated Debentures due December 2059	200		(6		)	194		—		—			—
6% Subordinated Debentures due November 2055	150		(5		)	145		150		(5		)	145
5.875% Subordinated Debentures due March 2059	125		(4		)	121		—		—			—
6-1/4% Subordinated Debentures due September 2054	—		—			—		150		(5		)	145
	475		(15		)	460		300		(10		)	290
	$	1,493	$	(20	)	$	1,473	$	1,318	$	(16	)	$	1,302

- 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://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Leases Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lease activity

The following table details AFG’s lease activity for the year ended December 31, 2019 (in millions):



	2019
Lease expense:
Operating leases	$	46
Short-term leases	1
Total lease expense	$	47

Other operating lease liability information

Other operating lease information for the year ended December 31, 2019 (in millions):



Cash paid for lease liabilities reported in operating cash flows	$	49
Right-of-use assets obtained under new leases	19

Undiscounted contractual maturities of operating lease liabilities

The following table presents the undiscounted contractual maturities of AFG’s operating lease liability at December 31, 2019 (in millions):



Operating lease payments:
2020	$	46
2021	41
2022	32
2023	27
2024	20
Thereafter	35
Total lease payments	201
Impact of discounting	(21		)
Operating lease liability	$	180

Schedule of weighted-average remaining lease term and weighted-average discount rate



Weighted-average remaining lease term	5.5 years
Weighted-average discount rate	4.1	%

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2019

Stockholders' Equity Note [Abstract]

Summary of restricted stock awards activity

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



	Shares		Average Grant Date Fair Value
Outstanding at January 1, 2019	865,930		$	84.06
Granted	232,635		$	99.28
Vested	(167,326	)	$	66.10
Forfeited	(11,304	)	$	90.26
Outstanding at December 31, 2019	919,935		$	91.10

Summary of stock options activity

Data for stock options issued under AFG’s stock incentive plans is presented below:



	Shares		Average Exercise Price		Average Remaining Contractual Term	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2019	2,667,442		$	48.20
Exercised	(747,167	)	$	41.13
Forfeited/Cancelled	(2,485	)	$	61.88
Outstanding at December 31, 2019	1,917,790		$	50.93	3.7 years	$	113

Options exercisable at December 31, 2019	1,779,941		$	50.13	3.6 years	$	107

Components of accumulated other comprehensive income (loss)

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



				Other Comprehensive Income (Loss)
	AOCI Beginning Balance			Pretax			Tax			Net of tax			Attributable to noncontrolling interests		Attributable to shareholders			Other (c)			AOCI Ending Balance
Year ended December 31, 2019
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period				$	997		$	(209	)	$	788		$	—	$	788
Reclassification adjustment for realized (gains) losses included in net earnings (a)				(11		)	2			(9		)	—		(9		)
Total net unrealized gains on securities (b)	$	83		986			(207		)	779			—		779			$	—		$	862
Net unrealized gains (losses) on cash flow hedges	(11		)	36			(8		)	28			—		28			—			17
Foreign currency translation adjustments	(16		)	7			—			7			—		7			—			(9		)
Pension and other postretirement plans adjustments	(8		)	1			—			1			—		1			—			(7		)
Total	$	48		$	1,030		$	(215	)	$	815		$	—	$	815		$	—		$	863

Year ended December 31, 2018
Net unrealized gains (losses) on securities:
Unrealized holding losses on securities arising during the period				$	(689	)	$	145		$	(544	)	$	—	$	(544	)
Reclassification adjustment for realized (gains) losses included in net earnings (a)				10			(2		)	8			—		8
Total net unrealized gains (losses) on securities (b)	$	840		(679		)	143			(536		)	—		(536		)	$	(221	)	$	83
Net unrealized gains (losses) on cash flow hedges	(13		)	2			—			2			—		2			—			(11		)
Foreign currency translation adjustments	(6		)	(9		)	(1		)	(10		)	—		(10		)	—			(16		)
Pension and other postretirement plans adjustments	(8		)	—			—			—			—		—			—			(8		)
Total	$	813		$	(686	)	$	142		$	(544	)	$	—	$	(544	)	$	(221	)	$	48

Year ended December 31, 2017
Net unrealized gains on securities:
Unrealized holding gains on securities arising during the period				$	456		$	(159	)	$	297		$	—	$	297
Reclassification adjustment for realized (gains) losses included in net earnings (a)				(15		)	5			(10		)	—		(10		)
Total net unrealized gains on securities (b)	$	404		441			(154		)	287			—		287			$	149		$	840
Net unrealized losses on cash flow hedges	(7		)	(6		)	2			(4		)	—		(4		)	(2		)	(13		)
Foreign currency translation adjustments	(15		)	9			3			12			—		12			(3		)	(6		)
Pension and other postretirement plans adjustments	(7		)	1			—			1			—		1			(2		)	(8		)
Total	$	375		$	445		$	(149	)	$	296		$	—	$	296		$	142		$	813

(a) The reclassification adjustment out of net unrealized gains (losses) 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


(b)	Includes net unrealized gains of $55 million at December 31, 2019 compared to $58 million and $68 million at December 31, 2018 and 2017, related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.

(c)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Reconciliation of income taxes at the statutory rate and income taxes shown in the Statement of Earnings



	2019					2018					2017
	Amount			% of EBT		Amount			% of EBT		Amount			% of EBT
Earnings before income taxes (“EBT”)	$	1,108				$	639				$	724

Income taxes at statutory rate	$	233		21	%	$	134		21	%	$	253		35	%
Effect of:
Tax exempt interest	(14		)	(1	%)	(13		)	(2	%)	(23		)	(3	%)
Stock-based compensation	(8		)	(1	%)	(8		)	(1	%)	(16		)	(2	%)
Dividend received deduction	(4		)	—	%	(4		)	(1	%)	(8		)	(1	%)
Adjustment to prior year taxes	(3		)	—	%	(8		)	(1	%)	(4		)	(1	%)
Employee stock ownership plan dividend paid deduction	(2		)	—	%	(3		)	(1	%)	(5		)	(1	%)
Change in valuation allowance (excluding change in tax rate)	17			2	%	11			2	%	(7		)	(1	%)
Nondeductible expenses	8			1	%	7			1	%	6			1	%
Foreign operations	4			—	%	(2		)	—	%	21			3	%
Neon restructuring	—			—	%	—			—	%	(56		)	(8	%)
Change in U.S corporate tax rate	—			—	%	—			—	%	83			11	%
Other	8			—	%	8			1	%	3			1	%
Provision for income taxes as shown in the statement of earnings	$	239		22	%	$	122		19	%	$	247		34	%

Components of income tax provision (credit)

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



	2019			2018			2017
Current taxes:
Federal	$	250		$	196		$	153
State	10			8			6
Foreign	2			—			—
Deferred taxes:
Federal	(23		)	(82		)	5
Impact of change in U.S. corporate tax rate	—			—			83
Total Federal deferred taxes	(23		)	(82		)	88
Provision for income taxes	$	239		$	122		$	247

Summary of operating loss carryforwards

For income tax purposes, AFG and its subsidiaries had the following carryforwards available at December 31, 2019 (in millions):

(*)

£231 million

Components of deferred tax assets and liabilities

The significant components of deferred tax assets and liabilities included in AFG’s Balance Sheet at December 31 were as follows (in millions):



	2019									2018
	Excluding Unrealized Gains			Impact of Unrealized Gains			Total			Excluding Unrealized Gains			Impact of Unrealized Gains			Total
Deferred tax assets:
Federal net operating loss carryforwards	$	19		$	—		$	19		$	23		$	—		$	23
Foreign underwriting losses	118			—			118			93			—			93
Insurance claims and reserves	829			46			875			740			3			743
Employee benefits	93			—			93			88			—			88
Other, net	45			(2		)	43			44			—			44
Total deferred tax assets before valuation allowance	1,104			44			1,148			988			3			991
Valuation allowance against deferred tax assets	(140		)	—			(140		)	(119		)	—			(119		)
Total deferred tax assets	964			44			1,008			869			3			872
Deferred tax liabilities:
Investment securities	(140		)	(416		)	(556		)	(36		)	(34		)	(70		)
Deferred policy acquisition costs	(293		)	143			(150		)	(300		)	9			(291		)
Insurance claims and reserves transition liability	(93		)	—			(93		)	(110		)	—			(110		)
Real estate, property and equipment	(35		)	—			(35		)	(36		)	—			(36		)
Total deferred tax liabilities	(561		)	(273		)	(834		)	(482		)	(25		)	(507		)
Net deferred tax asset (liability)	$	403		$	(229	)	$	174		$	387		$	(22	)	$	365

Progression of the liability for uncertain tax positions, excluding interest and penalties

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



	2019		2018		2017
Balance at January 1	$	—	$	—	$	1
Additions for tax positions of prior years	—		—		—
Reductions for tax positions of prior years	—		—		—
Additions for tax positions of current year	—		—		—
Settlements	—		—		(1		)
Balance at December 31	$	—	$	—	$	—

Quarterly Operating Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of quarterly operating results



	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter			Total Year
2019
Revenues	$	2,024	$	1,960	$	2,123	$	2,130		$	8,237
Net earnings, including noncontrolling interests	326		209		143		191			869
Net earnings attributable to shareholders	329		210		147		211			897
Earnings attributable to shareholders per Common Share:
Basic	$	3.68	$	2.34	$	1.64	$	2.33		$	9.98
Diluted	3.63		2.31		1.62		2.30			9.85
Average number of Common Shares:
Basic	89.4		89.7		90.0		90.2			89.9
Diluted	90.7		91.0		91.1		91.3			91.0
2018
Revenues	$	1,619	$	1,833	$	2,008	$	1,690		$	7,150
Net earnings (losses), including noncontrolling interests	141		208		203		(35		)	517
Net earnings (losses) attributable to shareholders	145		210		204		(29		)	530
Earnings (losses) attributable to shareholders per Common Share:
Basic	$	1.64	$	2.36	$	2.30	$	(0.33	)	$	5.95
Diluted	1.60		2.31		2.26		(0.33		)	5.85
Average number of Common Shares:
Basic	88.6		89.0		89.1		89.3			89.0
Diluted	90.4		90.7		90.7		89.3			90.6

Quarterly information on realized gains (losses)

Pretax realized gains (losses) on securities, which resulted primarily from changes in the fair value of equity securities, were as follows (in millions):



	1st Quarter			2nd Quarter		3rd Quarter			4th Quarter			Total Year
2019 — change in fair value of equity securities	$	182		$	44	$	(15	)	$	67		$	278
2019 — other realized gains (losses)	2			12		(3		)	(2		)	9
2018 — change in fair value of equity securities	(95		)	23		33			(223		)	(262		)
2018 — other realized gains (losses)	2			8		1			(15		)	(4		)

Quarterly information on the impact of items on fair value accounting for annuities



	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			Total Year
2019	$	(11	)	$	(33	)	$	(27	)	$	24		$	(47	)
2018	15			(14		)	17			(66		)	(48		)

Quarterly information on favorable (adverse) development on unpaid loss and loss adjustment expenses

Favorable prior year development of AFG’s liability for property and casualty losses and loss adjustment expenses (”LAE”) was as follows (in millions):



	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Total Year
2019	$	45	$	41	$	12	$	45	$	143
2018	56		44		31		61		192

Quarterly information on catastrophe losses

AFG’s property and casualty operations recorded catastrophe losses, including reinstatement premiums, as follows (in millions):



	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter			Total Year
2019	$	(12	)	$	(12	)	$	(22	)	$	(15	)	$	(61	)
2018	(13		)	(16		)	(38		)	(38		)	(105		)

Insurance (Tables)

12 Months Ended

Dec. 31, 2019

Insurance [Abstract]

Reconciliation of beginning and ending liability for unpaid losses and loss adjustment expenses

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



	2019			2018			2017
Balance at beginning of period	$	9,741		$	9,678		$	8,563
Less reinsurance recoverables, net of allowance	2,942			2,957			2,302
Net liability at beginning of period	6,799			6,721			6,261
Provision for losses and LAE occurring in the current year	3,414			3,195			3,019
Net increase (decrease) in the provision for claims of prior years:
Special A&E charges	18			18			89
Neon exited lines charge	7			—			(18		)
Other	(168		)	(210		)	(135		)
Total losses and LAE incurred	3,271			3,003			2,955
Payments for losses and LAE of:
Current year	(1,076		)	(963		)	(942		)
Prior years	(1,790		)	(1,639		)	(1,586		)
Total payments	(2,866		)	(2,602		)	(2,528		)
Reserves of businesses disposed (*)	—			(319		)	—
Foreign currency translation and other	4			(4		)	33
Net liability at end of period	7,208			6,799			6,721
Add back reinsurance recoverables, net of allowance	3,024			2,942			2,957
Gross unpaid losses and LAE included in the balance sheet	$	10,232		$	9,741		$	9,678

(*)

Reflects the reinsurance to close transactions at Neon (discussed below).

Short-duration insurance contracts, reconciliation of claims development to liability



	2019
Unpaid losses and allocated LAE, net of reinsurance:
Specialty
Property and transportation	$	1,171
Specialty casualty	4,056
Specialty financial	221
Other specialty	313
Total Specialty (excluding foreign reserves)	5,761

Other reserves
Reserves for foreign operations:
Neon Lloyd’s business	357
Other subsidiaries	289
A&E reserves	383
Unallocated LAE	361
Other	57
Total other reserves	1,447
Total reserves, net of reinsurance	7,208

Add back reinsurance recoverables, net of allowance	3,024
Gross unpaid losses and LAE included in the balance sheet	$	10,232

Short-duration insurance contracts, claims development



Property and transportation
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	679	$	639	$	645	$	652	$	655	$	655	$	660	$	657	$	655	$	655	$	3	138,105
2011			811		799		813		827		837		850		846		844		843		5		138,309
2012					864		857		871		883		894		890		886		881		8		143,122
2013							882		870		872		878		878		877		873		10		138,864
2014									844		828		817		820		815		808		15		132,971
2015											818		784		779		777		777		23		134,618
2016													746		716		714		706		46		120,884
2017															889		847		843		80		140,067
2018																	932		902		119		128,428
2019																			1,111		288		138,508
																	Total		$	8,399



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	316	$	486	$	535	$	596	$	626	$	637	$	642	$	647	$	649	$	650	99.2	%
2011			365		667		727		771		803		821		829		833		834		98.9	%
2012					572		708		772		816		842		856		882		869		98.6	%
2013							438		702		760		804		831		847		858		98.3	%
2014									329		632		693		744		770		783		96.9	%
2015											359		582		667		707		736		94.7	%
2016													294		521		577		618		87.5	%
2017															379		640		696		82.6	%
2018																	396		676		74.9	%
2019																			527		47.4	%
																	Total		$	7,247
							Unpaid losses and LAE — years 2010 through 2019												1,152
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																19
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	1,171



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	47.1	%	29.8	%	7.7	%	6.0	%	3.6	%	1.8	%	1.5	%	(0.1	%)	0.2	%	0.2	%
Cumulative	47.1	%	76.9	%	84.6	%	90.6	%	94.2	%	96.0	%	97.5	%	97.4	%	97.6	%	97.8	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).



Specialty casualty
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	871	$	887	$	888	$	867	$	880	$	870	$	868	$	866	$	855	$	846	$	28	56,716
2011			852		849		839		848		834		828		826		817		810		37		54,755
2012					901		892		885		885		883		877		849		842		53		54,682
2013							968		949		945		940		945		926		916		77		54,929
2014									1,035		1,008		1,008		1,006		982		967		98		56,445
2015											1,081		1,043		1,041		1,042		1,024		126		57,427
2016													1,131		1,122		1,116		1,101		236		56,000
2017															1,211		1,221		1,204		372		56,073
2018																	1,277		1,307		548		57,081
2019																			1,308		773		51,198
																	Total		$	10,325



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	191	$	412	$	560	$	645	$	700	$	736	$	757	$	771	$	783	$	798	94.3	%
2011			174		383		522		612		662		694		714		731		745		92.0	%
2012					173		385		516		621		684		723		745		761		90.4	%
2013							182		396		554		666		729		766		797		87.0	%
2014									190		412		574		680		755		801		82.8	%
2015											178		411		577		702		792		77.3	%
2016													186		418		584		713		64.8	%
2017															200		422		612		50.8	%
2018																	210		475		36.3	%
2019																			212		16.2	%
																	Total		$	6,706
							Unpaid losses and LAE — years 2010 through 2019												3,619
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																437
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	4,056



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	18.7	%	22.9	%	16.4	%	11.5	%	7.3	%	4.3	%	2.7	%	1.9	%	1.6	%	1.8	%
Cumulative	18.7	%	41.6	%	58.0	%	69.5	%	76.8	%	81.1	%	83.8	%	85.7	%	87.3	%	89.1	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).



Specialty financial
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	138	$	145	$	132	$	132	$	135	$	133	$	130	$	127	$	126	$	126	$	1	21,925
2011			138		157		155		153		147		144		143		139		137		—		16,369
2012					163		163		151		139		137		135		132		127		1		21,076
2013							140		145		137		131		127		126		122		4		28,460
2014									146		157		156		153		147		142		5		29,436
2015											156		160		158		153		145		10		37,562
2016													179		184		187		182		18		45,054
2017															212		215		212		27		48,421
2018																	212		217		30		46,198
2019																			194		77		35,369
																	Total		$	1,604



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019			% (a)
2010	$	61	$	93	$	104	$	122	$	132	$	130	$	128	$	126	$	126	$	126		100.0	%
2011			58		111		115		123		130		131		131		132		132			96.4	%
2012					71		104		109		117		121		126		128		126			99.2	%
2013							70		100		107		113		117		117		118			96.7	%
2014									62		109		125		128		137		139			97.9	%
2015											72		110		129		133		132			91.0	%
2016													88		141		158		161			88.5	%
2017															120		169		186			87.7	%
2018																	112		163			75.1	%
2019																			99			51.0	%
																	Total		$	1,382
							Unpaid losses and LAE — years 2010 through 2019												222
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																(1		)
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	221



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	50.5	%	27.7	%	7.9	%	5.4	%	4.2	%	0.9	%	0.2	%	(0.8	%)	—	%	—	%
Cumulative	50.5	%	78.2	%	86.1	%	91.5	%	95.7	%	96.6	%	96.8	%	96.0	%	96.0	%	96.0	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).



Other specialty
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims (a)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	36	$	39	$	40	$	39	$	40	$	40	$	40	$	40	$	40	$	39	$	1	—
2011			39		43		42		43		43		44		44		43		42		1		—
2012					42		40		39		40		41		39		39		36		2		—
2013							46		47		46		47		50		53		58		3		—
2014									58		57		59		59		60		61		6		—
2015											59		60		63		66		76		3		—
2016													61		61		65		71		15		—
2017															63		65		70		23		—
2018																	86		90		53		—
2019																			108		87		—
																	Total		$	651



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (b)
2010	$	8	$	14	$	21	$	24	$	27	$	33	$	35	$	36	$	37	$	37	94.9	%
2011			12		20		25		28		34		36		37		38		39		92.9	%
2012					8		17		21		25		28		30		30		32		88.9	%
2013							7		16		22		34		37		44		51		87.9	%
2014									13		21		30		36		43		50		82.0	%
2015											10		26		31		50		62		81.6	%
2016													9		19		31		47		66.2	%
2017															10		19		30		42.9	%
2018																	12		23		25.6	%
2019																			9		8.3	%
																	Total		$	380
							Unpaid losses and LAE — years 2010 through 2019												271
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																42
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	313



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	16.6	%	16.5	%	13.2	%	14.9	%	10.5	%	9.8	%	4.9	%	3.5	%	2.5	%	—	%
Cumulative	16.6	%	33.1	%	46.3	%	61.2	%	71.7	%	81.5	%	86.4	%	89.9	%	92.4	%	92.4	%


(a)	The amounts shown in Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty property and casualty insurance sub-segments. Accordingly, the liability for incurred claims and allocated LAE represents additional reserves held on claims counted in the tables provided for the other sub-segments (above).


(b)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).



Total Specialty Group
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	1,724	$	1,710	$	1,705	$	1,690	$	1,710	$	1,698	$	1,698	$	1,690	$	1,676	$	1,666	$	33	216,746
2011			1,840		1,848		1,849		1,871		1,861		1,866		1,859		1,843		1,832		43		209,433
2012					1,970		1,952		1,946		1,947		1,955		1,941		1,906		1,886		64		218,880
2013							2,036		2,011		2,000		1,996		2,000		1,982		1,969		94		222,253
2014									2,083		2,050		2,040		2,038		2,004		1,978		124		218,852
2015											2,114		2,047		2,041		2,038		2,022		162		229,607
2016													2,117		2,083		2,082		2,060		315		221,938
2017															2,375		2,348		2,329		502		244,561
2018																	2,507		2,516		750		231,707
2019																			2,721		1,225		225,075
																	Total		$	20,979



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	576	$	1,005	$	1,220	$	1,387	$	1,485	$	1,536	$	1,562	$	1,580	$	1,595	$	1,611	96.7	%
2011			609		1,181		1,389		1,534		1,629		1,682		1,711		1,734		1,750		95.5	%
2012					824		1,214		1,418		1,579		1,675		1,735		1,785		1,788		94.8	%
2013							697		1,214		1,443		1,617		1,714		1,774		1,824		92.6	%
2014									594		1,174		1,422		1,588		1,705		1,773		89.6	%
2015											619		1,129		1,404		1,592		1,722		85.2	%
2016													577		1,099		1,350		1,539		74.7	%
2017															709		1,250		1,524		65.4	%
2018																	730		1,337		53.1	%
2019																			847		31.1	%
																	Total		$	15,715
							Unpaid losses and LAE — years 2010 through 2019												5,264
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																497
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	5,761



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	32.6	%	25.7	%	12.1	%	8.9	%	5.6	%	3.1	%	2.1	%	0.8	%	0.9	%	1.0	%
Cumulative	32.6	%	58.3	%	70.4	%	79.3	%	84.9	%	88.0	%	90.1	%	90.9	%	91.8	%	92.8	%

(a)

Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).

Short-duration insurance contracts, schedule of historical claims duration



Property and transportation
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	679	$	639	$	645	$	652	$	655	$	655	$	660	$	657	$	655	$	655	$	3	138,105
2011			811		799		813		827		837		850		846		844		843		5		138,309
2012					864		857		871		883		894		890		886		881		8		143,122
2013							882		870		872		878		878		877		873		10		138,864
2014									844		828		817		820		815		808		15		132,971
2015											818		784		779		777		777		23		134,618
2016													746		716		714		706		46		120,884
2017															889		847		843		80		140,067
2018																	932		902		119		128,428
2019																			1,111		288		138,508
																	Total		$	8,399



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	316	$	486	$	535	$	596	$	626	$	637	$	642	$	647	$	649	$	650	99.2	%
2011			365		667		727		771		803		821		829		833		834		98.9	%
2012					572		708		772		816		842		856		882		869		98.6	%
2013							438		702		760		804		831		847		858		98.3	%
2014									329		632		693		744		770		783		96.9	%
2015											359		582		667		707		736		94.7	%
2016													294		521		577		618		87.5	%
2017															379		640		696		82.6	%
2018																	396		676		74.9	%
2019																			527		47.4	%
																	Total		$	7,247
							Unpaid losses and LAE — years 2010 through 2019												1,152
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																19
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	1,171



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	47.1	%	29.8	%	7.7	%	6.0	%	3.6	%	1.8	%	1.5	%	(0.1	%)	0.2	%	0.2	%
Cumulative	47.1	%	76.9	%	84.6	%	90.6	%	94.2	%	96.0	%	97.5	%	97.4	%	97.6	%	97.8	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).



Specialty casualty
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	871	$	887	$	888	$	867	$	880	$	870	$	868	$	866	$	855	$	846	$	28	56,716
2011			852		849		839		848		834		828		826		817		810		37		54,755
2012					901		892		885		885		883		877		849		842		53		54,682
2013							968		949		945		940		945		926		916		77		54,929
2014									1,035		1,008		1,008		1,006		982		967		98		56,445
2015											1,081		1,043		1,041		1,042		1,024		126		57,427
2016													1,131		1,122		1,116		1,101		236		56,000
2017															1,211		1,221		1,204		372		56,073
2018																	1,277		1,307		548		57,081
2019																			1,308		773		51,198
																	Total		$	10,325



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	191	$	412	$	560	$	645	$	700	$	736	$	757	$	771	$	783	$	798	94.3	%
2011			174		383		522		612		662		694		714		731		745		92.0	%
2012					173		385		516		621		684		723		745		761		90.4	%
2013							182		396		554		666		729		766		797		87.0	%
2014									190		412		574		680		755		801		82.8	%
2015											178		411		577		702		792		77.3	%
2016													186		418		584		713		64.8	%
2017															200		422		612		50.8	%
2018																	210		475		36.3	%
2019																			212		16.2	%
																	Total		$	6,706
							Unpaid losses and LAE — years 2010 through 2019												3,619
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																437
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	4,056



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	18.7	%	22.9	%	16.4	%	11.5	%	7.3	%	4.3	%	2.7	%	1.9	%	1.6	%	1.8	%
Cumulative	18.7	%	41.6	%	58.0	%	69.5	%	76.8	%	81.1	%	83.8	%	85.7	%	87.3	%	89.1	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).



Specialty financial
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	138	$	145	$	132	$	132	$	135	$	133	$	130	$	127	$	126	$	126	$	1	21,925
2011			138		157		155		153		147		144		143		139		137		—		16,369
2012					163		163		151		139		137		135		132		127		1		21,076
2013							140		145		137		131		127		126		122		4		28,460
2014									146		157		156		153		147		142		5		29,436
2015											156		160		158		153		145		10		37,562
2016													179		184		187		182		18		45,054
2017															212		215		212		27		48,421
2018																	212		217		30		46,198
2019																			194		77		35,369
																	Total		$	1,604



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019			% (a)
2010	$	61	$	93	$	104	$	122	$	132	$	130	$	128	$	126	$	126	$	126		100.0	%
2011			58		111		115		123		130		131		131		132		132			96.4	%
2012					71		104		109		117		121		126		128		126			99.2	%
2013							70		100		107		113		117		117		118			96.7	%
2014									62		109		125		128		137		139			97.9	%
2015											72		110		129		133		132			91.0	%
2016													88		141		158		161			88.5	%
2017															120		169		186			87.7	%
2018																	112		163			75.1	%
2019																			99			51.0	%
																	Total		$	1,382
							Unpaid losses and LAE — years 2010 through 2019												222
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																(1		)
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	221



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	50.5	%	27.7	%	7.9	%	5.4	%	4.2	%	0.9	%	0.2	%	(0.8	%)	—	%	—	%
Cumulative	50.5	%	78.2	%	86.1	%	91.5	%	95.7	%	96.6	%	96.8	%	96.0	%	96.0	%	96.0	%


(a)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).



Other specialty
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims (a)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	36	$	39	$	40	$	39	$	40	$	40	$	40	$	40	$	40	$	39	$	1	—
2011			39		43		42		43		43		44		44		43		42		1		—
2012					42		40		39		40		41		39		39		36		2		—
2013							46		47		46		47		50		53		58		3		—
2014									58		57		59		59		60		61		6		—
2015											59		60		63		66		76		3		—
2016													61		61		65		71		15		—
2017															63		65		70		23		—
2018																	86		90		53		—
2019																			108		87		—
																	Total		$	651



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (b)
2010	$	8	$	14	$	21	$	24	$	27	$	33	$	35	$	36	$	37	$	37	94.9	%
2011			12		20		25		28		34		36		37		38		39		92.9	%
2012					8		17		21		25		28		30		30		32		88.9	%
2013							7		16		22		34		37		44		51		87.9	%
2014									13		21		30		36		43		50		82.0	%
2015											10		26		31		50		62		81.6	%
2016													9		19		31		47		66.2	%
2017															10		19		30		42.9	%
2018																	12		23		25.6	%
2019																			9		8.3	%
																	Total		$	380
							Unpaid losses and LAE — years 2010 through 2019												271
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																42
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	313



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	16.6	%	16.5	%	13.2	%	14.9	%	10.5	%	9.8	%	4.9	%	3.5	%	2.5	%	—	%
Cumulative	16.6	%	33.1	%	46.3	%	61.2	%	71.7	%	81.5	%	86.4	%	89.9	%	92.4	%	92.4	%


(a)	The amounts shown in Other specialty represent business assumed by AFG’s internal reinsurance program from the operations that make up AFG’s other Specialty property and casualty insurance sub-segments. Accordingly, the liability for incurred claims and allocated LAE represents additional reserves held on claims counted in the tables provided for the other sub-segments (above).


(b)	Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).



Total Specialty Group
(Dollars in Millions)

	Incurred Claims and Allocated LAE, Net of Reinsurance																				As of December 31, 2019
	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)																				Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	1,724	$	1,710	$	1,705	$	1,690	$	1,710	$	1,698	$	1,698	$	1,690	$	1,676	$	1,666	$	33	216,746
2011			1,840		1,848		1,849		1,871		1,861		1,866		1,859		1,843		1,832		43		209,433
2012					1,970		1,952		1,946		1,947		1,955		1,941		1,906		1,886		64		218,880
2013							2,036		2,011		2,000		1,996		2,000		1,982		1,969		94		222,253
2014									2,083		2,050		2,040		2,038		2,004		1,978		124		218,852
2015											2,114		2,047		2,041		2,038		2,022		162		229,607
2016													2,117		2,083		2,082		2,060		315		221,938
2017															2,375		2,348		2,329		502		244,561
2018																	2,507		2,516		750		231,707
2019																			2,721		1,225		225,075
																	Total		$	20,979



	Cumulative Paid Claims and Allocated LAE, Net of Reinsurance
Accident Year	For the Years Ended (2010–2018 is Supplementary Information and Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		% (a)
2010	$	576	$	1,005	$	1,220	$	1,387	$	1,485	$	1,536	$	1,562	$	1,580	$	1,595	$	1,611	96.7	%
2011			609		1,181		1,389		1,534		1,629		1,682		1,711		1,734		1,750		95.5	%
2012					824		1,214		1,418		1,579		1,675		1,735		1,785		1,788		94.8	%
2013							697		1,214		1,443		1,617		1,714		1,774		1,824		92.6	%
2014									594		1,174		1,422		1,588		1,705		1,773		89.6	%
2015											619		1,129		1,404		1,592		1,722		85.2	%
2016													577		1,099		1,350		1,539		74.7	%
2017															709		1,250		1,524		65.4	%
2018																	730		1,337		53.1	%
2019																			847		31.1	%
																	Total		$	15,715
							Unpaid losses and LAE — years 2010 through 2019												5,264
			Unpaid losses and LAE — 11th year and prior (excluding unallocated LAE)																497
			Unpaid losses and LAE, net of reinsurance (excluding unallocated LAE)																$	5,761



	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Annual	32.6	%	25.7	%	12.1	%	8.9	%	5.6	%	3.1	%	2.1	%	0.8	%	0.9	%	1.0	%
Cumulative	32.6	%	58.3	%	70.4	%	79.3	%	84.9	%	88.0	%	90.1	%	90.9	%	91.8	%	92.8	%

(a)

Represents the cumulative percentage paid of incurred claims and allocated LAE (net of reinsurance, as estimated at December 31, 2019).

Statutory information

Net earnings and capital and surplus on a statutory basis for the insurance subsidiaries were as follows (in millions):



	Net Earnings						Capital and Surplus
	2019		2018		2017		2019		2018
Property and casualty companies	$	584	$	546	$	484	$	3,342	$	2,867
Life (annuity) insurance companies	34		802		286		2,868		2,701

Reinsurance information

The following table shows (in millions) (i) amounts deducted from property and casualty written and earned premiums in connection with reinsurance ceded, (ii) written and earned premiums included in income for reinsurance assumed and (iii) reinsurance recoveries, which represent ceded losses and loss adjustment expenses.



	2019			2018			2017
Direct premiums written	$	7,044		$	6,626		$	6,310
Reinsurance assumed	255			214			192
Reinsurance ceded	(1,957		)	(1,817		)	(1,751		)
Net written premiums	$	5,342		$	5,023		$	4,751

Direct premiums earned	$	6,848		$	6,472		$	6,112
Reinsurance assumed	226			204			157
Reinsurance ceded	(1,889		)	(1,811		)	(1,690		)
Net earned premiums	$	5,185		$	4,865		$	4,579

Reinsurance recoveries	$	1,404		$	1,249		$	1,379

Schedule of reserve liabilities for annuity benefits accumulated

The liabilities included in AFG’s Balance Sheet for these benefits, excluding the impact of unrealized gains on securities, were as follows at December 31 (in millions):



	2019		2018
Expected death and annuitization	$	232	$	229
Guaranteed withdrawal benefits	625		472
Accrued persistency and premium bonuses	1		1

- Definition

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

+ References + Details

Accounting Policies - Narrative (Details) - USD ($) $ in Millions		1 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019	Jan. 01, 2018
Significant Accounting Policies [Line Items]
Cumulative effect of accounting change							$ 4
Operating lease liability			$ 180			$ 198
Operating lease right-of-use asset			158			174
Deferred rent and lease incentives			$ 22			$ 24
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect					$ 0
Weighted average common shares adjustment related to stock-based compensation			1,100,000	1,600,000	2,000,000.0
Anti-dilutive potential common shares related to stock-based compensation plans			0	0	0
Maturities of short term investments			3 months
Equity securities
Significant Accounting Policies [Line Items]
Available-for-sale securities, Equity securities	$ 1,600	$ 1,600			$ 1,600
Equity securities \| Accounting Standards Update 2016-01
Significant Accounting Policies [Line Items]
Cumulative effect of accounting change							(221)
Tax Cuts and Jobs Act of 2017 \| Accounting Standards Update 2018-02
Significant Accounting Policies [Line Items]
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect	$ 145	$ 145
Limited partnerships and similar investments \| Accounting Standards Update 2016-01
Significant Accounting Policies [Line Items]
Cumulative effect of accounting change							$ (4)
Equity securities still owned \| Equity securities \| Accounting Standards Update 2016-01
Significant Accounting Policies [Line Items]
Net holding gains (losses) on equity securities			$ 207	$ (257)

Acquisitions and Sale of Businesses - Narrative on acquisitions of subsidiaries (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	Nov. 30, 2018	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jun. 10, 2019
Business Acquisitions [Line Items]
Payments to acquire subsidiaries			$ 0	$ 36	$ 0
Goodwill acquired during period		$ 8		$ 8
Atlas Financial Holdings - Paratransit Business
Business Acquisitions [Line Items]
Gross written premiums eligible for renewal					$ 110
Business acquisition, price as a percent of gross written premiums						15.00%
Warrant term to acquire shares						5 years
Number of shares able to be acquired with the warrant						2.4
Business acquisition, percentage of entity acquired by warrants						19.90%
ABA Insurance Services
Business Acquisitions [Line Items]
Payments to acquire subsidiaries	$ 30
Contingent consideration			$ 3
Contingent consideration term				4 years
Finite-lived intangible assets acquired	25
Finite-lived intangible asset useful life				9 years
Goodwill acquired during period	$ 8
Equity securities \| Warrant \| Maximum \| Atlas Financial Holdings - Paratransit Business
Business Acquisitions [Line Items]
Fair value of asset on date received						$ 1

Acquisitions and Sale of Businesses - Narrative on sale of businesses (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Sale of Businesses
Other		$ 26	$ 11	$ 0
Income tax expense (benefit)		$ 239	$ 122	$ 247
Neon Capital Limited
Sale of Businesses
Other	$ (3)
Income tax expense (benefit)	$ (56)				$ (48)

Acquisitions and Sale of Businesses - Allocation of the purchase price of subsidiary (Details) - USD ($)
$ in Millions

1 Months Ended

12 Months Ended

Nov. 30, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Business Acquisitions [Line Items]

Total purchase price

$ 0

$ 36

$ 0

Goodwill

$ 207

$ 199

ABA Insurance Services

Business Acquisitions [Line Items]

Total purchase price

$ 30

Tangible assets acquired

Liabilities acquired

Net tangible assets acquire, at fair value

Excess purchase price over net tangible assets acquired

Intangible assets acquired

^[1]

Deferred tax on intangible assets acquired

^[1]

(5)

Goodwill

$ 8

[1]	Included in Other assets in AFG’s Balance Sheet.

Segments of Operations - Narrative (Details) $ in Millions	3 Months Ended				12 Months Ended
Segments of Operations - Narrative (Details) $ in Millions	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($) segment	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of segments \| segment					3
Revenue derived from sales of property and casualty insurance outside of the United States					7.00%	7.00%	5.00%
Property and casualty insurance \| Other lines
Segment Reporting Information [Line Items]
Percent of foreign sales attributable to Neon					66.67%
Special A&E charges		$ 18	$ 18		$ 18	$ 18	$ 89
Special charges related to the exit of certain lines of business within subsidiaries	$ 76
Other
Segment Reporting Information [Line Items]
Loss on the retirement of debt					5		51
Special charges to increase asbestos and environmental reserves					11	9	24
Special A&E charges
Segment Reporting Information [Line Items]
Special A&E charges					18	$ 18	89
Special A&E charges \| Property and casualty insurance \| Other lines
Segment Reporting Information [Line Items]
Special A&E charges					18		89
Neon Capital Limited \| Property and casualty insurance
Segment Reporting Information [Line Items]
Favorable reserve development related to certain lines of business within subsidiaries in connection with a reinsurance to close agreement				$ 42
Neon Capital Limited \| Property and casualty insurance \| Other lines
Segment Reporting Information [Line Items]
Special charges related to the exit of certain lines of business within subsidiaries					$ 76
Favorable reserve development related to certain lines of business within subsidiaries in connection with a reinsurance to close agreement				$ 18			$ 18

Segments of Operations - Assets by segment (Details) - USD ($)
$ in Millions

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Segment Reporting Information [Line Items]

Total assets

$ 70,130

$ 63,456

$ 60,658

Property and casualty insurance

Segment Reporting Information [Line Items]

Total assets

^[1]

19,098

17,681

17,171

Annuity

Segment Reporting Information [Line Items]

Total assets

45,074

39,952

37,179

Other

Segment Reporting Information [Line Items]

Total assets

$ 5,958

$ 5,823

$ 6,308

[1]	Not allocable to sub-segments.

Segments of Operations - Revenues by segment and sub-segment (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total premiums earned									$ 5,185	$ 4,865	$ 4,579
Net investment income									2,303	2,094	1,831
Other income									201	199	206
Revenues before realized gains (losses)									7,950	7,416	6,860
Realized gains (losses) on securities									287	(266)	5
Total revenues	$ 2,130	$ 2,123	$ 1,960	$ 2,024	$ 1,690	$ 2,008	$ 1,833	$ 1,619	8,237	7,150	6,865
Property and casualty insurance
Segment Reporting Information [Line Items]
Total premiums earned									5,185	4,865	4,579
Net investment income									472	438	362
Other income									11	10	28
Revenues before realized gains (losses)									5,668	5,313	4,969
Annuity
Segment Reporting Information [Line Items]
Net investment income									1,792	1,638	1,458
Other income									108	107	103
Revenues before realized gains (losses)									1,900	1,745	1,561
Other
Segment Reporting Information [Line Items]
Revenues before realized gains (losses)									382	358	330
Property and transportation \| Property and casualty insurance
Segment Reporting Information [Line Items]
Total premiums earned									1,828	1,729	1,711
Specialty casualty \| Property and casualty insurance
Segment Reporting Information [Line Items]
Total premiums earned									2,597	2,403	2,186
Specialty financial \| Property and casualty insurance
Segment Reporting Information [Line Items]
Total premiums earned									610	598	576
Other specialty \| Property and casualty insurance
Segment Reporting Information [Line Items]
Total premiums earned									$ 150	$ 135	$ 106

Segments of Operations - Earnings before income taxes by segment and sub-segment (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Segment Reporting Information [Line Items]

Earnings before realized gains (losses) and income taxes

$ 821

$ 905

$ 719

Realized gains (losses) on securities

287

(266)

Earnings before income taxes

1,108

639

724

Property and casualty insurance

Segment Reporting Information [Line Items]

Property and casualty insurance underwriting

212

302

242

Investment and other income, net

437

407

349

Earnings before realized gains (losses) and income taxes

649

709

591

Annuity

Segment Reporting Information [Line Items]

Earnings before realized gains (losses) and income taxes

362

361

380

Other

Segment Reporting Information [Line Items]

Earnings before realized gains (losses) and income taxes

^[1]

(190)

(165)

(252)

Property and transportation | Property and casualty insurance

Segment Reporting Information [Line Items]

Property and casualty insurance underwriting

120

154

Specialty casualty | Property and casualty insurance

Segment Reporting Information [Line Items]

Property and casualty insurance underwriting

175

141

104

Specialty financial | Property and casualty insurance

Segment Reporting Information [Line Items]

Property and casualty insurance underwriting

Other specialty | Property and casualty insurance

Segment Reporting Information [Line Items]

Property and casualty insurance underwriting

(21)

(5)

(2)

Other lines | Property and casualty insurance

Segment Reporting Information [Line Items]

Property and casualty insurance underwriting

^[2]

$ (113)

$ (20)

$ (75)

[1]	Primarily holding company interest and expenses, including losses on retirement of debt of $5 million in 2019 and $51 million in 2017 and special charges to increase A&E reserves related to AFG’s former railroad and manufacturing operations ($11 million in 2019, $9 million in 2018 and $24 million in 2017).
[2]	Includes special charges to increase asbestos and environmental (“A&E”) reserves of $18 million in both 2019 and 2018 and $89 million in 2017, respectively. Also includes a $76 million charge in 2019 and $18 million in favorable development recorded in 2017 related to the Neon exited lines.

Fair Value Measurements - Narrative (Details) $ in Millions	3 Months Ended	12 Months Ended
Fair Value Measurements - Narrative (Details) $ in Millions	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) basispoint professional security	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Fair Value Measurements (Textual) [Abstract]
AFG's internal investment professionals \| professional		20
Level 3 assets as a percentage of total assets measured at fair value		7.00%
Percentage of level 3 assets that were priced using non-binding broker quotes		57.00%
Level 3 assets that were priced using non-binding broker quotes		$ 2,170
Percent of spreads between 200 and 700 basis points		70.00%
Fair value of equity securities transferred into level 3		$ 244	$ 270	$ 289
Life contingent annuities		247	232
Fixed-indexed and variable-indexed annuities (embedded derivative)
Fair Value Measurements (Textual) [Abstract]
Fair value of derivatives in annuity benefits accumulated measured using a discounted cash flow approach		$ 3,730
Fixed-indexed and variable-indexed annuities (embedded derivative) \| Minimum
Fair Value Measurements (Textual) [Abstract]
Unobservable input surrenders used in Level 3 fair value determination		3.00%
Fixed-indexed and variable-indexed annuities (embedded derivative) \| Maximum
Fair Value Measurements (Textual) [Abstract]
Unobservable input surrenders used in Level 3 fair value determination		22.00%
Fixed-indexed annuities (embedded derivative), majority of future years \| Minimum
Fair Value Measurements (Textual) [Abstract]
Unobservable input surrenders used in Level 3 fair value determination		7.00%
Fixed-indexed annuities (embedded derivative), majority of future years \| Maximum
Fair Value Measurements (Textual) [Abstract]
Unobservable input surrenders used in Level 3 fair value determination		10.00%
Not Designated as Hedging Instrument \| Annuity benefits \| Fixed-indexed and variable-indexed annuities (embedded derivative)
Fair Value Measurements (Textual) [Abstract]
Total realized/unrealized gains (losses) included in net income for the embedded derivatives related to the unlocking of actuarial assumptions		$ 181	(44)	(25)
Level 3
Fair Value Measurements (Textual) [Abstract]
Internally developed level 3 assets		1,360
Fixed maturities
Fair Value Measurements (Textual) [Abstract]
Fair value of equity securities transferred into level 3		188	240	289
Equity securities
Fair Value Measurements (Textual) [Abstract]
Fair value of equity securities transferred into level 3	$ 29	56	$ 30	$ 0
Third party pricing model \| Fixed maturities \| Level 3
Fair Value Measurements (Textual) [Abstract]
Internally developed level 3 assets		$ 716
Securities priced using third-party model \| security		35
Basis points credit spread applied by management using third party model \| basispoint		396
Third party pricing model \| Fixed maturities \| Level 3 \| Minimum
Fair Value Measurements (Textual) [Abstract]
Basis points credit spread applied by management using third party model \| basispoint		100
Third party pricing model \| Fixed maturities \| Level 3 \| Maximum
Fair Value Measurements (Textual) [Abstract]
Basis points credit spread applied by management using third party model \| basispoint		1,253
Maximum \| Third party pricing model \| Fixed maturities \| Level 3
Fair Value Measurements (Textual) [Abstract]
Basis points credit spread applied by management using third party model \| basispoint		700
Minimum \| Third party pricing model \| Fixed maturities \| Level 3
Fair Value Measurements (Textual) [Abstract]
Basis points credit spread applied by management using third party model \| basispoint		200

Fair Value Measurements - Assets and liabilities measured and carried at fair value in the financial statements (Details) - USD ($)
$ in Millions

Dec. 31, 2019

Dec. 31, 2018

Assets:

Available for sale (AFS) fixed maturities

$ 46,505

$ 41,997

Trading fixed maturities

113

105

Equity securities, at fair value

1,937

1,814

Assets of managed investment entities (MIE)

4,736

4,700

Variable annuity assets (separate accounts)

^[1]

628

557

Derivatives including equity index call options and other assets

924

184

Total assets accounted for at fair value

54,893

49,373

Liabilities:

Liabilities of managed investment entities

4,571

4,512

Total liabilities accounted for at fair value

8,311

7,281

Derivatives in annuity benefits accumulated

Liabilities:

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

3,730

2,720

Other liabilities — derivatives

Liabilities:

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

Fixed maturities

Assets:

Available for sale (AFS) fixed maturities

46,505

41,997

Trading fixed maturities

113

105

U.S. Government and government agencies

Assets:

Available for sale (AFS) fixed maturities

209

233

States, municipalities and political subdivisions

Assets:

Available for sale (AFS) fixed maturities

6,963

6,939

Foreign government

Assets:

Available for sale (AFS) fixed maturities

172

142

Residential MBS

Assets:

Available for sale (AFS) fixed maturities

3,160

2,744

Commercial MBS

Assets:

Available for sale (AFS) fixed maturities

927

920

Collateralized loan obligations

Assets:

Available for sale (AFS) fixed maturities

4,280

4,278

Other asset-backed securities

Assets:

Available for sale (AFS) fixed maturities

7,128

5,533

Corporate and other

Assets:

Available for sale (AFS) fixed maturities

23,666

21,208

Equity securities

Assets:

Equity securities, at fair value

1,937

1,814

Other assets — derivatives

Assets:

Derivatives including equity index call options and other assets

Level 1

Assets:

Assets of managed investment entities (MIE)

213

203

Variable annuity assets (separate accounts)

^[1]

Total assets accounted for at fair value

1,828

1,791

Liabilities:

Liabilities of managed investment entities

206

195

Total liabilities accounted for at fair value

206

195

Level 1 | Derivatives in annuity benefits accumulated

Liabilities:

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

Level 1 | Other liabilities — derivatives

Liabilities:

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

Level 1 | Fixed maturities

Assets:

Available for sale (AFS) fixed maturities

180

169

Trading fixed maturities

Level 1 | U.S. Government and government agencies

Assets:

Available for sale (AFS) fixed maturities

151

141

Level 1 | States, municipalities and political subdivisions

Assets:

Available for sale (AFS) fixed maturities

Level 1 | Foreign government

Assets:

Available for sale (AFS) fixed maturities

Level 1 | Residential MBS

Assets:

Available for sale (AFS) fixed maturities

Level 1 | Commercial MBS

Assets:

Available for sale (AFS) fixed maturities

Level 1 | Collateralized loan obligations

Assets:

Available for sale (AFS) fixed maturities

Level 1 | Other asset-backed securities

Assets:

Available for sale (AFS) fixed maturities

Level 1 | Corporate and other

Assets:

Available for sale (AFS) fixed maturities

Level 1 | Equity securities

Assets:

Equity securities, at fair value

1,433

1,410

Level 1 | Other assets — derivatives

Assets:

Derivatives including equity index call options and other assets

Level 2

Assets:

Assets of managed investment entities (MIE)

4,506

4,476

Variable annuity assets (separate accounts)

^[1]

628

557

Total assets accounted for at fair value

49,224

44,061

Liabilities:

Liabilities of managed investment entities

4,349

4,297

Total liabilities accounted for at fair value

4,359

4,346

Level 2 | Derivatives in annuity benefits accumulated

Liabilities:

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

Level 2 | Other liabilities — derivatives

Liabilities:

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

Level 2 | Fixed maturities

Assets:

Available for sale (AFS) fixed maturities

42,938

38,664

Trading fixed maturities

111

Level 2 | U.S. Government and government agencies

Assets:

Available for sale (AFS) fixed maturities

Level 2 | States, municipalities and political subdivisions

Assets:

Available for sale (AFS) fixed maturities

6,858

6,880

Level 2 | Foreign government

Assets:

Available for sale (AFS) fixed maturities

172

142

Level 2 | Residential MBS

Assets:

Available for sale (AFS) fixed maturities

2,987

2,547

Level 2 | Commercial MBS

Assets:

Available for sale (AFS) fixed maturities

892

864

Level 2 | Collateralized loan obligations

Assets:

Available for sale (AFS) fixed maturities

4,265

4,162

Level 2 | Other asset-backed securities

Assets:

Available for sale (AFS) fixed maturities

5,842

4,802

Level 2 | Corporate and other

Assets:

Available for sale (AFS) fixed maturities

21,879

19,184

Level 2 | Equity securities

Assets:

Equity securities, at fair value

Level 2 | Other assets — derivatives

Assets:

Derivatives including equity index call options and other assets

Level 3

Assets:

Assets of managed investment entities (MIE)

Variable annuity assets (separate accounts)

^[1]

Total assets accounted for at fair value

3,841

3,521

Liabilities:

Liabilities of managed investment entities

Total liabilities accounted for at fair value

3,746

2,740

Level 3 | Derivatives in annuity benefits accumulated

Liabilities:

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

3,730

2,720

Level 3 | Other liabilities — derivatives

Liabilities:

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

Level 3 | Fixed maturities

Assets:

Available for sale (AFS) fixed maturities

3,387

3,164

Trading fixed maturities

Level 3 | U.S. Government and government agencies

Assets:

Available for sale (AFS) fixed maturities

Level 3 | States, municipalities and political subdivisions

Assets:

Available for sale (AFS) fixed maturities

105

Level 3 | Foreign government

Assets:

Available for sale (AFS) fixed maturities

Level 3 | Residential MBS

Assets:

Available for sale (AFS) fixed maturities

173

197

Level 3 | Commercial MBS

Assets:

Available for sale (AFS) fixed maturities

Level 3 | Collateralized loan obligations

Assets:

Available for sale (AFS) fixed maturities

116

Level 3 | Other asset-backed securities

Assets:

Available for sale (AFS) fixed maturities

1,286

731

Level 3 | Corporate and other

Assets:

Available for sale (AFS) fixed maturities

1,758

1,996

Level 3 | Equity securities

Assets:

Equity securities, at fair value

437

336

Level 3 | Other assets — derivatives

Assets:

Derivatives including equity index call options and other assets

Equity index call options | Equity index call options

Assets:

Derivatives including equity index call options and other assets

924

184

Equity index call options | Level 1 | Equity index call options

Assets:

Derivatives including equity index call options and other assets

Equity index call options | Level 2 | Equity index call options

Assets:

Derivatives including equity index call options and other assets

924

184

Equity index call options | Level 3 | Equity index call options

Assets:

Derivatives including equity index call options and other assets

$ 0

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

Fair Value Measurements - Transfers between Level 1 and Level 2 (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) stock	Dec. 31, 2018 USD ($) stock	Dec. 31, 2017 USD ($) stock
Perpetual preferred stocks
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of stocks transferred from Level 2 to Level 1 \| stock	2	2	4
Fair value of assets transferred from Level 2 to Level 1 \| $	$ 11	$ 5	$ 23
Number of stocks transferred from Level 1 to Level 2 \| stock	1	2	2
Fair value of assets transferred from Level 1 to Level 2 \| $	$ 6	$ 6	$ 11
Common stocks
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of stocks transferred from Level 2 to Level 1 \| stock	1	0	0
Fair value of assets transferred from Level 2 to Level 1 \| $	$ 0	$ 0	$ 0
Number of stocks transferred from Level 1 to Level 2 \| stock	0	0	1
Fair value of assets transferred from Level 1 to Level 2 \| $	$ 0	$ 0	$ 0

Fair Value Measurements - Unobservable inputs used in determining fair value of embedded derivatives (Details) - Embedded derivatives	12 Months Ended
	Dec. 31, 2019
Unobservable inputs used by management in determining fair value of embedded derivatives
Risk margin for uncertainty in cash flows	0.80%
Minimum
Unobservable inputs used by management in determining fair value of embedded derivatives
Fair Value Input Adjustment for Insurance Subsidiary’s Credit Risk	0.20%
Surrenders	3.00%
Partial surrenders	2.00%
Annuitizations	0.10%
Deaths	1.50%
Budgeted option costs	2.50%
Maximum
Unobservable inputs used by management in determining fair value of embedded derivatives
Fair Value Input Adjustment for Insurance Subsidiary’s Credit Risk	2.40%
Surrenders	22.00%
Partial surrenders	9.00%
Annuitizations	1.00%
Deaths	10.60%
Budgeted option costs	3.30%

Fair Value Measurements - Changes in balances of Level 3 financial assets carried at fair value (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	$ 2,290	$ 3,521	$ 2,290	$ 1,762
Total realized/unrealized gains (losses) included in Net earnings		(10)	(21)	(39)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		75	(39)	17
Purchases and issuances		1,578	1,828	1,079
Sales and settlements		(565)	(482)	(437)
Transfer into Level 3		244	270	289
Transfer out of Level 3		(1,002)	(325)	(381)
Financial assets, Ending Balance		3,841	3,521	2,290
Fixed maturities
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	2,102	3,164	2,102	1,559
Total realized/unrealized gains (losses) included in Net earnings		0	(22)	(7)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		75	(39)	7
Purchases and issuances		1,525	1,667	1,032
Sales and settlements		(563)	(476)	(421)
Transfer into Level 3		188	240	289
Transfer out of Level 3		(1,002)	(308)	(357)
Financial assets, Ending Balance		3,387	3,164	2,102
U.S. government agency
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	8	9	8	8
Total realized/unrealized gains (losses) included in Net earnings		0	0	0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		7	0	0
Purchases and issuances		0	0	0
Sales and settlements		(1)	0	0
Transfer into Level 3		0	1	0
Transfer out of Level 3		0	0	0
Financial assets, Ending Balance		15	9	8
State and municipal
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	148	59	148	140
Total realized/unrealized gains (losses) included in Net earnings		0	0	0
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		5	(2)	2
Purchases and issuances		0	0	0
Sales and settlements		(3)	(3)	(2)
Transfer into Level 3		55	0	10
Transfer out of Level 3		(11)	(84)	(2)
Financial assets, Ending Balance		105	59	148
Residential MBS
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	122	197	122	190
Total realized/unrealized gains (losses) included in Net earnings		6	(9)	(4)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		(3)	(4)	2
Purchases and issuances		0	0	1
Sales and settlements		(20)	(21)	(40)
Transfer into Level 3		48	130	44
Transfer out of Level 3		(55)	(21)	(71)
Financial assets, Ending Balance		173	197	122
Commercial MBS
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	36	56	36	25
Total realized/unrealized gains (losses) included in Net earnings		2	0	2
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		0	0	0
Purchases and issuances		0	20	15
Sales and settlements		(12)	0	(10)
Transfer into Level 3		4	0	4
Transfer out of Level 3		(15)	0	0
Financial assets, Ending Balance		35	56	36
Collateralized loan obligations
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	200	116	200	174
Total realized/unrealized gains (losses) included in Net earnings		(5)	(3)	(1)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		5	(13)	(1)
Purchases and issuances		0	35	55
Sales and settlements		0	(20)	(27)
Transfer into Level 3		28	3	0
Transfer out of Level 3		(129)	(86)	0
Financial assets, Ending Balance		15	116	200
Other asset-backed securities
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	544	731	544	310
Total realized/unrealized gains (losses) included in Net earnings		0	0	1
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		6	(2)	2
Purchases and issuances		787	391	355
Sales and settlements		(192)	(228)	(105)
Transfer into Level 3		23	79	202
Transfer out of Level 3		(69)	(53)	(221)
Financial assets, Ending Balance		1,286	731	544
Corporate and other
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	1,044	1,996	1,044	712
Total realized/unrealized gains (losses) included in Net earnings		(3)	(10)	(5)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		55	(18)	2
Purchases and issuances		738	1,221	606
Sales and settlements		(335)	(204)	(237)
Transfer into Level 3		30	27	29
Transfer out of Level 3		(723)	(64)	(63)
Financial assets, Ending Balance		1,758	1,996	1,044
Equity securities
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	165	336	165	174
Total realized/unrealized gains (losses) included in Net earnings		(5)	9	(21)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		0	0	10
Purchases and issuances		52	155	38
Sales and settlements		(2)	(6)	(16)
Transfer into Level 3	29	56	30	0
Transfer out of Level 3		0	(17)	(20)
Financial assets, Ending Balance		437	336	165
Assets of MIE
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Financial assets, Beginning Balance	$ 23	21	23	29
Total realized/unrealized gains (losses) included in Net earnings		(5)	(8)	(11)
Total realized/unrealized gains (losses) included in other comprehensive income (loss)		0	0	0
Purchases and issuances		1	6	9
Sales and settlements		0	0	0
Transfer into Level 3		0	0	0
Transfer out of Level 3		0	0	(4)
Financial assets, Ending Balance		$ 17	$ 21	$ 23

Fair Value Measurements - Changes in balances of Level 3 financial liabilities carried at fair value (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

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

Financial liabilities, Beginning Balance

$ (2,720)

^[1]

$ (2,542)

^[2]

$ (1,759)

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

(919)

204

(589)

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

Purchases and issuances

(333)

(545)

(300)

Sales and settlements

242

163

106

Transfer into Level 3

Transfer out of Level 3

Financial liabilities, Ending Balance

(3,730)

^[3]

(2,720)

^[1]

(2,542)

^[2]

Embedded derivatives

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

Financial liabilities, Beginning Balance

(2,720)

(2,542)

(1,759)

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

(919)

^[4]

204

^[5]

(589)

^[6]

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

Purchases and issuances

(333)

(545)

(300)

Sales and settlements

242

163

106

Transfer into Level 3

Transfer out of Level 3

Financial liabilities, Ending Balance

$ (3,730)

$ (2,720)

$ (2,542)

[1]	As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets.
[2]	As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets.
[3]	As previously discussed, these tables exclude the portion of MIE liabilities allocated to Level 3, which are derived from the fair value of the MIE assets.
[4]	Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes a favorable adjustment related to the unlocking of actuarial assumptions of $181 million in 2019.
[5]	Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $44 million in 2018.
[6]	Total realized/unrealized gains (losses) included in net earnings for the embedded derivatives includes losses related to the unlocking of actuarial assumptions of $25 million in 2017.

Fair Value Measurements - The carrying value and fair value of financial instruments (Details) - USD ($)
$ in Millions

Dec. 31, 2019

Dec. 31, 2018

Financial assets:

Mortgage loans

$ 1,329

$ 1,068

Policy loans

164

174

Financial liabilities:

Long-term debt

1,473

1,302

Level 1

Financial assets:

Cash and cash equivalents

2,314

1,515

Mortgage loans

Policy loans

Total financial assets not accounted for at fair value

2,314

1,515

Financial liabilities:

Annuity benefits accumulated

^[1]

Long-term debt

Total financial liabilities not accounted for at fair value

Level 2

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

1,619

1,228

Total financial liabilities not accounted for at fair value

1,619

1,228

Level 3

Financial assets:

Cash and cash equivalents

Mortgage loans

1,346

1,056

Policy loans

164

174

Total financial assets not accounted for at fair value

1,510

1,230

Financial liabilities:

Annuity benefits accumulated

^[1]

40,182

34,765

Long-term debt

Total financial liabilities not accounted for at fair value

40,185

34,768

Carrying Value

Financial assets:

Cash and cash equivalents

2,314

1,515

Mortgage loans

1,329

1,068

Policy loans

164

174

Total financial assets not accounted for at fair value

3,807

2,757

Financial liabilities:

Annuity benefits accumulated

^[1]

40,159

36,384

Long-term debt

1,473

1,302

Total financial liabilities not accounted for at fair value

41,632

37,686

Fair Value

Financial assets:

Cash and cash equivalents

2,314

1,515

Mortgage loans

1,346

1,056

Policy loans

164

174

Total financial assets not accounted for at fair value

3,824

2,745

Financial liabilities:

Annuity benefits accumulated

^[1]

40,182

34,765

Long-term debt

1,622

1,231

Total financial liabilities not accounted for at fair value

$ 41,804

$ 35,996

[1]	Excludes $247 million and $232 million of life contingent annuities in the payout phase at December 31, 2019 and 2018, respectively.

Investments - Narrative (Details) $ in Millions	12 Months Ended
Investments - Narrative (Details) $ in Millions	Dec. 31, 2019 USD ($) security	Dec. 31, 2018 USD ($)	Dec. 31, 2017 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	74.00%
Percentage (based on fair value) of available for sale fixed maturities that are in an unrealized loss position and rated investment grade	93.00%
Other than temporary impairment charges	$ 19	$ 19	$ 73
Average life of CLOs and Other ABS	4 years
Average life of MBS	4 years 6 months
Residential MBS
Investment [Line Items]
Non-credit related portion of other-than-temporary impairment charges taken for securities still owned	$ 118	140
Fixed maturities, Gross Unrealized, Losses	(5)	(9)
Other than temporary impairment charges	1	6	1
Collateralized loan obligations
Investment [Line Items]
Fixed maturities, Gross Unrealized, Losses	(37)	(73)
Other than temporary impairment charges	17
Corporate bond securities
Investment [Line Items]
Other than temporary impairment charges	11
Securities with non-credit other-than-temporary impairment charges
Investment [Line Items]
Gross Unrealized, Gains	114	119
Gross Unrealized, Losses	(1)	(4)
Fixed maturities
Investment [Line Items]
Fixed maturities, Gross Unrealized, Losses	$ (88)	(603)
Number of available for sale securities in an unrealized loss position \| security	649
Other than temporary impairment charges	$ 29	26	20
Available-for-sale Securities, Gross Realized Gains	35	22	43
Available-for-sale Securities, Gross Realized Losses	(19)	(14)	(20)
Fixed maturities excluding residential MBS
Investment [Line Items]
Other than temporary impairment charges		20	19
Other investments
Investment [Line Items]
Other than temporary impairment charges			4
Equity securities
Investment [Line Items]
Other than temporary impairment charges	$ 0	$ 0	64
Available-for-sale Securities, Gross Realized Gains			87
Available-for-sale Securities, Gross Realized Losses			(17)
Equity securities \| Available-for-sale securities
Investment [Line Items]
Other than temporary impairment charges			$ 64

Investments - Available for sale fixed maturities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, Available for sale, Amortized Cost	$ 44,524	$ 41,837
Available for sale (AFS) fixed maturities	46,505	41,997
Total fixed maturities
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, Available for sale, Amortized Cost	44,524	41,837
Fixed maturities, Available for sale, Gross Unrealized, Gains	2,069	763
Fixed maturities, Available for sale, Gross Unrealized, Losses	(88)	(603)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	1,981	160
Available for sale (AFS) fixed maturities	46,505	41,997
U.S. Government and government agencies
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, Available for sale, Amortized Cost	199	235
Fixed maturities, Available for sale, Gross Unrealized, Gains	10	1
Fixed maturities, Available for sale, Gross Unrealized, Losses	0	(3)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	10	(2)
Available for sale (AFS) fixed maturities	209	233
States, municipalities and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, Available for sale, Amortized Cost	6,604	6,825
Fixed maturities, Available for sale, Gross Unrealized, Gains	363	169
Fixed maturities, Available for sale, Gross Unrealized, Losses	(4)	(55)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	359	114
Available for sale (AFS) fixed maturities	6,963	6,939
Foreign government
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, Available for sale, Amortized Cost	170	140
Fixed maturities, Available for sale, Gross Unrealized, Gains	3	2
Fixed maturities, Available for sale, Gross Unrealized, Losses	(1)	0
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	2	2
Available for sale (AFS) fixed maturities	172	142
Residential MBS
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, Available for sale, Amortized Cost	2,900	2,476
Fixed maturities, Available for sale, Gross Unrealized, Gains	265	277
Fixed maturities, Available for sale, Gross Unrealized, Losses	(5)	(9)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	260	268
Available for sale (AFS) fixed maturities	3,160	2,744
Commercial MBS
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, Available for sale, Amortized Cost	896	905
Fixed maturities, Available for sale, Gross Unrealized, Gains	31	17
Fixed maturities, Available for sale, Gross Unrealized, Losses	0	(2)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	31	15
Available for sale (AFS) fixed maturities	927	920
Collateralized loan obligations
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, Available for sale, Amortized Cost	4,307	4,350
Fixed maturities, Available for sale, Gross Unrealized, Gains	10	1
Fixed maturities, Available for sale, Gross Unrealized, Losses	(37)	(73)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	(27)	(72)
Available for sale (AFS) fixed maturities	4,280	4,278
Other asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, Available for sale, Amortized Cost	6,992	5,431
Fixed maturities, Available for sale, Gross Unrealized, Gains	156	129
Fixed maturities, Available for sale, Gross Unrealized, Losses	(20)	(27)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	136	102
Available for sale (AFS) fixed maturities	7,128	5,533
Corporate and other
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, Available for sale, Amortized Cost	22,456	21,475
Fixed maturities, Available for sale, Gross Unrealized, Gains	1,231	167
Fixed maturities, Available for sale, Gross Unrealized, Losses	(21)	(434)
Fixed maturities, Available for sale, Net Unrealized, Gains (Losses)	1,210	(267)
Available for sale (AFS) fixed maturities	$ 23,666	$ 21,208

Investments - Equity securities reported at fair value (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Debt and Equity Securities, FV-NI [Line Items]
Equity securities	$ 1,937	$ 1,814
Common stocks
Debt and Equity Securities, FV-NI [Line Items]
Equity securities, at cost	1,164	1,241
Equity securities	1,283	1,148
Equity securities, fair value in excess of cost	119	(93)
Perpetual preferred stocks
Debt and Equity Securities, FV-NI [Line Items]
Equity securities, at cost	640	705
Equity securities	654	666
Equity securities, fair value in excess of cost	14	(39)
Equity securities
Debt and Equity Securities, FV-NI [Line Items]
Equity securities, at cost	1,804	1,946
Equity securities	1,937	1,814
Equity securities, fair value in excess of cost	$ 133	$ (132)

Investments - Gross unrealized losses on securities by investment category and length of time that have been in a continuous unrealized loss position (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Fixed maturities
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (44)	$ (411)
Fair Value - Less than twelve months	$ 4,461	$ 17,766
Fair Value as % of Cost - Less than twelve months	99.00%	98.00%
Unrealized Loss - Twelve months or more	$ (44)	$ (192)
Fair Value - Twelve months or more	$ 2,224	$ 3,902
Fair Value as % of Cost - Twelve months or more	98.00%	95.00%
U.S. Government and government agencies
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ 0	$ 0
Fair Value - Less than twelve months	$ 16	$ 41
Fair Value as % of Cost - Less than twelve months	100.00%	100.00%
Unrealized Loss - Twelve months or more	$ 0	$ (3)
Fair Value - Twelve months or more	$ 11	$ 120
Fair Value as % of Cost - Twelve months or more	100.00%	98.00%
States, municipalities and political subdivisions
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (3)	$ (23)
Fair Value - Less than twelve months	$ 254	$ 1,497
Fair Value as % of Cost - Less than twelve months	99.00%	98.00%
Unrealized Loss - Twelve months or more	$ (1)	$ (32)
Fair Value - Twelve months or more	$ 82	$ 902
Fair Value as % of Cost - Twelve months or more	99.00%	97.00%
Foreign government
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (1)	$ 0
Fair Value - Less than twelve months	$ 70	$ 18
Fair Value as % of Cost - Less than twelve months	99.00%	100.00%
Unrealized Loss - Twelve months or more	$ 0	$ 0
Fair Value - Twelve months or more	$ 0	$ 4
Fair Value as % of Cost - Twelve months or more	0.00%	100.00%
Residential MBS
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (4)	$ (4)
Fair Value - Less than twelve months	$ 509	$ 279
Fair Value as % of Cost - Less than twelve months	99.00%	99.00%
Unrealized Loss - Twelve months or more	$ (1)	$ (5)
Fair Value - Twelve months or more	$ 69	$ 139
Fair Value as % of Cost - Twelve months or more	99.00%	97.00%
Commercial MBS
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ 0	$ (1)
Fair Value - Less than twelve months	$ 17	$ 147
Fair Value as % of Cost - Less than twelve months	100.00%	99.00%
Unrealized Loss - Twelve months or more	$ 0	$ (1)
Fair Value - Twelve months or more	$ 0	$ 30
Fair Value as % of Cost - Twelve months or more	0.00%	97.00%
Collateralized loan obligations
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (11)	$ (61)
Fair Value - Less than twelve months	$ 1,284	$ 3,540
Fair Value as % of Cost - Less than twelve months	99.00%	98.00%
Unrealized Loss - Twelve months or more	$ (26)	$ (12)
Fair Value - Twelve months or more	$ 1,728	$ 197
Fair Value as % of Cost - Twelve months or more	99.00%	94.00%
Other asset-backed securities
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (12)	$ (16)
Fair Value - Less than twelve months	$ 1,211	$ 1,866
Fair Value as % of Cost - Less than twelve months	99.00%	99.00%
Unrealized Loss - Twelve months or more	$ (8)	$ (11)
Fair Value - Twelve months or more	$ 123	$ 432
Fair Value as % of Cost - Twelve months or more	94.00%	98.00%
Corporate and other
Available-for-sale securities in a continuous unrealized loss position
Unrealized Loss - Less than twelve months	$ (13)	$ (306)
Fair Value - Less than twelve months	$ 1,100	$ 10,378
Fair Value as % of Cost - Less than twelve months	99.00%	97.00%
Unrealized Loss - Twelve months or more	$ (8)	$ (128)
Fair Value - Twelve months or more	$ 211	$ 2,078
Fair Value as % of Cost - Twelve months or more	96.00%	94.00%

Investments - Credit portion of other-than-temporary impairments on fixed maturities for which the non-credit portion of an impairment has been recognized in OCI (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance at January 1	$ 142	$ 145	$ 153
Additional credit impairments on:
Previously impaired securities	1	1	1
Securities without prior impairments	0	1	3
Reductions due to sales or redemptions	(9)	(5)	(12)
Balance at December 31	$ 134	$ 142	$ 145

Investments - Scheduled maturities of available for sale fixed maturities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value Percent, Fiscal Year Maturity [Abstract]
Average life of CLOs and Other ABS	4 years
Average life of MBS	4 years 6 months
Securities With Non-Credit Other Than Temporary Impairment Charges [Member]
Fair Value Percent, Fiscal Year Maturity [Abstract]
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	$ (1)	$ (4)
Fixed maturities
Amortized Cost Basis, Fiscal Year Maturity [Abstract]
One year or less	1,764
After one year through five years	10,613
After five years through ten years	13,513
After ten years	3,539
Fixed maturities amortized cost, Subtotal	29,429
Collateralized loan obligations and other ABS (average life of approximately 4 years)	11,299
MBS (average life of approximately 4-1/2 years)	3,796
Amortized Cost	44,524
Fair Value, Fiscal Year Maturity [Abstract]
One year or less	1,793
After one year through five years	11,044
After five years through ten years	14,419
After ten years	3,754
Fixed maturities fair value, Subtotal	31,010
Collateralized loan obligations and other ABS (average life of approximately 4 years)	11,408
MBS (average life of approximately 4-1/2 years)	4,087
Fair Value	$ 46,505
Fair Value Percent, Fiscal Year Maturity [Abstract]
One year or less	4.00%
After one year through five years	24.00%
After five years through ten years	31.00%
After ten years	8.00%
Fixed maturities fair value, Subtotal, Percent	67.00%
Collateralized loan obligations and other ABS (average life of approximately 4 years)	24.00%
MBS (average life of approximately 4-1/2 years)	9.00%
Fair value, Total, Percent	100.00%

Investments - Components of the net unrealized gain on securities that is included in AOCI in the Balance Sheet (Details) - USD ($)
$ in Millions

Dec. 31, 2019

Dec. 31, 2018

Unrealized gain on:

Pretax

$ 1,091

$ 105

Deferred Tax

(229)

(22)

Net

862

Total fixed maturities

Unrealized gain on:

Pretax

1,981

160

Deferred Tax

(416)

(34)

Net

1,565

126

Fixed maturities — annuity segment

Unrealized gain on:

Pretax

^[1]

1,611

101

Deferred Tax

^[1]

(338)

(21)

Net

^[1]

1,273

Fixed maturities — all other

Unrealized gain on:

Pretax

370

Deferred Tax

(78)

(13)

Net

292

Deferred policy acquisition costs — annuity segment

Unrealized gain on:

Pretax

(681)

(42)

Deferred Tax

143

Net

(538)

(33)

Annuity benefits accumulated

Unrealized gain on:

Pretax

(219)

(14)

Deferred Tax

Net

(173)

(11)

Life, accident and health reserves

Unrealized gain on:

(1)

(1)

Unrealized gain on:

Pretax

Deferred Tax

(2)

Net

$ 9

$ 1

[1]	Net unrealized gains on fixed maturity investments supporting AFG’s annuity benefits accumulated.

Investments - Schedule of sources of net investment income (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Net Investment Income [Line Items]

Gross investment income

$ 2,325

$ 2,116

$ 1,852

Investment expenses

(22)

(21)

Net investment income

2,303

2,094

1,831

Fixed maturities

Net Investment Income [Line Items]

Gross investment income

1,915

1,742

1,607

Equity in earnings of partnerships and similar investments

Net Investment Income [Line Items]

Gross investment income

154

161

Other

Net Investment Income [Line Items]

Gross investment income

132

112

102

Investment income | Equity securities

Net Investment Income [Line Items]

Gross investment income

Accounting Standards Update 2016-01 | Equity securities

Net Investment Income [Line Items]

Gross investment income

^[1]

$ 39

$ 22

$ 6

[1]

Investments - Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

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

Realized before impairments

$ 306

$ (247)

$ 78

Realized - impairments

(19)

(73)

Total realized gains (losses) on securities

287

(266)

Net of tax

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

Realized before impairments

242

(195)

Realized - impairments

(15)

(48)

Total realized gains (losses) on securities

227

(210)

Change in unrealized

779

(536)

436

Total pretax

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

Realized before impairments

306

(247)

Realized - impairments

(19)

(73)

Total realized gains (losses) on securities

287

(266)

Change in unrealized

986

(679)

441

Fixed maturities

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

Realized before impairments

Realized - impairments

(29)

(26)

(20)

Total realized gains (losses) on securities

(3)

(20)

(3)

Change in unrealized

1,821

(1,181)

532

Equity securities

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

Realized before impairments

277

(265)

Realized - impairments

(64)

Total realized gains (losses) on securities

277

(265)

Change in unrealized

128

Mortgage loans and other investments

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

Realized before impairments

(6)

Realized - impairments

(4)

Total realized gains (losses) on securities

(10)

Change in unrealized

Other, Including DPAC and reserves on annuities and long-term care

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

Realized before impairments

^[1]

(3)

Realized - impairments

^[1]

Total realized gains (losses) on securities

^[1]

Change in unrealized

^[1]

(835)

502

(219)

Effects Of Tax Cuts And Jobs Act Of 2017

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

Realized before impairments

Realized - impairments

Total realized gains (losses) on securities

Change in unrealized

149

Other tax effects

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

Realized before impairments

(27)

Realized - impairments

Total realized gains (losses) on securities

(2)

Change in unrealized

(154)

Total tax effects

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

Realized before impairments

(64)

(27)

Realized - impairments

Total realized gains (losses) on securities

(60)

(2)

Change in unrealized

$ (207)

$ 143

$ (5)

[1]	Primarily adjustments to deferred policy acquisition costs and reserves related to the annuity business.

Investments - Holding gains (losses) on equity securities still held (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Holding Gains (Losses) on Equity Securities Still Held [Line Items]
Realized gains (losses) on securities	$ 287	$ (266)	$ 5
Gross investment income	2,325	2,116	1,852
Equity securities
Holding Gains (Losses) on Equity Securities Still Held [Line Items]
Realized gains (losses) on securities	277	(265)	$ 6
Accounting Standards Update 2016-01 \| Equity securities still owned \| Equity securities
Holding Gains (Losses) on Equity Securities Still Held [Line Items]
Net holding gains (losses) on equity securities	207	(257)
Accounting Standards Update 2016-01 \| Realized gains (losses) on securities \| Equity securities still owned \| Equity securities
Holding Gains (Losses) on Equity Securities Still Held [Line Items]
Realized gains (losses) on securities	169	(279)
Accounting Standards Update 2016-01 \| Investment income \| Equity securities still owned \| Equity securities
Holding Gains (Losses) on Equity Securities Still Held [Line Items]
Gross investment income	$ 38	$ 22

Investments - Gross realized gains and losses on available for sale fixed maturity security investment transactions (Details) - Fixed maturities - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Gross realized gains and losses on the sale of available for sale fixed maturity security investments
Gross gains	$ 35	$ 22	$ 43
Gross losses	$ (19)	$ (14)	$ (20)

Derivatives - Narrative (Details)	3 Months Ended	12 Months Ended
Derivatives - Narrative (Details)	Sep. 30, 2019 USD ($) swap	Dec. 31, 2019 USD ($) swap	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jun. 30, 2019 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Carrying value of collateral received to support purchased call options		$ 577,000,000	$ 103,000,000
Interest rate swaps \| Cash Flow Hedges \| Contract termination
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Notional Amount	$ 78,000,000	$ 100,000,000			$ 138,000,000
Number of interest rate swaps terminated \| swap		2
Number of interest rate swaps expired \| swap	1
Not Designated as Hedging Instrument \| Fixed-indexed and variable-indexed annuities (embedded derivative) \| Annuity benefits
Derivative Instruments, Gain (Loss) [Line Items]
The portion of the change in fair value of the embedded derivative related to the unlocking of actuarial assumptions		$ 181,000,000	(44,000,000)	$ (25,000,000)
Designated as Hedging Instrument \| Interest rate swaps \| Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Number of interest rate swaps designated and qualifying as a cash flow hedges \| swap		13
Derivative, Notional Amount		$ 1,980,000,000	2,350,000,000
Gain (loss) reclassified from AOCI into net investment income		3,000,000	(3,000,000)	$ 6,000,000
Collateral receivable supporting interest rate swaps		20,000,000	135,000,000
Designated as Hedging Instrument \| Interest rate swaps \| Cash Flow Hedges \| Other assets
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value		50,000,000	16,000,000
Designated as Hedging Instrument \| Interest rate swaps \| Cash Flow Hedges \| Other liabilities
Derivative Instruments, Gain (Loss) [Line Items]
Net derivatives, at fair value		$ (5,000,000)	$ (46,000,000)

Derivatives - Derivatives that do not qualify for hedge accounting under GAAP included in the Balance Sheet at fair value (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	$ 1,026	$ 293
Derivative liability, at fair value	3,735	2,723
MBS with embedded derivatives \| Fixed maturities
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	102	109
Public company warrants \| Equity securities
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	0	0
Fixed-indexed and variable-indexed annuities (embedded derivative) \| Annuity benefits accumulated
Derivatives included in AFG' s Balance Sheet at fair value
Derivative liability, at fair value	3,730	2,720
Equity index call options \| Equity index call options
Derivatives included in AFG' s Balance Sheet at fair value
Derivative asset, at fair value	924	184
Equity index put options \| Other liabilities
Derivatives included in AFG' s Balance Sheet at fair value
Derivative liability, at fair value	1	1
Reinsurance contract (embedded derivative) \| Other liabilities
Derivatives included in AFG' s Balance Sheet at fair value
Derivative liability, at fair value	$ 4	$ 2

Derivatives - Gain (loss) included in the Statement of Earnings for changes in the fair value of derivatives that do not qualify for hedge accounting (Details) - Not Designated as Hedging Instrument - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

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

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

$ (106)

$ (103)

MBS with embedded derivatives | Realized gains (losses) on securities

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

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

(7)

(6)

Public company warrants | Realized gains (losses) on securities

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

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

(1)

(3)

Fixed-indexed and variable-indexed annuities (embedded derivative) | Annuity benefits

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

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

^[1]

(919)

204

(589)

Equity index call options | Annuity benefits

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

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

804

(298)

494

Equity index put options | Annuity benefits

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

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

(1)

Reinsurance contract (embedded derivative) | Net investment income

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

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

$ (2)

$ 2

$ (2)

[1]	The change in fair value of the embedded derivative includes a favorable adjustment related to unlocking of actuarial assumptions of $181 million in 2019 and losses of $44 million in 2018 and $25 million in 2017.

Deferred Policy Acquisition Costs - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Deferred Policy Acquisition Costs Disclosures [Abstract]
Accumulated amortization of present value of future profits	$ 154	$ 148
Approximate annual rate of decrease in present value of future profits during next five years	12.50%

Deferred Policy Acquisition Costs - Progression of deferred policy acquisition costs (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

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

$ 1,682

$ 1,216

$ 1,239

Deferred policy acquisition costs and present value of future profits, additions

952

940

817

Deferred policy acquisition costs and present value of future profits, periodic amortization

(860)

(908)

(744)

Deferred policy acquisition costs and present value of future profits, annuity unlocking

(77)

Deferred policy acquisition costs and present value of future profits, change included in realized gains

Deferred policy acquisition costs and present value of future profits, foreign currency translation

(2)

Deferred policy acquisition costs and present value of future profits, other

Deferred policy acquisition costs and present value of future profits, change in unrealized

(669)

392

(157)

Deferred policy acquisition costs and present value of future profits, ending balance

1,037

1,682

1,216

Property and casualty insurance

Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]

Deferred policy acquisition costs, beginning balance

299

270

238

Deferred policy acquisition costs, additions

744

675

588

Deferred policy acquisition costs, periodic amortization

(721)

(644)

(556)

Deferred policy acquisition costs, foreign currency translation

(2)

Deferred policy acquisition costs, ending balance

322

299

270

Annuity and Other

Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]

Deferred policy acquisition costs, beginning balance

1,285

1,217

1,110

Deferred policy acquisition costs, additions

206

263

225

Deferred policy acquisition costs, periodic amortization

(120)

(238)

(161)

Deferred policy acquisition costs, annuity unlocking

(76)

Deferred policy acquisition costs, change included in realized gains

Deferred policy acquisition costs, ending balance

1,303

1,285

1,217

Movement in Deferred Sales Inducements [Roll Forward]

Deferred sales inducements, beginning balance

102

110

Deferred sales inducements, additions

Deferred sales inducements, periodic amortization

(13)

(19)

Deferred sales inducements, annuity unlocking

(1)

Deferred sales inducements, change included in realized gains

Deferred sales inducements, ending balance

102

Movement in Present Value of Future Insurance Profits [Roll Forward]

Present value of future profits, beginning balance

Present value of future profits, periodic amortization

(6)

(7)

(8)

Present value of future profits, annuity unlocking

Present value of future profits, other

Present value of future profits, ending balance

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

^[1]

(30)

(422)

(265)

Unrealized investment gains (losses), change in unrealized

^[1]

(669)

392

(157)

Unrealized investment gains (losses), ending balance

^[1]

(699)

(30)

(422)

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

1,383

946

1,001

Deferred policy acquisition costs and present value of future profits, additions

208

265

229

Deferred policy acquisition costs and present value of future profits, periodic amortization

(139)

(264)

(188)

Deferred policy acquisition costs and present value of future profits, annuity unlocking

(77)

Deferred policy acquisition costs and present value of future profits, change included in realized gains

Deferred policy acquisition costs and present value of future profits, other

Deferred policy acquisition costs and present value of future profits, change in unrealized

(669)

392

(157)

Deferred policy acquisition costs and present value of future profits, ending balance

715

1,383

946

Excluding Unrealized Gains | Annuity and Other

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

1,413

1,368

1,266

Deferred policy acquisition costs and present value of future profits, change in unrealized

Deferred policy acquisition costs and present value of future profits, ending balance

$ 1,414

$ 1,413

$ 1,368

[1]	Adjustments to DPAC related to net unrealized gains/losses on securities and cash flow hedges.

Managed Investment Entities - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) collateralizedloanobligation	Dec. 31, 2018 USD ($) collateralizedloanobligation	Dec. 31, 2017 USD ($) collateralizedloanobligation
Variable Interest Entity [Line Items]
Percentage of investment of most subordinate debt tranche, Minimum	15.00%
Percentage of investment of most subordinate debt tranche, Maximum	60.90%
Number of collateralized loan obligation entities \| collateralizedloanobligation	11
Proceeds received by subsidiaries related to sales and redemptions of managed investment entities liabilities		$ 45	$ 103
Face amount of managed investment entities liabilities purchased by subsidiaries after issuance date		7	71
Amount paid by subsidiaries to purchase managed investment entities liabilities after issuance date		$ 7	$ 71
Number of collateralized loan obligation entities formed during the period \| collateralizedloanobligation		1	2
Number of collateralized loan obligation entities that were substantially liquidated during the period \| collateralizedloanobligation		1	2
Difference between aggregate unpaid principal balance and fair value of CLOs' fixed maturity investments	$ 146	$ 232
Difference between aggregate unpaid principal balance and fair value of CLOs' debt	129	241
Carrying amount of CLO loans in default	10
Aggregate unpaid principal balance of CLO loans in default	25	0
Available for sale (AFS) fixed maturities	46,505	41,997
Variable interest entity, primary beneficiary
Variable Interest Entity [Line Items]
Aggregate fair value of investment in collateralized loan obligations	165	188	$ 215
New collateralized loan obligation entities
Variable Interest Entity [Line Items]
Face value of liabilities issued by managed investment entities on issuance date		463	865
Face amount of managed investment entities liabilities purchased by subsidiaries at issuance date		31	$ 48
Subordinated debt obligations \| Variable interest entity, primary beneficiary
Variable Interest Entity [Line Items]
Aggregate fair value of investment in collateralized loan obligations	102
Collateralized loan obligations
Variable Interest Entity [Line Items]
Available for sale (AFS) fixed maturities	4,280	4,278
Collateralized loan obligations \| Managed by third parties
Variable Interest Entity [Line Items]
Available for sale (AFS) fixed maturities	4,280	$ 4,280
Maximum
Variable Interest Entity [Line Items]
Proceeds received by subsidiaries related to sales and redemptions of managed investment entities liabilities	$ 1

Managed Investment Entities - Selected financial information related to CLOs (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

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

Assets

^[1]

$ 80

$ (189)

$ (8)

Liabilities

^[1]

(110)

168

Management fees paid to AFG

CLO earnings (losses) attributable to AFG Shareholders

^[2]

Variable interest entity, primary beneficiary

Variable Interest Entity [Line Items]

Investment in CLO tranches

$ 165

$ 188

$ 215

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

Goodwill and Other Intangibles - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill acquired during period	$ 8		$ 8
Amortizable intangible assets related to property and casualty insurance acquisitions	54	$ 43	54
Accumulated amortization	$ 39	50	39
Amortization of intangible assets		$ 11	$ 9	$ 8
Weighted average useful life of finite-lived intangible assets acquired		4 years
Future amortization of intangibles in next year		$ 12
Future amortization of intangibles in year two		6
Future amortization of intangibles in year three		4
Future amortization of intangibles in year four		4
Future amortization of intangibles in year five		4
Future amortization of intangibles after year five		$ 13

Goodwill and Other Intangibles - Changes in the carrying value of goodwill (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2017	Dec. 31, 2016
Changes in the carrying value of goodwill by reporting segment
Goodwill, Beginning balance	$ 207	$ 207	$ 207	$ 199	$ 199
Goodwill, acquisition of subsidiary	8	8
Goodwill, Ending balance	207	207
Property and Casualty
Changes in the carrying value of goodwill by reporting segment
Goodwill, Beginning balance	176	176	176	168	168
Goodwill, acquisition of subsidiary		8
Goodwill, Ending balance	176	176
Annuity
Changes in the carrying value of goodwill by reporting segment
Goodwill, Beginning balance	31	31	$ 31	$ 31	$ 31
Goodwill, acquisition of subsidiary		0
Goodwill, Ending balance	$ 31	$ 31

Long-Term Debt - Narrative (Details) - USD ($)	12 Months Ended
Long-Term Debt - Narrative (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Mar. 31, 2019
Long-term Debt, Fiscal Year Maturity [Abstract]
Scheduled principal payments on debt in next year	$ 0
Scheduled principal payments on debt in year two	0
Scheduled principal payments on debt in year three	0
Scheduled principal payments on debt in year four	0
Scheduled principal payments on debt in year five	0
Cash interest payments on long-term debt	65,000,000	$ 59,000,000	$ 85,000,000
AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Revolving credit line	500,000,000
Amount borrowed under AFG revolving credit facility	$ 0	$ 0
Interest rate description for revolving credit facility	1.00% to 1.875% (currently 1.375%) over LIBOR
LIBOR \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	1.375%
LIBOR \| AFG \| Minimum
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	1.00%
LIBOR \| AFG \| Maximum
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on revolving debt facility	1.875%
Senior Notes \| 4.50% Senior Notes due June 2047 \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on debt instruments	4.50%
Senior Notes \| 3.50% Senior Notes due August 2026 \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on debt instruments	3.50%
Subordinated Debt \| 5.125% Subordinated Debentures due December 2059 \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Senior Notes, aggregate principal amount	$ 200,000,000
Interest rate on debt instruments	5.125%
Subordinated Debt \| 6% Subordinated Debentures due November 2055 \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on debt instruments	6.00%
Subordinated Debt \| 5.875% Subordinated Debentures due March 2059 \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Senior Notes, aggregate principal amount				$ 125,000,000
Interest rate on debt instruments	5.875%			5.875%
Subordinated Debt \| 6-1/4% Subordinated Debentures due September 2054 \| AFG
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate on debt instruments	6.25%
Senior Notes, amount of the original debt instrument that was redeemed	$ 150,000,000

Long-Term Debt - Schedule of long-term debt (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Summary of Carrying value of long-term debt
Principal	$ 1,493	$ 1,318
Discount and Issue Costs	(20)	(16)
Carrying Value	1,473	1,302
AFG
Summary of Carrying value of long-term debt
Carrying Value	1,473	1,302
Senior Notes \| AFG
Summary of Carrying value of long-term debt
Principal	1,018	1,018
Discount and Issue Costs	(5)	(6)
Carrying Value	1,013	1,012
Senior Notes \| 4.50% Senior Notes due June 2047 \| AFG
Summary of Carrying value of long-term debt
Principal	590	590
Discount and Issue Costs	(2)	(2)
Carrying Value	588	588
Senior Notes \| 3.50% Senior Notes due August 2026 \| AFG
Summary of Carrying value of long-term debt
Principal	425	425
Discount and Issue Costs	(3)	(4)
Carrying Value	422	421
Senior Notes \| Other \| AFG
Summary of Carrying value of long-term debt
Principal	3	3
Discount and Issue Costs	0	0
Carrying Value	3	3
Subordinated Debentures \| AFG
Summary of Carrying value of long-term debt
Principal	475	300
Discount and Issue Costs	(15)	(10)
Carrying Value	460	290
Subordinated Debentures \| 5.125% Subordinated Debentures due December 2059 \| AFG
Summary of Carrying value of long-term debt
Principal	200	0
Discount and Issue Costs	(6)	0
Carrying Value	194	0
Subordinated Debentures \| 6% Subordinated Debentures due November 2055 \| AFG
Summary of Carrying value of long-term debt
Principal	150	150
Discount and Issue Costs	(5)	(5)
Carrying Value	145	145
Subordinated Debentures \| 5.875% Subordinated Debentures due March 2059 \| AFG
Summary of Carrying value of long-term debt
Principal	125	0
Discount and Issue Costs	(4)	0
Carrying Value	121	0
Subordinated Debentures \| 6-1/4% Subordinated Debentures due September 2054 \| AFG
Summary of Carrying value of long-term debt
Principal	0	150
Discount and Issue Costs	0	(5)
Carrying Value	$ 0	$ 145

Leases - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jan. 01, 2019
Leases [Abstract]
Operating lease right-of-use asset	$ 158	$ 174
Deferred rent and lease incentives	22	24
Operating lease liability	$ 180	$ 198

Leases - Lease activity (Details) $ in Millions	12 Months Ended
Leases - Lease activity (Details) $ in Millions	Dec. 31, 2019 USD ($)
Leases [Abstract]
Operating leases	$ 46
Short-term leases	1
Total lease expense	$ 47

Leases - Other operating lease liability information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Leases [Abstract]
Cash paid for lease liabilities reported in operating cash flows	$ 49
Right-of-use assets obtained under new leases	$ 19

Leases - Undiscounted contractual maturities of operating lease liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jan. 01, 2019
Leases [Abstract]
Lease payments due in 2020	$ 46
Lease payments due in 2021	41
Lease payments due in 2022	32
Lease payments due in 2023	27
Lease payments due in 2024	20
Lease payments due thereafter	35
Total lease payments	201
Less: Future ease payments impact of discounting	(21)
Operating lease liability	$ 180	$ 198

Leases - Schedule of weighted-average remaing lease term and weighted-average discount rate (Details)	Dec. 31, 2019
Leases [Abstract]
Weighted-average remaining lease term	5 years 6 months
Weighted-average discount rate	4.10%

Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2017	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Common Stock vesting period				four-year
Rate of options exercisable per year, commencing one year after grant				20% per year commencing one year after grant
Duration of options expiration, after date of grant				10 years
Total intrinsic value of options exercised				$ 46	$ 57	$ 65
Cash received from the exercise of stock options				31	29	34
Tax benefit related to exercise of stock options				8	9	18
Total compensation expense related to stock incentive plans				23	23	30
Tax benefit related to compensation costs				13	13	27
Net of tax unrealized gains (losses) related to credit-only impaired securities	$ 68	$ 68		$ 55	$ 58	68
Cumulative effect of accounting change							$ 4
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect						$ 0
Accounting Standards Update 2018-02 \| Tax Cuts and Jobs Act of 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect	$ 145	$ 145
Equity securities \| Accounting Standards Update 2016-01
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative effect of accounting change							$ (221)
Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures				0	0	0
Common Stock reserved for issuance under stock incentive plans (shares)				4,500,000
Annual Equity Bonus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Other benefit plans, shares issued (shares)			45,804
Common Stock issued, fair value per share (USD per share)			$ 115.49
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Common Stock vested during period, fair value				$ 11	$ 10	$ 14
Unrecognized compensation expense related to equity-based awards that have yet to vest				$ 36
Weighted average period of cost expected to be recognized				2 years 4 months 24 days
Maximum \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to equity-based awards that have yet to vest				$ 1

Shareholders' Equity - Preferred stock authorized for issuance (Details)	Dec. 31, 2019 $ / shares shares
Voting Preferred Stock
Class of Stock [Line Items]
Preferred Stock, par value \| $ / shares	$ 0
Preferred Stock, shares authorized \| shares	12,500,000
Nonvoting Preferred Stock
Class of Stock [Line Items]
Preferred Stock, par value \| $ / shares	$ 0
Preferred Stock, shares authorized \| shares	12,500,000

Shareholders' Equity - Data relating to grants of restricted stock (Details) - Restricted Stock	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at January 1, 2019 \| shares	865,930
Granted \| shares	232,635
Vested \| shares	(167,326)
Forfeited \| shares	(11,304)
Outstanding at December 31, 2019 \| shares	919,935
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Average grant date fair value, Outstanding, Beginning balance \| $ / shares	$ 84.06
Average grant date fair value, Granted \| $ / shares	99.28
Average grant date fair value, Vested \| $ / shares	66.10
Average grant date fair value, Forfeited \| $ / shares	90.26
Average grant date fair value, Outstanding, Ending balance \| $ / shares	$ 91.10

Shareholders' Equity - Data for stock options issued under the stock incentive plans (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at January 1, 2019 \| shares	2,667,442
Exercised \| shares	(747,167)
Forfeited/Cancelled \| shares	(2,485)
Outstanding at December 31, 2019 \| shares	1,917,790
Options exercisable at December 31, 2019 \| shares	1,779,941
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Average exercise price, Beginning balance \| $ / shares	$ 48.20
Average exercise price, Exercised \| $ / shares	41.13
Average exercise price, Forfeited/Cancelled \| $ / shares	61.88
Average exercise price, Ending balance \| $ / shares	50.93
Average exercise price, Options exercisable \| $ / shares	$ 50.13
Average remaining contractual term, Options outstanding	3 years 8 months 12 days
Average remaining contractual term, Options exercisable	3 years 7 months 6 days
Aggregate intrinsic value, Options outstanding \| $	$ 113
Aggregate intrinsic value, Options exercisable \| $	$ 107

Shareholders' Equity - Progression of the components of accumulated other comprehensive income (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Jan. 01, 2018

Accumulated Other Comprehensive Income [Roll Forward]

AOCI beginning balance

$ 48

Other comprehensive income (loss), net of tax

815

$ (544)

$ 296

Cumulative effect of accounting change

$ 4

Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect

AOCI ending balance

863

Accumulated net investment gain (loss) including portion attributable to noncontrolling interest

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), unrealized holding gains on securities arising during the period, Pretax

997

(689)

456

Other comprehensive income (loss), unrealized holding gains on securities arising during the period, tax

(209)

145

(159)

Other comprehensive income (loss), unrealized holding gains on securities arising during the period, net of tax

788

(544)

297

Reclassification from accumulated other comprehensive income, pretax

^[1]

(11)

(15)

Reclassification from accumulated other comprehensive income, tax

^[1]

(2)

Reclassification from accumulated other comprehensive income, net of tax

(9)

(10)

Accumulated Other Comprehensive Income [Roll Forward]

Other comprehensive income (loss), pretax

986

(679)

441

Other comprehensive income (loss), tax

(207)

143

(154)

Other comprehensive income (loss), net of tax

779

(536)

287

Accumulated net investment gain (loss) attributable to noncontrolling interest

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), unrealized holding gains on securities arising during the period, net of tax

Reclassification from accumulated other comprehensive income, net of tax

^[1]

Accumulated Other Comprehensive Income [Roll Forward]

Other comprehensive income (loss), net of tax

Accumulated net investment gain (loss) attributable to parent

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), unrealized holding gains on securities arising during the period, net of tax

788

(544)

297

Reclassification from accumulated other comprehensive income, net of tax

(9)

(10)

Accumulated Other Comprehensive Income [Roll Forward]

AOCI beginning balance

^[2]

840

^[2]

404

Other comprehensive income (loss), net of tax

779

(536)

287

Cumulative effect of accounting change

(221)

^[3]

AOCI ending balance

^[2]

$ 840

862

840

Accumulated net gain (loss) from cash flow hedges including portion attributable to noncontrolling interest

Accumulated Other Comprehensive Income [Roll Forward]

Other comprehensive income (loss), pretax

(6)

Other comprehensive income (loss), tax

(8)

Other comprehensive income (loss), net of tax

(4)

Accumulated net gain (loss) from cash flow hedges attributable to noncontrolling interest

Accumulated Other Comprehensive Income [Roll Forward]

Other comprehensive income (loss), net of tax

Accumulated net gain (loss) from cash flow hedges attributable to parent

Accumulated Other Comprehensive Income [Roll Forward]

AOCI beginning balance

(11)

(13)

(7)

Other comprehensive income (loss), net of tax

(4)

Cumulative effect of accounting change

^[3]

AOCI ending balance

(13)

(11)

(13)

Accumulated foreign currency adjustment including portion attributable to noncontrolling interest

Accumulated Other Comprehensive Income [Roll Forward]

Other comprehensive income (loss), pretax

(9)

Other comprehensive income (loss), tax

(1)

Other comprehensive income (loss), net of tax

(10)

Accumulated foreign currency adjustment attributable to noncontrolling interest

Accumulated Other Comprehensive Income [Roll Forward]

Other comprehensive income (loss), net of tax

Accumulated foreign currency adjustment attributable to parent

Accumulated Other Comprehensive Income [Roll Forward]

AOCI beginning balance

(16)

(6)

(15)

Other comprehensive income (loss), net of tax

(10)

Cumulative effect of accounting change

^[3]

AOCI ending balance

(6)

(9)

(16)

(6)

Accumulated defined benefit plans adjustment including portion attributable to noncontrolling interest

Accumulated Other Comprehensive Income [Roll Forward]

Other comprehensive income (loss), pretax

Other comprehensive income (loss), tax

Other comprehensive income (loss), net of tax

Accumulated defined benefit plans adjustment attributable to noncontrolling interest

Accumulated Other Comprehensive Income [Roll Forward]

Other comprehensive income (loss), net of tax

Accumulated defined benefit plans adjustment attributable to parent

Accumulated Other Comprehensive Income [Roll Forward]

AOCI beginning balance

(8)

(7)

Other comprehensive income (loss), net of tax

Cumulative effect of accounting change

^[3]

AOCI ending balance

(8)

(7)

(8)

AOCI including portion attributable to noncontrolling interest

Accumulated Other Comprehensive Income [Roll Forward]

Other comprehensive income (loss), pretax

1,030

(686)

445

Other comprehensive income (loss), tax

(215)

142

(149)

Other comprehensive income (loss), net of tax

815

(544)

296

AOCI attributable to noncontrolling interest

Accumulated Other Comprehensive Income [Roll Forward]

Other comprehensive income (loss), net of tax

AOCI attributable to parent

Accumulated Other Comprehensive Income [Roll Forward]

AOCI beginning balance

813

375

Other comprehensive income (loss), net of tax

815

(544)

296

Cumulative effect of accounting change

$ (221)

^[3]

Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect

145

AOCI ending balance

813

$ 863

$ 48

$ 813

Tax Cuts and Jobs Act of 2017 | Accumulated net investment gain (loss) attributable to parent

Accumulated Other Comprehensive Income [Roll Forward]

Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect

^[3]

149

Tax Cuts and Jobs Act of 2017 | Accumulated net gain (loss) from cash flow hedges attributable to parent

Accumulated Other Comprehensive Income [Roll Forward]

Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect

^[3]

(2)

Tax Cuts and Jobs Act of 2017 | Accumulated defined benefit plans adjustment attributable to parent

Accumulated Other Comprehensive Income [Roll Forward]

Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect

^[3]

(2)

Tax Cuts and Jobs Act of 2017 | AOCI attributable to parent

Accumulated Other Comprehensive Income [Roll Forward]

Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect

^[3]

142

Redeemable noncontrolling interests | Tax Cuts and Jobs Act of 2017 | Accumulated foreign currency adjustment attributable to parent

Accumulated Other Comprehensive Income [Roll Forward]

Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect

^[3]

$ (3)

[1]

The reclassification adjustment out of net unrealized gains (losses) 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

[2]

Includes net unrealized gains of $55 million at December 31, 2019 compared to $58 million and $68 million at December 31, 2018 and 2017, related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.

[3]

Income Taxes - Narrative (Details)
£ in Millions, $ in Millions

1 Months Ended

3 Months Ended

12 Months Ended

Jan. 01, 2018

Jan. 31, 2008

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2019

USD ($)

Dec. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Dec. 31, 2012

USD ($)

Dec. 31, 2019

GBP (£)

Income Tax Reconciliation [Line Items]

Statutory rate of income taxes

21.00%

35.00%

Impact of foreign operations included in the provision for income taxes

$ 4

$ (2)

$ 21

Decrease in the valuation allowance related to the change in the U.S. corporate tax rate

(7)

Income tax expense (benefit)

239

122

247

Decrease in net deferred tax assets resulting from the changes in the Tax Cuts and Jobs Act of 2017

$ 83

Effective tax rate excluding the charge related to the exit of certain lines of business within subsidiaries and impact of the change in the U.S. corporate tax rate

31.00%

Income (losses) subject to tax in foreign jurisdictions

(109)

(69)

$ (58)

Operating loss carryforwards, valuation allowance

Cash payments for income taxes

$ 278

$ 156

194

Limitation on the use of tax credit carryforwards

A SRLY NOL can be used only by the entity that created it and only in years that both it and the consolidated group have taxable income. Approximately $19 million of AFG’s SRLY NOLs expired unutilized at December 31, 2018.

Tax Cuts and Jobs Act implementation complete

true

AFG

Income Tax Reconciliation [Line Items]

Income tax expense (benefit)

$ 239

$ 122

247

Unrecognized tax benefits that would impact the effective tax rate

Interest included in tax provision

Neon Capital Limited

Income Tax Reconciliation [Line Items]

Income tax expense (benefit)

$ (56)

$ (48)

Increase (Decrease) in current taxes payable

(20)

Charge for valuation allowance

Income Tax Reconciliation [Line Items]

Charge for valuation allowance against deferred tax assets

118

Maximum | AFG

Income Tax Reconciliation [Line Items]

Unrecognized tax benefits that would impact the effective tax rate

Interest included in tax provision

Amount of expense for penalties related to a tax position

Income tax penalties accrued

$ 1

Amount unutilized

Income Tax Reconciliation [Line Items]

Operating loss carryforwards

Tax Cuts and Jobs Act of 2017

Income Tax Reconciliation [Line Items]

Statutory rate of income taxes

21.00%

Decrease in net deferred tax assets resulting from the changes in the Tax Cuts and Jobs Act of 2017

$ (83)

Tax Cuts and Jobs Act of 2017 | Neon Capital Limited

Income Tax Reconciliation [Line Items]

Decrease in the valuation allowance related to the change in the U.S. corporate tax rate

(61)

United Kingdom

Income Tax Reconciliation [Line Items]

Operating loss carryforwards

^[1]

$ 305

£ 231

Property and casualty insurance

Income Tax Reconciliation [Line Items]

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

$ 1

Property and casualty insurance | Maximum

Income Tax Reconciliation [Line Items]

Tax payments due to resolved uncertainty in state taxation

Neon Capital Limited

Income Tax Reconciliation [Line Items]

Payments to acquire controlling interest in subsidiaries

$ 75

Percentage ownership of subsidiary

67.00%

Payments to acquire additional interest in subsidiaries

$ 17

Foreign underwriting losses

Income Tax Reconciliation [Line Items]

Impact of foreign operations included in the provision for income taxes

$ 14

[1]	£231 million

Income Taxes - Reconciliation of income taxes at the statutory rate to the provision for income taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Earnings before income taxes (“EBT”)	$ 1,108	$ 639	$ 724
Income taxes at statutory rate	233	134	253
Effect of tax exempt interest	(14)	(13)	(23)
Effect of stock-based compensation	(8)	(8)	(16)
Effect of dividends received deduction	(4)	(4)	(8)
Effect of adjustments to prior year taxes	(3)	(8)	(4)
Effect of employee stock ownership plan dividend paid deduction	(2)	(3)	(5)
Effect of change in valuation allowance (excluding change in tax rate)	17	11	(7)
Effect of nondeductible expenses	8	7	6
Effect of foreign operations	4	(2)	21
Effect of Neon restructuring	0	0	(56)
Effective of change in U.S. corporate tax rate	0	0	83
Effect of other income tax reconciliation	8	8	3
Provision for income taxes as shown in the Statement of Earnings	$ 239	$ 122	$ 247
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Income taxes at statutory rate as a percentage of EBT	21.00%	21.00%	35.00%
Effect of tax exempt interest as a percentage of EBT	(1.00%)	(2.00%)	(3.00%)
Effect of stock-based compensation as a percentage of EBT	(1.00%)	(1.00%)	(2.00%)
Effect of dividend received deduction as a percentage of EBT	0.00%	(1.00%)	(1.00%)
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent	0.00%	(1.00%)	(1.00%)
Effect of employee stock ownership plan dividend paid deduction as a percentage of EBT	0.00%	(1.00%)	(1.00%)
Effect of change in valuation allowance (excluding change in tax rate) as a percentage of EBT	2.00%	2.00%	(1.00%)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent	1.00%	1.00%	1.00%
Effect of foreign operations as a percentage of EBT	0.00%	0.00%	3.00%
Effect of Neon restructuring as a percentage of EBT	0.00%	0.00%	(8.00%)
Effective of change in U.S. corporate tax rate as a percentage of EBT	0	0	0.11
Effect of other income tax reconciliation as a percentage of EBT	0.00%	1.00%	1.00%
Provision for income taxes as shown in the Statement of Earnings as a percentage of EBT	22.00%	19.00%	34.00%

Income Taxes - Total income tax provision (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current taxes:
Federal	$ 250	$ 196	$ 153
State	10	8	6
Foreign	2	0	0
Deferred taxes:
Federal	(23)	(82)	5
Impact of change in U.S. corporate tax rate	0	0	83
Total Federal deferred taxes	(23)	(82)	88
Provision for income taxes as shown in the Statement of Earnings	$ 239	$ 122	$ 247

Income Taxes - Operating and capital loss carryforwards available (Details) - Dec. 31, 2019
£ in Millions, $ in Millions

USD ($)

GBP (£)

U.S. | Expiring 2019 - 2022

Operating and capital loss carryforwards [Line Items]

Operating loss carryforwards

$ 93

United Kingdom

Operating and capital loss carryforwards [Line Items]

Operating loss carryforwards

^[1]

$ 305

£ 231

[1]	£231 million

Income Taxes - Significant components of deferred tax assets and liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Federal net operating loss carryforwards	$ 19	$ 23
Foreign underwriting losses	118	93
Insurance claims and reserves	875	743
Employee benefits	93	88
Other, net	43	44
Total deferred tax assets before valuation allowance	1,148	991
Valuation allowance against deferred tax assets	(140)	(119)
Total deferred tax assets	1,008	872
Deferred tax liabilities:
Investment securities	(556)	(70)
Deferred policy acquisition costs	(150)	(291)
Insurance claims and reserves transition liability	(93)	(110)
Real estate, property and equipment	(35)	(36)
Total deferred tax liabilities	(834)	(507)
Net deferred tax asset (liability)	174	365
Excluding Unrealized Gains
Deferred tax assets:
Federal net operating loss carryforwards	19	23
Foreign underwriting losses	118	93
Insurance claims and reserves	829	740
Employee benefits	93	88
Other, net	45	44
Total deferred tax assets before valuation allowance	1,104	988
Valuation allowance against deferred tax assets	(140)	(119)
Total deferred tax assets	964	869
Deferred tax liabilities:
Investment securities	(140)	(36)
Deferred policy acquisition costs	(293)	(300)
Insurance claims and reserves transition liability	(93)	(110)
Real estate, property and equipment	(35)	(36)
Total deferred tax liabilities	(561)	(482)
Net deferred tax asset (liability)	403	387
Impact of Unrealized Gains
Deferred tax assets:
Federal net operating loss carryforwards	0	0
Foreign underwriting losses	0	0
Insurance claims and reserves	46	3
Employee benefits	0	0
Other, net	(2)	0
Total deferred tax assets before valuation allowance	44	3
Valuation allowance against deferred tax assets	0	0
Total deferred tax assets	44	3
Deferred tax liabilities:
Investment securities	(416)	(34)
Deferred policy acquisition costs	143	9
Insurance claims and reserves transition liability	0	0
Real estate, property and equipment	0	0
Total deferred tax liabilities	(273)	(25)
Net deferred tax asset (liability)	$ (229)	$ (22)

Income Taxes - Progression of the liability for uncertain tax positions, excluding interest and penalties (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Progression of the liability for uncertain tax positions, excluding interest and penalties
Balance at January 1	$ 0	$ 0	$ 1
Additions for tax positions of prior years	0	0	0
Reductions for tax positions of prior years	0	0	0
Additions for tax positions of current year	0	0	0
Settlements	0	0	(1)
Balance at December 31	$ 0	$ 0	$ 0

Contingencies - Narrative (Details) - USD ($) $ in Millions		3 Months Ended
Contingencies - Narrative (Details) - USD ($) $ in Millions	Dec. 24, 2015	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loss Contingencies [Line Items]
Reinsurance recoverables on asbestos and environmental reserves, net of allowance					$ 3,024	$ 2,942	$ 2,957	$ 2,302
Property and Casualty Group
Loss Contingencies [Line Items]
Increase in asbestos and environmental reserves		$ 18	$ 18	$ 89
Liability for asbestos and environmental reserves					529
Former railroad and manufacturing operations
Loss Contingencies [Line Items]
Increase in asbestos and environmental reserves		$ 11	$ 9	$ 24
American Premier and its subsidiaries
Loss Contingencies [Line Items]
Liability for environmental and other claims					84
GAFRI
Loss Contingencies [Line Items]
Liability for environmental and other claims					8
Run-off long-term care and life
Loss Contingencies [Line Items]
Contingent capital support agreement amount	$ 35
Contingent capital support agreement term	5 years
A&E reserves \| Property and Casualty Group
Loss Contingencies [Line Items]
Reinsurance recoverables on asbestos and environmental reserves, net of allowance					$ 146

Quarterly Operating Results (Unaudited) - Narrative (Details) - USD ($) $ in Millions	3 Months Ended			12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Operating Results (Unaudited) [Line Items]
Increase (decrease) in holding company expenses related to employee benefit plans	$ 20
Property and casualty insurance \| Other lines
Quarterly Operating Results (Unaudited) [Line Items]
Increase in asbestos and environmental reserves		$ 18	$ 18	$ 18	$ 18	$ 89
Special charges related to the exit of certain lines of business within subsidiaries	76
Other
Quarterly Operating Results (Unaudited) [Line Items]
Write off of deferred debt issuance cost due to the retirement of debt	$ 5
Other \| Former railroad and manufacturing operations
Quarterly Operating Results (Unaudited) [Line Items]
Increase in asbestos and environmental reserves		$ 11	$ 9

Quarterly Operating Results (Unaudited) - Quarterly results of consolidated operations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Condensed Statement of Earnings
Revenues	$ 2,130	$ 2,123	$ 1,960	$ 2,024	$ 1,690	$ 2,008	$ 1,833	$ 1,619	$ 8,237	$ 7,150	$ 6,865
Net earnings, including noncontrolling interests	191	143	209	326	(35)	203	208	141	869	517	477
Net earnings attributable to shareholders	$ 211	$ 147	$ 210	$ 329	$ (29)	$ 204	$ 210	$ 145	$ 897	$ 530	$ 475
Earnings Attributable to Shareholders per Common Share:
Basic (USD per share)	$ 2.33	$ 1.64	$ 2.34	$ 3.68	$ (0.33)	$ 2.30	$ 2.36	$ 1.64	$ 9.98	$ 5.95	$ 5.40
Diluted (USD per share)	$ 2.30	$ 1.62	$ 2.31	$ 3.63	$ (0.33)	$ 2.26	$ 2.31	$ 1.60	$ 9.85	$ 5.85	$ 5.28
Average number of Common Shares:
Basic (shares)	90.2	90.0	89.7	89.4	89.3	89.1	89.0	88.6	89.9	89.0	87.8
Diluted (shares)	91.3	91.1	91.0	90.7	89.3	90.7	90.7	90.4	91.0	90.6	89.8

Quarterly Operating Results (Unaudited) - Realized gains (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Realized gains (losses)
Realized Gains (Losses) on Securities and Subsidiaries	$ (2)	$ (3)	$ 12	$ 2	$ (15)	$ 1	$ 8	$ 2	$ 9	$ (4)
Equity securities \| Accounting Standards Update 2016-01
Realized gains (losses)
Realized Gains (Losses) on Securities and Subsidiaries	$ 67	$ (15)	$ 44	$ 182	$ (223)	$ 33	$ 23	$ (95)	$ 278	$ (262)

Quarterly Operating Results (Unaudited) - Impact of fair value accounting on annuities (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Impact of Unlocking, Changes in the Fair Value of Derivatives, and Changes in the Stock Market and Interest Rates on the Accounting for FIAs	$ 24	$ (27)	$ (33)	$ (11)	$ (66)	$ 17	$ (14)	$ 15	$ (47)	$ (48)

Quarterly Operating Results (Unaudited) - Favorable (adverse) prior year development of the liability for losses and LAE (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Prior year claims and claims adjustment expense	$ 45	$ 12	$ 41	$ 45	$ 61	$ 31	$ 44	$ 56	$ 143	$ 192

Quarterly Operating Results (Unaudited) - Catastrophe losses (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Pretax catastrophe losses	$ (15)	$ (22)	$ (12)	$ (12)	$ (38)	$ (38)	$ (16)	$ (13)	$ (61)	$ (105)

Insurance - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended									12 Months Ended
Insurance - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Insurance [Line Items]
Carrying value of cash and securities owned by U.S.-based insurance subsidiaries on deposit		$ 1,040									$ 1,040
Carrying value of cash and securities owned by insurance subsidiaries on deposit in support of underwriting activities at Lloyd's		217									217
Undrawn letters of credit		414									414
Undrawn letters of credit, collateralized		0									$ 0
Workers' compensation insurance discount rate											4.50%	4.50%
Workers' compensation insurance discount, which has reduced the liability for unpaid losses and loss adjustment expenses		12				$ 13					$ 12	$ 13
Prior year claims and claims adjustment expense		45	$ 12	$ 41	$ 45	61	$ 31	$ 44	$ 56		143	192
Long-term care insurance reserves, net of reinsurance recoverables		46				45					46	45
Investment in Federal Home Loan Bank capital stock		52									52
Advances from Federal Home Loan Bank		1,100				1,100					$ 1,100	1,100
Proceeds from Federal Home Loan Bank Advance, Investing Activities						225
Description of variable rate basis											LIBOR
Repayments of advances from Federal Home Loan Bank due in next twelve months		310									$ 310
Repayments of advances from Federal Home Loan Bank due in year two		786									786
Fair value of fixed maturity investments held as collateral by the Federal Home Loan Bank		1,270									1,270
Interest on advances from Federal Home Loan Bank											27	20	$ 14
Maximum amount of dividends available to be paid by insurance subsidiaries to AFG without prior approval of regulatory authorities		852									852
Dividends on common stock											(446)	(397)	(421)
Aggregate guaranteed minimum death benefit value on variable annuity polices in force		13				35					13	35
Minimum
Insurance [Line Items]
Dividends payments without violating the most restrictive debt covenants, minimum		2,500									$ 2,500
Minimum \| LIBOR
Insurance [Line Items]
FHLB advances, basis spread on variable rate											0.13%
Maximum \| LIBOR
Insurance [Line Items]
FHLB advances, basis spread on variable rate											0.21%
Average \| LIBOR
Insurance [Line Items]
FHLB advances, basis spread on variable rate											1.95%
FHLB, advances, refinanced terms
Insurance [Line Items]
Advances from Federal Home Loan Bank		610				40					$ 610	40
Neon exited lines charge
Insurance [Line Items]
Prior year claims and claims adjustment expense											$ 7	0	(18)
Catastrophe Bonds
Insurance [Line Items]
Catastrophe reinsurance coverage, excess retention percentage											95.00%
Catastrophe reinsurance coverage, excess retention amount											$ 200
Catastrophe reinsurance coverage, retention amount											134
Catastrophe reinsurance coverage, annual cost											11
Life insurance
Insurance [Line Items]
Increased statutory surplus resulting from reinsurance treaty		2,868				2,701					2,868	2,701
Life insurance in force, ceded premiums		6,230				7,690					6,230	7,690
Life insurance in force, direct premiums		$ 9,530				10,820					9,530	10,820
Reinsurance ceded											20	22	28
Reinsurance recoveries											32	38	35
Variable annuities \| Maximum
Insurance [Line Items]
Death benefits paid in excess of the variable annuity account balances											1	1	1
Property and casualty insurance \| Other lines
Insurance [Line Items]
Special A&E charges			$ 18				$ 18				$ 18	18	89
Neon Capital Limited \| Property and casualty insurance
Insurance [Line Items]
Favorable reserve development related to certain lines of business within subsidiaries in connection with a reinsurance to close agreement										$ 42
Neon Capital Limited \| Property and casualty insurance \| Other lines
Insurance [Line Items]
Favorable reserve development related to certain lines of business within subsidiaries in connection with a reinsurance to close agreement										18			$ 18
Neon Capital Limited \| Property and casualty insurance \| Other lines \| Reinsurance to close agreement
Insurance [Line Items]
Favorable reserve development related to certain lines of business within subsidiaries in connection with a reinsurance to close agreement	$ 18
Neon Capital Limited \| Neon Capital Limited \| Current lines
Insurance [Line Items]
Favorable reserve development related to certain lines of business within subsidiaries in connection with a reinsurance to close agreement										$ 24
Great American Life Insurance Company \| Life insurance
Insurance [Line Items]
Increased statutory surplus resulting from reinsurance treaty						$ 510						$ 510

Insurance - Analysis of changes in the liability for losses and loss adjustment expenses, net of reinsurance (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

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

Balance at beginning of period

$ 9,741

$ 9,678

$ 9,741

$ 9,678

$ 8,563

Less reinsurance recoverables, net of allowance

$ 3,024

$ 2,942

3,024

2,942

2,957

$ 2,302

Net liability at beginning of period

6,799

6,721

6,799

6,721

6,261

Liability for losses and loss adjustment expenses, period increase (decrease) [Abstract]

Provision for losses and LAE occurring in the current year

3,414

3,195

3,019

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

Provision for claims of prior years related to special A&E charges, Neon exited lines development and other

$ 12

$ 41

$ 45

$ 31

$ 44

$ 56

143

192

Total losses and LAE incurred

3,271

3,003

2,955

Payments for losses and LAE of:

Current year

(1,076)

(963)

(942)

Prior years

(1,790)

(1,639)

(1,586)

Total payments

(2,866)

(2,602)

(2,528)

Reserves of businesses disposed

^[1]

(319)

^[1]

Foreign currency translation and other

(4)

Net liability at end of period

7,208

6,799

7,208

6,799

6,721

Add back reinsurance recoverables, net of allowance

3,024

2,942

3,024

2,942

2,957

Gross unpaid losses and LAE included in the balance sheet

$ 10,232

$ 9,741

10,232

9,741

9,678

Special A&E charges

Liability for losses and loss adjustment expenses, period increase (decrease) [Abstract]

Special A&E charges

Neon exited lines charge

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

Provision for claims of prior years related to special A&E charges, Neon exited lines development and other

(18)

Other

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

Provision for claims of prior years related to special A&E charges, Neon exited lines development and other

$ (168)

$ (210)

$ (135)

[1]	Reflects the reinsurance to close transactions at Neon (discussed below).

Insurance - Reconciliation of incurred and paid claims development information to the aggregate carrying amount of the liability for unpaid losses and LAE (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Total reserves, net of reinsurance	$ 7,208	$ 6,799	$ 6,721	$ 6,261
Add back reinsurance recoverables, net of allowance	(3,024)	(2,942)	(2,957)	(2,302)
Gross unpaid losses and LAE included in the balance sheet	10,232	$ 9,741	$ 9,678	$ 8,563
Property and casualty insurance
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Specialty unpaid losses and LAE, net of reinsurance	5,761
Other unpaid losses and LAE, net of reinsurance	1,447
Unallocated LAE	361
Total reserves, net of reinsurance	7,208
Add back reinsurance recoverables, net of allowance	3,024
Gross unpaid losses and LAE included in the balance sheet	10,232
Property and casualty insurance \| Reserves for foreign operations:
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Other unpaid losses and LAE, net of reinsurance	289
Property and casualty insurance \| A&E reserves
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Other unpaid losses and LAE, net of reinsurance	383
Property and casualty insurance \| Other
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Other unpaid losses and LAE, net of reinsurance	57
Property and casualty insurance \| Property and transportation
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Specialty unpaid losses and LAE, net of reinsurance	1,171
Property and casualty insurance \| Specialty casualty
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Specialty unpaid losses and LAE, net of reinsurance	4,056
Property and casualty insurance \| Specialty financial
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Specialty unpaid losses and LAE, net of reinsurance	221
Property and casualty insurance \| Other specialty
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Specialty unpaid losses and LAE, net of reinsurance	313
Neon Capital Limited \| Property and casualty insurance \| Reserves for foreign operations:
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]
Other unpaid losses and LAE, net of reinsurance	$ 357

Insurance - Short-duration insurance contracts, historical claims duration (Details) - Property and casualty insurance	Dec. 31, 2019
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Line Items]
Year 1	32.60%
Year 2	25.70%
Year 3	12.10%
Year 4	8.90%
Year 5	5.60%
Year 6	3.10%
Year 7	2.10%
Year 8	0.80%
Year 9	0.90%
Year 10	1.00%
Year 1, Cumulative	32.60%
Year 2, Cumulative	58.30%
Year 3, Cumulative	70.40%
Year 4, Cumulative	79.30%
Year 5, Cumulative	84.90%
Year 6, Cumulative	88.00%
Year 7, Cumulative	90.10%
Year 8, Cumulative	90.90%
Year 9, Cumulative	91.80%
Year 10, Cumulative	92.80%
Property and transportation
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Line Items]
Year 1	47.10%
Year 2	29.80%
Year 3	7.70%
Year 4	6.00%
Year 5	3.60%
Year 6	1.80%
Year 7	1.50%
Year 8	(0.10%)
Year 9	0.20%
Year 10	0.20%
Year 1, Cumulative	47.10%
Year 2, Cumulative	76.90%
Year 3, Cumulative	84.60%
Year 4, Cumulative	90.60%
Year 5, Cumulative	94.20%
Year 6, Cumulative	96.00%
Year 7, Cumulative	97.50%
Year 8, Cumulative	97.40%
Year 9, Cumulative	97.60%
Year 10, Cumulative	97.80%
Specialty casualty
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Line Items]
Year 1	18.70%
Year 2	22.90%
Year 3	16.40%
Year 4	11.50%
Year 5	7.30%
Year 6	4.30%
Year 7	2.70%
Year 8	1.90%
Year 9	1.60%
Year 10	1.80%
Year 1, Cumulative	18.70%
Year 2, Cumulative	41.60%
Year 3, Cumulative	58.00%
Year 4, Cumulative	69.50%
Year 5, Cumulative	76.80%
Year 6, Cumulative	81.10%
Year 7, Cumulative	83.80%
Year 8, Cumulative	85.70%
Year 9, Cumulative	87.30%
Year 10, Cumulative	89.10%
Specialty financial
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Line Items]
Year 1	50.50%
Year 2	27.70%
Year 3	7.90%
Year 4	5.40%
Year 5	4.20%
Year 6	0.90%
Year 7	0.20%
Year 8	(0.80%)
Year 9	0.00%
Year 10	0.00%
Year 1, Cumulative	50.50%
Year 2, Cumulative	78.20%
Year 3, Cumulative	86.10%
Year 4, Cumulative	91.50%
Year 5, Cumulative	95.70%
Year 6, Cumulative	96.60%
Year 7, Cumulative	96.80%
Year 8, Cumulative	96.00%
Year 9, Cumulative	96.00%
Year 10, Cumulative	96.00%
Other specialty
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Line Items]
Year 1	16.60%
Year 2	16.50%
Year 3	13.20%
Year 4	14.90%
Year 5	10.50%
Year 6	9.80%
Year 7	4.90%
Year 8	3.50%
Year 9	2.50%
Year 10	0.00%
Year 1, Cumulative	16.60%
Year 2, Cumulative	33.10%
Year 3, Cumulative	46.30%
Year 4, Cumulative	61.20%
Year 5, Cumulative	71.70%
Year 6, Cumulative	81.50%
Year 7, Cumulative	86.40%
Year 8, Cumulative	89.90%
Year 9, Cumulative	92.40%
Year 10, Cumulative	92.40%

Insurance - Net earnings and capital and surplus on a statutory basis for the insurance subsidiaries (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property and casualty companies
Statutory information
Net Earnings	$ 584	$ 546	$ 484
Capital and Surplus	3,342	2,867
Life (annuity) insurance companies
Statutory information
Net Earnings	34	802	$ 286
Capital and Surplus	$ 2,868	$ 2,701

Insurance - Reinsurance information table including assumed, ceded, and recoveries (Details) - Property and casualty insurance - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effects of Reinsurance [Line Items]
Direct premiums written	$ 7,044	$ 6,626	$ 6,310
Reinsurance assumed	255	214	192
Reinsurance ceded	(1,957)	(1,817)	(1,751)
Net written premiums	5,342	5,023	4,751
Direct premiums earned	6,848	6,472	6,112
Reinsurance assumed	226	204	157
Reinsurance ceded	(1,889)	(1,811)	(1,690)
Net earned premiums	5,185	4,865	4,579
Reinsurance recoveries	$ 1,404	$ 1,249	$ 1,379

Insurance - Liabilities for excess benefits expected to be paid on future deaths and annuitizations, guaranteed withdrawal benefits and accrued persistency and premium bonuses (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Insurance [Abstract]
Expected death and annuitization	$ 232	$ 229
Guaranteed withdrawal benefits	625	472
Accrued persistency and premium bonuses	$ 1	$ 1

Additional Information - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for reinsurance recoverables [Line Items]
Commitments to fund limited partnerships	$ 897
Retirement and employee savings plan expense	39	$ 37	$ 45
Allowance for reinsurance recoverables
Allowance for reinsurance recoverables [Line Items]
Aggregate allowance for losses on reinsurance recoverables	18	18
Net expense reduction against the allowance for losses on reinsurance recoverables		$ (2)
Reinsurance recoverable write-offs			2
Maximum \| Allowance for reinsurance recoverables
Allowance for reinsurance recoverables [Line Items]
Net expense reduction against the allowance for losses on reinsurance recoverables	$ (1)		$ (1)

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

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Assets:

Cash and cash equivalents

$ 2,314

$ 1,515

$ 2,338

$ 2,107

Other investments

278

267

Other assets

1,867

1,529

Total assets

70,130

63,456

60,658

Liabilities and Equity:

Long-term debt

1,473

1,302

Other liabilities

2,295

1,774

Shareholders’ equity

6,269

4,970

Total liabilities and equity

70,130

63,456

AFG

Assets:

Cash and cash equivalents

166

158

$ 299

$ 197

Investment in securities

Investment in subsidiaries

^[1]

7,623

6,155

Other investments

Other assets

143

Total assets

8,011

6,448

Liabilities and Equity:

Long-term debt

1,473

1,302

Other liabilities

269

176

Shareholders’ equity

6,269

4,970

Total liabilities and equity

$ 8,011

$ 6,448

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

Condensed Financial Information of Parent Company - Condensed Statement of Earnings (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues:
Total revenues	$ 2,130	$ 2,123	$ 1,960	$ 2,024	$ 1,690	$ 2,008	$ 1,833	$ 1,619	$ 8,237	$ 7,150	$ 6,865
Costs and Expenses:
Interest charges on other borrowings									68	62	85
Other expenses									405	353	422
Total costs and expenses									7,129	6,511	6,141
Earnings before income taxes									1,108	639	724
Provision for income taxes									239	122	247
Net Earnings Attributable to Shareholders	$ 211	$ 147	$ 210	$ 329	$ (29)	$ 204	$ 210	$ 145	897	530	475
AFG
Revenues:
Dividends from subsidiaries									417	261	681
Equity in undistributed earnings of subsidiaries									888	529	264
Investment and other income									20	2	13
Total revenues									1,325	792	958
Costs and Expenses:
Interest charges on intercompany borrowings									8	8	9
Interest charges on other borrowings									68	62	85
Other expenses									113	70	142
Total costs and expenses									189	140	236
Earnings before income taxes									1,136	652	722
Provision for income taxes									239	122	247
Net Earnings Attributable to Shareholders									$ 897	$ 530	$ 475

Condensed Financial Information of Parent Company - Condensed Statement of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Other Comprehensive Income [Abstract]
Net earnings attributable to shareholders	$ 211	$ 147	$ 210	$ 329	$ (29)	$ 204	$ 210	$ 145	$ 897	$ 530	$ 475
Comprehensive income (loss) attributable to shareholders									1,712	(14)	771
AFG
Statement of Other Comprehensive Income [Abstract]
Net earnings attributable to shareholders									897	530	475
Other comprehensive income (loss), net of tax									815	(544)	296
Comprehensive income (loss) attributable to shareholders									$ 1,712	$ (14)	$ 771

- Definition

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

+ References + Details

Condensed Financial Information of Parent Company - Condensed Statement of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Activities:
Net earnings attributable to shareholders	$ 211	$ 147	$ 210	$ 329	$ (29)	$ 204	$ 210	$ 145	$ 897	$ 530	$ 475
Adjustments:
Net cash provided by operating activities									2,456	2,083	1,804
Investing Activities:
Payments for (proceeds from) other investing activities									(3)	30	2
Net cash used in investing activities									(3,065)	(5,350)	(3,292)
Financing Activities:
Additional long-term borrowings									315	0	712
Reductions of long-term debt									(150)	0	(745)
Issuances of Common Stock									36	33	37
Repurchases of Common Stock									0	(6)	0
Cash dividends paid on Common Stock									(444)	(394)	(417)
Proceeds from (payments for) other financing activities									0	0	(4)
Net cash provided by (used in) financing activities									1,408	2,444	1,719
Net Change in Cash and Cash Equivalents									799	(823)	231
Cash and cash equivalents at beginning of year				1,515				2,338	1,515	2,338	2,107
Cash and cash equivalents at end of year	2,314				1,515				2,314	1,515	2,338
AFG
Operating Activities:
Net earnings attributable to shareholders									897	530	475
Adjustments:
Equity in net earnings of subsidiaries									(1,032)	(637)	(575)
Dividends from subsidiaries									408	238	580
Other operating activities, net									33	84	98
Net cash provided by operating activities									306	215	578
Investing Activities:
Capital contributions to subsidiaries									(60)	(11)	(93)
Returns of capital from subsidiaries									4	23	30
Purchases of investments, property and equipment									(3)	(5)	(2)
Proceeds from maturities and redemptions of investments									3	3	2
Net cash used in investing activities									(56)	10	(63)
Financing Activities:
Additional long-term borrowings									315	0	712
Reductions of long-term debt									(150)	0	(745)
Issuances of Common Stock									37	34	37
Repurchases of Common Stock									0	(6)	0
Cash dividends paid on Common Stock									(444)	(394)	(417)
Net cash provided by (used in) financing activities									(242)	(366)	(413)
Net Change in Cash and Cash Equivalents									8	(141)	102
Cash and cash equivalents at beginning of year				$ 158				$ 299	158	299	197
Cash and cash equivalents at end of year	$ 166				$ 158				$ 166	$ 158	$ 299

Supplementary Insurance Information - Table (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Deferred policy acquisition costs	$ 1,037	$ 1,682	$ 1,216
Reserves for future policy benefits, claims and unpaid losses and LAE	51,250	46,992	43,652
Unearned premiums	2,830	2,595	2,410
Net earned premiums	5,207	4,889	4,601
Net investment income	2,303	2,094	1,831
Benefits, claims, losses and settlement expenses	4,458	4,041	3,873
Amortization of deferred policy acquisition costs	923	860	690
Other operating expenses	1,748	1,610	1,578
Net written premiums (excluding life)	5,345	5,026	4,754
Property and casualty insurance
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Deferred policy acquisition costs	322	299	270
Reserves for future policy benefits, claims and unpaid losses and LAE	10,232	9,741	9,678
Unearned premiums	2,830	2,595	2,410
Net earned premiums	5,185	4,865	4,579
Net investment income	472	438	362
Benefits, claims, losses and settlement expenses	3,271	3,003	2,955
Amortization of deferred policy acquisition costs	721	644	556
Other operating expenses	1,027	957	867
Net written premiums (excluding life)	5,342	5,023	4,751
Annuity
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Deferred policy acquisition costs	696	1,360	920
Reserves for future policy benefits, claims and unpaid losses and LAE	40,406	36,616	33,316
Net investment income	1,792	1,638	1,458
Benefits, claims, losses and settlement expenses	1,151	998	892
Amortization of deferred policy acquisition costs	198	212	130
Other operating expenses	189	174	159
Other
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Deferred policy acquisition costs	19	23	26
Reserves for future policy benefits, claims and unpaid losses and LAE	612	635	658
Net earned premiums	22	24	22
Net investment income	39	18	11
Benefits, claims, losses and settlement expenses	36	40	26
Amortization of deferred policy acquisition costs	4	4	4
Other operating expenses	532	479	552
Net written premiums (excluding life)	$ 3	$ 3	$ 3

Label	Element	Value
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 225,000,000
Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 4,000,000