Derivatives (Tables)

6 Months Ended

Jun. 30, 2026

The following table presents the classification of derivative assets and liabilities included in AFG’s Balance Sheet at fair value (in millions):


		June 30, 2026				December 31, 2025
	Balance Sheet Line	Asset		Liability		Asset		Liability
Derivatives designated and qualifying as cash flow hedges:
Interest rate swaps	Other assets/Other liabilities	$	—	$	5	$	1	$	3

Derivatives not designated as hedging instruments:
Fixed maturities with embedded derivatives	Fixed maturities	72		—		53		—
Total return swap	Other assets/Other liabilities	—		—		—		—
		$	72	$	5	$	54	$	3

The following table summarizes the gains (losses) included in AFG’s Statement of Earnings for changes in the fair value of derivatives (in millions):


		Three months ended June 30,				Six months ended June 30,
	Statement of Earnings Line	2026		2025		2026		2025
Qualifying cash flow hedges:
Interest rate swaps	Net investment income	$	(1)	$	(2)	$	(2)	$	(5)

Non-designated hedges:
Fixed maturities with embedded derivatives	Realized gains (losses) on securities	(9)		—		(10)		1
Fixed maturities with embedded derivatives	Net investment income	—		7		—		2
Total return swap	Other expenses	14		9		10		6
Earnings (losses) on non-designated hedges		5		16		—		9
Total earnings (losses) on derivatives		$	4	$	14	$	(2)	$	4