Press Release

American Financial Group, Inc. Announces Additional Stock Buyback Authorization

CINCINNATI--(BUSINESS WIRE)--Nov. 5, 2009-- American Financial Group, Inc. (NYSE:AFG)(NASDAQ:AFG) today announced that its Board of Directors has authorized the repurchase of up to an additional five million shares of the Company’s outstanding common stock. This authorization is in addition to the 1.25 million shares remaining at September 30, 2009 from the Board’s previous repurchase program authorized in August 2007. The Company currently has approximately 116 million shares of common stock outstanding.

Between October 28, 2009 and November 5, 2009, AFG repurchased 877,000 shares at an average price of $24.91 per share. AFG may repurchase additional shares by means of open market purchases and privately negotiated transactions at prevailing market prices. The number of additional shares purchased, if any, will be dependent upon market conditions.

“This additional authorization reflects the Board of Directors’ continued confidence in the Company’s long-term financial outlook and commitment to enhancing shareholder value,” said S. Craig Lindner and Carl H. Lindner III, AFG Co-Chief Executive Officers. They added, “We believe that repurchasing shares during opportunistic market conditions is a productive use of our excess capital and can have a favorable effect on the Company’s earnings per share, book value per share and return on equity.”

About American Financial Group, Inc.

American Financial Group is an insurance holding company based in Cincinnati, Ohio with assets in excess of $25 billion. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of traditional fixed, indexed and variable annuities and a variety of supplemental insurance products. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.

Forward Looking Statements

This press release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this press release not dealing with historical results are forward-looking and are based on estimates, assumptions and projections. Examples of such forward-looking statements include statements relating to: the Company’s expectations concerning market and other conditions and their effect on future premiums, revenues, earnings and investment activities; recoverability of asset values; expected losses and the adequacy of reserves for asbestos, environmental pollution and mass tort claims; rate changes; and improved loss experience.

Actual results and/or financial condition could differ materially from those contained in or implied by such forward-looking statements for a variety of reasons including but not limited to: changes in financial, political and economic conditions, including changes in interest rates and extended economic recessions or expansions; performance of securities markets; our ability to estimate accurately the likelihood, magnitude and timing of any losses in connection with investments in the non-agency residential mortgage market; new legislation or declines in credit quality or credit ratings that could have a material impact on the valuation of securities in our investment portfolio; the availability of capital; regulatory actions (including changes in statutory accounting rules); changes in legal environment affecting AFG or its customers; tax law and accounting changes; levels of natural catastrophes, terrorist activities (including any nuclear, biological, chemical or radiological events), incidents of war and other major losses; development of insurance loss reserves and establishment of other reserves, particularly with respect to amounts associated with asbestos and environmental claims; availability of reinsurance and ability of reinsurers to pay their obligations; the unpredictability of possible future litigation; trends in persistency, mortality and morbidity; competitive pressures, including the ability to obtain adequate rates; changes in AFG's credit ratings or the financial strength ratings assigned by major ratings agencies to our operating subsidiaries; and other factors identified in our filings with the Securities and Exchange Commission.

The forward-looking statements herein are made only as of the date of this press release. The Company assumes no obligation to publicly update any forward-looking statements.

AFG09-13

Source: American Financial Group, Inc.

American Financial Group, Inc.
Diane P. Weidner, 513-369-5713
Assistant Vice President-Investor Relations
or
Web Sites:
www.AFGinc.com
www.GreatAmericanInsurance.com
www.GAFRI.com