Press Release

American Financial Group, Inc. Announces the Pricing of $125 Million Aggregate Principal Amount of Senior Notes

CINCINNATI--(BUSINESS WIRE)--Aug. 21, 2012-- American Financial Group, Inc. (NYSE:AFG) (NASDAQ:AFG) announced today the sale of $125 million aggregate principal amount of 5¾% Senior Notes due August 25, 2042. The Senior Notes are redeemable on or after August 25, 2017, at 100% of their principal amount plus accrued and unpaid interest to the redemption date.

AFG intends to apply for listing of the Senior Notes on The New York Stock Exchange. If approved, we expect trading in the Senior Notes to begin within 30 days of issuance under the symbol “AFA.” The net proceeds from the offering will be used to redeem all $115 million aggregate principal amount of our 7⅛% Senior Debentures due 2034 plus accrued and unpaid interest thereon to, but excluding, the date of redemption. Remaining proceeds will be used for general working capital purposes.

This press release does not constitute an offer for sale of any securities. The Senior Notes may be offered only by means of a Prospectus Supplement and accompanying base Prospectus. Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC and Wells Fargo Securities, LLC acted as joint book-running managers for the offering. A copy of the Prospectus Supplement and accompanying base Prospectus relating to the offering may be obtained from:

  • Merrill Lynch, Pierce, Fenner & Smith Incorporated, at One Bryant Park, New York, NY 10036, toll free number: 1-800-294-1322;
  • UBS Securities LLC at 299 Park Avenue, New York, NY 10171, Attn: Prospectus Specialist, toll free number: 1-877-827-6444, ext. 561 3884; and
  • Wells Fargo Securities, LLC at 1525 West W.T. Harris Blvd., NC0675, Charlotte, NC 28262, Attn: Capital Markets Client Support, toll free number: 1-800-326-5897.

About American Financial Group, Inc.

American Financial Group is an insurance holding company based in Cincinnati, Ohio with assets in excess of $35 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 and indexed annuities and a variety of supplemental insurance products such as Medicare supplement (in May 2012, the Company reached a definitive agreement to sell its core supplemental insurance operations in a transaction that is expected to close in the third quarter of 2012). 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 long-term care, 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 and inflation rates, currency fluctuations and extended economic recessions or expansions in the U.S. and abroad; performance of securities markets; AFG’s 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 AFG’s investment portfolio; the availability of capital; regulatory actions (including changes in statutory accounting rules); changes in the legal environment affecting AFG or its customers; tax law and accounting changes; levels of natural catastrophes and severe weather, terrorist activities (including any nuclear, biological, chemical or radiological events), incidents of war or losses resulting from civil unrest 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; changes in persistency of in-force policies; availability of reinsurance and ability of reinsurers to pay their obligations; the unpredictability of possible future litigation if certain settlements of current litigation do not become effective; trends in persistency, mortality and morbidity; competitive pressures, including those in the annuity bank distribution channels, the ability to obtain adequate rates and policy terms; 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.

Source: American Financial Group, Inc.

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