Press Release

American Financial Group Issues Preliminary Estimate On Recent New York City Tragedy

Cincinnati, Ohio – September 19, 2001 - American Financial Group, Inc. (NYSE: AFG) today issued a preliminary estimate of its expected losses from the terrorist attacks of September 11, 2001. Based on information available at this time, AFG estimates that its pre-tax losses after reinsurance will be less than $20 million. The company has limited property exposures and expects losses to come principally from excess liability and workers' compensation coverages.

Carl H. Lindner, AFG's Chairman and Chief Executive Officer stated: "We extend our prayers and deepest sympathies to the families and friends of those who lost their lives in this horrible tragedy. We, as all Americans, are repulsed by the tragic events of last week. Our Company and its employees support the efforts of the U. S. government and those of all peace loving nations to restore world order.”

Through the operations of the Great American Insurance Group, AFG is engaged primarily in private passenger automobile and specialty property and casualty insurance businesses and in the sale of retirement annuities, life, supplemental health and long-term care insurance products.

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. Actual results could differ materially from those expected by AFG depending on certain factors including but not limited to: changes in economic conditions including interest rates, performance of securities markets, and the availability of capital, regulatory actions, changes in legal environment, judicial decisions and rulings, tax law changes, levels of catastrophes and other major losses, the actual amount of liabilities associated with certain environmental and asbestos-related insurance claims, adequacy of loss reserves, availability of reinsurance, competitive pressures, including the ability to obtain rate increases, driving patterns and other changes in market conditions that could affect AFG's insurance operations.