Press Release

American Financial Group Enhances Dividend Reinvestment Plan

Cincinnati, Ohio – September 5, 2001 - American Financial Group, Inc. (NYSE: AFG) announced today that shareholders reinvesting their dividends under its Dividend Reinvestment Plan will be able to do so at a discount of 4% to the market price of the stock at the time of purchase.

The Plan provides a simple and convenient method of investing cash dividends in additional shares of AFG Common Stock, without brokerage commissions or service charges. Holders of record of at least 25 shares of AFG Common Stock and holders of record of at least 25 shares of American Financial Corporation Series J Preferred Stock are eligible to participate in the Plan.

Through 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.