AFG Notified of Arbitration Decision

May 22, 2003

Cincinnati-based American Financial Group Inc. announced that its principal property and casualty insurance subsidiary, Great American Insurance Company, was notified of an arbitration decision resulting from its share of a property fire and business interruption claim.

The company has not yet received a copy of the written decision. Based on preliminary information, the company believes that its range of after tax loss, net of recorded reserves, will be between $20 and $30 million, or 29 to 43 cents per share.

AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of annuities, life and supplemental health insurance products.