Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

      Cincinnati, Ohio - October 21, 2004 - American Financial Group, Inc. (NYSE/NASDAQ: AFG) today reported net earnings for the 2004 third quarter of $172.0 million ($2.30 per share). These results include an after-tax gain of $134 million ($1.80 per share) relating to the sale of Provident Financial Group shares in its merger with National City Corporation and after-tax losses of $22.8 million ($.30 per share) associated with four hurricanes which affected the Southeastern U. S. AFG's net earnings for last year's third quarter were $41.6 million ($.59 per share) and included an after-tax charge of $23.1 million ($.33 per share) related to the settlement of litigation in one of the property and casualty insurance businesses.

       Net earnings for the first nine months of 2004 were $301.1 million ($ 4.04 per share) compared to $97.2 million ($1.39 per share) for the same 2003 period. The increase in 2004 reflects the above items as well as higher net realized gains on investments and higher earnings from insurance operations.

       Core earnings from insurance operations were $39.7 million ($.53 per share) for the third quarter of 2004 compared to $50.8 million ($.72 per share) for the previous year's third quarter. The decrease reflects the above-mentioned hurricane losses of $.30 per share. Excluding these weather related losses, core earnings for the 2004 quarter were higher than those of the 2003 period, reflecting continuing improvement in the overall insurance operations. Core earnings from insurance operations for the first nine months of 2004 were $148.8 million ($2.00 per share), compared to $109.3 million ($1.56 per share) for the 2003 period. Details of the financial results may be found in the accompanying schedules.

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      The P&C Specialty Group reported an underwriting profit of $3.6 million for the 2004 third quarter with a combined ratio of 99.4%, including $35 million, 6.4 points, for the effect of the hurricane losses. The Specialty Group's combined ratio for the 2003 third quarter was 94.8%. Excluding the effect of these hurricane losses, the combined ratio for the 2004 third quarter improved 1.8 points compared to the 2003 period. Gross and net written premiums for the 2004 quarter grew approximately 10% and 7%, respectively, compared with the same period a year ago, reflecting continuing volume growth as well as rate increases in many of its businesses. Rate increases in the specialty operations averaged about 4% for the third quarter of 2004.

       Carl H. Lindner III, AFG Co-President and head of the P&C Group commented: "As we previously announced, the hurricanes that hit the Southeast impacted our Specialty Group's underwriting results for the 2004 third quarter. The majority of those losses affected our Property and Transportation businesses, increasing their combined ratio about 16.6 points. The Property and Transportation businesses continue to report strong gross premium growth and, apart from the hurricane losses, continue to generate strong underwriting profits."

       "Our California Workers' Compensation business continues to report strong premium growth and underwriting profits even in a declining rate environment. As a result of the workers' compensation reform in California, our rates decreased during the third quarter reflecting an improving claims environment."

       "Our Specialty Casualty group reported a $2 million underwriting profit for the quarter which included $20 million of adverse development primarily from our executive liability operation and a business in run-off. The other operations within this group continued to generate solid underwriting profits. The Specialty Casualty group's combined ratio for the 2004 nine-month period improved 3.3 points compared with the comparable 2003 period. Our Specialty Financial businesses' gross premiums for the 2004 quarter were comparable to the 2003 period. This group's underwriting results were adversely impacted by losses from the four hurricanes, increasing their combined ratio nearly 3 points. However, for the 2004 nine-month period, this group's combined ratio is more than 5 points better than the same period a year ago due to improved performance in our lender services business."

       "We expect our Property and Transportation and California Workers' Compensation businesses to continue to generate strong underwriting profits for the remainder of 2004 and into 2005. There should be continuing improvement in the underwriting results of the Specialty Casualty business and we expect the underwriting results of Specialty Financial to be essentially unchanged in 2005."

       "We continue to focus on adequate pricing with 8% increases through the first nine months of the year and an expected 6% increase for the entire year, " Mr. Lindner noted.

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About American Financial Group, Inc.

       Through the operations of the 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 retirement annuities, supplemental insurance and life products.

       Actual results could differ materially from those expected by AFG depending on certain factors including but not limited to: the unpredictability of possible future litigation if certain settlements do not become effective, 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, adequacy of loss reserves of the insurance businesses and other reserves, particularly with respect to amounts associated with asbestos and environmental claims, availability of reinsurance and ability of reinsurers to pay their obligations, competitive pressures, including the ability to obtain rate increases and other changes in market conditions that could affect AFG's insurance operations.

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       The company will hold a conference call to discuss 2004 third quarter results at 11:30 a.m. (ET) today. Toll-free telephone access will be available by dialing 1-888-396-2384. Please dial in five to ten minutes prior to the scheduled start time of the call. A replay of the call will also be available at around 1:30 p.m. (ET) today until 8:00 p.m. on October 28, 2004. To listen to the replay, dial 1-888-286-8010 and provide the confirmation code 71898863. The conference call will also be broadcast over the Internet. To listen to the call via the Internet, go to AFG's website, www.afginc.com, and follow the instructions at the Webcast link within the Investor Relations section.

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(Financial summaries follow)

This earnings release and additional Financial Supplements are available in the Investor Relations section of AFG's web site:

1. Property & Transportation includes primarily physical damage and liability

coverage for buses, trucks and recreational vehicles, inland and ocean

marine, agricultural-related products and other property coverages. For the

2004 three and nine month periods, the combined ratio includes 16.6 points and

6.3 points, respectively, for the effect of hurricane losses.

2. Specialty Casualty includes primarily excess and surplus, general liability,

executive and professional liability and customized programs for small to mid-sized businesses.

3. Specialty Financial includes risk management insurance programs for lending and leasing institutions, surety and fidelity bonds and foreign credit insurance. For the 2004 three and nine month periods, the combined ratio includes 2.9 points and .9 points, respectively, for the effect of hurricane losses.

4. California Workers' Compensation consists of a subsidiary that writes workers' compensation insurance primarily in the state of California.

5. Other includes an internal reinsurance facility and discontinued lines.