<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
September 18, 1996 Commission File No. 1-11453
(Date of earliest event reported)
AMERICAN FINANCIAL GROUP, INC.
Incorporated under the laws IRS Employer
of Ohio Identification No. 31-1422526
One East Fourth Street
Cincinnati, Ohio 45202
Phone: (513) 579-2121
Page 1 of 3
<PAGE>
AMERICAN FINANCIAL GROUP, INC.
FORM 8-K
Item 5. Other Events.
Please see the News Release attached hereto to
Exhibit 1.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
(a) Not Applicable
(b) Not Applicable
(c) Exhibit (99) Additional Exhibits
(1) American Financial Group, Inc. News
Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
September 20, 1996
AMERICAN FINANCIAL GROUP,
INC.
By:James C. Kennedy
--------------------------
James C. Kennedy
Secretary
Page 2 of 3
<PAGE>
Exhibit 1
AMERICAN FINANCIAL GROUP
REPORTS GAIN ON SALE OF CITICASTERS
STRENGTHENS CERTAIN INSURANCE RESERVES
AND ESTIMATES HURRICANE LOSSES
(Cincinnati, Ohio: September 20, 1996) American Financial
Group, Inc. (NYSE: AFG) announced three third quarter actions
which will result in a significant net gain to be recorded in the
quarter.
Citicasters Gain
AFG reported that its subsidiaries had received
approximately $220 million in gross cash proceeds and expect to
realize a pretax gain of approximately $160 million from this
week's closing of the merger of Jacor Communications, Inc. and
Citicasters Inc. In the merger, each Citicasters shareholder,
including AFG and its subsidiaries, received $29.50 per share in
cash plus warrants to purchase Jacor common stock.
Reserve Strengthening
In a separate action, AFG reported that it had decided to
strengthen its insurance reserves relating to asbestos and other
environmental matters ("A&E"). Based upon recent insurance
industry studies of A&E exposure and revised standards for
reserving such claims, AFG has determined that an increase of its
A&E reserves is appropriate. AFG estimates that its reserves for
A&E at September 30, 1996 will be about $340 million, an amount
expected to be approximately 11 times the preceding three years'
average claim payments. This action with respect to A&E reserves
will result in a third quarter, non-cash, pretax charge of
approximately $80 million.
Hurricane Fran
While it is too soon to report the ultimate loss, AFG
estimates its loss from Hurricane Fran will be between $30
million and $40 million, net of reinsurance. However, third
quarter underwriting results, aside from Hurricane Fran, are
expected to be improved from the second quarter.
American Financial Group is engaged primarily in specialty
and multi-line property and casualty insurance businesses and in
the sale of tax-deferred annuities and certain life and health
insurance products.
Page 3 of 3
