AFG Proposes to Abide by NYSE Board Rules

Cincinnati-based American Financial Group Inc. (AFG) announced changes to its board of directors to create a board that is composed of a majority of independent directors.

Keith E. Lindner, a director and co-president of the company since 1995, has decided not to stand for reelection at the annual shareholders meeting in June. AFG has proposed that this position, along with a newly added board spot, be filled with independent directors. Assuming the election of the new nominees, William A. Shutzer and Terry S. Jacobs, AFG’s Board will have nine members, five of whom are fully independent of management, and will be in full compliance with expected NYSE rules on board membership.

After serving AFG and its affiliated companies in an executive capacity for more than 20 years, Lindner will step down to pursue other interests. Shutzer has been nominated for election to the company’s board of directors at this year’s annual meeting. Shutzer has been a managing director at Lehman Bros. since October 2000. Prior to that, Shutzer was a partner of Thomas Weisel Partners and an executive of Furman Selz, each investment bankers. He has been a director of Tiffany & Co., PracticeWorks Inc and Blount Inc.

Jacobs has been chairman of the board, CEO, treasurer and a director of Regent Communications Inc. since its incorporation in 1996. Jacobs has served as a principal executive officer of various radio broadcasting companies for over 20 years. For several years in the late 1970s, Jacobs was a director and senior vice president of Great American Insurance Co. Jacobs currently serves as a director of National Grange Mutual Insurance Co. and of Capital Title Group Inc.

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