Safeco's monoline workers compensation product covers small and mid-sized
risks with a policy premium up to $25,000 . In addition to coverage with Safeco's
expanded product, clients gain access to the company's Internet -based risk-
control materials, worker safety program audits and development, an effective
early -return-to-work program and specialized claims management.9
million ($.85 per share) compared to $129. The spread in our guidance is primarily due to the
variability of results possible in our crop business.7 points better than
the 2004 second quarter.
The California Workers' Compensation business has also generated higher
underwriting profits for the 2005 second quarter and through the first half of
2005.
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. on August 10 , 2005.5 53.7) (4.0 74.2%

Combined Ratio 89.
3.

usaa guaranty

CIGA is not an insurance company. The move gives small businesses more
flexibility in acquiring this crucial coverage through their independent
insurance agent. With Safeco Now, we
can help them complete the task in five to 15 minutes. The
increase results primarily from improved earnings in the insurance operations
and higher realized gains on investments.1 million ($1. Our overall results were dampened somewhat
by the Specialty Financial businesses, mainly due to underwriting losses
within the residual value business. We now believe that the group will not return to
profitability until late 2006 as a result of the slower than expected recovery
in our residual value business. We believe that this performance evidences the strength of our
business lines as well as the operational improvements and cost efficiencies
implemented over the last several years.
(NYSE: GFR).m. Toll-free telephone
access will be available by dialing 800-659-1942 (International dial in
617-614-2710).9 $144.81 $1.12 $ 31.5% 62.0% 101.

underwrites surety

S.2 million ($. The combined ratio improved to 89. For the first half of the year, this
group's underwriting profit was up 22% compared with the 2004 period. Please dial in 5 to 10 minutes prior to the scheduled start
time of the call.5

(a) Reflects the implementation of an accounting change related to long
duration contracts mandated by Statement of Position 03-1.3% 27.1% 96.

coverages geico

CINCINNATI, American Financial Group,
Inc.1
million ($1. While certain
specialty operations experienced solid volume growth, overall premium levels
for the specialty insurance operations were impacted by the moderating rate
environment.8%, an improvement of 2.
I am also pleased that our Specialty Casualty Group continued to generate a
solid underwriting profit and we are experiencing lower adverse reserve
development compared to last year. Core net operating earnings for
the first six months of 2005 were $38.
All statements in this press release not dealing with historical results are
forward-looking and are based on estimates, assumptions and projections.2 $ 1,909.4
Costs and expenses 852.46
Realized investment
gains (losses) .75 $1.5%


Aggregate Specialty
Group 89.
4.

Please submit reinsurance companies to the Reinsurance/Carriers category.

Please submit agents, brokers, or online quotes sites to the proper subcategory of Agents and Marketers.

guaranty surety

CIGA consists of three separate
funds that guarantee different lines of insurance: workers'
compensation; personal lines (auto, homeowners, personal liability);
and other (commercial property, liability, products liability,
supplemental and pollution).

Safeco Offers Workers Compensation as Stand-Alone Product in 25 States

American Financial Group Announces Continuing Strong Growth in Earnings From Insurance Operations in the Second Quarter

(NYSE: AFG; Nasdaq) today reported net earnings for the 2005 second
quarter of $81.6 million ($1. As expected , our Property and Transportation
and California Workers' Compensation businesses generated excellent margins."
The Annuity, Supplemental Insurance and Life Group reported core net
operating earnings of $19.

Conference Call
The company will hold a conference call to discuss 2005 second quarter
results at 11:30 a.6 $55.31
Other (.2%
Policyholder
dividend ratio .

insurer brk

----

Market-Leading System to Support All Claim Functions for Entire Claims
Organization

The California Insurance Guarantee Association (CIGA), the
country 's largest guarantee fund, and Guidewire Software(R), a leading
provider of solutions to property and casualty and workers'
compensation insurers, today announced that CIGA has selected
Guidewire ClaimCenter(R) as its new claims system. "We will bring
our extensive experience in both workers ' compensation and property
and casualty insurance to help CIGA implement and deploy a world-class
claims solution. Many investors and analysts focus on this
non-GAAP measure which sets aside items that may not be indicative of core
operations, such as net realized gains (losses) on investments , discontinued
operations, cumulative effect of accounting changes and other non-recurring
items . A reconciliation of this non-GAAP measure to net
earnings is included in the accompanying summary of earnings. For the
2005 six month period, gross written premiums were at about the same level as
the same period a year earlier while net written premiums were about 7%
higher. Unfavorable development within the executive and
professional liability operations was lower than the same period a year ago
and the excess and surplus and targeted markets businesses continued to
generate strong underwriting profits.
Examples of such forward-looking statements include statements relating to:
the Company's expectations concerning market and other conditions and their
effect on future premiums , revenues, earnings and investment activities;
recoverability of asset values; expected losses and the adequacy of reserves
for asbestos, environmental pollution and mass tort claims; rate increases and
improved loss experience.9 8.9% 30.

brk rrsps

California Insurance Guarantee Association Selects Guidewire ClaimCenter

"Most importantly, Guidewire demonstrated an unmatched
level of commitment to our success at CIGA. CIGA
was created to provide only a limited form of protection in the event
of insurer insolvency. Guidewire
applies modern software technology to help insurance carriers run
their core operations and reduce costs. More information about Safeco can
be found at http: //www.safeco. In this competitive market, we
expect our overall gross premiums will be down modestly compared to 2004 and
net written premiums should grow between 8% and 10%.
For the 2005 second quarter, statutory premiums were slightly lower than
the 2004 second quarter reflecting primarily lower single premium fixed
annuity sales, partially offset by higher sales in the supplemental insurance
lines.afginc.com, and follow the instructions at the
Webcast link within the Investor Relations section.com.4
119.10 .35
Common Shares Outstanding 77.2%
Expense ratio 27.1%
Specialty
Casualty 95.4% 96.5% 106. California Workers' Compensation consists of a subsidiary that writes
workers' compensation insurance primarily in the state of California.

policyholders safeco

Net earnings for the first six
months of 2005 were $144. Through the first half of
the year, our underwriting profit is $39 million above the comparable 2004
period, an outstanding result."
The Property and Transportation businesses reported stellar results with a
combined ratio of 80.
Despite the lower rate environment, gross written premiums grew 2% and 5%,
respectively, for the three and six month periods of 2005 compared to the 2004
periods, reflecting solid volume growth and retention . Our results demonstrate that our capital allocation
strategy, coupled with our pricing and underwriting discipline, continue to
meet the challenges of our markets within the commercial insurance industry . (EDT) tomorrow, on August 3, 2005.18 .4% 94.6%

Supplemental:
Gross Written Premiums:
Property +
Transportation $313 $338 (7%) $590 $578 2%
Specialty Casualty 363 388 (6%) 721 752 (4%)
Specialty Financial 119 121 (2%) 235 228 3%
California Workers'
Compensation 92 90 2% 196 186 5%
Other 3 (1) NM 4 (2) NM
$890 $936 (5%) $1,746 $1 ,742 -

Net Written Premiums:
Property +
Transportation $235 $206 14% $438 $353 24%
Specialty Casualty 189 194 (2%) 375 392 (4%)
Specialty Financial 91 95 (5%) 187 186 -
California Workers'
Compensation 83 81 3% 176 165 7 %
Other 17 13 29% 32 30 5%
$615 $589 4% $1,208 $1,126 7%

Combined Ratio (GAAP):
Property +
Transportation 80.0% 90. Specialty Casualty includes primarily excess and surplus, general
liability, executive and professional liability and customized programs
for small to mid-sized businesses.

policyholders iras

Safeco currently sells workers compensation coverage in 39
states as a supporting line to businessowners or mid-market package policies."
The 25 states where Safeco's monoline workers compensation is available
are: Arkansas, Colorado, Connecticut, Georgia , Idaho, Iowa, Illinois, Indiana,
Kansas, Maryland, Michigan, Minnesota, Missouri, Nevada, New Hampshire ,
Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont,
Virginia and Wisconsin ."

Safeco, in business since 1923, is a Fortune 500 property and casualty
insurance company based in Seattle.
Craig Lindner and Carl Lindner III, AFG's Co-Chief Executive Officers,
jointly stated that second quarter core operating earnings per share were 21%
above last year's second quarter results and ahead of expectations.4%, 4. Lindner continued, "As expected, the 2005 underwriting profits in our
P+C Specialty Group have increased significantly compared to last year at this
time. The strong underwriting profits from most businesses within our highly
diversified group are more than adequate to cushion a few of our
underperforming operations.afginc.8 1,566.6 163.1% 63. Other includes an internal reinsurance facility and discontinued lines.

headquarted guaranty

SEATTLE, Safeco (Nasdaq: SAFC) announced today it
is now offering its workers compensation product on a stand-alone -- or
monoline -- basis in 25 states.7) (1.4)
Cumulative effect of
accounting change(a) - - - (1.2 76.1% .

usaa surety

CIGA was created by the California Legislature to pay claims of
insolvent insurance carriers, and serves as a critical element of the
California insurance market.
(Logo: http://www.5 million ($1.newscom. Details of
the financial results may be found in the accompanying schedules.

Business Segment Results
The P+C specialty insurance operations generated an underwriting profit of
$60."
"As I indicated previously, we are focusing on profitability and
maintaining rate adequacy which has impacted our overall gross written premium
level. For the
2005 three and six month periods , gross written premiums were 6% and 4%,
respectively, below the 2004 periods, reflecting lower volume resulting from
softer pricing in many of the commercial casualty markets.4 28.1 23 .6% 101.

chubb allstate

ClaimCenter will
support the end-to-end claim handling process for all lines of
insurance supported by CIGA, including workers' compensation, personal
lines, and other commercial lines.
After an evaluation of available claims systems, CIGA selected
Guidewire ClaimCenter because of its comprehensive claim handling
features, robust technology, and ability to support CIGA's complex
requirements , including conversion of existing claims from multiple
sources.
"Guidewire ClaimCenter provides a modern claim handling experience
to our adjusters and third-party administrators," said Lawrence
Mulryan, Executive Director of the California Insurance Guarantee
Association.
ClaimCenter 's flexible business rules enable claims organizations to
optimize and monitor the claim process.

"

About the California Insurance Guarantee Association

The California Insurance Guarantee Association (CIGA) is an
organization created by the California Legislature in 1969 to pay
claims of insolvent insurance carriers that are licensed to do
business in the state of California.

About Guidewire Software

Guidewire Software is a leading provider of technology solutions
to property and casualty and workers' compensation insurers. This
is a benefit to our insureds , a direct effect of recent reform legislation.
We believe that our current rates are adequate to provide strong returns.72
Book Value Per Share (Excluding unrealized
gains on fixed maturities) $ 30.
P+C SPECIALTY GROUP UNDERWRITING RESULTS
(In Millions)


Three months Six Months
ended Pct.

coverages reinsurance

A thirteen-member board of
governors, appointed by the insurance commissioner and the
legislature, manages the association . All were
developed with the goal of lowering claims costs and insurance rates, while
improving the safety of employees and their ability to return to work quickly
after an accident.

7 million ($. As planned, net written premiums are up, reflecting the effect of our
decision to retain a greater portion of our business, primarily within our
profitable Property and Transportation group .8%, 3.m.2
Other (3.1% .0% 90.4% 94.

This category is for insurance carriers (actual insurance companies, not third party administrators, brokers or agents ).

annuity aif

And a modern technology architecture, web client, and web
services support ensure lower total cost of ownership in any
environment.04 per share), significantly above the $55.
Core earnings from insurance operations were $71.91 per
share) for the second quarter of 2005 compared to $55.75 per
share) for the previous year's second quarter.81 per share),
compared to $109. The
company is also pursuing sales of its remaining coal interests in Ohio and
Pennsylvania.8 points from the 2004 period.3 points from the 2004 period.1 million, 18% above the comparable 2004
period, reflecting improved results in each of this group's business lines. Single premium annuity sales in 2005 include
approximately $100 million of fixed annuity premiums from policyholders of an
unaffiliated company in rehabilitation who chose to transfer their funds to
our company in the 2005 first quarter."
A reconciliation of this group's "core net operating earnings," a non-GAAP
measure, to net income as well as further details may also be found in the
earnings release issued today by Great American Financial Resources, Inc.

About American Financial Group, Inc.6 84.6) (.2 74.59 $ 29.8% 93.1% 90.

reinsurance usaa

"
ClaimCenter provides the functionality and support needed by
CIGA's claims organization to meet its most important business
objectives.
"As a company based in California, we are proud to serve the state
by delivering a powerful, modern claims solution to CIGA," said John
Raguin, chief executive officer, Guidewire Software. Guidewire ClaimCenter and
Guidewire PolicyCenter provide a modern, web-based platform for claims
and underwriting operations in all lines of business. Gross written premiums for the 2005 second
quarter were 2% below the 2004 period as reductions in certain lender services
operations more than offset growth in the profitable fidelity and crime lines. As of June 30, 2005, the P+C Group had
recorded $326.
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 , the availability of capital, regulatory
actions and changes in the legal environment affecting AFG or its customers,
tax law changes, levels of natural catastrophes, terrorist activities,
including any nuclear, biological, chemical or radiological events, incidents
of war and other major losses , development of insurance loss reserves 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, trends in mortality and morbidity,
competitive pressures, including the ability to obtain rate increases, and
changes in debt and claims paying ratings.6 224.7 141.8)

Net earnings $81.2% 30.2% .

usaa insurer

Account selling made easy
Independent agents and brokers can quote workers compensation coverage , or
a client's full commercial account, by using Safeco Now(R).75 per share) reported for the second quarter of last year. We continue to expect
that our overall average rate will remain relatively flat for the remainder of
the year. Through the first half of the year, however, such premiums were
2% higher than the 2004 period as strong volume growth in the transportation
and inland marine businesses more than offset the reduced premiums in the crop
and excess property insurance operations .8%, an
improvement of 2. Rate decreases
averaged about 11% for the 2005 second quarter and 9 % through the first half
of the year.m.75 $1.2%
California Workers'
Compensation 75.8% 93.6%

Notes:
1.

reinsurance safeco

Business Editors

GLENDALE + SAN MATEO , Calif. "We give business
owners greater opportunity to protect what they have built and agents the
tools they need to serve those clients effectively. The product is particularly
competitive for risks involving clerical office employees, retails stores,
physicians and outside sales. "Many insurers
make agents wait one to two weeks for commercial quotes.73 per share) for the same 2004 period. Core earnings from insurance
operations for the first half of 2005 were $141. Based on the company 's strong
results through the first half of this year, management believes it is
appropriate to revise upward the core earnings guidance for 2005 to between
$3. As a result of this improved claims position, we have recently
filed for a 25 percent decrease in base rates, effective June 30, 2005 .
The Specialty Casualty group reported a solid underwriting profit for the
2005 second quarter with a combined ratio of 95.6 points better than the
comparable 2004 period.0
Related income taxes 48.1

Other items, net of tax:
Realized investment
gains (losses ) 14.1

Diluted Earnings (Loss)
per Common Share:
Core from insurance
operations $.91 $.06) (.7 78.6

AMERICAN FINANCIAL GROUP, INC. ended Pct.8% 63.6% 81.8%
Specialty
Financial 109.

reinsurance safeco

The
system needed to be flexible enough to accept new insolvencies and
scale to support over 1,000 claims handlers across multiple locations. The new system will enable CIGA to:

Define consistent claim handling processes across multiple
insolvencies and locations

Ensure compliance with all relevant regulatory requirements of
the State of California

Convert open claims from multiple existing sources

Adapt the solution to support possible insolvencies in the
future

"Guidewire ClaimCenter is the best solution we found for a large
and complex systems environment such as ours," said Hal Fedora,
Director of Information Technology and Audit, California Insurance
Guarantee Association. "Given the scope and importance of this
project, Guidewire's 100% track record in customer deployments was a
crucial factor in our decision. Claims executives can define,
enforce, and continually refine their preferred claim handling
practices.com. Net written premiums for
the 2005 quarter were 4% above the 2004 period, reflecting continued
reductions in premiums ceded under reinsurance agreements. Further details of the P+C Specialty operations may be found in the
accompanying schedules. Based on information available at this time, we
currently estimate that pre-tax losses, net of reinsurance, from Hurricanes
Dennis and Emily, which will be recorded in the 2005 third quarter, will be
less than $1 million . A replay of the call will also be available at around
1:30 p.

This earnings release and additional Financial Supplements are available
in the Investor Relations section of AFG's web site: http://www.9 83.85 $1.8% 99.

allstate headquarted

"
Guidewire ClaimCenter is the leading end-to -end claims system for
property and casualty and workers' compensation insurance. For more
information , please visit www.com

NOTE: Guidewire Software and Guidewire ClaimCenter are registered
trademarks of Guidewire Software, Inc.

Customer support
Workers compensation is often cited by small-business owners as a leading
challenge in managing their operations.
(Logo: http:/ /www.
Carl Lindner III commented: "For the second quarter and first six months
of 2005, our P+C Specialty Group has reported significantly higher
underwriting profits compared to the 2004 periods .5 million, 73% above the 2004 second quarter. The
fidelity and crime and financial institutions operations continued to generate
excellent underwriting profits.
Mr.

AMERICAN FINANCIAL GROUP, INC.1% 92.

rrsps guaranty

Available products are:
-- Businessowners
-- Mid-market commercial package
-- Commercial auto
-- Workers compensation
-- Commercial umbrella
-- Monoline commercial property
-- Monoline general liability
-- Personal auto
-- Homeowners
-- Dwelling fire
-- Motorcycle
-- Surety

"When agents need to provide customers with a quote right away, they can
take control of the situation with Safeco Now," Hughes said. In addition, the
company's net earnings for the 2005 third quarter will include an after-tax
gain of approximately $19 million from the sale of land in Illinois with
recoverable coal reserves, which was completed at the end of July. Overall average rates in the 2005 second quarter were up
slightly compared to the same period a year earlier. Gross written
premiums for the 2005 second quarter were 7% below the same period a year ago,
primarily reflecting the effect of lower commodity prices earlier in the year
which were used to establish crop insurance coverages and lower volume
resulting from competitive pricing within the excess property insurance
operations . This
group's combined ratio for the first six months of 2005 was 81. This business has continued to benefit from the improving claims
environment resulting from the workers' compensation reforms enacted in
California.3 million, net of reinsurance recoverables, for various
liability coverages related to environmental, asbestos and other mass tort
claims.8 million for the 2005 second quarter compared to
$17.
Craig Lindner commented, "This is the eighth consecutive quarter in which
this group's operating earnings were higher than the comparable prior year
period.6 1,684 .1 109.01 .02)
Cumulative effect of
accounting change(4) - - - (.0% 80.

mobilehome usaa

small businesses," said Mike
Hughes, senior vice president of Safeco Business Insurance. Excellent
underwriting results were sustained by the specialty property and casualty
("P+C") operations and the operating earnings of the annuity, supplemental and
life insurance operations continued to improve. The underwriting profit for this group of businesses
totaled about $38.
Statutory premiums of $635 million in the first six months of 2005 were 14 %
higher than in the same period a year ago as a result of increased sales of
single premium annuities . To
listen to the replay, dial 888-286-8010 (International dial in 617-801-6888)
and provide the confirmation code 13258741. The conference call will also be
broadcast over the Internet. To listen to the call via the Internet, go to
AFG's website, http://www.
2.

headquarted annuities

The company sells insurance to drivers,
home owners, and owners of small- and mid-sized businesses through a national
network of independent agents and brokers.com/cgi-bin/prnh/20041208/CLW086LOGO)
In addition to net earnings, AFG has consistently utilized "core
earnings," a non-GAAP financial measure commonly used in the insurance
industry, as an economic measure.1 million ($1.46 per share) for the 2004 period .40 and $3. Gross written premiums for the 2005 quarter were
approximately 5% lower than the same period a year ago.9% for the 2005 second quarter, 3. Net written premiums for the 2005
three and six month periods grew 14% and 24%, respectively, over the 2004
periods due primarily to lower premiums ceded under reinsurance agreements
principally within the inland marine and crop insurance operations .

Forward Looking Statements
This press release contains certain statements that may be deemed to be
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.5 $ 896.9
Core earnings from
insurance operations 71.2 55.5 $129.73

Average number of
Diluted Shares 78.9% 84.8% 84. Specialty Financial includes risk management insurance programs for
lending and leasing institutions, surety and fidelity products and
trade credit insurance.

headquarted annuity

In order to streamline claims handling
and standardize disparate claims adjudication processes in a highly
complex environment, CIGA embarked on identifying a claims management
system to leverage across all claims handlers and insolvencies.com/cgi-bin/prnh/20030428/SFM037LOGO )
"Expanding Safeco's appetite to include monoline workers compensation
signals the effectiveness of our automated underwriting, our confidence in
this line and our desire to better serve U.70 per share.5 million in the 2005 second quarter, 90% above the same quarter last
year.6 points better than the 2004
second quarter.
The Specialty Insurance Group's combined ratio for the first six months of
2005 was 90.
As previously indicated, the P+C Group is undertaking a current review of its
asbestos and environmental ("A+E") exposures, which is expected to be
concluded by the end of the year. AND SUBSIDIARIES
SUMMARY OF EARNINGS
(In Millions, Except Per Share Data)

Three months ended Six months ended
June 30, June 30,
2005 2004 2005 2004

Operating revenues $ 972.05) (.

June 30, December 31,
2005 2004

Selected Balance Sheet Data:
Total Cash and Investments $16,203 $15,637
Long-term Debt $ 1,012 $ 1,029
Payable to Subsidiary Trusts
(Issuers of Preferred Securities) $78 $78
Shareholders ' Equity $ 2,558 $ 2,431

Book Value Per Share $ 33.
June 30, Change June 30, Change
2005 2004 2005 2004

Gross written
premiums $890 $936 (5%) $1,746 $1,742 -

Net written premiums $615 $589 4% $1,208 $1,126 7%

Ratios (GAAP):
Loss + LAE ratio 62.

reinsurance guaranty

guidewire. Safeco's online
sales-and-service platform allows users to write up to 12 different personal,
commercial and surety products in just minutes. AFG owns 82% of GFR common stock and a proportional share of its
earnings is included in AFG's results. (EDT) on August 3, 2005 until 8:00 p.01) (.02)

Net earnings $1.04 $.

insurer wawanesa

newscom. AFG believes that excluding the impact of these items is useful in
analyzing operating trends.
The Specialty Financial group continues to be impacted by higher
underwriting losses in the residual value business , driving the combined ratio
in the 2005 three and six month periods higher than the 2004 periods .
Gross written premiums are up modestly for the first half of 2005 resulting
from growth in the dealer services and fidelity and crime businesses in the
2005 first quarter.9 million for the 2004 second quarter. Spread compression, caused by the
general level of interest rates, has been a challenge for the annuity industry
over the last several years. However, we believe our group is well positioned
from a financial and operational standpoint to pursue growth internally and
through acquisitions .4 $1,729.9 811.0 . 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.
5.

Please submit third party administrators to the Third Party Administrators category.

allstate iras

---

- - kjjkjk

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