American Financial Group Announces Enhanced Approach to Auto Insurance Business
27 January 2000
American Financial Group Announces Enhanced Approach to Auto Insurance Business
CINCINNATI, Jan. 27 -- American Financial Group, Inc.
, today announced the introduction of an enhanced personal
automobile insurance program through its Great American Insurance subsidiary.
The new auto insurance program will be available to drivers across a full
spectrum from preferred to nonstandard with emphasis on preferred and standard
categories and will be offered over the Internet as well as through the more
traditional independent agent and direct marketing channels.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990909/AFGLOGO )
Carl H. Lindner III, AFG Co-President, in making the announcement said,
"This new auto insurance program will build on our existing personal auto
business and takes full advantage of Worldwide Insurance Company, the direct
marketing company we acquired in 1999. Great American's entry into the
e-commerce market will enable us to offer a quality, competitively priced
product to customers at any time and in any manner they desire. This
expansion to provide a full spectrum program is consistent with our recent
initiative at our nonstandard companies to begin providing coverage to
standard and preferred drivers in the majority of our states by the end of
2000. This new program and our enhanced distribution channels will enable us
to grow our personal auto business significantly over its recent levels."
The company is making targeted investments in technology and brand
marketing in support of its direct marketing initiative, particularly in
launching the offering over the Internet. In the first quarter the full
spectrum program will be offered over the Internet to drivers in California
and Texas. By year-end it is expected to be available in 12 other states
which, along with California and Texas, represent the majority of the U.S.
auto market. Acceleration in growth from the Internet offering is expected
beginning in 2001.
In addition to this personal auto e-commerce initiative the company is
continuing its previously announced technology initiative which entails an
enterprise-wide study of its information technology resources, needs and
opportunities. AFG expects that the initiative will entail extensive effort
and costs and may lead to substantial changes in the area, which should result
in significant cost savings, efficiencies and effectiveness. While the costs
will precede any savings to be realized, management expects benefits to
greatly exceed the costs incurred.
American Financial Group is engaged primarily in private passenger
automobile and specialty property and casualty insurance businesses and in the
sale of tax-deferred annuities and certain life and health insurance products.
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.
All statements in this press release not dealing with historical results are
forward-looking and are based on estimates, assumptions and projections.
Actual results could differ materially from those expected by AFG depending on
certain factors including but not limited to: changes in economic conditions,
regulatory actions, changes in legal environment, increased price competition
and other changes in market conditions that could affect AFG's insurance
operations.