SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549


                                 FORM 10-Q


          Quarterly Report Pursuant to Section 13 or 15(d) of the
                      Securities Exchange Act of 1934


For the Quarterly Period Ended                          Commission File
September 30, 1999                                      No. 1-7361



                      AMERICAN FINANCIAL CORPORATION




Incorporated under                                      IRS Employer I.D.
the Laws of Ohio                                        No. 31-1544320


              One East Fourth Street, Cincinnati, Ohio 45202
                              (513) 579-2121






   Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months, and (2) has been subject to such
filing requirements for the past 90 days. Yes  X    No


   As of November 1, 1999, there were 10,593,000 shares of the Registrant's
Common Stock outstanding, all of which were owned by American Financial
Group, Inc.











                               Page 1 of 21

<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q
                                  PART I
                           FINANCIAL INFORMATION

              AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEET
                          (Dollars In Thousands)
<TABLE>
<CAPTION>
                                                      September 30,   December 31,
                                                              1999           1998
<S>                                                   <C>            <C>
Assets:
 Cash and short-term investments                       $   311,061    $   289,944
 Investments:
   Fixed maturities - at market
     (amortized cost - $10,040,299 and $9,920,407)       9,952,899     10,323,407
   Other stocks - at market
     (cost - $231,533 and $207,345)                        427,733        430,345
   Investment in investee corporation                      191,179        192,138
   Policy loans                                            217,205        220,496
   Real estate and other investments                       268,085        268,171
       Total investments                                11,057,101     11,434,557

 Recoverables from reinsurers and prepaid
   reinsurance premiums                                  2,124,232      1,973,895
 Agents' balances and premiums receivable                  709,348        618,198
 Deferred acquisition costs                                563,537        464,047
 Other receivables                                         214,727        318,154
 Assets held in separate accounts                          243,444        120,049
 Prepaid expenses, deferred charges and other assets       420,003        343,554
 Cost in excess of net assets acquired                     332,594        285,469

                                                       $15,976,047    $15,847,867
<PAGE>
Liabilities and Capital:
 Unpaid losses and loss adjustment expenses            $ 4,876,564    $ 4,773,377
 Unearned premiums                                       1,260,249      1,232,848
 Annuity benefits accumulated                            5,473,639      5,449,633
 Life, accident and health reserves                        369,370        341,595
 Payable to American Financial Group, Inc.                 407,768        270,500
 Long-term debt:
   Holding companies                                       104,544        315,536
   Subsidiaries                                            239,188        176,896
 Liabilities related to separate accounts                  243,444        120,049
 Accounts payable, accrued expenses and other
   liabilities                                           1,109,753      1,112,442
       Total liabilities                                14,084,519     13,792,876

 Minority interest                                         497,296        524,335

 Shareholders' Equity:
   Preferred Stock (liquidation value $72,154)              72,154         72,154
   Common Stock, no par value
     - 20,000,000 shares authorized
     - 10,593,000 shares outstanding                         9,625          9,625
   Capital surplus                                         956,621        943,359
   Retained earnings                                       282,032        157,218
   Unrealized gains on marketable securities, net           73,800        348,300
       Total shareholders' equity                        1,394,232      1,530,656

                                                       $15,976,047    $15,847,867
</TABLE>





                                  2
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

              AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED STATEMENT OF EARNINGS
                              (In Thousands)
<TABLE>
<CAPTION>
                                                Three months ended          Nine months ended
                                                   September 30,               September 30,
                                                  1999          1998          1999          1998
<S>                                          <C>         <C>           <C>           <C>
Income:
  Property and casualty insurance
    premiums                                  $585,560    $  696,537    $1,680,561    $2,080,003
  Life, accident and health premiums            26,463        50,434        77,418       145,710
  Investment income                            215,872       223,322       632,048       672,760
  Equity in net earnings (loss) of investee    (14,797)       (5,518)        2,639        26,396
  Realized gains (losses) on sales of:
    Securities                                  (5,744)       14,302         5,981        28,890
    Investee and subsidiaries                     -           11,090          -           20,510
    Other investments                             -             -             -            6,843
  Other income                                  47,374        42,262       105,501       106,112
                                               854,728     1,032,429     2,504,148     3,087,224

Costs and Expenses:
  Property and casualty insurance:
    Losses and loss adjustment expenses        423,402       513,537     1,188,050     1,577,440
    Commissions and other underwriting
      expenses                                 171,824       201,777       506,646       586,409
  Annuity benefits                              66,516        64,514       194,977       204,735
  Life, accident and health benefits            17,365        40,547        52,238       115,208
  Interest charges on borrowed money            16,494        19,005        49,715        54,059
  Minority interest expense                     10,626        15,048        35,778        38,135
  Other operating and general expenses          99,161        88,823       263,084       248,655
                                               805,388       943,251     2,290,488     2,824,641

Earnings before income taxes,
  extraordinary items and cumulative
  effect of accounting change                   49,340        89,178       213,660       262,583
Provision for income taxes                      18,460        31,185        78,257        98,594

Earnings before extraordinary items and
  cumulative effect of accounting change        30,880        57,993       135,403       163,989

Extraordinary items - loss on
  prepayment of debt                              -              (33)       (3,849)         (754)
Cumulative effect of accounting change            -             -           (3,854)         -

Net Earnings                                  $ 30,880    $   57,960    $  127,700    $  163,235
</TABLE>






                                  3
<PAGE>

                    AMERICAN FINANCIAL CORPORATION 10-Q

              AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
         CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
                          (Dollars in Thousands)


<TABLE>
<CAPTION>
                                                  Common Stock                    Unrealized
                                     Preferred     and Capital       Retained        Gain on
                                         Stock         Surplus       Earnings     Securities           Total
<S>                                   <C>            <C>            <C>            <C>           <C>
Balance at January 1, 1999             $72,154        $952,984       $157,218       $348,300      $1,530,656

Net earnings                              -               -           127,700           -            127,700
Change in unrealized                      -               -              -          (274,500)       (274,500)
  Comprehensive income (loss)                                                                       (146,800)

Dividends on Preferred Stock              -               -            (2,886)          -             (2,886)
Capital contribution from parent          -              9,200           -              -              9,200
Other                                     -              4,062           -              -              4,062

Balance at September 30, 1999          $72,154        $966,246       $282,032       $ 73,800      $1,394,232






Balance at January 1, 1998             $72,154        $936,154       $ 34,350       $341,200      $1,383,858

Net earnings                              -               -           163,235           -            163,235
Change in unrealized                      -               -              -            12,300          12,300
  Comprehensive income (loss)                                                                        175,535

Dividends on Preferred Stock              -               -            (2,886)          -             (2,886)
Capital contribution from parent          -             12,530           -              -             12,530
Other                                     -                 56           -              -                 56

Balance at September 30, 1998          $72,154        $948,740       $194,699       $353,500      $1,569,093
</TABLE>













                                  4
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

              AMERICAN FINANCIAL CORPORATION AND SUBSIDIARIES
                   CONSOLIDATED STATEMENT OF CASH FLOWS
                              (In Thousands)

                                                          Nine months ended
                                                            September 30,
                                                            1999          1998
Operating Activities:
  Net earnings                                        $  127,700    $  163,235
  Adjustments:
   Extraordinary items                                     3,849           754
   Cumulative effect of accounting change                  3,854          -
   Depreciation and amortization                          68,548        71,589
   Annuity benefits                                      194,977       204,735
   Equity in net earnings of investee                     (2,639)      (26,396)
   Realized gains on investing activities                (20,733)      (80,357)
   Deferred annuity and life policy acquisition costs    (87,009)      (87,459)
   Increase in reinsurance and other receivables        (123,522)     (229,730)
   Increase in other assets                              (58,870)      (37,893)
   Increase in insurance claims and reserves             116,590       293,264
   Increase in other liabilities                          81,495       111,765
   Increase in minority interest                          17,026        14,743
   Dividends from investee                                 3,600         3,600
   Other, net                                            (13,082)      (12,022)
                                                         311,784       389,828
Investing Activities:
  Purchases of and additional investments in:
   Fixed maturity investments                         (1,547,160)   (1,682,077)
   Equity securities                                     (56,041)      (54,971)
   Subsidiaries                                         (204,942)      (31,825)
   Real estate, property and equipment                   (63,496)      (49,425)
  Maturities and redemptions of fixed maturity
   investments                                           801,833     1,017,004
  Sales of:
   Fixed maturity investments                            885,901       544,722
   Equity securities                                      45,887        19,119
   Subsidiaries                                             -          164,589
   Real estate, property and equipment                    24,394        48,634
  Cash and short-term investments of acquired (former)
   subsidiaries, net                                      19,454       (18,146)
  Decrease (increase) in other investments                12,734        (9,363)
                                                         (81,436)      (51,739)
<PAGE>
Financing Activities:
  Fixed annuity receipts                                 330,744       358,659
  Annuity surrenders, benefits and withdrawals          (524,148)     (538,912)
  Additional long-term borrowings                        212,232       217,537
  Reductions of long-term debt                          (366,464)     (159,383)
  Borrowings from AFG                                    254,100          -
  Payments to AFG                                       (121,300)      (52,500)
  Capital contribution                                    14,000        14,000
  Repurchases of trust preferred securities               (5,509)         -
  Cash dividends paid                                     (2,886)       (2,886)
                                                        (209,231)     (163,485)

Net Increase in Cash and Short-term Investments           21,117       174,604

Cash and short-term investments at beginning
  of period                                              289,944       231,227

Cash and short-term investments at end of period      $  311,061    $  405,831




                                  5
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A. Accounting Policies

   Basis of Presentation  The accompanying consolidated financial
   statements for American Financial Corporation ("AFC") and subsidiaries
   are unaudited; however, management believes that all adjustments
   (consisting only of normal recurring accruals unless otherwise
   disclosed herein) necessary for fair presentation have been made.  The
   results of operations for interim periods are not necessarily
   indicative of results to be expected for the year.  The financial
   statements have been prepared in accordance with the instructions to
   Form 10-Q and therefore do not include all information and footnotes
   necessary to be in conformity with generally accepted accounting
   principles.

   Certain reclassifications have been made to prior years to conform to
   the current year's presentation.  All significant intercompany balances
   and transactions have been eliminated.  All acquisitions have been
   treated as purchases.  The results of operations of companies since
   their formation or acquisition are included in the consolidated
   financial statements.

   The preparation of the financial statements requires management to make
   estimates and assumptions that affect the amounts reported in the
   financial statements and accompanying notes.  Changes in circumstances
   could cause actual results to differ materially from those estimates.

   Investments  All fixed maturity securities are "available for sale" and
   reported at fair value with unrealized gains and losses reported as a
   separate component of shareholders' equity.  Short-term investments are
   carried at cost; loans receivable are carried primarily at the
   aggregate unpaid balance.  Premiums and discounts on mortgage-backed
   securities are amortized over their expected average lives using the
   interest method.

   Gains or losses on sales of securities are recognized at the time of
   disposition with the amount of gain or loss determined on the specific
   identification basis.  When a decline in the value of a specific
   investment is considered to be other than temporary, a provision for
   impairment is charged to earnings and the carrying value of that
   investment is reduced.

   Investment in Investee Corporation  Investments in securities of 20%-
   to 50%-owned companies are generally carried at cost, adjusted for
   AFC's proportionate share of their undistributed earnings or losses.

   Cost in Excess of Net Assets Acquired  The excess of cost of
   subsidiaries and investees over AFC's equity in the underlying net
   assets ("goodwill") is being amortized over 40 years.
<PAGE>
   Insurance  As discussed under "Reinsurance" below, unpaid losses and
   loss adjustment expenses and unearned premiums have not been reduced
   for reinsurance recoverable.  To the extent that unrealized gains
   (losses) from securities classified as "available for sale" would
   result in adjustments to deferred acquisition costs and policyholder
   liabilities had those gains (losses) actually been realized, such
   balance sheet amounts are adjusted, net of deferred taxes.

      Reinsurance  In the normal course of business, AFC's insurance
   subsidiaries cede reinsurance to other companies to diversify risk and
   limit maximum loss arising from large claims.  To the extent that any
   reinsuring companies are unable to meet obligations under the
   agreements covering reinsurance ceded, AFC's insurance subsidiaries
   would remain liable.  Amounts recoverable from reinsurers are estimated
   in a manner consistent with the claim liability associated with the
   reinsured policies.  AFC's insurance subsidiaries report as assets (a)
   the estimated reinsurance recoverable on unpaid losses, including an
   estimate for losses incurred but not reported, and (b) amounts paid to
   reinsurers applicable to the unexpired terms of policies in force.  AFC's


                                  6
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

   insurance subsidiaries also assume reinsurance from other companies.
   Income on reinsurance assumed is recognized based on reports received
   from ceding reinsurers.

      Deferred Acquisition Costs  Policy acquisition costs (principally
   commissions, premium taxes and other underwriting expenses) related to
   the production of new business are deferred ("DPAC").  For the property
   and casualty companies, the deferral of acquisition costs is limited
   based upon their recoverability without any consideration for
   anticipated investment income.  DPAC is charged against income ratably
   over the terms of the related policies.  For the annuity companies,
   DPAC is amortized, with interest, in relation to the present value of
   expected gross profits on the policies.

      Unpaid Losses and Loss Adjustment Expenses  The net liabilities
   stated for unpaid claims and for expenses of investigation and
   adjustment of unpaid claims are based upon (a) the accumulation of case
   estimates for losses reported prior to the close of the accounting
   period on the direct business written; (b) estimates received from
   ceding reinsurers and insurance pools and associations; (c) estimates
   of unreported losses based on past experience; (d) estimates based on
   experience of expenses for investigating and adjusting claims and
   (e) the current state of the law and coverage litigation.  These
   liabilities are subject to the impact of changes in claim amounts and
   frequency and other factors.  In spite of the variability inherent in
   such estimates, management believes that the liabilities for unpaid
   losses and loss adjustment expenses are adequate.  Changes in estimates
   of the liabilities for losses and loss adjustment expenses are
   reflected in the Statement of Earnings in the period in which
   determined.

      Annuity Benefits Accumulated  Annuity receipts and benefit payments
   are recorded as increases or decreases in "annuity benefits
   accumulated" rather than as revenue and expense.  Increases in this
   liability for interest credited are charged to expense and decreases
   for surrender charges are credited to other income.

      Life, Accident and Health Reserves  Liabilities for future policy
   benefits under traditional life, accident and health policies are
   computed using the net level premium method.  Computations are based on
   anticipated investment yield, mortality, morbidity and surrenders and
   include provisions for unfavorable deviations.  Reserves established
   for accident and health claims are modified as necessary to reflect
   actual experience and developing trends.

      Assets Held In and Liabilities Related to Separate Accounts
   Separate account assets and related liabilities represent variable
   annuity deposits.
<PAGE>
      Premium Recognition  Property and casualty premiums are earned over
   the terms of the policies on a pro rata basis.  Unearned premiums
   represent that portion of premiums written which is applicable to the
   unexpired terms of policies in force.  On reinsurance assumed from
   other insurance companies or written through various underwriting
   organizations, unearned premiums are based on reports received from
   such companies and organizations.  For traditional life, accident and
   health products, premiums are recognized as revenue when legally
   collectible from policyholders.  For interest-sensitive life and
   universal life products, premiums are recorded in a policyholder
   account which is reflected as a liability.  Revenue is recognized as
   amounts are assessed against the policyholder account for mortality
   coverage and contract expenses.

      Policyholder Dividends  Dividends payable to policyholders are
   included in "Accounts payable, accrued expenses and other liabilities"
   and represent estimates of amounts payable on participating policies
   which share in favorable underwriting results.  The estimate is accrued
   during the period in which the related premium is earned.  Changes in
   estimates are included in income in the period determined.
   Policyholder dividends do not become legal liabilities unless and until
   declared by the boards of directors of the insurance companies.


                                  7
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


   Minority Interest  For balance sheet purposes, minority interest
   represents (i) the interests of noncontrolling shareholders in AFC
   subsidiaries, including preferred securities issued by trust
   subsidiaries of American Annuity Group ("AAG"), and (ii) the American
   Financial Group ("AFG") direct ownership interest in American Premier
   Underwriters, Inc. ("American Premier" or "APU") and American Financial
   Enterprises, Inc.  For income statement purposes, minority interest
   expense represents those shareholders' interest in the earnings of AFC
   subsidiaries as well as accrued distributions on the trust preferred
   securities.

   Issuances of Stock by Subsidiaries and Investees  Changes in AFC's
   equity in a subsidiary or an investee caused by issuances of the
   subsidiary's or investee's stock are accounted for as gains or losses
   where such issuance is not a part of a broader reorganization.

   Income Taxes  AFC files consolidated federal income tax returns which
   include all 80%-owned U.S. subsidiaries, except for certain life
   insurance subsidiaries and their subsidiaries.  Deferred income taxes
   are calculated using the liability method.  Under this method, deferred
   income tax assets and liabilities are determined based on differences
   between financial reporting and tax bases and are measured using
   enacted tax rates.  Deferred tax assets are recognized if it is more
   likely than not that a benefit will be realized.

   Benefit Plans  AFC provides retirement benefits to qualified employees
   of participating companies through contributory and noncontributory
   defined contribution plans contained in AFC's Retirement and Savings
   Plan.  Under the retirement portion of the plan, company contributions
   (approximately 6% of covered compensation in 1998) are invested
   primarily in securities of AFC and affiliates.  Under the savings
   portion of the plan, AFC matches a specific portion of employee
   contributions.  Contributions to benefit plans are charged against
   earnings in the year for which they are declared.

   AFC and many of its subsidiaries provide health care and life insurance
   benefits to eligible retirees.  AFC also provides postemployment
   benefits to former or inactive employees (primarily those on
   disability) who were not deemed retired under other company plans.  The
   projected future cost of providing these benefits is expensed over the
   period the employees earn such benefits.
<PAGE>
   Start-up Costs  Prior to 1999, AAG, an 83%-owned subsidiary, deferred
   certain costs associated with introducing new products and distribution
   channels and amortized them on a straight-line basis over 5 years.  In
   1999, AAG implemented Statement of Position ("SOP") 98-5, "Reporting on
   the Costs of Start-Up Activities."  The SOP requires that (i) costs of
   start-up activities be expensed as incurred and (ii) unamortized
   balances of previously deferred costs be expensed and reported as the
   cumulative effect of a change in accounting principle.  Accordingly,
   AFC expensed previously capitalized start-up costs of $3.8 million (net
   of minority interest and taxes), effective January 1, 1999.
















                                  8
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

   Derivatives  The Financial Accounting Standards Board issued SFAS
   No. 133, "Accounting for Derivative Instruments and Hedging
   Activities," during the second quarter of 1998.  AFC must implement
   SFAS No. 133 no later than January 1, 2001.  SFAS No. 133 establishes
   accounting and reporting standards for derivative instruments,
   including derivative instruments that are embedded in other contracts,
   and for hedging activities.  SFAS No. 133 requires the recognition of
   all derivatives (both assets and liabilities) in the balance sheet at
   fair value.  Changes in fair value of derivative instruments are
   included in current income or as a component of comprehensive income
   (outside current income) depending on the type of derivative.
   Implementation of SFAS No. 133 is not expected to have a material
   effect on AFC's financial position or results of operations.

   Statement of Cash Flows  For cash flow purposes, "investing activities"
   are defined as making and collecting loans and acquiring and disposing
   of debt or equity instruments and property and equipment.  "Financing
   activities" include obtaining resources from owners and providing them
   with a return on their investments, borrowing money and repaying
   amounts borrowed.  Annuity receipts, benefits and withdrawals are also
   reflected as financing activities.  All other activities are considered
   "operating".  Short-term investments having original maturities of
   three months or less when purchased are considered to be cash
   equivalents for purposes of the financial statements.

B. Acquisitions and Sales of Subsidiaries

   Worldwide Insurance Company  In April 1999, AFC completed the purchase
   of Worldwide Insurance Company (formerly Providian Auto and Home
   Insurance Company) for $157 million in cash.  Worldwide is a provider
   of direct response private passenger automobile insurance.

   Old Republic and Consolidated Financial  In February 1999, AAG acquired
   Old Republic Life Insurance Company of New York for $27 million in
   cash.  In July 1999, AAG acquired Consolidated Financial Corp., an
   insurance agency, for $21 million in cash.

   United Teacher Associates  In October 1999, AAG acquired United Teacher
   Associates Insurance Company of Austin, Texas ("UTA") for $81 million
   in cash subject to post-closing adjustments.  UTA provides supplemental
   health products and retirement annuities, and purchases blocks of
   insurance policies from other insurers.
<PAGE>
   Commercial lines division  In December 1998, AFC completed the sale of
   substantially all of its Commercial lines division to Ohio Casualty
   Corporation for $300 million plus warrants to purchase 6 million (post
   split) shares of Ohio Casualty common stock.  AFC deferred a gain of
   $103 million on the insurance ceded to Ohio Casualty and recognized a
   pretax gain of $153 million on the sale of the other net assets.  The
   deferred gain is being recognized over the estimated remaining
   settlement period (weighted average of 4.25 years) of the claims ceded.
   AFC may receive up to an additional $40 million in the year 2000 based
   upon the retention and growth of the insurance businesses acquired by
   Ohio Casualty.  The commercial lines sold generated net written
   premiums of $210 million for the nine months ended September 30, 1998.











                                  9
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


   Funeral Services division  In September 1998, AAG sold its Funeral
   Services division for approximately $165 million in cash.  The division
   held assets of approximately $1 billion at the sale date.  AFG realized
   a pretax gain of $21.6 million, before $2.7 million of minority
   interest, on this sale.

C. Segments of Operations  Having sold substantially all of its Commercial
   lines division in December 1998, AFC's property and casualty group is
   engaged primarily in private passenger automobile and specialty
   insurance businesses.  The Personal group consists of the nonstandard
   auto group along with the preferred/standard private passenger auto and
   other personal insurance business.  The Specialty group includes a
   highly diversified group of specialty business units.  AFC's annuity
   and life business markets primarily retirement products as well as life
   and supplemental health insurance.  In addition, AFC owns a significant
   portion of the voting equity securities of Chiquita Brands
   International, Inc. (an investee corporation - see Note D).
<PAGE>
   The following table (in thousands) shows AFC's revenues and operating
   profit (loss) by significant business segment.  Operating profit (loss)
   represents total revenues less operating expenses.

   <TABLE>
   <CAPTION>
                                                Three months ended                  Nine months ended
                                                   September 30,                      September 30,
                                               1999            1998                1999           1998
    <S>                                   <C>           <C>                 <C>           <C>
     Revenues (a)
     Property and casualty insurance:
       Premiums earned:
         Personal                          $288,454      $  321,701          $  875,036     $  980,288
         Specialty                          296,254         365,670             804,957      1,068,854
         Other lines - primarily
           discontinued                         852           9,166                 568         30,861
                                            585,560         696,537           1,680,561      2,080,003
       Investment and other income          110,923         123,128             329,885        376,684
                                            696,483         819,665           2,010,446      2,456,687
     Annuities and life (b)                 161,474         210,842             465,348        584,834
     Other                                   11,568           7,440              25,715         19,307
                                            869,525       1,037,947           2,501,509      3,060,828
     Equity in net earnings (loss)
       of investee                          (14,797)         (5,518)              2,639         26,396

                                           $854,728      $1,032,429          $2,504,148     $3,087,224

     Operating Profit (Loss)
     Property and casualty insurance:
       Underwriting:
         Personal                         ($  3,167)     $    8,860         ($    1,121)    $   30,129
         Specialty                           (9,246)        (21,781)             (7,925)       (80,886)
         Other lines - primarily
           discontinued                       2,747          (5,856)             (5,089)       (33,089)
                                             (9,666)        (18,777)            (14,135)       (83,846)
       Investment and other income           68,452          88,193             206,074        282,239
                                             58,786          69,416             191,939        198,393
     Annuities and life                      21,250          48,977              71,681        107,649
     Other (c)                              (15,899)        (23,697)            (52,599)       (69,855)
                                             64,137          94,696             211,021        236,187
     Equity in net earnings (loss)
       of investee                          (14,797)         (5,518)              2,639         26,396

                                           $ 49,340      $   89,178          $  213,660     $  262,583

</TABLE>



     (a) Revenues include sales of products and services as well as other
         income earned by the respective segments.
     (b) Represents primarily investment income.
     (c) Includes holding company expenses.




                                  10
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


D. Investment in Investee Corporation  Investment in investee corporation
   reflects AFC's ownership of 24 million shares (36%) of Chiquita common
   stock.  The market value of this investment was $142 million and
   $229 million at September 30, 1999 and December 31, 1998, respectively.
   Chiquita is a leading international marketer, producer and distributor
   of quality fresh fruits and vegetables and processed foods.  Summarized
   financial information for Chiquita follows (in millions):

                                     Nine months ended September 30,
                                                   1999        1998
      Net Sales                                  $1,937      $2,094
      Operating Income                               93         157
      Net Income                                     19          83

E. Payable to American Financial Group  In 1997, AFC entered into a ten-
   year reciprocal Master Credit Agreement among AFG and several of AFG's
   subsidiary holding companies, including APU and AFC's direct parent,
   AFC Holding Company, under which funds are made available to each other
   at one percent over LIBOR.

F. Long-Term Debt  The carrying value of long-term debt consisted of the
   following (in thousands):
                                                  September 30, December 31,
                                                          1999         1998
      Holding Companies:
       AFC notes payable under bank line              $ 60,000     $ 80,000
       AFC 9-3/4% Debentures due April 2004               -          78,560
       American Premier Underwriters, Inc. ("APU")
         9-3/4% Subordinated Notes due August 1999        -          89,467
       APU 10-5/8% Subordinated Notes due April 2000    23,885       41,518
       APU 10-7/8% Subordinated Notes due May 2011      11,673       17,473
       Other                                             8,986        8,518

                                                      $104,544     $315,536
      Subsidiaries:
       AAG 6-7/8% Senior Notes due June 2008          $100,000     $100,000
       AAG notes payable under bank line                95,000       27,000
       Notes payable secured by real estate             31,823       37,602
       Other                                            12,365       12,294

                                                      $239,188     $176,896

   In the second quarter of 1999, AFC used funds borrowed under its credit
   agreement with AFG to (i) repay $155 million borrowed under its bank
   line; (ii) redeem its 9-3/4% Debentures for $82.9 million and
   (iii) repurchase $22.2 million of APU Notes for $24.5 million.

   In August 1999, APU redeemed its 9-3/4% Notes at maturity and AFC
   borrowed $60 million under the bank line.
<PAGE>
   At September 30, 1999, sinking fund and other scheduled principal
   payments on debt for the balance of 1999 and the subsequent five years
   were as follows (in thousands):

                  Holding
                Companies     Subsidiaries            Total
      1999        $  -             $   596         $    596
      2000         23,667            3,501           27,168
      2001           -               1,512            1,512
      2002         66,044           36,405          102,449
      2003           -              61,438           61,438
      2004           -              14,391           14,391




                                  11
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


   Debentures purchased in excess of scheduled payments may be applied to
   satisfy any sinking fund requirement.  The scheduled principal payments
   shown above assume that debentures previously purchased are applied to
   the earliest scheduled retirements.

   AFC and AAG each have an unsecured credit agreement with a group of
   banks under which they can borrow up to $300 million and $200 million,
   respectively.  Borrowings bear interest at floating rates based on
   prime or Eurodollar rates.  Loans mature December 2002 under the AFC
   credit agreement and from 2000 to 2003 under the AAG credit agreement.

G. Minority Interest  Minority interest in AFC's balance sheet is
   comprised of the following (in thousands):

                                                  September 30,  December 31,
                                                          1999          1998
      Interest of AFG (parent) and noncontrolling
        shareholders in subsidiaries' common stock    $277,696      $299,335
      Preferred securities issued by
        subsidiary trusts                              219,600       225,000

                                                      $497,296      $524,335

   Trust Issued Preferred Securities  Wholly-owned subsidiary trusts of
   AAG have issued $225 million of preferred securities and, in turn,
   purchased a like amount of AAG subordinated debt which provides
   interest and principal payments to fund the respective trusts'
   obligations.  The preferred securities must be redeemed upon maturity
   or redemption of the subordinated debt.  AAG effectively provides
   unconditional guarantees of its trusts' obligations.

   The preferred securities consisted of the following (in thousands):
<TABLE>
<CAPTION>
   Date of                                   September 30,  December 31,   Optional
   Issuance        Issue (Maturity Date)             1999          1998    Redemption Dates
  <S>              <C>                            <C>           <C>       <C>
   November 1996   AAG 9-1/4% TOPrS (2026)         74,600        75,000    On or after 11/7/2001
   March 1997      AAG 8-7/8% Pfd   (2027)         70,000        75,000    On or after 3/1/2007
   May 1997        AAG 7-1/4% ROPES (2041)         75,000        75,000    Prior to 9/28/2000 and
                                                                             after 9/28/2001
   </TABLE>


   In the first quarter of 1999, AAG repurchased $5.4 million of its
   preferred securities for $5.5 million in cash.
<PAGE>
   Minority Interest Expense  Minority interest expense is comprised of
   (in thousands):

                                                       Nine months ended
                                                          September 30,
                                                         1999        1998
      Interest of AFG (parent) and noncontrolling
        shareholders in earnings of subsidiaries      $21,842     $23,861
      Accrued distributions by subsidiaries
        on trust issued preferred securities           13,936      14,274

                                                      $35,778     $38,135











                                  12
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


H.   Shareholders' Equity

   Preferred Stock  Under provisions of both the Nonvoting (4.0 million
   shares authorized) and Voting (4.0 million shares authorized)
   Cumulative Preferred Stock, the Board of Directors may divide the
   authorized stock into series and set specific terms and conditions of
   each series.  The outstanding voting shares of AFC's Preferred Stock
   consisted of the following:

       Series J, no par value; $25.00 liquidation value per share; annual
       dividends per share $2.00; redeemable at AFC's option at $25.75 per
       share beginning December 2005 declining to $25.00 at December 2007
       and thereafter; 2,886,161 shares (stated value $72.2 million)
       outstanding at September 30, 1999 and December 31, 1998.

   Unrealized Gain on Marketable Securities  The change in unrealized
   gains on marketable securities for the nine months ended September 30
   included the following (in millions):
   <TABLE>
   <CAPTION>
                                                                    Minority
                                                Pretax      Taxes   Interest        Net
   <S>                                         <C>        <C>       <C>         <C>
               1999
   Unrealized holding gains (losses) on
     securities arising during the period      ($471.7)    $163.4      $36.9    ($271.4)
   Reclassification adjustment for
     realized gains included in net income        (6.0)       2.1         .8       (3.1)
   Change in unrealized gains on
     marketable securities, net                ($477.7)    $165.5      $37.7    ($274.5)

               1998
   Unrealized holding gains (losses) on
     securities arising during the period       $ 67.2    ($ 22.0)    ($ 8.1)    $ 37.1
   Reclassification adjustment for
     realized gains included in net income
     and unrealized gains of subsidiaries sold   (45.1)      15.8        4.5      (24.8)
   Change in unrealized gains on
     marketable securities, net                 $ 22.1    ($  6.2)    ($ 3.6)    $ 12.3

</TABLE>
<PAGE>
I. Extraordinary Items  Extraordinary items represent AFC's proportionate
   share of losses related to debt retirements by the following companies.
   Amounts shown are net of minority interest and income taxes (in
   thousands):
                                     Nine months ended
                                       September 30,
                                      1999        1998
         Holding Companies:
          AFC (parent)             ($2,993)      ($ 51)
          APU (parent)                (856)        (54)
         Subsidiaries:
          AAG                          -          (649)

                                   ($3,849)      ($754)














                                  13
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


J. Cash Flows - Fixed Maturity Investments  "Investing activities" related
   to fixed maturity investments in AFC's Statement of Cash Flows
   consisted of the following (in thousands):

                                   Available       Held to
                                    For Sale      Maturity(a)        Total
      1999
      Purchases                   $1,547,160      $   -         $1,547,160
      Maturities and redemptions     801,833          -            801,833
      Sales                          885,901          -            885,901

      1998
      Purchases                   $1,681,251      $    826      $1,682,077
      Maturities and redemptions     538,293       478,711       1,017,004
      Sales                          506,819        37,903(b)      544,722

      (a) At December 31, 1998, AFC reclassified all of its "held to
          maturity" fixed maturity securities to "available for sale."
      (b) Sold (at a gain of $.7 million) due to significant deterioration
          in the issuers' creditworthiness.

K. Commitments and Contingencies  There have been no significant changes
   to the matters discussed and referred to in Part II of AFC's June 30,
   1999 Form 10-Q and Note L "Commitments and Contingencies" in AFC's
   Annual Report on Form 10-K for 1998.


























                                  14
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

                                  ITEM 2

                   Management's Discussion and Analysis
             of Financial Condition and Results of Operations

   GENERAL

   AFC and American Premier are organized as holding companies with almost
   all of their operations being conducted by subsidiaries.  These parent
   corporations, however, have continuing cash needs for administrative
   expenses, the payment of principal and interest on borrowings,
   shareholder dividends, and taxes.  Therefore, certain analyses are best
   done on a parent only basis while others are best done on a total
   enterprise basis.  In addition, since most of its businesses are
   financial in nature, AFC does not prepare its consolidated financial
   statements using a current-noncurrent format.  Consequently, certain
   traditional ratios and financial analysis tests are not meaningful.

   Year 2000 Status  AFC's Year 2000 Project is a corporate-wide program
   designed to ensure that its computer systems and other equipment using
   date-sensitive computer chips will function properly in the year 2000.
   The Project also encompasses communicating with agents, vendors,
   financial institutions and others with which the companies conduct
   business to determine their Year 2000 readiness and resulting effects
   on AFC.  AFC's Year 2000 Project Office monitors and coordinates the
   work being performed by the various business units and reports monthly
   to the Audit Committee of the Board of Directors and more frequently to
   senior management.

   To address the Year 2000 issue, AFC's operations were divided into
   separate systems groups.  All groups have completed Year 2000 program
   modifications and software installations, about 98% of the tests to be
   performed, and are engaged in test documentation activities.

   Contingency plans are being developed for certain business processes
   and systems deemed most critical to operations.  These plans provide a
   documented order of actions necessary to keep the business functions
   operating.  Such plans typically include procedures and workflow
   processes for operating in a failed environment.  Contingency planning
   is expected to be substantially completed by November 30, 1999.

   Many of the systems being replaced were planned replacements which were
   accelerated due to the Year 2000 considerations.  In addition, a
   significant portion of AFC's Year 2000 Project is being completed using
   internal staff.  Therefore, cost estimates for the Year 2000 Project do
   not represent solely incremental costs.

   During the first nine months of 1999, AFC incurred $23 million for Year
   2000 costs, of which $6 million was capitalized and $17 million was
   expensed.  From the inception of the Year 2000 Project in the early
   1990s, AFC estimates that it has incurred approximately $70 million of
   such costs, including capitalized costs of $16 million.  AFC expects
   that an additional $7 million will be incurred, of which about half
   will be capitalized.
<PAGE>
   Projected Year 2000 costs and completion dates are based on
   management's best estimates.  However, there can be no assurances that
   these estimates will be achieved.  Should software modifications and
   new software installations not be completed on a timely basis, the
   resulting disruptions could have a material adverse affect on
   operations.

   AFC's operations could also be affected by the inability of third
   parties such as agents and vendors to become Year 2000 compliant.
   Assessments of property and casualty agents and life and annuity agents
   have been completed.  Efforts to evaluate third party vendors have been
   intensified and will continue to be




                                  15
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

                   Management's Discussion and Analysis
       of Financial Condition and Results of Operations - Continued


   updated through the fourth quarter.  In addition, AFC's property and
   casualty insurance subsidiaries are reviewing the potential impact of
   the Year 2000 issue on insureds as part of their underwriting process.
   They are also reviewing policy forms, issuing clarifying endorsements
   where appropriate and examining coverage issues for Year 2000
   exposures.  While it is possible that Year 2000 claims may emerge in
   future periods, it is not possible to estimate any such amounts.

   IT Initiative  In the third quarter of 1999, AFC's newly hired Chief
   Information Officer initiated an enterprise-wide study of its
   information technology ("IT") resources, needs and opportunities.  AFC
   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 in the future.
   While the costs (most of which will be expensed) will precede any
   savings to be realized, management expects benefits to greatly exceed
   the costs incurred, all of which will be funded through available
   working capital.

   Forward-Looking Statements  The Private Securities Litigation Reform
   Act of 1995 encourages corporations to provide investors with
   information about the company's anticipated performance and provides
   protection from liability if future results are not the same as
   management's expectations.  This document contains certain forward-
   looking statements that are based on assumptions which management
   believes are reasonable, but by their nature, inherently uncertain.
   Future results could differ materially from those projected.  Factors
   that could cause such differences include, but are not limited to:
   changes in economic conditions especially with regard to availability
   of and returns on capital, regulatory actions, changes in legal
   environment, levels of catastrophe and other major losses, availability
   of reinsurance, the Year 2000 issue, and competitive pressures.  AFC
   undertakes no obligation to update any forward-looking statements.

   LIQUIDITY AND CAPITAL RESOURCES

   Ratios  AFG's debt to total capital ratio at the parent holding company
   level (excluding amounts due AFG) was approximately 7% at September 30,
   1999 and 17% at December 31, 1998.  Including amounts due AFG, the
   ratio was 27% at September 30, 1999 and 28% at December 31, 1998.

   AFG's ratio of earnings to fixed charges, excluding and including
   preferred dividends, (on a total enterprise basis) was 4.06 and 3.71
   for the first nine months of 1999 and 3.44 and 3.15 for the entire year
   of 1998.
<PAGE>
   Sources of Funds  Management believes the parent holding companies have
   sufficient resources to meet their liquidity requirements through
   operations in the short-term and long-term future.  If funds generated
   from operations, including dividends and tax payments from
   subsidiaries, are insufficient to meet fixed charges in any period,
   these companies would be required to generate cash through borrowings,
   sales of securities or other assets, or similar transactions.

   AFC has a revolving credit agreement with several banks under which it
   can borrow up to $300 million.  The credit line provides ample
   liquidity and can be used to obtain funds for operating subsidiaries
   or, if necessary, for the parent companies.  At September 30, 1999,
   there was $60 million borrowed under the credit line.

   In April 1999, AFG issued $350 million principal amount of 7-1/8%
   senior debentures due 2009; the proceeds were used primarily to retire
   outstanding holding company public debt and borrowings under AFC's
   credit line.


                                  16
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

                   Management's Discussion and Analysis
       of Financial Condition and Results of Operations - Continued


   Dividend payments from subsidiaries have been very important to the
   liquidity and cash flow of the individual holding companies in the
   past.  However, the reliance on such dividend payments has been
   lessened by the combination of (i) strong capital at AFC's insurance
   subsidiaries (and the related decreased likelihood of a need for
   investment in those companies), (ii) the reduction of debt at the
   holding companies from historical levels (and the related decrease in
   ongoing cash needs for interest and principal payments), (iii) AFC's
   ability to obtain financing in capital markets, as well as (iv) the
   sales of noncore investments.

   Investments  Approximately 90% of the fixed maturities held by AFC were
   rated "investment grade" (credit rating of AAA to BBB) by nationally
   recognized rating agencies at September 30, 1999.  Investment grade
   securities generally bear lower yields and lower degrees of risk than
   those that are unrated and noninvestment grade.  Management believes
   that the high quality investment portfolio should generate a stable and
   predictable investment return.

   AFC's equity securities are concentrated in a relatively limited number
   of major positions.  This approach allows management to more closely
   monitor the companies and the industries in which they operate.

   RESULTS OF OPERATIONS

   General  Pretax earnings before extraordinary items and cumulative
   effect of accounting change for the three months and nine months ended
   September 30, 1999 were $49.3 million and $214 million, respectively,
   compared to $89.2 million and $262.6 million in the comparable 1998
   periods.  Improved underwriting results for both the three and nine
   month periods were more than offset by decreases in realized gains,
   investment income and investee earnings.

   Property and Casualty Insurance - Underwriting  AFC's property and
   casualty group consists of two major business groups: Personal and
   Specialty.

   The Personal group consists of the nonstandard auto group along with
   the preferred/standard private passenger auto and other personal
   insurance business.  The nonstandard automobile insurance companies
   insure risks not typically accepted for standard automobile coverage
   because of the applicant's driving record, type of vehicle, age or
   other criteria.

   The Specialty group includes a highly diversified group of business
   lines.  Some of the more significant areas are executive liability,
   inland and ocean marine, U.S.-based operations of Japanese companies,
   agricultural-related coverages, California workers' compensation,
   nonprofit liability, general aviation coverages, fidelity and surety
   bonds, and umbrella and excess coverages.  Commercial lines businesses
   sold included certain coverages in workers' compensation, commercial
   multi-peril, commercial automobile, and umbrella.
<PAGE>
   Underwriting profitability is measured by the combined ratio which is a
   sum of the ratios of underwriting losses, loss adjustment expenses,
   underwriting expenses and policyholder dividends to premiums.  When the
   combined ratio is under 100%, underwriting results are generally
   considered profitable; when the ratio is over 100%, underwriting
   results are generally considered unprofitable.  The combined ratio does
   not reflect investment income, other income or federal income taxes.








                                  17
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

                   Management's Discussion and Analysis
       of Financial Condition and Results of Operations - Continued


   For certain lines of business and products where the credibility of the
   range of loss projections is less certain (primarily the various
   specialty businesses listed above), management believes that it is
   prudent and appropriate to use conservative assumptions until such time
   as the data, experience and projections have more credibility, as
   evidenced by data volume, consistency and maturity of the data.  While
   this practice mitigates the risk of adverse development on this
   business, it does not eliminate it.

   Net written premiums and combined ratios for AFC's property and
   casualty insurance subsidiaries were as follows (dollars in millions):

                                      Three months ended    Nine months ended
                                          September 30,      September 30,
                                         1999       1998      1999       1998
      Net Written Premiums (GAAP)
        Personal                       $287.3     $314.3  $  839.2   $  998.0
        Specialty                       323.7      357.9     850.4    1,039.6
        Other lines                        .7        2.1       (.8)      17.7
                                       $611.7     $674.3  $1,688.8   $2,055.3

      Combined Ratios (GAAP)
        Personal                        101.1%      97.3%    100.2%      96.9%
        Specialty                       103.2      106.0     101.0      107.5
        Aggregate (including
          discontinued lines)           101.7      102.8     100.8      104.1

      Personal  The Personal group's net written premiums for the third
   quarter and first nine months of 1999 includes $22.1 million and
   $42.9 million, respectively, in net premiums written by Worldwide since
   its acquisition in April.  The decrease in written premiums reflects
   continuing strong price competition in the private passenger automobile
   market.  The combined ratios for 1999 increased as loss and
   underwriting expenses declined at a slower rate than premiums.

      Specialty  The Specialty Group's net written premiums for the third
   quarter and first nine months of 1999 increased slightly compared to
   the 1998 periods, excluding premiums of the commercial lines division
   sold in December 1998 and the effect of ceding approximately 30% of
   California workers' compensation premiums under a reinsurance agreement
   implemented during the third quarter of 1998.
<PAGE>
   A deferred gain of $103 million on the Commercial lines business ceded
   to Ohio Casualty in December 1998 is being recognized over the
   estimated settlement period (weighted average 4.25 years) of the claims
   ceded.  The Specialty group's underwriting results for the third
   quarter and first nine months of 1999 include $6.7 million and
   $20.1 million, respectively, in earnings recognized on the ceded
   business.  In addition, the improvement in the combined ratios for the
   1999 periods reflects (i) a decrease in losses from severe weather for
   the nine-month period (ii) improved underwriting margins in California
   workers' compensation business largely due to favorable reinsurance
   agreements and (iii) the absence of losses included in the 1998 periods
   attributable to the commercial lines sold.










                                  18
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q

                   Management's Discussion and Analysis
       of Financial Condition and Results of Operations - Continued


   Life, Accident and Health Premiums and Benefits  The decrease in life,
   accident and health premiums and benefits reflects primarily the sale
   of AAG's Funeral Services division in September 1998.

   Investment Income  Investment income decreased approximately
   $7.5 million (3%) in the third quarter of 1999 and $40.7 million (6%)
   in the first nine months of 1999 compared to 1998 due primarily to the
   transfer of investment assets in connection with the sales of the
   Commercial lines division and Funeral Services division in 1998,
   partially offset by the effect of the purchase of Worldwide in April
   1999.

   Investee Corporation  Equity in net earnings of investee corporation
   represents AFC's proportionate share of Chiquita's earnings.  Chiquita
   reported net losses for the third quarter of 1999 and 1998 of
   $37 million and $11 million, respectively.  For the first nine months
   of 1999 and 1998, Chiquita reported net income of $19 million and
   $83 million, respectively.

   Realized Gains  Realized capital gains have been an important part of
   the return on investments in marketable securities.  Individual
   securities are sold creating gains and losses as market opportunities
   exist.

   Gain on Sale of Investee and Subsidiaries  The gains on sales of
   investees and subsidiaries in 1998 include (i) pretax gains of
   $7.7 million and $1.7 million in the first and second quarters as a
   result of Chiquita's public issuance of shares of its common stock,
   (ii) a pretax gain of $21.6 million on AAG's sale of its Funeral
   Services division in September and (iii) a third quarter charge of
   $10.5 million relating to operations expected to be sold or otherwise
   disposed of.

   Annuity Benefits  Annuity benefits reflect amounts accrued on annuity
   policyholders' funds accumulated.  The majority of AAG's fixed rate
   annuity products permit AAG to change the crediting rate at any time
   (subject to minimum interest rate guarantees of 3% or 4% per annum).
   As a result, management has been able to react to changes in market
   interest rates and maintain a desired interest rate spread.

   Cumulative Effect of Accounting Change  In the first quarter of 1999,
   AAG implemented Statement of Position 98-5, "Reporting on the Costs of
   Start-Up Activities."  The SOP requires that costs of start-up
   activities be expensed as incurred and that unamortized balances of
   previously deferred costs be expensed and reported as the cumulative
   effect of a change in accounting principle.  Accordingly, AFC expensed
   previously capitalized start-up costs of $3.8 million (net of minority
   interest and taxes) in the first quarter of 1999.



                                  19
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q


                                  Item 3

          Quantitative and Qualitative Disclosure of Market Risk


   The tables below show scheduled principal payments (in millions) on
   fixed-rate and variable-rate long-term debt of AFC and its subsidiaries
   and related average interest rates as of September 30, 1999 and
   December 31, 1998.

                                     September 30, 1999
                           Fixed-Rate Debt        Variable-Rate Debt
                                     Weighted                 Weighted
                         Scheduled    Average    Scheduled     Average
                         Principal   Interest    Principal    Interest
                          Payments       Rate     Payments        Rate
       1999 (remainder)     $   .4       6.78%      $   .1        7.26%
       2000                   27.0       9.96           .2        7.13
       2001                    1.4       6.81           .1        7.00
       2002                    1.3       6.50        101.2        6.08
       2003                    1.3       6.38         60.2        5.89
       2004                   14.2       8.38           .2        7.00
       Thereafter            135.2       7.25           .1        7.00

       Total                $180.8       7.74%      $162.1        6.01%

       Market Value         $175.7                  $162.1



                                     December 31, 1998
                           Fixed-Rate Debt        Variable-Rate Debt
                                     Weighted                 Weighted
                         Scheduled    Average    Scheduled     Average
                         Principal   Interest    Principal    Interest
                          Payments       Rate     Payments        Rate
       1999                 $ 90.7       9.69%      $   .3        5.86%
       2000                   49.1       9.85           .2        5.80
       2001                    1.2       7.13           .1        5.58
       2002                    1.1       6.81         85.7        5.95
       2003                    1.1       6.68         27.2        6.09
       Thereafter            233.3       8.26           .2        5.58

       Total                $376.5       8.80%      $113.7        5.98%

       Market Value         $388.9                  $113.7


   As of September 30, 1999, there were no material changes to the other
   information provided in AFC's Form 10-K for 1998 under the caption
   "Exposure to Market Risk" in Management's Discussion and Analysis of
   Financial Condition and Results of Operations.


                                  20
<PAGE>
                    AMERICAN FINANCIAL CORPORATION 10-Q
                                  PART II
                             OTHER INFORMATION


                                  Item 6

                     Exhibits and Reports on Form 8-K


(a) Exhibit 27.1 - Financial Data Schedule as of September 30, 1999.
               For submission in electronic filing only.

(b) Reports on Form 8-K:  none








                                 Signature


Pursuant to the requirements of the Securities Exchange Act of 1934,
American Financial Corporation has duly caused this Report to be signed on
its behalf by the undersigned duly authorized.


                                American Financial Corporation



November 12, 1999               BY: Fred J. Runk
                                    Fred J. Runk
                                    Senior Vice President and Treasurer















                                  21