Exhibit (c)(99)


                           AMERICAN ANNUITY GROUP, INC.
                         CONSUMMATES CAPITAL TRANSACTIONS


   FOR IMMEDIATE RELEASE

        (Cincinnati, Ohio  -- March  31, 1994) -  American Annuity  Group, Inc.
   (NYSE: AAG) announced  today that it simultaneously consummated two exchange
   transactions involving its securities.

        The Company issued approximately 3.2 million shares of its Common Stock
   to a  subsidiary of  American  Financial Corporation  ("AFC"), its  majority
   shareholder, in exchange for all 450,000 outstanding shares of the Company's
   Series A  Preferred Stock.   The Preferred  Stock, which  has a  liquidation
   value of $45 million and an annual dividend rate of $7.00 per share had been
   issued in connection  with the Company's acquisition of  Great American Life
   Insurance Company.  The  Preferred Stock is being acquired at  a total price
   of $29.9 million, which is the Company's carrying value for these securities
   based on an imputed dividend rate of 12%.  The Common Stock was issued based
   on  a price  of  $9.25 per  share.   A  Special  Committee of  the  Board of
   Directors has determined, based in  part on preliminary advice received from
   an investment banking  firm, that the  transaction is fair to  the Company's
   minority shareholders.   However, the  consideration paid by the  Company is
   subject to adjustment based  on the final opinion of  the investment banking
   firm.

        In  a concurrent  transaction,  American Annuity  issued  approximately
   810,000  shares of  its Common  Stock to  entities affiliated  with Fidelity
   Investments in exchange  for $7.1 million principal amount  of the Company's
   11-1/8% Senior Subordinated Notes due 2003.

        After   giving   effect  to   these   transactions,  the   Company  has
   approximately  39.1 million  shares  of  Common Stock  outstanding.    AFC's
   ownership   percentage  of  American  Annuity  was  not  affected  by  these
   transactions and remains at 80%.

        S. Craig Lindner,  President of  American Annuity, commented,  "Coupled
   with our strong  1993 results, these  transactions further improve  American
   Annuity's capital structure  by increasing  common stockholders' equity  $37
   million while reducing long-term debt  by $7 million.  In addition, American
   Annuity's preferred dividend  and interest  obligations will  be reduced  by
   nearly $4  million a year.   As a result, we believe  these transactions are
   beneficial to stockholders and significant to the Company as we continue  to
   strengthen and expand our operations."

        American Annuity,  through Great  American Life  Insurance Company,  is
   engaged  in the  sale of  tax-deferred annuities  primarily to  employees of
   educational and not-for-profit institutions.

                                      # # #

   For further information, please contact:

        S. Craig Lindner, (513) 579-2529