American Financial Group has entered into a definitive agreement to purchase Strategic Comp Holdings, a provider of workers' compensation programs offering a combination of effective loss control, intensive claims management and deductible based options for mid-size to large commercial accounts.

Strategic Comp is expected to produce approximately $30 million of workers’ compensation premium in 2007. This will result in a net increase in premiums to American Financial Group (AFG) and its wholly owned Great American Insurance Company subsidiary of approximately $15 million.

Carl Lindner, co-CEO of AFG, said: I am extremely pleased to formalize and extend our long standing relationship with Strategic Comp. For many years, we have held them in high regard for their business practices and scope of their work. This acquisition supports our strategic objectives of expanding our penetration into the workers’ comp market and increasing our geographic coverage.