
<PAGE>   1

                                                                   Exhibit 23.1

   
We consent to the reference to our firm under the caption "Experts" in Post-
Effective Amendment No. 1 to the Registration Statement (Form S-3 No. 
333-21995) and Prospectus relating to the registration of up to $500,000,000
of American Financial Group, Inc. debt securities and common stock and 
American Financial Capital Trust II preferred securities and to the 
incorporation by reference therein of our report dated March 25, 1997, with 
respect to the consolidated financial statements and schedules of American 
Financial Group, Inc. included in its Annual Report (Forms 10-K, as amended) 
for the year ended December 31, 1996, filed with the Securities and Exchange 
Commission.
    

Cincinnati, Ohio                        
   
December 5, 1997
    

                                        ERNST & YOUNG LLP

