HOUSTON and MEXICO CITY, Oct. 2 /PRNewswire/ -- American General
Corporation (NYSE: AGC) and Grupo Nacional Provincial, S.A. (BMV: GNP*) today
jointly announced the signing of a definitive agreement for the purchase by
American General of a 40% interest in Grupo Nacional Provincial Pensiones S.A.
de C.V., a new holding company formed by GNP, one of Mexico's largest
financial services companies.  GNP will own the remaining 60% of the holding
company.  Terms of the transaction, which is subject to customary regulatory
approvals, were not disclosed.
    The holding company will own a 51% interest in Profuturo GNP, a company
which provides enrollment, administration, and investment services for
employees covered under the Mexican social security system.  Legislative
changes in Mexico, effective July 1, 1997, resulted in reforms in the
country's social security system and led to the formation of companies, known
as "AFOREs," that are focused on meeting the old age, disability, and
survivorship savings needs of its participants.  Profuturo GNP is the fourth
largest AFORE in Mexico with 1.2 million participants and a 12.8% market
share.  The holding company also owns a 100% interest in Porvenir GNP, a
company which provides single premium immediate annuities to participants
covered under the Mexican social security system.
    In commenting on the transaction, Robert M. Devlin, chairman and chief
executive officer of American General, said, "We are excited about this
opportunity to participate in the rapidly expanding financial services market
in Mexico through our affiliation with Grupo Nacional Provincial, Mexico's
premier insurance provider.  The changes in the social security system in
Mexico, combined with the strong trend toward retirement savings, has created
one of the fastest growing financial services markets in the world.  This
venture will leverage both GNP's expertise in the Mexican market and our
experience in meeting the financial needs of a broad customer base.  This
investment will provide American General with a unique opportunity to
participate in the dynamic Mexican financial services market."
    Mr. Alberto Bailleres, chairman of the board of Grupo Nacional Provincial
said, "Our new relationship with American General will complement our
successful existing partnership in Profuturo GNP with Banco Bilbao Vizcaya and
Provida Internacional, and further solidifies our commitment to establishing
one of the premier AFOREs in Mexico.  The financial strength and broad
experience of American General in the life insurance and annuity markets in
the United States, combined with GNP's experience and reputation in Mexico,
create a solid base of future growth for Porvenir GNP in the annuity market.
The strengths of both American General and Grupo Nacional Provincial provide
Profuturo GNP and Porvenir GNP with a substantial competitive advantage, one
which we expect to sustain over the long term, leading to significant
prospects for growth."
    American General Corporation is one of the largest diversified financial
services organizations in the United States with assets of $77 billion and
shareholders' equity of $6.7 billion.  Headquartered in Houston, it is a
leading provider of retirement services, life insurance, and consumer loans to
12 million customers.  American General common stock is listed on the New
York, Pacific, London, and Swiss stock exchanges.
    Grupo Nacional Provincial, S.A., a leading company in the development of
insurance products, is the largest premium writer in the life and health
insurance business in Mexico and the second largest premium writer in Mexico's
automobile and property casualty insurance business.  The strength of GNP's
distribution system includes 4,500 agents with the highest productivity in the
market, serving more than two million insureds.  GNP's superior quality
services are fully recognized in the Mexican market, and its financial
strength has earned the MxAA Standard & Poors rating.

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