HOUSTON, June 18 /PRNewswire/ -- American General Corporation (NYSE: AGC)
today announced the creation of a divisional structure for its life insurance
segment based on the distribution system and market focus of its life
insurance operations.  One division includes all life insurance operations
that market life insurance and annuities through independent producers and
general agents.  The other division is focused on the company's career agency
distribution system.  This action follows the completion of American General's
$1.8 billion acquisition of USLIFE Corporation on June 17, 1997.
    In commenting on the announcement, Robert M. Devlin, chairman and chief
executive officer, said, "The formation of this new divisional structure
provides a solid foundation for ensuring the successful integration of USLIFE
and the realization of significant operating efficiencies for American
General's life insurance organization.  This structure enables the company to
capitalize on the substantial opportunities created by our newly expanded
marketing organization while leveraging the benefits achieved through sharing
common marketing and administrative services.  As a result, American General
will provide our customers and agents with an array of financial products and
services unmatched in the industry."
    The independent producer and general agent division will be comprised of
American General Life (Houston), Franklin Life (Springfield, Ill.), and the
recently acquired life insurance subsidiaries of USLIFE, including:  United
States Life Insurance Company (New York City); Old Line Life (Milwaukee); and
All American Life (Chicago).  The division will have a sales and distribution
network of more than 18,000 agents.
    The company also announced that Rodney O. Martin, Jr., currently president
and chief executive officer of American General Life, has been named to the
additional post of president of the independent producer and general agent
division.  He will be joined by two recently named division executive vice
presidents:  Christopher S. Ruisi, who served as president and chief operating
officer of USLIFE Corporation prior to the acquisition; and Carl J. Santillo,
who has served as senior vice president - finance for American General
Corporation since 1996.
    The career agency division, which consists of American General Life and
Accident Insurance Company (Nashville), also includes two recently acquired
life insurance companies -- Independent Life and Home Beneficial Life.  Both
companies currently are being consolidated into American General Life and
Accident.  Upon completion of this consolidation, the division will have over
7,000 career agents.  Joe Kelley, president and chief executive officer and
Bill B. Luther, vice chairman of American General Life and Accident, will be
responsible for the career agency division.
    On a combined basis, American General's life insurance operations have
over 25,000 agents, annualized premium life insurance sales of more than
$400 million, and life insurance in force of over $300 billion.  American
General is the nation's largest writer of universal life insurance premium and
ranks third in total individual life insurance premium sales.
    The divisional structure is designed to strengthen the company's expansive
distribution system while achieving operating efficiencies throughout its life
insurance companies.  The independent producer and general agent division will
include centralized support units focused on product development, insurance
administration, and operations support.  These support units will enable the
division to leverage its newly expanded distribution system and product
portfolio to benefit the entire group of companies.  The benefits of this
centralized structure include improved product development and distribution,
enhanced customer service, and a reduction in operating expenses.
    American General Corporation is one of the nation's largest diversified
financial services organizations with assets of $75 billion and shareholders'
equity of $6.2 billion.  Headquartered in Houston, it is a leading provider of
retirement services, life insurance, and consumer loans to 10 million
customers.  American General common stock is listed on the New York, Pacific,
London and Swiss stock exchanges.

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