HOUSTON, June 27 /PRNewswire/ -- American General Corporation (NYSE: AGC)
today announced that its consumer finance operation, American General Finance,
sold its bank credit card portfolio to a wholly owned subsidiary of GE Capital
Services.
This transaction completes the company's plan announced in February 1997
to dispose of certain non-strategic assets consisting of satellite dish loans
and bank credit card loans. The company announced the sale of its satellite
dish loan portfolio earlier this month.
The credit card loans included in the transaction had an aggregate book
value of $499 million as of May 31, 1997. In connection with this sale, the
company will take a second quarter after tax charge of approximately $26
million.
American General Finance, based in Evansville, Indiana, is a leading
provider of home equity and consumer loans. The company ranks among the
nation's largest consumer finance companies with a nationwide network of 1,372
branch offices, 2.4 million customer accounts, and finance receivables of $7.5
billion.
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 12 million
customers. American General common stock is listed on the New York, Pacific,
London, and Swiss stock exchanges.
GE Capital Services, with assets of over $227 billion, is a global,
diversified financial services company with 27 specialized businesses. A
wholly owned subsidiary of General Electric Company (NYSE: GE), GE Capital
Services, based in Stamford, CT, provides equipment management, mid-market and
specialized financing, specialty insurance and a variety of consumer services,
such as car leasing, home mortgages and credit cards, to businesses and
individuals around the world. GE is a diversified manufacturing, technology
and services company with operations worldwide.
SOURCE American General Corporation
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CONTACT:
Robert D. Mrlik, Vice President-Investor
Relations, 713-831-1137; or John E. Pluhowski, Director-Corporate
Communications, 713-831-1149, both of American General
Corporation
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