HOUSTON, March 11 /PRNewswire/ -- American General Corporation
(NYSE: AGC) has met with rating agencies to review its debt, preferred,
and claims-paying ability ratings since the company's February 13, 1997
announcement of its acquisition of USLIFE Corporation (NYSE: USH).  Based
on these meetings, it is anticipated that certain of the company's and its
subsidiaries' debt, preferred, and/or claims-paying ability ratings will
be revised as a result of the merger.  While American General recognizes
the rating agencies' changing view of the financial services industry, the
company remains committed to its well-established strategy of internal
growth and growth through acquisitions.
    The USLIFE merger is an important transaction in American General's
growth strategy, and, at $1.8 billion, is the largest acquisition in the
company's 71-year history.  The merger will add complementary financial
products and services, and enhanced distribution capability to those
currently offered by American General.  This merger positions American
General as the third largest writer of new individual life insurance
premiums in the nation.  American General has demonstrated its proven
ability to successfully acquire and consolidate companies into its
operations.  Over the past 20 years, the company has completed 23
acquisitions totaling $6.5 billion and 24 divestitures totaling $2.0
billion.
    Robert M. Devlin, president and chief executive officer of American
General commented, "The financial services industry is undergoing a period
of unprecedented consolidation which will reduce the number of providers
of financial products and services.  The remaining providers will be
financially stronger and more capable of meeting the changing needs of
their many constituents.  While we acknowledge the rating agencies'
changing guidelines, American General is taking the necessary actions to
build a stronger organization and we expect to continue to pursue
strategic opportunities resulting from ongoing industry consolidation."
    The company's targeted capital structure consists of a minimum of 60%
common equity, a target of 15% preferred equity, and a maximum of 25%
debt.  This capital structure provides significant strength and
flexibility to the company's balance sheet and permits the company to
efficiently access the capital markets.
    American General Corporation is one of the nation's largest
diversified financial services organizations with assets of $66 billion
and shareholders' equity of $5.6 billion.  Headquartered in Houston, it is
a leading provider of retirement services, life insurance and consumer
loans to nine million customers.  American General common stock is listed
on the New York, Pacific, London, and Swiss stock exchanges.

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