HOUSTON, April 15 /PRNewswire/ -- American General Corporation (NYSE: AGC)
today announced the accelerated buyback of 6.4 million common shares.  The
shares were purchased from an investment bank for $234 million based upon
yesterday's closing price of $36.50 per share, subject to a market price
adjustment provision.  In order to complete the transaction, the investment
bank is borrowing American General common shares and will be purchasing
replacement shares in the open market.
    This buyback, combined with the 3.0 million shares repurchased since the
December 22, 1996 execution of the definitive agreement to acquire Home
Beneficial Corporation, has the effect of repurchasing all of the shares to be
issued in this acquisition which is scheduled to close on April 16, 1997.
Following the completion of the Home Beneficial acquisition, American General
is expected to have approximately 213 million fully diluted common shares
outstanding.
    Robert M. Devlin, president and CEO said, "This transaction further
demonstrates American General's commitment to effective capital management
that is designed to enhance shareholder returns.  The accelerated share
buyback will immediately reduce the number of shares outstanding which will
benefit shareholders through improved earnings per share and return on equity
while maintaining our targeted capital ratios."
    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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