NEW YORK, Sept. 12 /PRNewswire/ -- American General Corp.'s agreement to
purchase the 54% of Western National Corp. it doesn't all ready own for
$1.2 billion in cash and stock, has positive credit implications for the
company, say Fitch analysts. The acquisition will increase American General's
stake in annuities, presently considered to be one of the hottest insurance
products as far as industry growth is concerned, and, due to Western
National's profitable book of business in that area, improve the company's
cash flow availability. Furthermore, the purchase, a continuation of the
trend of consolidation gripping the industry, should improve American
General's financial position, since the incremental increase in ownership is
being partially financed with stock.
American General, a diversified financial services organization, provides
retirement services, life insurance and consumer loans to approximately
12 million customers. Western National develops, markets and issues annuity
products through banks and other financial institutions.
SOURCE Fitch Investors Service
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