HOUSTON, April 16 /PRNewswire/ -- American General Corporation (NYSE: AGC)
today completed the previously announced acquisition of Home Beneficial
Corporation (NYSE: HBENB) for $665 million or $39.00 per share.  The
transaction was consummated following today's approval by Home Beneficial's
shareholders.  Home Beneficial, with assets of $1.4 billion and shareholders'
equity of $549 million, is the holding company of Home Beneficial Life
Insurance Company which markets individual life insurance products in six
mid-Atlantic states and the District of Columbia.
    Before the April 11, 1997 election deadline, Home Beneficial shareholders
could elect to exchange each of their Home Beneficial shares for $39.00 in
cash or 0.9670 share of American General common stock.  Home Beneficial
shareholders elected to receive $287 million of cash (43%) and 9.4 million
shares of American General common stock (57%).
    In connection with the close of the transaction, Home Beneficial paid a
special dividend of $300 million to American General representing excess
capital, proceeds of which will be used for general corporate purposes.
    American General plans to consolidate Home Beneficial's operations in to
American General Life and Accident Insurance Company, its Nashville-based life
insurance subsidiary.  The consolidation is expected to be completed by year
end and should result in a reduction in annual operating expenses of
$20 million.  The acquisition is expected to be non-dilutive to earnings per
share in 1997 and accretive thereafter.
    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 9 million
customers.  American General common stock is listed on the New York, Pacific,
London and Swiss stock exchanges.

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