AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998





                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                   FORM 10-Q


(Mark One)

[X]       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
                       SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended              March 31, 1998                  

                                      OR

[ ]       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
                       SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________________ to _____________________

                         Commission file number 1-7981


                        American General Corporation                         
   (Exact name of registrant as specified in its articles of incorporation)


                Texas                                     74-0483432          
    (State of Incorporation)                         (I.R.S. Employer 
                                                       Identification No.) 


    2929 Allen Parkway, Houston, Texas                     77019-2155         
(Address of principal executive offices)                 (Zip Code) 


                                 (713) 522-1111                             
             (Registrant's telephone number, including area code)

Indicate  by check  mark whether  the  registrant: (1)  has filed  all reports
required to be filed by Section 13 or 15(d) of the  Securities Exchange Act of
1934  during the  preceding 12  months (or  for such  shorter period  that the
registrant  was required to  file such reports),  and (2) has  been subject to
such filing requirements for the past 90 days.

Yes   X  .     No      . 

As of April 30, 1998, there  were 253,680,098 shares (excluding shares held in
treasury and by a subsidiary) of American General's Common Stock and 2,317,701
shares of American General's 7% Convertible Preferred Stock outstanding.
<PAGE>
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998




                              INDEX TO FORM 10-Q

                                                                              
                                                                     Page
Part I.    FINANCIAL INFORMATION.


         Item 1.  Financial Statements.

                  Consolidated Statement of Income for the three
                    months ended March 31, 1998 and 1997 .............  2

                  Consolidated Balance Sheet at March 31, 1998 and       
                    December 31, 1997 ................................  3

                  Consolidated Statement of Shareholders' Equity for 
                    the three months ended March 31, 1998 and 1997 ...  4

                  Consolidated Condensed Statement of Cash Flows for
                    the three months ended March 31, 1998 and 1997 ...  5

                  Notes to Consolidated Financial Statements .........  6

         Item 2.  Management's Discussion and Analysis of Financial
                    Condition and Results of Operations .............. 10


Part II.   OTHER INFORMATION.


         Item 1.  Legal Proceedings .................................. 22

         Item 6.  Exhibits and Reports on Form 8-K ................... 22
 











<PAGE>







                                      -1-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998




                        PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements.

                         AMERICAN GENERAL CORPORATION
                       Consolidated Statement of Income
                                  (Unaudited)
                     (In millions, except per share data)

                                                        Three Months Ended
                                                            March 31,       
                                                        1998          1997  
Revenues 
 Premiums and other considerations ................   $   878       $   801 
 Net investment income ............................     1,226           971 
 Finance charges ..................................       327           320 
 Realized investment gains (losses) ...............         1            (6)
 Equity in earnings of Western National 
  Corporation .....................................         -            13 
 Other ............................................        47            43 
     Total revenues ...............................     2,479         2,142 

Benefits and expenses
 Insurance and annuity benefits ...................     1,224         1,040 
 Operating costs and expenses .....................       382           347 
 Commissions ......................................       249           210 
 Change in deferred policy acquisition costs and
  cost of insurance purchased .....................       (34)          (25)
 Provision for finance receivable losses ..........        49            68 
 Interest expense
  Corporate .......................................        50            36 
  Consumer Finance ................................       122           113 
 Other charges - Year 2000 costs ..................         9             2 
     Total benefits and expenses ..................     2,051         1,791 

Earnings
 Income before income tax expense, minority
  interest, and dividends on preferred securities .       428           351 
 Income tax expense ...............................       151           124 
 Income before minority interest and dividends on 
  preferred securities ............................       277           227 
 Minority interest in net income of Western
  National Corporation ............................        11             - 
 Net dividends on preferred securities of
  subsidiaries ....................................        22            17 
     Net income ...................................   $   244       $   210 

 Net income per share
  Basic ...........................................   $   .98       $   .87 
  Diluted .........................................   $   .96       $   .85 



                                      -2-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998




Item 1.  Financial Statements (continued).

                         AMERICAN GENERAL CORPORATION
                          Consolidated Balance Sheet 
                                  (Unaudited)
                       (In millions, except share data)

                                                   March 31,   December 31,
                                                     1998          1997    
Assets 
 Investments 
  Fixed maturity securities (amortized cost:
    $55,704; $44,961) ...........................   $58,690      $47,747  
  Mortgage loans on real estate .................     3,504        3,272  
  Equity securities (cost: $100; $93) ...........       124          116  
  Policy loans ..................................     2,228        2,156  
  Investment real estate ........................       232          233  
  Other long-term investments ...................       221          176  
  Short-term investments ........................       904          306  
      Total investments .........................    65,903       54,006  
 Assets held in Separate Accounts ...............    13,510       11,482  
 Finance receivables, net .......................     7,695        7,639  
 Deferred policy acquisition costs ..............     3,135        2,718  
 Cost of insurance purchased ....................       913          680  
 Goodwill .......................................     1,514          677  
 Other assets ...................................     3,381        2,835  
 Investment in Western National Corporation .....         -          583  
      Total assets ..............................   $96,051      $80,620  

Liabilities
 Insurance and annuity liabilities ..............   $58,208      $47,659  
 Liabilities related to Separate Accounts .......    13,510       11,482  
 Debt (short-term)
  Corporate ($1,291; $575) ......................     2,427        1,916  
  Consumer Finance ($3,296; $3,255) .............     7,365        7,266  
 Income tax liabilities .........................     1,623        1,380  
 Other liabilities ..............................     2,717        1,608  
      Total liabilities .........................    85,850       71,311  

Redeemable equity
 Company-obligated mandatorily redeemable
  preferred securities of subsidiaries
  holding solely company subordinated notes
    Non-convertible .............................     1,480        1,479  
    Convertible .................................       247          247  
      Total redeemable equity ...................     1,727        1,726  

Shareholders' equity
 Convertible preferred stock (shares issued 
  and outstanding: 2,317,701) ...................        85           85  
 Common stock (shares issued: 269,298,493; 
  259,135,053; outstanding: 253,621,032; 

                                      -3-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

  243,206,215) ..................................       928          326  
 Cost of treasury stock .........................      (622)        (621) 
 Retained earnings ..............................     6,776        6,624  
 Accumulated other comprehensive income .........     1,307        1,169  
      Total shareholders' equity ................     8,474        7,583  
      Total liabilities and equity ..............   $96,051      $80,620  





Item 1.  Financial Statements (continued).

                         AMERICAN GENERAL CORPORATION
                Consolidated Statement of Shareholders' Equity
                                  (Unaudited)
                     (In millions, except per share data)

                                               Three Months Ended
                                                    March 31,              
                                            1998                1997       
                                                Compre-             Compre-
                                                hensive             hensive
                                      Total     Income     Total    Income 
Convertible preferred stock
 Balance at beginning and end of 
  period ...........................  $   85               $   85 

Common stock
 Balance at beginning of period ....     326                  572 
 Issuance of shares for Western 
  National Corporation acquisition..     580                    - 
 Valuation of stock options issued 
  for acquisition ..................      37                    - 
 Issuance of treasury shares .......     (15)                   2 

 Balance at end of period ..........     928                  574 

Cost of treasury stock
 Balance at beginning of period ....    (621)                (860)
 Share repurchases .................     (31)                (127)
 Issuance under employee benefit  
  plans and other ..................      30                   12 

 Balance at end of period ..........    (622)                (975)

Retained earnings
 Balance at beginning of period ....   6,624                6,420 
 Net income ........................     244    $  244        210    $  210 
 Cash dividends (per share)
  Preferred stock ($.64; $.64) .....      (1)                  (1)
  Common stock ($.38; $.35) ........     (91)                 (79)
 Other .............................       -                    1 

 Balance at end of period ..........   6,776                6,551 

                                      -4-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

Accumulated other comprehensive 
 income
  Balance at beginning of period....   1,169                  627 
  Change in net unrealized gains  
   (losses) on securities, net of 
   reclassification adjustment .....     137       137       (503)     (503)
  Other ............................       1         1          -         - 

  Balance at end of period .........   1,307       138        124      (503)

   Comprehensive income (loss) .....            $  382               $ (293)

   Total shareholders' equity ......  $8,474               $6,359 






Item 1.  Financial Statements (continued).

                         AMERICAN GENERAL CORPORATION
                Consolidated Condensed Statement of Cash Flows
                                  (Unaudited)
                                 (In millions)

                                                       Three Months Ended
                                                           March 31,      
                                                        1998        1997  

Operating activities
       Net cash provided by operating activities ...  $   637     $   749 

Investing activities 
 Investment purchases ..............................   (2,342)     (3,887)
 Investment dispositions and repayments ............    1,748       3,289 
 Finance receivable originations and purchases .....   (1,274)     (1,017)
 Finance receivable principal payments received ....    1,147       1,082 
 Net (increase) decrease in short-term investments .       35        (248)
 Acquisition of Western National Corporation .......     (590)          - 
 Other, net ........................................      (30)          5 
       Net cash used for investing activities ......   (1,306)       (776)

Financing activities
 Retirement Services and Life Insurance
   Policyholder account deposits ...................      931         814 
   Policyholder account withdrawals ................     (920)       (781)
      Net policyholder account deposits ............       11          33 
   Short-term collateralized financings ............      315           - 
       Total Retirement Services and Life Insurance.      326          33 
Consumer Finance
   Net increase (decrease) in short-term debt ......       41         (94)
   Long-term debt issuances ........................      536           2 
   Long-term debt redemptions ......................     (479)       (208)
        Total Consumer Finance .....................       98        (300)

                                      -5-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

 Corporate
   Net increase in short-term debt .................      620          56 
   Long-term debt redemptions ......................     (354)          - 
   Dividends on common and preferred stock .........      (92)        (80)
   Common stock repurchases ........................      (31)       (128)
   Issuance of preferred securities of subsidiaries.        -         498 
   Other, net ......................................       68         (21)
        Total Corporate ............................      211         325 
         Net cash provided by 
          financing activities .....................      635          58 

Net increase (decrease) in cash ....................      (34)         31 
Cash at beginning of period ........................      263         176 
Cash at end of period ..............................  $   229     $   207 

Supplemental disclosure of cash flow information:
 Cash paid (received) during the period for
   Income taxes ....................................  $   (98)    $   (13)
   Interest
    Corporate ......................................       59          23 
    Consumer Finance ...............................      139         130 
   Dividends on preferred securities of
    subsidiaries ...................................       14          14 





Item 1.  Financial Statements (continued).

                         AMERICAN GENERAL CORPORATION
                  Notes to Consolidated Financial Statements
                                March 31, 1998

1.   Accounting  Policies. The  accompanying unaudited  consolidated financial
     statements of American General Corporation and its subsidiaries (American
     General or the company)  have been prepared in accordance  with generally
     accepted  accounting principles for interim  periods.  In  the opinion of
     management, these  statements include all adjustments  that are necessary
     for a fair presentation of the company's consolidated  financial position
     at  March  31,   1998,  and  the  consolidated  results   of  operations,
     shareholders' equity, and cash flows for the three months ended March 31,
     1998 and 1997.

2.   New  Accounting Standard.  During first quarter 1998, the company adopted
     Statement of Financial Accounting Standards 130, "Reporting Comprehensive
     Income,"  which   establishes  standards  for  reporting  and  displaying
     comprehensive  income and  its  components in  the financial  statements.
     American  General   elected  to  report  comprehensive   income  and  its
     components in  the consolidated statement of  shareholders' equity, which
     is  included  herein.   Application  of  this  statement  did not  change
     recognition or measurement of  net income and, therefore, did  not impact
     the company's consolidated results of operations or financial position.

3.   Acquisition  of  Western National.   On  February  25, 1998,  the company

                                      -6-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

     acquired  the   remaining  54%   equity  interest  of   Western  National
     Corporation  (Western National)  for $1.2  billion.   The purchase  price
     consisted  of $580  million  cash and  10.2  million shares  of  American
     General common stock.  In addition, the company issued options to acquire
     1.4  million  shares   of  American  General  common  stock   to  replace
     outstanding options to acquire  Western National common stock.   The fair
     value of  these options,  excluding options  surrendered for  $10 million
     cash pursuant to a pre-existing employment agreement, was $37 million.

     Western  National's results  of  operations  and  cash  flows  have  been
     consolidated in  the company's financial statements  effective January 1,
     1998.  Earnings attributable  to minority interests through  February 25,
     1998 have been reflected as a charge against consolidated income.  

     The  acquisition was  accounted for  using the  purchase method,  and the
     purchase price has  been allocated to Western  National's specific assets
     and  liabilities based on management's best estimate of their fair values
     at  the date  of acquisition.     Evaluation of  fair values  assigned to
     Western National's assets and liabilities (primarily related to insurance
     and annuity  liabilities) is continuing,  and allocation of  the purchase
     price  may be  adjusted when  additional information  is available.   The
     difference between  the  aggregate  purchase  price and  the  net  assets
     acquired is  attributed to goodwill that will be amortized on a straight-
     line basis over 40 years.  





Item 1.  Financial Statements (continued).

     Non-cash  activities related to the acquisition that are not reflected in
     the consolidated condensed statement  of cash flows for the  three months
     ended March 31, 1998 were as follows:

     (In millions)

     Fair value of assets acquired                    $ 7,224 
     Liabilities assumed                               (6,017)
     Issuance of common stock                            (580)
     Fair value of stock options issued                   (37)
       Net cash paid                                  $   590 

     Western  National  is  the  parent  of  Western National  Life  Insurance
     Company,  which changed  its name to  American General  Annuity Insurance
     Company (American General Annuity) effective May 1, 1998.

4.   Calculation of Earnings Per Share.  The calculation  of basic and diluted
     earnings per share follows:

                                                  Three Months Ended
                                                       March 31,         
     (In millions, except share data)             1998            1997   

     Net income                                      $244            $210 

                                      -7-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

     Net dividends on convertible
      preferred stock                                  (1)             (1)
     Earnings available to common 
      shareholders (a)                                243             209 
     Net dividends on dilutive securities
       Convertible preferred securities
        of subsidiary                                   3               3 
       Convertible preferred stock                      1               1 
     Earnings available to common 
      shareholders assuming dilution (b)             $247            $213 

     Average shares outstanding (a)           247,263,168     239,627,435 
     Dilutive securities
       Convertible preferred securities
        of subsidiary                           6,144,016       6,144,016 
       Convertible preferred stock              2,317,701       2,396,023 
       Stock options                            1,558,167       1,277,704 
     Average shares outstanding 
      assuming dilution (b)                   257,283,052     249,445,178 

     Net income per share
       Basic                                         $.98            $.87 
       Diluted                                        .96             .85 

     (a) Used to compute basic earnings per share.
     (b) Used to compute diluted earnings per share.




Item 1.  Financial Statements (continued).

5.   Investing Activities.  Cash flows related to investing activities were as
     follows:

                                                        Dispositions and
                                    Purchases              Repayments    
                                Three Months Ended     Three Months Ended
     (In millions)                  March 31,              March 31,     
                                 1998        1997       1998        1997 
     Fixed maturity securities  $2,279      $3,738     $1,584      $3,096 
     Mortgage loans                 38         103        131         133 
     Equity securities               1           -          6          19 
     Other                          24          46         27          41 
       Total                    $2,342      $3,887     $1,748      $3,289 

6.   Derivative Financial Instruments.   In March 1998,  the company purchased
     options  to enter into interest rate swap agreements (swaptions) to limit
     its exposure  to reduced spreads  between investment yields  and interest
     crediting  rates   should  interest  rates   decline  significantly  over
     prolonged periods.  These swaptions, with a total notional amount of $725
     million and strike rates ranging from  4.00% to 5.00%, expire during 1998
     and 1999.

     American General Annuity had  interest rate swap agreements with  a total

                                      -8-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

     notional amount  of $120  million outstanding  at  the acquisition  date.
     These interest rate swap  agreements, which require the receipt  of fixed
     rates and  the payment of floating  rates, were entered into  by American
     General Annuity to convert specific investment securities from a floating
     rate to a fixed rate basis.

     Derivative  financial instruments did not  have a material  effect on net
     investment income,  interest  expense, or  net  income during  the  three
     months ended March 31, 1998 or 1997.

7.   Dollar Rolls.  American  General has entered into dollar  roll agreements
     as part of its strategy to increase investment yields.   Dollar rolls are
     agreements  to  sell  mortgage-backed  securities  (MBSs) and  repurchase
     substantially the  same securities at a  specified price and date  in the
     future.   The dollar rolls are accounted for as short-term collateralized
     financings  and are  included  in other  liabilities.   American  General
     Annuity had outstanding dollar  rolls of $520 million at  the acquisition
     date.    At March  31,  1998,  the company  had  outstanding dollar  roll
     agreements  of  $845  million, which  were  collateralized  by  MBSs with
     approximately the equivalent fair value.   The average amount outstanding
     and the  weighted average interest  rate on  dollar rolls  for the  three
     months ended March 31, 1998 were $657 million and 5.02%, respectively.









Item 1.  Financial Statements (continued).

8.   Legal Contingencies.

     Market Conduct.  In  recent years, various life insurance  companies have
     been  named as  defendants  in class  action  lawsuits relating  to  life
     insurance pricing and  sales practices,  and a number  of these  lawsuits
     have resulted in substantial settlements.   Certain of American General's
     subsidiaries are defendants in such purported class action lawsuits filed
     since  1996, asserting  claims related  to  pricing and  sales practices.
     These  claims are being defended  vigorously by the  subsidiaries.  Given
     the  uncertain  nature  of  litigation  and  the  early  stages  of  this
     litigation,  the outcome  of these  actions cannot  be predicted  at this
     time.   American General nevertheless believes that  the ultimate outcome
     of all such pending  litigation should not have a material adverse effect
     on  American General's  consolidated financial position.  It  is possible
     that  settlements or  adverse  determinations in  one  or more  of  these
     actions  or other future proceedings could have a material adverse effect
     on  American General's  consolidated results  of  operations for  a given
     period.   No  provision for  any adverse  determinations in  this pending
     litigation has been made in the consolidated financial statements because
     the amount of the loss,  if any, from these actions cannot  be reasonably
     estimated at this time.


                                      -9-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

     Other.   In addition to  those lawsuits or  proceedings disclosed herein,
     the company is a  party to various other lawsuits and proceedings arising
     in  the  ordinary  course  of  business.   Many  of  these  lawsuits  and
     proceedings  arise in jurisdictions, such as  Alabama, that permit damage
     awards disproportionate to  the actual economic damages incurred.   Based
     upon information presently available, the company believes that the total
     amounts that will ultimately be paid, if any, arising from these lawsuits
     and proceedings will not have a  material adverse effect on the company's
     consolidated results  of operations and financial position.   However, it
     should  be noted  that the  frequency of  large damage  awards, including
     large punitive damage  awards, that bear little or  no relation to actual
     economic  damages incurred  by plaintiffs  in jurisdictions  like Alabama
     continues  to create the potential  for an unpredictable  judgment in any
     given suit.

9.   Tax  Return Examinations.    American General  and  the majority  of  its
     subsidiaries file a consolidated federal income tax return.  The Internal
     Revenue Service (IRS) has completed examinations of the company's returns
     through 1988  and has  raised certain  issues related  to 1987  and 1988,
     which  the company  is  currently  contesting.    The  IRS  is  currently
     examining the company's tax returns for 1989 through 1996.   Although the
     final  outcome of  any  issue raised  in  examination is  uncertain,  the
     company believes  that the  ultimate liability, including  interest, will
     not  materially exceed  amounts  recorded in  the consolidated  financial
     statements.







Item 2.   Management's  Discussion  and  Analysis of  Financial  Condition and
          Results of Operations.

This  item presents  specific comments  on material  changes to  the company's
consolidated results of operations,  capital resources, and liquidity for  the
periods  reflected in the interim financial statements filed with this report.
This  analysis should be read  in conjunction with  the consolidated financial
statements and related notes on pages 2 through 9  of this Quarterly Report on
Form 10-Q.


                                   OVERVIEW

American General reported financial highlights as follows:

                                                Three Months Ended
          (In millions,                              March 31,     
          except share data)                    1998          1997 

          Net income                          $   244       $   210
          Net income per share (diluted)          .96           .85
          Revenues and deposits                 4,409         3,403
          Assets                               96,051        74,443

                                     -10-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

          Shareholders' equity                  8,474         6,359

As discussed below, the acquisitions of Home Beneficial Life on April 16, 1997
and American General Annuity  on February 25, 1998 affected  the comparability
of the company's quarter-to-quarter financial results.


                              BUSINESS DIVISIONS

To  facilitate  meaningful  period-to-period  comparisons,  earnings  of  each
business division include  earnings from its business  operations and earnings
on  that amount  of equity considered  necessary to support  its business, and
exclude  non-recurring items  and  net realized  investment  gains.   Division
earnings were as follows:

                                              Three Months Ended
                                                   March 31,    
          (In millions)                        1998        1997 

          Retirement Services                 $  112      $   63   
          Life Insurance                         158         138   
          Consumer Finance                        45          39   
           Division earnings                  $  315      $  240   










Item 2.   Management's Discussion  and  Analysis of  Financial  Condition  and
          Results of Operations (continued).

Retirement Services

Retirement Services division results were as follows:

                                               Three Months Ended
                                                   March 31,     
          (In millions)                          1998       1997 

          Earnings                             $   112    $    63 
          Assets
           Investments                          35,343     21,956 
           Separate Accounts                    12,466      7,435 
          Sales
           Tax-qualified                           391        421 
           Non-qualified                           579         27 
          Deposits
           Fixed
            Tax-qualified                          372        425 
            Non-qualified                          549          - 

                                     -11-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

           Variable (mainly tax-qualified)         551        421 
          Operating expenses                        57         36 

Earnings.   Division earnings  increased 77% for the  three months ended March
31, 1998  compared to the  same period  in 1997.   American General  Annuity's
operations, which were included in the division's results effective January 1,
1998,  increased division earnings by  $28 million.   Earnings attributable to
minority  interests  through  February  25,  1998  are reported  in  corporate
operations.    Asset  growth,  higher  investment  income  from  prepayment of
investments, and management of fixed investment spread also contributed to the
division's profitability.  Asset  growth, excluding American General Annuity's
$13.2 billion of assets at the acquisition date and the  fair value adjustment
related to the division's securities, was 20% from March 31, 1997 to March 31,
1998,  and 7% from  December 31,  1997.   This growth  was attributable  to an
increase  in variable deposits  in each of the  division's primary markets, as
well as stock market appreciation on assets held in Separate Accounts.

Sales  and Deposits.  American  General Annuity, which  primarily markets non-
qualified  fixed annuities  through financial  institutions,  contributed $557
million to  sales  and total  deposits  in the  first  three months  of  1998.
Excluding American General Annuity, sales in first quarter 1998  were 8% lower
than  in the  same  period in  1997, because  1997 had  record high  levels of
capital  transfers.    Excluding  American  General  Annuity,  total  deposits
increased 8% and variable  account deposits increased 29% for the three months
ended  March 31,  1998 compared  to the  same period  in 1997  as a  result of
customers' preference  for equity-based instruments.   The division's Separate
Account  assets,  which relate  to  variable account  options,  increased $5.0
billion from March 31,  1997 to March 31, 1998 and $1.9  billion from December
31, 1997, reflecting deposit growth and stock market appreciation.





Item 2.   Management's  Discussion and  Analysis  of  Financial Condition  and
          Results of Operations (continued).

Fixed  Investment Spread.   Investment  results and  crediting rates  on fixed
accounts were as follows:

                                                Three Months Ended
                                                    March 31,     
          (In millions)                          1998        1997 

          Net investment income                 $ 646       $ 420
          Investment yield                       7.98%       7.93%
          Average crediting rate                 5.94        6.18
          Fixed investment spread                2.04        1.75

Net investment income increased 54% in 1998  as a result of the acquisition of
American  General Annuity,  growth  in invested  assets,  and an  increase  in
investment yield.  Investment yield for  the three months ended March 31, 1998
increased 5 basis points compared to the same period in 1997 due to changes in
investment  strategy  and  higher  premium  income  on  investments  called or
tendered before their  maturity dates.  This increase  was partially offset by

                                     -12-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

lower market rates on new investment purchases.  In  response to the effect of
declining market rates  on investment  yield, the company  adjusted the  rates
credited  to policyholders.    As a  result, the  investment  spread on  fixed
accounts increased 29 basis points in  first quarter 1998 compared to the same
period in 1997.

Separate   Account   Fees.     Separate   Account   fees  include   mortality,
administrative,  and  investment  advisory  fees.   These  fees  increased $13
million, or  55%, for the  first three  months of  1998 compared  to the  same
period in 1997, due to growth in Separate Account assets.

Surrenders.  Policyholder  surrenders are influenced  by both competition  and
market performance.  The  division's rate of policyholder surrenders  for tax-
qualified accounts was 5.45% of average reserves for the first three months of
1998 compared to  5.28% for the same period  in 1997.  The division's  rate of
policyholder surrenders for non-qualified  accounts, which relate primarily to
American General Annuity's block  of business, was 10.10% of  average reserves
for the first three months of 1998.

Operating  Expenses.  Operating expenses  increased $21 million  for the three
months  ended March 31, 1998  compared to the  same period of 1997  due to the
addition  of  American  General  Annuity's  operating  expenses  and  variable
expenses to support the division's growth in deposits.  The ratio of operating
expenses to average assets improved to .43% for the first three months of 1998
from .48%  for the same period of 1997, reflecting  growth in assets in excess
of growth in operating  expenses and American General Annuity's  lower overall
expense ratio.








Item 2.   Management's  Discussion and  Analysis  of Financial  Condition  and
          Results of Operations (continued).

Life Insurance

Life Insurance division results were as follows:

                                               Three Months Ended
                                                   March 31,     
          (In millions)                          1998       1997 

          Earnings                             $   158    $   138
          Assets                                35,212     32,454
          Insurance and annuity liabilities     25,328     24,625
          Premiums and other considerations        776        730
          Net investment income                    548        510
          Insurance and annuity benefits           731        704
          Operating expenses                       187        178

Earnings.    Division  earnings for  the  three months  ended  March  31, 1998

                                     -13-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

increased 14% compared to the same  period in 1997. This increase was  due to:
1) the acquisition of Home Beneficial Life in April 1997, 2) higher investment
income   from  prepayment  of  investments,  and  3)  cost  savings  from  the
consolidation of  operations in connection  with recent  acquisitions and  the
realignment of the division, partially offset by startup costs for new product
development  and new  systems designed  to support  the division's  growth and
efficiency objectives.

Premiums and Deposits.   Sales and deposits  of individual life insurance  and
annuities were as follows:

                                               Three Months Ended
                                                   March 31,     
          (In millions)                         1998        1997 

          Individual life insurance
           Sales                               $  177      $  116
           Deposits                               340         281
          Annuities
           Sales                                  109          96
           Deposits                               135         134

Premiums and other considerations increased  6% for the first three  months of
1998 compared  to the same period of  1997 primarily due to  new sales and the
acquisition  of Home  Beneficial Life.   Individual  life insurance  sales and
deposits  for first quarter  1998 exceeded comparable 1997  amounts by 53% and
21%,  respectively,  primarily due  to the  division's  recent entry  into the
corporate executive benefits market and the addition of Home Beneficial Life.








Item 2.   Management's  Discussion and  Analysis  of  Financial Condition  and
          Results of Operations (continued).

Annuity  sales increased  13%  in 1998  due  to recently  introduced  variable
annuity products, partially offset by lower structured settlement sales due to
an  unfavorable interest-rate  environment.   Other fixed  annuity  sales also
declined  due to  customers' preference  for equity-based  products.   Annuity
deposits  remained essentially flat  as a result  of the decline  in the fixed
annuity business, which offset the growth in variable annuities.

Investment  Spread.  Investment results  and interest crediting  rates were as
follows:

                                               Three Months Ended
                                                    March 31,    
                                                 1998       1997 

          Investment yield                       8.34%      8.10% 
          Average crediting rate                 6.08       6.11  

                                     -14-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

          Investment spread                      2.26       1.99  

Net investment income increased 8% for the first three months of 1998 compared
to the same period of 1997 due to the Home Beneficial Life acquisition, growth
in invested  assets, and  an  increase in  premiums on  investments called  or
tendered before their maturity dates.  Although market rates were lower on new
investment  purchases, investment yield and spread increased due to the higher
premiums  on calls  and tenders  and lower  investment expenses.   The  spread
between investment yield  and the  average rate credited  to policyholders  is
within product pricing assumptions.

Mortality and Persistency.  Death claims and premium termination rates were as
follows:

                                               Three Months Ended
                                                    March 31,    
                                                 1998       1997 

          Death claims (in millions)           $  251     $  231 
          Death claims per $1,000
           in force                            $ 3.64     $ 3.47 
          Premium termination rate              12.68%     13.12%

Death  claims, included  in insurance  and annuity  benefits, increased  9% in
first quarter 1998 compared to the same period of 1997 due to the inclusion of
Home  Beneficial and less  favorable mortality experience in  1998.  The lower
premium termination rate for the three months ended March 31, 1998 compared to
the same  period in 1997 reflected  lower terminations in the  health and fire
lines of business.   Overall, mortality and persistency experience  was within
pricing assumptions.







Item 2.   Management's  Discussion  and Analysis  of  Financial Condition  and
          Results of Operations (continued).

Operating Expenses.   Operating expenses  increased $9 million  for the  first
three  months of  1998 compared  to the  same period  in 1997.   During  first
quarter  1998,   the  division   achieved  cost   savings  from   the  ongoing
consolidation and integration of acquired  companies which were reinvested  in
the  development of new variable life and  annuity products and the systems to
support  those  products.   In  addition,  first  quarter  1998 included  Home
Beneficial's operating expenses which were not included in first quarter 1997.
The ratio of operating expenses to direct premiums and deposits was 16.60% for
the first three months of 1998 compared to 17.19% in the same period  of 1997.
The  lower ratio reflected the higher life insurance deposits in first quarter
1998. 

Consumer Finance

Consumer Finance division results were as follows:

                                     -15-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

                                                Three Months Ended
                                                     March 31,    
          (In millions)                           1998      1997  

          Earnings                              $    45   $    39 
          Average finance receivables             8,002     7,550 
          Yield on finance receivables            16.48%    17.09%
          Borrowing cost                           6.71      6.71 
          Interest spread                          9.77     10.38 
          Operating expenses                    $   119   $   112 

Earnings.   Division  earnings  for  the three  months  ended March  31,  1998
increased 15% compared  to the same period of 1997,  primarily due to improved
credit quality and an increase in average finance receivables.

Finance Receivables.  Average finance receivables in the first quarter of 1998
increased $452 million compared to first quarter 1997.  Finance receivables at
March 31, 1998 increased $609 million from March 31, 1997 and $51 million from
December 31, 1997.  These  increases were primarily due to the  growth of real
estate  secured loans, which reflect  the company's program  to improve credit
quality  by increasing  the  proportion of  real  estate secured  loans.   The
increase from March  31, 1997 was also attributable to  growth in retail sales
contracts resulting from the introduction of new marketing programs, partially
offset  by the sale of  certain under-performing private  label receivables in
second quarter 1997.












Item 2.   Management's  Discussion  and Analysis  of  Financial Condition  and
          Results of Operations (continued).

Credit Quality.  

The allowance for  finance receivable  losses and delinquencies  at March  31,
1998,  December 31, 1997, and  March 31, 1997,  and charge offs  for the three
months then ended, were as follows:

                                    March 31,   December 31,   March 31,
     ($ in millions)                  1998          1997         1997   

     Allowance for finance 
      receivable losses               $ 368        $ 373        $ 390 
       % of finance receivables        4.56%        4.65%        5.23%

     Delinquencies                    $ 303        $ 310        $ 304 
       % of finance receivables        3.49%        3.60%        3.76%

                                     -16-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

     Charge offs                      $  54        $  68        $  73 
       % of average finance 
        receivables                    2.70%        3.64%        3.83%

The decreases in the  allowance, delinquency, and charge off  ratios reflected
the  positive  impact of  the  company's credit  quality  improvement program,
including the increased  proportion of  real estate secured  loans and  higher
underwriting standards.  The decreases in the allowance and delinquency ratios
from  March 31,  1997  were also  due to  the  sale of  certain  private label
receivables in second quarter 1997.

Interest  Spread.    The interest  spread  between  yield  and borrowing  cost
decreased 61 basis  points for the three months ended  March 31, 1998 compared
to the  same  period in  1997  due to  declining  yields.   The  1998  decline
reflected  the  increased proportion  of  real  estate  secured  loans,  which
generally have a higher level of credit quality and lower yields.

Operating Expenses.   Operating expenses  as a percentage  of average  finance
receivables decreased to  5.87% for the first three months  of 1998 from 5.96%
for  the  same  period  of  1997  due  to  the  increase  in  average  finance
receivables, which more than offset the increase in operating expenses.


                                  INVESTMENTS

Invested assets consist primarily of fixed maturity securities, mortgage loans
on real estate, and policy loans.










Item 2.   Management's  Discussion  and Analysis  of  Financial Condition  and
          Results of Operations (continued).

Fair  Value  of Securities.    A  decrease  in  interest rates  and  resulting
increases in bond values in first quarter 1998 caused a  $142 million increase
in the fair  value adjustment to fixed maturity securities  and a related $136
million  positive adjustment to  shareholders' equity from  December 31, 1997.
The  components  of  the  adjustment  to  report  fixed  maturity  and  equity
securities at fair value at March 31, 1998 and December 31, 1997, and the 1998
change, were as follows:

                                    March 31,   December 31,
(In millions)                         1998          1997        Change 

Fair value adjustment to fixed 
 maturity securities                  $2,986      $ 2,844      $   142 
Decrease in deferred policy
 acquisition costs and cost of

                                     -17-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

 insurance purchased                    (990)      (1,062)          72 
Increase in deferred income taxes       (706)        (628)         (78)
Net unrealized gains
 Fixed maturity securities             1,290        1,154          136 
 Equity securities                        16           15            1 
   Net unrealized gains on
     securities                       $1,306      $ 1,169      $   137 

Fixed  Maturity  Securities.   At March  31,  1998, fixed  maturity securities
included $43.7  billion of corporate  bonds, $12.7 billion  of mortgage-backed
securities, and $2.1 billion  of bonds issued  by governmental agencies.   The
average credit rating  of the fixed  maturity securities was  A+ at March  31,
1998  and December 31, 1997.  Average  credit ratings by category at March 31,
1998 were as follows:

                                   March 31,                Average Credit
(In millions)                        1998           %           Rating    

Investment grade                    $43,122         73%          A   
Mortgage-backed                      12,725         22           AAA 
Below investment grade                2,843          5           BB- 
 Total fixed maturity 
  securities                        $58,690        100%          A+  

Below Investment Grade.  Below investment grade securities have credit ratings
below BBB-.  Below investment  grade securities were 4% of invested  assets at
March 31, 1998 and December 31, 1997.  The company invests in below investment
grade  securities to enhance the  overall yield of  the portfolio.  Investment
income from below  investment grade securities was  $58 million for  the three
months  ended March  31, 1998 and  $35 million  for the  same period  in 1997.
Realized investment gains (losses) were immaterial.







Item 2.   Management's  Discussion  and Analysis  of  Financial  Condition and
          Results of Operations (continued).

Non-Performing.  Bonds  are deemed to  be non-performing  when the payment  of
interest  is sufficiently uncertain as to  preclude accrual of interest.  Non-
performing  bonds were less  than 0.1% of  total fixed maturity  securities at
March 31, 1998 and December 31, 1997.

Mortgage Loans.  Mortgage loans on  real estate, consisting primarily of loans
on  office and retail  properties, represented 5% of  invested assets at March
31, 1998 and  6% at December 31, 1997.  Mortgage  loan statistics at March 31,
1998 and December 31, 1997 were as follows:

                                             March 31,   December 31,
     (In millions)                             1998          1997    

     Mortgage loans                           $ 3,553      $ 3,326 

                                     -18-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

     Allowance for losses                         (49)         (54)
       Mortgage loans, net                    $ 3,504      $ 3,272 

     Allowance for losses                        1.4%         1.6% 
     Delinquent loans (60+ days)             $    33       $    20 
       % of mortgage loans                        .9%           .6%
     Restructured loans                      $    99       $   115 
       % of mortgage loans                       2.8%          3.5%
     Yield on restructured loans                 7.8%          8.6%

Watch  List.  At  March 31, 1998,  $89 million of  mortgage loans were  on the
company's  watch list,  compared to $128  million at  December 31,  1997.  The
decrease was  due to  loans that  were no  longer undercollateralized or  were
reinstated,  refinanced,  or repaid.    While  the  watch  list loans  may  be
predictive of higher non-performing loans in the future,  the company does not
anticipate  a significant  effect on  operations, liquidity,  or capital  from
these loans.


                               CAPITAL RESOURCES

Corporate Capital.   American General's  target capital structure  consists of
25% corporate debt, 15% redeemable  equity, and 60% shareholders' equity.   At
March 31, 1998, corporate  capital totaling $11.3 billion, excluding  the fair
value  adjustment on  securities,  consisted of  $2.4  billion corporate  debt
(21%),  $1.7 billion redeemable  equity (16%), and  $7.2 billion shareholders'
equity (63%).

On February 25,  1998, American General issued  10.2 million shares  of common
stock  and paid $580 million cash to  complete the $1.2 billion acquisition of
Western National.  The cash portion of the purchase price was financed through
short-term  borrowings.  Additionally,  the company issued  options to acquire
1.4 million shares  of American General common stock  with an average exercise






Item 2.   Management's  Discussion  and  Analysis of  Financial  Condition and
          Results of Operations (continued).

price of $24.75  to replace  outstanding options to  acquire Western  National
common stock.  The fair value of these options, excluding options  surrendered
for $10  million cash pursuant to a pre-existing employment agreement, was $37
million.   In  connection with  the acquisition,  the company  assumed Western
National's long-term debt of $148 million.

Subsequent  to the  acquisition  date, several  of American  General Annuity's
ratings were raised.  American General Annuity's claims-paying ability ratings
at April 30, 1998 were as follows:

                Standard     Duff &                  A.M. 
                & Poor's     Phelps     Moody's      Best


                                     -19-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

                  AA-         AAA         Aa3         A+

Consumer Finance.   The Consumer  Finance division's  capital varies  directly
with the  amount of total  finance receivables.   The capital mix  of consumer
finance  debt and  equity is based  primarily upon  maintaining leverage  at a
level that supports cost-effective funding.

Consumer  finance capital  of $8.6  billion at  March 31,  1998 included  $7.4
billion  of  consumer finance  debt, which  was not  guaranteed by  the parent
company,  and $1.2 billion of equity.   The Consumer Finance division's target
ratio of debt to  tangible net worth, a standard measure  of financial risk in
the consumer  finance industry, is 7.5 to 1.   The ratio equaled the target at
March 31, 1998 and December 31, 1997.


                                   LIQUIDITY

The company's  overall liquidity  is based  on cash  flows  from the  business
divisions  and its  ability to  borrow in  both the  long-term and  short-term
markets at  competitive rates.  At  March 31, 1998, the  company had committed
and  unused credit facilities of $4.8 billion.   The company believes that its
overall  sources of liquidity  will continue to  be sufficient to  satisfy its
foreseeable financial obligations.

Parent Company.   The parent  company received  $451 million of  net dividends
from subsidiaries  during the three months ended March 31, 1998.  No dividends
were paid to the parent company in first quarter  1997 because the company was
re-evaluating the capital requirements  for its business segments.   While the
subsidiaries  are restricted in  the amount of  dividends they may  pay to the
parent  company,  these  restrictions  are  not expected  to  affect  American
General's  ability to meet its cash obligations.  American General repurchased
 .5  million shares of its common  stock at a cost of  $31 million during first
quarter 1998.







Item 2.           Management's Discussion and Analysis of  Financial Condition
                  and Results of Operations (continued).

Retirement  Services and Life  Insurance.  Principal  sources of cash  for the
Retirement Services and Life Insurance divisions were as follows:

                                                  Three Months Ended 
                                                      March 31,      
(In millions)                                      1998        1997  

Operating activities                                $561        $645 
Fixed policyholder account deposits, 
 net of withdrawals                                   11          33 
Variable account deposits, net of 
 withdrawals                                         593         469 

                                     -20-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

Short-term collateralized financings                 315           - 

Operating  cash flows for the Retirement Services and Life Insurance divisions
decreased  $84 million in the first three months  of 1998 compared to the same
period of 1997, primarily due to tax recoveries received in 1997. The decrease
in  net fixed  policyholder  account deposits  and  increase in  net  variable
account deposits  in the first quarter  of 1998 was a  result of policyholders
seeking higher  returns in  equity-based investments, including  the company's
Separate  Accounts.  The decrease  in net fixed  policyholder account deposits
was partially offset  by the  acquisition of American  General Annuity,  which
primarily  markets fixed annuities.   Because the investment  risk on variable
accounts lies solely with  the policyholder, deposits and  withdrawals related
to  Separate Accounts are not included in the company's consolidated condensed
statement of cash flows.

The  major uses  of cash  were the  net purchase  of investments  necessary to
support increases in insurance and annuity liabilities, and net dividends paid
to the parent.  The subsidiaries in these divisions paid net dividends of $412
million in the first three months of 1998.

Consumer Finance.  Principal sources of cash for the Consumer Finance division
were as follows:

                                                  Three Months Ended 
                                                      March 31,      
(In millions)                                      1998        1997  

Operating activities                               $ 140       $ 169 
Increase (decrease) in borrowings                     98        (300)

Cash provided by operating  activities decreased in the first three  months of
1998 since first quarter 1997 included operations related to the non-strategic
assets sold in second quarter 1997.  Cash provided by  borrowings increased in
the three months ended March 31, 1998 compared to  the same period in 1997 due
to growth in receivables.






Item 2.   Management's  Discussion and  Analysis  of  Financial Condition  and
          Results of Operations (continued).

The major uses of cash were to fund finance receivables and net dividends paid
to the  parent company.   Net cash used  to fund finance  receivables was $127
million for the three months ended March 31, 1998, up from $65 million for the
same period  in 1997.   Net dividends paid  to the parent company  totaled $32
million in the first three months of 1998.


                                   YEAR 2000

The company is  in the process  of modifying its  computer systems to  be Year
2000 compliant.   During the first three months of  1998, the company incurred

                                     -21-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

and expensed $9  million (pretax) related to this project.   Through March 31,
1998, the company has  incurred and expensed $24  million (pretax) related  to
Year 2000 compliance.

The  company  expects to  substantially  complete  this  project during  1998.
However, risks and uncertainties exist in most significant systems development
projects.  If conversion of the company's systems is not completed on a timely
basis, due  to  non-performance by  third-party  vendors or  other  unforeseen
circumstances, the Year 2000 issue could have a material adverse impact on the
operations of the company.


                          FORWARD-LOOKING STATEMENTS

The statements contained  herein that  are not historical  facts are  forward-
looking statements  within the  meaning of  the Private  Securities Litigation
Reform Act.    Forward-looking statements  are  made based  upon  management's
current  expectations and  beliefs  concerning future  developments and  their
potential effects  upon the company.   There can  be no assurance  that future
developments affecting  the company will  be those anticipated  by management.
Actual  results  may differ  materially from  those  included in  the forward-
looking statements.

These  forward-looking statements  involve risks and  uncertainties including,
but  not  limited  to,  the  following:    (1)  changes  in  general  economic
conditions, including the performance of financial markets and interest rates;
(2) customer responsiveness  to both new  products and distribution  channels;
(3) competitive, regulatory, or tax changes  that affect the cost of or demand
for  the company's products; (4) adverse litigation results; (5) resolution of
market  conduct issues;  (6)  the company's  ability  to render  its  computer
systems  Year 2000  compliant;  and  (7)  the  company's  failure  to  achieve
anticipated levels of earnings or operational efficiencies related to recently
acquired companies, as well  as other cost-saving initiatives.   Investors are
also directed to other risks and uncertainties discussed in documents filed by
the company with the Securities and Exchange Commission.







                          PART II.  OTHER INFORMATION

Item 1. Legal Proceedings.

Reference  is  made  to Note  8  to  the  Registrant's Unaudited  Consolidated
Financial  Statements  in Part  I  of this  Form  10-Q for  the  quarter ended
March 31, 1998.

Item 6.  Exhibits and Reports on Form 8-K.

a.   Exhibits.

     Exhibit 4      Articles of Amendment to the Restated Articles of

                                     -22-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

                    Incorporation of American General (incorporated by
                    reference to Exhibit 4.2 to Registration Statement
                    No. 333-52103 filed by American General)

     Exhibit 10.1   Form of Change in Control Severance Agreement 

     Exhibit 10.2   American General Corporation Deferred Compensation
                    Plan (incorporated by reference to Exhibit 4.4 to
                    Registration Statement No. 333-52103 filed by 
                    American General)

     Exhibit 10.3   First Amendment to Employment Agreement, dated
                    as of February 1, 1998, between American General
                    and Robert M. Devlin

     Exhibit 10.4   First Amendment to Employment Agreement, dated
                    as of February 1, 1998, between American General
                    and Jon P. Newton

     Exhibit 10.5   First Amendment to Employment Agreement, dated
                    as of February 1, 1998, between American General
                    and James S. D'Agostino Jr.

     Exhibit 10.6   First Amendment to Supplemental Executive Retire-
                    ment Agreement, dated as of February 1, 1998,
                    between American General and Robert M. Devlin

     Exhibit 10.7   First Amendment to Supplemental Executive Retire-
                    ment Agreement, dated as of February 1, 1998,
                    between American General and Jon P. Newton

     Exhibit 10.8   First Amendment to Supplemental Executive Retire-
                    ment Agreement, dated as of February 1, 1998,
                    between American General and James S. D'Agostino Jr.

     Exhibit 10.9   Forms of Split-Dollar Agreement and Assignment of 
                    Life Insurance Policy as Collateral Agreement






Item 6.  Exhibits and Reports on Form 8-K (continued).

     Exhibit 11     Computation of Earnings per Share (included
                    in Note 4 of Notes to Financial Statements)

     Exhibit 12     Computation of Ratio of Earnings to Fixed
                    Charges and Ratio of Earnings to Combined
                    Fixed Charges and Preferred Stock Dividends

     Exhibit 27     Financial Data Schedule

b.   Reports on Form 8-K.

                                     -23-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998

     The following reports on Form 8-K were filed after December 31, 1997:

     (1)  Current Report on  Form 8-K dated January 26, 1998,  with respect to
          certain  executive  compensation  information  for  the  year  ended
          December 31, 1997.

     (2)  Current Report on Form 8-K dated  January 27, 1998, with respect  to
          issuance  of  an  earnings  release  announcing  certain   unaudited
          financial results for the year ended December 31, 1997.

     (3)  Current Report on Form 8-K dated February 19, 1998, with respect  to
          issuance of a press release announcing the closing date and exchange
          ratio in connection with the acquisition of Western National.

     (4)  Current Report on Form 8-K dated February 25,  1998, with respect to
          adoption  of  Statement  of   Financial  Accounting  Standards  128,
          "Earnings per Share," effective December 31, 1997.









                                    SIGNATURE





Pursuant  to the  requirements of  the  Securities Exchange  Act of  1934, the
Registrant has  duly caused  this report  to be  signed on  its behalf by  the
undersigned, thereunto duly authorized, on May 15, 1998.

AMERICAN GENERAL CORPORATION 
(Registrant)




By: PAMELA J. PENNY               
    Pamela J. Penny
    Vice President and Controller 
    (Duly Authorized Officer and 
    Chief Accounting Officer) 









                                     -24-
<PAGE>



   AMERICAN GENERAL CORPORATION
             FORM 10-Q
For the Quarter Ended March 31, 1998




                                 EXHIBIT INDEX

   Exhibit

      4             Articles of Amendment to the Restated Articles of
                    Incorporation of American General (incorporated by
                    reference to Exhibit 4.2 to Registration Statement
                    No. 333-52103 filed by American General)

     10.1           Form of Change in Control Severance Agreement 

     10.2           American General Corporation Deferred Compensation
                    Plan (incorporated by reference to Exhibit 4.4 to
                    Registration Statement No. 333-52103 filed by 
                    American General)

     10.3           First Amendment to Employment Agreement, dated
                    as of February 1, 1998, between American General
                    and Robert M. Devlin

     10.4           First Amendment to Employment Agreement, dated
                    as of February 1, 1998, between American General
                    and Jon P. Newton

     10.5           First Amendment to Employment Agreement, dated
                    as of February 1, 1998, between American General
                    and James S. D'Agostino Jr.

     10.6           First Amendment to Supplemental Executive Retire-
                    ment Agreement, dated as of February 1, 1998,
                    between American General and Robert M. Devlin

     10.7           First Amendment to Supplemental Executive Retire-
                    ment Agreement, dated as of February 1, 1998,
                    between American General and Jon P. Newton

     10.8           First Amendment to Supplemental Executive Retire-
                    ment Agreement, dated as of February 1, 1998,
                    between American General and James S. D'Agostino Jr.

     10.9           Forms of Split-Dollar Agreement and Assignment of
                    Life Insurance Policy as Collateral Agreement

     11             Computation of Earnings per Share (included in
                    Note 4 of Notes to Financial Statements)

     12             Computation of Ratio of Earnings to Fixed
                    Charges and Ratio of Earnings to Combined
                    Fixed Charges and Preferred Stock Dividends

     27             Financial Data Schedule


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