Exhibit 12

                      AMERICAN GENERAL CORPORATION
           Computation of Ratio of Earnings to Fixed Charges and
               Ratio of Earnings to Combined Fixed Charges
                     and Preferred Stock Dividends
                             (Unaudited)
($ in millions)


                                                          Three Months Ended
                                                               March 31,    
                                                            1999        1998 
Consolidated operations:
  Income before income tax expense, minority interest,
    and dividends on preferred securities .............     $  477     $  428 
  Fixed charges deducted from income
    Interest expense ..................................        182        172 
    Implicit interest in rents ........................          5          5 
      Total fixed charges deducted from income ........        187        177 
        Earnings available for fixed charges...........     $  664     $  605 
  Fixed charges per above .............................     $  187     $  177 
  Dividends on preferred stock and securities .........         37         37 
    Combined fixed charges and preferred
      stock dividends .................................     $  224     $  214 
  Ratio of earnings to fixed charges ..................       3.54       3.41 
  Ratio of earnings to combined fixed charges
        and preferred stock dividends .................       2.96       2.83 

Consolidated operations, corporate fixed charges 
  and preferred stock dividends only:
    Income before income tax expense, minority 
      interest, and dividends on preferred securities .     $  477     $  428 
    Corporate fixed charges deducted from income -      
      corporate interest expense ......................         53         54 
        Earnings available for fixed charges ..........     $  530     $  482 
    Total corporate fixed charges per above ...........     $   53     $   54 
    Dividends on preferred stock and securities .......         37         37 
      Combined corporate fixed charges and
        preferred stock dividends .....................     $   90     $   91 
    Ratio of earnings to corporate fixed charges.......       9.95       8.85 
    Ratio of earnings to combined corporate
      fixed charges and preferred stock dividends .....       5.90       5.29 





Exhibit 12
(continued)

                       AMERICAN GENERAL CORPORATION
            Computation of Ratio of Earnings to Fixed Charges and
                 Ratio of Earnings to Combined Fixed Charges
                       and Preferred Stock Dividends
                              (Unaudited)
($ in millions)

                                                         Three Months Ended 
                                                              March 31,     
                                                            1999       1998 
American General Finance, Inc.:
  Income before income tax expense ...................     $   80     $   71
  Fixed charges deducted from income
    Interest expense .................................        138        122
    Implicit interest in rents .......................          4          3
      Total fixed charges deducted from income .......        142        125
        Earnings available for fixed charges .........     $  222     $  196
  Ratio of earnings to fixed charges .................       1.56       1.57