<PAGE>   1
 
EXHIBIT 23 -- CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
 
     We consent to the incorporation by reference in this Annual Report (Form
10-K) of American General Corporation of our report dated February 26, 1998,
included in the 1997 Annual Report to Shareholders of American General
Corporation.
 
     Our audits also included the financial statement schedules of American
General Corporation listed in Item 14(a). These schedules are the responsibility
of the Company's management. Our responsibility is to express an opinion based
on our audits. In our opinion, the financial statement schedules referred to
above, when considered in relation to the basic financial statements taken as a
whole, present fairly in all material respects the information set forth herein.
 
     We also consent to the incorporation by reference in
 
<TABLE>
<CAPTION>
                               REGISTRATION
                                STATEMENT
                                  NUMBER                             ON FORM
-----------------------------------------------------------------------------------
<S>    <C>                                                           <C>     <C>
       333-13407...................................................    S-8
       33-39200....................................................    S-8
       333-13401...................................................    S-8
       33-39201....................................................    S-8
       333-13395...................................................    S-8
       33-51973....................................................    S-8
       2-98021.....................................................    S-8
       333-23275...................................................    S-8
       333-29383...................................................    S-8
       333-29393...................................................    S-8
       333-46895...................................................    S-8
       333-37851...................................................    S-3
       333-37877...................................................    S-3
       33-58317....................................................    S-3
       33-58317-01.................................................    S-3
       33-58317-02.................................................    S-3
       33-51045....................................................    S-3
       333-40583...................................................    S-3
       333-40583-01................................................    S-3
       333-40583-02................................................    S-3
       333-40583-03................................................    S-3
       333-40583-04................................................    S-3
-----------------------------------------------------------------------------------
</TABLE>
 
of our report dated February 26, 1998, with respect to the consolidated
financial statements incorporated herein by reference, and our report included
in the preceding paragraph with respect to the financial statement schedules
included in this Annual Report (Form 10-K) of American General Corporation.
 
                                               /s/ ERNST & YOUNG LLP
 
Houston, Texas
March 26, 1998