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PART IV (Continued)
AMERICAN GENERAL CORPORATION
 
EXHIBIT 12 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF
EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
<TABLE>
<CAPTION>
For the Years Ended December 31,
In millions, except ratios                                      1996         1995         1994
<S>                                                           <C>          <C>          <C>
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Consolidated operations:
  Income before income tax expense and net dividends on
     preferred securities of subsidiaries                      $  964       $  850       $  802
  Fixed charges deducted from income
     Interest expense                                             621          671          526
     Implicit interest in rents                                    19           18           16
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       Total fixed charges deducted from income                   640          689          542
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          Earnings available for fixed charges                 $1,604       $1,539       $1,344
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  Fixed charges per above                                      $  640       $  689       $  542
  Capitalized interest                                             12           17           18
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       Total fixed charges                                        652          706          560
       Dividends on preferred stock and securities                 68           30            -
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          Combined fixed charges and preferred stock
             dividends                                         $  720       $  736       $  560
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             Ratio of earnings to fixed charges                   2.5          2.2          2.4
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             Ratio of earnings to combined fixed charges and
               preferred
               stock dividends                                    2.2          2.1          2.4
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Consolidated operations, corporate fixed charges and
  preferred stock
  dividends only:
     Income before income tax expense and net dividends on
      preferred securities of subsidiaries                     $  964       $  850       $  802
     Corporate fixed charges deducted from
      income - corporate
       interest expense                                           139          165          120
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          Earnings available for fixed charges                 $1,103       $1,015       $  922
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     Total corporate fixed charges per above                   $  139       $  165       $  120
     Capitalized interest related to real estate operations        11           16           18
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       Total corporate fixed charges                              150          181          138
       Dividends on preferred stock and securities                 68           30            -
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          Combined corporate fixed charges and preferred
             stock dividends                                   $  218       $  211       $  138
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             Ratio of earnings to corporate fixed charges         7.3          5.6          6.7
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             Ratio of earnings to combined corporate fixed
               charges and preferred stock dividends              5.1          4.8          6.7
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American General Finance, Inc.:
  Income before income tax expense                             $   54       $  116       $  392
  Fixed charges deducted from income
     Interest expense                                             493          518          416
     Implicit interest in rents                                    12           13           11
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       Total fixed charges deducted from income                   505          531          427
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          Earnings available for fixed charges                 $  559       $  647       $  819
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             Ratio of earnings to fixed charges                   1.1          1.2          1.9
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22   AMERICAN GENERAL CORPORATION