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AMERICAN GENERAL CORPORATION
 
EXHIBIT 21 - SUBSIDIARIES OF AMERICAN GENERAL CORPORATION
 
   The following list includes certain, but not all, of American General
Corporation's subsidiaries at February 28, 1997. Subsidiaries of subsidiaries
are indicated by indentations.
 
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                                                                     Jurisdiction
Name                                                               of Incorporation
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<S>                                                                   <C>                
AGC Life Insurance Company..................................                 Missouri
  American General Life and Accident Insurance Company......                Tennessee
  American General Life Insurance Company...................                    Texas
     American General Annuity Service Corporation...........                    Texas
     American General Life Insurance Company of New York....                 New York
     American General Securities Incorporated...............                    Texas
     The Variable Annuity Life Insurance Company............                    Texas
       VALIC Investment Services Company....................                    Texas
       VALIC Retirement Services Company....................                    Texas
       The Variable Annuity Marketing Company...............                    Texas
  The Franklin Life Insurance Company.......................                 Illinois
     The American Franklin Life Insurance Company...........                 Illinois
     Franklin Financial Services Corporation................                 Delaware
  The Independent Life and Accident Insurance Company.......                  Florida
     Independent Fire Insurance Company.....................                  Florida
       Independent Fire Insurance Company of Florida........                  Florida
       Thomas Jefferson Insurance Company...................                  Florida
Allen Property Company .....................................                 Delaware
American General Capital, L.L.C. ...........................                 Delaware
American General Capital Services, Inc. ....................                 Delaware
American General Delaware, L.L.C. ..........................                 Delaware
American General Delaware Management Corporation............                 Delaware
American General Finance, Inc. .............................                  Indiana
  AGF Investment Corp. .....................................                  Indiana
  American General Auto Finance, Inc. ......................                 Delaware
  American General Finance Corporation......................                  Indiana
     American General Finance Group, Inc. ..................                 Delaware
       American General Financial Services, Inc.............                 Delaware
          The National Life and Accident Insurance
         Company............................................                    Texas
            CommoLoCo, Inc. ................................              Puerto Rico
     Merit Life Insurance Co. ..............................                  Indiana
     Yosemite Insurance Company.............................               California
  American General Finance, Inc. ...........................                  Alabama
  American General Financial Center.........................                     Utah
American General Mortgage and Land Development, Inc. .......                 Delaware
  American General Land Development, Inc. ..................                 Delaware
  American General Realty Advisors, Inc. ...................                 Delaware
American General Property Insurance Company.................                Tennessee
American General Realty Investment Corporation..............                    Texas
Bayou Property Company .....................................                 Delaware
Financial Life Assurance Company of Canada..................                   Canada
GPC Property Company........................................                 Delaware
Knickerbocker Corporation...................................                    Texas

                                                                 1996 FORM 10-K    23
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