<PAGE>   1

                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

                                   FORM 10-Q

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


               FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997

                                       OR

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

            FOR THE TRANSITION PERIOD FROM ___________ TO __________

                     AMERICAN BANKERS INSURANCE GROUP, INC.
                            11222 QUAIL ROOST DRIVE
                              MIAMI, FLORIDA 33157
                                 (305) 253-2244

Commission File Number:                                                   0-9633

State of Incorporation:                                                  Florida

I.R.S. Employer Identification Number:                                59-1985922

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 report), and (2) has been subject to such
filing requirements for the past 90 days.   YES  X   NO
                                                ---

Common Stock - Par Value $1.00
41,535,807 Shares Outstanding on November 3, 1997


                                       1
<PAGE>   2
                                                                      Form 10-Q

Company or group of companies for which report is filed:

                     AMERICAN BANKERS INSURANCE GROUP, INC.

This quarterly report, filed pursuant to Rule 13A-13 of the General Rules and
Regulations under the Securities Exchange Act of 1934, consists of the following
information as specified in Form 10-Q.

PART I - FINANCIAL INFORMATION

         ITEM 1 - FINANCIAL STATEMENTS

         1.       Consolidated Balance Sheets at September 30, 1997 and December
                  31, 1996.

         2.       Consolidated Statements of Income for the three months ended
                  September 30, 1997 and 1996.

         3.       Consolidated Statements of Income for the nine months ended
                  September 30, 1997 and 1996.

         4.       Consolidated Statements of Cash Flows for the nine months
                  ended September 30, 1997 and 1996.

         5.       Notes to Consolidated Financial Statements.

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

PART II - OTHER INFORMATION

         ITEM 1 - Legal Proceedings

         ITEM 4 - Submission of Matters to a Vote of Security Holders

         ITEM 5 - Other Information

         ITEM 6 - Exhibits and Reports

         a.   EXHIBITS.

              The following exhibits are included herein:

              (10) 1997 Equity Incentive Plan, Amended
              (11) Statement re: Computation of Earnings Per Share
              (27) Financial Data Schedule

         b.   REPORT ON FORM 8-K.
              None





                                       2
<PAGE>   3

                                                                      Form 10-Q

                                   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.

                                        AMERICAN BANKERS
                                        INSURANCE GROUP, INC.

November 13, 1997
     Date

                                                  /s/ Robert Hill
                                        ---------------------------------------
                                                      Robert Hill
                                              Principal Accounting Officer





                                       3
<PAGE>   4











                                     PART I

                              FINANCIAL INFORMATION









                                       4
<PAGE>   5
                 AMERICAN BANKERS INSURANCE GROUP, INC.
                       CONSOLIDATED BALANCE SHEETS
                    SEPTEMBER 30, 1997 AND DECEMBER 31, 1996
                                 (in thousands)
<TABLE>
<CAPTION>
                                                                                         1997                   1996
                                                                                    --------------         -------------
ASSETS                                                                                (unaudited)
<S>                                                                                 <C>                  <C>    
Investments 
             Held-to-Maturity securities, at amortized cost                         $      847,248         $    851,146
             Available-for-Sale securities, at approximate market value                    907,549              805,124
             Trading securities, at fair value                                                   -                9,038
             Equity securities, at approximate market value                                127,905              112,895
             Mortgage loans on real estate                                                   9,698               10,236
             Policy loans                                                                    9,007                8,290
             Short-term and other investments                                              225,740              171,674
                                                                                    --------------         ------------
             Total investments                                                           2,127,147            1,968,403
                                                                                    --------------         ------------

Cash                                                                                        10,124               30,434
Accounts receivable, net of allowance for doubtful
  accounts of $4,480 in 1997 and $4,526 in 1996                                            137,026              128,963
Reinsurance receivable                                                                     255,067              202,626
Accrued investment income                                                                   26,435               24,296
Deferred policy acquisition costs                                                          442,154              387,993
Prepaid reinsurance premiums                                                               538,680              507,077
Other assets                                                                               142,328              219,711
                                                                                    --------------         ------------
             Total assets                                                           $    3,678,961         $  3,469,503
                                                                                    --------------         ------------

LIABILITIES AND STOCKHOLDERS' EQUITY

Policy liabilities                                                                  $      302,971         $    291,756
Unearned premiums                                                                        1,383,432            1,291,142
Claim liabilities                                                                          538,602              487,596
                                                                                    --------------         ------------
                                                                                         2,225,005            2,070,494

Other policyholders' funds                                                                   8,096                6,795
Notes payable                                                                              241,479              222,490
Deferred income taxes                                                                       50,025               40,795
Accrued commissions and other expenses                                                     146,003              156,896
Other liabilities                                                                          212,068              261,826
                                                                                    --------------         ------------
             Total liabilities                                                           2,882,676            2,759,296
                                                                                    --------------         ------------

Commitments and Contingencies (Note 4)

STOCKHOLDERS' EQUITY

Preferred Stock. $3.125 Series B Cumulative Convertible Preferred Stock
  Authorized 3,500 shares. Issued and Outstanding: 2,300 shares in 1997 and 1996    $      115,000         $    115,000
Common stock of $1 par value.  Authorized 100,000 shares.
  Issued and outstanding:  1997-41,656 shares; 1996-20,530 shares                           41,656               20,530
Additional paid-in capital                                                                 208,838              217,939
Net unrealized investment and foreign exchange gains                                        15,384                7,437
Retained earnings                                                                          425,776              359,359
Less:
  Treasury stock, at cost - 93 shares in 1997 and 93 shares in 1996                        (1,426)              (1,426)
  Unamortized restricted stock                                                             (6,287)              (4,382)
  Collateralization of loan to Leveraged Employee
    Stock Ownership Plan                                                                   (2,656)              (4,250)
                                                                                    --------------         ------------
             Total stockholders' equity                                                    796,285              710,207
                                                                                    --------------         ------------
             Total liabilities and stockholders' equity                             $    3,678,961         $  3,469,503
                                                                                    ==============         ============

</TABLE>


          See accompanying notes to consolidated financial statements.



                                        5
<PAGE>   6
                     AMERICAN BANKERS INSURANCE GROUP, INC.
                       CONSOLIDATED STATEMENTS OF INCOME
               FOR THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
                  (in thousands except per common share data)
                               (unaudited)

<TABLE>
<CAPTION>

                                                                                 1997                        1996
                                                                           ------------------         --------------------        
<S>                                                                        <C>                        <C>                
Gross collected premiums                                                   $          716,429         $           634,165
                                                                           ==================         ===================
Premiums and other revenues:
             Net premiums earned                                           $          364,884         $           363,786
             Net investment income                                                     33,872                      31,038
             Realized investment gains                                                  4,065                         263
             Other income                                                               5,341                       4,532
                                                                           ------------------         -------------------
               Total premiums and other revenues                                      408,162                     399,619
                                                                           ------------------         -------------------

Benefits and expenses:
             Net benefits, claims, losses and settlement expenses                     136,354                     133,218
             Commissions                                                              153,472                     160,838
             Operating expense                                                         72,629                      69,397
             Interest expense                                                           4,072                       4,469
                                                                           ------------------         -------------------
               Total benefits and expenses                                            366,527                     367,922
                                                                           ------------------         -------------------

Income before taxes                                                                    41,635                      31,697
                                                                           ------------------         -------------------
Income tax expense (benefit):
             Current                                                                    6,912                      (2,100)
             Deferred                                                                   4,884                      11,160
                                                                           ------------------         -------------------
                                                                                       11,796                       9,060
                                                                           ------------------         -------------------

Net Income                                                                 $           29,839         $            22,637
                                                                           ==================         ===================



PER COMMON SHARE AND COMMON EQUIVALENT SHARE DATA
  Primary:
             Net Income                                                    $             0.66         $              0.51
                                                                           ==================         ===================

             Weighted average number of shares outstanding                             42,250                      41,774
                                                                           ==================         ===================

  Fully diluted:
             Net Income                                                    $             0.63         $              0.50
                                                                           ==================         ===================

             Weighted average number of shares outstanding                             47,152                      45,294
                                                                           ==================         ===================

Dividends per common share                                                 $             0.11         $              0.10
                                                                           ==================         ===================

</TABLE>




          See accompanying notes to consolidated financial statements.




                                        6
<PAGE>   7


                     AMERICAN BANKERS INSURANCE GROUP, INC.
                       CONSOLIDATED STATEMENTS OF INCOME
               FOR NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
                  (in thousands except per common share data)
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                                         1997                 1996
                                                                                    ------------         ------------

<S>                                                                                 <C>                  <C>         
Gross collected premiums                                                            $  2,020,160         $  1,840,196
                                                                                    ============         ============
Premiums and other revenues:
             Net premiums earned                                                    $  1,093,670         $  1,052,417
             Net investment income                                                        99,320               87,242
             Realized investment gains                                                     9,099                6,284
             Other income                                                                 16,994               15,361
                                                                                    ------------         ------------
               Total premiums and other revenues                                       1,219,083            1,161,304
                                                                                    ------------         ------------

Benefits and expenses:
             Net benefits, claims, losses and settlement expenses                        409,282              412,735
             Commissions                                                                 453,971              433,471
             Operating expense                                                           224,619              204,264
             Interest expense                                                             12,091               12,995
                                                                                    ------------         ------------
               Total benefits and expenses                                             1,099,963            1,063,465
                                                                                    ------------         ------------

Income before taxes                                                                      119,120               97,839
                                                                                    ------------         ------------
Income tax expense:
             Current                                                                      30,490               17,582
             Deferred                                                                      3,754               11,924
                                                                                    ------------         ------------
                                                                                          34,244               29,506
                                                                                    ------------         ------------

Net Income                                                                          $     84,876         $     68,333
                                                                                    ============         ============



PER COMMON SHARE AND COMMON EQUIVALENT SHARE DATA
  Primary:
             Net Income                                                             $       1.89         $       1.62
                                                                                    ============         ============

             Weighted average number of shares outstanding                                41,968               41,542
                                                                                    ============         ============

  Fully diluted:
             Net Income                                                             $       1.81         $       1.59
                                                                                    ============         ============

             Weighted average number of shares outstanding                                46,886               43,082
                                                                                    ============         ============

Dividends per common share                                                          $       0.32         $       0.30
                                                                                    ============         ============

</TABLE>




          See accompanying notes to consolidated financial statements.





                                        7

<PAGE>   8
                     AMERICAN BANKERS INSURANCE GROUP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
             FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
                                 (in thousands)
                                   (unaudited)

<TABLE>
<CAPTION>

                                                                                             1997                  1996
                                                                                        -------------         -------------
<S>                                                                                     <C>                   <C>          
OPERATING ACTIVITIES:
Net income                                                                              $      84,876         $      68,333
Adjustments to reconcile net income to net cash provided
  by operating activities:
             Change in policy liabilities, unearned premiums, claim
               liabilities, reinsurance receivable and prepaid reinsurance premiums            70,467               151,098
             Change in other assets and other liabilities                                      31,646               (18,779)
             Increase in accounts receivable                                                   (8,063)               (5,395)
             Increase in accrued investment income                                             (2,139)               (3,204)
             (Decrease) increase in accrued commission and expenses                           (10,893)                9,324
             Increase in policyholders' funds                                                   1,301                   384
             Increase in policy loans                                                            (717)                 (393)
             Amortization of deferred policy acquisition costs                                400,417               395,370
             Amortization of cost of insurance acquired                                         1,137                 1,430
             Policy acquisition costs deferred                                               (454,580)             (451,229)
             Provision for amortization and depreciation                                       10,391                 4,390
             Provision for deferred income taxes                                                3,754                11,924
             Net gain on sale of investments                                                   (9,099)               (6,284)
             Compensation and tax effect on stock option shares                                 1,632                 2,366
             Net cash flow from purchases and sales of trading securities                       8,880                (8,850)
                                                                                        -------------         -------------
               Net cash provided by operating activities                                      129,010               150,485
                                                                                        -------------         -------------

INVESTING ACTIVITIES:
Purchase of investments
             Held-to-maturity securities                                                      (86,623)             (291,083)
             Available-for-sale securities                                                 (1,143,756)             (158,103)
Proceeds from sale of investments
             Available-for-sale securities                                                  1,006,881                86,943
             Mortgage loans                                                                       540                 1,364
             Real Estate                                                                           25                 1,466
Proceeds from maturities of investments
             Held-to-maturity securities                                                       87,218                73,366
             Available-for-sale securities                                                     49,105                44,142
Increase in short-term investments                                                            (55,377)              (14,733)
Transactions related to capital assets
             Capital expenditures                                                             (13,287)              (10,371)
             Sales of capital assets                                                               58                   460
                                                                                        -------------         -------------
             Net cash used in investing activities                                           (155,216)             (266,549)
                                                                                        -------------         -------------
FINANCING ACTIVITIES:
Proceeds from issuance of debt                                                                 25,183               138,147
Repayment of debt                                                                              (4,600)             (127,466)
Dividends paid to shareholders                                                                (18,353)              (12,013)
Proceeds from issuance of stock                                                                 3,582               113,250
Purchase of treasury stock                                                                         --                  (175)
                                                                                        -------------         -------------
             Net cash provided by financing activities                                          5,812               111,743
                                                                                        -------------         -------------

Net decrease in cash                                                                          (20,394)               (4,321)
Cash at beginning of period                                                                    30,434                23,257
Rate change effect on cash flow                                                                    84                    12
                                                                                        -------------         -------------
Cash at end of period                                                                   $      10,124         $      18,948
                                                                                        =============         =============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

  Cash paid during the period for:
    Interest                                                                            $       9,596         $      11,933
    Income taxes                                                                        $      35,350         $      29,777

</TABLE>




          See accompanying notes to consolidated financial statements.




                                        8

<PAGE>   9

                     AMERICAN BANKERS INSURANCE GROUP, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1997
                                  (UNAUDITED)

1.   Financial Statements

     The accompanying unaudited consolidated financial statements have been
     prepared in accordance with the instructions to Form 10-Q and do not
     include all of the information and footnotes required by generally accepted
     accounting principles for complete financial statements. In the opinion of
     management, all adjustments (consisting of normal recurring accruals)
     considered necessary for a fair presentation have been included. Operating
     results for the period ended September 30, 1997 are not necessarily
     indicative of the results that may be expected for the year ending December
     31, 1997. These statements should be read in conjunction with the financial
     statements and notes thereto included in the Company's Annual Report Form
     10-K for the year ended December 31, 1996. Certain items have been
     reclassed to conform with 1997 presentation.

2.   Translation of Foreign Currencies

     Unrealized foreign exchange losses, totaling $13,989,000 and $9,688,000 as
     of September 30, 1997 and December 31, 1996 respectively, are included in
     Stockholders' Equity under the caption "Net unrealized investment and
     foreign exchange gains."

3.   Reinsurance

     The Company accounts for reinsurance contracts under Financial Accounting
     Standards Board's Statement 113. The Company recognizes the income on
     reinsurance contracts principally on a pro-rata basis over the life of the
     policies covered under the reinsurance agreements. Reinsurance Recoverables
     on Unpaid Losses are included as an asset in the Balance Sheet under the
     caption "Reinsurance Receivable." Ceded Unearned Premiums are included as
     an asset in the Balance Sheet under the caption "Prepaid Reinsurance
     Premiums."

     The effect of reinsurance on premiums earned is as follows for the nine
     months and three months ended September 30, 1997 and 1996:

<TABLE>
<CAPTION>

                                                                     (in thousands)
                                                                    Nine Months Ended

                                               September 30, 1997              September 30, 1996
                                               ------------------              ------------------
<S>                                           <C>                                  <C>                 
       Direct premiums                         $       1,841,110                $      1,658,096

       Reinsurance assumed                               125,564                          93,252

       Reinsurance ceded                                (873,004)                       (698,931)
                                               -----------------                ----------------
       Net premiums earned                     $       1,093,670                $      1,052,417
                                               =================                ================

</TABLE>

<TABLE>
<CAPTION>

                                                                     (in thousands)
                                                                   Three Months Ended

                                              September 30, 1997               September 30, 1996
                                              ------------------               ------------------ 
<S>                                           <C>                                  <C>                 
       Direct premiums                         $         619,697                $        566,396

       Reinsurance assumed                                34,767                          34,371

       Reinsurance ceded                                (289,580)                       (236,981)
                                               -----------------               -----------------

       Net premiums earned                     $         364,884                $        363,786
                                               =================               =================

</TABLE>




                                       9
<PAGE>   10


4.   Commitments and Contingencies

     For a comprehensive description of the Company's litigation, see Item III
     of the Company's 1996 Form 10-K.

     Alabama and Related Litigation:

     Certain of ABIG's subsidiaries, including ABIC, ABLAC and Voyager, are
     presently parties to a number of individual consumer and class action
     lawsuits pending in Alabama involving premium rate, marketing, disclosure,
     and policy coverage issues. While a number of similar suits have been filed
     in other jurisdictions, the insurance and finance industries have been
     targeted in Alabama by plaintiffs' lawyers who enjoy a favorable judicial
     climate. The Company typically has been named as a co-defendant with one or
     several retailer or finance companies who have sold the Company's product
     to a consumer. Other insurers are also joined as co-defendants in some of
     the suits.

     Although the Alabama lawsuits and similar suits pending in other
     jurisdictions generally involve relatively small amounts of actual or
     compensatory damages, they typically assert claims requesting substantial
     punitive awards or purport to represent a large class of policyholders. The
     Company denies any wrongdoing in any of these suits and believes that it
     has not engaged in any conduct that would warrant an award of punitive
     damages or that the class allegations have merit. The Company has been
     advised by legal counsel that it has meritorious defenses to all claims
     being asserted against it.

     While no one individual lawsuit is necessarily significant in terms of
     financial risk to the Company, the judicial climate in Alabama is such that
     the outcome of these cases is extremely unpredictable. Moreover, class
     action lawsuits to which the Company is a party do not lend themselves to
     potential damage calculation. Without admitting any wrongdoing, the Company
     has settled a number of these suits, but there are still a significant
     number of cases pending, and it is expected that more suits alleging
     essentially the same causes of action are likely to continue to be filed
     during 1997. The Company intends to continue to defend itself vigorously
     against all such suits and believes, based on information currently
     available, that any liabilities that could result are not expected to have
     a material adverse effect on the Company's financial position.

      The Company is involved with a number of cases in the ordinary course of
      business relating to insurance matters, or more infrequently, certain
      corporate matters. Generally, the Company's liability is limited to
      specific amounts relating to insurance or policy coverage for which
      provision has been made in the financial statements. Other cases involve
      general corporate matters which generally do not represent significant
      contingencies for the Company.





                                       10
<PAGE>   11


5.   Segment Information

     Gross collected premiums, net premiums earned and income (loss) before
     federal income taxes are summarized as follows

<TABLE>
<CAPTION>

                                                                           (in thousands)
                                                                          Nine Months Ended
                                                                            SEPTEMBER 30,
                                                                          ----------------- 
                                                                      1997                  1996
                                                                 -------------         -------------
<S>                                                              <C>                      <C>             
GROSS COLLECTED PREMIUMS:

Life                                                              $   626,250          $     562,485

Property and Casualty                                               1,393,910              1,277,711
                                                                 ------------          -------------
     Total                                                        $ 2,020,160          $   1,840,196
                                                                 ============          =============

NET PREMIUMS EARNED:

Life                                                              $   323,439          $     296,373

Property and Casualty                                                 770,231                756,044
                                                                 ------------          -------------
     Total                                                        $ 1,093,670          $   1,052,417
                                                                 ============          =============

INCOME (LOSS) BEFORE INCOME TAXES:




Life                                                              $    48,519           $     51,741

Property and Casualty                                                  83,670                 65,609

Other                                                                    (978)                (6,516)
                                                                 ------------           ------------
                                                                      131,211                110,834

Interest Expense                                                       12,091                 12,995
                                                                 ------------           ------------
      Total Income before Income Taxes                            $   119,120           $     97,839
                                                                 ============           ============

</TABLE>

6.   Accounting for Investments

     The Company accounts for its investments according to the Financial
     Accounting Standards Board's Statement 115 - Accounting for Certain
     Investments in Debt and Equity Securities.

     This Statement addresses the accounting and reporting for investments in
     equity securities that have readily determinable fair values and for all
     investments in debt securities. Those investments are to be classified in
     three categories and accounted for as follows:

     HELD-TO-MATURITY - Securities for which the enterprise has the positive
     intent and ability to hold to maturity. These securities are carried at
     amortized cost.

     TRADING SECURITIES - Securities that are bought and held principally for
     the purpose of selling them in the near term. These securities are carried
     at market value with the unrealized holding gain or loss included in
     earnings.

     AVAILABLE-FOR-SALE - Securities not classified as trading or
     held-to-maturity. These securities are carried at market value with the
     unrealized holding gain or loss reported as a separate component of
     equity, net of the income tax effect.



                                       11
<PAGE>   12

The detail of Cost and Statement Value for the Fixed Maturities and Equity
Securities held at September 30, 1997 is as follows:

<TABLE>
<CAPTION>

                                                                                  (in thousands)

                                                                        Amortized            Statement
                                                                          Cost                 Value
                                                                      -------------      -------------

<S>                                                                   <C>                  <C>             
FIXED MATURITIES

Held-to-Maturity Securities                                          $      847,248     $     847,248

Available-for-Sale Securities                                               886,315           907,549

Trading Securities                                                                -                 -
                                                                     --------------     -------------  

  Total Fixed Maturities                                             $    1,733,563     $   1,754,797
                                                                     ==============     =============  



Net unrealized gain                                                                     $      21,234
                                                                                        =============  

</TABLE>

<TABLE>
<CAPTION>
                                                                                              Market
                                                                             Cost              Value
                                                                      -------------     --------------

<S>                                                                   <C>                  <C>             
EQUITY SECURITIES

Held-to-Maturity Securities                                          $           -     $            -

Available-for-Sale Securities                                              104,525            127,905

Trading Securities                                                               -                  -
                                                                     -------------     --------------  
  Total Equity Securities                                            $     104,525     $      127,905
                                                                     =============     ==============  



Net unrealized gain                                                                    $       23,380
                                                                                       ==============

</TABLE>


The net unrealized gain for "Available-for-Sale Securities" increased by
$12,246,000 (net of $6,226,000 in deferred income taxes) from December 31, 1996
to September 30, 1997.

An analysis of the realized gains and losses of the Company for the nine months
ended September 30, 1997, is as follows:

<TABLE>
<CAPTION>

                                                                                              (in thousands)
                                                                                              
<S>                                                                                           <C>
Gross realized gains from sales of Available-for-Sale Securities                              $    20,774

Gross realized losses from sales of Available-for-Sale Securities                                 (11,183)

Gross realized gains from sales of Trading Securities                                                 241

Gross realized losses from sales of Trading Securities                                               (622)
                                                                                              ----------- 
Net realized gain from investment activity                                                          9,210

Net realized loss from other investment activity                                                     (111)
                                                                                              -----------
Total realized gain                                                                           $     9,099
                                                                                              ===========

</TABLE>


The Company uses the specific identification method to determine cost for
computing the realized gains and losses.





                                       12
<PAGE>   13


                     AMERICAN BANKERS INSURANCE GROUP, INC.
          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                           AND RESULTS OF OPERATIONS

Results of Operations
---------------------

Gross collected premiums increased $82.2 million or 13% to $716.4 million for
the three months ended September 30, 1997, from $634.2 million for the same
period of 1996. Approximately 76% or $62.8 million of the increase came from the
Company's largest product lines - Credit Unemployment, Credit A&H, Credit Life
and Credit Property.

During the three months ended September 30, 1997, total premiums and other
revenues were $408.2 million, an increase of $8.6 million over total premiums
and other revenues of $399.6 million for the same period in 1996. The increase
includes a $3.8 million increase in realized investment gains. The overall
growth in invested assets generated an additional $2.8 million of investment
income for the third quarter of 1997 as compared to the same period of 1996.

The benefits and claims ratio was constant at 37% for the three months ended
September 30, 1997 and for the same period of 1996. The commissions ratio
improved from 44% for the three months ended September 30, 1996 to 42% for the
same period of 1997. The benefits, claims, losses and settlement expenses
include approximately $8.0 million of pre-tax hurricane losses for the three
months ended September 30, 1996.

Financial Condition
-------------------

Stockholders' Equity increased $86.1 million from $710.2 million at December 31,
1996, to $796.3 million at September 30, 1997. The contribution of net income of
$84.9 million was the primary cause for the increase.

Liquidity and Capital Resources
-------------------------------

On September 30, 1997, $2.1 billion of securities, short-term investments and
cash comprised 58% of the Company's total assets. The securities were
principally readily marketable and did not include any significant concentration
in private placements.

The Company does not hold significant investments in equity securities;
consequently, market changes in the equity securities markets do not
significantly affect the investment portfolio.

In August 1997, the Company declared a two-for-one stock split effected in the
form of a stock dividend on the Company's Common Stock. The result of the stock
split was that all ABI common shareholders of record as of August 29, 1997,
received one additional share for each share they held. Earnings per share
calculations were adjusted to reflect the impact of the stock split.

The Company expects to continue its policy of paying regular cash dividends;
however, future dividends are dependent on the Company's future earnings,
capital requirements and financial condition. In addition, the payment of
dividends is subject to the restrictions described in the Company's Annual
Report on Form 10-K for the year ended December 31, 1996.





                                       13
<PAGE>   14


Private Securities Litigation Reform Act of 1995 - Safe Harbor Cautionary
Statement
-------------------------------------------------------------------------

Except for the historical information contained herein, certain of the matters
discussed in this quarterly report are "forward-looking statements" as defined
in the Private Securities Litigation Reform Act of 1995, which involve certain
risks and uncertainties, including but not limited to, changes in general
economic conditions, interest rates, consumer confidence, competition,
environmental factors, and governmental regulations affecting the Company's
operations. See the Company's Annual Report Form on 10-K for the year ended
December 31, 1996, for a further discussion of these and other risks and
uncertainties applicable to the Company's business.






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<PAGE>   15











                                    PART II

                                OTHER INFORMATION






                                       15
<PAGE>   16


Item 1 - Legal Proceedings
--------------------------

Commitments and Contingencies information which appears on page 10 elsewhere in
this report is incorporated by reference in this item. Additional information
regarding litigation can be found in the Company's 1996 Annual Report on Form
10-K.

Item 4 - Submission of Matters to a Vote of Security Holders
------------------------------------------------------------

None

Item 5 - Other Information
--------------------------

On August 15, 1997, the Board of Directors of American Bankers Insurance Group,
Inc. (the "Company") declared a two-for-one stock split (the "Stock Split") of
the shares of the Company's common stock, par value $1.00 per share (the "Common
Stock"), to be effected in the form of a stock dividend payable on September 12,
1997 to all holders of record of the Common Stock as of August 29, 1997. As a
result of the Stock Split, the Company issued 20,781,530 shares of Common Stock
on September 12, 1997.

Also as the result of the Stock Split, the initial conversion price of $50.065
per share of Common Stock at which the Company's $3.125 Series B Cumulative
Convertible Preferred Stock (the "Convertible Preferred Stock") was initially
convertible into shares of Common Stock was adjusted, effective immediately
after the opening of business on September 2, 1997, to a conversion price of
$25.0325 per share of Common Stock. As a result of this change in conversion
price, the conversion rate at which shares of Convertible Preferred Stock are
convertible into shares of Common Stock was adjusted, effective immediately
after the opening of business on September 2, 1997, from a conversion rate of
0.9987 shares of Common Stock for each share of Convertible Preferred Stock to a
conversion rate of 1.9974 shares of Common Stock for each share of Convertible
Preferred Stock.

As a further result of the Stock Split, the number of Rights (as defined in the
Company's Rights Agreement dated as of February 24, 1988, as amended and
restated as of November 14, 1990 (the "Rights Agreement")) associated with each
share of Common Stock then outstanding, or issued or delivered after the Stock
Split but prior to the Distribution Date (as defined in the Rights Agreement),
was adjusted so that one-half of one Right is associated with each such share of
Common Stock.

Item 6(a) - Exhibits
--------------------

EXHIBIT 10 - 1997 Equity Incentive Plan, Amended

Exhibit 11 - Statement Re: Computation of Earnings Per Share

Exhibit 27 - Financial Data Schedule (for SEC use only)

Item 6(b) - Reports on Form 8-K
-------------------------------

None





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