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            UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                       WASHINGTON, DC 20549
                            FORM 10-K/A

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

             For the Fiscal Year Ended December 31, 1996
                  Commission File Number 33-94670-01

                        FARMERS GROUP, INC.

Incorporated in Nevada                      I.R.S. Employer Identification No.
4680 Wilshire Boulevard                                 95-0725935
Los Angeles, California 90010
(213) 932-3200


Securities registered pursuant to Section 12(b) of the Act:

                                                      Name of Each Exchange
Title of Each Class                                    on which registered
-------------------                                    -------------------
8.45% Cumulative Quarterly Income                     New York Stock Exchange
Preferred Securities, Series A (QUIPS) 
(liquidation preference $25 per share)*

8.45% Cumulative Quarterly Income                     New York Stock Exchange
Preferred Securities, Series B (QUIPS) 
(liquidation preference $25 per share)*

*Issued by Farmers Group Capital (Series A) and Farmers Group Capital II 
(Series B) and the payments of trust distributions and payments on 
liquidation or redemption are guaranteed under certain circumstances by 
Farmers Group, Inc., the owner of 100% of the common securities issued by 
Farmers Group Capital and Farmers Group Capital II, Delaware statutory 
business trusts.

Securities registered pursuant to Section 12(g) of the Act: None.

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 reports), and (2) has been subject 
to such filing requirements for the past 90 days.  
Yes  /X/        No  / /	    

Indicate by check mark if disclosure of delinquent filers pursuant to Item 
405 of Regulation S-K is not contained herein, and will not be contained, 
to the best of registrant's knowledge, in definitive proxy or information 
statements incorporated by reference in Part III of this form 10-K or any 
amendment to this Form 10-K. /X/

Registrant's Common Stock outstanding on December 31, 1996 was 1,000 shares.


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                                      SIGNATURE

     Pursuant to the requirements of Section 13 or 15(d) of the Securities 
Exchange Act of 1934, the Registrant has duly caused this amendment to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of 
Los Angeles, State of California on March  28, 1997.




                                     FARMERS GROUP, INC.
                       ---------------------------------------------
                                       (Registrant)

Date: March 28,1997    By:    /s/ Anthony L.R. Clark               
                       ---------------------------------------------
                       Anthony L.R. Clark, Senior Vice President and    
                       Chief Financial Officer

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                                                                     Exhibit 12

                                       FARMERS GROUP, INC.
                                        AND SUBSIDIARIES
                                    COMPUTATION OF THE RATIO
                                  OF EARNINGS TO FIXED CHARGES



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<CAPTION>

                                                       Years Ended December 31,
                                   ------------------------------------------------------------------
                                      1996          1995          1994          1993          1992 
                                   ----------    ----------     ---------    ----------     ---------
                                                           ($ in thousands)                          
<S>                               <C>            <C>            <C>          <C>            <C>
Consolidated income before
 provision for taxes               $ 862,274     $ 762,457      $ 716,199    $ 692,059      $ 616,517

Add:
  Portion of rents
   representative of interest          6,707         7,315          7,368        7,452          6,394
  Interest                            52,883        29,836         18,276       18,440         18,826
                                   ---------     ---------      ---------    ---------      ---------
Income, as adjusted                $ 921,864     $ 799,608      $ 741,843    $ 717,951      $ 641,737
                                   =========     =========      =========    =========      =========

Fixed Charges:
  Portion of rents
   representative of interest      $   6,707     $   7,315      $   7,368    $   7,452      $   6,394
  Interest                            52,883        29,836         18,276       18,440         18,826
                                   ---------     ---------      ---------    ---------      ---------
Total fixed charges                $  59,590     $  37,151      $  25,644    $  25,892      $  25,220
                                   =========     =========      =========    =========      =========

Ratio of earnings to fixed
 charges:                               15.5 x        21.5 x         28.9 x       27.7 x         25.4 x

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