<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C. 20549
                         ---------------------------

   
                                   FORM 10-K/A
    

   
                              Amendment No. 1 to
    

                 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 NO. 1-12922

                           AMERICAN EAGLE GROUP, INC.
             (Exact Name of registrant as Specified in its Charter)

           DELAWARE                                              75-2100622
  (State or Other Jurisdiction                                (I.R.S. Employer
of Incorporation or Organization)                            Identification No.)

     12801 NORTH CENTRAL EXPRESSWAY
              SUITE 800
             DALLAS, TEXAS                                      75243
(Address of principal executive offices)                      (Zip Code)

      REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:  (972) 448-1400

          SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

                                                         NAME OF EACH EXCHANGE
   TITLE OF EACH CLASS                                    ON WHICH REGISTERED
   -------------------                                    -------------------
COMMON STOCK, $0.01 PAR VALUE                           NEW YORK STOCK EXCHANGE


       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 ]

    The aggregate market value of the voting stock held by non-affiliates of
the Registrant as of March 21, 1997 was $12,501,152 based upon a closing price
of $4.00 per share.

    As of March 21, 1997, there were 7,047,098 shares of the Registrant's
Common Stock, $.01 par value per share, outstanding.


                      DOCUMENTS INCORPORATED BY REFERENCE


    Certain exhibits to Registrant's Form S-1 filed with the S.E.C. and
effective May 11, 1994 (File No. 33-75490) are incorporated by reference into
Part IV.
<PAGE>   2
   
        The purpose of this Form 10-K/A is to refile pages 23, 36 and 43 of the
Form 10-K for the fiscal year ended December 31, 1996 of American Eagle Group,
Inc. to correct typographical errors contained in the EDGAR filing of such 
Form 10-K.
    

<PAGE>   3



                  AMERICAN EAGLE GROUP, INC. AND SUBSIDIARIES


                       CONSOLIDATED STATEMENTS OF INCOME

             FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
                     (In Thousands Except Per Share Data)


   
<TABLE>
<CAPTION>
                                                                      1996          1995          1994
                                                                 -----------    -----------    -----------
<S>                                                              <C>            <C>            <C>
Revenues:

   Earned Premiums, Net                                          $   107,217    $   102,447    $    82,725

   Agency Operations, Net                                                424            396            919

   Investment Income, Net                                              4,470          5,497          4,106

   Realized Investment Gains (Losses), Net                               (74)           496            (33)
                                                                 -----------    -----------    -----------

            Total Revenues                                           112,037        108,836         87,717
                                                                 -----------    -----------    -----------
Expenses:

   Losses and Loss Adjustment Expenses, Net of Reinsurance           107,473         90,933         52,729

   Policy Acquisition and Other Underwriting Expenses                 47,848         37,292         23,694

   Interest Expense                                                    1,132            987            800
                                                                 -----------    -----------    -----------

            Total Expenses                                           156,453        129,212         77,223
                                                                 -----------    -----------    -----------
Income (Loss) Before Income Tax Provision (Benefit)                  (44,416)       (20,376)        10,494


Income Tax Provision (Benefit)                                          --           (7,300)         3,351

Net Income (Loss)                                                $   (44,416)   $   (13,076)   $     7,143
                                                                 ===========    ===========    ===========

Net Income (Loss) Available for Common Stockholders              $   (44,514)   $   (13,174)   $     6,588
                                                                 ===========    ===========    ===========

Net Income (Loss) Per Common Share (Primary and Fully Diluted)   $     (6.32)   $     (1.87)   $      1.16
                                                                 ===========    ===========    ===========
Weighted Average Number of Common Shares Outstanding
    (Primary and Fully Diluted)                                    7,048,898      7,052,998      5,684,386
                                                                 ===========    ===========    ===========
</TABLE>
    




             The accompanying notes are an integral part of these
                      consolidated financial statements.





                                       36
<PAGE>   4





ITEM 6:  SELECTED FINANCIAL DATA
(Dollars in Thousands Except Per Share Amounts)

   
<TABLE>
<CAPTION>
FOR THE YEAR                      1990          1991         1992         1993         1994        1995           1996      
                                  ----          ----         ----         ----         ----        ----           ----      
<S>                            <C>          <C>          <C>           <C>         <C>           <C>           <C>  
Gross premiums produced (1)    $ 94,565     $ 103,752    $ 114,750     $ 139,847   $ 167,207    $ 181,561     $   151,182      
Net premiums written           $  7,350     $  30,895    $  51,250     $  71,869   $  95,997    $ 120,957     $    96,229      
Earned premiums                $  6,874     $  16,592    $  43,725     $  66,091   $  82,725    $ 102,447     $   107,217      
Net investment income          $  4,784     $   3,299    $   2,880     $   2,918   $   4,106    $   5,497     $     4,470      
Realized investment gains                                                                                                      
  (losses)                     $    202     $   1,719    $   1,622     $   1,414   $     (33)   $     496     $       (74)     
Interest expense               $  1,465     $     682    $     462     $     708   $     800    $     987     $     1,132      
Operating income (loss)        $  3,653     $   1,530    $   3,145     $   4,799   $   7,164    $ (13,394)    $   (44,342)      
Income (loss) before                                                                                                           
  extraordinary items and                                                                                                      
  cumulative effect of                                                                                                         
  change in accounting       
  principle                    $  3,784     $   2,694    $   4,199     $   5,718   $   7,143    $ (13,076)    $   (44,416)      
Net income (loss)              $  3,784     $   3,624    $   6,079     $   5,718   $   7,143    $ (13,076)    $   (44,416)      
Net income (loss) available                                                                                                    
  for common stockholders(2)   $  3,784     $   3,467    $   4,781     $   4,420   $   6,588    $ (13,174)    $   (44,514)      
Weighted average shares
  outstanding                 3,091,493     3,469,448    3,469,448     3,469,448   5,684,386    7,052,998       7,048,898      
                                                                                                                               
Loss and LAE Ratio                 83.6%         55.7%        57.7%         62.3%       63.7%        88.8%          100.2%     
Expense Ratio                      65.7%         49.4%        38.2%         29.8%       28.6%        36.4%           44.6%     
                               --------     ---------    ---------     ---------   ---------    ---------     -----------
Combined Ratio                    149.3%        105.1%        95.9%         92.1%       92.3%       125.2%          144.8%     
                               ========     =========    =========     =========   =========    =========     ===========
                                                                                                                               
PER COMMON SHARE                                                                                                               
Operating income               $   1.18     $    0.44    $    0.91     $    1.38   $    1.26    $   (1.90)    $     (6.29)     
Operating income (loss) for                                                                                                   
    common stockholders (2)    $   1.18     $    0.40    $    0.53     $    1.01   $    1.16    $   (1.91)    $     (6.30)     
Net income (loss)              $   1.22     $    1.04    $    1.75     $    1.65   $    1.26    $   (1.85)    $     (6.30)     
Net income (loss) for                                                                                                          
  common stockholders (2)      $   1.22     $    1.00    $    1.38     $    1.27   $    1.16    $   (1.87)    $     (6.32)     
Stockholders' equity           $   4.34     $    5.63    $    7.00     $    8.27   $    9.12    $    7.58     $      1.06      
Dividends declared             $   0.00     $    0.00    $    0.00     $    0.00   $    0.09    $    0.13     $      0.08      
                                                                                                                              
AT YEAR END                                                                                                                   
Total cash and investments     $ 65,741     $  67,436    $  48,064     $  87,262   $  98,181    $ 106,792     $    89,087      
Total assets                   $183,917     $ 211,646    $ 219,028     $ 299,622   $ 337,103    $ 318,269     $   261,959      
Reserve for loss and loss                                                                                                     
  adjustment expenses          $ 96,954     $ 102,979    $  95,074     $ 122,342   $ 142,768    $ 136,528     $   138,133      
Note payable                   $  9,945     $   3,295    $  10,000     $  10,000   $   9,250    $  11,250               -      
Total liabilities              $167,226     $ 180,470    $ 183,114     $ 259,285   $ 271,139    $ 263,174     $   219,670      
Redeemable preferred stock     $  1,629     $  11,629    $  11,629     $  11,629   $   1,629    $   1,629     $    34,793      
Stockholders' equity           $ 15,062     $  19,547    $  24,285     $  28,708   $  64,335    $  53,466     $     7,496      
Total debt to equity               76.8%         76.3%        89.1%         75.3%       16.9%        24.1%          464.2%    
Return on average equity           34.1%         20.0%        21.8%         16.7%       14.2%       (22.2)%        (145.7)%    
                                                                                                                              
SELECTED STATUTORY DATA                                                                                                       
Policyholders' surplus         $ 28,376     $  31,471    $  40,204     $  44,752   $  65,107    $  50,465     $    20,351      
Net premiums written to                                                                                                       
  surplus                           0.3x          0.9x         1.1x          1.6x        1.3x         2.3x            5.2x     
Loss and LAE Ratio                 71.4%         53.7%        57.9%         63.1%       64.2%        89.8%          100.2%   
Expense Ratio                      55.4%         38.2%        41.2%         30.0%       33.7%        34.9%           43.5%     
                               --------     ---------    ---------     ---------   ---------    ---------     -----------      
Combined Ratio                    126.8%         91.9%        99.1%         93.2%       97.9%       124.7%          143.7%   
                               ========     =========    =========     =========   =========    =========     ===========      
                                                                                                                             
                                                                                                                             
</TABLE>                                                                    
                                                                            

(1)   For a discussion of gross premiums produced, see "Management's Discussion
      of Financial Condition and Results of Operations."

(2)   After deduction of preferred dividends.



                                      23

<PAGE>   5
3.    INSURANCE OPERATIONS:

Reinsurance Transactions

In the ordinary course of business, AEIC and AMIC purchase reinsurance for the
purpose of limiting their retained loss exposure and maintaining required
statutory surplus amounts.

Reinsurance does not relieve the Company from its liabilities under the
original policies to the extent that the reinsuring companies fail to meet
their obligations under reinsurance contracts. Management evaluates the
financial condition of its reinsurers and monitors concentrations of credit
risk arising from similar geographic regions, activities, or economic
characteristics of the reinsurers to minimize its exposure to significant
losses from reinsurer insolvencies. Management believes that the allowances at
December 31, 1996, are adequate to cover known and anticipated losses. At
December 31, 1996 and 1995, the Company's consolidated balance sheets reflected
the following reinsurance recoverable balances and the related allowances for
doubtful accounts: 

   
<TABLE> 
<CAPTION>
                                                                                           1996          1995
                                                                                        ---------     ---------
<S>                                                                                     <C>          <C>
         Reinsurance recoverable                                                        $  70,622     $ 101,941
         Allowance for doubtful accounts                                                   (1,380)         (816)
                                                                                        ---------     ---------
         Reinsurance recoverable, net                                                   $  69,242     $ 101,125
                                                                                        =========     =========

The effect of reinsurance on premiums written and earned for the
insurance operations is as follows:

                                                                                         Written        Earned
                                                                                        ---------     ---------
    For the year ended December 31, 1996-
         Direct premiums                                                                $ 130,198     $ 153,817
         Reinsurance assumed                                                               12,622         8,543
         Reinsurance ceded                                                                (46,591)      (55,143)
                                                                                        ---------     ---------
             Net premiums                                                               $  96,229     $ 107,217
                                                                                        =========     =========

             Percentage assumed of net                                                        13%            8%
                                                                                        =========     =========

    For the year ended December 31, 1995-
         Direct premiums                                                                $ 166,001     $ 152,579
         Reinsurance assumed                                                                6,235         7,164
         Reinsurance ceded                                                                (51,279)      (57,296)
                                                                                        ---------     ---------
             Net premiums                                                               $ 120,957     $ 102,447
                                                                                        =========     =========

             Percentage assumed of net                                                         5%            7%
                                                                                        =========     =========

    For the year ended December 31, 1994-
         Direct premiums                                                                $ 151,875     $ 136,445
         Reinsurance assumed                                                                7,268         5,040
         Reinsurance ceded                                                                (63,146)      (58,760)
                                                                                        ---------     ---------
             Net premiums                                                               $  95,997     $  82,725
                                                                                        =========     =========

             Percentage assumed of net                                                         8%            6%
                                                                                        =========     =========
</TABLE>
    

The Company makes quarterly deposits for reinsurance contracts in the normal
course of business. At December 31, 1996 and 1995, the Company had entered into
reinsurance contracts with future deposits totaling $17,550 and $ 32,064,
respectively. These deposits are generally payable in the first nine months of
the subsequent year.





                                       43
<PAGE>   6
                                   SIGNATURES


  Pursuant to the requirements of Section 13 or 15(d) 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.

   
Dated: June 25, 1997                    AMERICAN EAGLE GROUP, INC.
    



                                        BY: /s/ M. Philip Guthrie 
                                           -------------------------------
                                            M. Philip Guthrie, Chairman of the
                                            Board, Chief Executive
                                            Officer and President


   
    





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