SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
December 16, 1998
AMERICAN GENERAL CORPORATION
(Exact name of registrant as specified in charter)
Texas 1-7981 74-0483432
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
2929 Allen Parkway, Houston, Texas 77019
Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(713) 522-1111
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AMERICAN GENERAL CORPORATION
Item 5. Other Events.
On December 16, 1998, American General Corporation
("American General ") issued a news release announcing that
certain of its life insurance subsidiaries had entered into
agreements to resolve market conduct class action lawsuits.
In conjunction with the proposed resolution, which is
contingent on court approval, American General will take a
non-recurring aftertax charge to net income of
approximately $246 million, or $.94 per share, in the
fourth quarter of 1998.
The non-recurring charge covers the cost of
policyholder benefits and all other anticipated expenses
resulting from the proposed resolution, as well as other
administrative and legal costs. The proposed settlements
will not have a material impact on the Company's financial
condition or business operations.
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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 GENERAL CORPORATION
Dated: December 16, 1998 By: /S/ MARK S. BERG
Mark S. Berg
Executive Vice President
and General Counsel
