Filed by: American General Corporation
                         Pursuant to Rule 425 under the Securities Act of 1933
                         Subject Company: American General Corporation
                         Commission File No:  001-07981


News Release 2001-17
June 18, 2001
American General









Investors:                           Media:
- ---------                            -----
Kenneth A. Brause                    John E. Pluhowski
Vice President - Investor Relations  Vice President - Corporate Communications
(212) 446-3107                       (713) 831-1149





FOR IMMEDIATE RELEASE


    AMERICAN GENERAL ANNOUNCES DATE FOR SPECIAL MEETING OF SHAREHOLDERS


         Houston, June 18, 2001 - American General (NYSE:AGC) today
announced that it will hold a special meeting of shareholders on August 15,
2001 at which shareholders will consider the approval of the merger
agreement among the company, American International Group, Inc. (NYSE:AIG),
and a wholly-owned subsidiary of AIG. Shareholders of record on June 25,
2001 will be entitled to vote at the special meeting.

         On May 11, 2001 AIG and American General entered into a definitive
agreement under which American General shareholders will receive $46 per
share of American General common stock in AIG common stock, subject to a
collar mechanism. The acquisition, which is subject to the approval of
American General shareholders and regulatory approvals, is expected to be
completed by year-end 2001.

         Detailed information regarding the acquisition is provided in the
preliminary proxy statement/ prospectus included in the Form S-4
registration statement of AIG on file with the Securities and Exchange
Commission. Shareholders of American General common stock will be mailed
the definitive proxy statement/prospectus beginning in early July 2001.

                        ----------------------------

         American General is one of the nation's largest diversified
financial services organizations with assets of $124 billion and market
capitalization of $23 billion. Headquartered in Houston, it is a leading
provider of retirement services, investments, life insurance, and consumer
loans to more than 12 million customers. American General common stock is
listed on the New York, Pacific, London, and Swiss stock exchanges.

                        ----------------------------

         American International Group, Inc. ("AIG") and American General
Corporation ("American General") have filed a preliminary proxy
statement/prospectus and other relevant documents concerning AIG's
acquisition of American General with the Securities and Exchange Commission
("SEC"). INVESTORS ARE URGED TO READ THE PRELIMINARY PROXY
STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED
IN THE FUTURE WITH THE SEC BECAUSE THOSE DOCUMENTS CONTAIN IMPORTANT
INFORMATION. Investors are able to obtain such documents free of charge at
the SEC's website at www.sec.gov. In addition, such documents may also be
obtained free of charge by contacting American International Group, Inc.,
70 Pine Street, New York, New York, 10270, Attention: Director of Investor
Relations, or American General Corporation, 2929 Allen Parkway, Houston,
Texas, 77019, Attention: Investor Relations.

         American General and certain other persons referred to below may
be deemed to be participants in the solicitation of proxies from American
General shareholders to adopt the agreement providing for AIG's acquisition
of American General. The participants in this solicitation may include,
under SEC rules, the directors and executive officers of American General,
who may have interests in the transaction, including as a result of holding
shares or stock options of American General. A detailed list of the names
and interests of American General's directors and executive officers is
contained in the definitive proxy statement on Schedule 14A filed by
American General with the SEC on March 28, 2001. Copies of that filing may
be obtained free of charge at the SEC's website at www.sec.gov.


 American General Corporation o 2929 Allen Parkway o Houston, Texas 77019-2155
                          www.americangeneral.com
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