Filed by: Prudential plc
                           Pursuant to Rule 425 under the Securities Act of 1933

                                   Subject Company: American General Corporation
                                      Exchange Act Commission File No: 001-07981

Proxy statement/prospectus

Prudential plc and American General Corporation will be filing a proxy
statement/prospectus and other relevant documents concerning the proposed
transaction with the SEC. INVESTORS ARE URGED TO READ THE PROXY
STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS
FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ON THE
PROPOSED TRANSACTION. Investors will be able to obtain the document free of
charge at the SEC's website (www.sec.gov). In addition, the proxy
statement/prospectus and other relevant documents concerning the proposed
transaction and filed with the SEC may be obtained free of charge by contacting
Prudential plc, Laurence Pountney Hill, London EC4R 0HH, England, Attention:
Investor Relations (tel: (44 20) 7548 3537), and American General Corporation,
2929 Allen Parkway, Houston, Texas, 77019, Attention: Investor Relations (tel:
(713) 522-1111).





  The following letter was sent by Sir Roger Hurn, Chairman of Prudential plc
                 to Prudential shareholders on March 30, 2001.



                                [PRUDENTIAL LOGO]


                                                       Sir Roger Hurn
                                                       Chairman

                                                       Prudential plc
                                                       Laurence Pountney Hill
                                                       London EC4R 0HH

                                                       Tel 020 7220 7588
                                                       Direct line 020 7548 3900
                                                       Fax 020 7548 3631


30 March 2001


Dear Shareholder,


Proposed Merger with American General Corporation

As we go to press with Annual Report 2000, the Board has announced its agreement
of terms for the proposed merger of Prudential plc with American General
Corporation, a leading financial services organisation in the United States.

American General, headquartered in Houston, Texas, is the second largest
publicly traded life insurance company in the US, and one of the US' largest
providers of retirement services, life insurance, consumer loans and investments
to over 12 million customers. It has total assets under management in excess of
US$120 billion and a market capitalisation as at 9 March 2001 (the last trading
day prior to the announcement of the proposed merger) of approximately US$19
billion.

As you will know, through Jackson National Life, Prudential already has a
significant presence in the US. This merger with American General will further
enhance that presence, making Prudential a leader in a number of key product
areas in the world's largest insurance and retirement services market. American
General has developed a powerful multi-brand, multi-channel business model that
complements perfectly Jackson National Life's own high quality operations, with
very little overlap.

This merger will not only give us a leading position in the US, but, just as
importantly, it will also give us the scale and financial strength to allow for
continued expansion and faster growth in the other regions of the world in which
we operate.

American General shares our fundamental business culture focused on delivering
shareholder value. The Board unanimously believes that together Prudential and
American General will create a top-tier international financial services
business of world importance, with leading positions in the US, the UK and Asian
markets.

This proposal has the full support of the Prudential Board. All shareholders
will have the opportunity to ask questions about the proposed merger and to vote
on it at our Extraordinary General Meeting, the date of which will be announced
shortly.

Yours sincerely,
/s/ Roger Hurn

Sir Roger Hurn
Chairman

                                                           (please see overleaf)

Prudential plc and American General Corporation will be filing a proxy
statement/prospectus and other relevant documents concerning the proposed
transaction with the SEC. AMERICAN GENERAL CORPORATION SHAREHOLDERS ARE URGED TO
READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY OTHER
RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION ON THE PROPOSED TRANSACTION. Investors will be able to obtain the
document free of charge at the SEC's website (www.sec.gov). In addition, the
proxy statement/prospectus and other relevant documents concerning the proposed
transaction and filed with the SEC may be obtained free of charge by contacting
Prudential plc, Laurence Pountney Hill, London, EC4R 0HH, England, Attention:
Investor Relations (tel. (+44 20) 7548 3537), and American General Corporation,
2929 Allen Parkway, Houston, Texas, 77019, Attention: Investor Relations (tel.
(+1 713) 522-1111).

Issued by Prudential plc, approved by UBS Warburg Ltd., a subsidiary of UBS AG
for the purposes of Section 57 of the Financial Services Act 1986. UBS Warburg
Ltd. is regulated in the UK by the Securities and Futures Authority. This does
not constitute a recommendation regarding the Prudential plc ordinary shares.
The value of an investment may go down as well as up. Investors or potential
investors should seek advice from an independent financial advisor as to the
suitability for the individual concerned.