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):
                              APRIL 11, 1997





                        AMERICAN EAGLE GROUP, INC.
          (Exact name of registrant as specified in its charter)




DELAWARE                    1-12922                    75-2100622
(State or other     (Commission File Number)        (I.R.S. Employer
jurisdiction of                                   Identification No.)
incorporation)




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




Registrant's telephone number, including area code:  (972) 448-1400


ITEM 5.   OTHER EVENTS

          American Eagle Insurance Company (the "Company"), a subsidiary of
          American Eagle Group, Inc., has entered into an agreement,  dated
          April  11,  1997,  with American Financial Group,  Inc.  ("AFG"),
          pursuant  to  which  the Company will sell its  general  aviation
          insurance business to AFG.


ITEM 7.   FINANCIAL STATEMENTS AND EXHIBITS

          The following Exhibits are filed herewith:

          99.1 April  11,  1997  American Eagle Group, Inc.  press  release
               setting  forth  the  details of  the  sale  of  the  general
               aviation  insurance  business of  American  Eagle  Insurance
               Company,  a  subsidiary of American Eagle  Group,  Inc.,  to
               American Financial Group, Inc.


                                SIGNATURES


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 EAGLE GROUP, INC.



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



Dated:  April 15, 1997



                               EXHIBIT INDEX


Exhibit
Number                       Description                            Page
- --------                     -----------                            ----

99.1      April 11, 1997 American Eagle Group, Inc. press release
          setting  forth the details of the sale of  the  general
          aviation insurance business of American Eagle Insurance
          Company, a subsidiary of American Eagle Group, Inc., to
          American Financial Group, Inc.