A.M. Best Affirms Ratings of AIG Following Offer to Acquire American General.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--April 4, 2001 A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the A++ (Superior) financial strength ratings of American International Group's (NYSE NYSE See: New York Stock Exchange : AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group ) property/casualty and life/health subsidiaries. This affirmation A solemn and formal declaration of the truth of a statement, such as an Affidavit or the actual or prospective testimony of a witness or a party that takes the place of an oath. An affirmation is also used when a person cannot take an oath because of religious convictions. follows the recent announcement by AIG that it has offered to acquire American General Corporation (NYSE: AGC AGC Automatic Gain Control AGC Automotive Glass Cartridge (fuse) AGC Associated General Contractors AGC Associated General Contractors of America AGC Atypical Glandular Cells AGC Attorney-General's Chambers ) in an all-stock transaction valued at approximately $23 billion. Under terms of the offer, shareholders of American General would receive shares of AIG equal to $46 per share, subject to AIG's share price trading within a 5% range to be specified prior to closing date. On March 12, 2001, A.M. Best had placed the A+ (Superior) financial strength ratings of American General Corporation's principal life insurance subsidiaries under review with developing implications, following the announcement by Prudential plc This article is about the British company. For the American company, see Prudential Financial. For places named after the company, see Prudential. Prudential plc (LSE: PRU, NYSE: PUK) is a United Kingdom-based financial services company. , U.K. that it would acquire AGC in an all-stock transaction. As of April 3, 2001, the value of Prudential's offer stood at $20.6 billion, down from the original value of $26.5 billion as of March 12, 2001. A.M Best continues to maintain its under review rating status on the operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. of AGC's principal insurance subsidiaries; however, should AIG be successful with its offer, A.M. Best would revise the rating implication from developing to positive. A.M. Best believes the combination of AIG and AGC would enhance AIG's near-term growth and earnings prospects providing for top line growth through multiple distribution channels, cross marketing opportunities and expense synergies. As one of the fastest growing providers of retirement savings and investment products in the U.S., AGC would further complement AIG's life and retirement savings businesses, as well as provide AIG the opportunity to leverage AGC's consumer finance expertise internationally. The transaction is subject to board and shareholder approvals as well as the customary regulatory approvals, and is expected to close before the end of the third quarter of 2001. The following A++ (Superior) financial strength ratings for American International Group's insurance operating subsidiaries are affirmed: Property Casualty: - Commerce and Industry Ins - American Intl South Ins Co - National Union Fire Ins Co - American Home Assurance Co - Commerce and Industry Ins Co - Insurance Co of the State PA - Birmingham Fire Ins Co of PA - New Hampshire Insurance Co - AIU Insurance Company - Granite State Insurance Co - AIG Global Trade & Political Risk - Audubon Insurance Company - National Union Fire Ins of LA - Audubon Indemnity Company - American Intl Pacific Ins Co - Illinois National Insurance Co - American Intl Ins Co of PR - China America Ins Co Ltd - American Intl Specialty Lines Life: - Anchor National Life Insurance Company - AIG Life Insurance Company of Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. - First SunAmerica Life Insurance Company - AIG Life Insurance Company of Canada - Delaware American Life Insurance Company - American International Life Assurance Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of - SunAmerica Life Insurance Company - AIG Life Insurance Company The following A+ (Superior) financial strength ratings are under review with developing implications for American General group of companies: - All American Life Insurance Co - Merit Life Insurance Co - American General Life & Accident - Old Line Life Insurance Co of America - American General Assurance Co - American General Life of PA - United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Life Insurance of NY - Variable Annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. Life Insurance Co - American General Annuity Insurance - American General Life Insurance Co - Franklin Life Insurance Co - American General Life Insurance Co NY - American Franklin Life Insurance - North Central Life Insurance Co A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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