A.M. Best Affirms Ratings of American International Group Inc.'s Life/Health Insurance Subsidiaries.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A++ (Superior) of American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. , Inc.'s (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 ) (NYSE NYSE See: New York Stock Exchange : AIG) (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 , NY) core life/health subsidiaries. (See list below.) A.M. Best has also affirmed the financial strength ratings of A+ (Superior) of Merit Life Insurance Company (Evansville, IN) and Pacific Union Assurance Company (San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , CA). Concurrently, A.M. Best has assigned a financial strength rating of A++ (Superior) to American Life Insurance Company (Wilmington, DE), 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 Life Insurance Company (Jefferson City Jefferson City, city (1990 pop. 35,481), state capital and seat of Cole co., central Mo., on the south bank of the Missouri River, near the mouth of the Osage; inc. 1825. , MO) and AIG Assurance Canada (Toronto, Ontario). The outlook for all ratings is stable. The ratings reflect the group's sound operating fundamentals, leading market positions in many of its product lines, diverse distribution channels, consistently strong profitability, conservative investment philosophy and prudent asset/liability management Asset/Liability Management A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management. . The ratings also recognize AIG's position as one of the world's leading insurance and financial services organizations. AIG's life/health operations maintain leading market positions in the United States in individual life, structured settlements, association business and credit insurance issued through banks. In addition, AIG, through its subsidiaries, is the largest issuer of annuities and institutional spread-based products in the United States. A.M. Best believes that the AIG life/health companies have demonstrated the ability to improve both the earnings levels and capital positions in a recovering economic environment. On a consolidated basis, AIG has historically been one of the most profitable insurance organizations in the industry. Its life/health subsidiaries benefit from being members of the group due to AIG's considerable financial flexibility, diverse operations and widely recognizable and respected brand. Offsetting these positive factors is the interest sensitive nature of AIG's core annuity and guaranteed investment contract Guaranteed investment contract (GIC) A pure investment product in which a life company agrees, for a single premium, to pay at a maturity date the principal amount of a predetermined annual crediting (interest) rate over the life of the investment. (GIC GIC See: Guaranteed Investment Contract GIC See guaranteed investment contract (GIC). ) businesses. Additionally, the organization has been exposed to negative press regarding multiple regulatory investigations. A.M. Best believes there is potential for future earnings volatility due to this combination of factors. This potential is somewhat mitigated by AIG's conservative investment philosophy, prudent asset/liability management and its numerous sources of liquidity. Moreover, in late 2004, AIG reached a settlement with the Securities and Exchange Commission and the Justice Department on two regulatory issues related to dealings with Brightpoint, Inc. and PNC Financial Services PNC Financial Services (NYSE: PNC) is a U.S.-based financial services corporation, with assets of $92.0 billion. PNC operations include a regional banking franchise operating primarily in eight states and the District of Columbia, specialized financial businesses serving Group. A.M. Best will continue to monitor issues related to the industry wide contingency commission investigations and their impact on life insurers. The financial strength rating of A++ (Superior) has been affirmed for the following life/health subsidiaries of American International Group, Inc.: --AIG Annuity Insurance Company --AIG Life Insurance Company --AIG Life Insurance Company of Canada --AIG Life Insurance Company of Puerto Rico --AIG SunAmerica Life Assurance Company --American General Assurance Company --American General Life and Accident Insurance Company --American General Life Insurance Company --American International Life Assurance Company of New York --Delaware American Life Insurance Company --First SunAmerica Life Insurance Company --SunAmerica Life Insurance Company --The United States Life Insurance Company in the City of New York --The 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 Company The financial strength rating of A+ (Superior) has been affirmed for the following life/health subsidiaries of American International Group, Inc.: --Merit Life Insurance Co --Pacific Union Assurance Company The financial strength rating of A++ (Superior) has been assigned to the following life/health subsidiaries of American International Group, Inc.: --AGC Life Insurance Company --AIG Assurance Canada --American Life Insurance Company For Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. 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 http://www.ambest.com. |
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