A.M. Best Upgrades the Financial Strength Ratings of American International Group's Operating Insurance Companies.
OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 22, 2003
A.M. Best Co. has upgraded the financial strength ratings to A++ (Superior) from A+ (Superior) of various American International Group (NYSE: AIG) life and annuity insurance companies: Variable Annuity Life Insurance Company, AIG Annuity Insurance Company, American General Life Insurance Company, American General Life and Accident Insurance Company, American General Assurance Company and United States Life Insurance Company in the City of New York. Additionally, A.M. Best has affirmed the financial strength ratings of American International Group's other life and annuity companies. (See link below.) The outlook on all ratings is stable.
The rating actions reflect AIG's sound operating fundamentals, leading market positions in many of its product lines, diverse and productive distribution channels, consistently strong profitability and conservative investment and asset/liability management. The ratings also reflect American General's role as a core operating unit of AIG, one of the world's preeminent insurance and asset management organizations. AIG has historically been one of the best managed and most profitable insurance organizations in the industry, and its companies benefit from being members of the group as a result of business synergies gained across operating units, consistent and conservative asset management, the parent's financial flexibility and resources and AIG's widely recognizable and respected brand.
Partially offsetting these strengths is the interest sensitive nature of a number of AIG's core annuity, guaranteed investment contract (GIC) and structured settlement businesses. A.M. Best does note, however, that the organization's conservative investment and asset liability management philosophy, coupled with its many and varied liquidity sources, helps mitigate the risk.
The organization has historically generated strong profitability, and, combined with its access to external capital, has always had a solid financial cushion to mitigate the effects of adverse business developments.
For a complete listing of companies with affected financial strength and debt ratings, please visit http://www.ambest.com/press/102202aig.pdf.
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.