AIG Europe S.A. Rated 'AAA' By S&P.PARIS Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. --(BUSINESS WIRE)--Standard & Poor's CreditWire 10/09/98-- Standard & Poor's today assigned its triple-'A' financial strength rating to 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 Europe S.A. (AIG Europe). The rating is based on explicit and implicit support from American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. Inc. (AIG) and its member companies. Explicit support includes a guarantee from American Home For the American mortgage lender, see . The American Home is a center of intercultural exchange located in Vladimir, Russia. The home is designed to model a typical American suburban home and its main focus is the ESL school that provides lessons for Russian students. Assurance Co. (which has a triple-'A' financial strength rating and is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of AIG) on the prompt payment of all obligations arising from policies issued by AIG Europe. MAJOR RATING FACTORS -- The policyholder obligations of the company have been explicitly guaranteed by triple-'A' rated American Home Assurance Company. -- Standard & Poor's believes that the company's business position is satisfactory. With FFr1.2 billion ($200 million) of net written premiums in 1997, AIG Europe is specialized in several insurance niches, such as director & officers liability, energy and travel insurance. Management is highly focused on profitability and is willing to emphasize or reduce the company's involvement in various lines of business on an opportunistic basis. AIG Europe is responsible for AIG's expansion in western Continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. . The company insures lines of business similar to that of other AIG member companies and shares some common sources of distribution with them. In addition, the company has a substantial dependence on reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. . -- Standard & Poor's believes that management is pursuing conservative strategies in terms of investments, loss reserving, and reinsurance. The parent company has a significant influence in each of these areas, and uncertainties surrounding potential Millennium Bug millennium bug: see Year 2000 problem. See Y2K Problem. millennium bug - Year 2000 liabilities have been well researched. -- AIG Europe has very strong capitalization. Based on Standard & Poor's risk-based capital model, year-end 1998 capital adequacy is expected to remain at around 160% of requirements, although this is likely to decline somewhat as the company's business continues to grow. Given AIG Europe's strategic importance to AIG, Standard & Poor's considers the company's supported financial flexibility to be extremely strong. -- Operating performance has been strong over the past five years. Standard & Poor's expects similar levels to continue in the future. EXPECTATIONS In the short term, Standard & Poor's expects AIG Europe's business position to improve, thanks to innovative policies and strong marketing efforts. However, operating performance will be affected by more competitive underwriting conditions. Despite a declining trend, capitalization should remain strong, Standard & Poor's said. --- CreditWire |
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