AMERICAN GENERAL LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY RATING REAFFIRMED AT 'AAA'
CHICAGO, Sept. 21 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the claims paying ability rating of American General Life Insurance Company (AGL) at "AAA" (Triple-A). The rating reflects the company's excellent asset quality, low operating leverage, and the strength and support of its parent, American General Corporation. AGL is a traditional life insurer based in Houston with admitted assets of $4.9 billion and adjusted surplus of $1.3 billion at June 30, 1993. The company is a wholly owned subsidiary of American General Corporation, a consumer financial services organization with $42.1 billion of total assets and $4.8 billion of shareholders' equity at June 30, 1993. Duff & Phelps upgraded the senior debt rating of American General Corporation from "AA-" (Double-A-Minus) to "AA" (Double-A) in July 1993. The rating action reflected the company's very strong and improved capitalization and interest coverage. Variable Annuity Life Insurance Company (VALIC) is a major subsidiary of AGL with admitted assets of $18.8 billion and adjusted surplus of $843 million at June 30, 1993. VALIC was carried on AGL's balance sheet at $700 million at quarter-end. VALIC is a retirement annuity company rated "AAA" (Triple-A) by Duff & Phelps. AGL's operating leverage ratio (including VALIC) was 14.19 times at quarter- end. This level was stronger than industry norms given AGL's business mix. AGL has a high quality, liquid investment portfolio. Bonds represented 61 percent of total invested assets at June 30, 1993. Below investment grade securities made up 4 percent of the bond portfolio. VALIC and other affiliated investments represented 19 percent of invested assets. Mortgage loans comprised 11 percent of total invested assets at quarter-end. AGL's mortgage portfolio has significantly out- performed the life insurance industry averages. -0- 9/21/93 /CONTACT: Julie A. Burke, CPA, of Duff & Phelps Credit Rating Co. 312-368-3158/ (AGC)
CO: American General Life Insurance Company ST: Texas IN: INS SU: RTG
TW -- NY040 -- 4148 09/21/93 12:04 EDT
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|Date:||Sep 21, 1993|
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