Fitch Affirms & Removes AIG from Watch Negative; Assigns 'AA' IDR.CHICAGO -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has affirmed and removed from Rating Watch Negative all of its ratings on 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 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 ) and subsidiaries. Fitch originally placed AIG on Rating Watch Negative in March 2005. In addition, Fitch has assigned 'AA' Issuer Default Ratings (IDRs) to AIG and several of its downstream holding company subsidiaries. The Rating Outlook is Stable. (Complete list of rating actions detailed below.) Fitch's rating action reflects its belief that the majority of the uncertainties surrounding AIG over the last 12-to-14 months have been resolved and that the company's financial profile and competitive positioning remain supportive of its current ratings. Despite a year of unprecedented challenges including management changes, investigations, restatements, reserve charges, regulatory settlements and catastrophe losses, AIG generated net income of over $10 billion and a return on equity of 12.3% in 2005. Fitch's rating action also reflects its heightened comfort with AIG's domestic commercial lines property/casualty operation's reserve adequacy and run-rate underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. profitability. Fitch's actions also incorporate its belief that AIG's domestic commercial lines property/casualty companies' medium-term focus includes building and retaining capital to more appropriate levels for the current ratings. Fitch views the current capital levels of AIG's domestic commercial lines property/casualty unit, especially risk-based capitalization, as materially below those of comparably-rated commercial line peers. Additionally, Fitch views this unit's current capitalization as generally weaker than that of many of AIG's other core insurance operations, but not to an extent that requires Fitch to differentiate between the insurer financial strength ratings of this unit and those of AIG's other core insurance operations. Fitch notes that it is currently developing a proprietary economic capital model that it anticipates implementing throughout the second half of 2006. Going forward, the agency expects this model to play an important role in its ratings analysis on AIG and in its ratings analysis in general. Fitch's analysis will continue to include a review of output from insurers' internal capital models, if available, and regulatory solvency ratios Solvency Ratio One of many ratios used to gauge a company's ability to meet long-term obligations. Notes: Derived by taking a company's net worth and dividing by total assets. See also: Asset, Asset Valuation, Balance Sheet, Fundamental Analysis, Income Statement . Fitch retained the unusually narrow notching between AIG's insurer financial strength ratings and holding company ratings upon implementing the agency's new notching and recovery rating methodology. The narrow notching reflects the organization's very strong financial flexibility and significant cash flow from diverse regulated and non-regulated subsidiaries. The narrow notching also reflects the results of Fitch's standard peer and comparative analysis, application of which supports AIG's current ratings. Going forward, Fitch expects AIG to manage holding company leverage below 15%. AIG's ratings were placed on Rating Watch Negative by Fitch after the company announced it would delay filing its 2004 10-K in order to complete a review of its accounting records and procedures. The review stemmed from regulatory investigations and subsequent civil suit against AIG brought by the Securities and Exchange Commission (SEC) and the Office of the 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 Attorney General (NYAG NYAG New York Attorney General ). AIG's ratings remained on Rating Watch Negative throughout 2005 as the company conducted its accounting review and worked to resolve its regulatory issues. In May 2005, AIG announced that it had hired an independent third-party to conduct a review of the adequacy of its general insurance reserves. Additionally, AIG's on-going accounting review identified errors and changes in adjustments that led to two restatements that collectively reduced its previously reported year-end 2004 shareholders equity by $2.2 billion. In February 2006, AIG announced that it had entered into a $1.6 billion settlement ($1.2 billion after-tax) agreement with the SEC, NYAG, United States Department of Justice “Justice Department” redirects here. For other uses, see Department of Justice. The United States Department of Justice (DOJ) is a Cabinet department in the United States government designed to enforce the law and defend the interests of the United States and New York State Department of Insurance (NYDOI). AIG concurrently announced that the completion of its reserve study would result in a fourth-quarter 2005 reserve increase of $1.7 billion pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern ($1.1 billion after-tax). Fitch viewed the financial effect of the settlement as a sizable but manageable figure for a company with AIG's earnings profile and financial flexibility. However, the agency retained its Negative Rating Watch at that time largely because of concerns about the domestic commercial line property/casualty subsidiaries capitalization and reserve adequacy. The following ratings have been affirmed and removed from Rating Watch Negative by Fitch: The Rating Outlook is now Stable. American International Group, Inc. --Senior debt 'AA'. AIG International, Inc. --Senior debt 'AA'. American General Corp. --Senior debt 'AA'. American General Capital II --Preferred securities 'AA-'. American General Finance Corp. --Senior debt 'A+'. American General Institutional Capital A and B --Capital securities 'AA-'. HSB (Hue Saturation Brightness) A color space that is similar to the way an artist mixes colors by adding black and white to pure pigments. The pigments are the hues (H), measured in a circle from 0 to 359 degrees (0=red, 60=yellow, 120=green, 180=cyan, 240=blue, Capital Trust I --Preferred securities 'AA'. International Lease Finance Corp. --Issuer Default Rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) 'A+'; --Senior debt 'A+' --Preferred stock 'A'. American General Finance, Inc. --Issuer Default Rating (IDR) 'A+'. American General Finance Corp. --Issuer Default Rating (IDR) 'A+'. ASIF ASIF Association for the Study of Internal Fixation. ASIF system a complete set of instruments for compression bone plating. Program ASIF II Program ASIF III Program ASIF Global Financial Program --Program rating 'AA+'. The following 'AA+' insurer financial strength ratings have also been affirmed and removed from Rating Watch Negative The Rating Outlook is now Stable: AIG Annuity Insurance Company AIG Life Insurance Company AIG SunAmerica Life Assurance Co. American General Life and Accident Insurance Co. American General Life Insurance Company American International Assurance American International Assurance known as AIA (美國友邦保險) is a famous insurance company based in Hong Kong. It has offices in Asia-Pacific region including China, Australia, New Zealand, Japan, India, Malaysia, South Korea, Thailand and Co. Ltd. American International Life Assurance Co. of NY American Life Insurance Company SunAmerica Life Insurance Co. The 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 Ins. Co in the City of NY 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 United Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Residential Insurance Co. Ezer Mortgage Insurance Co. Ltd American International Specialty Lines Insurance Co. American International Underwriters Overseas Ltd. Hartford Steam Boiler Inspection & Insurance Co. National Union Inter-company Pool Members: National Union Fire Insurance Co. of Pittsburgh 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. Commerce & Industry Insurance Co. Birmingham Fire The Birmingham Fire was a professional American football team based in Birmingham, Alabama that played in the World League of American Football in 1991 and 1992. The team played at Legion Field, and it made the playoffs in both seasons. Insurance Company of PA Insurance Company of the State of PA New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). Insurance Co. AIU AIU American Intercontinental University AIU Allegheny Intermediate Unit (Homestead, PA) AIU Atlantic International University AIU Association of Indian Universities AIU Association Internationale des Universités Insurance Co. Lexington Inter-company Pool Members: Lexington Insurance Company Landmark Insurance Co. Ltd. AIG Personal Lines Inter-company Pool Members: American International Insurance Co. New Hampshire Indemnity Company AIG Hawaii Insurance Company Inc. American International Insurance Co. of California Minnesota Insurance Company American International Insurance Co. of New Jersey --Insurer financial strength 'AA+'. The following commercial paper program ratings are also affirmed: AIG Funding, Inc. --Commercial paper 'F1+'. AIG International Inc. --Commercial paper 'F1+'. International Lease Finance Corporation --Commercial paper 'F1'. American General Finance, Inc. --Commercial paper 'F1'. American General Finance Corporation --Commercial paper 'F1'. CommoLoCo Inc. --Commercial paper 'F1'. In conjunction with the implementation of Fitch's new global insurance notching methodology, the following issuer default ratings (IDR) have been assigned with a Stable Rating Outlook: American International Group, Inc. --Issuer Default Rating (IDR) 'AA'. AIG International Inc. --Issuer Default Rating (IDR) 'AA'. American General Corp. --Issuer Default Rating (IDR) 'AA'. In conjunction with the implementation of Fitch's new global insurance notching, the following issuer ratings have been withdrawn: American International Group, Inc. --Long-term issuer 'AA'. --Short-term issuer 'F1+' AIG International Inc. --Long-term issuer 'AA'. --Short-term issuer 'F1+' American General Corporation --Long-term issuer 'AA'. ASIF Global Financing Program --Long-term issuer 'AA+'. ASIF I Program --Long-term issuer 'AA+'. ASIF II Program --Long-term issuer 'AA+'. ASIF III Program --Long-term issuer 'AA+'. The following companies have been assigned 'AA+' insurer financial strength ratings with a Stable Rating Outlook: 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 First SunAmerica Life Insurance Company of New York National Union Inter-company Pool Members: American International Pacific Insurance Company American International South Insurance Co. Granite State Insurance Company Illinois National Insurance Company Lexington Inter-company Pool Members: Starr Excess Liability Insurance Company, Ltd. AIG Personal Lines Inter-company Pool Members: AIG Centennial Insurance Company AIG Premier Insurance Company AIG Preferred Insurance Company AIG Indemnity Insurance indemnity insurance Managed care A type of health insurance in which a Pt can choose the hospital and provider, and the insurer reimburses the Pt or provider for a set percentage of the cost, minus deductibles and co-payments Company AIG National Insurance Company AIG Auto Insurance Company American Pacific Insurance Company --Insurer financial strength 'AA+'. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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