AMERICAN GENERAL CORPORATION SENIOR DEBT RATING REAFFIRMED AT 'AA-' COMMERCIAL PAPER RATING REAFFIRMED AT 'DUFF 1+'
CHICAGO, Jan. 27 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the senior debt rating of American General Corporation (American General) at AA-' (Double-A-Minus) and the commercial paper rating at Duff 1+ (One-Plus). The rating reflects the company's strong capitalization, high fixed charge coverage, and very good asset quality. American General is a consumer financial services organization based in Houston with $38.9 billion of total assets and $4.5 billion of shareholders' equity at September 30, 1992. The company has four business segments: insurance-home service, consumer finance, retirement annuities, and insurance-special markets. American General expects most of its future growth to come from consumer finance and retirement annuities. American General Life Insurance Company (AGL) is a traditional life insurer with total admitted assets of $4.5 billion and adjusted surplus of $1.1 billion at September 30, 1992. Duff & Phelps rates the claims paying ability of AGL AAA' (Triple-A). Variable Annuity Life Insurance Company (VALIC) is a major subsidiary of AGL with admitted assets of $16.7 billion and adjusted surplus of $722 million at September 30, 1992. VALIC is a retirement annuity company rated AAA' (Triple-A) by Duff & Phelps. American General's fixed obligation ratio was 23 percent at September 30, 1992. This ratio has fluctuated between 22 percent and 29 percent over the last three years. We expect the fixed obligation to remain in that range. The fixed charge coverage ratio was 6.1 times for the year ended December 31, 1991, and 7.5 times for the nine months ended September 30, 1992. American General has very good asset quality. Bonds represented 75 percent of total invested assets at September 30, 1992. Below investment grade securities made up 3.3 percent of the bond portfolio. Mortgage loans comprised 14 percent of total invested assets at quarter- end. American General's mortgage portfolio has significantly out- performed the life insurance industry averages. Investment real estate, policy loans, equities, and other long-term investments made up the balance of the portfolio at 4 percent, 4 percent, 2 percent and 1 percent, respectively. -0- 1/27/93 /CONTACT: Julie A. Burke, CPA of Duff & Phelps, 312-368-3158/ (AGC)
CO: American General Corporation ST: Texas IN: INS SU: RTG
KD -- NY070 -- 9652 01/27/93 12:18 EST
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|Date:||Jan 27, 1993|
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