Company Announcements

AM Best Comments on Credit Ratings of American International Group, Inc. and Its Subsidiaries Following Announced Plans to Separate Its Life & Retirement Business

OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 27, 2020-- AM Best has commented that the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” of American International Group, Inc. (AIG) (headquartered in New York, NY) [NYSE: AIG] remains unchanged following its announcement to pursue a separation of its life and retirement business. AM Best also has commented that the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of “a” of AIG’s property/casualty insurance subsidiaries (collectively referred to as AIG PC) remain unchanged. Concurrently, AM Best has commented that the FSR of A (Excellent) and the Long-Term ICR of “a” for the members of the AIG Life & Retirement Group (AIG L&R) also remain unchanged. The outlook of these Credit Ratings (ratings) is stable.

On Oct. 26, 2020, AIG announced its intention to separate its Life and Retirement business segments from AIG. AIG’s board of directors believes a more simplified corporate structure and focused management will lead to increased shareholder value.

Historically, the consolidated group has benefited from the operational profitability and diversification brought by AIG L&R. However, AM Best notes the significant changes in underwriting, volatility reduction actions taken through reinsurance purchases and product portfolio repositioning that have been implemented at AIG PC over the last few years, all of which have improved AIG PC’s operational profile. At this point, AM Best awaits additional necessary details on how this separation will proceed, the impact it will have on the overall capital structure and credit quality at AIG and each segment, along with a planned timeline. AM Best will continue to monitor the situation and react accordingly from a ratings perspective as details arise.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Erik Miller, CFA
Associate Director
+1 908 439 2200, ext. 5187
erik.miller@ambest.com

Mike Lagomarsino, CFA, FRM
Senior Director
+1 908 439 2200, ext. 5810
michael.lagomarsino@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

Source: AM Best

Erik Miller, CFA
Associate Director
+1 908 439 2200, ext. 5187
erik.miller@ambest.com

Mike Lagomarsino, CFA, FRM
Senior Director
+1 908 439 2200, ext. 5810
michael.lagomarsino@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com