In a recent development, AM Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICRs) of American International Group, Inc. (AIG) and its property/casualty (P/C) insurance subsidiaries to “a+” (Excellent) from “a” (Excellent).
The Financial Strength Rating (FSR) of A (Excellent) for AIG PC has also been affirmed. Additionally, the Long-Term ICR for AIG as a whole has been upgraded to “bbb+” (Good) from “bbb” (Good), reflecting a positive outlook for the company.
The upgrade is based on AIG PC’s strong balance sheet, marked by very strong risk-adjusted capital position measured by Best’s Capital Adequacy Ratio (BCAR).
AIG PC’s underwriting performance has notably improved, contributing to the elevated Long-Term ICRs. The stable outlooks for both Long-Term ICRs and FSR reflect AM Best’s confidence in the stability and strength of AIG PC’s operations.
AIG PC’s operating performance, while historically lagging behind composite peers, has been on a consistent upward trajectory in recent years.
This improvement is attributed to various underwriting and risk management initiatives, coupled with positive pricing momentum in key business lines.
The group’s risk-adjusted capital position remains robust, supported by strong reinsurance backing from highly rated reinsurers.
AIG PC’s favourable business profile is underlined by its market position and global presence. The group boasts expertise in commercial lines and utilises diverse distribution channels.
Notable subsidiaries included in the upgrade are National Union Fire Insurance Company of Pittsburgh, PA, American Home Assurance Company, Lexington Insurance Company, and AIG Property Casualty Company, among others.
