A.M. Best Places Ratings of American International Group, Inc. and Its Subsidiaries Under Review with Negative Implications
January 27 2016 - 05:03PM
Business Wire
A.M. Best has placed under review with negative
implications the issuer credit rating (ICR) of American
International Group, Inc. (AIG) (New York, NY) (NYSE:AIG) and
the financial strength ratings (FSR) and ICRs of its insurance
subsidiaries. (Please see link below for a detailed listing of the
companies and ratings.)
The under review status reflects the strengthening of loss
reserves in AIG’s non-life business by $3.6 billion during the
fourth quarter of 2015, primarily reflecting adverse development on
prior accident years in longer-tailed lines of business. While the
reserve actions are spread across a number of accident years, A.M.
Best is concerned that approximately 41% of the strengthening
relates to 2011–2013 accident years, for which either favorable or
modestly adverse development had been previously reported, and the
2014 accident year. The total amount of the deficiency reported
exceeds A.M. Best’s assumptions of loss reserve deficiency,
excluding the reversal of statutory discounts of reserves for
workers’ compensation.
The under review status also considers the potential impact on
the business profile and future earnings capacity of AIG of the
strategic actions being taken by management to improve
profitability and efficiency and maximize shareholder value.
The ratings will remain under review while A.M. Best reviews the
planned actions in greater detail with management, receives and
reviews the year-end financial information of AIG and its rated
subsidiaries (including review of the impact of the reserve
strengthening) and assesses the potential impact of these items on
the current ratings.
For a complete listing of AIG and its subsidiaries’ FSRs and
ICRs, please visit American International Group, Inc.
This press release relates to rating(s) that have been
published on A.M. 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 A.M.
Best’s Recent Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2016 by A.M. Best Company,
Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20160127006423/en/
A.M. BestJacqalene Lentz, 908-439-2200, ext.
5762Senior Financial Analyst –
P/Cjacqalene.lentz@ambest.comorWilliam
Pargeans, 908-439-2200, ext. 5359Assistant Vice President –
L/Hwilliam.pargeans@ambest.comorDavid
Drummond, +(44) 20 7397 0327Senior Financial
Analystdavid.drummond@ambest.comorChi Yeung
Lok, +(65) 6589 8412, ext. 210Senior Financial
Analystchi-yeung.lok@ambest.comorChristopher
Sharkey, 908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim
Peavy, 908-439-2200, ext. 5644Assistant Vice President,
Public Relationsjames.peavy@ambest.com
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