Despite reporting a $60 billion-plus loss for the fourthquarter, American International Group got generally mixed reviewsfrom rating agencies, most supporting the company's insurancefinancial strength rating based on government support for thecarrier.

Three rating agencies said they are supporting the insurancefinancial strength rating of the company, primarily the entitiesthe insurer indicated it plans to keep in its portfolio. Ratings inother parts of its business, however, did not fair as well.

Standard & Poor's affirmed the financial strength rating andcounterparty credit rating on AIG's insurance subsidiaries at“A-plus.” The rating agency removed all the ratings from creditwatch, but the outlook on all the companies is negative.

“The affirmation primarily reflects our view that the U.S.Treasury and the Federal Reserve will continue their financialsupport of and ongoing commitment to AIG…,” said S&P's creditanalyst Kevin Ahern in a statement.

Moody's confirmed the insurance financial strength of “AIG'score property-casualty operations,” which are primarily rated inthe “A” category, but downgraded its life units.

“The rating confirmation for AIG and its core P&C operationsreflects the benefits to policyholders and senior creditors fromthe restructuring steps announced today as well as our expectationthat the government will provide incremental support as needed toensure that AIG can meet its obligations through this period ofsevere economic recession and market turmoil,” said BruceBallentine, Moody's lead analyst for AIG.

Fitch Ratings affirmed the insurer financial strength rating of“double-A-minus” with a stable outlook on insurer subsidiaries thecompany plans to retain and placed the same financial strengthrating on companies the company plans to divest on rating watchevolving.

The company has said it is looking for buyers for most of itsunits, except its core insurance business primarily inproperty-casualty.

A.M. Best said its ratings of AIG remained unchanged withnegative outlook.

Rating agencies expressed concerns over AIG's competitiveposition going forward through the loss of customers, producers,and key personnel.

In an analyst's note, Cliff Gallant with Keefe, Bruyette &Woods said the earnings decline for AIG showed significant pressureon premiums.

“In our view, whether the decline is due to clients leaving orbecause AIG must significantly cut prices to keep clients, theimplication is clear that AIG's franchise has suffered,” Mr.Gallant wrote. “We expect well-positioned competitors to gainmomentum in gaining market share.”

In addition to announcing its fourth quarter results, AIG andthe U.S. Treasury Department also announced a new loan arrangementmaking payment terms easier and providing $30 billion in freshcapital to the insurer.

Greg Case, president and chief executive officer ofChicago-based Aon Corp. said, “Aon supports any action taken in themarketplace where clients will benefit from reduced uncertainty andvolatility in the commercial insurance industry, as there is anongoing need for capital in order to provide a baseline ofstability as well as a continued flow of innovative products tohelp clients through this crisis.”