Standard & Poor's has upgraded American International GroupP&C business financial strength rating one notch to “A-plus”and affirmed the “A-plus” rating on the its life business citingthe successful restructuring of the company over the past twoyears.
|The outlook for both groups is stable.
|S&P says the upgrade reflects the sale of AIG's non-corebusinesses and the $182.3 billion repayment to the federalgovernment for the bailout the insurance giant received in 2008.The ratings service went on to say that it believes the carrier is“committed to maintaining and enhancing AIG's competitive positionin the global P&C and U.S. life businesses.”
|The company further underscores its commitment, according toS&P, by phasing out the Chartis brand and re-branding asAIG.
|AIG has been streamlining both the life and P&C operationsto reduce administrative and regulatory compliance costs andimprove capital management, says the ratings agency. At the sametime, it is improving profitability to its P&C operations byinvesting in staff, systems and underwriting tools bring operations“to a level more consistent with its historical underwritingresults.”
|S&P says it expects AIG Life to maintain its competitiveposition while P&C business will improve its results to a level“more consistent with its peers,” while revenues are expected toremain strong throughout entire company.
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