Standard & Poor's has upgraded American International Group P&C business financial strength rating one notch to “A-plus” and affirmed the “A-plus” rating on the its life business citing the successful restructuring of the company over the past two years.

The outlook for both groups is stable.

S&P says the upgrade reflects the sale of AIG's non-core businesses and the $182.3 billion repayment to the federal government 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 position in the global P&C and U.S. life businesses.”

The company further underscores its commitment, according to S&P, by phasing out the Chartis brand and re-branding as AIG.

AIG has been streamlining both the life and P&C operations to reduce administrative and regulatory compliance costs and improve capital management, says the ratings agency. At the same time, it is improving profitability to its P&C operations by investing in staff, systems and underwriting tools bring operations “to a level more consistent with its historical underwriting results.”

S&P says it expects AIG Life to maintain its competitive position while P&C business will improve its results to a level “more consistent with its peers,” while revenues are expected to remain strong throughout entire company.

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S&P Upgrades AIG P&C; Affirms Life Rating

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