Moody's confirmed its "Aa2" insurance financial strength rating of American International Group's domestic brokerage group.
AIG has been under the regulatory and ratings agency microscope all year following its restatement of earnings stemming from possible accounting misdeeds, the rating service said earlier this week.
Bruce Ballentine, vice president senior credit officer, and Robert Riegel, managing director, both with the Financial Institutions Group at Moody's, said that members of the domestic brokerage group remained on review for possible further downgrade because of the preponderance of ongoing regulatory investigations and potential accounting adjustments which pertained to this group.
Following its year-end restatements that resulted in a reduction of aggregate statutory surplus of $3.05 billion to $20.6 billion, AIG contributed $750 million of fresh capital to one group member, American Home Assurance Company, to strengthen its capital position.
Moody's said that group's ratings reflect the strong market position in commercial and specialty lines and its ability to underwrite large and complex risks.
"AIG continues to face challenges with regard to regulatory investigations, loss reserves and internal controls over financial reporting," they wrote.
Regulatory settlements will most likely involve some sort of monetary restitution as well as assurances of proper business practices going forward, he added.
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