NU Online News Service, Dec. 17, 9:54 a.m. EST
A.M. Best Co. said it has affirmed the financial strength ratings and issuer credit ratings of most property and casualty and life and health insurance subsidiaries of American International Group, Inc.
Oldwick, N.J.--based Best said the ratings of the Chartis U.S. Insurance Group (formerly referred to as AIG Commercial Lines Group), reflect their supportive level of risk-adjusted capitalization; improved underwriting and operating performance through third quarter 2009; and the prominent position of these entities as global providers of commercial insurance.
The group is comprised of the commercial pool led by National Union Fire Insurance Company of Pittsburgh, Pa. and a number of related entities, as well as the Lexington Insurance Pool, led by Lexington Insurance Company,
Best said negative outlook rating factors include franchise damage resulting from the near collapse of AIG; considerable exposure to natural and man-made catastrophe losses (in terms of policy limits and insureds); price softening in nearly all core business segments; the risk associated with rebranding initiatives; and the continued challenges of its association with AIG.
Best said the ratings of AIU Insurance Co. of New York recognize its supportive level of risk-adjusted capitalization, strong historic operating performance and termination of the quota share reinsurance agreement that generated below average results in 2008.
Offsetting these rating factors are variations in the company's surplus and business profile in recent years. As well as the potential for run-off of liabilities associated with the aforementioned reinsurance contract to vary from the company's other business.
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