Rating agency A.M. Best announced Thursday that it affirmed financial strength ratings for AIG’s U.S. property/casualty subsidiaries at “A,” noting that an estimated reserve deficiency has been reduced by strengthening actions in recent years.
Best said the risk-adjusted capital level supports the ratings for the U.S. P/C subsidiaries, adding solid operating earnings and AIG’s leadership position in the global commercial lines insurance market also underpin the ratings.
Offsetting the positives, Best noted that recent underwriting results remain well below the group’s historical levels, and that Best expects continued adverse development of prior years’ loss reserves.
“Loss reserve movements have been more modest in recent years, and the group has taken favorable action to further stabilize reserves,” the rating statement said. “A.M. Best’s estimated deficiency of the group’s reserves has declined as a result of these actions, but A.M. Best expects that reserves will continue to develop adversely over the near to midterm,’ the announcement continued.
In the same rating announcement, Best also affirmed the “A” rating of American International Reinsurance Company Ltd. (AIRCO), a Bermuda-domiciled reinsurer.
In separate announcements, the rating agency also affirmed “A” financial strength ratings for:
Source: A.M. Best