This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A.M. Best Comments On Ratings Of American International Group, Inc.

A.M. Best Co. has commented that the issuer credit rating of “bbb” of American International Group, Inc. (AIG) [NYSE: AIG] is unchanged following the announcement of the U.S. Treasury’s plan to sell its remaining holdings of AIG’s common equity and AIG’s agreement with an investor group to sell up to a 90% stake in its International Lease Finance Corporation (ILFC) subsidiary. In addition, the financial strength ratings (FSRs) and the issuer credit ratings (ICRs) of AIG’s property/casualty subsidiaries also are unchanged by those announcements, as well as the release of the anticipated loss from Superstorm Sandy. The outlook for all ratings also remains unchanged.

The sale of the majority interest in ILFC and the UST’s decision to sell its remaining common interest in AIG mark the completion of AIG’s plan to remove itself from U.S. Government ownership and refocus its operations on its core insurance business. A.M. Best’s assessment of AIG’s financial position has, in recent years, considered the potential calls on the holding company related to the debt of ILFC. Although this debt was secured by physical assets owned by ILFC and was without recourse to AIG, the reputational risk to AIG should timely payments not be made on that debt was considerable. With the sale of a majority position in ILFC, A.M. Best’s future assessment of AIG will no longer include a stressed scenario under which AIG would make payments on the ILFC debt.

Since the announcement of AIG’s recapitalization plan in 2011, A.M. Best’s ratings of AIG have not considered any benefit related to U.S. Government financial assistance. The eventual sale of the UST’s common equity position in AIG was anticipated in A.M. Best’s ratings. At this time, A.M. Best’s ratings of AIG reflect the assessment of its operating insurance companies, with consideration of the potential calls on liquidity related to the Direct Investment Book (DIB). Consequently, the reduction of the UST’s ownership interest does not have an impact on A.M. Best’s ratings of AIG or any of its subsidiaries.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,786.37 -12.12 -0.07%
S&P 500 2,088.59 -1.52 -0.07%
NASDAQ 5,119.2540 -8.2710 -0.16%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs