AM Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICRs) to “a+” (Excellent) from “a” Excellent) and affirmed the Financial Strength Rating (FSR) of A (Excellent) of American International Group, Inc.’s (AIG) property/casualty (P/C) insurance subsidiaries (collectively referred to as AIG PC). The outlook of the Long-Term ICRs has been revised to stable from positive, while the outlook of the FSR is stable. At the same time, AM Best has upgraded the Long-Term ICR to “bbb+” (Good) from “bbb” (Good) of AIG (headquartered in New York, NY) [NYSE: AIG]. The outlook of the Long-Term ICR has been revised to stable from positive. (Please see below for a detailed listing of the companies and ratings.)

The Credit Ratings (ratings) of AIG PC reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM). AIG PC’s risk-adjusted capital position remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), benefiting from improving underwriting performance, while also benefiting from strong reinsurance support from highly rated reinsurers.

AM Best assesses AIG PC’s operating performance as adequate. The group’s historical combined and operating ratios have lagged composite peers. However, the upgrading of the Long-Term ICR recognizes AIG PC’s operating performance, which has demonstrated a steady and consistent improving trend in recent years, attributable to numerous underwriting and risk management initiatives, as well as continuing positive pricing momentum in most key business lines. Operating performance metrics are now comparable to similarly rated peers. AIG PC’s business profile is assessed as favorable, considering its market position and presence in domestic and global markets. The group has deep expertise in its commercial lines and utilizes many diverse distribution channels.

The Long-Term ICRs have been upgraded to “a+” (Excellent) from “a” (Excellent) and the FSR of A (Excellent) has been affirmed, with the outlook for the Long-Term ICRs revised to stable from positive and the FSR outlook maintained at stable for the following P/C subsidiaries of AIG, which are collectively referred to as the AIG PC:

• National Union Fire Insurance Company of Pittsburgh, PA
• American Home Assurance Company
• Lexington Insurance Company
• Commerce and Industry Insurance Company
• AIG Property Casualty Company
• The Insurance Company of the State of Pennsylvania
• New Hampshire Insurance Company
• Illinois National Insurance Company
• AIG Specialty Insurance Company
• AIU Insurance Company
• AIG Assurance Company
• AIG Insurance Company – Puerto Rico
• AIG Insurance Company of Canada
• AIG Insurance Hong Kong Limited
• Granite State Insurance Company
• Tudor Insurance Company
• Stratford Insurance Company
• Western World Insurance Company
• Blackboard Specialty Insurance Company
• Blackboard Insurance Company
• American International Group UK Limited
• American International Reinsurance Company, Ltd.
• AIG Asia Pacific Insurance Pte. Ltd.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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