A.M. Best Assigns Ratings to American International Reinsurance Company, Ltd.
December 21 2012 - 1:53PM
Business Wire
A.M. Best Co. has assigned a financial strength rating of
A (Excellent) and issuer credit rating of “a” to American
International Reinsurance Company, Ltd. (AIRCO) (Bermuda). The
assigned outlook for all ratings is stable. AIRCO is an indirect
subsidiary of American International Group, Inc. [NYSE:
AIG].
The ratings reflect AIRCO’s supportive level of risk-adjusted
capitalization, the historical profitability of the business it
will continue to assume from its affiliates within AIG and its role
as the primary Bermuda presence of AIG. Offsetting factors to the
rating include AIRCO’s historically limited direct business profile
and past variability in loss reserves for certain assumed business.
The outlook is based on the expectation of continued favorable
operating results that will enhance AIRCO’s risk-adjusted capital
position.
A.M. Best does not anticipate upward movement in the ratings in
the near term. Factors that may drive downward movement in the
ratings or outlook include deterioration in risk-adjusted
capitalization below the level required to support the ratings;
underwriting or operating performance that is not in line with A.M.
Best's expectations; recognition of adverse development of loss
reserves in excess of the deficiency assumed by A.M. Best;
recognition of a failure of management to disclose information that
is relevant to the rating process; withdrawal of lines of credit
available to AIG or Chartis, Inc.; or deterioration in the
financial condition of AIG, whether driven by insurance or
noninsurance operations.
The methodology used in determining these ratings is Best’s
Credit Rating Methodology, which provides a comprehensive
explanation of A.M. Best’s rating process and contains the
different rating criteria employed in the rating process. Other
methodologies used include ”Catastrophe Analysis in A.M. Best
Ratings”; “Understanding Universal BCAR for A.M. Best’s Capital
Adequacy Ratio for Insurers”; “Rating Members of Insurance Groups”;
and “Risk Management and the Rating Process for Insurance
Companies.” Best’s Credit Rating Methodology can be found at
www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and
most authoritative insurance rating and information source. For
more information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
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