|[December 21, 2012]
A.M. Best Assigns Ratings to American International Reinsurance Company, Ltd.
OLDWICK, N.J. --(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 raings 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
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
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