A.M. Best Assigns Ratings to American International Reinsurance Company, Ltd.

Fri Dec 21, 2012 1:53pm EST

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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 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.

A.M. Best Company, Inc.
Jennifer Marshall, 908-439-2200, ext. 5327
Managing Senior Financial Analyst
jennifer.marshall@ambest.com
or
Andrew F. Colannino, 908-439-2200, ext. 5706
Vice President
andrew.colannino@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com



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