Fitch Affirms AIG Life South Africa & AIG South Africa at IFS 'AAA(zaf)'; Withdraw Ratings

Fri Mar 28, 2014 10:00am EDT

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(The following statement was released by the rating agency) LONDON, March 28 (Fitch) Fitch Ratings has affirmed AIG Life South Africa Limited's (AIG Life SA) and AIG South Africa Limited's (AIG SA) National Insurer Financial Strength (IFS) ratings at 'AAA(zaf)' with Stable Outlook. At the same time Fitch has withdrawn the ratings. KEY RATING DRIVERS The ratings are linked to their parent's, American International Overseas Limited (AI Overseas), international IFS rating of 'A'. AIG Life SA's and AIG SA's ratings reflect strong formal support agreements provided by AI Overseas, a wholly-owned subsidiary of American International Group, Inc. (Issuer Default Rating A-/Stable). From a standalone perspective, AIG Life SA's and AIG SA's ratings benefit from their strong capitalisation, well-established business positions in their chosen market segments and conservative investment portfolios with high levels of liquidity. AIG Life SA's statutory capital adequacy requirement (CAR) cover ratio was strong at end-2012: 7.6x (end-2011: 8.6x), well above the minimum regulatory requirement of 1x. AIG SA's solvency ratio also remained solid at 69% (end-2011: 62%). Fitch expects regulatory solvency to have remained strong in 2013 and to continue to compare favourably with their South African peers. Fitch has withdrawn the ratings as AIG Life SA and AIG SA have chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for AIG Life SA and AIG SA. Contact: Primary Analyst Anna Bender Associate Director +44 20 3530 1671 Fitch Ratings Limited 30 North Colonnade London E14 5GN Secondary Analyst Harish Gohil Managing Director +44 20 3530 1257 Committee Chairperson Clara Hughes Senior Director +44 20 3530 1249 Media Relations: Hannah Huntly, London, Tel: +44 20 3530 1153, Email: hannah.huntly@fitchratings.com. Additional information is available at www.fitchratings.com. Applicable criteria, 'Insurance Rating Methodology' dated 13 November 2013 are available at www.fitchratings.com. Applicable Criteria and Related Research: Insurance Rating Methodology here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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