Credit rating agency AM Best has revised the outlooks of American International Group, Inc.’s (AIG) property/casualty (P&C) insurance subsidiaries (AIG PC) to positive from stable, while affirming the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent).
According to AM Best, the revision of AIG PC reflects its “very strong” balance sheet strength, adequate operating performance, favourable business profile, and appropriate enterprise risk management.
The positive outlook reflects AIG PC’s improved underwriting and operating performance in recent years, as most performance metrics now align with higher-rated peers, which have shown consistency and sustainability in recent years.
As measured by Best’s Capital Adequacy Ratio (BCAR), AIG PC’s risk-adjusted capitalisation remains at the strongest level, supported by improving underwriting performance and targeted efforts to lower risk on the balance sheet, while also benefiting from strong reinsurance support from highly rated reinsurers.
AM Best notes that AIG has pivoted away from several lines of business to focus on underwriting profitability in selected specialty segments.
The credit rating agency said, “AIG PC’s operating performance has demonstrated steady and consistent improving trends in more recent years, attributable to numerous underwriting and risk management initiatives, as well as continuing positive pricing momentum in most key business lines.”
AIG PC’s favourable business profile considering its extensive market position in numerous commercial lines, and a wide geographic footprint in both domestic and global markets.
According to AM Best, AIG has exhibited deep expertise in its commercial lines writings and utilises many diverse distribution channels. This more focused business profile has helped to sustain improving underwriting profitability.
These changes come on the heels of the group’s strong third-quarter results, where its reported General Insurance (GI) underwriting income rose 81% year-over-year, reaching $793 million for the third quarter of 2025, compared to $437 million in the same period last year.
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