Fitch Publishes Updated Credit Analysis on AIG
CHICAGO -- April 8, 2013
Fitch Ratings today published an updated credit analysis on American
International Group (AIG). The report provides a comprehensive analysis of
AIG's credit, operating and financial profile.
Fitch has an Issuer Default Rating of 'BBB+' on AIG with a Stable Rating
AIG's net profits over the last four years were materially affected by noncore
operations' results and restructuring activity. With the divestiture or runoff
of many non-core operations and the December 2012 sale of the remaining U.S.
government common stock ownership in AIG, the company is now an independent,
publicly owned company with operational focus on global property casualty
insurance and domestic life and retirement services.
The company has substantially reduced financial leverage since 2009. The
pending sale of a large majority stake in aircraft lessor International Lease
Finance Corporation (ILFC) will further reduce consolidated leverage and
promote the operational focus on insurance operations.
Fitch believes that AIG's future earnings and interest coverage improvement
will hinge on the performance of the company's core insurance segments,
particularly in property casualty operations. Fitch's recent upgrade of the
life insurance subsidiaries was largely driven by a return to stronger
operating profits and earnings stability. Core U.S. property casualty results
in 2012 were negatively affected by Hurricane Sandy losses, which were
outsized relative to peers.
AIG has approximately $5.9 billion of debt maturing in 2013 and in 2014.
Almost two-thirds of this is related to operating debt where the company has
assets maturing to fund the repayment. Fitch believes that AIG's holding
company resources are adequate to fund near-term debt maturities.
The full report 'American International Group' is available at
Additional information is available at www.fitchratings.com.
Applicable Criteria and Related Research American International Group, Inc.
(And Insurance Company Subsidiaries)
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James B. Auden, CFA, +1-312-368-3146
Fitch Ratings, Inc.
70 W. Madison Street
Chicago IL 60602
Tana M. Higman, +1-312-368-3122
Brian Bertsch, +1-212-908-0549
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