Moody's withdraws some AIG life ratings
By National Underwriter
By Michael K. Stanley
Moody’s Investors Service has withdrawn the A2 long-term insurance financial strength ratings of a group of companies, all members of the American International Group Life & Retirement Group of life insurance companies, which is wholly-owned by American International Group.
The companies are: Western National Life Insurance Company; American General Life & Accident Insurance Company; American General Life Insurance Company of Delaware; SunAmerica Life Insurance Company (SunAmerica Life) and SunAmerica Annuity and Life Insurance Company (SAAL).
Moody’s noted that the Prime-1 short-term insurance financial strength of SunAmerica Life and SAAL were withdrawn as well.
The merger of the aforementioned companies into AIG was a calculated decision, one that was executed in order to streamline the life insurance group’s complex and disparate organization structure. Moody’s said the merging of the companies into AIG will not change the credit profile of AIG Life & Retirement group. The companies will be managed by AIG as an integrated group and Moody’s will analyze the subsidiaries as a single analytic unit.
An upgrade is possible under the following scenarios: there is sustainable improvement in profitability at AIG Life and Retirement group accompanied by lower statutory earnings volatility; and pre-tax asset losses in 2013 of no more than $400 million.
Moody’s noted that the insurance financial strength of other affiliates, Variable Annuity Life Insurance Company and The United States Life Insurance Company of the City of New York continue to be rated as A2 with a stable outlook.
Originally published on LifeHealthPro.com