AIG suffers ratings hit
US ratings agency AM Best has downgraded ratings on two AIG subsidiaries in another setback for the beleaguered American insurer.
AM Best has cut financial strength ratings on both the domestic life and retirement services subsidiaries to “A+” from “A++”.
Issuer credit ratings on both businesses were also revised to “AA” from “AA+”.
The downgrades follow the appointment on June 8 of former Chairman Robert Willumstad to replace Martin Sullivan as CEO.
In a statement, AM Best said the change in management combined with the need for an upcoming company review to highlight “systemic challenges” facing the insurer.
Mr Willumstad has promised a “bottom-up” review of the company and has already met former AIG CEO Maurice Greenberg to discuss the company’s future.
Mr Greenberg now runs a company which is AIG’s largest shareholder and has been an outspoken critic of company management over recent weeks.
AM Best has cut financial strength ratings on both the domestic life and retirement services subsidiaries to “A+” from “A++”.
Issuer credit ratings on both businesses were also revised to “AA” from “AA+”.
The downgrades follow the appointment on June 8 of former Chairman Robert Willumstad to replace Martin Sullivan as CEO.
In a statement, AM Best said the change in management combined with the need for an upcoming company review to highlight “systemic challenges” facing the insurer.
Mr Willumstad has promised a “bottom-up” review of the company and has already met former AIG CEO Maurice Greenberg to discuss the company’s future.
Mr Greenberg now runs a company which is AIG’s largest shareholder and has been an outspoken critic of company management over recent weeks.