AM Best has affirmed AIG’s long-term issuer credit rating (ICR) at bbb and the ratings of its subsidiaries, and they are no longer under review with negative implications.

The ratings agency acted after analysing AIG’s most recent financial data and holding discussions with management about plans to re-energise the business.

The appointment of industry veteran and former employee Brian Duperreault as CEO is also a factor in AM Best’s decision.

“From this review, it has been possible to make a satisfactory assessment that AIG’s consolidated risk-adjusted capitalisation remains supportive of the ratings of AIG and its subsidiaries,” AM Best says.

“This lessens AM Best’s immediate concerns regarding the execution risk of successfully implementing the corrective actions taken to improve overall operating performance, and susceptibility to reduced credibility of its franchise value.

“AIG maintains adequate liquidity and financial flexibility, while its financial leverage and coverage ratios are within AM Best’s guidelines for its current rating.”

Mr Duperreault, who started in his new job this month, brings “significant operating experience as an industry leader”, AM Best says.

AIG subsidiaries’ long-term ICRs of “a” and financial strength ratings of A are affirmed and assigned stable outlooks.

The credit ratings were placed under review in January with negative implications after AIG announced it had again incurred material adverse reserve development related to its US property and casualty long-tail business.