S&P downgrades ratings on AIG subsidiaries
Credit ratings agency Standard & Poor’s (S&P) has downgraded the ratings of a number of AIG property and casualty subsidiaries from “developing” to “negative”.
S&P says it does not expect New York-based AIG to sell core property and casualty operations under its restructuring plan, but has downgraded the entities based on increased pressure the company is likely to face in coming months.
AIG’s Australian assets are not mentioned in the list of subsidiaries being downgraded.
S&P claims AIG is particularly susceptible to broader market trends, given its “somewhat weakened position”.
Its decision comes as insurance markets prove slow to turn while competition remains intense.
“Although at this point we have not seen clear evidence of long-term damage to AIG’s franchise, there have been wide reports that competitors are actively pursuing AIG’s accounts and key underwriting personnel,” S&P said.
AIG Australia CEO Chris Townsend has stated previously the local insurer is in good financial health and has not faced predatory action from competitors.
S&P says it does not expect New York-based AIG to sell core property and casualty operations under its restructuring plan, but has downgraded the entities based on increased pressure the company is likely to face in coming months.
AIG’s Australian assets are not mentioned in the list of subsidiaries being downgraded.
S&P claims AIG is particularly susceptible to broader market trends, given its “somewhat weakened position”.
Its decision comes as insurance markets prove slow to turn while competition remains intense.
“Although at this point we have not seen clear evidence of long-term damage to AIG’s franchise, there have been wide reports that competitors are actively pursuing AIG’s accounts and key underwriting personnel,” S&P said.
AIG Australia CEO Chris Townsend has stated previously the local insurer is in good financial health and has not faced predatory action from competitors.