Standard & Poor’s (S&P) has revised its outlook for AIG from negative to stable, noting its fixed-charge coverage has improved on stronger operating earnings and lower interest expenses.

The agency has also affirmed its A- long-term counterparty credit rating on AIG.

“The ratings affirmation reflects the company’s very strong business risk profile and strong financial risk profile, built on its broad geographic footprint, diverse revenue source and extremely strong capital.”

AIG Australia retains its A rating and stable outlook.

S&P has raised its counterparty credit and financial strength ratings on AIG Korea from A to A+ due to its improved underwriting performance, which is now consistent with the overall group.

The agency expects AIG to report pre-tax operating income of about $US10 billion ($10.8 billion) annually from 2013 to 2015, compared with an average of $US5.5 billion ($5.9 billion) in the past three years.

It predicts the property and casualty combined operating ratio will be 100-102%.