S&P Global Ratings assigned A+ insurer financial strength ratings to American International Group Inc.'s newly formed subsidiaries, Luxembourg-based AIG Europe SA and U.K.-based American International Group UK Ltd.
The agency said the ratings mirror AIG's "a+" group credit profile, expecting the subsidiaries to move in tandem with it.
The ratings action highlights the role the subsidiaries will play in ensuring AIG's ability to continue to service its policyholders across Europe after the U.K. leaves the European Union. Operationally, S&P said it views them as a subgroup of AIG due to their shared group resources, particularly in terms of risk and capital management, as well as core entities within AIG's operating companies.
The outlook on both subsidiaries is negative, which reflects that of AIG. S&P said that it will continue to move the ratings in tandem with AIG's group credit profile as long as it continues to view the two companies as core subsidiaries.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
