AIG Property Casualty Insurers' Financial Strength and Other Local Ratings
As of August 5, 2014
Insurer
AIG Assurance Company
US / Canada
Bermuda
Latin America ("LAC")
Europe
Middle East & Africa ("MEA")
Far East
Local Rating
A [1]
NA
[1]
[1]
[1]
NR
NA
A [1]
A+ [1]
A1 [1]
A [1]
NA
A
[1]
A+
[1]
A1
[1]
A
[1]
NA
A
[1]
A+
[1]
A1
[1]
A
[1]
NA
A
[1]
A+
[1]
A1
[1]
A
[1]
NA
Commerce and Industry Insurance Company
A
[1]
A+
[1]
A1
[1]
A
[1]
NA
Granite State Insurance Company
A [1]
A+ [1]
A1 [1]
A [1]
NA
[1]
[1]
[1]
[1]
NA
American Home Assurance Company
A+
A1
Illinois National Insurance Co.
A
Lexington Insurance Company
A [1]
A+ [1]
A1 [1]
A [1]
NA
A
[1]
A+
[1]
A1
[1]
A
[1]
NA
New Hampshire Insurance Company
A
[1]
A+
[1]
A1
[1]
A
[1]
NA
The Insurance Company of the State of Pennsylvania
A [1]
A [1]
NA
[1]
NA
A+
A1
A+ [1]
A
A1 [1]
American International Overseas Limited
NR
NR
NR
A
American International Reinsurance Company, Ltd.
A [1]
A+ [1]
NR
NR
NA
NR
NR
NR
NR
AA (ICR/DBRS) [1]
AA- (Feller) [4]
AIG Insurance Company - Puerto Rico
A
[1]
NR
NR
NR
NA
AIG Seguros Guatemala, S.A.
NR
NR
NR
NR
AA- (PCR) [1]
NR
NR
NA
NR
NR
A+ (Equilibrium) [1]
AIG Chile Compañia de Seguros Generales S.A.
Asia Pacific (excluding Far East) ("APAC")
Fitch
A1 [1]
A
National Union Fire Insurance Company of Pittsburgh, Pa.
Americas
Moody's
A+ [1]
AIG Property Casualty Company
AIU Insurance Company
Europe, Middle East & Africa ("EMEA")
S&P
A [1]
AIG Insurance Company of Canada
AIG Specialty Insurance Company
Asia Pacific
A.M. Best
AIG Seguros Mexico, S.A. de C.V.
NR
AIG Seguros, El Salvador, Sociedad Anonima
NR
A+
[1]
/ mxAAA
[1]
NR
AIG Vida, Sociedad Anonima, Seguros de Personas
NR
NR
NR
NR
AA- (Equilibrium) [1]
AA- (PCR) [1]
La Meridional Compañia Argentina de Seguros S.A.
NR
raAAA [3]
NR
NR
NA
[1]
NA
[1]
[1]
[1]
AIG Europe Limited
A
Chartis Excess Limited
A [1]
A+ [1]
NR
NR
NA
AIG Insurance Company, CJSC
NR
NR
NR
NR
A+ (Expert RA)
AIG Kenya Insurance Company Limited
NR
NR
NR
NR
AA- (GCR)
AIG Life South Africa Limited
NR
[1]
/ zaAA+
NR
NR *
NA
A
[1]
AIG MEA Limited
NR
AIG South Africa Limited
NR
A+
BBB+
A1
A
[1]
NR
A
BBB+ [1] / zaAA+
NR
NR *
NA
NA
Chartis Kazakhstan Insurance Company JSC
NR
NR
A1 (kz)
NR
NA
AIU Insurance Company, Ltd.
A [1]
A+ [1]
NR
NR
NA
American Home Assurance Co. Ltd.
NR
NR
NR
[1]
A
[1]
A
[2]
NA
[1]
Fuji Fire and Marine Insurance Co., Ltd.
A
NR
NR
A+
Fuji Life Insurance Company, Ltd.
NR
NR
NR
NR
A+ [1] (JCR)
AIG Asia Pacific Insurance Pte. Ltd.
A [1]
A+ [1]
A2 [1]
NR
NA
AIG Australia Limited
A [1]
A [1]
A2 [1]
NR
NA
[1]
NR
NA
A2 [1]
NR
NA
NR
NR
NA
[1]
NR
NA
A2 [1]
NR
NA
NR
NA
AIG Insurance Company China Ltd.
NR
NR
AIG Insurance Hong Kong Limited
A [1]
A+ [1]
AIG Insurance New Zealand Limited
NR
AIG Korea Inc.
NR
AIG Taiwan Insurance Co., Ltd.
NR
New Hampshire Insurance Company, Thailand Branch
Legend: [1] Stable Outlook [2] Positive Outlook [3] Negative Outlook [4] Developing NR - Not Rated
Local Ratings: chl - Chile mx - Mexico ra - Argentina slv - El Salvador zaf - South Africa
NR
NA - Not Applicable
* Rating withdrawn effective 03/28/2014 per the Company’s request. As part of its ordinary course withdrawal process, Fitch first reaffirmed the Company’s rating as “AAA(zaf)”
A
A+
[1]
[1]
A [1]
A+
[1]
A2
A2
NR
Local Rating Agencies: GCR - Global Credit Rating Co
(JCR)
JCR - Japan Credit Rating Agency Ltd
ICR - International Credit Ratings (part of DBRS) PCR - Pacific Credit Ratings
Equilibrium - Equilibrium Clasificadora de Riesgo
Feller - Feller Rate Clasificadora de Riesgo
ExpertRa - Expert Ra Rating Agency
Sources (and for updated financial strength ratings, visit): A.M. Best Company (www.ambest.com), Standard & Poor’s (www.standardandpoors.com), Moody’s (www.moodys.com), Fitch Ratings (www.fitchratings.com), Global Credit Rating (www.globalratings.net), Feller Rate Clasificadora de Riesgo (www.feller-rate.cl),
Equilibrium Clasificadora de Riesgo (www.equilibrium.com.sv), Japan Credit Rating Agency, Ltd. (www.jcr.co.jp), International Credit Ratings (www.icrchile.webmanager.cl), Pacific Credit Ratings (www.ratingspcr.com), and Expert RA Rating Agency (www.raexpert.com).
Copyright American International Group, Inc. All rights reserved.
Page 1 of 6
A Guide to Define Financial Strength and Other Local Ratings
Rating
Superior
A, A-
Excellent
B++, B+
Good
B, B-
Financial Strength Ratings
Descriptor
Opinion
Rating
AAA
Extremely Strong
AA
Very Strong
A
Strong
Fair
BBB
Good
C++, C+
Marginal
BB
Marginal
C, C-
Weak
B
Weak
D
Poor
CCC
Very Weak
E
Under Regulatory Supervision
CC
Extremely Weak
F
In Liquidation
R
Regulatory Action
S
Suspended
NR
Not Rated
Secure
A++, A+
Standard & Poor's
Financial Strength Ratings
Descriptor
Vulnerable
Vulnerable
Secure
Opinion
A.M. Best Company
AM Best Rating Outlooks & Modifiers
Standard & Poor's Rating Outlooks & Modifiers
Positive
Indicates a company's financial/market trends are favorable, relative to its current rating level and, if continued,
the company has a good possibility of having its rating upgraded.
Plus (+)
or
Minus (-)
Signs following ratings from 'AA' to 'CCC' show relative standing within the major rating categories.
Stable
Indicates a company is experiencing stable financial/market trends and there is a low likelihood that its rating will
change in the near term.
CreditWatch
CreditWatch highlights the potential direction of a rating, focusing on identifiable events and short-term trends
that cause ratings to be placed under special surveillance by Standard & Poor's.
Negative
Indicates a company is experiencing unfavorable financial/market trends, relative to its current rating level and,
if continued, the company has a good possibility of having its rating downgraded.
pi
Ratings based on an analysis of published financial information and additional information in the public domain.
They do not reflect in-depth meetings with an insurer's management nor do they incorporate material non-public
information, and are therefore based on less comprehensive information than ratings without a 'pi' subscript.
A modifier that generally is event-driven (positive, negative or developing) and is assigned to a company
whose Best's Rating opinion is under review and may be subject to change in the near-term, generally
defined as six months.
Ratings reflect qualitative and quantitative analyses using public data and information.
U
pd
Moody's
Rating
Fitch Ratings
Opinion
Financial Strength Ratings
Descriptor
Rating
Aaa
Exceptional
Aa
Excellent
A
Good
Baa
Adequate
BBB
Good
Ba
Questionable
BB
Moderately Weak
B
Poor
Caa
Very Poor
Ca
Extremely Poor
C
Lowest-rated Class
Secure
AAA
Vulnerable
Weak
Strong
Opinion
Financial Strength Ratings
Descriptor
Moody's Rating Modifiers
AA
Very Strong
A
B
CCC, CC, C
Very Weak
DDD, DD, D
Distressed
Fitch Rating Outlooks & Modifiers
Numeric modifier that indicates that the rating is in the mid-range of its generic rating category.
Plus (+)
or
Minus (-)
May be appended to a rating to denote relative status within major rating categories. Such suffixes are not
added to the 'AAA' category or to categories below 'CCC'.
Numeric modifier that indicates that the rating is in the lower end of its generic rating category.
NR
Indicates that Fitch Ratings does not publicly rate the issuer or issue in question.
Withdrawn
A rating is withdrawn when Fitch Ratings deems the amount of information available to be inadequate for rating
purposes, or when an obligation matures, is called, or refinanced.
1
Numeric modifier that indicates that the rating is in the higher end of its generic rating category.
2
3
Rating
Watch
Sources: A.M. Best Company (www.ambest.com), Standard & Poor’s (www.standardandpoors.com), Moody’s (www.moodys.com), and Fitch Ratings (www.fitchratings.com).
Outlook
Indicates a reasonable probability of a rating change and the likely direction of such change. These are
designated as "Positive", indicating a potential upgrade, "Negative", for a potential downgrade, or "Evolving",
if ratings may be raised, lowered or maintained. Rating Watch is typically resolved over a relatively short period.
Indicates the direction a rating is likely to move over a one to two-year period. Outlooks may be positive, stable,
or negative. A positive or negative Outlook does not imply a rating change is inevitable. Occasionally, Fitch may
be unable to identify the fundamental trend, and in these cases, the Rating Outlook may be described as "evolving".
Page 2 of 6
A Guide to Define Financial Strength and Other Local Ratings
Global Credit Ratings Co.
Financial Strength Ratings
Descriptor
Rating
Expert RA
Opinion
Reliability Ratings of Insurance Companies
Descriptor
Rating
AAA
Extremely strong financial security characteristics and is the highest FSR assigned by GCR.
Absolutely high
(the highest)
reliability
A++
In the short term, the company is extremely likely to ensure timely fulfillment of all of its financial obligations, both current and those arising in the course
of its operations. In the mid term, it is very likely that the obligations will be performed even in case of material adverse changes in macro-economic and
market parameters.
AA+, AA, AA-
Has very strong financial security characteristics, differing only slightly from those rated higher.
Very high
reliability
A+
In the short term, the company is very likely to ensure timely performance of all of its financial obligations, both current and those arising in the course of
its operations. In the mid term, it is very likely that the obligations will be fulfilled in case of stability of macro-economic and market parameters.
A+, A, A-
Has strong financial security characteristics, but is somewhat more likely to be affected by adverse business
conditions than assurers with higher ratings.
High reliability
A
In the short term, the company is very likely to ensure timely performance of all of its financial obligations, both current and those arising in the course of
its operations. In the mid term, the likelihood of performance of the obligations that require significant payments depends on stability of macro-economic
and market parameters.
BBB+, BBB, BBB-
Has good financial security characteristics, but is much more likely to be affected by adverse business
conditions than assurers with higher ratings.
Acceptable
reliability
B++
In the short term, the company is very likely to ensure timely performance of all of its current financial obligations, as well as new insignificant and
medium obligations arising in the course of its operations. Financial difficulties are slightly likely to occur, if the obligations that necessitate significant
payments arise. In the mid term, the likelihood of fulfillment of obligations depends on stability of macro-economic and market parameters.
BB+, BB, BB-
Has vulnerable financial security characteristics, which might outweigh its strengths. The ability of these
companies to discharge obligations is not well safeguarded in the future.
Sufficient
reliability
B+
In the short term, the company is very likely to ensure timely performance of all of its current financial obligations, as well as new insignificant and
medium obligations arising in the course of its operations. The likelihood of financial difficulties, if the obligations that necessitate significant payments
arise, is recognized as moderate. In the mid term, the likelihood of fulfillment of obligations largely depends on stability of macro-economic and market
parameters.
B+, B, B-
Possessing substantial risk that obligations will not be paid when due. Judged to be speculative to a high
degree.
Satisfactory
reliability
B
In the short term, the company is very likely to ensure timely performance of virtually all of its current financial obligations. The likelihood of the
company’s failure to perform financial obligations that arise in the course of its operations is high. In the mid term, the likelihood of fulfillment of
obligations largely depends on stability of macro-economic and market parameters.
CCC
Assurer has been, or is likely to be, placed under an order of the court.
Low reliability
C++
The company ensures timely performance of its current financial obligations; however, in the short term, the likelihood of the company’s default on
financial obligations that arise in the course of its operations is high, with the failure to the extent leading to revocation or suspension of the license.
Very low reliability C+
Unsatisfactory
reliability
Bankruptcy
License
revocation or
liquidation
The company ensures timely fulfillment of its current financial obligations; however, in the short term, the likelihood of the company’s default on financial
obligations that arise in the course of its operations is extremely high, with the failure to the extent leading to revocation or suspension of the license.
D
The company does not ensure timely fulfillment of a part of its current financial obligations to the extent leading to revocation or suspension of the
license.
The company undergoes bankruptcy.
E
The company is under liquidation or the company’s license is revoked.
C
Global Credit Ratings Co. Outlooks & Modifiers
Expert RA Outlooks & Modifiers
Positive
Rating symbol may be raised
Positive
Likelihood of mid term rating upgrade is high
Negative
Rating symbol may be lowered
Negative
Likelihood of mid term rating downgrade is high
Evolving
Rating symbol may be raised or lowered
Stable
Likelihood of mid term rating stability is high
Under
Review
Failure to carry out a full review of a rated entity within the designated timeframe, either through lack of information or delays in
finalization, may place the rating “Under Review". The rating status will typically extend for no longer than 1 month, until the
triggering event is resolved or the outcome is predictable with a high enough degree of certainty.
Developing
Two or more rating options (rating stability, upgrade or downgrade) are equally likely in the mid term
Rating
Watch
Rating is under review for possible change in the short-term
Sources: Global Credit Rating (www.globalratings.net) and Expert RA Rating Agency (www.raexpert.com).
Page 3 of 6
A Guide to Define Financial Strength and Other Local Ratings
Japan Credit Rating Agency, Ltd.
Feller Rate Clasificadora de Riesgo
Long-Term Rating
Descriptor
Rating
Rating
Descriptor
AAA
The highest level of capacity of the obligor to honor its financial commitment on the obligation.
AAA
The insurance obligations that present the highest capacity to meet the terms and conditions agreed upon, which would not be affected by possible
changes in the issuing company, in the industry, or the economy.
AA
A very high level of capacity of the obligor to honor its financial commitment on the obligation.
AA
The insurance obligations that have a high capacity to meet the terms and conditions agreed upon, which would not be significantly affected by possible
changes in the issuing company, in the industry to which it belongs or the economy.
A
A high level of capacity of the obligor to honor its financial commitment on the obligation.
A
The insurance obligations that have a good ability to meet the terms and conditions agreed upon, but this is likely to deteriorate slightly by possible
changes in the issuing company, in the industry to which it belongs or the economy.
BBB
An adequate level of capacity of the obligor to honor its financial commitment on the obligation. However, this
capacity is more likely to diminish in the future than in the cases of the higher rating categories.
BBB
The insurance obligations that have a sufficient capacity to meet the terms and conditions agreed upon, but this is likely to weaken by possible changes
in the issuing company, in the industry to which it belongs or the economy.
BB
Although the level of capacity to honor the financial commitment on the obligation is not considered prolematic
at present, this capacity may not perisist in the future.
BB
The insurance obligations have the capacity under the terms and conditions agreed upon, but this is susceptible to deteriorate by possible changes in the
issuing company, in the industry it belongs to, or the economy. The issuer may incur a delay meeting such obligations.
B
A low level of capacity to honor the financial commitment on the obligation, having cause for concern.
B
The insurance obligations that have a high capacity to meet the terms and conditions agreed upon, but this is variable and susceptible to damage by
possible changes in the issuing company, in the industry it belongs to, or the economy. The issuer may breach those obligations.
CCC
Thre are factors of uncertainty that the financial commitment on the obligation will be honored, and a possibility
of default.
C
The insurance obligations that do not have a sufficient capacity to meet the terms and conditions agreed upon. There is a high risk that the issuer fails to
comply with these obligations.
CC
A high default risk.
D
The insurance obligations that do not have capacity to meet the terms and conditions agreed upon, and fail to meet obligations.
C
A very high default risk.
E
The insurance obligations of issuers for which there is insufficient information.
D
In default.
Japan Credit Rating Agency, Ltd. Outlooks & Modifiers
Feller Rate Clasificadora de Riesgo Outlooks & Modifiers
Plus (+)
or
Minus (-)
Signs following ratings to indicate relative standing within each of the rating categories.
Positive
Potential to get a higher rating
'p' rating
Based on an analysis of information inculuding publicly available data and is given to entities that have not requested a rating,
but that have given the consent.
Negative
Potential to get a lower rating
Positive
Rating may be raised.
Stable
Classification is unlikely to change
Negative
Rating may be lowered.
Developing
Classification can improve, deteriorate, or remain the same
Stable
Rating is not likely to change.
Developing Rating may be raised or lowered, contingent upon an event.
Multiple
An issuer has multiple outlooks for its individual ratings, in which case JCR will describe any differences and provide the
rationale for these differences in its news release
Sources: Japan Credit Rating Agency, Ltd. (www.jcr.co.jp) and Feller Rate Clasificadora de Riesgo (www.feller-rate.cl).
Page 4 of 6
A Guide to Define Financial Strength and Other Local Ratings
Equilibrium Clasificadora de Riesgo
Rating
International Credit Ratings
Descriptor
Rating
Descriptor
Category A
The Bank/insurance Company has a strong financial and economic structure and has the greatest ability to pay
its obligations under the terms and conditions agreed upon, which would not be affected by possible changes in
the organization, in the industry it belongs, or the economy. Subcategories (A + or A-).
AAA
The insurance obligations that present the highest capacity to meet the terms and conditions agreed upon, which would not be affected by possible
changes in the issuing company, in the industry, or the economy.
Category B
The Bank/insurance Company has good financial and economic structure and has a good ability to pay its
obligations under the terms and conditions agreed upon, but this is likely to deteriorate slightly by possible
changes in the organization, in the industry it belongs to, or the economy. Subcategories (B + or B-).
AA
The insurance obligations that have a high capacity to meet the terms and conditions agreed upon, which would not be significantly affected by possible
changes in the issuing company, in the industry to which it belongs or the economy.
Category C
The Bank/insurance Company has a financial and economic structure with certain deficiencies and has a
moderate ability to pay its obligations under the terms and conditions agreed upon, but this is likely to weaken
by possible changes in the organization, in the industry it to belongs, or the economy. Subcategories (C + or C).
A
The insurance obligations that have a good ability to meet the terms and conditions agreed upon, but this is likely to deteriorate slightly by possible
changes in the issuing company, in the industry to which it belongs or the economy.
Category D
The Bank/insurance Company has a weak financial structure and shows a questionable ability to pay its
obligations under the terms and conditions agreed upon; there is a risk of default on their obligations.
BBB
The insurance obligations that have a sufficient capacity to meet the terms and conditions agreed upon, but this is likely to weaken by possible changes
in the issuing company, in the industry to which it belongs or the economy.
Category E
There is insufficient information to make an opinion on risk.
BB
Category E *
The Bank/insurance Company has not met its commitments under the terms in which they were agreed;
therefore unable to continue its operations.
B
The insurance obligations that have a minimum capacity to meet the terms and conditions agreed upon, but this is variable and susceptible to damage
by possible changes in the issuing company, in the industry it belongs to, or the economy. The issuer may breach those obligations.
C
The insurance obligations that do not have a sufficient capacity to meet the terms and conditions agreed upon. There is a high risk that the issuer fails to
comply with these obligations.
D
The insurance obligations that do not have capacity to meet the terms and conditions agreed upon, and fail to meet obligations.
E
The insurance obligations of issuers for which there is insufficient information.
The insurance obligations have the capacity under the terms and conditions agreed upon, but this is susceptible to deteriorate by possible changes in the
issuing company, in the industry it belongs to, or the economy. The issuer may incur a delay meeting such obligations.
Equilibrium Clasificadora de Riesgo Outlooks & Modifiers
International Credit Ratings Outlooks & Modifiers
Plus (+)
or
Minus (-)
Signs following ratings to indicate relative standing within each of the rating categories.
Positive
Less risky
Positive
Rating may be raised.
Negative
More risky
Negative
Rating may be lowered.
Stable
Classification is unlikely to change
Stable
Rating is not likely to change.
Obervation
Under observation
Sources: Equilibrium Clasificadora de Riesgo (www.equilibrium.com.sv) and International Credit Ratings (www.icrchile.webmanager.cl).
Page 5 of 6
A Guide to Define Financial Strength and Other Local Ratings
Pacific Credit Ratings
Rating
Descriptor
AAA
The insurance obligations that present the highest capacity to meet the terms and conditions agreed upon. Risk
factors are of minimal concern.
AA
The insurance obligations that have a very high capacity to meet the terms and conditions agreed upon. The risk
is moderate but may vary slightly due to economic conditions, the industry, or the Company.
A
The insurance obligations that have a high capacity to meet the terms and conditions agreed upon. There are
expectations of variable risk in the long term due to economic conditions, the industry, or the Company.
BBB
The insurance obligations that have a sufficient capacity to meet the terms and conditions agreed upon. There are
expectations of considerable risk in the long term due to economic conditions, the industry, or the Company.
BB
The insurance obligations that will possibly meet the terms and conditions agreed upon, but this is very
susceptible to deteriorate by possible changes in the issuing company, in the industry it belongs to, or the
economy. Not considered investment grade.
B
The insurance obligations that are risky (i.e. credit risk). There are expectations of high risk due to economic
conditions, the industry, or the Company.
CCC
The insurance obligations that present a substantial amount of credit risk.
DD
Insurance companies that are being liquidated or will be liquidated.
Pacific Credit Ratings Outlooks & Modifiers
Plus (+)
or
Minus (-)
Signs following ratings to indicate relative standing within each of the rating categories.
Positive
Potential to get a higher rating.
Negative
Potential to get a lower rating.
Stable
Rating is not likely to change.
Source: Pacific Credit Ratings (www.ratingspcr.com).
Page 6 of 6