Standard & Poor’s Ratings Services raised its financial strength ratings on GE Property & Casualty Insurance Co., GE Casualty Insurance Co., GE Auto & Home Assurance Co., and GE Indemnity Insurance Co. to “AAA” and removed the ratings from credit watch, where they were placed on June 26, 2003.
In addition, the counterparty credit ratings on these companies were withdrawn because the ratings are based on a guaranty of policyholder obligations. The outlook on the financial strength ratings is stable. The action was based on a guaranty from AIG-owned Lexington Insurance Co., S&P analyst Grace Osborne said.
The direct-marketing focus of the GE property/casualty personal lines is expected to fit smoothly into AIG’s personal lines operations, and duplicative costs will be eliminated in the short-term. The senior citizen segment, nurtured by a long-term association with Colonial Penn Life Insurance Co., is expected to add a profitable niche to AIG’s personal lines strategy. The funding for these acquisitions is internally sourced, resulting in no material increase in AIG’s financial leverage.
Topics Trends Property Casualty AIG
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