AIG Asia Pacific Insurance Pte. Ltd. And Operating Subsidiaries

The 'A+' financial strength and issuer credit ratings on Singapore-based AIG Asia Pacific Insurance Pte. Ltd. (AIG API), AIG Insurance Hong Kong Ltd., and AIG Korea Inc. reflect our view that these companies will remain core operating subsidiaries of American International Group Inc. (AIG Group). They exhibit sound operating performance from solid market positions and are highly integrated with the group. The 'A' ratings on AIG Australia Ltd. and AIG Insurance Co. China Ltd. are one notch lower than the ratings on the core entities and reflect the companies' highly strategic group status. AIG Australia is differentiated by its weaker earnings contribution, and AIG China by its lesser degree of integration with the group. We consider the smaller AIG Insurance

...AIG's Asia-Pacific subsidiaries deliver key personal and commercial business lines to local and AIG's multinational accounts in the region. The region follows the group's strategic initiatives of improving underwriting quality and risk selection, managing expenses, and enhancing reinsurance protection to reduce earnings volatility. While underwriting standards and risk selection have improved, operating performance remains mixed in the region. We see AIG's Asia-Pacific operating performance varies by country, but generally below industry average, and further prone to COVID-19-related losses through 2020-2021. The region has experienced a degree of management turnover over the past two years, but we now expect greater stability and focus on implementing strategy. We expect AIG to continue to actively support operations in the Asia-Pacific region. The subsidiaries in the region are integrated with AIG group to varying degrees but share the group's underwriting expertise, infrastructure, and...

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