In July 2023, we affirmed the Baa2 senior unsecured debt rating of American International Group, Inc. (NYSE: AIG) and the A2 insurance financial strength (IFS) ratings of its property & casualty (P&C) subsidiaries in the US, UK and Europe. We changed the rating outlook for these entities to positive from stable based on steady improvement in the General Insurance underwriting results and progress toward divesting the Life and Retirement business.

Our credit view reflects the global market presence of AIG's General Insurance business, which offers commercial and personal P&C coverages to customers in some 70 countries and jurisdictions. The group has expertise in various product and industry specialties such as arranging large and complex coverages for multinational accounts, financial and professional lines, excess and surplus lines, and loss sensitive insurance. General Insurance has improved its underwriting results over the past five years through reduced policy limits, higher attachment points, cumulative rate increases, and more effective use of reinsurance.

Credit challenges for General Insurance include potential catastrophe losses in property lines, potential claims inflation and adverse reserve development in long-tail casualty lines, and the complexity of enterprise risk management across its varied business lines and regions. AIG also faces uncertainty around the timing and pricing of sales of its remaining stake in Corebridge Financial, Inc. (Corebridge, long-term issuer rating Baa2 stable, NYSE: CRBG), the holding company for its Life and Retirement business. In June 2023, AIG reduced its Corebridge stake to about 65% from about 78% through a secondary public offering followed by the sale of additional shares to Corebridge.