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OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has revised the outlook to stable from negative and affirmed the issuer credit rating (ICR) of abbba of American International Group, Inc. (AIG) (NYSE: AIG). Concurrently, A.M. Best has revised the outlook to stable from negative and affirmed the financial strength ratings (FSR) of A (Excellent) and ICRs of aaa of Chartis US Insurance Group and its members as well as the Lexington Insurance Pool (headquartered in Boston, MA)and its members. (For further information on the Chartis US Insurance Group and the Lexington Insurance Pool, please refer to the press release dated January 27, 2012 titled, aA.M. Best Revises Outlook to Stable for Most American International Group, Inc. North American Property/Casualty Companies.a) All the above companies are headquartered in New York, NY, unless otherwise specified.

"A.M. Bestas Ratings & the Treatment of Debt"

A.M. Best also has revised the outlook to stable from negative and affirmed the FSR of A (Excellent) and ICRs of aaa of the domestic life/health subsidiaries of AIG, collectively referred to as SunAmerica Financial Group (SAFG) (headquartered in Houston, TX). (For further details on these rating actions, including factors that might cause upward or downward changes in these ratings, please refer to the press release dated January 27, 2012 titled, aA.M. Best Revises Outlook to Stable for Ratings of American International Group, Inc.as Domestic Life/Health Subsidiaries.a)

In addition, A.M. Best Europe a" Rating Services Limited has assigned a FSR of A (Excellent) and ICRs of aaa to Chartis Europe Limited (United Kingdom) and Chartis Europe S.A. (France). The outlook assigned to these ratings is stable. (Details on these rating assignments are provided in the press release dated January 27, 2012 titled, aA.M. Best Assigns Ratings to Chartis Europe Limited and Chartis Europe S.A.a issued by A.M. Best Europe a" Rating Services Limited.)

Additionally, A.M. Best has upgraded the FSR to A- (Excellent) from B++ (Good) and the ICR to aa-a from abbb+a for The Fuji Fire & Marine Insurance Company, Limited (Fuji) (Japan). These ratings have been removed from under review with positive implications and assigned a stable outlook. (Please refer to the press release dated January 27, 2012 titled, aA.M. Best Upgrades Ratings of The Fuji Fire & Marine Insurance Company, Limiteda for further details.)

The revised outlook for AIG reflects A.M. Bestas assessment that the potential for negative effects on the operating insurance companies due to issues at the holding company or in AIGas non-insurance operations has diminished. The successful recapitalization of AIG, its issuance of public debt and equity in 2010 and 2011, the execution of new credit facilities to provide back-up liquidity and the reduction of risk related to the non-insurance operations have contributed to this assessment. While A.M. Best acknowledges that AIGas income will continue to show variability from quarter to quarter, A.M. Best does not expect at this time that the variances will substantially impact the companyas capital position or the claims paying ability of its insurance subsidiaries.

A.M. Best does not expect positive movement on AIGas ratings in the near to mid term. Potential drivers that would downgrade the ratings of AIG and its insurance subsidiaries include a change in the ratings of a major AIG insurance subsidiary; a significant reduction or withdrawal of AIGas ability to access its lines of credit; recognition of a failure of management to disclose information that is relevant to the rating process; and deterioration in the financial position of AIG, whether driven by its insurance or non-insurance operations.

The principal methodology used in determining these ratings is [ Bestas Credit Rating Methodology -- Global Life and Non-Life Insurance Edition ], which provides a comprehensive explanation of A.M. Bestas rating process and highlights the different rating criteria employed. Additional key criteria utilized include: aA.M. Bestas Ratings & the Treatment of Debta; aAssessing Country Riska; Catastrophe Analysis in A.M. Best Ratingsa;aRating Members of Insurance Groupsa; aRating Natural Catastrophe Bondsa; aRisk Management and the Rating Process for Insurance Companiesa;aUnderstanding BCAR for Property/Casualty Insurersa; aUnderstanding BCAR for Life/Health Insurersa; aUnderstanding Universal BCARa; aEquity Credit for Hybrid Securitiesa; and aThe Treatment of Terrorism Risk in the Rating Evaluation.a Methodologies can be found at [ www.ambest.com/ratings/methodology ].

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit [ www.ambest.com ].

Copyright 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.