A.M. Best assigns negative outlook to AIG’s Canadian subsidiaries

A.M. Best has affirmed the financial strength ratings of ‘A’ for the Canadian property and casualty subsidiaries of American International Group, although the ratings have still been assigned a negative outlook.This concludes a review with negative implications. “A.M. Best’s removal of the ratings from under review reflects the protracted time frame necessary for an orderly sale of AIG’s assets, which exceeds the usual near term time frame incorporated in an under review status,” A.M. Best notes in a release. “Clearly, the issues affecting these ratings continue to be reviewed as they change or emerge, and the ratings could be downgraded at any time if events do not meet expectations.”Alternatively, the sale of a business to a higher rated organization could result in an upgrade to the business sold.”The rating affirmations are based on the intervention and provision of immense capital levels by the U.S. government, partially without recourse to AIG, A.M. Best notes. A.M. Best said future rating considerations would be based on continued U.S. government support, as long as support is required. “A.M. Best believes the sale of AIG’s businesses will be a lengthy and protracted process absent a near-term and significant turnaround of market conditions, which is not expected,” the company notes.